Making gains today. History,linton making the first woman nominated as a major Party President ial candidate. We have live updates from philadelphia. Do let us know what you think. Follow me on twitter at rishaadtv, use that allimportant trendingbusiness. There is nervousness. Federal reserve, boj, both holding meetings. Here is a look at the action so far. It is pretty good for a wednesday. A big arise from japanese equities, snapping that three up 1. 2 asthe nikkei the yen retreats. Singapore coming online, flat. Malaysia also flat. Taiwan getting a pop as apple suppliers rally as apples beat the street. Ospi thekosp the kospi flat as well. Attrian Second Quarter cpi the bottom of the hour, likely to be the weakest reading since 1999 and could pave the way for a cut. , butealand pretty flat Still Holding at record highs. Suppliersook at apple in the region. Most tracking higher on the back of apples numbers. Of the iphone, ipod , and assessors looking good. Down. 5 , samsung well. Display doing having a look at tokyo, unchanged from sharp. Tdk up by 2. 5 , a common theme we are seeing, support from apple suppliers in our region. Rishaad looking at the worlds most viable company, releasing earnings after the market close. Postrelease and postmarket as well. There are so many angles to this story. There are so Many Companies and the asiapacific that rely on apple for their fortunes. , projectedave fallen to fall, but still monster numbers. When you look at the actual numbers and projections, still expected to come in above what the street expects. There is the drop, operating profit as well. Billion, a 38 billion drop. They iphone still be most important product for apple. Revenue two thirds of from the iphone. That being said, 40 million iphones were sold. Quarter 1, 2015, 74 million. That is a peak. Quarter, it sees sales at the top end of forecasts, at least 45. 5 billion. This is what stands out to me, the gross margin. A lot of this is cost of goods sold. You take this out, you are still left with a hefty margin. This used to be 40 . Watch this close and how it relates to Pricing Power and suppliers. To summarize, expected to fall, but still above estimates. Rishaad we were doing this story yesterday about competitors apple has in china. Biting apples ankles. Is the outlook and what they are saying about how china is for the company . Competition and macro problems. When you talk about a piece of the pie, it is the thirdlargest market. Have a look at the breakdown. This is Third Quarter breakdown. U. S. , 42. 5 , the largest market for apple. Fell 4 billion in the Greater China area, including hong kong. The challenge is not just competition. Have a look at what the cfo said. Macro conditions that exist in the country both in the mainland and china. And aonomy has slowed Foreign Exchange rate that has weekend. Back revenueng from china, it dilutes due to a week renminbi. Rishaad what is the verdict by analysts . Buy. most are saying shares in fort eskew metals up, solid production numbers. Paul allen is there. Getting costs under control, the underlying factor here. Absolutely. It is a big story. 14 30 one cents, better than analysts expected. Next year, better still. They are thinking they can get groundon ore out of the between 12 and 13 a ton. Share price up 5. 5 . It is the best performer on the a sx this morning. 43. 4 million tons for the quarter, an improvement on the prior quarter. The coming year expected to be between 165 million tons and 175 million duns. Net debt down at 5. 2 billion. The main event will be Consumer Prices. They are out in 23 minutes. We have been waiting for this data since the First QuarterConsumer Prices in may. That was the first deflationary print in seven years, the federal bank of australia prompted to cut. It is likely the reserve bank would cut again next tuesday, so we will keep an eye on the aussie dollar. Thank you for that. Lets take a look at some other stories we are watching today. History is being made in pennsylvania. Hasi Hillary Clinton become the first woman nominated for u. S. President by a major party. Clinton won the democratic nomination at the National Convention in philadelphia after each estate and announced its vote from the primaries and caucuses. She was pushed over the threshold as south dakota casts its balance. Bernie sanders made a motion to suspend the rules and the Clare Clinton the nominee, while also recording the vote of his supporters. Clinton is expected to be formally accepting the nomination on the final night of the convention on thursday. Former president bill clinton is todays headline speaker. We will be watching chinas oil and gas when trading gets underway this hour. This is after China National petroleum posted an 11 jump in net income. Profit over 4. 1 billion. Revenue did take a hit from falling oil. While the company is doing pretty well to do what it can to cut costs, the low Oil Prices Continue to set the floor when it comes to profit. Brent crude averaged 41 above the firstarrel in half. Company willnet for 2 billion as it continues its u. S. Extension. The billionaire chairman and founder is positioning the company as the netflix, apple, and tesla of china with online video, smartphone, the are, and electric vehicle divisions. The deal is the latest expansion, which this year has doubled its north american headquarters. Right, coming up, tracking the slowed down, examining ubss second half outlook. Too close to call, the boj in mind. Rishaad two big centralbank decisions this week, fed expected to hold, but many see a fresh round of stimulus from the boj. Great to see you. It is about the boj for this part of the world, and globally speaking as well. Leakinga lot of reports train yen or ¥30 trillion of extra stimulus, but it looks like we could disappoint to the downside. Thats right. In terms of the fiscal stimulus package from the government, the finance minister said they are still undecided on the size. I think that has tempered expectations that we will see a huge stimulus package. Numberless, not having a does not mean they want, not with something substantial. Theill have to see what Prime Minister would do in seeking approval from the on the size of the stimulus package. Is not about the bank of japan necessarily. There has to be fiscal action as well. People are questioning the efficacy of going with Monetary Policy alone. Exactly. At the start of the year, investors, the markets, questioning what we have seen so far from the major Central Banks of the world, whether policy has been effective in terms of stimulating growth and demand. Less,e scenes them you monetary stimulus, is working, but might not be as effective as we have seen. There are calls for the government to come up with more spending, even if they are heading towards a Fiscal Consolidation pathway. To spend somehave to complement the loose Monetary Policy we are seeing now. Rishaad thats just the thing as well. To be sending out a message also than about structural reform, which has been lacking. On top of that, surely we have a situation, well, do it Interest Rates work here . What about helicopter money . You mentioned that in your research and say they cannot do it for a while. Why . Money,erms of helicopter the japanese constitution prevents the central bank from directly bankrolling government spending, so to that extent, their hands are tied unless the constitution is changed to allow them to put money directly into the hands of the consumer. Ecb,tually saw in the has gone omt program through the legal hurdles, even though it has been three years since they approved the program. Japan decides to go to helicopter money, to use that, they will probably take a couple of years for them, for the parliament to approve the use of it by the boj. Rishaad absolutely, lets move to the federal reserve. Were not expecting any move this month. According to a lot of people i have been talking to, the language could get a bit hawkish. Feduggest that perhaps the has let the markets become too dovish. What is your view . I think the language at the meeting this week could be on the dovish side. I think they will try to balance having an optimistic outlook for the u. S. Economy against trying to tamp down expectations that we will see a rate hike in september. They will probably want to keep the option open of having the data dependent in terms of policy adjustments, so i think we will see some dovishness from them rather than hawkishness despite the fact that data has improved. We have seen a rebound in jobs gained in june to negate the effects of the may print, so i think we will see a dovish slant to the statement. Rishaad absolutely. At what is going on market wise, how much event risks do these two meetings pose right now . Are they the big show in town . Or is it Lower Oil Prices in play right now playing out . Risk,terms of event everybody thinks they will maintain policy at least at this meeting. The surprise will come in terms of their statement if, like you mentioned, some think it will be hawkish. I think it will be dovish. A divisive few from the financial markets, so that could potentially move the markets. Boj, same thing. I think they are to some extent more easing from the boj this friday. It probably depends on what form they will take, whether increasing the quantitative etfng program or step up purchases. This will also move the market. Oil,il market itself, for there are some pullback from the highs in june, and this is mainly due to the transitory effect that has driven oil prices receipts and lay rices recently. After brexit, we saw the markets went down so much and a lot of people piled in there. Im talking equities here. Maybe the move up is over shop and thats why we have the s p at records. Is this really looking a bit frothy to you . Think it is surprising. People were expecting the brexit vote to trigger wide spread risk aversion, but we have seen equities coming back even higher than before the brexit vote, so in terms of that, it is not driven by fundamentals. They are relieved that the brexit vote did not trigger as much risk aversion as we thought. Weve also seen the fixed income market not showing much of a return because of the negative Interest Rate environment. For fund managers, they probably do not have a lot of investments equities are one of the areas they are looking at and investing in. Rishaad good to see you. Joining us from singapore and the state of play with these two big centralbank meetings taking place. A quick check on our business flash headlines. The head of one of ands biggest conglomerate says commonwealth countries will have an edge in striking trade deals with the u. K. After it leaves the european union. The chairman telling bloomberg that india in particular is in a position to benefit because of its historic ties with britain. The u. K. Has the best relation with the commonwealth countries, 53 countries, so i am sure that they will negotiate and try to work more on the commonwealth countries, where they have an edge on the ,uropean union as well as india where they have long historical and great relations. It chryslerd will report vehicle sales as is it is investigated. The carmaker will no longer recruit include a reserve figure. Japans biggest brewer saying profit probably beat its own forecasts i44 percent. Strong sales of nonalcoholic beverage in the home market and a better than expected performance over seas. Bill , it sealed a deal to buy other brands. Sab miller bid raised. It plays sab miller at 104 billion. Up and have also bumped offer. Another as cindy Miller Sab Miller shareholder said that it still undervalues the company. Right, still ahead, twitters revival is lagging as video ads take longer than expected. We are assessing the outlook, that is next. This is bloomberg. Rishaad twitter shares plunging after disappointing earnings. We have these details from new york. Twitter reported secondquarter earnings, and these share price plunged more than 11 in afterhours trading. Beat estimates, but revenue for the Second Quarter and guidance for the Third Quarter missed estimates. Secondquarter adjusted eps at . 13 versus nine cents, but that is where the good news ended. Second quarter avenue missed million versus02 607 million. Twitters thirdquarter forecasts also miss, coming in between 590 million to 610 million. It is a difference of 70 million. The allimportant user numbers, beatly active users ,stimates by one million users 313 million versus 312 million. Jack had this to say after the earnings release. Growth notableur is we can see the link between the product changes and our growth. We are making the right decisions and it gives us a foundation for future growth. Thats streaming more at live events and sporting events. For example, twitter announced deals with mlb and the National Hockey league. Earlier this yeal, twitter paid to stream nfl games. Is it paying off . Take a look at the bloomberg. Total monthlyour active users and the blue bars are total mobile users, and they have been hardly growing quarter on quarter. Is stagnating and plateauing out, and that is a chronic concern for investors as well as the blue bird. Up next, the austrian dollar getting a boost on bets that inflation data will signal a recovery. We will have those numbers as they cross the terminal, next. [hip hop beat] olympics 2016, let me get you on my level. So you never miss a moment, miss a minute, miss a medal. Why settle when you can have it all . Soccer to wrestling. Track and field to basketball. Fencing to cycling. Diving to balance beam. All you have to sa is, show me, and boom its on the screen from the bottom of the mat, to the couch where you at . Show me the latest medal count xfinitys where its at. Welcome to it all. Comcast nbcuniversal is proud to bring you coverage of the rio olympic games. Rishaad a look at our top stories, asian equities on the up. The topix rebounding. Gold pullback. Investors wondering whether boj will add stimulus measures. Stocks helping to drive the gains. Apples asian suppliers getting a bump. The companys revenue fell less than anticipated. A slump in iphone sales easing in the Third Quarter. Afterr went the other way revenue forecast fell shy of estimates, suggesting it is struggling to win advertising dollars. Shares in fortescue up after the minor announced solid numbers. It has been slashing operating expenses. This is the worlds fourth a guest iron ore exporters. It is hoping to announce a tie vale by yearsls in. Cpi numbers crossing the terminal, over to sydney. Coming in as expected,. 4 deflationary prevent print of. 2 in may. On year, the figure slightly worse than expected, 1 inflation on year, 1. 1 had been the consensus. Stripping out the volatile items ,. 5 gain, where a. 4 had been expected. Take a look at the aussie dollar. It began gaining sharply a few seconds before the data dropped, which is interesting. It is gaining nonetheless. Now 75. 6. Among highus frequency trading algorithms is the reserve bank of australia may resist the cut when it meets on tuesday. Inflation is still very weak. That is despite these better than expected figures,. 4 gain for the Second Quarter, trimmed mean,. 5 increase. Thank you very much indeed, breaking news out of china. 5. 1 showing there is more stability in the chinese economy as an improvement from the main number when we saw 3. 7 . Profits in china on the way up, 5. 1 . We have reaction to that cpi print out of australia. Yes, absolutely. We saw that big spike in the aussie dollar. Juliette have a look at that big jump. Data,o react to the china and we did see it go back a little bit windows industrial profit numbers came through, up by 4 10 of 1 . Hadcan see that big jump it coming through. As paul mentioned, as traders start of that perhaps we will not see an Interest Rate cut next week from the rba. All of that will be revealed next week, but certainly a big jump in the aussie and most equity markets tracking higher, comeugh shanghai has online flat. There is news the beijing Housing Commission could raise the down payment for second home buyers, so we will be watching property and develop and stocks in china and hong kong today. Hang saying up 4 10 of 1 on the open. Still seeing good moves from the south of china, up 2 . Petro china coming back as we see an uptick coming through in the crude price. Japan is the front runner at 1. 4 . We are seeing the weaker yen play into sentiment there. Japan actually snapping that threeday losing streak. Some very solid buying in that equity market. Australia had been awaiting the cpi numbers. It has pulled back, but we have seen that huge jump from fortescue metals and other minors. Have a look at other apple suppliers in the region, rattling on the back of apples betterthanexpected numbers after the bell on wall street. Sharp also looking good, and lg display up by 7 10 of 1 . This is how fortescue is looking after strongerthanexpected fourthquarter production numbers. Php getting a boost, and watch out for nintendo reporting earnings after the bell. It is down today after it had that big boost after the effects of pokemon go. Rishaad that game taking the world by storm. Chinas Economic Stabilization remains intact, thats according to some early private indicators. Our china correspondent is gracing us with his presence here in hong kong. Who are we talking about and what is the data telling us . Tom the forwardlooking indicators for july looks like improved sentiment amongst small and Mediumsized Enterprises after two months of declines in ,he sentiment for those smes so that is a positive as well. The larger companies, state owned companies, they are still feeling positive. In the mooda pickup amongst Sales Managers inside and outside of china. This deal and a streak improved sentiment as well, an industry that has taken a lot of heat over dumping and questions of subsidies. Pointd how does the five 1 industrial profit number play into this . The 5. 1 industrial profit number play into this . We have caveats and all this data, havent we . Tom we do. That Industrial Production figure comes on the back of the credit surge in january. Rishaad and also comparables as well . absolutely, and climbing coming from a low base. That is an improvement, but how sustainable it is, bloomberg and sergeants intelligence points to an lshaped recovery. We now have fewer indexes to look at. Those have been scrapped or suspended, and the suspension suspicion is the Central Government is trying to maintain control over this information we are getting on the economy, but that has not been confirmed. Economics and inflation index has been scrapped. Their search using engine to get a gauge as well, and they put a pause button on it. These are all on the back of each other, which feeds into the suspension that the authorities are putting pressure. Rishaad what do we have in terms of official data . Can we expect more transparency from that . Tom there have been questions over the official data. Pmi data on monday, so straddling that line between contraction and expansion. We got those secondquarter gdp numbers, 6. 7 . Bloomberg intelligence tracks the monthly gdp for china, and they put that at 7. 13 for june. Rishaad thank you very much indeed. Right, checking other stories with u. S. Chipmakers joining forces in the hopes of that greater scale will help them compete in an industry with record consolidation. Analog devices to buy linear for 14. 8 billion. To along devices is looking close the gap with texas instruments. Global Bank Regulators resisting an american back push for stiffer capital rules. Europe, japan, and india say being forced to increase reserves by 70 . They disagree over how much banks should be allowed to borrow against assets. The committee on banking supervision is due to wrap up deliberations by the end of the year. Goldman sachs being sued for a conflict of interest after allegedly telling a client to curry favor with the malaysian Prime Minister. They are accused of betraying their fiduciary duties. A major shareholder says goldman use confidential information to buy on the cheap. Up, the outlook on chinese markets. Why they have set lower year in targets. That is next. Check of theick latest business flash headlines. Shareholdersses investors owning 60 of shares backing the deal. The deal needs approval from the European Commission as well as individual national regulators. The initial goahead to volkswagens plans to get 500,000 cars off the road, and will cause the company 15 billion if given full approval. The biggestar obstacle to volkswagens recovery from that scandal. Sticking to his goal of producing 500,000 cars by 2018 despite missing production targets this year. Elon musk said he was confident the first tesla model threes will roll off the production line next summer. Right, where watching the outcome of the u. S. Election closely as are others. Research indicating that the Asian Pacific has the most to lose if donald trump wins the presidency. Our chief asia economics correspondent is with me for a look at the impact that would have. Worst talking about the region affected after mexico. They went out and spoke to investors and came back with a laundry list of worries. When it comes to asia, it comes down to trade. There is fear that a Trump Presidency would put up trade barriers. In effect, it could also trigger currency wars. He would declare china a currency manipulator, and that would trigger a response from china. Growth,xports, slower imbalances, so a net negative. Rishaad it is bit of an academic point, isnt it . They have to go to the parliament, the house of representatives and the senate, to change that. They are not perhaps ready to cooperate with him at that level. So how do the people think they are vulnerable . You are right. There are checks and balances. , tpp. Is one case he would not necessarily pursue that. If you drill into the region, he could resend trade agreements with south degree in south korea. He has already talked about charging south korea for security there. A lot of migrants from the philippines travel to the u. S. That would hurt remittances back to the philippines. Jobs back toring america, philippines is a base. There are areas where he could take steps that would hurt the asian economy. It is protectionism, isolationism, this is the concern, isnt it . Absolutely. And particular is china. China is the worlds biggest trading partner with the u. S. We just had a g20 where the chinese currency was not remotely concerned that donald trump would call china a currency manipulator. What would china do in response . That is a big question. That could spark trade wars and have a Ripple Effect around the rest of the world, not just asia. Rishaad thank you very much indeed. Lets have a look at equities. We have seen a bit of a climb this week. Our next guest says that he is lowering his year and target due to slow reform and less than anticipated monetary easing. Of china strategy for ubs securities. You are very concerned here. You are saying the structural reform process is moving at the speed of tech tonic draft. Not to say nothing has happened. We have heard a lot of talk from Different Levels of government. We are also seeing ambitious plans from local governments in reformf supplyside and the merger of state owned enterprises. Meaningful progress, as far as im concerned, introducing incentives and producing efficiencies, in this area i have not seen a lot of progress. , thisd the thing here has been slow anyway, so it is basically drifting along. How much do these fundamentals really matter when it comes to individual investors there in china . They tend to invest as a herd. Is, coming into this year, we expect Earnings Growth to be very slow. In fact, we are expecting zero growth, so relieved there is not much of a boost from nearterm so reforms matter a lot in terms of issues like debt and so on. Cases ofok at recent defaults, we have not seen any clear concrete examples they government has a clean dealing with the debt restructuring, and that is troubling. Rishaad ok, with all that in industrialst had profit numbers out showing a 5. 1 increase in june, better than may. Is chinas slowly coming out of the woods when it comes to the economy and Economic Growth . Verythink currently it is fairly steady. That is why we have low volatility these days. Macro numbers are mixed, but steady. We dont see of policy movements , so people are looking for two earnings. It looks like earnings will be ok. We do have week numbers for financials, but that was mostly expected. The nonfinancial side, q1 numbers are suggesting that things are doing ok. With the monthly numbers you referred to, industrial profits, plus some of the preannouncements, i think q2 and First Half Results for overall nonfinancials will be ok, probably high single digits. Going forward, i think people will look forward to some positive surprises in august. Are looking you at these numbers, stripping out financials, what if you strip out state owned enterprises . Do they paint a better picture of what is going on on the ground in china . , if you take out state owned enterprises, the numbers will be much better in terms of profit growth. I dont have the exact math, but if you look at some indications. For example, announcements for companies, by not as so hes, and Growth Numbers are much stronger. Said, one concerned over nonstate owned enterprises, new economy areas, so vibrations are fairly rich. , weaad tell me something are halfway through the year. Riskse had so much event in the first half, it has felt like two years. What about the second half of the year, what will chinese investors be concerned over . Now, all eyes are on earnings coming out in august. In my view, we are going to have growth slowdown further, a very gradual manner. We see moreq4 potential risks. Our macro guys are calling for a more visible slow down in q4 driven by the property market. The other thing that troubles investors a little bit in the first half of this year was bond defaults. We do have a peek of maturing bonds from those overcapacity andstries in october november, so likely we will get something there, an increase in defaults. Plus, as i said, a slowing economy. The combination will be a potential risk for the second half. Rishaad ok, thats what we have. The thing is here that with china, how much is china at the moment and with what is happening at with the global economy, how much of the as it triesying out to turn itself into a servicebased economy . I think we still have big global economy, global demand, exports still account for a big number of gdp, but the issue people are talking about these days is really brexit and how that impacts china. From that angle, the impact will be fairly small. Just look at the adjustments we have for the u. K. Economy. Is ashr thing to note are market has low correlation with Global Equity markets. , something brexit like that, wont have a big impact on china. Years, it the last few think it is a combination of global volatility plus some domestic weakness. That will generate a greater impact. Said, a slowdown in q4, bond defaults. Plus, if theres Something Else happening outside of china yeah . Rishaad thats all we have time for. Thank you for joining us. Ating up, history being made the dnc convention. We are heading to philadelphia next. This is bloomberg. Rishaad you are back with trending business. Democrats officially nominating their first female candidate for the u. S. Presidency. Hillary clinton receiving the approval after state delegates read their votes to the convention. We are in philadelphia. Are allthe delegates the delegates right behind hillary . That is the message that the Democratic Party would like everyone to believe. There was a remarkable moment hours ago when Bernie Sanders actually released all of his delegates from his state to Hillary Clinton. And just under an hour, behind me on the stage, we will hear from former president ill clinton. He is expected to give and deliver a largely policy driven speech again trying to unify this party. Rishaad what about Bernie Sanders and his supporters after all of this . To say that they are a little bit upset is probably putting it mildly. Absolutely. In fact yesterday, there were boos for Hillary Clinton. They were chanting lock her up. Bernie sanders supporters are frustrated with what went on with the dnc leaked emails that resulted in Debbie Wasserman schultz resigning. Rishaad kevin go ahead. Rishaad we can see Madeleine Albright talking at the moment. Kevin, we are out of time. Thank you for joining as. We will have more through the course of the show. Coming up, ill clinton bill clinton rallies democrats behind his wife. We are live from the dnc. This is trending business. Were going to be live in philadelphia and mumbai and sydney. Inflation is undermining expectations for a rate cut next week. Despite the currency up 5 . Signsshares jumping on that the iphone is in china and other emerging markets. Clinton has become the first woman formally nominated by a Major Political party for president in the united states. Her husband is due to speak shortly. We will have that for you live from philadelphia. We have the cpi out of australia. Profits out of china. We got asian equities tracking those highs. Despite also the nervousness ahead of the bank of japan. There was a lot going on. Theres a lot that affect sentiment here. Juliet a very busy day indeed. It is being led by japan. The nikkei is up by more than 1 half an hour ahead of its lunch break. Have the yen weakening after that biggest surge due to the brexit vote