tv Bloomberg Markets Asia Bloomberg August 28, 2017 9:00pm-10:00pm EDT
announcer: mom :00 a.m. in hong kong on a monday evening -- 9:00 a.m. in hong kong on a monday evening. this is bloomberg markets, asia. rishaad: a dramatic escalation in the north korean missile standoff in hokkaido. shinzo abe and president trump are speaking on the phone. haidi: the rising tensions offense gold to its highest
level of the year. the yen strengthening as investors seek safety. rishaad: the u.s. oil industry facing more chaos as harvey gathers strength. they are facing a renewed threat. russell spencer of frustration at the u.k., saying brexit negotiations are not serious. michelle barnier wants more details. let us get to today's events right away. looking at this north korean missile test flying over the island of hokkaido, really unprecedented that we have seen a north korean missile flying over the japanese mainland. let us look at what is going on at the moment at this chart, 8092. it is telling us there is not much to be worried about. no one worries, according to this. this is a signal index, below average risks for the korean currency at the end of july. that bit still persists.
just going to tell you who does worried. investors, generally speaking. goldrecent move higher in -- announced that $1300 level. a near-term advantage, 1340 per ounce is on the cards. this has been further supported by early trade data showing a further strengthening after that korean missile shot over japan. that is what we have at the moment. looking at more upside for gold as investors fret and pile into gold and the yen as well. haidi: yeah, quite for to assist time for gold. -- quite for two iteris timing itous timing for gold. remember, it strengthened levels since november.
let us get the latest when it comes to the markets with sophie . we are firmly risk-off today. sophie: yeah. markets are sleepy. risk-off. we have volatility striking across the region. you have the kospi set for a second day of losses. would be the third time this month. inhave it falling 3.8% back july. korean bonds also falling out of favor a while we are seeing whether asian note climb. that rose as much as four basis points earlier this morning. that is the biggest increase since august 11. won is losing ground. that has surged. that is pushing up the yen and the gold. the early advance easing 108.84 here. it is gaining ground against these eastern currencies. more measuredd
trading for the yen after the initial move so far to date, and ish pointed out that gold continuing to build on 1300. we have merrill lynch saying we might see 1400 by next year given this thought fear we are seeing in -- bought fear we are seeing in the market. we are seeing copper rising along with the all -- with steel. copper extending its rally to the summer of 2014 and oil, that is rebounding after sinking overnight. gasoline futures are up for a sixth session. a look at what is going on in seoul. financials and i.t. stocks leading the drop, falling 1.3%. check out what is happening with aerospace and defense stocks by clicking into industrials on the map. we see this sliver of green when it comes to defense stocks in
seoul. this shows you some of those movers so far this mov morning. we have this up over 10%. this has served as a barometer of agitation on the korean peninsula on the back foot. this is the nations on the aircraft carrier, but we are seeing other stocks on the climb in seoul in tokyo, rish. events: this is to the from north korea as well as that missile. the united nations security council convening an emergency meeting, coming through. right. let us tell you who did that. that is a tokyo broadcasting service coming out with that. let us just have a look at the southern states of america. texas, particularly. let us get the first word news headlines. here is haslinda amin. haslinda: tropical storm harvey has gathered new strength and is
said to drench parts of texas and neighboring states. the full extent of the damage -- the amount of rain measured in feet rather than inches. harvey has crippled the energy hub with a quarter of natural gulf production -- production and refining capacity shut down. rex tillerson is planning to eliminate several special envoy positions to me president trump's demands for deep budget cuts. roles would of the be subsumed into other agencies. positions under threat include envoys for climate change and the iran nuclear deal. tillerson said his plan would advance america's interest. china has created the biggest power company on earth, approving the merger of a coal .iner with a generator it will have assets worth more than $270 billion and is seen as
an attempt to slim down china's bloated sector. the company will be called the national energy investment corp. 225 gigawatts could put it ahead of electricity for france and italy. the consortium including western digital have reached agreement on the sale of the joint venture chip unit. the deal is worth $18 billion in the nikkei is in review says western will contribute almost one point $4 billion. toshiba was under pressure from creditors to settle the deal by the end of this month. the western consortium includes ingj and kkr. in more than 120 countries, i am haslinda amin. this is bloomberg. haidi: thanks for that. north korea has dramatically raised the stakes with its
neighbors and the u.s. by firing that ballistic missile over the japanese island of hokkaido. it has been called unprecedented. let us get it over to brian fowler from tokyo. what has been the reaction, you know, a few hours on from the initial headline? what is the feeling you're getting on the ground? brian: there is definitely a sense of heightened escalations here. north korea has fired rockets it over japan in the past as recently as 2009, but in those cases, it said it was launching satellites into orbit, and there is no pretense of that this time around. this comes after north korea guam earlier this month. japanese authorities have assure citizens that japan is in close contact with allies in the u.s.. trumpe speaking with mr. and south korea. they have urged more pressure from china and russia in helping to reign in north korea's
defense operations, so there is that. aware ofjapan is also everything happening. it made the decision not to shoot down this missile because authorities determined very early that it was not headed for japanese soil, so they let it go. that leaves open the fact that this missile crisscrossed with the flight path of commercial airliners and ships and flew over parts of japan that are populated in the southern part of hokkaido. worry little bit about the possibility of something falling from this kind of projectile. we are getting these lines crossing the bloomberg now. shinzo abe thing you have spoken to u.s. president donald trump for 40 minutes on this issue of north korea. also saying the u.s. and japanese positions are completely together. have agreeding they
to increase pressure on north korea. these are lines coming through now. one of the interesting things is the timing, right? and the intent of this escalated publication, as to whether it was trying to split allies. what more line coming through. shinzo abe saying this complete agreement with the united states on increasing pressure on north korea. want to go back to camino, the missile itself, because from my understanding, there has been previous rockets that have taken the same directory. this is the first missile. how does that compare to previous publications? provocations?ious brian: there is no pretense that this is a rocket attempting to launch a satellite into orbit. this is a missile. it comes within the context of the previous provocations, the threats against guam, and the long-range missiles last month. it occurs as u.s. and south korean military forces are
conducting joint exercises in south korea and of course, that is an important part of this pure north korea fired a couple of missiles two days ago as well, and asked the un security jointl to discuss those exercises, calling them a provocation, which is a little bit ironic. so, there is no question in my mind that this was not any kind of commercial or satellite -related operation, but clearly meant to menace the community. the fact that they are flying this missile over the territory of the u.s. ally, certainly will put more pressure on the u.s. and its allies to respond. brian, a few more lines coming through at the moment. shinzo abe saying he wants to call on the chinese and russians to play a role with regard to north korea, on top of him saying he is in complete agreement with the united states on pyongyang. reaction out of the u.s. is fairly muted. what could be the fallout from
all this? brian: japan would like to see a lot more from china and there is the sense that china is north korea's major trading partner in the lifeline for that economy. could see some the from china clamping down on trade with north korea and taking it firmer line, that would assure japan, especially, and the u.s. as well, that we are moving in the right direction. thank you very much indy, brian fowler, inter give for us. still ahead, embracing a supercharged yuan, but is it purely a dollar story? guest says the u.k. remains a relatively attractive equity market. we have more from global growth, next. this is bloomberg. ♪
haidi: this is bloomberg markets : asia. i am haidi lun in sydney. i am a shot salamat in hong kong. the indian government has hired for bing banks -- four banks. citigroup jeffries and yes bank working on the offerings. two dollars $.63. $2.63. haidi: evergrande reporting profits that saw 250% lifted by a booming sales and prices. core profit was a fraction over $4 billion on revenue of almost $18 billion. evergrande has been targeted by short-sellers for its high level of debt. the stock has managed to jump 370 percent this year, fueled by share buybacks and plans for a
backdoor listing. rishaad: samsung is to invest $7 billion in china to meet surging demand for memory chips, spread over three years in its existing plant. it drove earnings to a record in last quarter. samsung had 41% of the market through march. more than double that of toshiba , which developed the technology. getting back to our top story for the markets, north korea firing that ballistic missile over japan. president trump and shinzo abe, these lines coming out. the un security council calling an emergency meeting. let us take a look at the ramifications when it comes to investors. here with me in sydney, great to have you. it has been a busy morning. we have a classic risk-off
reaction. the yen, gold, all gained. equities looking a bit off today. knee-jerkis kind of yet largely transitory reaction. be like that.m to we have seen a few events through that year, almost quickly forgotten by markets. is thatposed the issue this is being called unprecedented, right? do you wait and see? or is this the unknown that may throw off this buy everything rally we have had since the election? >> i think we had a few unprecedented elements, whether it be responsible u.s., the increasing range of the icy be, and north korea launching this year. the market has been relatively sanguine. my -- one of my colleagues was an seoul and the mood on the ground is that it
seems relatively sanguine. they have been under this cloud so long that it deals less unprecedented there, perhaps. rishaad: when you look through this, though, and you start to camino, wait until the smoke clears, -- what are you investing in? what are you finding attractive? and indeed, the reasons behind that? region, wein the have global portfolios of 20% investment in asia. primarily spread across three countries, korea being one. japan and china being the other two. across the region, it is a spread, accommodation of financials, at technology, tell close -- telcos. there are some global players in the region. some more domestic companies. some financials are local telcos, eurod the combination as well.
that is within the region. 40% of a portfolio in europe and north america. rishaad: it is interesting reading or research. you like companies which have a diverse portfolio, generally speaking, and diverse jurisdiction, so the spread of risk is wide. correct? peter: sure. that is fundamentally why we like buying undervalued companies. when you get a company that is attractively valued and also with a lot of risk profile, you get some of the diversification, whether it the a range of businesses, a range of geography, whatever it might be. that makes it more attractive. when you have got some of these big issues, political, geopolitical, that diversification does come home. ultimately, it is about finding stocks where the evaluation is not fully reflected in the share prices on the market today. haidi: we have been talking about this goldilocks scenario. in particular, when it goes to japanese equities.
you have got decent if not extraordinary growth. you have got the inflation seemingly lower for longer and therefore looser monetary positions for longer as well. isn't that kind of just a perfect storm for equities to keep pushing higher? peter: we are reasonably encouraged, i would have to say. the economic backdrop is positive. we are seeing global growth peerage europe is growing, u.s. is growing, and many of the asian economies are growing. that is feeding in through the better earnings. inare reasonably encouraged that sense. you have to be mindful that it has been goldilocks. it has been a very long-standing bull market. there is plenty of markets around the world where you have not seen the highs in the market. you have not seen them get to all-time highs. from a sectoral perspective, there are sectors under a lot of pressure for specific reasons. you have opportunities. for us, it is about going through identifying the individual stocks where that goldilocks is not necessarily priced in, or what the market is
still a little bit scared of earnings recovery and does not believe those earnings will come back. there is still significant part of the market were that is true. haidi: big question mark over brexit. harvey you trade on that? peter: we do not trade on things . we are very long-term shareholders. when the market presents opportunities, you have to take advantage of them. most of the u.k. holdings are multinationals, what happened to be in the u k whether you think the big oil companies or banks, vodafone, for instance, are also good will things with an hour portfolio. globale listed, but brands. you may get a very cheap price on the lse because of brexit going on, people disinvesting from the u.k. without looking to the fundamentals of this company, which are very much global franchises. there may be, as people get our bearish and have been increasingly bearish about the domestic u.k. outlook, there may be opportunities to buy u.k. domestic earnings very cheaply.
there is relatively less of that in the portfolios. clearly, that is one of the things people are worried about and perhaps, a trade for us in the future will be picking up when people get even more concerned about the u.k.. haidi: how selective are you when it comes to equities given the deadlock? do you think he will be of the get growth? peter: health care, we do not think there will be a lot of reform. issue. very thorny we have different parts of the republican party that just want different things. cap seems more of a mainstream issue that should get done, something to take you to the midterm elections. so far, we have not seen a lot. is largely discounted. we think there probably will be something happening there. i guess we have seen a significant disaster hits in the sure,hat will come i'm possibly be an element of white you might get more info structure spending. inarly, the infrastructure
many economies is not at the state it should be. i would be more optimistic run for structure and tech, but the u.s. markets had a tremendous more from -- tremendous bull run. you could earnings. you have to be selective about u.s. shares. there will be 55 plus percent of their portfolio in the u.s., and maybe that is just too much in a world where the opportunities may be elsewhere. haidi: i think policymakers are wondering that as well. peter, thank you. party more ahead. this is bloomberg. ♪
lines coming through. south korean military and the national security council ordered drill to be actually conducted to stage a show of force, conducting drills, including dropping bombs. shinzo abe rallying washington, putting pressure on pyongyang your that is what we have at the moment as the south korean national security council condemned north korea's latest missile launch. haidi: yeah, absolutely. we have the chief cabinet secretary calling this unprecedented. as you said, we had them fired along this trajectory before, but never a missile. this comes on the back of the weekend. thei escalations is a response from seoul. the japanese prime minister has spoken to the u.s. president for about 40 minutes. they are on the same page. also calling on china and russia
♪ rishaad: when it comes to investors and sentiment, it's all about tensions on the korean peninsula. 9:29 a.m. in hong kong, counting down to the start of the trading day. asian markets roiled by what is happening in this neck of the woods. the north koreans fired a missile over japanese territory. we have that, meaning investors have been piling into the yen and gold. looking further afield, having a look at wednesday. the u.s. second-quarter gdp revision is out wednesday. retail sales also out of japan. and also, well, it's about a
down day so far as people fret pyongyang is going in and elsewhere. the question is whether it is a lurch to the downside. we will get back to a more positive type of trading soon, but let's get straight to seoul. the ministry of national defense press conference is underway at the moment. we heard from the south korean president cost spokesman earlier on making comments in his briefing, saying that president moon ordered military activities, exercises to stage a show of force and the south korean military conducted drills, dropping bombs in response to the missile flown over the cato. -- hokkaido. we should be whatng more details as to the defense ministry is saying in its response in the briefing happening now.
we will get back to that as soon as details become available. we have shanghai and hong kong markets joining a risk today. >> chinese markets downturned. -- a twoit to denier day rise, the hang seng halts a five-day advance. we got a stronger yuan from the of a 62.93 in the face softer dollar. the yuan is trading at a june 2016 level. jump for the biggest the currency since may, the best-performing asian stocks. the offshore yuan is snapping a nine day advance, coming to the broad week s. that was the longest streak since january 2014. korean assets under pressure. the cost be falling over 1%, the i falling, thep
won falling. if there is a major escalation risk, gold isn also building on gains. we have the korean cds jumping as much as for basis points, climbing along with volatility. sharemarket, it is dropping below the 200 day moving average for the second day. today, the asx 200 wiped out all of 2017's gains. theral banks have weighed most on the index. investors haven't found shares in the latest round of earnings. the dow in hong kong, check out these movers. pulling them up, several companies are moving on their
results and china is gaining ground as its parent is to absorb another company. chinese stocks are joining the downturn but they remain near a december 2015 hi. chinese bonds haven't joined the activity. climbed 49 yield straight sessions through monday while the seven-day rate has spiked to a two-month high. you can see that on the blue line here. this indicates the leveraging persists in china as we work towards that congress of the party leaders. rishaad: thank you for that. we got another line coming through, the u.s. is reviewing deploying its military strategic assets. this is according to a south korean news agency. the pressure mounts on pyongyang. let's get up to speed with the events of the morning with our
first word news headlines. haslinda: the japanese prime minister shinzo abe says he and president trump agreed to increase pressure on north korea after the latest missile launch. the leaders spoke after a missile landed in the pacific do.0 kilometers off hokkai leaders say it was a serious threat and called china -- called on china and russia. the south korean president will conduct bombing drills. and officials are meeting in sydney to revise the tpp. the talks aim to reach an agreement to be signed in november. president trump pulled the u.s. out of the talks after taking office, saying his america first policy favors one and one deals rather than multinational
agreements like that he the -- ise the tpp. president trump preparing for a sales pitch, getting voters fired up about rewriting the tax code. there is little to sell at the moment. changes, taxut bracket sent business levels have yet to be addressed. steve mnuchin predicted the bill would be here by august. now, he won't commit to conceding it this year. the european union's chief brexit negotiator accused the u.k. of not being serious about its withdrawal and called on britain to be more clear about its position. the two sides opened a third round of talks in brussels. he expressed frustration at the slow progress made so far with key eu leader summits just weeks away. global news 24 hours a day, powered by more than 2700 journalists in more than 120 countries. this is bloomberg.
haidi: thanks for that. we are getting lines through from the briefing of the joint chiefs of staff happening at the national defense ministry at seoul, saying north korea will strong punishments if it continues with provocations and south korea is monitoring the possibility of north korean provocations, as well. this comes after south korea conducted bomb dropping drills after the missile was thrown -- flown over hokkaido. we have had satellites in use, and we are getting details about the jet fighters conducting bomb dropping drills after president moon ordered this as a show of force against north korea's missile provocation. we are getting news that the u.s. is reviewing deploying military strategic assets in this region as a response. the japanese prime minister
spent 40 minutes speaking to the u.s. president on the north korean missile launch this morning. we will bring you the latest on becomesry as it available. let's get to one of our other stories. china is creating the world's company,nemy -- energy merging a coal company with a power generator. tom joins us from beijing with details. this all the time, but this is on an enormous scale. >> it is. it is huge. we are talking about a tie up between the country's top coal miner and one of the country's largest power generators. in terms of the size and scale of this, their total assets will billion in u.s. dollars. they will be generating revenue
as the second largest amount in terms of a power company in the world. in terms of capacity, they are number one, 225 gigawatts, more than france's edf in terms of capacity combined. it is absolutely huge and analysts say this points to a new direction for reform, where it underlines the direction for reform. it is about merging state owned enterprises within the same sectors to create synergy. this is an example of something we expect to see more of in the power sector going ahead. haidi: what is the government trying to achieve? >> it is trying to achieve synergies in terms of oficiencies, in terms reducing industrial overcapacity, something we talk about all the time. they are trying to reduce the number of state owned enterprises.
that is a broad brush approach to reform. in terms of the individual merger, this particular merger between these two companies, one of the companies is very reliant, 90% of its capacity comes from coal-powered capacity. it wants to shift that and it can get some of the clean assets of the other company. that is a benefit. in terms of the other company, it can benefit from the coal supplies. it is the power generator. it hast has, shenhua, rail and ports and harbors. that is coming together. we don't know whether any of the things will be spun off or whether they will carve off some of the jobs, some of the employees. it ties into the company presidents approach to move away from coal power and more of a reliance on clean energy. haidi: thanks, tom.
that is tom mackenzie in beijing on the birth of a behemoth in chinese energy. you will talk more about how this plays out in the markets. >> looking at china, we could argue it is showing some signs of shining. china and hong kong indices have been beating earnings estimates this year. returnchinese companies on equity, really improving in the first half. >> correct. china's return on equity has been falling for four consecutive years. the first half, we seem to see that the r.o.e. has stabilized and picked up. one reason is because of largery consolidation, companies. it ties to the merger.
when the government wants you to carry out the supply-side reform and ends -- industry consolidations, you -- economicfrom an standpoint, that is the question. >> absolutely. we looked at all of the publicly listed chinese companies in hong kong and we noticed the large companies are growing faster than the smaller ones in terms of sale and earnings. that is surprising because you would imagine smaller companies grow faster. rishaad: because of the consolidation and the point being, is this a policy that will be continuing and this trend going on for many months, perhaps years? >> possibly. now, china has almost 100 central enterprises. they want to have about 50. we will see that for a while.
over the long run, what does it say for private enterprises? a private company, can they enter the industrial sector? rishaad: when you have a huge amount, huge competition, a huge behemoth that can crush you, it is a variable entry. >> china is becoming bigger and bigger. these big companies are getting bigger and bigger with it. >> of course. they hold key resources in chinese society. i think while it looks good right now, it is going to have very discouraging implications on the chinese economy. rishaad: this is a space we will revisit. coming up, china embracing a supercharged yuan. why dollar losses are triggering a turnaround in the currency. this is bloomberg. ♪
♪ "bloombergck with markets." haidi: the latest business flash headlines, qatar's severin rating has a negative outlook. of world's largest exporter liquefied natural gas was put on negative watch in june after saudi arabia, the uae, bahrain and egypt cut ties. international efforts haven't shown progress. an $11.9 billion acquisition will hit a company away from antiviral treatments that have been the backbone of its business to a cancer therapy that has no track record. the ceo says the company wants to be a leader, not wallow in technology.
shares moving to the upside, 1.2% in new york. boss says a venture capital would harm the ride taylor -- the ride hailer. proveck is in a bid to that he was entitled to nominate board members. well some of the biggest central banks in the world are heading into maybe a tighter policy, china is working to stay where it is. it's managing authority, trying to preserve the status quo while the world around it changes. of chinang in the head research at ocbc in singapore. thanks for joining us. one of the key aspects of this is currency, and the yuan's recent strength against the
dollar. it is surely not just part of the dollar weakness story, rather than the yuan's strength. >> that is right. judging by the performance in august, it is no longer the dollar story. that is true, and we [indiscernible] we are seeing the potential risk of the dollar position by individuals because we know for the past two years, the chinese currency [indiscernible] given the changing sentiment, this potential risk cannot be ruled out. the second ruling is in terms of the overseas [indiscernible] china has continued to clamp down on the overseas [indiscernible] in the first half of this year, the net outflow under the overseas has fallen by more than 67%. it is quite significant. because of the rising political risk, we are seeing some kind of the chinese company start to bring the money back after
unloading for it access -- foreign at sets -- foreign assets. rishaad: they have been hoarding foreign courtesy -- currency in china. why unwind them? ?hy put it into the yuan why not save it for a rainy day? >> currency seems like [indiscernible] the first reason, if you look [indiscernible] the interest rate in china is really high. [indiscernible] could be higher. the second reason is coming look of the performance of the chinese equity market. we are seeing china's equity market has tried to play catch-up. -- those two reasons are the two reasons that give people [indiscernible] foreign courtesy -- currency. haidi: the most influential factor is the cyclical adjustment mechanism they
introduced, which during the asked, does this mean the pboc kenseth the yuan rate where it thinks it should be? >> yes. this goes back to [indiscernible] playing a role in the recovery of the renminbi. [indiscernible] the correlation between the dollar [indiscernible] in the past two years, we are seeing correlation between the dollar and the renminbi. the renminbi tends to follow the dollar when it goes down. with the introduction of the [indiscernible] months, thethree dollar index has been down more than 5%. up moren be index is than 1.6%. that gives the renminbi endurance, sentiment and pressure to go higher. this is quite important change from the pboc. is not au say it
depreciation story. given more control, the flipside of that, it is one step backwards when it comes to liberalization for the yuan. >> it depends on how you look at it. basically, this [indiscernible] that is not so bad, but the parameters,aving which means more uncertainty. in terms of how we forecast the renminbi, it has [indiscernible] give the policymakers more discretionary power to set whether where they want the renminbi. it becomes less predictable. rishaad: when does the pboc decide enough is enough? do, and what do you
think they think is the right level for the yuan at the moment? >> it is hard to say. the pboceard from advisor, they came out last week, talking about the potential level of 6.526.6. for me, that is the reasonable range to expect the renminbi to go. when it is enough, it is enough. it depends on how they assess the fundamental stories about growth. strength,renminbi's there may be some impact on growth. personally, i don't think it will be significant. right now, policymakers are comfortable with the growth trajectory right now, so therefore, i don't think [indiscernible] for the policymakers at try to stop for now. rishaad: thank you very much. that is tommy xie in singapore. coming up, reports that toshiba is closer to a deal.
♪ toshiba has reportedly reached a deal with western digital up with the sale of its chip business. the agreement is said to be worth $18 billion, with the companies working to hash out a purchase agreement by this week. our editor joins us from tokyo. starts,eries of false there is hope that it gets done. what does this mean for both sides? >> the first thing to remember is a lot of those reports by local media are quite premature. lots of our reporting indicates that really, the acrimony between toshiba and western digital runs quite deep. and plausiblyt, so, we have reported on this, is that the banks, the japanese
banks behind toshiba, are really pushing hard for some sort of agreement. that is because essentially, unless toshiba completes a deal of its chip unit and gets cash in hand, they will be delisted. rishaad: does a deal me in the company, toshiba, is free of this delisting risk from the tse? what it wouldis be. essentially, the deadline for getting cash into the bank is actually march, but given the complexity of selling off the chips unit, they are trying to kind of meat and arbitrary deadline of august 31, that is two days from now, in order to get an agreement in place, then work rapidly as possible towards a closing. so that is why we are seeing a lot of frenzied reporting right getting bothof sides to the negotiating table, get them to hash out their
differences, and then sign on the dotted line. absolutely. i guess corporate japan, which has been looking at this and you could argue has been mesmerized by the dispute, what are the takeaways they would have had from it? even though the story is not over yet. >> the key take away here is, corporate governance is key. this has been part of prime minister shinzo abe's initiatives to improve and strengthen corporate governance. when you have less oversight at athe executives that -- company, you end up with a situation like toshiba, which is mess due to its nuclear business, but also an accounting scandal from a couple years ago. so this really is kind of a watershed moment for corporate governance in japan. rishaad: thank you so much.
♪ announcer: from our studios in new york city, this is "charlie rose." program.welcome to the it is the end of summer, and as we prepare for the next season, we bring our favorite conversations here on "charlie an our withht, iran's minister of foreign affairs. >> i believe everybody should come together in actually fighting these extremist ideologies and fighting them does not mean only through military. this is much deeper. it should be a comprehensive strategy to deal