Follow me on twitter. Dont forget to use the hashtag as well. Hong kong underway in 30 minutes. Singapore and malaysia are online. Shery stocks are rebounding from yesterdays losses. We are seeing positive sentiment from wall street as a result. U. S. Stocks are gaining on a bit more positive. We are seeing the asx 200 gaining 3 10 of 1 . We have australian trade deficit numbers this morning narrowing more than expected, coming in at 2 billion instead of the expected 2. 3 billion aussie dollars. Also, the july trade deficit revised lower. Down 6 10 ofalls, 1 . Leading the gains in asia, the nikkei up a tense of 1 , being held by a weaker yen. The cost yield up for tenths of 1 . Take a look at the japanese yen. Although it is not doing much, this comes after weakening for seven consecutive sessions. Right now, holding at 103. 47. Also, analysts say we are going to see more u. S. Dollar strength, so we could see a japanese yen wakening, especially before the december faos fomc meeting. The, one follow thing to follow, the korean won, strengthening 3 10 of ones to percent, but this is after weakening for five consecutive sessions. Of course, south korea still in the green, as we see samsung stock is searching. We heard from activist investor elliott that we want them to split the company and modernize the conglomerate. Rish. Rishaad Samsung Electronics shares hitting record highs. What exactly is being proposed . Letter to thes a board of samsung, about 10 pages long. It is also on our website. You can take a look at that and the full contents are there. What it essentially does, it starts out by pointing out the fact that when you look at shares of samsung, typically they trade at a massive discount. 30 to 70 is what the letter said. Were basically meant to address that. In fact, i think we have a small portion can we get that graphic up, please . Here we go. It is a plan designed to address that safe evaluation gap between samsung and its peers, yada yada. Discussed. Ngs were have a look at the three main things that we put together here. First, if you split the company into 2, 1 is a holding company, the other is an operating arm. Lives that are operating arm on the nasdaq. Onlift that operating arm the nasdaq. They are basically saying samsung is not need this much cash sitting on its balance sheet. But samsung is a very different company. Samsung is also getting more bad news with the note 7. This is after those had been recalled with some of those phones. Right. One samsung found caught smoke overnight. It is Southwest Airlines in louisville, kentucky, right before takeoff. One of the passengers of the phone had the phone in his pocket area it started to heat up. It got too hot. He had to throw it out. Based on what the owner said, it was already a replacement phone for a radius note 7 that he had. Previous note 7 that he had. The rate the airline is unable to confirm the exact model. There is no fire, no explosion, but indeed there was smoke. As a result, the plane had to be evacuated. Ask you,but they before you get on the plane, do you have a note 7 . I was asked that twice at the airport. Howng is, in order samsung responded . A short statement from samsung, because they themselves are not certain what the model was. Until they can get more details, they are working with investigators. We will have a look at this. What they are saying is, at the moment, there we go, we are unable to retrieve a device. We cannot confirm. We are working with authorities. Stay tuned, in other words. Rishaad thanks for that. Shares at record levels. In the other direction, twitter shares sinking an extended trade. This after a Technology Blog reported that google apparently is not interested in buying the social network. This is not the first time google has been linked to twitter. Reporter thats right. Google has looked at several times in the past at buying twitter. , according to region of according to recode, that will not buy this time. Theyre also saying that apple is likely to come for twitter as well. Salesforce and disney have also retained bids, which could come in the next several weeks. Disney ceo spoke in boston yesterday, but declined to comment on speculations. Twitter had the recorder earnings up had thirdquarter earnings up in october. Twitter shares closed at 5. 7 higher on the new speculation about a takeover, but slid an extended trade. Rishaad what about a possible if mn. Rce, lets describe the current flurry around twitter. Salesforce shares slumped as much as 8 , ending down 5. 8 on wednesday. That gives you an idea of what investors think. Asked about aas possible deal, and he said, i think you will find that while i look at a lot of things, i actually pass on most things. Salesforce shares had losses after those comments. A note from ed mcguire. He says salesforce sentiment is near universally opposed to a potential 20 rack uses in potential acquisition of twitter. Saying note was issued, we remain concerned about managements concerns on acquiring twitter. Managements request to acquire twitter. Rish, some previous strong opinions on any potential bid from salesforce. Com to buy twitter. Rishaad thanks a lot. We are having a look at a fate worse than that. Death. Heidi has that. Reporter thats right. Rising debt levels are worrying officials that the International Monetary fund area growth in the nonfinancial sector has more than doubled in nominal terms since the term of the century. Since the turnofthecentury. The irs says current debt levels of worldrecord 225 gdp, about two thirds held at a private sector with the rest being public debt, which also increased to 85 from below 70 . Slow growth is making it difficult to pay off obligations, and the irs warns a cycle of low growth and leveraging. Japans economy minister says the government will eventually have to raise the sales tax again. 10 fromn increase to the current 8 will still not be enough to cut the Social Security costs as japans population ages. They will have to gradually raise it to 12 , 13 , and than 15 , and they will have to get approval. Not enough for the next move. We need to raise the tax to 12 or 13 eventually, or Social Security cannot be financed. We need an election to ask the voters. The sales tax fall is delayed until 2019, on concerns that the weak economy is unable to handle it. Goldman is said to be pulling lyons 300 million from coopermans omega advisors, after the former goldman of glory was accused of insider trading. This is according to a person with familiarity with the situation. Most funds will be liquidated by the end of october. Cooperman spent 25 years at goldman. He was head of Asset Management he left. He is accused of using his status as one of the largest toreholders to gain access confidential information, and using that to purchase securities of foreign assets sale that sent shares up. Thatfore an asset sale sent shares up. He says he is disappointed in goldman for not taking an independent decision, and says they are working the government for bad behavior. This is the second times that goldman has cut ties with the former along. Alum. Rish. Rishaad thanks. Coming up later on the show, a golden opportunity. Prices will hit a record in five years. Emerging markets are becoming less vulnerable to outside practice. Markets hitrging the highest level in more than a year. There seems to be momentum. Our next guest sees the developing nations growth stabilizing. He is an fx strategist at union bank. He is normally in london, but he joins us in hong kong. Thank you for coming along. Guest thank you for having me. Rishaad give us a synopsis of what is going on. Guest we are getting nervous, because we have had our full returns across the spectrum of assets, and we are going into the u. S. Elections, which has affect on emerging markets. We also have worries about what the fed will do and say in december, maybe even november. We are giving people an excuse to take some losses. ,ishaad at the end of the day a quarter of a point, its just a replica of what happened. Going into september, it did not happen, and it happened in december. History is repeating itself, essentially. Guest i think you are absolutely right. Really meaningless. The things driving the emerging markets are not what the fed will do, how rates will be kept, but whether [indiscernible] rishaad but what does that do with great differentials in mind, with europe and japan . Itst if they do this hike, pushes up the dollar a little happens, thenat you get inflation pressure in the u. S. To stay contained for longer, and of the same time inflation around the world is very low. That in a roundabout way contributes to an environment where rishaad on the bond yields story, in what way does this help emerging markets at all . Whename momentum and loss it comes to some of these emerging markets. This should be supported, in a way. Is. T i think it when you see bond yields remain low for longer, people think, ok, im only going to get 1 rather than half a percent. I need to pitch in to something higher. It. Aad thats its a common theme which comes out. When you mention the yield curve, the central bank of japan normalized the yield curve, essentially. But i feel to see how that actually sits with their other stated in unstated goal of gradually keeping with weakened currency. So. T i think it is a bit inconsistent. I think the kind of grasping at straws, and the straw that has been offered to them is, ok, we stabilize our turf, therefore we will provide support for the bank, and maybe the banks will be more generous. I think that is the thinking that is going on. But there are lots of question marks over whether that works. And lots of consequences, which could rishaad actually go against you. Rishaad rishaad what would go against you . Guest one thing that has been talked about is, you are essentially saying to the local banks, look, you can make money for owning elongated bonds in japan and funding longterm Interest Rates. The japanese say, ok, i am not going to put money into risky assets, i am going to do the local carry trade. If they do the local carry trade, thats actually frustrating. Rishaad but hang on. Rates are negative in the shorthand. Guest this is where the carry trade works. This is the shape of the check the shape of the curve. Is upward sloping, then there is money to be made from owning guns and funding owning bonds and funding from the short end, which is actually deflationary. Rishaad thats the point. Guest exactly. That is the collateral negative side effect. Rishaad Collateral Damage is what you are referring to. How does that sit then . I think japan is going through something much other countries may need to go through as well. Japanese are trying to decide where to go. I think the next step they could be taken, the next aggressive step there could be in between steps, but the next aggressive step would be to reconsider the 19th proposal, which is the fullscale helicopter money. Rishaad what about china . Are seeing signs of stabilization, but people are very concerned and remain more concerned about the level of debt. Guest it is a huge challenge. The amount of debt. And it is mainly corporate debt. It is large. However, i think people also a lot ofk that people are talking about, ok, what if they fail . What is it mean for growth in default rates . But what if they succeed, and it is it and is it plausible . There are scenarios a lotd absolutely, and of the mergers have been doom and gloom, havent they . Beginningolutely, the of the year, how bearish people were on emerging markets because of that. Look, its not going to be clearcut area lets remember its not going to be clearcut. Has a household sector which is relatively unlettered, and a Central Government which has little debt. Rishaad thank you so much for joining us this morning. Lets take a look at sort of the life stories we are covering. Fujitsu searching in the tokyo session. It may be merging its pc business with one note though. With lenovo. Takee told without a will a majority stake, that the two sides are still discussing we are told that lenovo will take a majority stake, but the two sides are still discussing shares. Searching in tokyo, they will buy a bermudabased rival. There is a 43 premium of endurance is, and is the companys biggest acquisition ever. It is hoped that it will help offset growth in japan. Search shares searching by oncent on tuesday 535 tuesday. Letting go of irans 340 workers. The moves pall mall and months of runins with the regulator and concerns. There were no small now focus on x next general sarah knows will now theranos focus on its next generation testing device. Hut and kfc pizza having a rough time after rows. Nist and the first quarter. The ceo says sales in china were down because of antiwestern sentiment. This after a National Court rejected beijings claim to the south china sea. Shales climbed about 1 , despite a forecast 4 gain. Yum brands plans to continue the spinoff of its businesses in china by the end of the month. Coming up, find out how walmart is pushing more aggressively into alibaba start. This is bloomberg. Rishaad we looked at walmart and its plans in china, boosting its stake in jd. Com. Moves intourther alibabas hallowed turf. Ceo Doug Macmillan says success in china is vital. Lets get more. Whats going on . Reporter we see ball mark doubling its stake in jd. Com, strengthening china. 12 cally, jb shares shot up. This was before the filings were disclosed. If you look at how jd is doing this year, not so good, down 13 . A lot of it has been driven by rising costs and that eating to their margin. Rishaad so why do this . Why is walmart investing in jd . Guest for walmart, a lot of it makes sense, because a lot of their shares in china have eaten into the online platform. Also, the slowdown in chinas overall economy. They really have to branch out and find more channels. Rishaad it is not an easy place to actually do business, is it . Thats the thing. Going in with jd. Com, that someone who knows the territory, i guess. Yeah, a a lot of hurdles, including scandals they face bribery. Also fighting with jd, who has more knowledge on the ground, yeah, a a lotbasically positios in a sector that is taking off does provide them with a lot of leverage. Rishaad thank you very much for a look at what is going on with walmarts chinese ambitions. Looking at other stories. The former portuguese Prime Minister is going to be the next human secretarygeneral. Unanimous backing up the Security Council this evening. It will be officially announced later this thursday. He starts work in january. The United Nations has more than 100,000 piece speakers deployed around the world. There is a budget of Something Like 13 billion or so. Democracy activist joshua wong has returned to hong kong. This is after he was denied entry into thailand. The Prime Minister saying that long was sent back at chinas request, and had flown to bangkok to address an event marking the massacre of a student protest in 1976. He has been drawn International Criticism for bowing to pressure from beijing, including the deportation of more than 100 ethnic people. Kong said to be defecting. It is all ahead of the units transfer to oc bc. This is after barclays announced it was sending its Private Banking operations in hong kong and singapore for 320 million. This exit is highlighting the demands for experienced wealth managers. Theill have a look at prospects of the trading day in hong kong and elsewhere. Lets have a look at their radar. This is the hang seng premarket, up 3 10 of 1 . Just taking a look at the hang seng stock, replicating that. Positivity there. Tailwindswe have coming through from the street of dreams. I a look at what it is doing. The nikkei getting a boost, approaching that psychologically and 17,000. We have the sole market and said the markets to the upside. Ul markets and Sydney Markets to the upside. An Australian Bank on apologizing for a scandal, but a is defending its actions in low growth environment. We will go to sydney with those details. That is next. Samsung electronics reaches an alltime high, after aliott singer proposed breakup of the company. Singers plan is to operate a holding company, and giving shareholders 27 billion in special dividends. This coming as we saw a note 7 smart phone causing the evacuation of a plane in the u. S. Twitter plunging in the session after a recode report says that google does not have current lands to make a bid. Recode also said that apple is interested. Be google is said to be working with an advisor on a potential offer. Shares in salesforce also stumped on reports marc interested. Benioff says that he looks at many things. U. S. Shares of jd. Com surging in after hours after walmart doubled stake in the chinese retailer. The sec. Iled with it now owns almost 11 of alibabas biggest rival in the mainland. Already heldiler 6 . In hong kong, no trading no trading in mainland china. Shery we continue to see gains in hong kong. The han saying is up 3 10 of 1 , gaining the whole week in the green. And of course, we are hearing from Hong Kong Financial regulators saying that they will more chains and will also look for more market manipulation. Page, when it comes to chairs, Chinese Companies trading in hong kong have it really well this year, and they currently and there could be more upside. Take a look at this on the bloomberg. Going to a case as hci index, you can see this kid map that shows on average, h shares have gone up about 5. 6 in the past five years. Right now, the gains for the months and around 2. 710. 2. 7 . We are seeing a week or want helping with us stocks. The nikkei up a tenths of 1 on a weaker japanese yen, which has lost ground against the dollar for seven consecutive sessions. We are seeing industrials and financial leading the gains. Take a look at the stocks that you need to keep an ion on here in japan. Sompo talking about holdings. 7 after talks with lenovo to merge their pc operations. Holdings still holding. We have been coming up with their fullyear earnings in the afternoon, so do keep an eye on that. Now, the japanese yen is unchanged, around 103. 50, but after weakening. Rish. Rishaad thanks. Dollar,into the aussie little changed despite a smaller than expected trade deficit for august. Lets get to sydney. Paul, take us through the numbers. Rish. D results, a 3 billion trade deficit for august, much better than the 2. 3 billion dollars which was forecast. The new