tv First Up With Angie Lau Bloomberg June 2, 2015 7:00pm-8:01pm EDT
let's check in on markets. to new zealand. it is fractionally lower. at 71 u.s. cents, we are counting down to the open in australia, japan, and korea. let's head over to japan. snapping that 12 day winning streak. the longest since 1988 and there you have it. chicago futures pointing to a lower opening this morning following losses on wall street. our top story. corruption drama has turned a new page with the sethise resignation of blatter. will step that he down after a special fifa congress. times" says he is
the focus of a doing corey. -- an inquiry. i will call an extraordinary congress and [inaudible] held as soon as possible and a new president will be elected to follow me. as the new president. i will continue to exercise my fifa.on as president to new elections are going to be held. are joined by andrew martin. blatter was only reelected a few days ago. what has changed here? andrew: that is the big question. four days ago he dug in his vowed to survive his
fifth term and he stunned iran by resigning. he is obviously part of the investigation. since indictments last week it has been fairly clear that eventually they will try to move there way up the chain to blatter. whether they have anything on him specifically or someone presented something that made him nervous, we do not know at this point. what is the latest in the investigation right now? last week they indicted five officials. the way this works is they indict these people, charge them, and try to get them to cooperate. up thely, they try to go chain. the top of the chain is blatter. his announcement today is so surprising. angie: his top lieutenants have
thesendicated amidst allegations here. can we expect anymore arrest in the pipeline including himself?y blatter >> the justice department has made it clear that they do expect more arrests and you alluded to the fact that his top , the general secretary was implicated in possibly being involved in a $10 million bribe for the 2010 world cup. again, he has not been charged. ter has not been charged. they try to get people to flip and provide information and gold up the chain. i expect that going forward, there will be more arrests. it is hard to see how long that will take. they like to flip lower people and go up the chain. at some point in the future there should be more arrests. thank you so much for
joining us on the latest. a blockbuster. blatter stepping down. we will bring you the reaction from sponsors later in the show. you can get more on the day's top stories and our new digital destination, bloomberg business. bringing back -- bringing the contentdigital all-in-one address. the latest on the standoff between greece and the eu. the sat onf it as steroids. hour-long -- that's right, nine hours where no heads. reaching --has
of reaching a deal has intensified after months of talks. there is no plan that both sides can agree on. what now? >> at this point there is too much confusion, even according to chancellor merkel. the situation as very confusing right now. be locked into a corner by creditors as they offered this final offer for greece. on the other hand they are saying they are not letting creditors dictate what grace will do. do.reece will and protecting the primary budget surplus will be .8 of gdp. that is missing the target of 1.5% they said in april but they
committed to a surplus of that amount for 2016 as well as the introduction of three different sales tax rates. the sticking point remains pension reforms, labor law changes, those issues still persist and they said that read line needs to be drawn but the imf payment coming up on friday. greece says they are able to pay the 1.7 8 million do there. the smallest of the four. this is coming at the end of the month. but again, a lot of confusion right now of what is happening. apparently on the german side, saying no, we are far from a deal. right now we have two on the table. angie: even before that investors seem to be off -- optimistic. the euro shut up, strongest and 10 weeks on the word that greece might be having to deal and all this coming about.
what will come out of these talks? reporter: that is a face-saving move and saying this confusion adds to the point where they could be more chances of early elections now, this referendum that could take place and even upping the chances of these capital controls being imposed in greece. a lot of convocations right now. we will see what happens when those talks resume today. what the greate talks mean for bond markets. zeb eckert is here with the latest market news. selloff intensifying into the u.s. session. i want to take a look at what is happening in the single currency, the euro. just to give you a look at what we are seeing out of europe and the expectation for a resolution -- a temporary resolution of the greek debt drama.
a surge yesterday. a 2% advance for the euro. that led to the selloff we saw on the bond markets globally. led by the drop in german bunds. the 10 year look at yields. here is the 10 year german bunds . yield rising 17 basis points. we see it at 0.71%. significant move here. you saw that in spanish and italian yields. the selloff going through the eurozone. that is what you see in terms of the yield and the same story in italy. crossing to the u.s., treasuries not spared. the 10 year yields rising eight basis points for u.s. bonds and point -- 2.26%. bonds are more expensive than stocks as we watch the unfolding action in europe and elsewhere. takata executives have
been grilled by u.s. lawmakers area dwight went unresolved for so long. hearingany told the that the chemical makeup of the explosives in the airbags have been altered by years of heat and moisture. the u.s. regulatory body monitoring the issue was quizzed. its own investigation temp -- hampered by lack of resources and personnel. and taking a dive after rejecting the buyout bid. fell on concerns that price competition will hurt profit. the companies have been trying to attract customers with promotions and china. it will boost revenues through its recent investment in its rival. and raising money through private investors. hyundai shares will be breaking record highs by now. on tuesday, the
lowest in five years. it is the worst performer on the cost me -- kospi. u.s. auto sales in may beating estimates driven in part by holiday sales and more upbeat economy. jamie butters. this is good news for carmakers. was, it was going to be a pretty good month. me is a good month in the u.s. auto industry and it turned out to be much better than anyone was predicting. almost any automaker did better than expected. if you reported gains when they were expected to have losses. it is the makeup of these sales, especially favors the press -- profitability of the automakers, heavily tilted toward hiccups -- suvs which tend to
pickups and suvs which tend to cost more. also the lexus suvs did well. especially the nx, smaller than their hiccups tidwell. you saw it across the board for everybody except ford which is changing to their aluminum bodied f1 50. 50.f1 even if you can afford an suv, does this add up to some big winners and who were they? jimmy: there is a sense of waiting for doom. those who are benefiting most, the surprise winner was honda.
they were projected to have the biggest decline of all the major automakers troops but instead they posted an increase, seemingly unscathed either the a situation.-- takat new redesigned fit is doing well and its cousin, the based on the fit saved the day for honda and had a great month and surprised people. goldilocks moment for the auto industry. jamie butters, thank you for joining us out of new york. that is the bloomberg u.s. auto reporter. moving in the right direction. we will find out more about the drive toward clean growth in southeast asia. stay with us. you are watching "first up."
stories making headlines around the world. 15 people have been rescued from the ship that sank in the yangt se river. of heavy agreement and personnel have slowed progress. weather is being blamed but the captain and chief engineer have been detained by police. alicia airlines and the government have settled a lawsuit filed by two brothers who lost their father went h-370 -- in flight mh-370. it vanished 15 months ago with 239 people on board. an egyptian court has postponed
a verdict on vomit morsi who is facing a possible death sentence. the decision will be delivered on june 16. prosecutors say morsi and other muslim of the banned brotherhood conspired to frame prisoners during the uprising that toppled hosni mubarak. the trial has been called grossly unfair. calling for is greater efforts to fight climate change in southeast asia. economies across the region are failing to reduce carbon emissions. the research comes from the institute of chartered accounts and england and wales. joining me is the economic advisor. we know that as emerging nations, trying to catch up to develop markets with growth sometimes things fall on the sidelines, including clean-air. tell us about how this sacrifice
has been made by so many in this region. is correct. 2014 was an interesting year for the world economy. stalledarbon emissions despite the fact the world economy grew. that is the first time that happened in modern history. look at southeast asia, carbon emissions are rising and there has been large increases emissionssion in -- in thailand in particular. seven timesions are greater than they were in 1970 so there is a huge way to go before they are in the green growth path. angie: why is that? or the factcturing that the infrastructure is not in place for people to get around? i think we have lost our
angie: thanks for being patient with us, everyone. we have reestablished our connection with our guest. what are -- what we're talking about is southeast asia's economic outlook and how many nations have sacrificed clean skies for growth. pollution is a serious problem here in this region. was, is it all manufacturing or is it as well the infrastructure of public transportation, is it in place as well to meet rising demand of growing wealthier -- a growing wealthier-- demographic? pollution increases,
over time, this pollution should diminish as the economy -- economies move from manufacturing to services. and moving from -- to higher value added manufacturing. in countries such as thailand you're seeing the government actively working to increase its in electrical vehicle production. economic development will relieve pollution but the government needs to intervene as well and it -- and encourage the growth of the greener industries. angie: what does this mean for economic outlook for these nations? will remain one of the fastest-growing regions of the world. they are relatively competitive such as singapore relatively tax competitive and a number of countries benefit from
a relatively young population. countries such as indonesia will benefit from the demographic dividend over the coming years which is going to lead to sustained strong growth. top performers in the region in your view? we have seen some still are gaseous stellar growth from vietnam and the philippines. do you agree? will expand by about 6% in terms of gdp in twice 15. thailand is going to under-per form and this reflects political problems and a lot of investment plans are taking a long time to come true in thailand. thailand is going to be the weakest performer out of the major economies. angie: politically, on a policy level, what is the commitment to not only growth but quality of growth? is difficult.
it is hard for governments to do these things unilaterally. if one country develops a greener agenda there is always incentive for another country to carry on collaborating -- polluting. any to work together to address some of these significant pollution problems. angie: that is a great point. we will loop -- leave it there. thanks for joining us. india's central bank cut interest rates for a third time this year in a move that was widely expected. ratebi lower the benchmark to seven point -- 7.25%. the governor said policymakers monsoon rains before making any moves. forecast.lowered the
the dollar rose sharply. let's head over to paul allen in sydney. the decision was widely expected. why do you think that the rba, what did the rba have to say about the aussie's rise? more about what they did not say. it was expected they would hold at 2% which is what they did. within the statement that accompanied the decision, there was no guidance as to where we might be going next, and the the of any easing, causing dollar to jump significantly, up by 1.4% by the end of tuesday. this is the second time the reserve bank of australia has done this. back in may when they cut the cash rate to 2% them a they were moved easing bias. effectively was
undone by the simple language that they used so while we have this situation where the aussie dollar is not white thinking as -- quite sinking as low, to give it a long-term context we are in a better position than where we were a year ago when it was well above $.90. angie: all right. paul allen out of sydney for us. the aussie dollar is one to watch today. coming up next. the latest company to announce an ipo but can it convince investors it is a long run proposition? maybe 10,000 steps a day. more when "first up angie: it is 7:30 a.m. in hong
kong and the sun is shining after what was a great weekend but things are turning around. it is the middle of the trading week here in hong kong and that is the view. from the minutes away opening of trading in australia, japan, and south korea. on your tv, on your mobile, and online, you're watching "first up." ♪ angie: the top stories this hour. has boss seth blatter
resigned. he made the surprise announcement as a corruption investigation widened. but "thet been charged new york times" said he has been the focus of the department of justice inquiry. four justice officials have been arrested accusing of skimming money. confusion with each side drawing up rival plans. officials said they had agreed to a final offer. billion toying $1.8 the imf and the government says it does have the money. sales,ices and public recording better numbers than expected. chrysler saw sales rise 4% than
last year for the best may in a decade. all posted better-than-expected sales. checking in on markets in asia this morning. unchanged, flat. dollar the new zealand slightly weaker. 71 u.s. cents. rba, we have a stronger aussie dollar. looking ahead to australia, japan, and korea opening in a less -- in less than a half hour from now. futures in chicago pointing to another lower open. we have dollar-yen right now rising but still at that 12 year low against the u.s. dollar. back to our top story. the surprise resignation of fifa president seth blatter. his time in office raises a lot of questions. we are joined by our sports
columnist. er ignored calls for him to quit when he ran for election. why this sudden change of heart? a surpriset is not that the department of justice has been targeting him. you have to think that the evidence is not -- is bald in the last four days. his had e-mails leaked that lieutenant received these $2 million bribes from the south african world cup bidding committee. there has been some more evidence and it seems to have snowballed in the last few days. view, bloomberg view, in your editorial, you wrote how significant blatter's resignation could be. will it change anything? reporter: we need to make sure it changes things.
we never thought that something like this could happen. this shows the department of justice and sponsor pressure and public pressure can actually spur change in his organization, but there is so much more reform that needs to occur. we need to decentralize and hurt -- authority and make sure this does not stop with one man. angie: what do you think this all means for the world cup? is still standing strong with the cuts in russia and qatar. unless we geten more evidence that there were corrupt processes going on. stay tuned and we will see what will happen with that. angie: that is the story we are covering all day. as news broke that seth blatter will step down, corporate
backers came -- gave reaction. when initially we learned that arrests had been made, we heard from all the top sponsors. a lot of strong language. what are they saying now? reporter: let me put this into context. fifa has five what they call partners and below that, they have two major sponsors. among the seven, we're still waiting for [indiscernible] which is the other one. something that is consistent in the message is hopefully this brings about a new period of change. regarding -- regain the trust and so forth. let's get to the statements and tons of reaction from the stakeholders. strongest --y the one thing started to happen, this is what they had to say. blatter announced.
rom. we know they have an agreement the 2018 world cup. they fairly tangible that -- what they said. it does not stipulate any changes in case of the change of management. they also added that seth blatter did a lot for the development of soccer. he is very vivid and an ambitious person. can we get the one -- just very quickly here. there we go. big first step in possibly reforming, so and in some -- so forth. angie: the sponsors have been putting a lot of pressure. reporter: they put a lot of money on this. angie: on fifa.
heart -- a change of change of heart after being elected. thanks for wrapping that up for us. on fifa. tells organization says there is no need for trade or korea.bans on south here with more. are working to isolate visitations. the concern here is that the virus has now spread to people who had no contact with the patient who considered the source of the local outbreak. that would suggest a much wider outbreak and there has been some criticism that the south koreans have not acted fast enough to isolate potential patients so this does not turn into a major public health catastrophe. right now we have 700 people in home isolation. more than 100 people in isolation and government facilities, and of course, the
government met -- working fast e a closer look at what is happening on the ground there. angie: this is a serious concern and probably a big hit in terms of perception of korea because this is a popular tourist destination. the moment tourists here about this, the kind of want to stay away. health the world organization saying about what things are actually in korea? there is no denying that this is the whitest outbreak --side of saudi arabia and whitest outbreak outside of saudi arabia. you have seen a tumble in the markets but the world health organization which is the authority says there is no need withn travel and trade south korea for this virus. they say the south koreans do not need to institute special screening for entry into the country. that the parameters, the protocols in place right now are appropriate. that may not be enough to allay
concerns of travelers. we know that south korea is a hugely popular destination, particularly for asian travelers. the shopping offered there, the flights to south korea regularly very full. popular among chinese as well. if you look at what is happening with stocks, those stocks and related to health care have taken a beating. david reported about some of the tourism companies, the airlines, take a look. they were down significantly in yesterday's session but health care stocks were the big winners. one of the big gainers. these are the kind of stocks you want to be watching as the session gets underway in 20 minutes time. angie: we shall do that ended. thank you. time for a look at the corporate stories making headlines. here is a bond. ne.yvon they are aiming to save
more than 3 billion years -- 3 billion a year. are hoping to respond -- two reduce expenses by $2 billion. targeting shoppers.ious the plan replaced all customers including those not enrolled in the amazon prime worship program. attract usersg to from ebay. -- rosestic sales added more than 12% thanks to unusually warm weather during the month. holiday also helped lift sales. those are the corporate headlines making news this hour. fitbit is looking to
exercise its clout. the maker of wearable fitness were hoping they for potential acquisitions. reporter: this belongs to a colleague of ours and he is trying to count his steps. now they are going to ipo. are looking to raise as much as $478 million in their point -- 28.528 million shares. that could bring as much as $3.3 billion, it is a pretty good value. the company lists on the stock exchange and it is planning to price the ipo on june 17 so it is coming up in a couple weeks. devicesold 10.9 million $745 million.e is
you can see that is a big jump from one year to the next. and it brought in more than $100 million in net income last year. the report also last year shows that the number of fitness devices is going to triple. the demand for this kind of product we can track your exercise and your sleep and try to work that into your everyday routine will get more popular. angie: thank you so much. the money managers selling their top tips to fight cancer. n hong kong with this year's beneficiary when "first up" returns. ♪
angie: the analysis of photos of wreckage shows it was hit by a missile.of a has launched a defense drills over the baltic over -- while tensions with russia remain high. moscow became strained after the westlake accused russia of destabilizing ukraine. breccia is holding military -- russia is holding military exercises and plans more by the end of the year. has revived
[inaudible] will remain at phone companies but the government will be able to search them with a warrant. the legislation has been sent to president obama who is expect it to sign it quickly into law. ay to money giving w managers for the investment conference. the global charity is pardoning -- partnering with a foundation which raises awareness of gynecological cancer and promotes hpv vaccination. thank you for joining us. this is to honor the memory of your wife who committed deeply to helping save so many lives. but doing it in such a unique way here. tell us about the sohn conference.
ohn conference has been an institution in the united states and europe for about two decades. they came up with a unique concept with having the investment industry, money managers come present their best single idea in a very exclusive way to a knotty ants and the -- to an audience and he audience can take a look at and here the for themselves and maybe make some money out of it well supporting a very good cause. angie: the price of admission is high because the potential to make a lot of money, a lot of upside, it is worth something to each and every one of those investors in their it at the same time, you have people giving away their best ideas for charity.
guest: that is right. the returns from last year's confident that conference were exceptional. if you had invested he would have made a tremendous amount. angie: give us an example. guest: there was a company that presented at the conference last its stock is up a lot. we are talking 60% or 70%. manyother -- is similar to other ideas that were presented. we have seen tremendous feedback. members of the audience have come back and donated part of their returns to us and also come back running to hear more. that: does it surprise you investors are there half because of obviously they can make a lot of money of -- out of this but the other half contributes to what has been something close to
your heart. which is to prevent cancer. guest: that is right. in will hong kong, there is some work to be done. cervical cancer which is what my wife suffered from is very preventable with a vaccine. the vaccine has only 10% uptake in hong kong. and in the west end canada and upwards, we are talking of 90%. is the something that least that out to be done. we are starting a drive to schools in the western territories with 15 more schools that have responded and we are hoping that we can set a model for the government and the community here to adopt the vaccination. that could kill a lot of certain -- cervical cancer. angie: today's speakers, they
oversee $20 billion, assets under management. tell us some of the speakers and a hint of some ideas that they might be talking about. speakers,have several seth fisher, rob crawford, a number of folks from japan markets, some folks in asia. in terms of ideas, i do not want to steal their thunder and i do not want to preclude the audience of learning the ideas at the same time. i will encourage anybody to come attend the conference and listen to them. it will be a great event. it is for good cause. angie: the current environment is such that a lot of people are looking for those good ideas because it is a very volatile market there. and china has got a lot of upside but also a lot of challenges and we have the fed and the rest. global -- are the ideas macro or are they mike ideas as
well? maybe it is that one company that somebody has kicked the tires on and really felt that this is something to share. what kind of -- give me a characteristic of the kind of ideas. scope can be very broad. in the past, we have had mostly single stock ideas. they are sometimes driven by a schematic macro-theme. so we have had ideas that range investments in indian atorcar companies, which are thematic tight idea and we have investments in a niche japanese industrial company that is serving a unique market but doing it in a very profitable way. it is across the board and it is all very interesting. angie: interesting, exclusive, and helping to raise money to fight cancer. thank you for joining us.
angie: welcome to the stock exchange. we are looking ahead to the open in japan and south korea. here to tell us what stocks to keep an eye on. m talking about stocks. this is a morning program. just to make a difference -- we are talking about some restructuring. they are merging their units and a babyg a new company,
foods brand. let's see what happens with that today. about 35%. toyo engineering, one of the four foreign country -- companies that paid bribes to win several contracts in brazil, allegedly. angie: let's see what the reaction is to allegations. nearly 50% iny one year. we had the retail out yesterday. sales of 12.3%. it looks like that is set to continue. thank you. that is the verdict from the stock exchange. the stocks are based on news events and we will be back in an hour to see how the stocks have done. looking ahead to the next hour of the show. what is next for fifa after the resignation of seth blatter? we will get more analysis.
john: im john heilmann. mark: i'm mark halperin. and "with all due respect," and with all due respect to roger goodell -- it's not hard. ♪ mark: happy national rocky road day. in our lineup, the florida chatter, the bernie matter and intercept blatter. nevada has voted on it bill that would change its caucuses to a primary. mark, who wins and loses? mark: it's a huge lose for the