tv Trending Business Bloomberg May 31, 2015 9:00pm-11:01pm EDT
ter insisting the corruption inquiry will lead to his door. follow me on twitter. straight to this breaking news. pmi index is just out. the number is 50.2 which is the highest for this year. it is above the demarcation line which is the difference between expansion and contraction. of theelow the estimates consensus surveys by economists from bloomberg. 50.3 and he came in at 50.2. in april and march it was 50.1 and in january and february it was in contraction. growth may be stabilizing of
course after several rate cuts. that evening in the economy might be starting to take hold, but this recovery is tepid at best. demand remains weak. 50.2 for the manufacturing may emi. services still doing ok even though it was below april and manufacturing looks like it is continuing its slow, tepid recovery. rishaad: we will look at that story later on the program. we had a bad day today -- we had a bad day in new york on friday, what is happening now? zealandingapore and new should be that they are shut on holiday.
.ive markets opened to the chinaction pmi data, not so much. not much of a reaction as far as the fx markets. it should be interesting to see how all that plays out when china opens a bit later on. nikkei is down for the first time in 11 days with a spike up in dollar-yen. lowest level there in 13 years. on friday. big spike you are talking about july futures for example are more or less at 65. would you want to watch out for here, the key trade, is you look at the currency.
we are now pushing 76.46. 12 month charge their. we could be looking at a key technical cross. 50 day, 100 day moving average crossed right here and you had a 20 percent drop after that. we could see a reversal. let me end of the japanese currency's very quickly. i mentioned that you had a breakout a few weeks ago. of.25 is the level dollar-yen. rishaad: on the sense of the attackedme minister creditors for absurd reforms. with the latest on these protracted negotiations. a tough week ahead for greece as it is to play 300 -- needs to pay $329 million to the
imf by this friday. "of the month they have four installments of debt repayments in total that will come to $1.78 billion. most analysts think that the friday deadline can be met. but, what happens next is anybody's guess. greece has already missed its deadline of having an agreement with creditors by sunday, but there has been a lot of finger-pointing as to what went wrong. for example, prime minister tsipras writing in the french nde" that the mo lack of agreement is due to the insistence of certain interested -- of certain institutional actors on submitting absurd for basel's. -- absurd proposals. a german lawmakers saying that it is up to greece to adhere to reforms they had agreed to. they tell us that creditors have
weekendogether over the trying to figure out and agree on what they want from greece. so they have agreed that they want concrete action in areas related to the pension system, the labor market, the sales tax. the agreement could be delivered by leaders. tsipras is of course trying to get some help from the german chancellor, the french president , and he called on sunday over the phone with both leaders. back to you. let's have a look at some of the other stories we're watching for you today. yvonne: let's talk about this .eijing smoking ban be careful of where you light up in the capital city now. china has been known as one of
the most smoke friendly countries in the world but that changes today in the capital city. the harshest anti-smoking rules ever seen in the country. includenket ban does races such as work, schools, public transport. many historic tourist spots like the great wall and from benin city are now banning smoking. why is this a tougher ban? for the first time, it targets businesses that won't imply -- that will comply. now, and outright banned from tv, radio, public transport, and outdoors. they say smoking is a serious problem in china. 300 million people smoke there which is nearly one third of world smokers. enforcing the ban will be a challenge. china has failed twice to curb
smoking in the past. with top-level support this time including for president xi jinping, it could lead the way to a national law. forum inl defense singapore was marked by a more careful tone this year. stated its claims to the south china sea but said he did not mean to threaten other countries. the u.s. did dialback on inflammatory rhetoric. you may remember last year when defense secretary chuck hagel and check and -- chuck hagel and a chinese lieutenant traded some barbs. at the backdrop this year though, conflict has been more tense. china has been more pushy. china does claim about 80% of the south china sea and satellite images show
construction of an airship -- an airstrip big enough for construct -- big enough for use by china's largest aircraft. about whatt's talk happened in the senate in the u.s. overnight three u.s. spy programs are said to go dark in a couple of hours because the senate wasn't able to strike a deal renewing them. were taking up and debating a house passed bill that would collection of bold records well re-enabling two out of the three acts. they allowed to see targeted phone records, hotel and banking and search for lone wolf terrorists not connected to an organization. senator rand paul threatening to use residual tactics to delay a they vote for several days
say that if the measure is changing will now be delayed even more. mcconnell, says it is a totally on acceptable outcome. rishaad: another story we're following is why john kerry has to cut short his trip to europe. later on the show, they are pouring money into property. countries out which chinese buyers are targeting. after the short break, we look at how china's manufacturing data may reflect the next move of the central bank. ♪
economistsenior china and our veteran china correspondent stephen engle. 50.2, this is an improvement. how much should we read into this? reporter: i think it is promising. in april we saw signs of stabilization. it is finally coming through. in q2 and possibly q3, we should see a modded -- should see a modest rebound. construction volume hasn't improved and we expect that to thensify to urge the end of month. 50.2 is an improvement over 50.1 but it is still not robust.
the pmi is only manufacturing. rishaad: and services are getting more important. guest: exactly. in terms of easing, we are expecting one more interest-rate cut this year. potentially more measures for easing this year. cutting the down payment ratio etc.. was just in shanghai this last week doing some stories trying to get a pulse of the property sector. new are releasing properties at 130,000 per square meter which is 21,000 u.s. dollars. it seems because of the stock market rebound that there may be
is some pent-up demand on the high-end. but is the low-end still weak? guest: yes, still weak. much is concentrated in the top tiers. fact that this has started, there is still some ways to go before we are back in a reasonable range. when actually need more support. rishaad: with this stock rally which has been actually unbelievable, we're looking at observations. if people start looking at data going, hang on a second, we could see a situation which was repeated a few years ago. people saying actually, the property market is seemingly coming back, maybe i should go there. what would be than the impact of what will be a stock market bubble bursting? guest: we think that for now, the stock market's recent rally has not been injured in bi
fundamentals. wrong.e looking at how is someeantime, there release of pent-up demand in the property side of things. a deflation of the property bubble that we think is unlikely. the secular property uprising that we've seen over the past decades is gone. there is demand. we did a survey a few months ago and 60% would buy if transaction costs and prices come down a little bit more. so the government actually delivered earlier rather than and hopefully they can
start to dissipate that pressure in a more controlled manner. now, there are structural reforms that could help with some of the pressure. guest: there has been we demand, .bviously do you see any silver lining coming down the road? guest: services is increasingly important. it is still expanding. it is more resilient.
giving the economy more resilience where job creation is concerned. china has been slowing on a sequential basis but the job market has been holding steady. today, given china its size, its higher services share, is in a better state. the thing is, capital controls are still there and this kind of isolates the prevents a bigo kind of shock. but those are likely to dissipate? guest: in time, they will. thatkes away the buffer the chinese banks have enjoyed for a long time in terms of making sure there is ample liquidity. it will also block the effect of
monetary easing at home. but, the good thing is, the silver lining, is that china is coming up from a very high base. you can come down a lot further. there are still some capital controls. so they could tighten it if need be. have almost 4 trillion. they can still control the pace. thank you so much. reporter: time for a check of headlines from around the world. er ispresident sepp blatt accusing media a campaign to push him out of office. he is also denying allegations that u.s. justice department investigation could ensnare him. blatter insisted he has nothing to fear. myanmar has briefly detained
journalists trying to reach a remote island where hundreds of migrants are being held. the navy demanded reporters give up their memory cards. 700 people were rescued from a boat in the bay of bengal. says they are all from negative --. blues legend bb king has been laid to rest in his home state of mississippi after a funeral service attended by family, friends, and fans. tributes were read out from stevie wonder and president obama that there would be a killer blue session in heaven tonight. the 82-year-old guitarist died in his sleep. police are carrying out an investigation after two of kings daughters accused his longtime business manager of killing him. rishaad: coming up next, pushing down prices. we will look at how indonesia's central bank is tackling inflation. ♪
has been training this farmers group to grow vegetables more productively. but, she is not an agricultural specialist. she is the head of the indonesian central banks west java offices. it is what might be called a hands-on approach to managing inflation. mandates manage not only the market and demand side but also the agricultural side from beginning to end. we look at how goods are produced, fertilized, how seeds are planted, and so on. it is a first step to tackling stubborn inflation has been stuck above 6% all year. food makes up about 1/5 of the consumer price index. price stability is a key focus. the central bank has teamed up with regional experts across the country to develop programs aimed at securing steady
supplies of produce using the most efficient methods. the program also opens up access , for example helping farmers to send vegetables directly to supermarkets. and, it provides support to farmers who grow products which would usually be imported like these tomatoes. >> for local tomatoes, our farmers only get 4000 per year, or $.40 per kilo. 412,000 whichese means our income is much improved. they also hope these measures will hope -- will help indonesia to becoming more self-sufficient. still, economists say much more need to be done. >> is not just how much you plan and how much you yield from thee crops, but how well
condition. that depends on how fast the roads work and the shipping lanes to connect the many islands in indonesia. reporter: there's plenty left on the to do list, that here in the fields of west java, at least some of the efforts are bearing fruit. coming up next, the investigation into fifa corruption widens but president er insists that the organization's highest office is safe. weektart of a trading right after this break. ♪ we live in a pick and choose world.
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they are now hoping germany and france will use their influence chancellor merkel and ,he president reach payments the first do with the end of the week. that allows the bulk collection of phone records is set to lapse. the patriot act expires at midnight eastern time. of there sunday session senate, officials say the lapse of the law could would americans at risk and calls it a win for terrorism. a look at what is happening at the start of the trading month, hong kong and shanghai, here is david. david: june is typically a month when liquidity runs at its highest. theoves up when it comes to at twonk, shy bore --
percent. median forecast averages 2.5 percent. that is seven days. that is what is happening across the region. only shanghai is finding itself up some intensive 1%. we will see how that plays out. opening is not reflective across the station -- the session. up 50.2. at different areas of the economy, things like copper, take a look at copper inventories on the shanghai futures exchange they have been falling for eight straight weeks. the lowest since february, unclear whether that is due to demand or a lack of restocking. industrials up 7/10 of 1%. where are we? real estate, big property in shanghai.
minimum ofowing a 20% down payments for a first home. fairly low. boom prices up. for in hong kong, watch out the casino stocks. hotel occupancy down 5.6 percentage points. a drop in hotel occupancy. ipo, a to flag this first-time listing. securities, the fourth biggest brokerage, at the top end of the range. that would be a substantial discount. it was a 31-32% discount. watch out for this. a lot of these brokerages continue to raise cash. we have cynic securities, -- civic securities, news today
that there is a buyout offer, and unconditional mandatory bb.ral cash offer for k a lot of movement here. that is the big ipo. back to you. story, china'sp official manufacturing for may 50.2, lower than predicted. let's bring in andrew. what does this tell us about the economy? reporter: and is lower than expected. it hit the economy is stabilizing a little bit. isa hint the economy stabilizing. the services side is holding up. taking together, maybe there are hints that is going forward. green shoots, but a better second half.
rishaad: why is there a struggle for traction? the firstthis can be sign we are stabilizing. missed expectations, but it is still above the 50 mark. a lot of big issues that are factors. the currency remains strong. in real terms, it is strong. it is hurting exports to europe and japan. there is an overhang in real estate as well. taken together, quite a bit of sluggishness in the chinese economy. rishaad: let's take a look at what we have won it comes to the bullet in the gun. they can ease policy quite a lot. needs to beat understood. conventional policy has lots of an munition. they are a long way from having to do the kind of qe measures
that ecb is doing. they are taking big steps to promote lending to local governments and get debt turned over. --ave a lot of in munition they have a lot of ammunition. would step uppbc on the rate side. economists expect to see more action from them. rishaad: thanks for that. you can get more on that story, download our app to your mobile tablet, available on andrew -- android, apple and will you -- the investigation into the corruption in world soccer is widening. the fifa president says he is not implicated. he insists the chair will not lead to his door. shocked and fascinated fans whether heworld ask
would be arrested. he said, for what? next question. reporter: he was defiant. he is at the start of his next term as president of fifa. given the legal challenge coming from not only the u.s. but switzerland as well. the corruption probe by the justice department is nearing 14 officials, 100 $50 million worth of bribery, allegations contained within, and sepp blatter saying over the weekend saying everyone is responsible for their own ethical and moral behavior. he says, i as a bank president cannot speak in behalf of others. he lashed out at the u.s., the attorney general loretta lynch, he said he was shocked at the allegations in the complaint. speaking over the weekend, he said he will do what we -- what he can to defend fifa and the sport. ridiculous. we cannot let the reputation of fifa be dragged the mud.
those who are behind us and those who are at fault, especially if they are convicted, these are individuals and not the whole organization. zeb: bloomberg news learning from the irs, additional criminal charges and more people likely to be ensnared in the investigation. we do not know who is going to be pointed to by those who have been arrested. , americanlobal banks banks, are being implicated, if not implicated, but are involved. standard charter, looking at the financial transactions of the individuals who are suspected of wrongdoing, at least in the complaint, and other banks doing this as well. 33 nations according to the irs, cooperating in the investigation . it is a wide-ranging look into a finances, if of
you will. lots of money changing hands. rishaad: i can imagine it is a tangle. zeb: the starting from an fbi investigation in new york. into one individual, whose personal financial dealings, his involvement with fifa led to this larger investigation which is capturing global attention. much.d: thank you very we will check in on other , the taiwan exchange will be allowed to fluctuate within a wider data limit. that is starting off today, the band will be raised from 7-10%. prices limit will allow to reflect market fundamentals. cracks the capital market has changed. investors have changed. investors are becoming more globalized.
the trading mechanism and the need to start allying with information. rishaad: corporate japan faces new bordering rules starting today. companies are required to have at least two independent directors on their boards are explained to shareholders why they don't. shinzo abe's latest bid includes profitability. companies with three or more independent board members deliver better returns and those with not -- than those with none. apple confirms a bond offering in the near future. goldman sachs and mitsubishi ad to sales. the first for apple in the japanese currency. f.3 billion of bonds in swiss -- franks. demand is on the rise. an art form that was once looked
down upon, collectors are willing to pay hefty prices to earn a piece of soviet history. socialist realist art was created by joseph stalin to glorify communism. today, russia's richest can't get enough of it. one man has dropped more than $100 million on soviet art. a direct reflection, worth half $1 billion. the most profitable investment you can imagine. a french impressionist can cost up to 300 million dollars. the average masterpiece, over $100 million. cost $1 painting million. the price will go up tenfold. reporter: depictions of world war ii was brought to london this year. in the future, the plan is to open his own museum.
>> i grew up in the soviet union. i saw how people made our there. i -- made art there. i wanted to show the art to the world. shoneer: many collectors hun so be itet -- s art, but nostalgia is on the rise. fromme by what you like their childhood. some buy because they want to show their kids the time they grew up in. reporter: the shore -- the former chancellor bought these paintings in the 90's when russians did not have the money for art. back.t bought them he thinks the real money in soviet art has yet to come. up next, some of the biggest stars of foreign
>> making headlines, south korea confirmed cases of middle east respiratory problems. medical organizations discussed measures to tackle the disease. 1100 people have a been -- been identified as victims. weekend thunderstorms brought little relief from the heat wave in india, which has killed more than 2000 people since mid-april. intense heat is likely to continue today in the worst hit states. arrival of cooling monsoon rain.
temperatures in the southern states topped 45 degrees celsius over the weekend. between three and seven degrees higher than average. the plane trying to circumnavigate the globe powered only by the sun is on its longest and most dangerous leg. solar impulse left china, headed for a hawaii. the flight over the pacific is expected to take six days. the journey began in march and included stops in india, .yanmar, and china after that, they will head for the u.s.. rishaad: breaking news out of me 49.2.i figure for with the economy's thinking as well. the official pmi, which came out earlier, 50.2 expansion. a slight contraction here as well. both of those improving from
april. we are pretty much where we were before 46-60 at the moment. australia's treasury secretary says sydney is in the grip of a housing bubble. are drivingates investment from within and outside the country. chinese buyers doubling their investment in australian residential property last year. my next guest says, that's just the beginning. cofounder the international chinese property portal. so you are to blame partially for what is going on in places like sidney? educate: we want to chinese consumers of a global property markets. we see a lot of the market is driven by low interest rates, lack of supply, and predominantly the domestic market is what drives prices. international investments are a small portion of the market.
the high end and the mid-and. chinese buyers would typically double the base price of a full-time -- a first-time buyer. are you feeling single interests? reporter: we have seen the tip of the iceberg. chinese are traveling more. they are traveling overseas. they are investing in global property markets around the world. rishaad: looking also, what are is, you you are saying this that of the iceberg. has this crack down on extravagance there has played out when it comes to this? it doesn't seem to have. our sales abroad -- our sales abroad gaining? reporter: we are not seeing that. across technology, manufacturing services, new millionaires being added to the wealthiest every year. they are looking to diversify
and grow overseas. and australia particularly, its proximity to china is very good. it's still relatively cheap, the exchange rate is favorable. by avery new home built foreign investor, for new homes are added to the supply chain. has the slowdown in the property market in china itself right now also affected what is going on with your business as people don't want to get invested in a country which they may lose money and? reporter: we don't see that. people are risk-averse. buy international property, they already own properties in china. they want to invest in properties overseas and they want to make sure they are risk-averse locations. they could do so in the qualified investor program. there is a plan to extend that in cities.
the proposal is in draft format. there is a lot of chinese businesses active overseas. in properties for their employees to live in while they work. rishaad: howdy leverage the surge? -- how do we leverage the surge? reporter: we look at which markets are hot. we look at where the chinese are traveling. rishaad: they are looking at canada and the u.k. and parts of europe? reporter: the top market is usa, then australia, then candidate, then the u.k., then new zealand for the first time. rishaad: what about europe? europe looks fantastic. portugal, germany, and spain are fantastic. rishaad: talking about leveraging the surge, what about these new partnerships? how do they work?
auction.com, j rj.com. is -- has the access to the top 1%. we reach out to them and let them know what the property markets are doing. we have 15 writers on staff who write about the global property markets. stockuction.com, we have coming from the u.s. it is not just chinese in china, it is chinese globally. attractingese are the richest people. it is an ideal place to have a partnership. million: we have 2.5 properties on our website. we are the portland -- the foremost company for luxury homes. are four motivations for chinese buying properties. in case -- education, investment, and lifestyle. rishaad: i was going to ask you
he cited an onion, you know that as evidence in his defense as he took to buzz feed and youtube to basically assert his defense. he has been indicted. he was arrested in trinidad and ace's extradition to the united states. one of 14 officials in the widening corruption investigation. the allegation is bribery. interesting used youtube and buzz feed as his platform. not exactly the most credible sources for media. let's talk about this story coming up in the bay area. a woman apparently, one person's trash is another's treasure. vintage appleis one computer. it was a prototype built my steve jobs in 1976.
she got rid of some stuff in her garage and after she lost her husband couple months ago, and she bought -- brought this to a recycling firm not knowing what it was worth. says it is worth $200,000. they are looking for her, they want to split the proceeds. zeb: doing the right thing. yvonne: people are saying, how can she make this mistake? another person saying, this is why i will not get rid of my brother's typewriter. supporting corridors, i think. that is dangerous. look, up a a few percent. 5%. $26.05. financing as well, up 137% right
on the counterattack, the fifa insisting the corruption inquiry will not lead to his door. follow me on twitter for more. business.rending a couple they commit -- big movers in hong kong. abouter: we were talking this. investing in a company. the other one is this, china's fourth largest, a security company. the shares are up. aboutalues the company at 26 times current earning. context, securities and high tong are changing it -- training at 19 or 20.
at the top end of the range, a significant discount. staying in china, you see the markets are up a few percent already. the breaking news, china said to be considering doubling its local debt swap program. a widening ofeing scope in that program. ,nterest rates brought lower increase transparency and market pricing into a lot of debt in local governments. shares are down across the region with the exception of the chinese markets. thing,: another manufacturing strengthening slightly. stephen engle has been poring over this. not one but two sets. normally, a reading of
50.24 manufacturing pi -- pmi would not because for celebration but it is getting some optimism for economic prognosis. the highest reading so far this year. after contraction in january and .ebruary, 50.2 output, new orders and new jobs advancing in manufacturing pmi. is stabilizing after a few interest-rate cuts from the pboc and targeted stimulus. in the last few minutes, the hse see pmi final reading for may came in, in line with the flash number about 10 days ago at 49.2. still in contraction, the -- below 50 but better than april. i might add, services is making 47% of the economy. we have the nonmanufacturing tmi which includes construction out for may. it came in at 53.2, below the previous month, still robust.
to go back into the data, that is the lowest services pmi reading since december 12 -- december 2008. perhaps because of the weakness in construction. back to you. program we want your opinion. tweet us your thoughts. , debt repayments loom for greece. the prime minister is not backing down. he has gone on the offensive, attacking creditors for what he calls absurd proposals. one deadline has been missed and more are coming as money, greece has to pay to the ims. the government has said that by sunday, they will have an
agreement with creditors. that didn't happen. this month, they have to pay 1.7 8 million -- 1.7 8 billion dollars in debt repayment. there's has been a lot of finger-pointing as to what went wrong with the -- securing a deal with creditors. minister point a finger at creditors, saying it is not greece posco that there has not been an agreement yet. he says it is because of the insistence ofe the institutional actors in submitting what he calls absurd proposals, and displaying indifference to the democratic choice of the greek people. but creditors are not budging. senior german lawmakers say that it is up to greece to stick to the reforms they agreed to before the prime minister came to power. over the weekend, creditors got termser and worked on key they want to see from greece, including in terms of the
pension system, the labor market , as well as the sales tax. the agreement could be delivered by european leaders, but this would come from the ims, the ecb and the european union -- the european commission. they are trying to come to an agreement, trying to seek the help of chancellor merkel as well as the prints -- the french president. the leaders discussed over the phone on sunday what to do and how to move forward. officials say those talks were constructed. chancellor merkel and the prime minister will meet on monday to further discuss the greek situation. back to you. rishaad: we'll turn to some of the other stories making headlines. the latest on the fifa scandal, the u.s. saying its investigation into corruption in world soccer is widening and more arrests are coming.
fifa's president sepp blatter shrugs off the notion that this probe could lead to his door. he came through unscathed so far, winning another term. he came out defiant, telling reporters he had nothing to fear from the u.s. federal case, which alleged a $150 million bribery scheme linked to broadcast rights in north and south america. fifa vice presidents were among those arrested. suggested the u.s. went to far, and he is worried about damaged -- damaged in the organization. >> we cannot let the reputation of fifa he dragged through the mud. we cannot accept that because that -- those who are behind us and those were at fault, especially if they are convicted and found guilty, these are individuals and not the entire
organization. gears to threeng u.s. spy programs set to go dark and a couple hours because the senate was unable to strike a deal renewing them. the senate was taken up and amending a bill that would prohibit the nsa from collecting bulk records while renewing three provisions of the patriot act. it did not pass, with senator rand paul threatening to use procedural tactics to delay a vote. president barack obama, national security officials and lawmakers have said these programs are needed in the fight against terrorism. some of the measures, which would allow investigators to seize targeted phone, hotel and banking records of suspected terrorists and spies, some senators say the programs violate the constitution. they plan to amend the bill but the measure has changed. it will be sent act of the house, taking up more time. mitch mcconnell, who had opposed the bill, saying allow the program to expire is
unacceptable. ban, theng smoking cavalry light out -- light up. china has always been known as being smoker friendly. virtually no taboos. officials want to change that. the ban includes public places such as work, school, hotels, public transport, airports. no more smoking rooms or lounges there. many tourist spots like the great wall and forbidden city, no more smoking there. the federal law targets businesses who do not comply and is tightening half tobacco advertising, ads are banned. the world health organization's is smoking is a serious problem in china. 300 million people are smokers there. nearly one third of the world's
total smokers. that has led to a million deaths per year from soaring rates of lung disease. ban will beof the tough. they have failed twice to curb smoking in the past. with support from the president -- they stopg, it ways to go. securities performing strongly today, more details later in the program. plus, what's coming up right in the break, a timeless collection. ofwill talk about the world luxury timepieces.
of migrants are being held. the navy demanded reporters cameras and insisted they find an agreement not to make the journey agreement -- again. people were rescued on the bay of bend all. -- the bay of bengal. bb king has been laid to rest in mississippi after a funeral service attended by family and friends. tributes are read by stevie wonder and president obama who said there was a killer blues session in heaven. the guitarist died in his sleep. police are investigating after two of his daughters accused his longtime business manager of killing him. to plane trying circumnavigate the globe powered only by the sun is on its longest and most dangerous leg. solar impulse left nanjing in china headed for hawaii. the 8000 kilometer flight over the pacific is expected to take six days. the planes marathon journey
began in march. it included stops in india, myanmar and china. after hawaii, the plane will head for the mainland united states. rishaad: our next guest is the cofounder of a luxury watch company that built its products as combining quality with wellness. many votes timepieces feature natural frequency technology, which proponents say can improve quality of life. cofounder, thank you for joining us. tell us about these watches and how they combine these two attributes. in 2003 when we started the watch company, the watch industry is a busy industry. we had to create something that stood out from the crowd. ar idea was to come out with
watch that was not only a beautiful timepiece, but also a well-being technology, or rather, a wearable technology on your wrist. the first natural wearable technology on your wrist. rishaad: how does that wellness technology work? watch, is a metal isc. we are able to program the disc to function like a fine tuned antenna. we are surrounded by frequencies at all times, natural frequencies as well as man-made frequencies. the antennae on your wrist exit the natural frequencies and channels them to the body for personal benefit. rishaad: that sounds a bit new age. >> it is absolutely
revolutionary technology. we are the only one who has this technology in our timepieces. it is a proprietary technology developed by philip stein. rishaad: what evidence do you have of it working? >> we are constantly doing studies and exploring the technology, constantly. we work with institutes and example simonfor fraser university out of canada, and what they have done is a study on human cell culture, which showed that the technology , when it was exposed to the human cell culture, increased the melatonin production by 25%. that was one of the reasons why we came out with a product which we called the sleeper, launched in 2012, which helps people sleep better and wake up more refreshed. business?o how's
how many watches are you selling? >> in total, we are selling --ween 70-80,000 peaches pieces per year. the southeast asian market has been important for philip stein. it is amongst the five top markets. rishaad: what about the recent slowdown we a scene in china? have you seen drop-off in demand? a lot of the other luxury watch makers of warned about that, bracing themselves with price cuts. what are you seeing? really compete with other luxury watches. our watch is, as i said, a wearable technology and a natural wearable technology on the wrist. only that people are
focusing on luxury when they look at our watches. that is why well-being is a timeless thing. it is not a fad. that is why the -- we did not have silly problems due to the downturn. rishaad: are you seeing anything from the downturn? >> not much. of course, after the financial crisis in 2008, sales slowed a little bit. but it picked up immediately. that is because people are because ofip stein the technology. also because it is a beautiful watch. but the main thing is, they have an adjunct to their healthy lifestyle with our watch, which helps them feel better during the day and hopefully sleep at her and night. can't call it a luxury watch. the apple watches in the market.
how do you perceive the competition from their? >> i am happy about the whole movement of wearable technology, smart watches. the reason why, the apple watch and all the other smart watches, those are great devices to track your every day performance, your sleep. our technology works different. we don't track or measure anything, we initiate the results. i invite everybody who has a wearable technology to try the philip stein sleep watch to see the results. we really initiate the results. rishaad: thank you for joining us this morning. will stein from philip stein joining us from senate -- singapore. fifa official jack
bankers are trying to get it down to 5%. means theys, that may have to get their hands dirty. roslyn: for six months, this farmers group is been training to grow vegetables productively. she is the head of indonesia's central bank quest job offices as part of what might be called a hands-on approach to managing inflation. indonesia manages not only the market and demand side, we also manage these agricultural groups from beginning to end from saliva -- supply-side. we look at how they are produced. with -- indonesia's inflation has been stuck above 6% all year, it is an important goal for the president. food makes up 1/5 of the the consumer price index.
the central bank teamed up with regional experts across the country to develop programs aimed at ensuring steady supplies of produce. members of the farmers group say they have seen yields grow up 20%. the program opens up access to markets, for example helping farmers send vegetables directly to supermarkets rather than to agents. it provides support to farmers who grow product like tomatoes, which can sell for higher prices. >> the local tomatoes, our farmers only get $.30 per kilo. these tomatoes, we can sell for -- three times that. will helple this indonesia become self sufficient, another goal. economist say more needs to be
done be on the field in the fight against inflation. >> it is not just how much you plant and how much you yield well.hose crops, but how that depends on the infrastructure, how bad the roads are, the shipping lanes to connect the islands. plenty left ons the to-do do list. here in joppa, at least some of the efforts towards fighting inflation are bearing fruit. rishaad: a look at social media. the strange story of jack warner. the former fifa vice president making headlines. of all the arrests in connection with the bribery probe, this man has garnered perhaps the most attention. jack warner. this was shot in trinidad. ofis a next vice president
fifa and was arrested in trinidad facing extradition to the u.s. before his arrest, he put up a video on youtube asserting his innocence and lashing out at the u.s., blaming them for the investigation, saying they did match, sayingtest they were angry it went to qatar . interesting to see his reasoning. peopleger thing that has scratching their heads is that, for his defense, he cites an article from "the onion." the spoof website, the fake news site, perhaps he did not realize it was not an actual news article. he must've googled it and that's what came up. that doesn't work in criminal defense. isnne: one person's trash $200,000 worth of treasure. a bay area woman cleaning out her garage after losing her husband threw away this, and
apple one computer. a prototype tilt by steve jobs -- built by steve jobs in 1976. it is a relic intact history. she donated it to a recycling firm not knowing how much it was worth. they sold it with private collector $41,000. the recycling firm is looking for the woman, the mystery woman, saying they want to split be/50.ceeds to according to company policy, they have to do that. they want to help her out of it. you shall media talking about this as well. one person says, what was she thinking? say, you know what? good to know they are trying to find her. back to you. rishaad: up next, corporate drama in jakarta. ♪
rising: chinese stocks after the manufacturing gauge rose slightly in may. measures are helping to cushion the economy. the highest of the year and just below forecasts. struggling to meet the 7% target, policymakers have cut interest rates. again fails to reach a deal with its creditors. hopingme minister is now
germany and france will use their influence to help what is described as a constant struggle. owes nearly $2 billion to the imf this month. of legislation in china. beijing is banning smoking in all indoor public places and on public transport. the new rules require businesses to discourage customers from lighting up and report anyone who refuses. the new rules include fines of about $30. if you look at what is moving the markets, the nikkei closed for the lunch break. here's david. david: let's look at japan. a few of these movers we are following their. tokyo had a big move.
it is no big surprise here. 14%company will be retiring of shares on june 10. that is about 33.6 million shares. iny flagged this last month terms of limiting treasury shares issued. if you put a lid on that, then you have retired a share. that is the story for the stock. up 0.2%. have an annual meeting, shareholders meeting. they are considering restoring their dividend. that is according to the nikkei newspaper. we still have to wait and see the results of the third-party investigation when it comes to accounting practices. shares are up 2.5%.
nippon paper. dollar-yen, 124. this industry is a major importer. paper makers import a lot of the raw material. that is a fairly straightforward story. changes in analyst ratings. it is very straightforward. , price target, ¥3400 i share. in oil prices, we are tapering off a little bit. mitsubishi raising this one to neutral. teijin up 4%. raising that the 482 now. let me just end on the nikkei lows. ,049 after 11 successive
games. rishaad: china's official manufacturing pma coming in slightly lower than estimates. let's bring in bloomberg asia economics correspondent. we've got hsbc measures showing a slight contraction. it is all within the realms of doubt. >> exactly. it is not really changing the overall picture. the chinese economy is in a downward trend. holding above 50 is important. it means the sector is expanding. we know the factory sector remains under pressure. where policyhat is measures are starting to flow through. rishaad: why do we have this economy having these headwinds? it is probably overstating it
a bit. relative to where it was, it is pretty much a trough. manufacturers are producing too much. the export market isn't there. the real estate sector, a very important part of the economy, they have an overhang of supply. there's a lot of empty flats. that feeds back into the supply chain. there's lots of negatives on the china economy. policymakers have a lot of ammunition. it is not all doom and gloom. years ago, it used to be the command economy. still argue it is a command economy, china. in order to be that, it needs to be able to move everything and manage everything. >> it certainly does. ask -- in some
respects, they still have big state owned companies, and even as they reform the economy, they want to hold onto that. when it comes to policy, the central bank has 5% of conventional interest rate. it is still one of the highest. government has powerful reserves. it can take lots of steps to encourage lending between the banks, which results in infrastructure development. there's lots in the tank. rishaad: thank you for that. to move and take a look at some of those other stories we've been following. turning to japan, starting to take off again. this area will get investment of $145 million from shareholder groups. integral would keep its majority control.
says it is going to show operating profit by july. talking of japan, corporate japan facing new board room rules starting today. companies are required to have at least two independent directors on their boards or show shareholders why they don't. prime minister shinzo abe, his brainchild here. security did a study on this and found that companies with three or more independent board members delivered better returns than those with none. hong kong taking off this morning. shares on an absolute fly. up 171%. would this news that a private equity fund with jack ma set to take control here? saying it will develop
its financial services operations. look at china's fourth biggest listed brokerage making it stayed you in hong kong today. let's have a look at what they are doing, up 4% on the day. bloomberg equity markets reporter is with us now. what is the background here? >> huatai's share sale is hong kong's biggest this year. first-day performance is a big disappointment to investors. it was selling like hotcakes with retail investors over subscribing. rishaad: retail-based, not institutional? >> they were also keen to buy it and analysts were predicting 20% to 50% gain on day one. it is far below. match itst doesn't predecessor, does it?
that was in april. >> yeah. dayecurity surged 40% on one. huatai's performance is far below that. huatai shares have fallen in the last few days as supply of brokerage stocks increased in china. some investors have doubts about how long china's rally can continue. rishaad: thank you. having a look at the debut of huatai in china. to move on to slumping coal prices and looming bond payments. indonesia has quite a lot on its hands already. it is struggling to figure out who is in charge. let's get over to the jakarta bureau chief. this is hugely complicated. can you try and make sense of it for us? it is all about control of a top indonesian coal mine in
borneo. it is very complicated. this is basically a hangover from that rothschild investment years ago. still, he's in a dispute. ousteds london venture its ceo in march and picked a new ceo at a shareholder meeting in jakarta. the tricky thing is that the ceo in question said that meeting wasn't valid and he still was ceo. the dispute is over who is running the company. the ceo is still in the office. when i was there, he was signing production reports. he very much feels he's in charge. meanwhile, the london parents can't even get access to the office's e-mail. rishaad: didn't he locked himself in at one point? you've been to the berau offices. what was the atmosphere like?
reports of 100 security guards at the office. when i went, there was only two. the office seemed perfectly normal. it really didn't seem like it was the center of a big international dispute. rishaad: ok, apart from the complex dealings here at berau, it does send a message about doing business in indonesia. what does it say about that? >> disputes of ownership are quite common here, unfortunately. risk analysts will always say that it is critical to get a good local partner, but choosing that partner is tricky. you have to do a lot of due diligence. even then, it can go wrong. we have seen several high-profile cases in the last few years of people losing control of their assets. rothschilds is one. churchill mining is another.
these kind of losses of assets are quite common. what is unusual is losing control of your office. rishaad: thank you very much indeed. neil is our jakarta bureau chief. next, just the tip of a giant iceberg apparently. our next guest on the corruption allegations at fifa. we are heading to sydney to hear from the former president of soccer australia. ♪
law could put the american people at risk and call it a win for terrorism. thunderstorms brought little release from the heat wave in india that has killed more than 2000 people. intense heat is likely to continue today in the worst hit states before the arrival of cooling monsoon rains. temperatures in the southern states topped 45 degrees celsius over the weekend. blatter hasnt sepp attacked english-speaking media, accusing them of a campaign to force him out of office. he also suggested that the u.s. investigation could ensnare him. several officials have been detained and the department of justice says more arrests are on the way. blatter insisted he has nothing to fear. says theout next guest corruption allegations are just the tip of a giant iceberg. we are joined from sydney by david hill, the former president of soccer australia.
thank you for joining us. what are you making of all this? who's going to be next, and is it going to be sepp blatter forced to fall on his sword if he's not indicted for any crimes? got to takelatter's a large slab of the responsibility. we've known from sworn testimony since 2002 of pretty massive corruption within fifa. he's been the president now for 17 years. a lot of that sworn testimony implicates him. i don't think we will realistically see the beginning of the cleaning up of fifa until blatter goes. the sinner that is for football are in the world, i think, better. rishaad: why is it taking so long? i think that is what everybody wants to know. >> because nobody has been prepared, despite the appealing
evidence, to lay charges or to seriously investigate fifa. we all know that the swiss authorities have had sworn testimony directly involving blatter in the improper payments tofifa moneys going back 2002. it has taken the american authorities, and credit to them, the fbi and the irs, to conduct these investigations. i disagree with what blatter just said. this is, despite being a huge bust, still only for crimes of corruption committed on u.s. soil. the north american soccer federation that's involved in this is but a fraction of fifa. you'd be pretty crazy to believe that corruption and fifa is limited to north america. i think these revelations from the american authorities and
these charges and arrests relate to a tiny fraction. it is the tip of a giant iceberg. forget, the's not swiss police are involved as well. they were involved with the original arrests and indictments too. perhaps they can come up with something as well. or do you have little faith in them? >> they've still got to answer, why didn't they, when the chief executive of a thought -- chief executive of fifa gave the swiss police in 2002 820 odd page detailing improper financial payments authorized by warner,to jack including a $10 million u.s. , thathat went to warner was written off as a bad debt only months later.
i'll wait and see, but it has taken the american authorities to be serious about this. follow,ther countries including great britain and australia. australia spent a lot of money on bidding to host the world cup, and a lot of the money, we don't know where it went. this also, soccer australia is the predecessor of the football federation australia, you continue to support blatter for all these years despite these allegations and the whiff of impropriety in the air. why did that happen? >> i think football australia has done a fantastic job in recent years, but this is indeed a black spot. it should not have been continuing to prop up blatter when all the evidence was suggesting they shouldn't. i'm pleased to say that
australia at last voted against blatter, but i think now australia has to take the example being set by the united states and by the u.k., who are suggesting a boycott of the next world cup, and i think australia should join with the leaders of this to clean out fifa. it certainly has not done enough to date. rishaad: david hill, thank you so much for that. from sydney, saying that the allegations are the tip of a giant iceberg. next, china considers dumping its program to clean up high risk local government finances. we will look on that --look at the details on "trending business" after a short break. ♪
"trending business." i'm rishaad salamat. considering a cleanup program for shaky government finances. our beijing bureau chief joins us now. is this a sign that the earlier amount was clearly not enough? >> what we are looking at here is a situation where local governments have about 25 trillion yuan in debts. there was an earlier program to convert about one trillion yun a of that. trillion yuan of that. this seems to be a nibble in that debt. we will see if there are more stages that the government announces down the line. rishaad: how much debt does the government currently have? there are many disparate estimates of this, aren't there? >> it is really unknown.
the estimates range very widely. the sort of high-end figure is seen as about 25 trillion yuan, but there is so much in the shadow banking system and on the books that it is very difficult to get a sense of that. clearly, the government does recognize that there is a problem. the idea is to allow governments to sort of reduce the cost of their debt, transferring some of those high interest loans off to lower interest municipal bonds. they are paying less on the debt that theyof do have. rishaad: we are going to see more debt swaps in the months to come? >> that's the big question. this does indicate that the government thinks the program it has in place is working. a few provinces did issue municipal bonds recently to swap out some of that debt. they got lower interest rates
that were expected. lower yields. that was a good sign that there is demand for this debt. it seems likely that what we've seen are the first tentative steps in this program and there could be more to come. rishaad: nick wadhams, our beijing bureau chief. let's have a look at what is trending today. yvonne: this time, from the former vice president, jack warner making some headlines. he's hosted this eight-minute video on social media, kind of lashing out on charges on him from the u.s.. he's saying that the u.s. have pursued corruption charges against him out of spite at having lost the 2022 world cup to qatar. "onion" article in his defense, a spoof article, as evidence. "the onion" is that fake news website.
not really helping your case there. he is facing extradition charges in the u.s. switching gears, let's talk about this story from the bay area in the u.s. , turned out to be a $200,000. she donated this apple first generation computer to a recycling firm. turns out it is worth $200,000. this is the computer that was built by steve jobs and steve wozniak in 1976. she says she was getting rid of some stuff in the house after losing her husband. the recycling firm say they sold this to a private collector and are now trying to find this mystery woman and split the proceeds with her because they knew she was going through a hard time. some people say, what was she thinking? hope it finds its way to a museum. other people, good to know they are trying to find her. this is an junk. it is actually a valuable these
cushioning the economy. greece turning to germany and france with more payments looming this month. hour, also coming up this territorial tensions. china and the u.s. step into disputed waters. they had a spirited discussion. a hands on approach. indonesian central bankers join farmers in the field, hoping to harvest success in the fight against inflation. plus, the art of communism. nostalgia fuels rising prices for soviet era work. all that and more in this monday edition of "asia edge." i'm david ingles. i'm keeping my eye on the markets. we are seeing mostly read this morning. futures last i checked were up three or four points. you have a slew of economic data across the region. mostly pointing to mounting challenges,