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tv   First Up With Angie Lau  Bloomberg  February 22, 2015 6:00pm-8:01pm EST

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♪ >> the hard work starts now. greece won a battle, not the war. boss sheltered millions in switzerland. the last of the super fights, the big numbers behind many employed. i amme to "first up." angie lau. debt tragedy won a
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reprieve on friday with a four month to its current bailout program. it's not what the government wanted, but it does give them breathing space. he puts forth new reforms and increase must wait a week to see if they pass the test. -- greece must wait a week to see if they pass the test. what they wanted was not the extension, the au. promisingnto power the people what would not happen again. cyprus and the great prime minister talking about winning the battle. here he is addressing this after
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what he calls a victory with the european ministers. >> we won a battle, but not the war. the difficulties, the real difficulties, including those related to the negotiations and our relationship with our partners, are still ahead. >> bottom line is the troika continues for another four months. the bailout extension promised for months. o, the old reforms will stay. what they can do, propose uniforms. but will they include? -- what will they include? we look at ideas. two, tackling tax evasion. it could create an independent tax authority with legal safeguards.
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acts, special privileges, pensions. those are the possibilities they could put forward, a three-page letter towards the european finance ministers. they will have the week to think about it. by friday the extension expires officially. a tweet, our form list is almost ready. rumors we had dispatched it already to the commission are false. it will happen today. >> it will happen today. i'm curious how greek banks have reacted. week mixed.shed the at the same time, the big concern is liquidity, cash.
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money is an issue. for the time being, it is a four-month reprieve. excepted, and the greeks and press the rest, especially germany. >> thanks for that. a check in on markets this morning. see how asian equities are responding to this. in australia, starting the first trading day of the week with fractional gains. yes trillion dollar is unchanged at 78 u.s. cents. this is the view of new zealand, also gaining 1/4 of 1%. counting down to the opens in japan and korea. let's head over to japan.
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friday, the close on .xtending a 15 year high more thoughts on holding off or continuing stainless? -- stimulus? we will get guidance there. the dollar yen slightly flat. markets are back from the lunar new year holidays, but there are a few that are still closed. they are china, taiwan, and vietnam. onlyafter australia's steelmaker has announced strong first-half earnings, it is down close to 10%. let's get to paul allen in sydney. looks like lower commodity prices are playing off bluescope
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steel, right? >> bluescope's costs have been significantly low. there is also been higher residential building activity in australia, which has been helping kick along the domestic market here. net profit of 92.7 million, up 26% on the second half of last year. sales up 9%. the market has not responded to this very well at all. the firstoff 10.5% in few minutes of trading here in australia, the biggest drop in six months. blue scope steel will be offering shareholders an interim dividend of three cents per share. bluescope down very heavily in
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early trade. >> tomorrow it's a big one, when it comes to bhp reporting earnings. what is the market expecting? >> analyst are expecting a pretty big drop, 36% drop in net income from bhp. the average estimate of 4 analysts rings in the earnings the first billion for half. we saw the same thing with rio tinto a couple of weeks ago. and oil have been down very heavily recently. rio has been cutting costs to chase that price down. we can expect to see something similar from bhp. down to expecting cuts 10 billion in 2016. bhp may see upside from the the company of their
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non-core assets they will be listing separately. holds, 1 sell. we will learn more about that tomorrow, angie. >> thanks, paul allen. we are going to get more on bluescope's earnings from the ceo himself. paul o'malley will join us in our new show, "trending business to get after 10:00 a.m. hong kong singapore time. kaiser saysbuying competitors must allow it breathing space. the resolution of the company's debts is a condition of the sale. drug maker will buy sale x for about $1.10 billion.
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rose on friday almost completely illuminating any premium in purchase price -- eliminating any premium in purchase price. companies on the tokyo stock exchange may be required to have at least two external directors. the plan could be published as soon as tuesday. the so-called third arrow of shinzo abe's economic reform places a priority on corporate governance. budget day in singapore today. the finance minister is expected to announce higher welfare benefits in lome be the administration's last budget before the next election in 2017. linda auman joins us now. what else are you expecting? expect welfare benefits, social spending for those in need.
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this budget potentially the last before a general election is called. at the last election, the ruling party won by the smallest [no audio] expect handouts for the low income, the elderly -- the income gap has widened, and the aging population is rising, accounting for almost 1/4 of the 5.5 million people. there's a need to help them cope with escalating prices. billion being set aside for that. people we talked to also expect to see a boost for companies to encourage productivity. productivity still lagging below its target of 2% to 3%. local workers have to be more productive. an incentive program, which was expanded last year, may be extended yet again. singapore's growth slowing, 2.9%
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last year. the government faces a huge challenge in raising productivity levels may help do that -- and raising productivity levels may help do that. >> we also have developing news with singapore's founding father , being hospitalized here. what do we know? he has been hospitalized for about two weeks for severe pneumonia. he remains on mechanical ventilation. he is conscious, lively sedated, according to a statement from the provinces. the public will be informed of any significant change. lee kuwan yew was the first elected, the man credited for singapore's economic miracle, they say. is a current prime minister. he has been in power since 2004.
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he was hospitalized himself recently to be treated for prostate cancer. he is expected to recover fully. >> thanks for that. get more on all the day's top stories at our new digital destination. bloomberg business, bringing the best of bloomberg news and digital content all at one address. that is bloomberg.com. check it out. still to come, greece it's a four-month deprave. the next few hours -- reprieve. the next few hours can be tricky. ♪
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>> checking other stories making headlines around the world, people are feared dead after a ferry capsized in bangladesh. the disaster happened about 40 kilometers from [indiscernible] there were about 140 passengers on the ferry when it was hit by a cargo ship. it's not clear how many people are still missing. was found toerry
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be carrying more than 200 when it sank. queensland is clearing up after a cyclone. the storm weakened from a across theve system coast. it brought strong winds and torrential rain. early reports say more than 1500 homes were damaged. bane, australia cricket world cup game against bangladesh, was abandoned. astronauts on the international space station have carried about says ised out what nasa one of the most complicated jobs in history. they routed 200 meters of new cabling along the hull. two more spacewalks will be required to finish the job, one on wednesday and one on sunday. a look now at the big events we
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are following for you this week, the latest check on australia's commodities sector will come on tuesday will, with bhp's bulletins due to release its results. india to see its longest bank strike ever, starting on wednesday lenders across the country will begin labor actions higherr days, demanding wages. bank employees say they may later also go on an indefinite strike if their demands are not met. lee is reorganizing his empire. we may hear more about his plans on wednesday. analysts are projecting a rise in profits at those companies last year. on friday, we will see the sentencing of a hong kong woman. the woman was convicted on 18 charges, including gravy us bodily harm -- grievous bodily harm.
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joining us now from singapore, the founder and fund manager at luminance global fund. .hanks for joining us today how is this war going to end, in your view? >> good morning, angie. thank you for having me. greece is unlikely to exit in the background of qe. we still got another 10 months this year, and another nine months next year, have continued bond buying from the european central bank. it's going to be a roller coaster ride. we had the new deal. it will be taken to the parliaments of all the eu member states. the market is very bipolar and it is reacting to every news.
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every day over the last month. broad context is that it -- is that greece is likely to stay in the european union. greek parliament, the greek ruling party move more to the center. that is what has happened here. investors are really reacting to the smallest bit of news, even tweets coming out. what do you think they will react to specifically this week, and not necessarily greece, but what do you see on the horizon this week the could be moving markets? the european markets will react for a well. qe is generally supportive, leading to higher prices in the u.s. and japan. we will see eu join the party. we will seek and -- increased
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asset prices over the european stock markets over the next several months. this is repricing based on monetary easing. world, theund the u.s. is the most productive economy and it is showing the most signs of growth. being in u.s. dollar assets is probably a good thing to do. i'm spending a lot of time on brazil. there's no good news insight. -- in sight. in terms of stocks, fixed incomes, derivatives, what is a good strategy to play right now? what would you keep and what would you sell? >> in general, i like to go into areas where there is a good chance of a depressed seller. energy bonds are credit crunched. we are seeing banks likely to pull back.
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this leads to a response from the oil companies. the oil companies with hedges in place need to produce a lot of oil. the companies do not have good hedges. they will overproduce in the first of this year because they are trying to make sure they can keep the bondholders happy. creditg a lot of time on in energy is a good use of time than other places where there are crises. we have seen brazil having good opportunities, both in equities and bonds. the currency is that a 10-year low. gdp is likely to be negative this year. inflation is at 7%. you have negative yields in brazil, negative real yields for investors. india 2, 3 years back when everything looked bleak. these are some of the interesting areas right now. >> we are seeing a turnaround right now.
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in terms of other emerging markets, do you think you will at least see more strength and what the challenges are facing brazil right now? u.s. dollars strength, we know that real economic growth is coming from a lot of emerging markets. we will continue to see growth in the real economies of india and china. prices, it isrket hard to say which markets will move up. a strong economy. it is showing the right signs. but the markets are expensive. the sovereign bond lay is interesting -- play is interesting. i have invested in indian sovereign bonds for three years. we're inexpectation -- the start of the easing cycle. we will probably see some more sovereign prices.
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it is a tactical position you could take. 15 central banks around the world when it comes to easing this year. alright, we are going to leave it right there. thank you for joining us out of singapore today. coming up next, getting back to work. the u.s. labor standoff ends. ♪
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goods and parts that cross the pacific are slowly returning to normal after a bitter nine-month labor dispute at the ports along the west coast of the united states. a reporter has been taking a look at the issues involved and the impact on asian companies thomas who certainly felt a ripple effect. atships have been anchored sea because sports are trying to work through this backlog. this labor dispute protracted, -finallyers there's - coming to an agreement after the u.s. labor secretary intervened. president obama sending the clinch a deal here. he set a friday deadline. that is when both sides came to this agreement. they averaged a tentative five-year contract. it still must be ratified by the union members. this will open up hopefully ports all the way from san diego
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to bellingham, washington and washington state. it is a huge backlog that is impacted the u.s. economy, and he could have had an impact of $2 billion a day. >> huge numbers, ripple effect is huge. any idea on how long the backlog is going to take to be cleared? >> you see dozens of ships out at sea waiting to enter the harbor. san francisco, the port of long beach. in los angeles, which is the busiest in the nation, this backlog could take eight weeks according to the pacific maritime association. car companies spending 10 times to fly come -- money parts across the pacific ocean. that has been good for the airlines, not necessarily the car companies. >> or the bottom line. >> nintendo seeing delays in its newest products, its newest game . game products that had
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been held up, not available in u.s. stores because those ships sitting at sea as a result of this backlog. >> fans of mcdonald's fries were disappointed over the past couple of months, but that has been cleared up with air shipments as well. crimp on the global supply chain your. >> it took the federal government stepping in to try to end it. >> thanks for that. coming up next, the allegations nit.t hsbc's swiss u ♪
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>> it is 7:30 in hong kong. we are wrapping up the lunar new year holiday. from february 18 to the 21st, nearly half a million arriving onshore here. we are 30 minutes away from that opening of trade in japan and korea. you are watching "first up." leaked files show hsbc's booss
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sheltered millions in switzerland. india's corruption crackdown widens. the big fight of the smaller ofs, battle for the crown the best boxer in the world. good morning to you. i am angie lau. hsbc will report later in the u .k. litigation costs may dominate the agenda here. to deal withng allegations that its swiss units helped clients dodge taxes. what can we expect? >> it will be a tough year, and even tougher month for hsbc. analysts are expecting profits to fall. 3% fall over for the year 2014. they say earnings being eaten away by operating costs there. as the ceo trying to
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make a clean break from what has been going on the past month there. they can't quite escape the past. new details on how they help clients dodge taxes in the swiss private bank, saying sorry, this is a painful experience for us but we are trying to change how we do business for the company. that comes after a nearly $2 billion fine in a latin american unit after helping drug curled tails -- cartels there launder money. cut to 70% of accounts from the swiss unit, spending billions on compliance. are expecting to hear a lot from this conference call after earnings come out today. they are facing pressure from the treasury about bonuses for the year. we learned from sources and reports say that gulliver may be unaffected from these swiss allegations, expected to get $2
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million in bonuses this year, 11.5 million dollars total compensation. again, the treasury talking to sayingnancial times," these signs of bonuses could be harmful in terms of sentiment for his customers. >> it sounds like he may have tried to shelter much of it. gulliver under fire himself for allegedly having his own swiss account. >> that is according to a new report coming out. they are saying that he had millions of pounds in a swiss account through a panamanian company. he was a beneficial owner of an account in the name of worchester equities incorporated, an anonymous company registered in panama containing a balance in 2007 of $7.6 million.
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a lot of questions there in the conference call today. thank you so much. the indian prime minister is taking on some of the wealthiest people in the country as part of a crackdown on industrial espionage. sherry and is here with the story. what is this about? >> the government has launched this investigation into documents stolen from their offices. they don't want these files to end up in newspapers or companies with vested interests. last week they arrested five people. over the weekend they arrested seven more people. the key issue here is that the employees come from those biggest companies in india, those big conglomerates. they are controlled by the country's most prominent tycoons. you also have these other companies. , whenll started last week
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they seized these employees allegedly tried to still documents from india's oil ministry. >> but it's all about transparency, isn't it? big,n conglomerates are so but investors want to know what is happening. >> allegations of corruption, of crime has shadowed india's government for years. you have past incidences where selling scandals over airwaves, allocation of coal deposits. now you have analysts saying, these recent arrests will be great for india, for the prime minister's image. investors will feel happy that they can now have such a clear message on corruption issues. india stocks and currency have been soaring. he pledged to get rid of corruption, to boost economic growth. now you see power sweeping to
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power in may. the index up 40% in the last year. >> added the investigations unfold? >> -- how did the investigations unfold? >> five people reenacted how these crimes took place. government officers will actually open the doors for , would duplicate keys, let them in, turn off the documents onll the the desk, they would photocopy them and send them to petroleum companies. have recovered stacks of documents from the coal, power, and oil ministries. they range from details of cabinet meetings to oil import data. >> that is incredible. talk about espionage right there. thanks for that. time for a look at some of the corporate headlines we are following for you. fewer chinese shoppers
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splurging on luxury leather handbags. prada, plans to open fewer new stores in 2016 and win back buyers with more bags. a judge dismissed an anti-trust lawsuit. the judge gave complainants three weeks to amend their claims. lawmakers there have called for the company to be broken up. disney has raised ticket prices at its flagship magic kingdom park in florida to above $100 for the first time. admission costs have doubled at the park since 2003. ticket prices at disney's of the resorts have also risen.
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the company earned $50 billion in revenue last year. >> china's slowing economy and the crackdown on corruption are starting to show up in the capital account. outflows of money are searching. that is putting further downward pressure on the yuan. households in corporate are looking further afield because of diminished returns at home. >> it's never easy to follow the money trail in china, but the numbers out may be telling. non-fbi federal outflows swelled, and more than $320 billion for the full year. has a lot of savings. people also have diversification needs, maybe put some of the assets in foreign countries.
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mayanticorruption drive also lead to capital flight as well. >> more chinese are investing in the u.s. maxed out 10,000 approvals by the u.s. government last year went to chinese, who can get a visa or green card by investing at minimum half a million dollars. just buying a house won't cut it. the dollars must be from projects creating at least 10 new full-time jobs. that is where christine lee comes in, matching chinese money to valid american ventures. >> before the program was only for very rich people. then for rich, not very rich. now i see for middle-class. >> lee says the majority of her u.s. clients seeking green cards do so so the children can study in the united states. >> it used to be just graduate students and college students. now you see high school, even
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elementary school. >> green cards and education are not the only reasons why people would be looking at the west coast of the united states for investment. i know seattle is known for its gray skies, but not industrial gray like this. believe me, this is a big selling point. and cheaper properties. seattle area real estate agent joseph ho often takes clients out on the water to not only woo them to buy a new home, but to the american way of life as well. >> over the past few years i have seen more and more chinese nationals visit our area. they are not necessarily looking to immigrate to the united states, they just know there is opportunities here, they owned businesses in china, and they like to diversify a little bit. a phenomenon seen elsewhere sydney.rid to >> prices have been out of
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control. it's becoming a policy issue. >> will the u.s. see a similar backlash? i don't believe that. i feel america really need this kind of investment, create more jobs. that's all we need to talk about. >> and ensure that the source of -- living on sure isn't fishy. -- onshore isn't fishy. >> coming up, red carpet time of year again. how to make winning movies. ♪
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official review of the sydney coffee shop the left
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three people dead since the authorities should make operational changes to lower the risks to the public. why a many looked at was able to take 17 people hostage in december when he was on bail with a history of violence and extremist sympathies. australia's immigrations, firearms and justice policies should all be updated. shipments across the pacific are starting to get back to normal after a nine-month labor dispute on america's west coast. the argument about arbitration in the workplace had affected courts from san diego all the way to portland. first several asian companies to ship goods by air, more than 10 times the cost of sending them by sea. a diamond dealer from gujarat has paid almost $700,000 for a monogrammed suit. patel won the bidding, and the money will go towards the fund
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to clean the ganges. the prime minister were the suit when he met president obama. criticized for displaying such ostentation. speaking of austin tage is, it ostentatious, it is the biggest night of the year in hollywood. among the movies up for award is "x-men," "days of future past." is nominated for best visual effects. the artists involved are from digital domain. los angeles is the ceo. you get two tickets to the oscars, but you are giving it to some of your people who work on the project here. congratulations on the nomination. what do you hope to achieve tonight in terms of validation of your work? >> thank you so much for
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advising me. being a nominee is an honor. i expect just like many others, if we win it, it will be a long night for party. if not, we are honored to have a nominee. >> it will still be a long night of partying, no doubt. all of hollywood really celebrating tonight. the less how you got this nomination. we know that cgi is a critical part of moviemaking these days. tell us about the technology you are employing. actually, wemain are the company funded by the legendary director james cameron 21 years ago. you just say that because two years ago, two and a half years ago, our company -- we changed our name to digital domain holding. this company, we have won 10
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awards before. for theseminar many special effects, best special effects before. get the numbern 81. we have a special technology called virtual human. i wonder if you know about the movie we make before. brad pitt, when he was born he and become his0, normal age. the same technology that we use from many purpose, for example two years ago [indiscernible] our company, digital the main, has a unique technology that we can make virtual human. >> it is incredible. it's magic.
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you watch some of these films -- i watch "transformers" and i have watched "x-men" and "benjamin button." as an audience member, you often scratch your head at how you do it. what can we expect as a global audience for future projects? what is in the pipeline for technological advancement in moviemaking? for example, technology is changing very fast. for us, the virtual human technology is like the holy grail. human is the most complicated things. see, we signed the contract for 10 years. i believe the future is we are not only making like very big special effects, like "transformer" one, two, and
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human for special effect industry is the holy grail, the ultimate goal. >> are you telling me that you could replace the human actor with computer-generated human? >> yes. >> really. actors around l.a. are going to be shaking in their boots. we can make a virtual human it is required skill. the virtual human is a whole new area. one ofre working with the biggest agencies in the world today, talking about if we all the servers today, their best image to the world, so when they are 60, 80, they
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can still look 20 in front of audience. >> incredible. who can pass away and still participate in a movie, and all the fans still member the best age for them. >> -- remember the best age for them. >> we are watching live pictures from the red carpet in l.a. expect you will probably prove us wrong, for those of us who don't believe it. thank you so much for joining us out of l.a. good luck to you tonight. the fight the boxing world is been clamoring for is finally going to happen. it is many versus floyd in las vegas. floyd in lasus vegas. the time is come. >> finally. floyd mayweather broke the news over his social media account friday evening.
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up to that break. it is one of the few sporting events that you actually have a lot of the sporting networks scrambling to break the news. what do we have? two of the sport's biggest stars, each expected to take home their biggest payday yet. this is expected to be the single highest grossing sport event am a single matchup, in history. let's take a look at how these two match up. floyd will be 38. manny will be 36. on the line to expect have a chance of giving him his first list. -- loss. [indiscernible]
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>> why is this fight so important for boxing as a business? >> is expected to break all sorts of records. floyd actually fought oscar de la hoya. all sports to some extent have in the breaking and -- mainstream, as far as boxing is concerned. oryou were to put aside one two hours of your life to watch a single boxing match, this would be it. may 2, las vegas, mgm. mid-late morning here in asia. >> all right, thanks so much for that. we have a lot more coming up. back to you in a moment. ♪
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stockl come back to the exchange.
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we are taking a look ahead to the open in japan and south korea. good morning. >> good morning. i'm headed over to japan to look at takata. the u.s. says they're going to fine the airbag maker $14,000 millionup to $70 because they have not really helped, they have not cooperated in speeding up those investigations. >> that is huge. it is double what other automakers are being fined. now they are getting two special orders. per car? >> no, just per day. to speed up the investigation. >> it adds up quickly. we love to talk about the rivalry between samsung and apple. it continues. the mobile payment spaces where the news is today. samsung has done an acquisition. it has bought a company to gain
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a bigger foothold in mobile payments. we know about apple pay. samsung really boosting its competitiveness with its acquisition. one other story today involving pharmaceuticals, this is the total opposite direction. there is a report in a newspaper that the swiss drug company will outsource production of the blockbuster cancer drug to samsung. a report citing unidentified sources, but that is a large drug. the pharmaceutical division could get a big boost if it starts to produce that drug. >> i'm taking a look at a manufacturer. announce thato they will be building a refinery for aircraft biofuel in japan with chevron, plans to have that facility up and running in 2018,
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the first in asia. >> lots to keep track off. thanks, guys. that is the verdict from the stock exchange. of course, we will be back in an hour.
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war --n numeral: not a winning a battle, not the war. millions inred switzerland -- shouldered millions in -- sheltered millions in switzerland. ," i am to "first up angie lau coming to from our hong kong headquarters
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-- coming to you live from our hong kong headquarters. we are seeing the australian dollar strengthening, japan is just opening but before the opening we had boj with minutes from policy meetings agreeing that the japanese economy is recovering, the nature to five points pointing -- nikkei futures pointing to ups. weaker yen is helping exports through as well. that is the sentiment, it is at 119. kospi getting underway after a three-day holiday last week, the lunar new year. we are seeing a strengthening won, a divergence from the weaker yen. from theets are back
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lunar new year holidays including korea but there are still a few closed including china, taiwan, and vietnam. ae greek government walked high wire act over the next 24 hours. they have to come up with financial measures that satisfy creditors and his anti-austerity party. john dawson drones me with the latest. roika, to do with the t get the approval letter. but he won on electoral platforms. -- hehink you lost a lot lost a lot because he has to go to the party to say that he lost the four-month extension drew the bailout and not a loan. but completely backfired.
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-- that completely backfired. the cap forward his own proposals -- he can forward his theproposals but the key is and thes going forward remainder of this week when the extension expires on the 28th. the rest of europe will run debate, talk about, and to them. this is them talking about post friday. we wanted about all but not the war -- won a battle but not the war. the real difficulties including those connected to the negotiations are still ahead. thehe crucial thing is 94-year-old resistance fighter left in the ii, far party.
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quote "i asked people to forgive me for contributing to this illusion --o the best illusion illusion." being theon extension. first of all, what could come forward. ministers,sent to there is a tweet. the formula is almost ready so rumors are for. -- reform was is almost ready so the rumors are false. cottage -- caps on many see a tax on tonnage. also tackling tax evasion. engines, special privileges and dealing with the
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bank concerns. those are the possibilities. >> those would be good for the average person. >> exactly right, it is about a person on the street suffering significantly since the great depression in the u.s.. >> they are so concerned that have been going to the banks, withdrawing money. concerns about the run on banks, our ranks reacting -- how are greek banks reacting? >> very volatile, you can churn was a cash crunch, money -- concern was a cash crunch, money running out. there is liquidity assistance. the national bank of greece is declining,euro bank the biggest bank down 2% over the course of the week. it is quite mixed so uncertain times.
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the big concern was a run on the back, if that had happened, the government would have been facing a bankruptcy and with the banks, people charging in for the money. >> a significant difference, the troika over the bailout agreement and that leaves there is a sense of coauthorship. >> they have some breathing space. but the government did, with a promise, no more bailout that come out with a bailout -- come out with a promise, no more bailout. >> promises off and way to reality. -- often give way to reality. we bring together the best of business moves and digital content in one address, bloomberg.com. check it out. the company buying a chinese developers as the creditors must give them -- says that the
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creditors must give them breathing space. they won't suspension of repayments, -- want suspension of repayments and the resolution of that is a condition of the sale. pharmaceuticals expected to gain after they sign off on an acquisition, a purchase adding gastrointestinal drugs to the stable of offerings. investors will be. whatever fifth-year dollars a share. $158 a share.ried and they moved to reform corporate governance in japan, companies of the tokyo stock exchange may be required to have two external directors. the report could be published as soon as tuesday. third arrow of the reforms pushes a priority on corporate governance.
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bc reports later in the u.k. and analysts are expecting profits to fall about litigation costs a dominate the agenda because hsbc is struggling with allegations that the swiss unit helped clients. traffic -- dodge profit. >> -- taxes. expecting profits to drop 3%, pretax estimated 23% to $7.2 billion earnings. there is a rise in operating costs. hsbc trying to clean up the drama we have seen in the past month or so. cannot quite escape the sins of the past with the tough call. details and allegations with they have gone taxes -- dodged taxes and the swiss unit, they
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have taken out a full-page ad is they are sorry. ais is after they have to pay $2 billion fine for helping drug cartels wonder money -- longer money. -- launder money. they have spent billions on compliance and are facing pressure from the treasury on bonuses and how they will be dealing with that this year. according to the sunday "times," set to get $2 million in bonuses this year in total compensation's $11.5 million. some of that will be alleged rigging of currency markets. there has been a lot of criticism, for u.k. treasury "financial times" that the board needs to consider carefully how they are going to give out the bonuses because it
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will give a strong message to customers overall. >> and more allegations, stuart gulliver at his own swiss bank account? >> -- having his own swiss bank account? >> according to "the guardian." the had his own account through a panama company registered as an anonymous company with a balance of $7.6 million in the name of dorchester equities incorporated. 5 million pounds in the was account overall. that will be a big questions. we look forward to the u.k. hearing were the chairman of his questions about -- where the chairman will face questions about his role during the allegations, gulliver will not be there but flint will take a battering. >> we expect more when they do the investor call later today. steel plunging after
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australia's only steelmaker announces results. this was a decent result for bruce go, why the selloff? >> it a strange one, isn't it? there was weakness in the iron with falling steel prices compressing the margins but all in all it looks to be a good story this morning. earnings, net profit $92.6 million up 26% on the second half of next year. sales were up 9%, domestically they have been doing very well, raw materials costs have fallen significantly in terms of iron or and coke and coal. benefiting from a boost in residential construction, good news for shareholders after offering new dividends -- no
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dividends last year they are offering three cents. a good story that makes the heavy selloff confusing although it has bounced back, 6.5% after being down 10% in early trade. a lot of markets have dropped them like a hot britt. -- brick. people itbe for some is time to buy. paul allen, we leave it there, and you for that. going with the flow. our next analyst says that global liquidity will not dry up even if the fed hikes the rates. ♪
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>> it is a: 15 in hong kong and here are the stories -- 8:15 in hong kong and here are the
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stories. a review says that authority should make operational changes. the inquiry looked at why man was able to take 17 people with a history of violence and extremist sympathies. the review says that australians immigration and firearms policies should be updated. we give you a live picture of australian prime minister delivering a national event on security. will unveil counterterrorism measures and is expected to change the alert system. shipments across the pacific are starting to get back to normal after a nine-month labor dispute on america's west coast. the argument about arbitration in the workplace affected towards from san diego to portland and forced asian companies to ship goods by error at 10 times the cost -- air at
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10 times the cost. paidmond dealer has $700,000 for the monogram s -- monogrammed suit won by modi. the prime minister wore the suit when he met president obama and it cost about $16,000. he was criticized for displaying such ostentation. the also sold gifts that he received that he also sold gifts that he had received. lipstick take a look at the markets in the asian this -- let's take a look at the markets in the asian pacific, green arrows across the board on the heels of the great deal, a four-month reprieve but the government in greece has until today to come up with how exactly they are going to enforce this. fromon the market action
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the chief market strategist at jp analysts. these forms they have to submit still need to be approved, right? could there be a possibility this does not work out? >> i think there is a possibility that things can fall through given out for the greek government has been but i think it is important to recognize hot the eu has to put a plate, play hardball right now because there is not much at stake but bearing in mind the spanish elections. the unit configured firm stance need to take a firm stance on forcing reforms. towas a good strategy employee for europe -- what is a good strategy when it comes to europe because there are political timebombs? >> the good thing in europe is
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that we are seeing recovery help buy cheap interests -- buy cheap interest costs. it is not that bad a time right now so a good time to look at eu european equities will be to look for opportunities outside of the eu were the euro shot may not be as significant. denmark or switzerland or other parts of europe are adopting lose market models. >> 15 central banks and counting? becauserd to keep count things are happening so quickly but it is a divergence from the fed. at least we are seeing economic strength play out in the u.s.. is it too expensive? >> the european market? >> the u.s. market? >> the u.s. market is looking price the after disappointing earnings -- pricey after disappointing earnings but there
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are companies that are genuinely good at making money so from that perspective, being expensive never plays on a market, it is about earnings. >> what about fixed income and bonds? should people stay in or cash out? stay in the need to fixed income market because of the end of the day we have banks cutting interest rates with the exception of the fed. therefore the hunt for yield is ongoing. there are inime, the how markets or emerging markets, these are opportunities for the yield is attractive but not as solid as the u.s. treasuries or european, the pricing is lofty right now. selloff u.s.e treasuries and look for higher yields elsewhere like -- high-yieldple in the
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debt in the u.s. or emerging markets, we are seeing emerging-market debt. i think the attractive yields, for example 3% or 4% or above that, that is were the opportunity will be. >> what about opportunity as it pertains to oil? do you think it will go down or up? >> i think we have drawn a line in the sand around 40 dollars or $45. in terms of supply it will take a while before the response comes through so we may not see a sharp church in oil pricing -- sharp surge in oil pricing taking place. but we are seeing china by more moreor the reserves -- buy oil for the reserves. they are gradually restoring the equilibrium which will be $60 or $70 but in the short term there may be more volatility. >> it is the new normal.
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thank you so much for joining us, j.p. morgan asset management strategist. coming up, we will point out how news of the greek a lot extension is playing out in the currency -- they allow extension is playing out in the currency markets. headlines when we return. ♪
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>> i am david inglis in hong kong and it is monday, february
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23. greek and european officials agreed to a four-month extension of the bailout deal subject to approval from creditors. they will lead to come up with economic targets to satisfy roika and the austerity party. they have square demands with pre-election promises. speaking of the subject, the euro moved up slightly on friday, slightly unchanged. againstrading sideways the yen and rebound. any relief in the wake of the deal will be short-lived and the risk is in implementing it, markets focusing on spain for the radical left at -- where the radical left has been pulling strongly. singapore releases
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inflation data later on and they are expect it to show deflation for the second expect -- expected to show inflation for the second month. the number comes out at 1:00 p.m. hong kong and singapore time. checking on the euro, under 360, my mistake. they are saying it might be short-lived, figure look at implementing and the likes of spain were we are seeing the radical left gaining ground politically. as far as monetary policy is concerned, the divergence between the fed and the perception of what the fed will do this year, that is intact. the downtrend is still very much intact. those are the stories driving the market this monday morning. finance minister in singapore
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expected to announce higher welfare benefits in what may be the last budget before the next election. as haslinda amin joining us now. what else are we expecting? goodies fora bag of those in need and welfare benefit and social spending for the low income. is income gap in singapore rising and aging as well so they need help to cope with higher prices for health care for instance. as you said the budget is potentially the last before the elections, the ruling party would want to do better, it had the smallest margin "at the last one -- of votes at the last one and it may use the budget to show it understands the difficulties faced by the people. we may see a boost for
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companies, productivity lagging behind the target so the government may extend yet again an incentive program to help companies to help singapore growth. down, it has been challenging given the sluggish global recovery in the budget announcement tomorrow morning -- and the budget announcement tomorrow morning, he will be live exclusively in our studio. >> haslinda amin live in singapore. coming up, the fight of boxing world has been clamoring for. the big numbers behind manny versus floyd. back in two. ♪
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it is a: 30 in hong kong, it has been a foggy weekend -->> it is 8:30 in hong kong, it has been a foggy weekend but it is the start of the trading week and it is right if you look at asian equities. we will show you what happens later in hong kong, you are watching "first up." asian stocks head towards the highest close since september on
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the news of a bailout deal for greece. modi takes on the tigers of industry as the corruption crackdown widens. the big numbers behind manny and floyd. some bright spots across the region in the asia-pacific this morning, let's take a look at markets. 225 iss nikkei t extending for yet another day, that is the direction it is going right now, close to 1% higher. in south korea we are seeing games as well as australian --gains as well as australian equities. transpacific trade is turning back to normal after a nine-month trade dispute on the west coast of the united states and that cannot come soon enough for nintendo and other asian exporters. >> they cannot get products to
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the market, it is a simple explanation. many companies that has resorted to other means, air for example, to get products into the market. nintendo's president last week saying on a conference call that xl device in short supply because of this prolonged dispute. a resolution this morning after the u.s. labor secretary stepped in, it was an 11th hour deal on friday after the federal government, direct from the white house, ordered them to reach a deadline, they set a deadline of friday evening and we have a five-year tentative deal to bring workers back to the ports all the way from san diego to washington state. hopefully it gets traded moving again, this is nearly half of u.s. trade. >> we have been monitoring this months andfour
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people of had to airlift supplies -- have had to airlift supplies. there is a huge backlog, any idea how long it will take? >> it will take weeks according to the maritime association. these are the dock workers who have been at all was managers. withce -- at odds managers. los angeles is the biggest port and we have ships sitting at sea waiting to unload. there has been a shortage of equipment and this has led to traffic congestion in southern california, trucks trying to get into ports. -- had iton, 29 ports gone on, 29 ports would have been affected. the federal government stepping in to fix it. >> signs of relief across asia
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as a result. the indian prime minister taking on the wealthiest people in the company as a part of a crackdown on industrial espionage. it is an intriguing story, shery ahn taking a look at this. espionage. >> a clear case in the india so allegations are being looked at, they are being investigated and they follow government investigations that documents have been stolen from their offices and they want to prevent the files from ending up in newspapers and the offices of companies. five people arrested last week, seven more over the weekend and did key point is that these people come from india's biggest conglomerate controlled by tycoons including the brothers who own the reliance industries. there are other companies. >> challenging times for india's
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conglomerate. you look at the companies, >> allegations of corruption have shadow of indian government but now these investigations -- shadowed indian government but these investigations are casting a positive light on the government, people saying the investigations are unprecedented and this will boost india's imageas well as modi's and now investors can get a clear message against corruption. india has been among the world's best performers since he took office, you have a clear message of making it easier for businesses to work in india and boost economic growth. stocks see indian soaring 40% in the last year. mayparty can into our last -- into power last may.
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>> how did the investigation unfold? >> it is a clear case if they are true and last week five people reenacted how this would happen and government officers would open the door to government offices with the keys and people would come in and s andoff the cctva photocopy everything on the desk and sell the files. these files included cabinet meeting schedules, oil import data among others. >> giving people a leg up. that is not necessarily how to play fair. shery ahn, thanks for that. time for a look at the other corporate headlines. onchinese shoppers spending handbags, revenue falling. prada claims to look for fewer stores in 2015 and win back
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buyers with lower-priced bags. a judge has turned out in antitrust lawsuit against google saying that they forced android handset makers to use apps by default. they have three weeks to refile. they face a similar lawsuit in europe. disney has raised ticket prices for florida for $100 for the first time. admission costs have doubled since 2003. the park earns the company $15 million last year. those are the top corporate headlines this hour. the fight the boxing world has been clamoring for is finally going to happen, manny v ersus floyd. david inglis coming into the
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ring right now. him, what isnow going on in the boxing world. this is a big deal. >> floyd mayweather broke the u.s.,ate on friday in the saturday morning in asia. he broke it over a social media account and he has a stake in it -- side note. quote," i am very happy that florida and i can give the fans what they want and have waited so many years for. they have waited long enough and they deserve it" this is the most anticipated matchup in boxing history and it will be taking place may 2 in las vegas, two of the sport's biggest stars and six years of negotiation. beginf them wealthy to with an expected to take on the biggest purse yet. how do they match up? weather is slightly older, i
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think he will be 38. here we go, he is 37 and will be 38 at the time of the fight, he is from michigan and is based in las vegas. manny from the philippines. it will be putting his unbeaten record that he will be putting his unbeaten record on the line. 37 have tried, 37 have failed. has whatk that manny it takes to present a challenge to mayweather and the projected $120 million,her just the money from the fight, not including paper views. manny expected today, $80 million. -- to take home $80 million. >> he wanted thought talk about the business of ibaka -- you
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want to talk about the business of boxing, here it is. why is this fight so important? >> it is about eyeballs, any sport. this flight is expected to break all sorts of records, -- fight is expected to bring all sorts of records. the record number of paper views is 2.5 million subscriptions for the fight. that belongs to floyd mayweather when he fought the la jolla and -- de la hoya. will people paid $90 each? $89 for the paper to watch the fight -- pay per watch the fight? >> to watch it live. >> we have how much mayweather has earned over the last three were for fights and these figures are astounding, what top athletes and in a year, $10 million or $30 million, the makes that in one fight. -- he makes that in one fight.
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>> paper views changed the dynamic of the money when it comes to boxing. >> it up against other combat sports like mma. every sport has trouble reaching into the mainstream. aside an hour put or two to watch boxing, this is the fight everyone will. >> -- everyone will want. >> maybe i will watch it. year of twong for a halves, according to the next guest. why it is looking up later after the short break. ♪
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kong and8:45 in hong here are the stories making headlines. at least 48 people are feared dead after a ferry capsized in bangladesh on the padma river 40
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kilometers north of dakka. it was hit by a cargo ship. it is not clear how many are still missing. last year a fairy was found to was foundg -- ferry to be carrying more than 200 people. a storm weakened from a category five system but still brought strong winds and torrential rain to marcia. 1500 homes were damaged and the effects were felt in the capital of brisbane. the cricket game was abandoned without a ball being old. -- bowled. the prime24 hours as minister tries to finalize satisfiedmatters that
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with creditors and his anti-austerity party. he has until the end of monday to complete a list of policies in return for continued funding. the eu finance chief will decide if the proposals go far enough. these are anxious times for both greases new government and the people who voted against -- greece's new government and the people who voted against austerity. >> people are forced onto the street. greece's depression is here to see. underdogs, the greeks have gotten used to the struggle. >> i am not scared, i am excited. we have seen below. there is no -- the low. there is no lower than this. >> they won power by promising to change greece for the better but they risk ending up like governments in the past.
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in order to succeed they must maintain the trust of the people while taking risks with your. -- europe. mentality, it is the right ingredients to start to do ifething for our society but they are going to do the same years, is alast 30 really bad situation for us. surprised many people with growing support and perhaps the party can surprise the people in the way that it needs. tom gibson, bloomberg. they have reached a deal on .13.ailout, it is at one the dollar is at the highest level in a decade and gold futures, the rise is cutting
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gold bullion prices would 12.3 er,t and oil trading low just over $50. the reduction is over as it ramps up production. expects prices to remain weak in the first half but improved in the second. joining is the head of commodities research, mark. it looks like it will be depressed in the first half of the year according to your forecast but why do you think it picks up in the second half? >> good morning, angie. aok, i think it is very much production or supply driven story right now in oil. and weand is quite flat are seeing a lot of supply in the system and it is visible through the u.s. stock acquisitions so you see crude
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oil stocks at record high levels. that will start to unwind in the second half but more to the point, it is the very strong production growth we have seen in the u.s. shale production. it is direction rather than volume so we start to see a pullback in u.s. oil supply in the second half that trip start to see some of the investors returned to the oil market that have been heavy sellers. -- mayu.s. maple back esstimate,er your gu but we still have opec trying to fix the little guys out of the market, right? >> it is an interesting dynamic. thatu look at the spread, would imply to you that the supply side has a question mark
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over it and that opec is likely to accept the prices. we are seeing that in rising geopolitical issues, the libyan situation. there is some question marks on supply particularly in iraq we have seen a big increase, a 30% increase and there is concern that we see further tensions, that could be vulnerable. the big player, saudi arabia, keep prices capped. >> mar you may see the barrel half fullk, but a lot of other people -- mark, you may see the girl half full what a lot of people are seeing it half-empty, as low as $10 a barrel -- barrel half full bought a lot of people are seeing it half-empty, as low as $10 a barrel. >> there is conjecture on where the break-in level is.
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dramatically,very we have seen a 35% drop on oil redevelopment being put in -- rig development being put into the u.s. and a lot of that is development wells but those will be needed as production wells. i think you will find that the swing factor is already in place. the want to ask you about depressed commodity prices, we're expecting to see lukewarm results coming out of bhp but australian commodity producers, this is the challenge, right? >> very challenging environment. -- the this has been environment as challenged in the past few months. they are going to productivity and cost reductions, and we are seeing improvements. this is probably the best thing
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for the industry, a little wake-up call. it has been cyclical and is at the bottom of the cycle and they are focused on cost reduction and that is in the reports you are seeing. >> will leave it there. thank you so much for joining us, that is anz's global head of commodities research. up next, put a tiny water organism power the jet rocket of the future? find out what the market thanks after the break. ♪
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>> welcome to the stock exchange, let's check in on what reporters are watching with trading underway. market direction going up. >> not doing great because the great, theyata not are saying that u.s. regulators will find the maker $14,000 a
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day. because they have not been cooperative and off in helping speed -- enough in helping to speed up investigations of white airbags are exploding. last time we checked the stock was down 2%, not a great day. >> $14,000 a day? >> $14,000 a day. >> for a year? >> $11 million. >> that is a big chunk of change. speaking of that, there we go, takata down. samsung doing ok. another challenge to apple, the mobile payment space. pay,ay have heard of apple samsung is upping its game, buying a company that makes smart phone accessories that allow credit card payments. they are trying to boost competitiveness. this is a threat or a challenge to apple. >> changing the face of garage
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sales around the world. [laughter] cardsagine taking credit for garage sale items? >> 18%. >> it is a green, single cell organism. beasts sent the company to build a jet refinery -- varies that the company to build a jet refinery, it will be a partnership with chevron. they plan to have this facility up and running in 2018, the first-ever site to produce an aircraft fuel in asia. pretty exciting stuff. >> exciting for you. >> you have to win today. that is the verdict from the stock exchange, reporter are based on the days events. -- day's events.
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,"most wrapped on "first up but the trending business, up next a look at your new show. >> you can get in touch with us on twitter. tagnot forget the hash #trendingbusines. singinglady is not between the greeks and the european union. alexis has 24 hours to come up to meet the demands of the creditors from the european union and the world bank as well and the anti-austerity party is getting grief from internal members. saying itold member is all about semantics and all they have done is change the wording. reports about of sheltering millions of dollars in a swiss account through a panamanian country -- these are
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just reports, we should add. the west coast of the u.s. coming back to life after a nine-month dispute. >> all right, thank you for that, rish. that is it. "printing business" up next. ♪ . .
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♪ is monday. it is the 23rd of february. i am rishaad salamat and this is "trending business." ♪ >> here is what we are watching this morning. greece's new debt deadline. prime minister suppress -- t sipras has until the end of the day. europe's finance ministers decide whether to keep the money flowing. regional stocks headed for their best close since september. great optimism that greece will

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