Its biggest customer which is honda. Thanfter hours down more 13 . Tod hastings apologizing shareholders saying the big picture strategy was very much intact. Follow me on twitter. Dont forget to include that as well. For the street of dreams. We have the hong kong and Chinese Markets under way in about 30 minutes. We are looking whole lot more mixed than we were earlier. We had a strong start start out of the gate. By. 3 of 1 . Down s flat at the moment. The first few minutes of trade. And pretty muted gains. Byyo is off its session high. 3 of 1 . Shares have turned positive. The markets are up by. 1 of 1 . Any hint ofwatching language in terms of what we can expect next from the estoril you in central bank. The government which has been reelected after what has been an extraordinary election. Up by. 1 of 1 . Ofare down regionally by. 1 1 . The weakness coming through from the minors miners. Have gold prices taking a breather after the 25 gain when it comes to bullion. We have had this selloff when it comes to safe haven assets. Investors have been resilient following the geopolitical shock in turkey with the field coup attempt shaking things up over the past few days. Markets have been very much focused on being more or less risk on. Taking a look at the movers we have seen. A lot of action in tokyo. We have been watching this one very closely. Softbank is down by 10 . A decline of the most since four years in 2012. Billiony about the 32 holdings, the largest ever acquisition. Not too happy given the concerns about debt. This is a shakeup we saw the upper echelons. Outside. S a little bit jumping again. Of as much as 7 . It jumped 18 in the friday session. This is the favorable and effect playing out and the stock has done quite badly on account longer yen. Some of that respite is coming through again. Hp billiton down 5. 41 with weakness across adrs. And reversing earlier losses. We are looking at a pretty mixed session so far in asia. It is worth pointing out that sydney shares are on track for a knife straight session of gains. Softbank is down. This is due to the 32 billion gamble. Our guest joins us from turkey. Some crazy ideas, will investors see this one this one being similarly crazy . It will take a few years to figure out exactly where this idea stands but investors have reason concern. There was this expectation they will give more by fax reduce leverage. It is clear now there is a lot less hope for those activities and the company has 100 billion of debt. Shares are following the same track of sprint which fell 5 that there is a lot less scope for the company to help its u. S. Unit. Signal adoes the change in investor practices established by the former president . Speaking here. Wasnder aurora the company divided into the operational investments which is cash cow generating Domestic Telecom and the investments which would deal and super cell and alibaba. It is not clear where arm would fit into the structure. It is different from previous large bets Like Vodafone or sprint and turning them around. One thing is clear. Grandioseabout his thirtyyear vision, investors do not taken seriously. He is making clear that he is willing to make deals that will take decades to play out. Indeed and it is the timeframe that has people this beingeing is seen as premature in your view . There is a chance that arm will be what intel was for pcs. We that is not something will find out until the fifth generation of wireless. 220 2020 and beyond. An an and embryonic 0 embryonic stage. An argument can be made in this much uncertainty one thing for siliconinvesting in the bedrock of the iot. Rishaad good talking to you. Takata shares under pressure. Down. Is 3 it is 4 , i am being told. To beginpted this with . Because these recalls, these faulty parts led to fatalities there have been a number of various lawsuits floating around in the have have to conduct this audit. This is initiated earlier this fall, last fall, actually. It was only discovered recently because our reporter Craig Trudell was pouring through hundreds of pages of documents and depositions related to these lawsuits and from that research, it emerged that there has been this potential smoking gun in which the investigator discovered that takata has in fact manipulated the data. What have we learned about how takata dealt with their air bed airbag customers from all of this . The session that thing was wrong with the testing. This shows one of the specific ways that they manipulated the data basically by selectively , not necessarily averaging it for adjusting the data up so that the airbag , inflatede performance looked a little more consistent than it actually was. All right. What is, what are the next steps for this audit it looks like this will be spreading both geographically. They have focused on north america. It looks like this could definitely google. The same sort of investigation uncovering the sensitive information. Additionally, they are talking about the same kind of data provided to tell you and general motors. So this is a widening point for the investigation yet again. Trending business thank you very much. We have the repercussions ming felt of these events which took place being felt of these events which took place in ankara. These are the other stories were watching. Juliet the Ratings Agency said it could downgrade the nations Credit Rating sank the attempt to unseat the president will increase economic challenges. Turkey had been struggling to push ahead with Economic Reforms as growth weakens. Despite that an exclusive interview with numbered, Christine Lagarde sent a Quick Response by turkeys policymakers did help to calm investors. The central bank, the financial authorities have taken very immediate and very concerted measures to avoid any and economic and financial massive disruption which we could have had. We were on alert monitoring the situation and wondering if they would take the right measures. The turkish authorities, centralbank come finance ministers, treasury operations have reacted very strongly, in a concerted way in order to make sure there would the liquidity available, that the banks could function and markets reaction was relatively moderate. Juliet they are attempting to rein in new zealands housing boom by restricting the amount of money investors can borrow. Acquireral bank will investors to have a deposit of 40 if they want to buy anywhere in new zealand. Currently investors in auckland must have a 30 deposit. The new legislation will be introduced from september 1 and it paves the way for a rate cut. To cutve been hesitant the cash rate for fear of stoking housing demand. The kiwi has plunged during trade early tuesday on expectations we could see a rate cut next month. Chrysler is under investigation by u. S. Authorities over how it reports sales. The automaker said it is cooperating fully with the Justice Department and the sec. Bloomberg news has reported that prosecutors have opened a criminal investigation into fiat. It follows civil lawsuits that challenge Sales Numbers with two chicago dealerships alleging they pay them to report selling more cars than they did. Shares plunged on the news before recovering to close, little change by one third of number 1 . Rishaad were looking at exit bargains. Thethe riches are using drop in sterling to check it out. Lets tell you about what is ahead on trending business. Why asia is embracing bullet trains like never before. Have thrownl banks up some surprises. Are we in for anymore . This is bloomberg. Rishaad i check into the business headlines. Chinas regular has ordered an investigation into baidu. Announcing the inquiry after reports of other sites advertising [inaudible] the ads were replaced without its permission. Telecom among those selling despite being rated junk by one at least one reading company. They bought 11 billion worth of corporate bonds. They are trying to revive growth in europe. And considering a buyout of the biggest subway operator. Weighing out and asered to buy the rest shares remain in a trading home. They faced criticism that a buyout would make managing the operator easier and provide funds to recruit more staff and improve maintenance. Detour of a bit of a what is going on. From singapore. What is the overall story right now, we have all these event risks up to this year including the vote in britain to leave the european union. And there are a variety of others, the fed gaining center stage. What for you is front and center . Me and the house view is pricing aggressively and that is mildly negative for the dollar against major currencies. Negative orlar is depreciating against major currencies it tends to depreciate against the asian. That is the big picture. Brexit was obviously a big shock to the system and we see that repricing of the pound. We do not think it is going to come back to my at least not all the way. The depreciates against dollar and the euro. The big picture is a mildly reducedollar and expectations of fed tightening. I was going to talk about sterling later but lets talk about it right now. The point is as we still have this uncertainty of this timeline, does the pound languish and are you surprised it has held up as much as it has or is it more of a product of what has been happening with the dollar . Guest the initial drop obviously was exitrelated brexitrelated. Cooler heads have prevailed and people have reassessed how bad things would get. At this point we think it is in a Holding Pattern waiting to see. We do not see it going very far from here. Of aing sideways ahead protracted period of negotiations in terms of the next step. I think the big picture remains the dollar. And what is happening and when you talk about the dollar, you go back to what is happening with the fed. About whaten we talk is going on with the dollar, what about the yen and its upward trajectory lately . Not just the dollar but a whole host of other currencies. These forecasters suggesting we , have a anytime soon got any credibility . Guest it did look like 100 was exerting a pull on the yen. It stayed there for quite a while, i think in 2013 ahead of the halloween surprise. That bounced it to 120. At this point markets seem to be repricing for helicopter money in japan. We are now above 105 at least when i last looked. Higherhaps heading even on the possibility the bank of japan goes to the extreme measures and certainly they need to do something, the move to zero rates has backfired. Of the yen ison toasting them, they really cannot take that. They need to get Inflation Expectations up. Helicopter money would be one way to do that. Rishaad it has in counterintuitive. They have done further easing and increased stimulus. It has gone the way they did not want it to. Whys that . Initial reaction to the move to negative rates was based on the view that it would be bad for banks. That would intensify the deflationary pressure that the economy was already suffering from. Has been experiencing mild deflation for a long time. It does not do too bad economically from this. The intensification, the flattening of the yield curve at zero is something that the authorities seem determined to reverse. It does increase their vulnerability to another adverse shock from, for example growth in china, Something Like that were to happen. Deflationary treasure would intensify in japan. That would not be good. He would like to get Inflation Expectations and, at this point they are struggling with what to do given that the move to negative rates backfired. Helicopter money is a possibility. Rishaad lets wrap things up with a look at what is going on with the aussie dollar. A political nervousness there as well. What is your view . Guest mildly negative create we think were not looking for any aggressive in terms of the aussie dollar that centralbank is poised to ease and that being a slightly negative for the aussie dollar. ,t is mildly deflationary deeply depreciation. Always a pleasure. Joining us from singapore. On the other side of the break we are looking at the netflix chief executive. Why question mark he is apologizing as shares take a hit after subscriptions fell short. We will have other details. This is bloomberg. Rishaad you are back trendingaad business. Nad properties and properties on the way up and they are a bit upset here because company they missed their own forecast. They company added 1. 6 8 million new users in the last order. Although of those 160,000 are from the u. S. , and 1. 5 2 million overseas. Of 2is versus a forecast million. Both falling short of estimates. A surprise. Ceo Reed Hastings said there may be some resisting resistance. This is what he had to say. Mr. Hastings we have not seen any affect. We changed prices to the 8, 10, and 12 last october and we have had a couple of quarters of great growth. This is really around change resistance. Whatever the price is for something, people do not like it to go up. In terms of new members which is most of what arrives growth, the new pricing is working great. Also scrubbers noticed a difference and did not like it. Old subscribers noticed a difference and did not like it. That viewershow are sensitive to prices. Rishaad 47 million subscribers are there already. Where is the growth going to come from . It will come from international markets. Most analysts think rishaad they have to nail down a deal with china. Provided anynot thing on how they will do that. They have done ok but they have not gone into localization, targeting local languages and local offerings. Rishaad thank you very much. We will take a break that next we are expecting their minutes from the reserve bank of australias last meeting. We will break those live next. Rishaad the biggest drop in four years and in tokyo. Ever japanese acquisition in europe and the biggest asian turkey over takeover of the u. K. Company. Chase chief executive trading after missing secondquarter forecast. Netflix added fewer than 1. 7 million new viewers globally, shy of 2 million estimate. Half a million. Division in the Republican Party on full display on the first day of the national convention. Disruptions on the vote on convention rules. Trump is scheduled to take the stage in the next hour. We hope to have some breaking news out of the bank in australia. What thek look at aussie is doing ahead of those july meetings. We are expecting those to drop any second now but with looking at the aussie trading. Eally diverging for that ninth day of gains. We are seeing a little bit of pressure coming through. We have been seeing this selloff and going back into that risk on approach when it comes to not just asia but globally. Take a look at where we are sitting. Were certainly giving up these games. We are seeing minimal gains 18 comes to stocks but weakness right at the open. Lets get to these minutes. What have we learned . Not a great deal of change in the aussie because it is a backward looking indicator. Here is what they had to say. The Brexit Effect will be quite small. Lending curves have helped a demand for housing. Most critically, the rba saying it will wait on upcoming data to prefer to labor data which we have already had. Housing data also seemingly under control but the big one is inflation data. We will get that next week. The First Quarter caused the rba. O cut a feeling is another quarter of deflation would cause them to cut again. I think the rba will move in august after that information is released. Waiting for that inflation data. Rishaad multibillion dollar fast rail work already underway in indonesia and india. They are trying to modernize their transport systems. This singapore bullet train, will it be the game changer people are saying it will be . It is expected to be. Malaysia says it will transform the way the neighbors do business. Singapore says it will boost connectivity, strengthen economic ties. The senses it will give the give the twoill countries some opportunities. Expected to be 300 kilometers long estimated to cost between 10 billion and 15 billion. It will cut the journey to 90 minutes. It is five hours on the road right now. Japan and china jostling for the project. Japan once trickling infrastructure exports by 20 20. China has identified highspeed rail as one of 10 focused industries for economic development. Some suggesting china is already flexing its political muscle. Chinas deepd, in securing the train project so what does look like everyone is interested. Rishaad isnt it true there are potential losers when the bullet train starts running . It pretty busy sector, isnt it . Bullet train will take travels away from the likes of air asia. A highspeed rail could service some of the traffic. Not great news for the airline. They have voiced concerns already about a week outlook as they compete with chinese carriers. They say performance is the first step. The number of passengers failing to keep pace. Rishaad lets get a check on some of the stories were following for you. Iron ore production up 7 . Prices taking place here. Global output rose to just over 85 Million Metric Tons for the quarter. That was just shy of the 88 million it was being estimated. Rallying 31 so far this year. U. S. And chinese navies have held what americans say were frank discussions in beijing, including the south china sea. The first meeting between the week after the u. N. Court denied chinas historic claim to 80 of the waterway. Beijing announcing three days of military groups. The wto and the World Federation of trade unions will also attend ahead of this weekend. An annual meeting with leading economic groups. They did gather in china for the g20 meeting this week and Global Finance ministers saying discussions likely to include the impact of brexit. There has been significant in the macroeconomic section of Great Britain over the last five years. We have seen it move from a 10 fiscal deficit to more than half. My recommendation would be to really reduce the level of uncertainty, identify clearly what the goals are, identify the that it, and understand will take time but it will require understanding on both sides in order to eliminate the trade uncertainty, the uncertainty, the passport uncertainty, and a whole range of issues which need to be addressed which have brought the European Countries together and from which clearly the United Kingdom as indicated in its intention to withdraw. Are you pleased with what you have seen out of the european leaders so far . G 20o in a few days to the meetings. We are focused on the United Kingdom. Are you pleased with the messaging from chancellor merkel and others within europe . They have notent, and deliberately so decided to and the spacerms and the maneuvering that they all want to offer or expect from their partner and i understand that because there has to be certainty about the timelines. The two years that will be triggered by this article 50 will open a limited time and i can see why they wouldnt want to put their cards on the table yet but if on the other side the United Kingdom moves in the direction of what i call clarity of purpose, transparency, then certainly the year opinions should respond. Is thatas a european the european leaders will find the strength and determination to bring about some of those structural reforms, changes that will deliver value to the europeans that will demonstrate its worth being together and its the future. Is being regarded as the star of indias Online Retail scene and also the most valuable startup in the country. It now faces plateauing sales and rising competition from deeppocketed rivals. Great to see you, tim. Tell me more about this competition. , the 800 poundge gorilla really giving flip card a run for its money but there is also snap a deal as well. Add to that dozens of smaller players that serve certain niche is in the Ecommerce Community and between those top three, putting in a lot of money coming amazon has already pledged 5 billion into indiana. They are burning through that cash very quickly and will have to probably raise money again in the next year or so to keep going. Mergereds to happen is a. Rishaad does it make sense for snap deal and flip card to merge here . What are people saying about that . The idea is that they will not necessarily be bigger than amazon but they dont need to be. The question is whether or not the market has room for players in the larger ecommerce spaces and i think so far, we have seen a dozen. Amazon is here to stay. They will hang around as long as they need to so it comes down to what will happen for flip card and snap a deal. Those investors are going to be getting a return on their writ investment. I think we will see investors pushing management teams to get down to the table and negotiate some kind of merger so they can survive alongside amazon. Rishaad how could a merger play out between these two . I think the thing is the two management teams wont be doing it on their own. They are quite competitive so i wouldnt imagine the ceos of either company would come to the idea on their own but at some point, they will have to go back to the markets and get some more money from their investors and those investors will want to see some kind of longterm future so what think what they will be doing is saying you need to sit down and talks or you can commit to a future together. Rishaad thank you, tim. Up next, the latest company to dive into the post brexit waters. He also warned weakening the currency could worsen an inflation that is already rising. By more than 1 in june, ending a record 18 month string of declines. Ibm higher. Its an early indication that the transition to clientbased software is paying all. Older businesses continue to drag overall sales. Performance in the first half was below expectations. Asias Biggest Airline saying customers failed to keep up with an increasing capacity. Theyre having a look at the share price a bit later on for you as well as we get reaction to this. In four yearsop for share prices in softbank. Chip designer arm raising eyebrows. Says the deal was inconsistent with softbanks investment strategy. Great to see you. How could it really be not in line when we have already had them say they will be prodding us for some crazy ideas . Hello. He did warn us of some crazy ideas, indeed. Prior to this, they had acquired 40 stakes in companies that had primarily internet or ecommerce exposure. This is neither 30 or 40 , this is 100 inquisition. It was unlisted. Then this is not internet, this is not ecommerce. This is more in the chip design licensing site, which is divergent from what so far softbank has done so its highly inconsistent with what they have laid out in the past but he did say he would come up with some crazy ideas so maybe there are more to come. Rishaad is there any industrial logic for softbank in this . Inll, i dont believe convoluted logic. If its simple, its simple. Soundingake it work like with the chip design, it can help with the phone companies which will help you get better deals. And we see this is the main reason they are highlighting. Again, this is someone who has made things work in a longterm. When he invested in alibaba, it took 15 years. On a longterm horizon, it could make sense of but in the near term, it doesnt seem to make much sense. Rishaad sprint also looks a bit of a strange one as well. You could say that made some we willt does this mean get into actually designing computer chips at the end of the fit in how does that with the rest of the units . Dont ask me. Its a good question. [laughter] some of the devices hes talking about, refrigerators and smart houses, also require steel, iron requires iron and requires iron mills so you can stretch the logic any which way but in simple terms, it doesnt fit the investment logic, strategy they have defined so far. It is indeed crazy. From what we can tell so far. , lets it makes perhaps say intel, do they look at this and say we should get in here, looking at the regulatory impact. Do you think chipmakers will step in here . Unlikely. For intel, it will be monopoly issues. There arent too many deeppocketed chip Manufacturing Companies right now. The one part of Chinese Government that has acquired quite a few chip manufacturing businesses worldwide, they might be interested but the deal is pretty much done right now. Move to another company grabbing the headlines in tokyo at the moment. We are talking nintendo on a flight today. Pokemon go, i just got back from the u. K. And my nieces and nephews are all playing this. This is a huge hit, isnt it . Yes but it shouldnt come as a surprise. It doesnt come to us as a surprise as well. Zelda,u look at mario, donkey conquer, you could see it a wild back. It appeals to a mass audience which is now on the smart devices. We knew nintendo would come to mobile. We knew there would be nothing that would be matching nintendos craze because they are the best when it comes to software and game development. They are. This is only the tip of the iceberg. Theres plenty more to come after that. Nintendo is just starting moving in the right direction. Still inthis is almost its infancy. Its already a global story but it could get bigger before it plateaus. Yes, it his only launched in about five countries. Last week, they launched in 20 European Countries. Japan will overshadow Everything Else we have seen so far in terms of subscriber base, in terms of spending and maybe they are not even ready for that kind of server overload when japan comes on board. There is plenty more to come just on pokemon alone from the game. In accessory sales, sponsorship locations, there is more. Plenty more to come in the form of mario, zeldarelated games and their own accessories. There is a long process. There will be lots of ups and downs. Management hasnt shown the ability to communicate it really well. Rishaad great talking to you. At india. Ok indias indigenous cows are considered sacred so its unsurprising that this sound is the sound of liquid gold hitting a concrete cowshed floor. There is money in the cow urine trade. A liter of this stuff is worth between 1. 20 and 1. 50. A liter of milk will fetch a quarter of that. It ends up in natural therapies with supporters making bold claims about its healing properties. Some warn that cows he runs cow urine could transfer diseases. I have lung cancer, a tumor in my lung. I have taken all sorts of medication and am tired so i came looking for a tear. Throat cancer. As three or two people in my village have been here so we are looking for the same. Buys 25,000ic liters of cow urine every month to meet demand. People think there wont be a huge turnover in this business but this year, our turnover will be about 10 core rubies. This is an agent treatment and its approved. I hope we can spread it across the country and bring people relief. Industry has received a boost from the prime minister. The National Program has been set up to provide havens. The proceeds helping pay for the up cakes upkeep. From our studios, this is charlie rose. Charlie for the third time in 18 months, the flacks have been lowered to half staff. More than 80 are dead in the resort city of nice. A Tunisian National drove a truck through the streets. Let me begin with many of the questions on peoples minds. Why is this happening . What can be done about it . Clearly there is a type of radical islam which is inspiring