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tv   Trending Business  Bloomberg  August 23, 2015 9:00pm-11:01pm EDT

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>> this is trending business. going to be live in singapore. stocks shift.g the regional benchmark at a two-year low. up oil production. also wanting an emergent a
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meeting before this federal meeting and timbre. singapore moving close to an early election. off and involved some pain. got singapore, thailand, and malaysia. we are going to kick things off with current the. weakness continues. >> it is not ending. there is very little reason to look at that because it is really broad-based selling. we are down at 2%. 1.3% at the end.
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watch out for these companies. we are approaching similar to the asians finance will christ is. -- asian financial is. 1.5%.nchmark is down u.s. dollars. broad-based selloff. it was a horrible day. inc. we are 9.5% down. let me get to those levels now.
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15.33. a.were close to 1700 we haven't nation coming up korea, taiwan,h and malaysia. regulators announcing sums that up theirteps to shore market. we are down one point percent. rishaad: china is not the only one in the region to shore up markets. let's have a look at taiwan. taiwan stocks are opening down as much as one went 7%.
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the slowdown will hurt demand for product. now down more than 21st and from late april. yesterday authorities wrist bonded i slapping a ban on short telling and borrowed stocks lower than the reviews is close. it does not apply to future shorting for hedging purpose is. similar in south korea area the finance history will lack value investment sensible does hope fully asian
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market do not panic and result in knee-jerk decision. that's we want your views as we take a look. to send a your thought. -- send us your thoughts. even as crude prices fall to the $40 a barrel level, we take a look at opec's push to stabilize crude market and how i ran factors in packs we have prices on new york crude at $40 a barrel. it is the longest decline since 1980's the. it will deliver as much as one million barrels of crude oil to the market today. it mays opec concerned. be good for consumers area not
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mrs. early oil companies. the year to date. the london brent crude oil down about 22%. you see the declines. the concern is china's growth is its demand is not what it used to be. it comes as countries continue to pump at regular -- record levels. that's another challenge for uber in china. it has been blocked. do check it out. we have deepening tensions. is running high on
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the divided korean and it will after this died exchange artillery fire and the north tarted mobilization of armed force is -- started mobilization of armed forces. we have yet to hear of progress in this handoff. plantede recently landmines by north korea. south korea retaliated i resuming propaganda to allows koreas -- speakers north views as offense. mostituation is one of the serious since kim jong-un took power. a south korean military officials said north korea dispatched more than two thirds of submarines and doubled the frontline artillery forces.
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in australia tensions are running high in the mining hit the as commodities business. falling 88% in 12 months ending in june. the minor was hit right plunging prices and iron ore. 317income came in at million. ore production from the company it self. combined with us going in chinese steel out that. they are at ask your lows. metals derives almost all of its revenue from china. goldman sachs say prices may slump on supply hikes. another minor pop for year earnings rose helped i aluminum
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operations. underlying earnings came up at $575 million. it is the world's biggest manganese producer. a cost-cutting program boost earnings and has record out put in south africa. the ceo says the company will week to reduce controllable at cost of $350 million a year for the next three years. back to you. investors confident in thailand after the deadly bombing. after the release of the first
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results of an independent company, we are talking to the chief it negative. this is trending this. -- business.
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>> bhp billiton posted hit -- its results. it's earnings rose 41%. need. it live from the is difficult to make these ends. 41% must be pleased. what happens next? result, and we have hit the ground running. for the last x months there has been a deterioration in terms of pricing.
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we are making sure we have the right cost based and two maximize our asset. with the broad-based commodities, have we hit bottom yet? >> it's difficult to call the bottom. honest, when we think about the group going forward we are learning for a couple of hard. that, it is very hard to believe commodity versus continue to trade where they are where they are basically underwater. x you have a strong position. you are already saying you are not into coal m&a. where are you interest did in
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quest -- interested in? brexit we talk about our balance sheets, we have talking about we a company backed by shareholders where we don't the opportunities. existimary focus is on asset. better. it can be run we think there is a great resource to reserve. we have us wrong balance sheet. -- a strong balance sheet. rishaad: people have talked about investments as well. the south african manganese operations are vulnerable as potential sales tax. how would you like to comment?
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>> every as that has earned its right to stay in the portfolio. it has been a great asset for a long time. we think it has the potential life of 22 years if we can take a capital intensive extension. manganese south africa we have well-positioned assets. in the kalahari basin is where they are because of the proximity to customers. asset.focused on >> if m&a is not necessarily as ratatouille, what about returning money to shareholders? is that another course of action you can take? ask 100 days for a list that
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come to. we will focus on having the right balance sheet. we are not talking about any action based on respective cash flows. it's a tough environment where we have the cash. we are being very clear. beyond research 40% dividend. rishaad: let's talk about underlying earnings growth. how are you going to in recent earnings without the prospect of cost toyou already cut the bone? >> we have given a target. $350 million minimum in terms of where with the opportunities. we have given indication we have seen a nine or send a klein.
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focused not on the growth of volumes but the growth of cash flow. we can achieve that by giving these assets the love and attention they deserve, by having the right culture and maximizing their value. packs thanks for joining us. -- >> thanks for joining us. blast in 10dustrial days has left one person dead and several others injured. they fired at a plant and caused the next lotion. the disaster came as the number of people killed reached 121. 67 iron writers are among them along with seven -- firefighters are among them along with seven police officers.
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to catch theneeded people behind the bombing. the perpetrators have fled the country. a reward for information has been raised to $85,000. he investigation appears to have made little headway beyond surveillance video and a sketch of the mains us act who has not been identified. morepore has been promised measures. he announced plans to make public housing more affordable and to raise the age to 67. he will call an election in, which will be critical for singapore's direction over the next two decades. the prime minister says singapore is at a turning point. >> more coming up after the break as we examine the prime minister's land and the opposition he will face. we are back in two minutes.
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>> the prime minister pledges more social measures. trying to manage the rising cost
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and increasing frustration over an influx of foreign workers. let's head over to haslinda for a look at this. what is behind the timing of his election? >> this comes hot on the heels ,f the country's 50th birth day which some say is to capitalize on the feel-good sentiment. there seems to be an increasing call for a stronger opposition. the ruling party is keen to win -- the support. it wants a strong mandate. measures are aimed at showing the people there voices are being heard. here is what the prime minister says is at stake.
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>> this is critical. you have been deciding who is governing singapore over the last five years, but you will be choosing the team who will be working with you for the next 15 or 20 years. you will be setting the direction for an up or for the next 50 years. -- of sing up or for the next 50 years. you will be determining the .uture are packs worth noting this is where the parliamentary seats will first be selected. >> what social measures are going to be implemented ahead of any polls? haslinda: things like government raised asant will be
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housing becomes more affordable. those who want to stay in the workforce longer can do so when they reach 67 and set of 65 previously. previous a.f 65 it is aiming for an inclusive identity, but there are top choices to be made like immigration. he warns sing up ours economy will tank if foreigners are not allowed in. whatever the opposition there will be pain for singapore. >> let's have a look at stories that should be making headlines elsewhere. trade withboost china, japan, and south korea. malaysia is saying the links will help at the free trade target. they focus on good and service is as well as invest.
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a were encouraged to diversify into the yuan. india remains up to mystic about it future. the finance minister saying the achieved 8% gdp can be if there are no adverse mobile trends. control. is under a worse the next acted monsoon season. richestoup of the 400 people that make up the billionaires index lost $182 billion last week. by 3.5his fortune fall billion. 11 billion was added in june. .hey are getting the most
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net likes may be joining a new team in japan. netflix prepares for its japanese a view this year. episode.r exclusive s the ties will help attract users. no agreement as north -- in north and else korea. each side accusing the other of provocation. inhave the market open shanghai.
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rishaad: stocks falling at the indices andew week, japan, australia, taiwan dropping at least 2%. $150 billion wiped away in the opening our of trade. iran said it would boost production of oil at any cost.
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crude down by more than 30% since june. talks between north and south korea, no signs of an agreement. kim jong-un has stepped up the mobilization of his forces. the truce on the peninsula has been strained by the exchange of artillery fire and accusations. the start of the trading day, what are we seeing? 2.5% is the damage right now for the regional benchmarks. that is how asia looks for you. the biggest loser, just about every single sector has been down. , 2.7%.r goods
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how is china looking? seng down 3.5%. shanghai is following suit, 3.8%. board, risk aversion, everybody is getting out of equities. the japanese yen. , 2.03ields, u.s. 10-year basis points. levels of us back to april. japan, 10-year yield, we are seeing red. the shanghai composite, 3500 is the line in the sand and we are clearly below that. the racing are gains -- erasing are gains for the year. -- erasing our gains for the
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year. market, aening in the lot of risk aversion. not good, that is the best way we can describe it. turmoil, falling currencies, slowing economies. the current chaos is starting to feel like 1994 all over again. now formlin joins us more on this. what are the similarities and differences between now and that time when china devalued? back -- back in 1994, china devalued and the fed was just about to begin a tightening cycle as well. in addition, the region, asia's biggest economy japan was also
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slowing. several similarities. significant differences as well. the asian financial crisis helped to cleanse the region and now it has a stronger fiscal position, stronger foreign exchange reserves and does not have fixed exchange rates like it did back in the 1990's. he does not have such a big problem from hot money -- it does not have such a big problem from hot money inflows. rishaad: give us an idea of how the mechanics work. how does it increase these odds to the global economy? anyone who competes with china for exports will face additional pressure from the depreciation. the unum cap -- vietnam, duvall evaluatingvietnam,
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-- devaluing its currencies. commodities, the demand for commodities is likely to reduce as the price for commodities increases and dollars. dollars. rishaad: the immediate competitors will be the most vulnerable. southeast asia is the most vulnerable region? kevin: probably not. it is -- asia is in a better situation than it was in the 1990's. there are weaknesses, malaysia and countries like thailand, south korea have a lot of export exposure. the main indications, this time around, asia is better off. commodity exporters like brazil, south africa, a few other places.
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rishaad: thank you for that. kevin joining with the latest on the chinese devaluation is looking like 1994. we have tensions running high in the divided korean peninsula's. the two sides exchanged artillery fire. talks are taking place over the weekend, but breaking up inconclusively. let's get the latest from our chief. seoul bureau how long can these talks go on for? >> they say they will continue until some resolution is reached. in the past, they let it peter out. some side always walks away and everything is forgotten. this could happen again this time. north korea has escalated,
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particularly on the military side. they attacked submarines. their amphibious landing crafts have gotten closer to the south korean border. they have also doubled their artillery batteries near the border. there is stepped up military movements right now. outside --e growing we know how tense it is. they have been going on 18 hours now. feeling i want to get a of how south koreans are reacting to the rising tensions. what is the mood? >> they seem to be taking it in stride. there is some unease, but they are moving on with their lives. there is no change. all of the events are still happening. it may be because they have gone
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through this many times before. of a civilat specter war. these types of tensions have flared up on a regular basis since 1953. rishaad: peter, thank you very much. let's have a look at what else is going on. . of reaction on social media -- lifein south korea in south korea may be normal, but on social media, a lot of interest. south korea's biggest search engine is the high-level meeting. month, two south korean soldiers were maimed by landmines. people talking about this, demanding an apology. one person saying, don't back
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down until there is an apology. other people commenting on the frustration of dealing with north korea. one person saying, just come back, it will be easier to talk to a wall. another person saying, please finish. these talks have been going on for hours. they started in the afternoon of sunday and have been dragging on for more than 17 hours. rishaad: china's second-biggest -- boosting its asset withdrawal. that could rise to 8 billion by the end of the year. make itinterest rates difficult to find attractive returns at home.
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the biggest production line in china will be -- will remain shut down until wednesday because of the deadly explosions in tianjin. operations will resume when it can confirm the safety of its employees, facilities, and the surrounding area. the blast destroyed 5000 of its vehicles. noodles may be back on the shelves. they were banned based on reports that they contained lead. get into this breaking news, market rally extending from equities down to commodities. the shanghai composite index falling by more than 5%. 5.4% down at the moment.
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brent crude, we have seen it for below the $40 a barrel the first time since 2009. that is what is going on in the oil market. weeks, the few indian prime minister faces elections that could make or break his time in office. let's get over to new delhi. what makes this election so important? >> that is right. earlier last year, the largest mandate in 30 years. it was just offer him half of control of the indian parliament.
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by other half is appointed the state legislatures. for him to gain control and to execute his reform agenda, he needs to start winning these elections. place.n interesting for him to consolidate his power, he needs to win this election. if he succeeds, he is able to push his reform agenda through the way he has not been able to for the first year and a half. he wants to be empowered for 15 years. they have many issues, don't they? asig challenge for modi well. run through the challenges. >> the biggest undoubtedly is the electoral system.
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for decades, centuries, india has been electing its leaders based on the caste system. people with the same last name so the people they vote for. this is a problem for the state because development has largely lacked as a result to a large extent and modi needs to cut through this caste politics to really succeed. that is the battle. he is fighting against parties that have controlled these communities for a very long time and they have a stranglehold. for him to succeed, he needs to cut through the baseline. rishaad: absolutely. easier said than done, i am sure. how does he go about it? to straddle the fence a little bit. he needs to play the game and he
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needs to pursue his own development agenda. that, if he persuades the communities to lean on the development side, he can succeed. we have seen a little bit of this in our reporting. there is a community next to the capital city, it is an island, and has been largely neglected in terms of development, including the lack of a bridge to the mainland. the people are saying, look, forget about caste politics, the first party that brings us this bridge will get our support for the next 25 or 30 years. if he is able to do so, he may stand a chance. rishaad: thank you very much. joining us from new delhi. bombs in bangkok. we will be talking to the head
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exchange tostock see if the markets there can weather the storm. ♪
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on a paris bound train said they acted purely on instinct. two of them have military training, but they were on holiday when a heavily armed man tried to open fire. a british man and french citizen helped to subdue the man. saidar's opposition leader the country is like a manner as to child as it struggles to become -- malnourished child as
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it struggles to become a functioning democracy. politicians are still interested in personal power rather than personal rights. rishaad: thailand, shares at their lowest in 17 months on friday. of losses.t days a bomb blast killed people, including tourists. next, our what is next guest. thank you very much for joining us. there was already a billion dollars leaving the country from foreigners. the bomb blast last monday has exacerbated it. what do you do? >> good morning. have twohai market, we
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factors. the first factor would be global. secondly, slow growth of the thai market. about 2 billion u.s. dollar this year so far. compared to 2013, we have had a u.s.ff of 6.2 billion dollars. the thai market remains fairly resilient. the resilience and you say it is strong, but the thing is, you have to prove that to
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your average investor. how do you do that? the first half of this profit increased by 6.4% compared to the previous quarter. profit margins increasing to about 22%. if you see export growth that we compared to other is oures, what we see economic condition, we have more domestic demand. we are well blended between
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domestic demand and exports. we still have very high international reserves. would a return to democracy help? i think the government has a new economic stream to help the country. -- private sector getting back to this whole thing about confidence. it does not help when you have certain companies that delay their ipo because of weak market sentiment. have you seen other ipos being delayed? >> we have about 10 companies
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that are waiting for the ipo and we still monitor them. because of our target of about 7.5 billion u.s. dollars new listing, so far what we have seen, we would reach our target. there is a thailand focus conference coming up in the next couple of days. is that still happening? we have a new team of economics. our new ministry has to announce the policy. we are moving it to december of this year. rishaad: thank you so much for joining us.
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from the stock exchange in thailand. much more to come. markets in the red. ♪
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rishaad: let's find out what is ahead for investors in the u.s. su: the week ahead will be focused on one question. will the market rebound from last week's sharp losses or continue the global selloff? the dow fell more than 500 points. it turned out to be one of the worst weeks for wall street in four years. strategist described it in different ways. one said this is a flight to safety. the big question is, what will this coming week bring?
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commodities appear to have been stuck in a very sharp downward pathway. very unlikely we will see $100 a barrel oil again. >> they go from corner solution to corner solution. the market thinks it's about $50 a barrel. they typically run a surplus until they hit a wall. a number of reports expected to hit the market. the u.s. economy probably grew at a faster pace in the second quarter than first reported. sales of existing homes remounted in july and consumer confidence forecast to have gained in august. all of those reports likely will gain a lot of investor focus. central bankers, economists,
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market for dissidents will be gathering in jackson hole. we have best buy, dollar general among companies reporting. ♪
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is monday, august 20 fourth. this is "trending business." singapore, sydney, mumbai this hour. rerun of 1994. the benchmark at a two-year low. mover iran said it will ramp up oil production at whatever cost to protect its market position.
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tension, no breakthrough as the two koreas meet. north korea says the army is ready to inflict a shower of fire. follow me on twitter. don't forget that all important #. going to jakarta later this hour. at the moment, david, looking at the shanghai composite. david: we are 7% down. we have seen better days. you are looking at the worst day here for asian equities in two years. the last time we saw something like this take place, it was during summer 2013.
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benchmarks, 310 billion u.s. dollars wiped off. mix, it china into the is easily half a trillion u.s. dollars wiped out. very little to suggest that someone out there might be driven to go out -- go all out. hong kong, taiwan, indonesia down 2% at the open. , a six week high. the ring get -- the malaysian 4.26 against the u.s. dollar. both of the currencies on the
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other side of that trade. suffice to say, not the best start to the week. several asianve government stepping in to prop up the sagging markets. it is not working. the latest efforts. >> government support from taiwan to china. those efforts failing to prop up the market. a lot of red on our screens. china will allow pension funds to buy shares for the first time while penalizing major shareholders for violating rules. has $400 billion to stop this stock rally in china. china has banned selling by shareholders. look at what the shanghai
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composite has been doing. taiwan stocks closed last week and bear market territory amidst concern that china slow down will hurt demand for its many technology products. taiwanese authorities on sunday responded by slapping a band on shortselling borrowed stocks at prices lower than the previous day's close. the regulator is working to encourage the financial industry to hold onto shares of listed companies. south korea, the finance minister said it will act reactively after it suffered the biggest weekly withdrawal symptoms exception -- inception 15 years ago. , hopefully,ments they don't panic and resulting
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knee-jerk decisions. definitely some intervention, not doing a lot of work this morning. rishaad: that story is front and center, of course. we value your opinion. do tweet us. index,rg commodities everything seems to be down. 1.7% lower. we do have an overall market trending. this slide is the lowest we have seen since last century, 1999. we will bring you details on this. what has been going on with the belowrket, u.s. crude that $40 a barrel level. iran says it will increase oil production at any cost.
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iran factors into it. the longest streak of declined since 1986. to add some more historical perspective. the prospect of iran returning to the export seen when those sanctions are lifted, a lot of conversations taking place as to how this will factor into the markets. opec is pumping at a record pace already. each nation wants to maintain its piece of the market share. precisely why iran wants to pump at its maximum capacity. millions of additional barrels of oil being added to a supply glut, not necessarily what the market wants to see. it is having an impact on the nation's themselves, but those companies that do business in oil, whether they are upstream or downstream.
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, sharesina, falling down 3.6%. south korea, on the refining , shares down 6% today. seeing a 3% drop in that market. you see the impact on the market space and the company space. the london benchmark brent crude down 1.6. add a run into the mix and a lot of questions as to how this will play out in the global markets. maybe good for american drivers. the u.s. has its own oil revolution, shale oil. that is why these middle eastern producers, saudi arabia, russia, all looking to protect their turf. now iran getting into the act.
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rishaad: thank you very much. having a look at tensions between seoul and north korea. high onnsion is running the divided korean peninsula after the two sides exchanged artillery fire as the north stepped up the mobile invasion of its armed forces. talks started over the weekend where we have yet to hear of any progress. all of this coming after two south korean soldiers were injured by landmines seoul said were recently planted by north korea. the standoff is one of the most serious we have seen in the last few years. south korean military official says north korea has dispatched more than two thirds and doubled its frontline artillery forces.
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markets are reacting to the tensions, the largest etf tracking the stocks had the biggest weekly withdrawal since its creation in 2000. profitsaustralia, tumble more than expected, falling 88%. it was hit by plunging prices of iron ore due to a global glut. million, compared with two point $7 billion a year earlier. according to data compiled by bloomberg, they derived all of its revenue from china. the ceo says the market has been hit significantly by threats of oversupply made by some of the large producers and this contributed to the dramatic volatility in the price of iron ore. prices may slump at 30% over the next 18 months because of supply
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hikes. will tryeek lawmakers to form a government today after splitting away from the party of prime minister tsipras. to form a newt administration, but he acknowledges the differences inside parliament are too wide to bridge. his party was formed on friday when 25 rebel lawmakers broke away and is now the third largest in the parliament. tsipras called an election and with little to no chance of former a government, the election -- the formal election process can take place next week. the most likely date for the national ballad is september 20.
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back to you. uber's quest to win over china. the resistance that it is facing. a very good read, we will see why the indian rupee could be the biggest winner. ♪
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rishaad: breaking news, the shanghai composite has erased its gains for the year. there we go. over the course of the year to date, we are down by two thirds of 1%. the entire set of healthy gains at one point.
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what does it mean? let's check with ubs wealth management chief investment officer. when will the rot stop? click sentiment is really negative -- >> sentiment is really negative right now. all of the state supporting measures are not lifting sentiment right now. market,bout the stock look at the chinese economy on its own. we are seeing signs of early civilization, property sales. we hope in the next couple of weeks, there could be some kind of stability. signs, pmicovery number shows the manufacturing pace is contracting at the fastest pace we have seen since 2009. kelvin: three months of
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consecutive lift off in sales. that is the key factor. we think that is a one-off. are you seeing any similarities between the ensuingion of 1994, the financial crisis three years later for the asia-pacific? kelvin: not at all, actually. the devaluation is a pretty smart move. if the currency is included and if all the sovereign wealth funds are included in their own reserve management. it is a pretty smart move and on
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par with the pboc to make sure it does not become overvalued in any sense. prior to the devaluation, it was one of the better performing currencies in asia. currencies all falling clearly, the yen is overvalued. that will not be good for your exports. onwas a pretty smart move the part of the pboc. 3% is neither here nor there. do you see further weakness looking at the rmb? kelvin: if all the other regional currencies come off and the pboc is willing to let the market take a bigger role in deciding where it should be trading at, it is probably where
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the yen should be headed for. anything beyond that is a little bit overdone. the pmi numbers are causing a lot of worry. if you look at all of the other indicators, they are not that bad. there is a lot of panic selling at this time. let's talk about the big elephant in the room, the federal reserve. how much of a pair low can you draw with people having -- parallel can you draw with people having that view? elvin: quite a fair bit of similarity in the sense that this is the first rate hike in 11 years. it is quite a monumental event. you cannot fully price in an event like that.
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as we move closer to september, which we think is the month of the first rate hike, we believe volatility levels will spike up. if you throw in all of the other factors, the chinese devaluation, the pmi numbers, if you put all of these factors together, it seems to point to the fact that there will be quite a sharp slowdown where the global economy is concerned. europeanu.s. and economies, we think growth is ok. on the chinese front, we have known the manufacturing data has been week for quite some time -- has been weak for quite some time. we should beething overreacting to right now. rishaad: great talking to you, have a great week. china second industrial blast
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in 10 days have left people hurt . a fire at the plant caused an explosion. the latest disaster came at the latest number of people killed in the tianjin explosion reached 121. dozens more people are still missing. saysead of the thai police the perpetrators have fled the country. the attack killed 20 people. the reward for information has been raised to $85,000. the investigation appears to have made little headway beyond securities video and a sketch of the main suspect. singapore has been promised more social measures ahead of elections. the premier announced plans to
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make public housing more affordable and to raise the employable age to 67. he will call an election soon, which will be "critical" for singapore's direction. the prime minister says singapore is at a turning point. rishaad: the state that could make or break india's future. a first down report from a small poverty-stricken region. ♪
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athaad: we are having a look some of the top stories out of india this morning. noodles may be back on the shelves. they were banned in june after claims they contained lead above levels. optimistic about the future, the finance minister saying the official target of 8% gdp growth can be achieved if there are no adverse global trends. agriculture will improve significantly this year and inflation is under control.
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moody's one place where growth is needed is one of india's poorest regions. bloomberg news has been to the state to assess the challenge of daily life. >> when the river is high and there is no bridge, the only way of getting there is by boat. what you see is much of the island boat by boat coming to the shore. when the boats get close enough, they prop up a plank roughly the size of a two by four and people slowly walked down and you see wedding parties, merchants holding sacks of goods,
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motorcycles going down one by one. you see young mothers holding their babies close. you see young men getting off headed for work. you see the life of an island emptying off one by one down this plank of wood that is shoved into the mud of the shore. coming back from the island after interviewing the police officer who replaced another officer who had been shot through the chest and thinking about that officer who had been shot, his journey from the island to the mainland as they were taking him to a hospital, bleeding out of his chest on this slow boat. coming back from that interview, i thought about that and the fact that this guy, because he had to take that boat, the
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cousin there was no bridge, -- because there was no bridge, the possibly of resources -- possibly of resources, he had no chance. rishaad: the challenges facing the people of bihar. we do have breaking news. it is out of taipei about the index, which is having its biggest drop since 1990. 7.2%. this falling on the heels of what is happening across the asian pacific. shanghai composite, erasing the gains we have had so far this year. seng, down 3.8%. that 19,000 psychologically important level.
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singapore, 2.6% the deficit. manila, 5% down. a sea of red when it comes to commodities. brent crude below $45 a barrel. when does it all stop? we will be putting that question to all of our guests. we are headed to sydney when "trending business" returns after this. ♪ . .
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♪ rishaad: they look at our top stories. asian stocks, two-year lows. those lows look like they are going to be challenged. just the first few hours of trading so far. wiping out this year's gains. topix heading for a correction, down 10% from its highs earlier this month. oil, six-year lows and global oversupply.
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brent is now under $45 a barrel with texas under $40. sanctions lifted under the nuclear deal with iran. the talks continue between north and south korea. seoul said kim jong-un has stepped of mobilization of his forces and send most of his summary to sea. much of the asia-pacific falling for a six the day. -- sixth day. the markets are close in tokyo. i bet they are relieved. zeb: things have gotten much worse since the last time i was standing here. given all the headwinds, reasons
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to sit this one out at the moment. over 700 billion u.s. dollars in market cap wiped out this morning. -- not even including some of the small stocks across southeast asia. lot. really says a hong kong, 3.5%. that is roughly 800 points. touching the six-month low right now. composite entered a technical correction if we close at these levels. taiwan is the other story as well. worst day for stocks in two years. look at the futures.
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what are we doing right now for dow and s&p futures? we're down 1.25% for s&p. similarld be down a amount. it is not going to be a fun day when wall street opens up later on. very quickly, let me just point this out before i go. u.s. 10-year yields were at 2%. first time since april of this year, which shows the risk aversion that is happening right now. asiand: we have got governments coming in, trying to prop up the market. it is not working for them. taiwan tried to do that. the biggest fall for the taiex since 1990. steve, we were talking about this on friday. the sand.he line in we have gone well below that. do we have another resistance in place? >> you saw the intraday chart on
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friday. i was watching -- 3500 is going back upwards. and it did. they are trying to prop up the market fundamentally. actually still probably overvalued. we are looking at the stocks on mainland bours trade at a median 61 timeses reported earnings. than three times the 19 multiple for the s&p 500 index. despite the massive selloff, we are still perhaps a little bit overvalued. 3500 well blown past that. whether we get government intervention to prop up -- they have a were just to do this and chest to been -- a war do that and they have been throwing money at it. a strategist says the chinese government is trying to defy market forces at overvalued
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levels. policymakers should focus on helping the real economy other -- and not the stock market. rishaad: biggest fall in taiwan since 1990. this is another regulatory body which have come in and said, wait a second. let's limit shortselling. they are not working, it would seem. >> we just heard on sunday of this new rule. authorities slapping this ban on shortselling. that took effect today. it has not necessarily helped. a number of efforts by the chinese government to do a similar thing. it will allow pension funds to buy shares. down yourarket 21% today. >> it hit the bear market on friday the -- on friday. the limit down has been increased, i believe, in taiwan.
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we are seeing the worst performance since 1990 on the taiwan stockmarket. these measures by the government not necessarily helping. it might even be earnings sentiment. on a second. things are not going good here. >> that is exactly it. area, authorities there prepared to do preemptive moves if they have to. other governments also watching this very closely. rishaad: thanks a lot for that. let's take it up to speed with the top corporate news from the bloomberg terminal. yvonne: china's second-largest insurer is boosting its act with $2.5 billion of deals in the works. they say that could rise to almost $8 billion by the end of the year. slowing economy and falling interest rates make it difficult to find attractive returns at home.
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toyota plants will be shut down in china until at least wednesday. the chinese facility set operations will only resume when it can confirm the safety of employees, facilities, and the surrounding area. toyota was badly hit by the blast destroyed nearly 5000 vehicles. south32 releases its first results. 41%-year earnings jumped three -- 41%. it was spun off as part of bhp s attempt to reduce costs. shares have jumped about 32% since their debut in may. >> our primary focus is on the existing assets. we think it can be run better. there is a great opportunity.
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we do have a strong balance sheet. &a is always opportunity, not a strategy. yvonne: those are the top corporate stories this hour. have a look at what it -- rishaad: have a look at what is going on in sydney. dropping 3.1%, recovery from just about 3%. it is the most we have seen since 2011. taiwan this morning, the biggest fall we have seen since 1990. shanghai composite erasing the stellar gains we had seen earlier this year. this is what is going on. we have a broad-based meltdown across the asia-pacific when it comes to equities. we also have commodities on the way down as well. one of the reasons we are seeing fortis give metals -- fortescue let's get tol,
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paul allen for how bad this is. paul: pretty bad. profit down 88% on the year. -- 2.70 4 1.7 billion billion last year -- 2.74 bi llion thilast year. the wide range of analyst expectations was between a loss at a profit. no one was sure what to expect here. this is what we got. a very steep fall in the iron ore price impacting fortescue metals very heavily. iron ore is there only product. output, he called it market vandalism and self harm when industry leaders do it. fortescue trying to get its debt
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under control. they are going to offer a dividend of two cents for share share, significantly down from a year ago, when they were offering $.10 per share. is a keyiron ore ingredient in steelmaking. as iron ore slumps, they said a mighty government support. chinese steel makers flooding the market, too. l: exactly. they import all of this australian iron or and are very good at turning it into a finished product, which is steel. the price of steel is down even more than iron ore price. that is putting pressure on them. they say the china's finished steel exports doubled to 100 million tons per year. that is 20 times the output -- you are seeing pictures of the right now -- an enormous steelmaking plant just north of
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sydney. rising steel production putting a lot of pressure on prices there. cut costs. that is a familiar story. they want to trim out $200 million. the ceo saying they need a game changing approach to costs. if they do not achieve that, they might the government yupport to keep two ke steelmaking plants in australia open. the market does not seem to be too troubled by this as blue scope is up 8%. they are all -- also offering a dividend. all looking good for bluescope, but down the line, could be tough times ahead. rishaad: download our mobile app . we are headed to break. tensions on the korean peninsula. that is what we are talking about. talks between seoul and
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pyongyang dragged on in conclusively. and more on the market rout when "trending business" returns. ♪
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angie: stories making headlines around the world. -- leadertheater says says their struggles have become -- politicians are still more interested in personal power than people's rights. earlier this month, the military purged one of her key allies from the ruling party ahead of elections in november. major political parties have signed an agreement to draft a new constitution to safeguard the rights of ethnic minorities in sri lanka.
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it also as a political comeback bid by a former president, who could now face an investigation into allegations of war crimes and corruption. and the americans who helped avert a mass shooting said they acted purely on his. -- purely on instinct. two of them have military training but were on holiday when a heavily-armed man tried to open i are in a crowded carriage. a british man and a french citizen health them subdue the attacker. authorities say he had links to radical islam. >> the gunman would have been successful if my friend spencer had not gotten out -- up. i want that to be a lesson learned going forward in times of terror. do something good don't just stand by and watch. -- do something.
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do not just stand by and watch. divided the koreas are after accusations of artillery fire. is a little, there sign of agreement, but we have been here before, haven't we? andrew: we have. we do not know how kim jong-un will react in these situations. this happens periodically. the rhetoric is tremendous. kim threatening a rain of fire. we have heard that before. tensions are still very high. they have been negotiating 18 hours today. the still does not seem to be much progress. man we have are quite often says it is all about money at the end of the day. view, that cynical
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north korea carries out these provocations from time to time, pushes the south to the brink. no one wants more -- war. rank-and-file south koreans do not really care about these propaganda broadcasts. park said she will not back down unless north korea apologizes for this alleged mine attack. this is what risk -- prompted them to restart these propaganda broadcasts, which prompted north korea to send the shelf. father, and mr. kim as well, is seen as kind of a loose can. andrew: i think that is where the fear is. there have been pretty constant purges of leadership at the top. his leadership is incredibly nervous because they do not want to end up in his sights. could that make them more reckless?
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they want to seem as strong as possible so that kim will not have any doubts about them. we do not really know a lot about him. it is an incredibly close society -- closed society. rishaad: you were there last week. how did it feel insult -- in seoul? as the headlines crossed, we were in the city streets and no one was paying attention to this. rishaad: are you talking about when the mine went off? andrew: no, the artillery shells. we were on the streets of seoul. no one was paying attention to it on the streets at all. granted, seoul is not a border town. probably very different for people living right on the border. but it is not that far. think the current south
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koreans are used to this type of behavior and they take it in stride. rishaad: thank you very much for that. is making headlines on social media, as you would expect. >> as andrew says, maybe life as normal for south koreans, but on the internet, people are buzzing, talking about these .alks that started yesterday now over 19 hours of talks. the press not allowed on the premises. we are hearing that the talks continue and people have been talking about that. this is one of the top 10 trending topics on south korea's biggest search engine. one south koreans speculating, saying -- aboutpeople also talking the demanding of an apology for ing a south korean soldier
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. other people commenting on the frustration of dealing with north korea, saying -- korea is, north well-known for this brinkmanship , diplomacy, raising the stakes to fourth dialogue not only with -- to force dialogue not only with south korea but also the u.s. let's find out more after the break. we are headed to mumbai. ♪
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15 -- 53we have about minutes to go before the boc
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gets underway in mumbai. saying that the rupee could outperform asian peers because it is less exposed to china. good morning to you. >> good morning. before i come to the rupee, i want to talk about what is going on as far as the equity morning -- markets. we have seen a wave of selling in global stocks as the chinese economy and the engine is being stalled. the actions of the central bank have threatened to derail world economic growth and spark a currency war. massively onling friday. the biggest single-day sale. monsoon for the month of august indicating a 10% deficit.
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macroeconomic indicators have continued falling. despite all of this, they are confident to achieve 10% growth. despite what is happening in china and the u.s. equity markets, somewhat good news. forecasters saying that the indian currency will outperform its asian peers. it will benefit from plunging commodity prices, which have different below the $40 mark. the best total return in the region, according to bloomberg surveys. amongst theeast fragile currencies since china on august 11.uan rishaad: thanks a lot for that. boc in mumbaie
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and what happens next to the rupee. forghai erasing the losses the year. let's have a look at what we have at the moment. abouto date, just down by .1%. we did have a decline on the year of about .7% at one stage. broad-based weakness that we had seen. taiwan as well. the biggest fall we have seen for the taiex since 1990. we have recovered from the worst of the day. we were 7% down at one stage. what we do have is regulators there tightening up on shortselling. that has proved to be more of a hindrance than a help. x down 10%the topi from the peak that we have had this year. a gain still of about 8% this
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year, but down 10% from the peak we saw earlier. take a look at the bloomberg commodity index. it has not been spared either. the lowest level that we had seen since 1999. down 13% in the 30-year view. 16-year low for the bloomberg commodity index. before we leave things, ompton" isoutta c topping the american box office for the second straight week. the film about nwa earning more than $111 million in the theater. the film receiving largely positive reviews despite criticism that it is a portrayal thate controversial group is a sanitized one. stay tuned for "asia edge."
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and you will be joining me as we recap the big stories of the day. there is only one story -- the carnage across the asia-pacific. we are asking if there is any relief out there.
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rishaad: victory harbor at the moment. we are seeing pretty much a stock rout across the asia-pacific. this is "asia edge." ♪ a look at our top stories. the fear is that. -- is back. stocks erasing more than half $1 trillion that start of -- the start of the day. the bloomberg commodity index
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the lowest since 1999. and west texas below $40. futures in their longest slide for three decades. hour, also coming up this marathon negotiations continue between north and south korea as kingdome -- as kim jong-un turns up the heat. powering down. toyota takes a hit in tokyo with confirmation its biggest chinese plant will remain closed for at least two more weeks. plus, banking on streaming. softbank in charge of netflix distribution in japan beginning in september. those stories and more in this monday edition of "asia edge." falling off a cliff. what do you want to describe it as? it is the view across asia. below is close since april.


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