Election. It is know what you think of our top stories. Follow me on twitter at rishaadtv , include trendingbusiness as well. Singapore, taipei, and kuala lumpur just starting up. We are looking at asia extending the global rally that started on friday. This follows the massive session into europe, carried into the middle east. Oil had a decent bid just coming off that. Raising oil for asia. Were looking at substantial downside for three Health Care Providers. The government is saying they are aware there is sick growing list there is a growing of Health Care Providers looking to jack operates. Over in japan, let me show you what is happening, 1. 2 . The yen is getting whipsawed today. We are closer to 104. One specific group of stocks, have rallied quite sharply in the past few weeks. A lot of this comes down to what has been happening in the bond markets. You have these yields on the longer end of the curve now back to the highest level since march. The two year is not budging. It is seen as helping the Banking Sector there. 62 out of 80 or so banks right now. Back to the currency markets. I mention the jobs number on friday. September likely not going to happen for the fed. It is a complicated conversation, but look at the moves in the fx markets. Dollar weakness, kiwi on the way out. Way up. China, g20 summit in leaders warning and being warned that are rising tide of protectionism is affecting growth and recovery. Who is making these comments . Everyone from the imf to the wto to the oecd, policy makers are using the g 20 summit as a venue to voice those concerns over rising protectionist measures around the world. I spoke to the oecd head as well as the wto head, and they both warned about the negative impact of protectionism. Take a listen. A trade is no longer locomotive of growth. Lagging likeally investment, so no surprise why the World Economy is only growing at 3 , even below the rate of growth precrisis. Trade in general is a positive for the country. Deal with those forces of unemployment with antitrade measures. You will be shooting yourself in the foot. Christine lagarde has warned that we could see the lowest growth year since the Global Financial crisis. Of the g20 communique obtained by bloomberg did mention that leaders will talk about the equal importance of fiscal policy and Monetary Policy unordered to boost growth. This is the second and final day of the g20 summit, so we are expecting several closed meetings followed by a wrapup statement by chinese president xi jinping. Actually, we have shinzo abe and xi jinping expected to hold talks, the first in a while. Shery yes, it is. It is a closely watched one. We are seeing growing bilateral detentions because of territorial disputes in the east china sea. Sources are telling us that willo abe and xi jinping have a formal sitdown instead of just a handshake. Now we are expecting an actual sitdown. Beijing has taken more assertive measures, sending more vessels near these islands that are controlled by japan. The latest tensions have not impacted trade between those two countries or dented chinese tourism to japan, which has seen the largest number of visitors in july, a Record Number of thesers in a month, but challenges in bilateral relations and political tensions complicate the outlooks for the two countries when both of their economies face challenges. Rishaad thanks a lot for that. Right. Samsung giving itself two weeks to start replacing galaxy note 7 s after announcing a recall. It realized it needs to move quickly on this. There were two clear things at stake, the patience of their their brand and really trying to keep that intact. By issuing the twoweek deadline to recall 2. 5 million galaxy ise 7 smartphones, samsung trying to show it is on the front foot and will do whatever it takes to protect its brand and keep its customers happy. Helped by the market. We are seeing samsung shares track higher, up by. 1 . Compare that to those of the samsung sdi shares, the company that provides 70 of the batteries to samsung. They are down by almost 2 . They didnt quite sharply on the open, off by 5 . Recall is behind the that there have been at least three reports of batteries overheating while charging, causing the smartphones to explode. The korean Economic Data reporting that some sun has stopped ordering batteries from sdi. The timing could not be worse for samsung. It occurs just as apple is to release iphone seven and comes ahead of crucial backtoschool demand. The recall came from the top, and the head of the Mobile Division has labeled it heartbreaking. It is difficult for me to specifically comment on the loss. I can say it is a large amount that is a pain to me as well. Made thisss, we have decision because customer safety is the most important issue to us. Analysts put the cost around 1 billion. It is less than 5 of samsungs projected net income of 20. 6 billion this year. Our analysts at Bloomberg Intelligence say the longterm impact will be minimal. Consumer reports has told us that the greatest threat is Customer Loyalty if no further guidance is given from samsung. Wait orearly adopters has this recall affected samsungs early lead over apple, set to launch its new iphone later this week. Rishaad indeed, that is coming up on the seventh. Do tweet us your thoughts using rishaadtvand include trendingbusinessas well. Some other stories we are monitoring for you today, here is around that. Itsanjin shares sank as receivership filing was accepted. They asked for a plan by november 5. Since the fell 30 company applied for Court Receivership. Filed for bankruptcy protection in the u. S. As of sunday morning, 68 vessels were stranded or import. Its part worries about deliveries ahead of a busy shopping season. Of armks acquisition comes into effect today, adding to their debt load. Is 150 billion, five times adjusted earnings according to moodys. Increase abouty 5. 5 times would be a downward trigger on its by you wish in. At also says softbank banks leverages rising more than expected. Softbank share price is rowling rallying. Japan has called on the u. K. To make its exit from the European Union more predictable. Japan released a 15 page document on its Foreign Ministry website voicing concerns about the uncertainty and lack of clarity surrounding brexit. The document underlines the importance of financial passporting to u. K. And japanese banks. Thats the ability to freely sell their services across the eu. Rishaad right. Later in the show, Southeast Asian leaders welcoming president obama one last time. Watching thers reserve bank of australia closely. Glenn stevens making his final call it tuesdays meeting. We will go over to sydney for more. Rishaad a quick check of business flash headlines. Saturday arabia will consider the Japanese Stock Exchange for the listing of saudi aramco. Theces telling bloomberg offer was made well the deputy crown prince was visiting tokyo. Onhuram rajan stepped down sunday. He said multiple layers of scrutiny from entities that dont have technical understanding will only her decisionmaking. Insold the biggest overhaul history, switching to inflation targeting and pressuring vendors to reveal bad debt. The initial challenge for urjit patel will be to tackle accelerating inflation and slowing growth. Lynn stevens will be hosting his final policy meeting on tuesday. Glenn stevens will be hosting his final policy meeting on tuesday, expecting to hold at 1. 5 . Traders are pricing in a 50 chance of further easing as they wait to see if the fed hikes this month. At cmc iset analyst in sydney. But he hasxpected, left his mark on australia, the economy, and the rba. He has. People would say that he has been one of the most Effective Central Bank governors around the world in the last 10 years. He was responsible for some very aggressive and successful action out of the Global Financial crisis when he cut rates aggressively. Legacies is his communication. He is a gifted if laidback communicator, varies the sink and what he has to say. Sisi something they are very short and to the point, but with all the information you need to know and the same applies to the ministry. A central bank others could learn from. Theaad he talked about limits of Monetary Policy and how it was not as effective as it used to be. It is a theme echoed in the g 20. It is. I think Glenn Stevens has been consistent. The rba has been reluctant instruments in stimulus. His clear view that the fed should get on with the job and the time is right for them to make the next rate increase, which will have the benefit of taking some of the pressure off our reserve bank but other Central Banks around the world. Rishaad i mentioned the g20, and the theme is to get the Global Economy growing again. With all the stimulus out there, what would happen if we did not have it . That is the question. It is. It is a question we will probably never know the answer to come up but that is the core of the central bank debate, isnt it . Here would we have been if they had not acted. Have force politicians to act more to introduce reform. Would have lessened the risks that now face is because of extreme centralbank stimulus. On the other hand, as we have seen at other times in history, without stimulus, the human costs can be large in terms of high unemployment rates and adjustments to economys. That 3 going on about growth rate, is that why you are reducing your exposure to equities because you think corporate profits are not healthy looking down the road . Is one of the reasons. We are in a situation at the moment where the bullish scenario for equities probably only involves modest increases and general sideways movements based on the fact that valuations are very high. They do incorporate large couldate interests, so we keep drifting higher, but the risks look larger. There are significant risks in europe with the european banking situation. It is uncertain how markets will react if we see higher rates from the fed and other places. Favorite lightening your exposure a little anyway. Rishaad how does this alter your strategy . There are many moving parts, not the least of which is on the commodity side of things. , we are in one of those situations where it is difficult to take a broadbrush approach to commodities. Commodities are in different places of the moment, so you have to focus on particular areas. If we were to see u. S. Dollar strength, which i think is likely more or less over time, then that would be a negative for some commodities. On the one hand, oil markets, are headed back towards a balanced situation and will get support. , wehe other hand, iron ore will likely see the surplus of supply get worse over the next year or 18 months and there is downside risk. You would have done well on the oil market if youre buying it at 41 and selling it when it hit 47. You could make money time and time again by doing that. Thats right. I dont think it is too early to stop doing it. I think oil is generally going to be in a range of 20. I think what oil has got going for it is we do have visibility now on a return to a balance. Is uncertain. It depends on whether you think the market will grow at 1. 1 Million Barrels a day or 1. 4 Million Barrels a day, but essentially it is growing back into balance. That means if we get to around the bottom of that range or a thebelow, i dont discount possibility of u. S. Dollar strength and inventory related pressure getting us into the high 30s, but between about 36 level to be going back to the well and buying upper 40sing in the and possibly demented to upper 50s if you have a long enough time frame. Rishaad we have to take a break here it hong kong seeing a record turnout in its first election since the democracy protest two years ago. This is bloomberg. Withad you are back trending business. Going on in hong kong as voters turnout in Record Numbers. The first election since these socalled occupy protest two years ago that saw student protesters clash with police. Votingurnout, people will past when the polls were meant to close here. Thats right. They kept the polls open in some places because there were huge queues and not enough polling stations in some of the districts. When you look at the numbers that have come back, it is reflection of the politicization of hong kong after the occupy protest two years ago. Tose protests are thought have failed because they did not manage to get any concessions out of the Chinese Government on Electoral Reform, but what they did do is let a size a whole generation of people, and what we are seeing are younger people coming out and voting for younger parties. Rishaad what are the surprises and indications . We have not action got any results yet. Is ahift we are seeing shift away from these traditional and democratic pro democracy people towards a more radical people. It does not look like any of those candidates are calling for independence from china will get in. We have got a lot of the younger socalled local list parties that are pushing for what they call selfdetermination. Selfdetermination in this case would be voting at some point by hong kong people about hong kongs political future after the high degree of autonomy which has been guaranteed up until 24 7. Rishaad a lot of people saying that is being eroded at the moment. Us about the blocking position that there is here. One of the things the pan democrats have is the government cant make any changes to the basic law. The means they cant foist Electoral Reform package that beijing wanted to introduce two years ago. This is a package where basically beijing vets who the candidates are. Looking ataintain the numbers that blocking position, which is key for them. Rishaad thank you very much indeed. Coming up, two months of kong for the yuan could be coming to an end. Building up selling pressures there. At our toplook stories, g 20 leaders warned about protectionism. Debby keough and oecd saying trade is suffering and posing a threat to the World Economy. The oecd said more than 1000 protectionist measures have been passed since the financial crisis. China and the u. S. Agreed to cooperate to drive growth. South koreas biggest container shipping line plunging. s lenders have found restructuring plans insufficient after filing for Court Receivership last week. Has 68 vessel stranded at sea and imports as well. Samsungs recall of new smart phone will not be cheap. Estimates compiled said the decision to replace the 2. 5 million devices will top 1 billion. Catch batteries that can fire and explode. The timing could not be worse with the iphone seven due out later this week samsung sang the estimated costs is heartbreaking. Markets, korea, shanghai starting off this week. Heartbreaking. It is basically a morning worth of sales for samsung. Broader markets looking like this. We will be watching the philippines closely. Acre shareholders planning to the vast his shares. Jobse looking at a post u. S. Rally right now. The u. S. Dollar on the back foot right now, helping sentiment right now. Al and gold on the way up little bit of the moment. At 104. En roughly go, 103. 87. , thatsese renminbi where it is trading. There is an ipo we are watching closely right now. Construction,e there we go. Trading debut on limit up regardless of price. That is one thing we are. Atching have a look at japanese financials. It is seen as helping the margins of a lot of these japanese lenders when the long end of the curve goes up. You are looking at an expansion and margins there, up 2 right now. There we go. 71 out of 82. This brings me to the next story, bond markets, 30 years at the highest level since march. The 10 year might turn positive today. Has the longest losing streak since 2007. Ahead of what the boj is expected to do in recalibrating their policies for the economy. Have a look at the three stocks we are watching in hong kong. China, the other two casinos as well, more gambling stations. For 100 whenized it starts operations, 25 next inr, and the other 20 50 january 2018, a positive surprise for company shares. Rishaad chinese currency data suggesting the yuan could resume his deep appreciation trend ones the g20 gathering is over. What is the thinking here . Statements in the last hour from the chinese and u. S. Sides following the meetings in hong trail in hangzhou. Hasrding to china, the yuan no basis for continued appreciation against the dollar. The data suggests otherwise. If we bring up the chart, we can in the runupps to the g20 here, the pboc and authorities in china have been trying to keep it stable. They want to deflect any chance of criticism of its currency policies at the g20. Dont want to give its trading partners any excuse. What you are seeing is basically fairly clear evidence that any time the pboc has strengthened its fixing rate by more than 3 10 of 1 , the currency immediately erases those gains on larger than average for him intraday. More headlines here . Rishaad more reverse repos taking place. They are trying to free up the system and liquidity. To come back to this real quickly, this chart shows pent up selling pressure. It suggests two months of relative calm could end after g20. , august 3,ed dots august 11, august 17, basically following stronger than average fixing rates of at least 0. 3 . Of those occasions, we saw immediate spikes in volume and selling pressure. Basically, a lot of analysts are using this kind of intraday volatility, intraday movement, as better evidence of trader intent rather than the distortions that could have been caused by the fixing. Move. D the fed likely to basket. Have this sdr how does this affect depreciation, if at all . They want to keep it stable ahead of the inclusion and internationalization of the renminbi. If we get further weakening data for the china economy, a much tighter approach from the u. S. Fed, you could have more volatility, more outflows, more downward pressure on the yuan. However, most analysts we surveyed, the median forecast calls for a 1 decline from now through the end of the year for u. S. S. Dollar yuan and dollar and yuan, so not a lot. Rishaa