tv Trending Business Bloomberg May 27, 2015 10:00pm-11:01pm EDT
causing many to say they are concerned. visa says their disappointment is profound. and the top luxury name for the 10th year. prada' s value fell 35%. follow me at twitter. the hashtag is there. here is what is going on market wise. here is youvonne. yvonne: they are headed for the longest rally since 1988. the nikkei climbed. that is because of the week yen. continuing to weekend. most of it is asian currencies. for the past five days, we have seen fluctuations. seng down about 1%.
we are snapping out of the two day declines that we saw in asia. let's talk about what is driving the nikkei. almost all the sectors in the green down about 0.3%. oil and gas as well. industrials up. consumer services up as well. basic materials up. let's talk about the euro real quick. optimism on greece. we have seen it rise the past two days. 109. possible drafted deal in the pipeline. they say this will be about low primary budget surpluses, a sales tax overhaul, and pension systems. rishaad: the terms of the acquisition were not met.
bloomberg news's reporter joins us. tell me something. what went wrong? christopher: this is a long and complicated story. he came in as a white night. the company was toppled in the fall -. is hently what happened was out and did not have the option to come back. unac toed the owner of shery decide. simultaneously to the news that sunac is dropping the bid for kaisa. we found out the vice-chairman board.sa is back on he is a key guy in the business.
he used to be the negotiator. he got the deals done. he was the right arm. the fact that he is back, i am being told it means he is take over the company, either sell it for a better price or even turn around the company and have it in the shape it was before. they were considered one of the best developers. rishaad: thank you very much. christopher joining us with the latest on sunac walking away from kaisa. do tweet us your thoughts, including the hashtag #trendingbusiness. they say they are deeply concerned about the rest of fa executives.
we look at the charges leveled so far. a reporter: all of them have serious allegations ranging from illicit bribe taking, tax evasion, to one even had mortgage fraud. he lied on his mortgage application about money he received from thfifa. all these individuals look to be in heavy trouble. they have dodged a lot of scandals and allegations over the years, but have not had the full weight of the department of justice hovering over them. it is going to be interesting to see how this plays out and how fifa responds. have one thing to allegations and another to have 14 members of the executive committee charged i the most powerful organization in the world. powerfuld by the most
the most powerful legal organization in the world. we are talking bribes paid to sites forically tournaments, world cups and things like that. the indictment is powerful. an and norma's amount of evidence the u.s. government has mounted. it is a stunning piece of evidence. more on that scandal later on in the program including reaction on social media. and sponsors reassessing their commitment. these are the latest developments. philippiness, -- out with their numbers. economists looking for
more than 6% but we got 5.2% come o, the lowest number in four years. but have a look at some of the other stories we are watching. here is david with the roundup. david: let's talk about china. we may see the third default of a company. it is a bottle supplier for coca-cola. financialrun into trouble. the company says it can only pay a fraction of the principal the needs to pay back. you can see the graphic of what they go. the 5 million u.s. dollars of interest for this particular bond. the company is calling it a liquidity problem.
for these bonds, they are due -- we will discuss options going forward. let's move about thinking. jpmorgan ceo jamie dimon was straightforward. andalled it irresponsible lazy. he said if you do that, you are probably not a good investor. let's get to this. god knows how any of you can place your vote based on iss. he was speaking in an investor conference in new york. revisiting executive compensation after the latest ackage was supported by record low number of shareholders. let's go to japan. iss, institutional shareholder
services, has turned their attention there. they are telling 1600 asset clients to vote out top executives in japan who failed to meet the standards. japaning to their head of research, this will be the first a standard. japan is the only country where they are using it currently. hard to understand why some public companies want to go back to being private. rishaad: another story we are following for you. japan's olympic sized problems. who will put the bill for the 2020 stadium. program, thehe debate.
anchor: the stories making headlines around the world. iraq says its forces are on islamic state forces. the city of ramadi fell after soldiers abandoned their positions. washington has tried to soften their criticism. vice president biden went there army's efforts. power and water supplies were disrupted and people living near
a reservoir in china were evacuated due to high water levels. heavy rain across southern china over the past week has left at least 35 people dead. people living near an overflowing dam in texas have been moved from their homes as a precaution. asy are hopeful it will hold water levels rise after record rainfalls. president obama has promised assistance for texas after a state of disaster was declared. 11 people are missing. competition is heating up amongst india's online retailers. big names like amazon established in the country. shop clues is a latecomer.
down with the ceo to ask about what makes his company different. guest: it is not about selling product or that. today we have about 150,000 merchants. believe in the next two years, we will have about one million merchants. you call yourself a marketplace for the masses. what does that mean? anjay: the early adopters are already there. we have aggregated these archants, we have become reflection of the bazaars online. certains with a
household income are the ones that are our target audience. shopclues is known for focusing on unstructured categories. unstructured categories are any categories where catalogs are not available. home, garden, kitchen, jewelry, fashion. these are unstructured. they are harder categories online. it is no surprise that shopclu entrant --th in shery: you get these small and medium-sized merchants.
how do you turn profitable? this is such a key issue in e-commerce in india. nobody is profitable. sanjay: hypergrowth and profitability are not mutually exclusive. we have a massive cost advantage. s as the shopclue largest aggregation of merchants in the country. factors lower than the next. by 2016, we should be able -- the modi government took office, there was a flood of investment. things seem to have cooled down. jay: 2014 was a low time
for the country. uncertainty. as the modi government came in, there was euphoria. but economy is more robust. the macroeconomic situation is you better than what have seen. a lot of opportunity in the country. sevend: a group of finance chiefs and central bankers are in germany to talk about ways to boost global growth. filed thiss report from dresden. g7 finance ministers and central bankers are starting today's of summits -- two days worth of summit here in dresden. the french finance minister urged the greeks to put things
to paper. put negotiations down on paper. there is a great deal of uncertainty throughout wednesday whether there was any progress in the negotiations pe. canadiano the finance minister and asked what constituted a default. guest: there are situations that can impact their domestic situation. its own socialte and political repercussions. these are serious issues. that is why we are taking them seriously. is -- iis conference asked him about greece and what he thought the focus should be on austerity versus
when you look at the economy, there is the 88% which is private. [indiscernible] it is the public side we need to work on. next three quarters, we are confident we will be able to play catch-up. rishaad: how was this quarter looking at the moment, secretary? secretary purisma: how is what, i am sorry? rishaad: the current second quarter. secretary purisma: expenditures continue to be reduced. as you know, the process starts with the department of management, implementing the agencies. the problem is on extending, rather than the revenue side,
which is doing well. the peso. are you happy with that level at the moment? secretary purisma: the central bank has the policy. we will probably only intervene if we detect movement. so far, there are no disruptive movements. we continue to work on implementing institutional changes so we can facilitate expenditures. this is the goal of the president. to make sure the reforms continue. rishaad: thank you, finance secretary. cesar purisima joining us on the line from manila. talking about the growth, which was a misstep. let's look at what is trending on social media. still following
what is being said on social media, the arrests for fifa. it is the world's game so you will get a lot of reaction. batter. this is the first time in american law enforcement agency has the backing of the rest of the world. america is so bad at being second, they decided to investigate fifa. last, let's take a look at this. interesting -- as we know, it will still be in russia and is given to america. seen many have
comments about how it has taken the u.s. to reach out and investigate. the department of justice. we have a former british .ootballer, the u.s. is the only nation that can tackle fifa. other person on twitter saying, here is my scenario. onar and russia hold out holding tournaments. -- lose out on holding tournaments. there are only two bank contenders. contenders. david: that is a look at what is trending on social media. if you use twitter, you can stay in touch with us. you can follow us.
missing expectations of a 6.6% gain. philippines joining its neighbors indonesia and malaysia suffering from slow worrying numbers --slowing growth. visa fifa -- has taken swift steps. let's have a look at what is moving on the markets at the moment. let's go to yvonne. yvonne: overall, looking better than yesterday. in the green. you mentioned the philippine gdp. the stock exchange they're not looking good the past week. shares down 1.5%. a six day losing streak.
the longest since december, 2013. this on the heels of the gdp data. ing neighbors like indonesia and malaysia reporting slower growth. the nikkei, gains in asia. hang seng down about 1%. group, the home developer, trading suspended today. why, according to the officials there. the stock has more than doubled this year compared to the 19% gain we have seen for the benchmark. three brokerages including goldman sachs have cut their recommendation on evergrande. let's talk about movers. japan, one stock.
sell texting and a measuring equipment. it rose as much as 33%. they raised their income forecast 14 times to ¥288 million. an internetpproving commerce bank. sands china seeing a selloff. they are looking for a chinese xecutive for macau. sheldon adelson speaking at a conference. this is the way to fight the corruption campaign in china. they have decided they are terminating their kaisa deal with -- their deal with kaisa. rishaad: starting the day in
positive terrain, but doing the reverse. joining us is michelle. the deal collapsed because certain conditions had not been met? statede: sunac explicitly that certain met,itions had to beine including a resumption of business operations. kaisa, what happened was they sales blocked by the government. they fell into a dire financial situation. rishaad: where does it lead them? they did default on part of their dollar debt but they have a lot of money outstanding. tohelle: there debt doubled 65 billion yuan. it remains to be seen what will happen. founding chairman is back in
the company. he resigned last year in the middle of the chaos. now he is back. it has not been clear what his intentions are. we cannot forget that kaisa has the second-largest shareholder with a life insurance company. sunac, where does it leave them? michelle: aside from the time and energy spent on the deal, they don't really lose anything financially. they will get their money back in phases. said sunacve always spends too much time on m&a. rishaad: michelle, thank you. on sunac walking away from kaisa .
greece remaining at odds with its creditors. the prime minister telling aporters a deal is close, but lot remains to be done. they will continue a meeting in brussels today. greece needs to make another imf payment at the end of next week. loaned money to hanergy have asked for a meeting. they have asked for talks but have not had a response. they lost $19 billion in market value before trading was suspended. the chairman increased his short position on the stock. two companies are in talks to combine their italian telecom divisions. a share sale if
the deal is complete. it would make the company the biggest wireless carrier in the country by customers. is seeing a slump after another quarterly loss. they are also in talks with airbus to defer some aircraft deliveries next year. correspondent has more on this. about thesay anything financial health? reporter: it does say a lot about the financial state. another quarter of losses for a company that is bleeding. the plan now is this.
defer two of the four planes scheduled to be delivered. they have been cutting costs to reverse losses. investors say it has been growing too fast and exhausted their capital. they can no longer be as ambitious. you can see how investors feel about airasia x. they have dumped the stocks. 50% down. it needs to look at restructuring, capacity. if they hope to regain investor confidence. rishaad: one of the biggest costs is fuel. they are looking to swap airbus planes for other ones, right? haslinda: right. the 350's forswap
the 330's. x has orders for the a350. we are talking an order worth $5 billion. they benefited from a strong ringgit. the ringgit is the second worst currency hind only the indonesian currency. not great when you are buying anything from overseas. rishaad: thank you. we are taking a look at the luxury side of things with the jewelry brand tiffany. tiffany stocks soared overnight, better than anticipated profits. has the latest on this.
theirent wrong with rival? missing analysts estimates of a gain. in europe, sales gained but missed estimates. the stock took a big hit. around 24%. that was the biggest one-day decline sense the ipo in 2011. weakeo putting the k mall traffic in the u.s.. consumers switching to cheaper goods. some delays imports in the west coast in the u.s. rishaad: what did tiffany do right? strategy coming
from tiffany. they are raising their prices of some goods while adding new products. that has fueled profits. course, that took the stock soaring overnight. gaining 11%. the biggest one-day gain in almost six years. if you look at the whole year, this year the stock did plunge 12%. that is because tiffany has been affected by currency fluctuations. a stronger dollar affecting sales overseas. they get most of their revenue from sales overseas. still, the results have been pretty good. they are saying it will even get better in the second quarter. rishaad: thank you. analyzing luxury by the numbers. the -- brt rands with
anchor: stories making headlines. buddhist monks have marched. they claim the united nations and the international media have created the story to make bad.ar look the people have no rights and myanmar and the migrants say they are fleeing for their life. human rights groups say the government must act to stop hate speech. south korea and the u.s. have agreed to increase pressure on north korea. after meeting and soul, and eeting ind further -- m seoul, envoys said further negotiations are necessary.
galapagosano in the has erected for the first time concernsrs, raising for the fragile ecosystem. the volcano is on isabella island, home to the world's only known population of pink iguanas. for now, lava is flowing away from where the of one is live. re the iguanas live. 10haad: the value of the top luxury brands fell. let's get more with millward ands director. happening, if you sector.the
the brand of value increasing. it is a bit of a rolle adblock. the macroeconomic scenario is very different. luxury sales.g in china, it is more than the economy softening. it is the impact of restrictions reducing conspicuous consumption. nd -- an brandsou look at these in china, strong brands. they are differentiated.
having said that, the two brands which have been doing things nel, the paris cha fashion show. they have managed the balance between exclusivity has been strong. rishaad: what about the discounters we have seen? the discounts in hong kong and mainland china for some of these brands. has that hit that were a of the exclusivity of them? interestinga very point on that. you would think that if you reduced prices, you would make them more accessible. that is the first thing you would think. let's look at the context in terms of what the price drops have been. bands -- brands like typically been doing,
what was happening was a lot of were traveling. creating a scenario where they are selling it. what this is going to do is brand anat and give opportunity to create engagement at the store. give them the option to come to the store which is very important for luxuries. the value of the top 10 luxury goods, have you calculate brand of value? what is a determinant? typically what we look at are the financial earnings. the portionrnings.
of corporate earnings that can be assigned to a particular brand. rishaad: apple is the top of the tree globally? >> that is the first step in terms of assigning a portion of the earnings. the next thing we look at is what we call the branded multiple. how'd you a sign a portion of the future earnings of the brand? the third thing we look at which is unique to millward brown is we take the consumer perspective in terms of how we associate with and connect with the brand. then we bring the three elements together to create a financial value for the brand. rishaad: the big story globally right now is the scandal at fifa place.rrests taking sponsors, two of them at least, saying they are deeply concerned about what is going on. how does a scandal like this value a brand, the brand
of a company such as visa or mcdonald's? >> what we have to look at is how it will play in consumer s'minds. one of the ways for the brands intrinsicthat, the opposition of the brand is strong. potentiallyly -- the impact could be minimized. brands are looking at taking immediate steps ensuring it does not have a fallout on the brand. very similar to what you might have when you have a celebrity endorsing your brand. if a celebrity has a negative perception at some point, it can impact your brand. let's wait and see how it pans out. rishaad: thank you for joining us. our guest from millward brown.
you are watching "trending business." mumbai, the story there making headlines is the second biggest i.t. services company is facing new legal problems. an american court upheld a discrimination suit. let's find out more. very good morning. what is the latest on this? reporter: good morning. theyis not the first time
are facing issues in the u.s.. four workers based in the u.s., they were discriminated against because they were not south asian. the update on that case is a judge in a district court in the dismissected a plea to the discrimination lawsuit. ruling on the case, the judge has said the court would not dismiss them before permitting discovery. says it does not comment on ongoing litigation. is expected to go to another phase of legal battle in the u.s., oh from where the company derives 60% of their revenue. pay 34 million dollars for the settlement of the civil case in the u.s. over
allegations it misused its visa after a former ofloyee brought up the issue misuse of business visas. while the petition was dismissed in 2012, the company was asked for a third-party auditor to review the visa compliance issue. a blow, at least in to mentally, sys.info rishaad: joining us from mumbai. let's have a look at what is trending. anchor: it has been a while since you have seen something like this explode on social media. #fifagate.
we welcome the actions of the swiss and u.s. authorities. you can read the statement from fifa. that is a link to the full response. footballer --sh there cannot be a more corrupt organization then fifan fifa. writer. from a delays to the fifa election. and let's look at some cartoons if we can. fairly amusing. are we go. the empire is falling. last, let's take a look at this one here. few.
josh: i am josh green. john: and i am john heilemann. never settle for second best. josh: in our lineup tonight, hillary clinton's cleanup, but first, rick santorum is ready to roll. keep an eye on the magic box in the corner of your screen. that is the santo screen, getting ready to officially jump into the 2016 raise. he was the runner-up to mitt romney, and he starts this time where he was last time, at the