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tv   Trending Business  Bloomberg  June 2, 2015 10:00pm-11:01pm EDT

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blatter says he does not command widespread support. economy givingng sales a lift. let me know it you think of our top stories. a look at the markets. the fat gdp numbers. >> a lot of red on the screen. hong kong reversing yesterday's decline. the skit you up to speed and what is happening in australia. the decline in the markets about .8%. oil and mining services companies are doing well today. to gain of 5%. so many movers to the downside
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here in sydney. indonesia getting underway. index, coming back from a holiday yesterday. a end said saying that it is caught between a rock and a hard place. it has been moving to slow the course of depreciation in its currency. keep your eye on a dial energy. elsewhere around the region, we see stocks swinging between gains and losses. -- the cost be advancing kospi advancing. shares are seeing selling pressure today. jen and i pharmaceuticals, down 12%. one pharmaceutical stock you want to keep an ion is
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[indiscernible] the world health organization noted in that it is safe to korea and do business there. what are they say that there is no reason to ban travel. as we noted in australia, the movie is .8%. the aussie dollar, take note of this spike. this is an intraday chart. look at this move. this move happened around 9:30. it shot up. better than expected gdp growth number for the first quarter. let's get the paul allen in sydney. paul, where was this boost coming from? how: we said it was better than expected but we kind of expected it. we had a situation where analysts were scrambling to
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improve their gdp forecasts. we had a current account number that suggested exports added .5 of a percentage point to gdp. the numbers ended up looking , beatingod, .9% expectations of .7%. giving us a year on year of 2.3%. a better than expected gain but still lower than the year prior. it all looks very fabulous, but is it sustainable? the reserve bank of australia held the cash rate of 2%. but in its statement, it made all the usual warnings about mining and investment being week. -- thelic's of ending public spending situation being subdued. so there is wonder whether this gdp growth is sustainable going ahead. the treasurer joe hockey hopes so. us toects to be turning
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be returning to surplus by 2019. we will have to wait and see if that happens. we have made an encouraging start for the first quarter of the year. paul.d: thanks, we will have a look at that story in a bit more detail. tweet us your thoughts. let's take a look at another story making headlines globally. er. fall of sepp blatt he says he doesn't command wide enough support and it is time to go. >> he said it was in the best interest of this board that he stepped down. he hadeasily re-1 -- easily won reelection.
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but he does not have a mandate from the entire world of football. the fans that live and breathe football as much as fifa. what's next? another election will be held this december at the earliest, between december and march. is guy favored to win [indiscernible] blatter supporter for many years and then turned vocal critic. david ginola has announced his interest. you have the dutch fa welcoming
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the news. brazil, they have expressed a little bit of a surprise with this news. what was not a surprise was russia's disappointment on blatter's plans to step down. is elections as early as this december. rishaad: thanks, david. forne: good news automakers, made beating estimates. been a great market in america. gas prices are down pin interest-rate rate are still low. it is still easy to get credit. toyota, nissan, and honda also said better-than-expected sales. the bigger surprise, forecasting the biggest a client of any major automaker. it ended up.
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roaring past nissan for your today totals. hyung they kia may be the sore losers. facing rising competition from foreign brands. 8.2% from the year earlier. the carmaker failed to boost deliveries even after cutting prices on most models. shares sank 32% in january, the lowest in at least 15 years. heads to minister brussels today. he end creditors putting rival plans to avoid a default the deal has intensified after months of fruitless talks and missed deadlines. he found himself boxed into a corner as leaders worked into late hours of the night to draft this final offer to end the stalemate. greece says, no, we have a new plan.
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the athens news agency reporting puzzlee 47-page or projected a budget surplus for the 1.5%, which is target they set in april. they also introduced three new sales tax rates. thegerman side says negotiation situation is still very confusing. the dutch finance minister says they are far from a deal. as long as it doesn't mean -- itic conditions doesn't meet economic conditions, we cannot meet halfway. finally, we are learning more about the company's anticipated ipo. the maker of wearable devices says its plan to use proceeds andresearch and development potential acquisition. it is looking to raise 470 $8
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million and plans to offer nearly 30 million shares for about 14 to $16 apiece. bethe high-end, that would 3.3 billion dollars. it is expected to price its ipo in about two weeks. profitable with over a hundred million dollars in net income. still, the company says there are some challenges. competition has gotten fears companies, samsung and apple watch in the mix now. for users tondency stop using activity trackers after a few months. rishaad: how to reverse migration is helping to fuel india's tech boom. rainfall, ater on,
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how thatoon, and tha can determine the bank of india's next move.
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rishaad: better than expected gdp jump in australia. let's go to sydney to get some analysis. what did you make of those numbers, 2.4%, wasn't it? it was pointed percent quarter on quarter, better than anticipated. david: yeah, much better than anticipated. i reckon the rba will be a little bit frustrated.
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he would be happy with a result, but in terms of with the exception of the economy, what the data say's, a little bit counterintuitive. a stunning result locally for the gdp. yossi checked back up. looking pretty resilient. the outlook for the rba is probably to keep their hands in their pockets. it was 2.3% year on year. is kind of counterintuitive. at the end of the day, this number was help loan by exports, boosted by the weakness in the industrial and dollar. -- the australian dollar. david: you would think so. the contest the economy is in an interesting sort of juncture.
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i was looking at last week's result. if we take the capex numbers, which were horrendous, ubs quoted them as saying they are beginning to go towards recessionary levels. an economy that is trying to transition away from a mining resources hiving led boom, it -- from a mining resources-led a little bit unnerving. australia is where the rba is comfortable with it. the wheels are certainly turning. rishaad: yes, absolutely. what happens next? what does the reserve bank actually want? they want a 75 handle for the aussie dollar. how are we going to get there -- how are they going to get to that target?
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and terms of where the aussie dollar goes, the aussie is probably going to keep within a fairly contingent range. tore are some calls for a push back up towards the $.80 mark. really thing that will help us get there is significant weakness in the u.s. dollar and maybe some stunning data as we saw today. will help usg that get up there. but in terms of where the rba needs the aussie to be, certainly fair value at the moment with savings around 75. there is an argument from our perspective that it would be around 70 of sense -- $.74. offe get closer to the lift day for u.s. interest rates and policy normalization, certainly that will engender stronger u.s. dollar focus. nowink we are in the range where we are asking staff to see a little bit of an impact in
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terms of what last week's numbers meant to the economy in where the impact will be from a confidence perspective. investment which is waning, it's a little bit concerning. it is probably not an issue in terms of access to cash and capital. there are a lot of cached out companies that are looking for investment but they are not happy or confident with the environment in which to do that. there are a couple of competing things. term, theyo medium start tracking towards 75. rishaad: great talking to you. >> 15 people rescued from the sank in thethat
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yangtze river. a people were pulled alive from ship. the lack of heavy equipment and expert personnel has slowed progress. bad weather is being blamed. the ship's captain and chief engineer have been detained by police. the russian maker of an air defense missile system says it concluded that malaysia flight was shot down by the ukrainian military. analysis of photos of the wreckage shows that the plane missile and auk longer in service in russia but in ukraine. nato has launched an defense drills over the baltic as tensions with russia remain high. to exercises were designed coordinate regional forces with
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the rest of nato. relations with moscow became strained after the west accused russia of destabilizing the ukraine. russia is holding military exercises and plans more before the end of the year. , a cyber cleanup. crackingse government down on words deemed too dirty for the web.
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rishaad: demand is rising around the world for ultrahigh luxury homes. in los angeles, a new mega-mansion will soon be on sale at a remarkable half $1 billion. . reporter: a birds eye view of a los angeles mega-mansion under construction. asking price, half $1 billion and a u.s. record. artist renditions imagine the finished complex, one of the latest in a series of new luxury homes now the market around the world. while we cannot access the l.a. construction site, nearby this is a property we can. 25 acres on a bill or hilltop owned by billionaire jeff greene.
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this is currently the most expensive residential listed property in the country. welcome to palazzo di amore. joyce you are going to take me on a tour. certainly am. 2010, i closed to the highest sale in the united states and that was at $50 million in 2010. now we are seeing many sales at $100 million. reporter: on our tour, the music room is first. joyce: isn't this spectacular? reporter: this is three times the size of my apartment. this is one of the family rooms. ille in themini versa backyard and a vineyard. favorite,s is my cabernet. reporter: a larger room downstairs holds a lot more. there is the formal dining room
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and a two-story entertaining complex separate from the house. joyce: we are ready to dance. danceer: with revolving floor, bowling alley, and infinity pool. when it comes to buyers, the air up here is thin. joyce: we have people from around the world coming to look. a real estate that accommodates a large family, there aren't many like this. reporter: looking ahead, more luxury properties like this, over $100 million, will be sold. around the world in 2014, 5 buyers went to new york, connecticut, france, and hong kong. $600 million in total. rishaad: it seems like an adequate dwelling. let's have a look at what else is going on. aegon: we were --
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here is yvonne. yvonne: it is a long list. the chinese equivalent of f bomb and your mother. mom"ost popular term "your used a quarter of a billion times on the internet. roz: so watch your words. : you are looking at the chinese box office. roz: that's right. a very popular character known across asia, this little cat robot character has been around
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for a very long time. this movie was released in china last week. the first -- to be released in china in three years now. this has topped the box office so it has been very popular. raking in $88.3 million in its first week. "avengers" has been in cinemas for a few weeks. chord withs struck a some of the chinese moviegoers because it has been around for so long. it resonates with people's childhoods. one person saying, we will just mon movie today and i couldn't help but cry
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because i was reminiscing my child heard -- childhood. little japanese cat -- yvonne: helping with public relations. expect to bring the tissues. up next, on the road to reform, how sponsors have reacted to blatter's resignation. equities on a downward slope. we have the japanese lunchtime break coming up. this is "trending business." we are back in the next couple of minutes. ♪
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rishaad: the aussie dollar surging above the 78 sends, better than expected reading of gdp.irst quarter driven by a 5% jump in exports. beating economist expectations. a day after the rba left record low interest rates on hold. ter resigns amidst a corruption scandal.
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he has not been charged. he is being investigated by the department of justin. -- department of justice. great concern over the progress over the debt toxin greece -- debt talks in greece. eu officials said they agreed a final offer. the government saying it does have the money. taking a look at what is going on in shanghai and hong kong, here's zeb. zeb: we have seen the shanghai composite dipping into the positive territory. perhaps we will swing into positive territory on the water benchmark as the day goes on. 5%.ghai, up about we see these markets moving in tandem. yesterday, we had to emergence
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at the close that's 1.7% rally on the optimism the a shares and chinese investors coming to hong kong to buy their shares. they get better brokerage freeze -- brokerage fees and better opportunities. oil and energy-related shares are doing quite well. we are tracking oil prices today. they are moving ahead of the u.s. stock house data. today is the debut of c.k. property. he doesn't see much room for hong kong property prices to tumble. kongis positive for hong homeowners and buyers. and among the shares on the
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china enterprises index, the a shares listed, property shares have been a bit mix. local developers have been doing well. reals far as the -- estate, 1.2 4% gain here. nice performance within the hang seng china enterprises index. bonk is bucking the trend. this is what you have. they are moving lower and the stocks that are following, only one rising. china merchants bank and construction all leading on the downside. property is a thing you want to continue to watch as a speculation for what the chinese government will do next to support that market and here in hong kong as well. there are promising signs. there is a lot going on today. rishaad: the estoril and economy
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growing more strongly than thought in the last quarter. it is driven along by improving exports. these numbers beat expectations. about this read being better than anticipated, right? paul: that's right. we got a bit of an indication that something special was in store with yesterday's current account numbers showing that experts are going to contribute half a percentage point to gdp. so we have a number of analysts scrambling to update their forecasts for today's gdp figures, which did rate earlier expectations. giving us on annualized figure of 2.3% for the year. expected,n the 2.1 but weaker than the 2.5% we had for the previous annual period. so that is all very good news. we have the reserve bank of
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australia. yesterday, holding the cash rate at 2% as was widely expected. but in this statement was all forecastsdownbeat with growth they below trend, being weak, about public spending being subdued. so there is still plenty of headwinds for the australian economy. today's gdp growth figures certainly varying -- certainly very encouraging in the interim. [indiscernible] joe hockey, the treasurer, speaking about these gdp numbers. the company -- the government having a lot of medical capital tied up in all of this. paul: it does indeed. hockey predicting a gdp growth in 2019. the theory is the treasurer, doing his best to get as much
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capital as he can out of these good numbers this morning, he said they were consistent with expectations, confirmed australia is writing to the challenge. he also drove up the production boom. undermining production has broken all records. the strongest result for experts. he also talked the potential with the services industry, which makes up 77% of australia's economy. but just 17% of the exports. this is something that joe hockey would want to improve upon while he is in office. he says that services and exports are up 8% in the last year. expect that to be help the longer the tree -- the free trade agreements recently signed. joe hockey in a good morning this morning, thanks to the gdp figures. the candidate all be sustained? rishaad: paul, thank you. let's go to our other top story. sitting down.
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corporate backers giving them a letter pressure. zeb: you have two major sponsors who are present in the world cup and the confederation cup. it is worth noting, without the funding of a lot of these poems and the to goal support, it's like the world cup would be possible. let's get to budweiser. they basically expect this to resolve step down internal issues come install positive change and adhere to ethicalest level of standards and transparency. there is pending resignation that marks a step in the right direction.
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interestingly, take a look at this one. that is quite a bit of news. fairly important backers of fifa expressing they are welcoming the development. rishaad: let's get more reaction to this. thank you for joining us. we were talking the other day about this. you said perhaps you may go in about 12 months time that he needed to go here.
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what do you think made the pressure unbearable for him to stay as resident russian mark >> i think one by one, his close confidant and aides were being mad so to speak. jerome lookers position becoming untenable. ,robably when he realized that there was enough and he had nowhere else to go but to leave. rishaad: there are reports that he is a -- he is under investigation as well. with everything going on, he is bound to be under investigation, isn't it? >> will, yeah. after all, he did preside over this whole affair for many years. it would be odd if he wasn't questioned about his knowledge and absence thereof of the various goings-on.
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i think iter whether is absolutely incumbent on him to make sure that -- rishaad: i think we lost him. we will try to get you back to him as we get to that line up again. checking out other stories. withdrawals from emco's flagship month -- withdrawals from pimco's flagship. a morgan is hanging up on voicemail. it is aimed at saving more than $3 million a year.
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jpmorgan has been keeping staff reducing annual expenses by $2 million. to decideces have yet whether to add mainland chinese stocks are the benchmarks. you can see mitchell funds dive right in. chinese willng the make up the market find. 141% within the last year makes performing.e best
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rishaad: before the break, we had some technical problems. we were discussing how sepp blat ter may have been under investigation. you say you are not surprised by that. head of anou are the organization that is mired in so much controversy, it would be odd if you weren't questioned. are actualnot there allegations against you, that is a different matter. i would be surprised if they did not pull him in for some questions. i don't think that is a surprise in itself. but what i do think, before he leaves, whenever that may be, mr. blatter will have to make
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place a goodin and a properorm way of choosing his successor. there shouldn't be any more negative legacy that is left behind by sepp blatter. rishaad: isn't he entirely the wrong person to be doing that? in your view, who would you like next?the helm of fifa guest: we just had an election and we had two candidates at the end, the incumbent and prince ali of jordan. i was very much upping prince ali would win. he is young. he has reformist ideas. he is popular. as somebodyacross who is very quiet, sort of
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introvert. but actually, he is very passion ate about the sport and changing it for the better. what should anybody who takes the home, what should be the priority in your view? prioritiesainly changing the way fifa is run at the top. maybe an age limit. also, people have to look at a way the executive committee is formed. inre are just 24 people nine-member associations governing everything about fifa, including the way the world cup hosting rights are allocated around the world.
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--ch is why there is so much well, not why, but certainly one of the reasons that gave so much or corruptcorruption practices to be generated in the first place. that needs to be looked at immediately. come inone association other words, one member, should continue to have one vote, that is another question. all right, it is nice and good governance, i had my own questions. my top three would be those. quickly, has it become highly unlikely that qatar will be hosting the 2022 finals? i wouldn't want to second-guess what happens on that front. it is so mired. it is a real can of worms.
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lid is only just about staying on for now. ise pulled lose, i think it going to be quite messy. look, should qatar be allowed to run it? possibly yes. that a fullondition story, a full investigation of what actually happened being made known. for example, the michael's garcia report. you have to ask why it is being repressed. we need to know what is in those reports. only then can we move a couple enough., fair improve the, let's and very important
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decisions are made in the future. rishaad: thank you so much for joining us. yvonne: malaysia airlines and the government have settled a lawsuit filed by two brothers who lost their father when flight and makes 370 disappeared. the boys sued for negligence and breach of contract. the amount of compensation has not been released but was agreed upon by both sides. it is believed to be the first settlement over the flight that vanished 15 months ago. have postpone a verdict on mohamed morsi who could the densely receive a death sentence. prosecutors say morsi and other leaders of the banned muslim brotherhood conspired to free prisoners during the arab spring uprising.
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amnesty international has called the trial grossly unfair. the controversial post-9/11 surveillance program, two days after allowing it to expire, the bill will be phased out by the end of the year. records made public by edward president obama has already signed the bill to law. jakarta is being questioned once again by congress. news is grateful for this and others. what have we learned about this chemical propellant that took out their users? >> you are exactly right, the lawmakers wanted to know what is behind their area the root causes something that we haven't
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andn, according to takata the automakers and the regulator at the top and we know there is a number of causes. one of the suspected causes was that ammonium nitrate, the cup would heard it. as long as that chemical is controlled and not exposed to humidity or is -- or moisture, it is safe. saveood by that by a good for the first time today that ammonium nitrate is a factor in these airbags deplane with too much force essentially breaking up and exploding in passenger spaces. to movethat it is going away from that chemical compound. there has been some confusion about whether it is or is not. but executives who testified before congress on tuesday in washington said he expects to
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see a very quick move to another compound going forward, which is a major development for the company. rishaad: how are the regulators in the u.s. handling this issue? and a quick issue over whether takata can survive this? is an open question which is in large part dependent on what other parents or even what other automakers step up to shoulder some of the costs. you look at the amount of resources on its balance sheet, it is just not there versus the cost of cleaning up this mess. itsa, the regulator, for part, is starting to use this crisis for its agenda. it is putting out its lack of funding and an inflation-adjusted the basis. and arguing for more funding and the ability to be tougher on the
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industry going forward. rishaad: thank you very much. to take a break. a little rain and a lot of shine. -- are heading to
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rishaad: just a few minutes to go before the start of the session in mumbai. the government has cut the rainfall forecast and that in turn has reduced to the reserve bank options for girth your options for growth. reporter: while there is no rest for the heat, it is very hot
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here in mumbai. the modems -- the monsoon will be the headline worry. goes, thethe update government said yesterday that rain all maybe 80% of the 50-year average between june and september, which is less than 93% which had been predicted in april. the rains have yet to really arrive. they were supposed to have started on the first of june. why is this so critical in a country like india? 15% is the contribution agriculture has in terms of gdp. food management will be critical in the scenario. that is a view reflected by most
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brokerage houses. government, since it took over last year, has been very cognizant -- rishaad: that's always got time for. that is it for this edition of "trending business." .
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john: i'm john heilemann. mark: i'm mark halperin. and "with all due respect," and with all due respect to roger goodell -- it's not hard. see? ♪ mark: happy national rocky road day. in our lineup, the florida chatter, the bernie matter and intercept blatter. but first, a primary caucus. chooses the latter. nevada has voted on it bill that would change its caucuses to a primary. who wins and loses?


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