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tv   First Up With Angie Lau  Bloomberg  July 6, 2014 7:00pm-9:01pm EDT

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>> from monetary policy to fiscal maneuvers -- china's next steps to boost growth. rebound is not fast enough. the imf makes its forecast for global growth. and djokovic back on top after beating federer at wimbledon. welcome to "first look." i am angie lau. morning here in asia. let's check in on markets this morning. in new zealand right now, it is
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is weakening%. it 287 u.s. cents. futures rising. counting down to the open, let's head over to japan. 225 last closed in the green. futures in chicago pointing to a higher open. the yen is weakening right now. christine lagarde issued a stern warning to world governments while praising central banks. the imf managing director hinted at a global slowdown unless investment in infrastructure is shot." "booster about? she talking >> investment in infrastructure, education, health, communications. you get the idea.
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central banks have done their job, she says. governments have yet to step up to the mark. she is speaking at an economic on friends in the south of france, -- economic conference in the south of france. they have already given their april forecast, the imf. global growth to expand 3.6% this year, 3.9% next year. she said maybe there will be a slightly different forecast, what you are saying about the lack of investment. a bit of a downgrade. i will not look forward to that when it comes out. she pointed to activity globally picking up in the second half of the year. next year could be lower because investments remain depressed. she said despite many responses to the crisis, recovery is modest, laborious, and fragile, and is failing to boost demand despite the goodwill of central
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banks. they have found their limit. governments, it is your turn. >> the u.s. labor department released its jobs report on thursday, very robust. what concerns is she saying? central banks are boosting lending, pumping money out, and not passing on to capital expenditure. the country do not benefit from the public money. banks get it. they cut banks. -- they cut rates. they are not lending to people in the street. global spending on basic transport,ure, power, water, communications, is $2.7 trillion a year. it should be $3.7 trillion. one trillion is about the size of the south korean gdp. it is a pretty big gap.
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let us boost spending on these .reas it is down to the governments to do that. >> to immunize the world against another financial crisis. growth continues to be number one for chinese economic holidaymakers, with a bid to uphold a 7.5% gdp target. there is news from the people's bank of china, using unconventional practice to spur growth. what are the tactics? >> they are very. we know central banks are supposed to focus on monetary policy. an analysis by everbright securities and credit suisse shows the people's bank of china is doing more fiscal policy these days than monetary policy. a $16 billion quota for reminding was earmarked for agriculture, as well as for small businesses. the criticism of this is that the unconventional policy decisions come with a lack of
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transparency. they go against the efforts to shift from -- to market, however. we are watching closely. array of these, a lot of them targeting rural areas. >> a lack of transparency, one concern. what fiscal tools does the pboc appear to be using? >> reminding is one of them -- re-lending is one of them. facility, the pboc offers credit directly to certain institutions, and they lend to industries with the aim of lowering financing costs. this is very targeted. the issue is that they do not want to stoke a further debt crisis, if you will. we also have state credit to railway infrastructure. we know the premier has been very vocal that state industries need to expand.
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a key focus now on small enterprises, small and medium enterprises. , as is having an impact well as bank reserve requirements. we may not see another triple-r until the end of the year, according to many economists surveyed by bloomberg. >> growth at 7.5%, all of these measures directing china toward that goal. news, pepco has defended work at fukushima and work has to be stopped to determine the source of a leakage. the nuclear operator said it will be able to keep the temperature under control for nine days. market, another foreign -- libya. the bank is planning to close operations after its local representative failed to meet hsbc requirements. the lender previously shut
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offices in iraq, japan, and latin america. the ceo has been simplifying the bank structure and focusing on its key markets. commonwealth bank of australia says it's financial planning units will stay. the lender says improved supervision and training of advisors are firmly in place. apology to clients for losing money from the unit. the lender had already paid $50 million in compensation to more than a thousand clients, and agreed to review advice given to people who suffered. german chancellor angela merkel is in beijing today to meet with her chinese counterpart, xi jinping, on day two of her visit to china. stephen engle joins us from beijing with a closer look at the chancellor's visit. what do we expect from the chancellor? day, the first full
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day in beijing today. business is the focus. this is her seventh visit to china as chancellor since taking the position in 2005. after arriving in beijing from her first stop in just one province, she met with the premier at the state guest house here in beijing. the two exchanged pleasantries for the cameras before retiring behind closed doors. she will have a bilateral meeting this morning with the premier. she will have dinner tonight with president xi jinping. germany is china's largest trading partner in europe. obviously, china is a key market for all those german goods, europe's largest exporter. she brought leaders from many key companies, including the lufthansa,siemens, folks like him, airbus, and others. she was touring a volkswagen
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plant with the volkswagen chairman. she will be given full military honors, a welcome in beijing. she will meet with president xi jinping, who was in germany in march. from the european chamber of commerce suggest german companies are more optimistic about investments right now in china than some of germany's eu counterparts. there is rising cost, and there is credit. the percentage of businesses that plan to expand in china dropped to 57% from 86% last year. there is a little bit more pessimism, but there is a tight environment, and that these german exporters. it will be interesting, what the trading and investment climate is for german companies.
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they will have a press conference later today. they will be at the great hall of the people later on this morning. >> is this is one thing. does that influence some of the more sensitive issues that are going to be discussed? i think there will be some sensitive issues. fighting on the international front will most certainly be discussed between the leaders. merkel has mentioned pollution as one problem. she mentioned that as a downside of urbanization as investment moves west. groups have urged merkel to raise human rights issues during her visit. it is considered she could press to visitt ai weiwei germany, where his works are on display in a large show in berlin.
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i think the headlines are going to be about business. but you never know what they are going to discuss when they get face to face. >> to sports now. novak djokovic defeated roger federer to win his second wimbledon title and reclaim the top spot in the men's game. it went to five sets. a seventh grand slam title. his win against federer and a run of three straight defeats -- ends a run of three straight defeats and world titles. germany, the netherlands, and argentina left in the world cup. although the u.s. has been knocked out of the tournament, viewers are still watching by the millions. we spoke with the ceo of espn about increased interest in the game in america. >> our average television rating .s up 39% the digital viewing has been through the roof.
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this is already the most streamed sporting event of all time. sochi now 70% belong the -- beyond the sochi olympics. we will be more than double the sochi olympics before this is over, and that was the previous high water mark. of ourcan see more exclusive interview tomorrow. that is right here on bloomberg television. to the election, we are going to take a look at the race to lead indonesia, when "first up" returns. ♪
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>> some of the stories we are watching in asia this week. samsung made disappointing profits on tuesday, and the company cfo has warned earnings may be week as rising competition ways on galaxy sales. operating profit may fail -- may
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fall. indonesians go to the polls on wednesday to choose a new president. a tight race between the leading contenders. the winner?rge as we are going to be live for you in jakarta. on thursday, we are going to see if chinese exports cushioned the country from a deeper slowdown. a stronger number may indicate a recovery in the u.s. and europe is continuing. economists surveyed by bloomberg rose 10%.orts india's new government is ready to present its budget. finance -- the finance minister do to try to narrow one of asia's widest fiscal deficits? we will find out on thursday. as you can see, a very busy week. let us take a closer look at those events with my next guest, the chief asia-pacific economist
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from singapore. what do you think foreign investors are going to be most interested in this week? >> i think foreign investors are definitely going to be focusing on the indonesia election. one of the dynamics of the -- aesian election perception of a political breath improve air who will transparency and process in indonesia. any investor is probably factoring in a likely win. all of the most recent polls suggest a narrower gap. the election is likely to be too close to call. i think investors are going to policies,g up on plans for subsidy reform and infrastructure expansion. at whatlikely looking the consequences of that victory will be in indonesia. >> a lot of foreign investors are a little concerned about what a win is going to be.
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many are fearing that the nationalistic helices of the administration will restrict foreign investment. what are your thoughts? probably describe one of them as a protectionist and one of them as a nationalist, so it is probably a tom-ah-to, to-may-toe difference. increase itwants to the indonesian capital component of it, which will be difficult, given that is not the area indonesia has a natural comparative advantage. proper weight looks to have slightly less restrictions on the import components of capital. i think foreign direct
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investors, any potential ownership caps will be a concern. given we have some exit polls on thursday suggesting the likely direction, but the official announcements of the outcome might be toward the end of the month, there could be uncertainty, where we are not seeing the clarity and the visibility we need to see on foreign ownership of indonesian assets, particularly in the fbi space, until the end of the month. >> we will get more clarity from india in terms of its budget. what do you expect, and what do you think is going to drive foreign investment in india? do you think it is going to work? >> this could be one of the interesting dynamics. andre seeing india indonesia typically bundled together as part of the fragile five. this year, given frontloaded policy measures in place, we
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could be beginning to see a little bit of the decoupling between india and indonesia. there may be concerns about subsidies and the school fiscalration in -- and deterioration in india, but that does not seem to be the case. we expect a little bit more than the outgoing government proposal, but we do think it will be a better quality deficit than what the previous administration was focusing on. the key reason for that is, we subsidy reform to be taken, particularly fuel subsidy. this would be a surprise to foreign investors and foreign observers of the indian economy. they are starting to tackle fiscal policy and subsidy reform early in the new administration. if true, that would be very interesting. tell us about some central bank key moves this week. malaysia,ecting
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indonesia, and south korea to come out with rate decisions. any direction as to who is going to do what? >> south korea and indonesia will be on hold, but malaysia is likely to be the most interesting. the central government has clearly turned a little more hawkish. we think malaysia has been laying the grounds for a shift in monetary policy at this meeting. them to be the first central bank to commence an orthodox rate hike cycle. although we have seen liquidity tightening measures in the philippines, they have not affected the orthodoxy of the cash rate. malaysia is likely to be the create that cycle. growth is near potential. inflation pressures are starting to manifest. 2015, and asian central bankers are becoming more confident of a durable
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recovery, the maintenance of interest rates in real terms, negative terms, is no longer appropriate. second half of the year, probably the philippines and indonesia are likely to join malaysia in raising rates. the week, we would expect bank in malaysia to be the only bank raising rates. >> always a pleasure to speak with you. still to come, tensions remain high as israel makes arrests over the killing of a palestinian teenager. the latest on that after a short right. ♪
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>> checking other stories making headlines around the world, israel has arrested six jewish suspects over the killing of the palestinian teenager whose death sparked a day of violent protest. the 16-year-old was abducted near his home last week. his charred remains were found shortly afterward. autopsy results indicated he was still alive when he was set on fire. death wasns say his an act of revenge for the earlier killing of three jewish teenagers. claimed atroops have major tactical victory against pro-russian insurgents after capturing the formal rebel
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.tronghold of sloviansk they raised ukrainian flag over administrative openings. it had been under rebel control since early april. separatists routed in the event vowed to regroup elsewhere and fight on. pro-moscowf supporters cheered on the rebels driven from sloviansk. many urged moscow to come to their aid. so far, there has been no comment from the kremlin. need a new vehicle? how about a tank? a private collector in the u.s. is auctioning vehicles, some of which were used in world war ii. bloomberg takes a look. >> nothing makes a statement like a tank in your backyard. on july 11, you can buy one. more than 100 tanks will be auctioned from a family estate
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in california. just steps away from silicon valley. >> the foundation was formed in 1998 i jock littleton. -- by littleton. he was purchasing and collecting more than one tank a week from around the world. >> littlefield had no military background. he just thought tanks were interesting. >> these tanks represent multiple countries, multiple years, multiple wars, and multiple battles. >> a portion of the collection will soon roll is used to a new home in stow, massachusetts. transporting a fleet of military vehicles across the country costs millions, and the auction is to help fund the move. they may look intimidating. your neighbors can rest assured most of the tanks can no longer fire real ammunition. >> it is like eating popcorn. you cannot just have one. >> you may agree after seeing these.
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>> coming up
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>> we are 30 minutes away from the open of trading in japan and australia. look outside our offices in the central business district. you are watching "first up." >> the neck and neck race gets personal as indonesia's presidential hopefuls meet for the final election. set to move up a
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gear in china. mainlander of fewer shoppers visiting hong kong. new zealand starting the day off 0.3% down. zealand dollars, 87 u.s. cents. it is weakening this morning. we are counting down to the open for japan, korea, and australia. on friday, the nikkei it climbed 0.6%. and futures pointing to a higher open. the u.s. dollar saw its biggest weekly gain in six weeks on friday. >> indonesia's presidential candidates traded barbs in the
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final debate of this week's elections. botheck and neck race has contenders promising to fight graft in a country ranked among worst in the world. -- corruption is a key issue in this race, isn't it? >> a key issue. it is an issue that resonates with the people. after a decade of stagnation, a widespread corruption, voters in indonesia have made no bones about wanting a cleaner government. both candidates have committed to fight corruption. example, illegal logging and mismanagement have cost the government more than $7 billion in state coffers between 2007 and 2011, according to human rights watch. that is more than its health budget. an internal report shows that government officials have siphoned off 20% of the total
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bank loans intended for the country over a. -- over a period of 30 years. corruption has stifled development, even though this is a country rich in resources -- oil, gas, coal. exports, up 65% of even though the chinese did not spark the commodities boom. indonesia failed to meet its seven percent growth target. roads were not built. an agency convicted ministers, ceo's, even central bankers. corruption, a huge issue for this election. >> no doubt. what are political analysts saying about the japanese victory? what do we expect? >> it could mean a return to a more closed society, a stronger military. he has been beating the nationalist rom, capitalizing on
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the sentiment of the country. indonesians are seen of the -- as being part of investors coming in and taking a lot of money out of the country. a former army general, he is closely linked to the previous dictator, suharto. another is seen as a self-made man, and he seems to be fighting corruption in his own way. both represent completely indonesia, and whether one will be better than the other remains to be seen. and who will be supporting the candidates? that.nk you for in a few days, we are going to know the results of the poll. you do not want to miss live coverage from jakarta, including a special show with haslinda amin, coming up thursday at 11:30. that is right here on bloomberg television.
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travelers in china will soon find it easier to get a luxury ride around town. a service is adding high end to it cap offerings. so, it is kind of like wilbur -- uber, but so much more. >> a taxi booking app is going to add some cars to its range. it is actually launching a new site. it is a slick website. it looks a little bit similar to the uber website. it is going to offer bmw series and aars, the audi, buick, all very slick cars. what it wants to do is basically game.n uber at its own >> i notice all the western faces on the website. that is a very interesting marketing play. but isn't uber already in china?
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don't they already offer luxury cars? >> they do. been saying, no one is really finding us until there arebecause other taxi booking apps in china. one is backed by alibaba. lift,are other ones like like easy taxi. they are already battling in the regular arena. luxury, head to head with uber, with wi-fi in cars. chargers, a luxury car service. everybody wants to get around town, if you are a well-heeled traveler. that it isge is already very popular. it has already something like 100 million users. the service is called something
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different, but it is linked to that name, and people already recognize it in china. this is where uber may face a bit of a disadvantage. it is trying to get its name out in china as well. many people have not heard of it. there is a piece stephen engle stillst month, and it is trying to get its name out there in the chinese market. >> what is the ultimate play, really, for these big e-commerce companies? >> it is backed by ali baba. the alibaba app to pay. another one, you can use a wallet to pay for that. takes alikes -- uber pay as well, lined up with alibaba. they are using this service as a
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gateway to other services. myriad of other services you can get through the gateway, the portals. >> that is the ultimate long game, isn't it? time for a look at the other stories we are following today. david english with the details. >> give the ceo his job back, or pay up. that seems to be the message from the hedge fund which went american apparel $10 million. wine capital believes -- lion charney leftif the company, it would be in default. was ousted in allegations of sexual misconduct and ms. up-ice -- and misuse of corporate funds. hope for a deal at angela merkel's visit.
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lufthansa has struggled to keep up with competition from rivals in the emirates and turkish airlines. said to be selling a stake in its project in western australia. people familiar with the matter said the houston-based company is said to be in discussions with the buyers. apache announced it is going to be selling nearly $10 million worth of assets as it seeks to buy the debt. this hour.eadlines >> hong kong retail sales fell again in may, for the third straight month. a bloombergby industries retail analyst. good to see you. what happened? >> we had some and some down categories. the big thing that brought retail sales down was jewelry, watches, and high-end gifts.
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that was down 24.5%, year on year. >> how did it compare with consensus? >> we look at overall retail sales, down 4.1%. that was more or less in line with consensus expectations. >> which categories performed strongly, and which did not? the categories that performed pretty well was supermarket sales, up a little over six percent. ,e saw footwear and accessories and cosmetics up eight percent. the big downside was luxury watches. that is partly because of anti-extravagance measures in china. me no prices rise really quickly. on the way down, prices are sticky. >> a lot of people in the luxury
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sector have been saying the anticorruption drive we have been seeing in china has impacted sales. certainly, that is the case in may, isn't it? >> there is a couple of factors. drop in a bit of a gold. if you look at a watch right now, you have a pretty good idea of what it cost. i think people think it is because of anticorruption, because people are buying the high-end watches, that person has a $50,000 watch. maybe a $200,000 watch. manufacturers now are trying to go out and change that a bit, and a lot more components, so it is more difficult, going forward. if you look at a watch, you are not sure whether it cost that or $50,000.0 >> that is a very interesting marketing ploy. >> you have customization, and differences in the components.
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watches, aewelry, half percent. that is the second-largest in at least a decade. thank you so much for joining us. a member of the obama administration joins us next. we are going to ask what is it of this week's u.s.-china strategic talks. ♪
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>> my next guest is a high-ranking business leader in the obama administration, and with the u.s. strategic dialogue taking place this week, let us get more with fred hoffert. from these expect talks between the u.s. and china? 2005,se talks started in 2006. they have gone on every year,
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one year in china, one year in washington. it is for finding common ground on cyber security, property rights, currency, trade, and exports. exports are really up. good places were can find common ground. >> do you think it will be one of the most contentious talks in years? >> we have our differences. we are both competitors. we compete globally in many ways. of we are also customers each other. it is always a delicate balance. >> what do you think is going to be on the agenda? currency issues, security issues, intellectual property rights, and trade. president xima and talked about how we finance exports globally. we are trying to find, how do we be more transparent and keep a level playing field to the
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united states, china, and other countries, as we sell export products around the world? >> the level playing field is not something american businesses have seen, especially in the backdrop of cyber security. microsoft and others have really chinese brunt of against u.s. multinationals. -- aggression against u.s. multinationals. is that a concern? do about $27 billion worth of loans a year. they ensure overseas sales of three hundred billion dollars of short-term insurance. we do five or 8 billion. there is a lot of competition. i was just in africa. intense competition between chinese and american interests. import bank is a federal agency that provides funds for exporters.
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tell us about the funds that do business with u.s. exporters. it is facing a bit of a political battle. explain the current state of where you are, and the possibility of you not being in existence in september. >> the bank has been in existence for 80 years. we exist to finance u.s. exports going overseas. there is competition. and the reluctance of exporters in any country to sell overseas at a risk. we try to take care of the risk. we do it at no cost to taxpayers. last year, we supported 200-5000 jobs. i think that puts us in a good stead for being reauthorized. we are a sunset agency. we have to be reauthorized every five years. that periodic review gives congress a chance to review the operations, say what they would like to have changed. we have had bipartisan majorities in the past. i am
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confident we will do that again. >> there is confidence, but a lot of older ability this time around. obama and the white house absolutely support it. you have a growing number of republicans, perhaps that number dwindling due to concerted efforts on your part. but a lot of republicans it is unnecessary and hurt some u.s. as mrs.. delta airlines, not liking some of the funding you have provided. >> first of all, we are vitally needed by small businesses to export to places like china and hong kong. yesterday, i was in shanghai and tried some ice cream from a company that exports to china. we support that. small and large businesses are competing with state owned inter-prizes and very government interests around the world. if we want to keep jobs in america, supporting a middle-class, we need to export.
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and we need a bank to support those exports. there is noens if such bank in september, in the face of global competition? we have 60 other export credit agencies around the world. small businesses would be the first ones to feel the brunt of the impact, and in fact they are already. a company in california converts landfill gas into useful energy. they were told by the philippines there were probably not going to go with them because of a concern we may not be around in three months. there is already a tangible impact on businesses, small businesses in particular, who are seeing their audit books beginning to dry up, on the threat of us not being around. >> gauge the health of asia as a region, as pertains to the global economic recovery we are seeing, and how u.s. and asia play a role in that. >> i am still very optimistic.
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india is signaling a pivot to more business friendly. we have an election in indonesia. it will be about moving the company forward economically. exports are here. alone, we finance 12% of all exports last year. vitality,g a lot of whether it is aircraft, satellites, small businesses. ice cream, pickles. >> it really is the balance of geopolitical stability we are seeing right now, at least currently. but that is all changing as china agitates in the south china and east china seas. do you feel that the facts on the ground could change the
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business relationship, moving forward? >> in some ways, i think it will accrue to the benefit of u.s. companies. people like the idea of doing business with america. they liked the idea that they can trust the delivery, service. some of these concerns in some ways accrue to the u.s.. we have pivoted to asia. there is a u.s. pivot to asia. i think that can benefit u.s. firms. >> thank you for joining us. up, more on what our reporters will be watching when markets kick off.
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>> there is the bell. we are taking a look ahead to
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the opens in japan. our intrepid reporters are here to tell us the stuff they are keeping an ion. let me guess -- something to do with wimbledon. >> djokovic of course won wimbledon. ,-- uniqlo, the sponsor. >> there it is. sponsorship,r beginning in 2012, may. i am not guaranteeing a shareprice move. the brand will be happy with this second wimbledon final. >> it think they are going to share that shirt? >> i imagine it is worth quite a lot of money. >> are you going to pick one out? >> a great victory.
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really tough match. >> it is a tough match today. what have you got? >> no sports endorsement deals. a supermarket, convenience store across japan. we saw a collapse in financials. net income was down 90%. betweenthe big miss what they actually made and what the markets estimated. the full-year forecast, unchanged, surprisingly. we will see if there is some reaction after the markets close. >> we are talking about the australian phone company. they are said to be looking at deals in asia. they are looking to expand into the asia-pacific, but need the scale of a larger telecom to do so. the ceo has said he wants to
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target 33% of revenue from the asia-pacific right 2020. he needs a company with that scale to get him there. >> we are going to see big moves. and john keeps pointing to this guy. >> there it is, uniqlo. >> that is a much better shot. >> that is the verdict from the stock exchange. stocks our reporters highlighted are based on news events. back in an hour. transformers is holding its u.s., but is an even bigger hit in china. the blockbuster dominated the box office for a second week. over the weekend, it took him $14 million more in china. taking a look ahead to the japan open in just a few minutes from now, we have some pix from our guys. 0.6%ikkei 225 last closed
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higher. features in singapore pointing to a slightly higher open. the u.s. dollar strengthening. too close to call. presidential
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captioning made possible by bloomberg television] >> from monetary policy to fiscal maneuvering. the forecast for the g.d.p. and djokovic returns. serve is back on top after beating federer at wimbledon. welcome to "first up." coming to live from our asian headquarters in hong kong and streaming on mobile and bloomberg.com monday morning here in asia. as growth continues to be a priority number one for china's economic policymakers.
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but in a bid to uphold 7 1/2% g.d.p. target, there's new evidence people's bank of china is using unconventional tactics to spur growth. spurring growth to promise 7 1/2% growth this year? >> that's right. >> it's a promise? it appears a promise and it appears it must be carried out by people's bank of china governor. tried to carry out communist party orders to protect 7.5% g.d.p. growth. this, of course, major challenge in china given the fact you need stimulus in some areas, rein in credit growth in other areas. a cocktail if you will of monetary and fiscal policy and analysis by everbright and credit swiss, perhaps there's more fiscal policy at work than molltary policy by the pboc. >> interesting. what can we expect specifically from pboc?
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>> there's criticism about jpmorgan and others wading into fiscal policy, of course, goes away from the core job of the people's bank of china and it gets into larger debates about liquidity injections and other ancillary issues with respect to the economy. no doubt these are unconventional policy decisions. credit suisse and everbright securities talking about this. critics blasting lack of transparency in some of these programs. we're talking about for example $16 million earmarked for relending for agriculture and small businesses, angie. another $300 billion yuan for low-income housing in rural areas. these are stimulus tactics we have seen. and tried and true reserve arabio cuts we saw at certain lenders, particularly rural ones. >> and that's also providing the basis for a lot of improved outlook for at least chinese share of stocks in hong kong. >> and infrastructure.
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let's not forget that. increased railway spending, for example. that supports some of those railway stocks that you mentioned like china's c.n.r. >> sam, thank you so much for that. german chancellor angela merkel is in china to meet and speak with her counterpart, xi jinping, on day two of the three-day vifflet to china. steven engle joins us with a closer look at the chancellor's visit. looks like they will be talking about a lot of things, steve. >> yes, and business will likely be the focus of merkel's visit. this is her seventh visit to china as chancellor, angie. last night after rising to beijing from a visit to szechuan province, where she began her trip, she met with xi jinping, the two, of course, exchanging pleasantries before retiring behind closed doors. germany is china's largest trading partner in europe and obviously china is a key market
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for all of those german goods like b.m.w.'s and audis, top sellers here. hence she brought with her leaders from many key german companies, including deutsche bank, deutsche post, lufetansia, airbus, he volkswagen and a few others. she was touring a volkswagen plant with the chairman martin wintercorn. she will be given full military honors welcome in beijing this morning, which i believe will be brought to us live. she will meet tonight with the president, xi jinping, for dinner. he, of course, was just in germany in march. interestingly, recent surveys have indicated -- the surveys from the likes of the european chamber of commerce indicated german companies are perhaps a little more optimistic about investment in china right now than some of germany's other e.u. counterparts. percentage of e.u. businesses
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that plan to expand in china this year dropped a bit. little more pessimism. down to 57% from 86% last year in this e.u. chamber survey. but tight regulatory market, slowing economy, tighter credit. that is squeezing conditions for european companies here, especially when it comes to delays perhaps in payment to german exporters. the back bone, of course, the german economy. angie? >> very interesting there but, of course, china seeing germany and its powerbase in the e.u. certainly one of the very attractive things when it does business with them. what about some of the other sensitive issues discussed? >> well, absolutely. i mean on the geo political front, angela merkel has been an outspoken on the crisis in the ukraine. that will almost certainly be discussed. already she's mentioned the problems of pollution here in china when she was visiting
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yesterday and human rights could also come up as well. probably not in front of the cameras but perhaps behind closed doors. i know the groups earthed merkel to raise human rights during her visit. she could press for the artist to visit germany where he has works on display in a large show in berlin. but business will likely be the head liens coming out of the business, especially today, there will be press conferences with angela merkel later this morning. back to you. >> steve, thanks, out of beijing. time for a quick check on some of the other stories we're tracking for you. an alibaba-backed taxi service is going head to head with china. kuaidi looking to match sales of audi cars and b.m.w. and a new app partnering with chauffeur companies in a number of cities. they will have to compete with tencent, which has a stake in didi taxi.
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the world's largest pension fund surfed its first loss in two years. japan's government pension fund fell 0.8% last quarter, under increased pressure to overhaul investment strategy and noov riskier assets. and one of the reactors was suspended after a leak was discovered tepco. work has to be stopped to determine the source of the leakage. the nuclear operator said it will keep the temperature under control for about nine days. and christine lagarde hinetted as a global slowdown unless the infrastructure is given a, quote, booster shot. what are we talking about here, john? >> she's saying simply governments need to step up, central bank has done all of the work and that's simply the message. otherwise global growth slow down this year second half and
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also next year. the spin on infrastructure from transport to water to communications, et cetera. otherwise you could have a bit of prescribe. the word she uses is this, speaking at the economic conference. it wasn't i.m.f. conference, economic conference south of france. and obviously her comments hinting towards maybe downgrading their growth forecast, which she said again they will give the next update 24 month. last one in april when they forecast 3.6% 2014 for global growth, 2.9% for 2015. she did say in fact you may see a very slightly different forecast and again based on what she's saying, lower forecast. she said she warned of lackluster investment may lead to slower growth and also the economic recovery pickup is less robust than expected. why? the depressed levels, and quotes, in fact, despite the many responses to the crisis, recovery is modest, laborious, fragile and measures to boost
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demand despite the goodwill of central banks will find their limits. in other words, can only pump as much money and there's a limit and governments must actually pass along capital expenditure. those, of course, include power, water, communication, transport, frain structure. >> she's certainly seen a deterioration since the last time i.m.f. put forward there outlook. what is she recommending here? >> well, actually, she uses the world economic forum data. so global spending had a figure on basic infrastructure, transportation, water, communications, $2.7 trillion a year. a lot of money you think but she's saying simply 3.7 trillion. so the 1 trillion difference, which equates to the south korean g.d.p. is the difference. that must be plugged otherwise recovery will come to a halt and you will see slowdowns. governments now spending on rail transports and other companies
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passing it on. >> that's right. >> otherwise, slow recovery. laborious is the word she used, fragile, modest. >> liquidity is one thing, spending it another. >> central banks, them's up, well done, guys. government, your turn. >> still to come -- the i.m.f. has second thoughts on its global growth forecast. we're going to ask ure guest if he shares christine lagarde's concern.
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>> well, you heard i.m.f. managing director christine lagarde hintsing at a global slowdown. let's get more on this now, joining us is head of asian research mark matthews. mark, good to see you. do you agree with christine lagarde? >> good morning. no, don't see global slowdown. if anything, the p.m.i.'s last
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week from all of the major economies in the world were very strong. payroll number was also strong. and here in asia, numbers are looking decent as well. don't see the slowdown. >> if you don't see the slowdown, what do you think is the basis of her concern? and somewhat, you know, talking about countries not spending enough and doing their part in stimulating economies. >> maybe there's friction with europe. i guess that's where the heart of the matter is, that i.m.f. would like to see europe growing faster than it is. i guess so would everybody. the fact is they are staging a recovery, and i think they will continue to do that. in peripheral europe, which is the eye of the storm. so i think that the only weak, majorly weak economy is france. but if the others are trunding
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along as they were, then it's hard for france to go back into a recession. it's too interlinked with the rest of them. >> and you mentioned you're seeing disparity between developed markets in the u.s. and meerging markets. do you see that eventually this is going to resolve itself? are we going to see continued divergence? >> well, that's something i wonder about a lot. exactly, we have had very big moves in the western markets and particularly the u.s. and the disparity, the gap between them and yashe is really becoming very pronounced, both in absolutely performance terms and in valuation terms. sometimes like i remember after the asian crisis, yashe just gets forgotten about for a while when there's a big bull market in the west. and i don't think we're in a time like that though. i think there's enough good stories here in asia that eventually that disparity should
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rectify itself and money should be looking to invest here. >> all right. so if there are good stories here in asia, as you said, where specifically should investors be looking for those good stories and putting their dollars? >> well, i think china is most obvious one in my opinion simply because it's so very, very cheap. it's on around six times the shanghai composite. and the data certainly has been very robust, so robust it's now starting to beat expectations. a couple months ago citigroup economics surprise index for china is the worst it has ever been since the global financial crisis. now it's in positive territory. that's a remarkable turnaround. i think the chinese market is one and i think totally different story but india is a market that i think will continue to push higher. given all of the head winds that
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have suppressed economic growth there over the past few years being resolved under this new government. i think they will be. the last one will be japan. i think it's a little bit similar to india in the sense that there is new government which is pushing through a lot of changes. but also the earnings in japan, i'm quite sure will be significantly beat expectations because companies had been lowballing their earnings. what we are seeing in japan like other countries, data has been exceeding expectations. so i think on the next round of results, we will realize japan is cheaper than we thought it was. >> all right. and upgrading your view on japan equities. i want to get your view lastly before i let you go on indonesia's elections. they demolished the belief back in april 30% lead, now reduced to the point where pollsters say it's too close to call.
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how do foreign investors feel about that? how do people outside indonesia feel about the growth environment? >> indonesia on the surface is if not the best emerging economy in the world, then one of them. huge population and very underpenetrated and most basic products and services, a lost natural resources. all good in the long term. but politics are important and absolutely as you say this election coming up is pivotal. d if jacoby loses, i think there will be sharp reaction in the stock market. taking fairly bellicose terms about foreign investment. perhaps it's campaign rhetoric. we won't know until he's actually the president and so, of course, i don't thin vesters
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will wait to find out. then again, if he wins, it's a more compelling story but you have to realize unlike india, he has a very weak grip on the part lament there. parliamentary elections were already held in april. and so i think his ability to actually push through changes that will make a real difference for the economy is not as good as modese is in india. >> all right, we will leave it there. thank you for joining us out of singapore today, on the latest including indonesia's upcoming elections. in fact those are some of the stories we are watching this week here in asia. samsung may see a dip in profits tuesday with analyst forecasting a drop of 14% last quarter. the company's c.f.o. warned earnings may be weak as rising competition weighs on galaxy sales. operating profit may fall as customers pick iphones and cheaper chinese models. now as mentioned, independent
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nearbies do go to the polls wednesday to choose a new president. very tight race between two leading contenders. two will emerge as the winner? we will be live in joao cartia. thursday -- in jakarta. on thursday, a deeper slowdown, and stronger number may indicate recovery in the u.s. and europe. export rose in a survey by blp 10%. barely six weeks in office and india's new government ready to present its gudget. what will they do to try to widen the widest fiscal deficit? we will find out thursday. but up next -- in the market for new set of wheels? we might have the answer for you. though you probably need a much larger garage. i'll have the details when "first up" returns.
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>> it is monday, 7th of july and these are your top stories. new evidence china's central bank is using fiscal tools to spur economic growth. the pboc started a $16 billion quota this year aimed at relending to agriculture and small businesses. jpmorgan says such tools lack transparency and contradicts bank's efforts to shift towards market-directed credit.
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and germany chancellor angela merkel is in beijing on the second day of her stroist china. she met premier xi jinping yesterday, who said china's willing to deepen economic cooperation with germany in trade and finance. and christine lagarde hinted at possible cut in the i.m.f. forecast, even as the u.s. economy picks up. i.m.f. chief says global investments are still weak and still in need of, quote, a booster shot. to sports now, and tennis. novak djokovic defeated roger federer to win his second wimbledon title and reclaim the top spot in men's games. they went to five sets but the serve came out on top to take seventh grand slam title. his win against federer had him see three straight defeats in major finals. down to the semifinals in the world cup this week with just brazil, germany and netherlands and argentina left in the competition. the united states has been knocked out of the tournament,
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viewers there still watching the games by the millions. we spoke exclusively to the c.e.o. of espn about the increased interest in the game from america. >> our average television rating is up 39%, despite the fact it's thaup much, digital viewing has been through the roof. this will be, is already most streamed sporting event of all time. we're now 70% beyond the sochi olympics. we will be more than double the sochi olympics before this is over and that was the previous highwatermark. >> you can see more of our exclusive interview with c.e.o. john skipper tomorrow, right here on bloomberg television. are you in search of a new vehicle? how about a tank? a private collector in the united states is auctioning some of its armored vehicles, some of which were used to world war ii. bloomberg takes a look.
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>> nothing makes a statement like a tank in your backyard. and on july 11th, you can buy one. more than 100 tanks will be auctioned from a family of safes in portola valley, california, steps away from silicone valley. >> the foundation was formed in 1998 by jacques littlefield. went from casual start in the '70's to by mid-'90's purchasing and collecting more than one tank a week from around the world. >> littlefield had no military background. he just thought tanks were interesting. >> these tanks represent multiple country, multiple years and multiple wars and battles. >> a portion of the $30 million collection will soon roll east to a new home in stowe, massachusetts, transport ago fleet of military vehicles costs millions and the auction is to help fund the move. while they may look intestimony dating, your neighbors can rest
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assured most of the tafferings can no longer fire real ammunition. >> it's like eating popcorn, you can't have just one. >> you may agree after seeing these. >> you can get more on that story any time, anywhere. all you have to do is download bloomberg plus to your mobile
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and tablet. available on android, apple and windows. let's look at the markets trading in the asian-pacific. japan's neek kay -- knee ok looks like pointing to higher open and what we got. but south korea taking downside movement this morning. we are seeing gains for australia, a.s.x. 200 climbing .1%. coming up next -- drumming up business, angela merkel visits china. after the break, we will discuss the challenge facing her country's carmakers when "first up" returns.
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>> all right, there it is, the live shot view, beautiful shot across from victoria harbor. 8:30 in hong kong. hour from open the trading here and you're watching "first up." merkel's mission, german chancellor's visit to china. what it means for her country's carmakers. and all hail the rise of the taxi app. why competition is set to move up a gear in china. and countdown to indonesia's election. two candidates neck in neck with
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he vote days away. israel arrested six suspects over the killing of a palestinian teenager whose death sparked violent protests there. 16-year-old mohammed abu khdair was abducted in his home in east jerusalem last week. his charred remains found shortly afterwards. autopsy results candidate he was still alive when he was set on fire. palestinians say his death was act of revenge for earlier killing of three jewish teenagers. the ukrainian troops claimed major tactical victory against former russian insurgents after capturing the former rebel stronghold. forces raised ukrainian flag over administrative buildings. it had been under rebel control since early april but separatists brought in and defenses vowed to regroup elsewhere and fight on. meanwhile thousands of pro-moscow supporters
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demonstrated to cheer on rebel fighters driven and waving flags from russia and people's republic, many urged moscow to come to their aid. so far there's been no comment from the kremlin. and german chancellor angel merkel is in beijing on day two of three of her visit to china. she met with premier xi jinping yesterday, who said china is willing to deepen cooperation with germany in frayed and finance. earlier, she toured a factry operated by volkswagen over there in chiningia. the german automaker is just one of the companies trying to drive seals in the region. for more on why they're targeting china, we're joined by bloomberg energy finance director nathanial board. how big is the chinese auto market there and why do the germans want to be there? >> it's huge, biggest auto market in the world.
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22 million cars, compare that to fewer than 16 million in the u.s. and still growing at a double-digit clip. germans hold a really strong position in this market. 3.2 million cars sold by volkswagen last year and looking to add another 600,000 to the manufacturing capacity. >> let's look at just the race is like in china. what's at stake here? >> what's at stake now is a couple of things. volkswagen trying to keep strong position, b.m.w. as well. daimler not quite as big. daimler is only 60% the size of b.m.w. in the market. obviously local makers and then if you go further into the future, wondering about about the new energy vehicles. last week was a potential feature of these talks. that's not just what's going to happen with tesla, for instance, but what will happen with the local players plus internationals coming in. >> what is the goal? by 2020 we're going to have -- the growth goal there. >> there's a couple goals which
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have not been close to met. 5 million target for new energy vehicles. predicting on our own natural gas vehicles at 3.8 million by the end of the decade. those are down for air quality reasons in the northern and eastern cities where the fuel is cleaner than diesel and cheaper than diesel. >> and so what is the competitive landscape for germans right now? >> right now they have a strong position. one thing that might be an issue as we see a bit of a pullback in luxury buying n. particular from the government. in beijing, a lot fewer of long wheel base audis with white license plate. don't know where they've gone but they're not quite on the road so much. for the sales elsewhere in the stacks, volkswagen's mid-tier and any commercial vehicles, market still looks pretty strong. >> still looks strong but offsetting part of that is the growth of domestic automakers. >> that's right. obviously long-term goal once you started and there's a
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long-term goal to have your own national champion cars. we see some of these makers. you see b.y.d. and shanghai automotive like this. the question is do they occupy the same spot in the market. >> do they? >> not yet quite. if i'm wealthy buying a car, i will not be buying saic right away. if i'm buying my first car in china, i might be mying one. the question is do they ramp that up as all have done over time and move from the bottom of order of things desired towards the top? >> when it's an edict from the chinese government to local leaders and government cars to buy chinese, that's starting the fence. >> it often helps. you can say doing j.v., halfway there but let's see what it looks like in five years' time. >> thank you so much, joining us here in hong kong. mercedes, speaking of mercedes, will bring back a top of the line s class series. it's not a vk for everyone. the new mercedes is plated with protective armor and costs --
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wait for -- over a million dollars. let's take a look. >> b.m.w. has rolls-royce and audi has bentley. what does the other german luxury carmaker have to offer? after the credit crisis killed my box, daimler is left with mercedes. but now daimler will bring back the pullman version of its top of the line s class plated with armor t. cost over a million dollars, more than twice the price of the most expensive rolls-royce. aimed at royalty and ridiculously rich, mercedes s class is what we here in america actually think of as a limousine with two rows of seats facing each other in the back and chauffeur's cabin separated by a privacy screen. the pullman will be about 21 feet long, making it about the same size as great white shark, and makes it biggest production passenger car in the world. the car is meant to invoke the famous mercedes 600 series limousines used to chauffeur the likes of the pope and elvis
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presley. it was owned by celebrities like john lennon and jeremy clarkeson. daimler aims to overtake b.m.w. as biggest luxury carmaker in the world by the end of the decade. but meeting this goal requires mercedes perversely to produce much cheaper cars like $29,000 c.l.a. in order to boost volume. but mercedes has to be careful to keep that luxury luster and is doing so with a line of huge high-margin halo cars based on the mercedes flagship s class. maybe they need to balance out the bottom end with unattainable luxury cars will even work its magic on my bach. there are rumors we will see that nameplate on mercedes at a couple car shows in november. >> time for a look at other stories we're following for you today. >> lufe stancia is said to be considering a venture with china. reporting a deal will be made
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during the state visit to china by chancellor angela merkel. two airlines sharing flight codes and revenues and cost. lufetansia struggled to keep up with rivals like turkish ables and emirates. give the c.e.o. his job back or pay up. that's the message from the head fudge that lent american aparallel $10 million. a person familiar with the matter said lion capital believes charney's return would stabilize the company. a loan agreement signed last year said if carney left the company, it would be in detail. charney was ousted, of course, after allegations of sexual misconduct and misuse of corporate funds. oil and gas producer apache is said to be selling its stake in the l l.n.g. product in western australia. they're in early discussions with potential buyers on the wheat stone deal. apache announced last year it would sell nearly $10 billion worth of assets as it seeks to cut its debt. that's of the roundup of the top
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corporate headlines this hour. >> travelers in china will soon find it easier to get a luxury ride around town. chinese taxi booking service kuaidi is adding high-end cars to its cab offerings. roz is mere with more on this. kuaidi, what does it mean? >> quickly. kuaidi actually means to quickly get a taxi. and it is an app backed by alibaba, taxi booking app and already very, very popular in china. has like 100 million users and tpwhupets to add luxury-end cars to its range, which means things ike audis, buicks, b.m.w., s-class cars that you can glide around in comfort of a nice, slick car. it's launching a new app, e-how, kind of like number one special car. with this website, it's actually a phone app. you can then book these cars
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very, very similar to other high-end car booking apps which are out there. >> like uber? >> that's right, like uber, which recently entered china. >> that's right. >> so it is taking on uber at its own game here. it's basically saying there's room in this town for both of us. uber kind of has been in the class of its own recently because there is no one in the luxury high-end market. >> this is uber now this person is using? >> yes. this is in tokyo actually. there's no one at the high end of the market doing a taxi booking app in china so far. but now kuaidi is moving into that arena. in fact the c.e.o. dexter said its service is very similar to uber's itself. they both offer high-end, uber also offers wi-fi in the car, phone chargers, water, sort of added extras to the service. the base fare, there's also a fare per minute or per
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kilometer. similar to demiped of booking service except that the base fare is a little higher depending on what kind of car that you decide to pick. >> what are they really driving at here? >> i like what you did there. sentially for kuaidi, backed by alibaba and its archrival, backed by tencent, these are actually just portals to get people to use their other services. so their mobile payment services are a big thing. also anything from real estate to booking cinema tickets, these are all things which are being offered by both alibaba and tencent. this is just a section, very small section of what they can do. of course, uber is in the market as well. the thing is with uber, in the chinese market it's not as well known as kuaidi. and kuaidi now with the launch of this luxury end is really
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pitching itself with uber and we will see how uber does in the coming months in china has it continues to roll out into more cities. currently expanding into 14 cities in china. kuaidi at the moment is only rolling out in beijing, shanghai, be so there are a few more cities that need to be targeted if they want to reach the uber will have. >> i don't know if this is the right metaphor but it's almost as if instead of one app, tencent and alibaba wants to be one-stop-shopping app on all platforms but using that common platform, almost like walmart i guess for online to offer everything to everyone. >> something like 500 million people accessing the internet through their mobile phones now in china. so this is a huge market. if you can capture the majority of it and get people using your app to have your services, you have already kind of won the game there. >> and that is the long game. thank you so much for that. still to come 0 -- final countdown to the indonesian
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presidential elections. the sparring intensifies as candidates fight it out in the last debate.
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>> indonesia's presidential candidates traded barbs in the final debate ahead of this week's election. the neck in neck race is seeing both contenders promising to fight in the country ranked among the worst in the world. let's get more from our southeast asia corespondent. has, graft is grass is a key issue but in this race particularly so. >> oh, yes absolutely, it's an issue that resonates with the people. after a decade of stagnation, widespread corruption, voters in indonesia had it. they have no bones but wanting a cleaner government and both candidates, joko widodo and
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subianto are committed to fight corruption. i want to give you an example, illegal logging and mismanagement. this cost the government more than $7 billion in state coffers, particularly 2007 and 2011, according to human rights watch, more than its health budget. internal report also shows that government officials may have siphoned 20% of the total loan intended for the country over a period of 30 years. bureaucratic corruption has stifled development. this is a country rich in resources. we are talking oil, gas, coal. they make up 65% of the country's exports and even though chinese demand sparked commodities boom, indonesia failed to meet its 7% growth target. they were not built, company's agency, it's convicted the likes of moneysters, c.e.o.'s and even central bankers. ang?
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>> what do the political nalysts say about prabowo or joko victory? >> subianto can mean a more closed society, he is a military man. he was a former general, some say he's been beating the nationalist drum. he's capitalizing on another country and indonesians are seen of being tired of investors coming in and taking a lot of money out, particularly in the mining sector. prabowo, former general closely linked to the previously dictator. as for joko, he is seen more inexclusive, open-style government. his proposed changes according to some observers are not so much in terms of economic reform but bureaucratic reform. his campaign pushed image of self-made man but his own political ties to former esident is raising big
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questions about what role she will play should he become the president, whether he will end up being her puppet. angie? >> well, let's get more insights now. bring in our next guests. joining us live from sydney aaron connelly, research fellow at the lawy institute for international policy. aaron, thank you so much for joining us. give us some context as to why this is so important. >> well, it's extraordinarily important election for indonesia. it's really a decisive moment for the country. we're looking at a country that has a major financial problems and also making a decision about the direction of its democracy. for subianto, as you heard, pledged to roll back some of the aspects of democracy, including direct presidential elections, the one we're about to see in two days. it will be watched closely by those of us who care about indonesian democracy but also investors should watch this
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election closely as well. >> that certainly came up over the weekend's debate. the last debate as they went face to face. talk about exactly what prabowo said and hinted at as to whether or not indonesia should go backwards when it comes to its democratic growth. >> well, prabowo has repeatedly sent mixed signals on his attitudes towards democracy. telling indonesians a culture forum two weekends ago that democracy may not be particularly compatible with indonesian culture but telling diplomats a few days later he's definitely a democrat, not an an autocrat and he will obey the constitution if elected. he did not say whether or not he would try to change the constitution. we don't have a very good sense of what prabowo would try to do when he gets into office. more important question i think is what would he be able to do. indonesia's political system is likely to fight prabowo tooth
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and nail if he tries to claw back some of the privileges of the legislature and constitutional court. >> prabowo is tied to the shheartio regime, former son-in-law there. he's admitted head of the army strategic reserve command he kidnapped student activists. how has this person with this kind of very controversial history been able to really narrow the lead that joko enjoyed in now to basically within the margin of error? >> it's a really remarkable comeback. we expected that some of the 40% gap would be closed as alternative candidates dropped out of the race and that support went to joko but prabowo has run an extraordinarily effective campaign, turning his liabilities like human rights record, into assets by telling indonesians he's the firm leadership the country needs at
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this particular moment. many indonesians if you talk to them accept pro bowio has checkered history on human rights but they say those things are in the past and they will let it go. i should add many indonesians do not and continue to consider that a very important part of his record. but the compaign he's run has been extraordinarily effective, also extraordinarily well funded. getting out the vote. he also has two media magnets on his side. together television stations have about 40% share of the indonesian market. and they've been selling the campaign pretty vigorously as well. >> what has joko done that has allowed this lead to shrink to basically nothing? >> we said back in april after the legislative elections this as joko's race to lose and unfortunately, his campaign has done its very best to lose it. poorly organized and poorly funded. he's relied primarily on dispersed network of volunteers as opposed to the party
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infra12rur, reluctant to support him because he didn't come up through that party infrastructure. but it's not been a well-run campaign. frequently runs off schedule, leaving supporters waiting for hours to meet him. and then he will come and give a speech which sent very rousing. prabowo is good at nationalistic, bombastic speeches. joko wi is soft spoken and has not incited the same level of passion campaigning through the countryside. >> well, it's an exciting race nonetheless. as these two are neck in neck. aaron connelly, louy institute for international policy, thank you very much for giving us definite important context and perspective on this race. just in a few day's time, we will know the result of the poll. you don't want to miss bloomberg's live coverage this week including special show with our southeast asia competentant has linda. still to come -- dialing up
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telstra. the australian mobile provider on the hunt for asian partner coming up.
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>> welcome to the stock exchange. let's demeck on what our reporterses are watching trading under way in asia. how are you doing? >> the big return, on the knee nikkei, and -- thanks to djokovic, who won wimbledon yesterday, seventh up.d slam, his sponsor is >> that's serious in the pocket. david, what are you going to do? >> my stock has waiting of .3%,
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but it's biggest point on the topic since broader index. 4.3%. >> point/counterpoint. >> i don't know if anyone noticed this went into positive territory. >> i think i missed it. >> .1%. it will come back hopefully in the next 30 seconds. telstra in folk -- focus because n.g.t. may be interested in teaming up with telstra to expand its business in the asia pacific telstra's business. doesn't have scale and looking for bigger partner to do so. c.e.o.'s targeted 33% of net profits and revenues from asia by 2020. this will pick up snicked now. >> we're waiting. we're all holding our breaths. >> i am. thanks, guys. that's the verdict from the stock exchange. picks are based on news events, heavily weighted or not. that is it from us.
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"first up" for today. "on the move" is up next. we have a lot more for you. stay with us.
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>> good morning, everyone. i'm rishaad salamat, live in hong kong. this is "on the move." captioning made possible by bloomberg television] >> getting selected, targeted stimulus in china. the i.m.f. make up forecast for global growth as rebound falls short. and 19 buys, no holds and one sell. analysts love malaysia. we will talk to the chief executive. angela merkel's in beijing to

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