Leadership. What you think of our top stories. Follow me on twitter at rishaadtv, and use trendingbusiness as well. Haidi waiting for governor corona. Kuroda. Rnor c the boj do inf the next couple of hours. It looks like we have given some back, the nikkei 225 down. A big, ugly print for august trade numbers. Could the boj take that into decision as they make that decision today . Giving back gains, kiwi stocks as well. Trading flat at the moment. Weakness from singapore, malaysia, and taiwan open. Sydney stocks rebounding, a nice gain and leading the region higher. In the last few minutes, we are seeing a little move to stronger 101. 76, but still pretty much range bound. Volatilityied spiking in the overnight session as we tend to do a head of boj decisions. We have had that reaction ahead of the last three meetings. Absolutely. Investors anxiously await that policy decision. Some disappointing august trade data. Data,start off with this imports and exports show this losing streak. What on earth is going on here, david . Exceedingwe call it, expectations to the downside, a horrible set of data for august. Exports down for an 11th straight month. It does not tell you that part of the economy is firing on all cylinders. Imports down 17 . 11 drop in exports, 17 drop in imports. Japan imports a lot of its energy needs. Up. And oil imports were ,e had these comments out basically saying a lot of these big japanese exporters are concerned over the japanese yen and the weakness we saw up and tell early this year is not sustainable, so they are not exactly scaling up capacity in japan. Exports a lot of capital goods. It imports Raw Materials and the next for the stuff out. When you look at the import without lng and oil, that is a bit worrying. Well, i guess it is what is going on behind you at the doj. As to whatany hints they will be coming out with . David thats right. To in recent talk weeks seem to suggest they are looking more at taking rates down further into negative. The governor and Deputy Governor week,ome out, both last acknowledged inc. There is a side effect to taking rates down further below zero. They are alluding to the fact that the banks are getting hit. Which is why when you look at the markets, youre seeing the yield curve stephen. Steepen. There are so many permutations to this one. That doesnt even include that anything they do, the fed can undo in 12 hours. Thank you a lot for that. Right, lets move along and have a look at what we have gotten in terms of this boj decision of further intoove negative rates may make japanese lenders the latest big short. We are looking at that story later on in the show. Toinas have agreed merge their listed divisions, creating an operation that could rival others. Tom mackenzie has been looking at all this. Run us through the details here. Tom we are talking about chinas number two and number six deal makers steelmakers. Swap ofe done a share their listed units. As the first up in a merger that would create chinas largest dealmaker steelmaker. Market value of the two Chinese Companies would be around 16. 3 billion as of the end of june billion, so 17. 2 not far off. The president er said he wanted to reform the state owned enterprises, particularly the steel sector, which is suffering from overcapacity. The government has pushed to create what they call state champions. That all be noted parties involved are saying that talks are ongoing, discussions continue, particularly our round the regulators, but this could be the First Step Towards a significant restructuring in the steel sector here in china. Are we likely to see more of this sort of thing when it comes to the Steel Industry there . China wants to create a giant steel operator and producer in the north and the south of the country. Question, theour answer is yes, but it would take some time. On tuesday reports and Chinese Media that two other big steelmakers, the fourthlargest could be tying up with another steelmaker. The largest chinese steelmaker is listed in hong kong. We saw its shares rise on that news. No the parties say they have more information to give us at this stage, but that was be another step towards restructuring that the Central Government wants to see. Improved steel have this year, but producers say it will be tough times ahead. Last year, china produced 800 million tons of steel. Resultedlt, that has in pressure from washington and brussels on beijing to rein in what they say is the dumping of steel impacting negatively the markets they are. Beijing says it has already 150ed pledge to cut million tons of excess steel capacity by 2020. Rishaad thank you indeed very much for that. Right, a look at some other stories we are watching. A are kicking things off with white knight for a troubled japanese company. Rosalind possibly. Takata has received five by out heads. Uyout bids. Out takata aims to shortlist 23 candidates. Of wells fargo came in for a grilling on capitol hill. He testified before the Senate Banking committee after a review found 2 million accounts had been open without customer authorization. Senator warren told him he should quit and called for a criminal investigation and more accountability from the banks leaders. You havent resigned. You have not returned a single nickel of your personal earnings. You have not fired a single senior executive. Accountableion of is to push the blame to lowerlevel employees who dont have money for a fancy pr firm to defend themselves. It is gutless leadership. Rosalind he told lawmakers he was deeply sorry and detailed a fiveyear timeline. Wells fargo says its internal review has expanded and is contacting all customers to ensure accounts and credit cards are products they need and want. A million note seven replacement devices have been shipped in the u. S. The company is rolling out an update for new phones, which has a green icon to indicate that users have a version with an unaffected data re. Samsung has an unaffected battery. To company moved swiftly recall and replace handsets that overheat and catch fire, mainly in korea and the u. S. Shares are rising. Rishaad right. Still to come, find out how alley bomblets alibabas finance arm is growing so rapidly. Just ahead, counting down to the boj latest decision. I will ask our next guess if he thinks there is a surprise in store. This is bloomberg. Rishaad right. I look at the trading day. The much boj decision, then nikkei and yen, awful trade data. I moved to the downside there. A quick look at the latest business headlines. Arm,bas financial probably worth 75 billion. That is the parent company. It is about 5 billion more than goldman sachs. It is expected to become a 100 billion business in two years. They are funding and ipo in hong kong next year. Additional 40an billion of stock on top of an existing 40 billion repurchase program that it is planning to finish by the end of the year. Microsoft has already raised its quarterly dividend. Having a look at the stock, jumping almost 30 in the past year. Option traders are betting on a hkex. On shares of contracts to pay out its a shares near its highest level since june of last year. The stock reaching a record in may, but went on to lose 50 when markets crashed and trading dwindled. Lets get it to tokyo. David is our man on the ground there. I believe you have mr. Ed rogers with you, david . As a matter of fact, i do. Lets talk with him right now. We are right outside the boj. Are expecting their latest policy decision a few hours from now. There is a lot of uncertainty over what can happen. Two questions, what should they do and what do you think they will do . The second question is probably the more interesting. Ist we think will happen relatively little in the shortterm. Has done a job of creating the environment , and they havege taken a lot of actions as far as qe2 create the right environment. What can they change today . Incremental at best. What needs to happen Going Forward is the far more interesting question. We think the policy discussion is about the structural change at a societal level. The boj has change the structure fxwhat effects dollaryen. This is incredibly impactful. That, maintaining the structure of dollaryen Exchange Rates. Going forward, we need to have a dialogue about structural change aneating and him environment that leads to that 2 inflation. He boj cannot do it on its own they are also coming out with the results of this policy review. I think that will be more interesting. What you looking for . The boj needs to walk a fine line between shouting to politicians or strongly stating can,ve done what we politicians you should do your thing, before quietly murmuring thinking we can make more incremental changes on negative Interest Rates or things like that. At some level, that is the dialogue. This assessment will be one of the tools needed to have further dialogue about structural change. Everything goes back to that. The boj in and of itself have fired most of its bazookas and willingness to take radical steps. Those radical steps taken two years ago now need to be by matched by more radical steps in the political environment. David are we talking fiscal stimulus . , there isstimulus cash and a willingness. I think there is an interesting dialogue to be had about has that money been wisely used in the past. Certain sectors of the economy such as the Asset Management industry, Financial Services, you could have much more impact in the supplementary budgets if you were directly supporting new businesses, creating new jobs in this space. The japanese government certainly has the money to do that, but they have not reached political agreement to do what the singaporean or Hong Kong Government does, which is to attract new types of businesses to this country and create new jobs in Certain Industries that will grow, and then you have a multiplier of fact, people paying more taxes, people Getting Better jobs. When you look at a country like japan, i find it hard to see what the pillar of the economy is. When you look at the u. S. , it is consumption. What is that pillar in japan . Are historical pillars, and then what do you think we need to have Going Forward. Historically speaking, cars, consumer goods. The Overall Economic sense, maybe 3 of the economy. These were things that permeated japan, japanese society, japanese economy. Those old pillars of growth are still there. Ability of at the the japanese to create cars, consumer goods. David the success of what you can do here yes and no. At the high end, the japanese still produce some of the highest quality manufactured goods in the world, and for things like the smartphone, that is very important, and the Exchange Rate irrelevant. Think about samsung, phones exploding, catching fire. The phone part of samsungs business. You cant the associated with that sort of problem in the modern consumer world. Japanese companies have a great history of providing highquality products. What they need to do is change the product mix. Machine tools and drop some of the focus on agricultural for example. David how do you think the market is going to digest this . Save the boj and fed dont move, what will happen . The markets are nervous, jittery. Investors are moving to cash for a number of reasons. They are concerned about the u. S. Political cycle. You might as well sit on the sidelines in cash because you are afraid no matter what it will not be the outcome you want. The same thing here. I think more and more people are sitting on the sidelines. I dont think we will see any announcements that move markets dramatically from the point of view of what the boj will say, but the boj combined with the and u. S. Eserve elections, you will see some huge volatility before the end of the year. David ok. Thank you. We will get more clarity. Rishaad thank you. Next, a chinese billionaires plan to release his property business in china, proving to be tougher than he thought. Details on the way. Rishaad dalian Wanda Wallace dalian wanda dalian Wanda Wallace wang jianlin faces hurdles ahead. Go now . Es mr. Wang back to china go for the listing of the property unit. It is in the process to go back to china. Rishaad there are a lot of Companies Keen to list their, why so many . Stocks, i meann in china, i mean have been trading it really highvalue asians. Then, i mean, the process has been i mean really, really long. Like forfivees years to list in china. Rishaad that is a risk isnt it . The timetable for them as two years, so its pretty aggressive. Rishaad he has also promised her that things should he list again, and those promises could be in danger. The agreement between wanda and investors that support the privatization, so they have to list in china in two years. If it does not happen, i mean wang has to pay back to those investors as much as 5 billion. On the otherng up side of the break, a look at negative rates in japan. What they are doing is squeezing margins. We will be live taking a look at how bad things could get for local banks. Kong,rket open in hong shanghai, opening numbers coming your way as well. ,ust looking at the premarkets down a fraction here in hong kong. Rishaad our top stories, the data fromjaiteh japan disappoints, imports and exports continue their losing streak, exports dropping for an 11 straight month, while imports a 20 straight month decline. Data coming hours before the boj policy meeting winds up with markets waiting for its review of strategy. Steelmakers, a union that would create a larger company. The two will swap shares. The president of china wants to reform the state owned enterprises to deliver up those to the economy. Wells fargo ceo john stumpf criticized by lawmakers. He was questioned after a review found more than 2 million accounts had been open without customer authorization. Senator Elizabeth Warren said, you should quit. She called his leadership as gutless. Off the starting session, but it is about the boj so far. Unsurprisingtirely given the pent up expectation building ahead of this boj rate policy review as well as the Rate Decision coming out over the next couple of hours or so. A lot of investors sitting by the sidelines, lowvolume, but this is what were seeing in terms will what is happening. Of sydney, uput by. 3 , but off session highs. That rebound in oil prices helping Energy Shares and industrials. Elsewhere around the region, looking pretty grim when it comes to Greater China markets, some downside to hong kong markets. Shanghai flat at the moment. Declines, extending also weakness from taiwan and southeast asia, singapore down by. 3 . It is wait and see and till we get something coming through from the boj. That, we willer potentially get a whole new picture when it comes to what the fed will do. A look at dollaryen, range bound. Over the last couple of sessions, not too much in huge moves. Some Dollar Strength earlier. That has come off. We are at 101. 65. Get that ahead of every bank of japan meeting, and this time it was not any exception to that either. A quick check of oil prices. That rebound for wti. We did have that inventory report. It showed quite a massive drawdown in terms of that report, and that does load well for the report coming out in a few hours in the u. S. Session. It is showing essentially the same trend. Also, rumors that opec could turn its informal meeting into a formal session next week. A quick look at some of the movers today. It is focusing on the japanese session. Some names making headlines for all the wrong reasons. Takata dealing with the massive , affecting also some automakers as well. This has resulted in casualties and deaths. They have received five bids for the company, kkr among the suitors as it tries to address mounting liabilities related to the massive global recall of its airbags. Sharp close to session highs, reportedly upgraded sales forecasts, but no confirmation as of yet. That is what is driving those gains in sharp. Up. Ung electronics u. S. Exchange program, 500,000 units of the note seven. Investors probably feeling better with how things are. Finally, we will be watching the japanese banks. We are seeing some downside. Some Smaller Banks down. If these rumors that we may be in negativeher cut rate policy, expect to see a reaction when it comes to the financials, which are already dragging tokyo lower today. Look at the boj in more detail, negative rate make japanese banks the latest short, traders betting against local lenders, saying many could go bankrupt soon. We have more analysis here. What is behind in negative view on the industry there . Interestn to these rate margins being compressed . That is certainly part of it. It is no secret that japanese banks face a difficult environment. The population is declining and aging at rates not seen anywhere else in the world. Rate policy is squeezing margins and making it difficult for them to make returns on deposits they hold. They have done some research on a piece of legislation that came in 2009 that force the banks to adjust terms on loans to small and Medium Enterprises and homeowners. A reportingcaused issue with nonperforming loans. Put all that together, and the idea has been to short the banks. Rishaad i will not pretend to are,the thoughts they begin me an idea of the profitability of the strategy and how it has done so far. It seems to be working for them this year. They made 14 return in the year to august, comparing to the broader index, down 15 . Index was down 28 this morning. In a falling market, the strategy seems to be working. At the moment, they are doing nicely. The banks have not all been down. I guess it is all down to timing, but they seem to have it right at the moment. Rishaad past performance is no guide to the future. What are people saying about their performance in the future . It is anybodys guess. Banks have been driven this year by centralbank policy. It has been expectations which will help the bank driving share prices up, and expectations like this morning with shares down again that perhaps the boj is going to deepen those negative rates, which would be bad for banks. It will send them downward. We are watching the boj closely day to watch and see what happens. Ri