Skip to main content

tv   Trending Business  Bloomberg  June 3, 2015 10:00pm-11:01pm EDT

10:00 pm
telling people not to spread rumors after a series of posts speculating that he will buy blackberry. me on twitter. story, thethe top , a $3 taking a tumble billion shortfall is said to reverse the currency's gains that came about. here also surprise given that number was better than expected because of exports rising. worster: he got .88, the -- we got 3.88, worse than
10:01 pm
expected. it is suggested that net exports contributed to a good gdp figure yesterday. it was not reflected in these numbers. steeply.for iron fell in march, they were $4 billion. in april, just $3.4 billion. similar story for cold. -- coal. revenues for aluminum, gold, and beef also down, as well. if we are looking for silver lining, there may be a seasonal aspect to this. there has been poor weather, port closures. during this. , we have seen a gradual recovery of iron ore. before we start -- really thought debating ourselves over this 3.8 billion dollar deficit,
10:02 pm
perhaps we should wait for the may figures. much,d: thanks very indeed. the dollar taking a tumble, let's find out more. 76.d: below is closer to there is a trend that you can make out of this, we are looking in two orgest drop three years, taking us back to lates, back to about january, early february. that means looking across the
10:03 pm
markets in asia, the regional benchmark being pulled down. jakarta just getting underway. 500 last id, s&p checked was down 10 points. let me point your attention to the bond markets. markets is where the action is. a reversal from earlier this year when bond levels were falling to record lows. we are at 299, so going up and not as much as 25 minutes back. take a look at where we are as far as japan is concerned. going back to october-november of last year. back to you. rishaad: a more detailed looks
10:04 pm
at the market and the australia trade deficit later in the show. don't worry, the great by minister is striking a cheery and optimistic tune after the the latest talk with creditors. they say there will be a deal in the next few days. all leaders had some positive comments after four hours of talks in brussels. the european commission saying the talks were constructive, the president saying the meeting was good. the most positive remark coming from alexis tsipras, saying an agreement was inside. he said people should not worry about the imf payment on friday. that is the payment of $329 million which is the first of four installments.
10:05 pm
he said they were very close to an agreement on greece's primary surpluses. amid this optimism, there were hints that there were lingering disagreements among the leaders, alexis tsipras saying he thinks the most realistic -- the only realistic proposal on the table came from the greek government, saying that the basis for any agreement must be a great proposal rather than a proposal put in place by creditors. alexis tsipras saying he is optimistic that the commission will continue with a realistic point of view. rishaad: thanks very much, indeed. other stories we are watching today. yvonne: we are talking about fifa and learning more about the corruption scandal. explosive evidence revealed for the first time with a former senior official detailing
10:06 pm
bribery and money laundering. we are talking about chuck blazer. he gave evidence to a new york court in 2013 but the transcript from that hearing has only now been sealed. blazer admitted to significant crimes, pleading guilty to counts of racketeering and tax invasion. agreedother executives to set bribes for the selection of south africa for the 2010 world cup. it opens a whole new side of the investigation on how other cities may have been awarded. as we know, the united states has charged more than a dozen officials with widespread corruption. the justice department also says more arrests are likely. plunging down to 6%, the lowest in three months. the online mall operator plans to raise $1.5 billion in a
10:07 pm
public share sale to pay down debt. it is going to take place in japan and overseas in will be priced later this month. this'll be the company's largest offering since its ipo in 2000. there were reports that rakuten inc. will raise fund-raising targets. made two larges acquisitions in the last year. finally, we are talking about the talman square, the event marking the 26 anniversary of the crackdown did it seems like chinese authorities are taking no chances. at have not been able to transfer money in values contain the numbers 64 and 89, the day of the event.
10:08 pm
boxnction showed a text displaying a transaction error. uses try to send amounts using ¥89 or y64. transactions not continue the sensitive numbers did not go through. coincidence or attentional? you to set -- coincidence or intentional? the tiananmen square incident has been a highly sensitive issue in china. rishaad: another story we are falling in indonesia, the country is using drones to catch tax evaders. later on the program, concerns over his food safety in india after high levels of lead or found in instant noodles. the latest from mumbai after the break. up, makingo coming stars out of stripes, talking to the ceo.
10:09 pm
10:10 pm
10:11 pm
rishaad: let's look at the technology stories we are following. china became apple's biggest market for downloads as more developers produce apps and mandarin. china still lags third behind the u.s. and japan as a source of cap revenue. -- cap revenue. -- apt revenue -- app revenue. they value it acquisition of $5 billion. they hope it will replicate the success they had with alibaba, he had a stake 15 years ago worth more than 70 billion now.
10:12 pm
deals, the ceoh of hsbc says it plans to split into two, hewlett-packard will focus on cloud security and software, while the other unit will focus on printers and pcs. moreere will be some restructuring costs as we continue to be effective and lead and competitive. this is a global economy and we have to be competitive. we are very thoughtful about this. what i know is if we don't get our structure right, this will not be the happy ending that we all know it can be. rishaad: the tech industry can never be accused of lacking in vision. the internet of things, where
10:13 pm
users exchange information with those around them. involved is closely with mobility in the cloud, aiming to expand presence across asia. thank you for joining her it tell us what a smart city is and how it works. guest: it is a way for governments to offer improved cost structure, make them more lean, but also to up rent great deal of service for their citizens. give me a practical example of how that would work. guest: one example could be public transport. being able to track where the buses are you can have the better service or providing when theon to people bus will actually arrive at the specific bus stop or if you are into energy, you can look at having a smart city that can better monitor and better
10:14 pm
balance the power grid for more efficiency. indeed, know where you are all the time. guest: that will probably be harder but possible with the use of cell phones. rishaad: many would say, perhaps, that it is a bit orwellian. what is your reaction? guest: i don't think it is particularly orwellian. the services that you can get and privacy has probably been overdone by a media and that people don't have to opt in, people cannot really be tracked unless they want to be tracked. when that is done, it is done on a meta-level. see you cannot see the individual, per se. about theell us
10:15 pm
technology which underlies all of this, as well. how much is your purchase of motorola at the moment underpinning this? things is internet of a big trend for smart cities, and underlying capability. which is one of the strong technology trends that we follow. our focus is on the enterprise side than the smart city. tend tornet of things be focused on how to connect the digital world to the physical world, how to get more customersn in operations or city's operations and be put a transit that information into something insightful, something actionable for applications to use or for employees to use. right, when you getting the most -- where are you getting the most out of interest? guest: we are getting the most andrest in manufacturing
10:16 pm
retail, also in health care. most of our markets are adopting internet of things related technologies, to drive efficiency and services. the industrybably that is the most advanced when it comes to internet of things. in-storet things like this ability. you can put tags on jeans so you can know exactly what type or style, seed can reorder the ones that you don't have but you don't have the reorder the ones that you are ready have so you have a better inventory -- or less introverted -- less salesory, but higher because you are more likely to have the ones customers are looking for but also ranging to things like bluetooth tracking, where you can provide additional coupons and other services to customers to move through a store -- more related to their
10:17 pm
specific shopping habits or where in the store they are. rishaad: just kerry quickly, where you are getting the most interest, china, singapore, indonesia, where are you getting the most traction? guest: so we have very strong business in asia. we were up 11% in q1. china is our largest market. we see a lot of interest particularly out of china. also from japan and australia, singapore. widespread. last year, we cosponsored a about the internet of things, and the statistics came out that asia is leading the world in adoption of internet of things applications. rishaad: thank you so much for there ins singapore.
10:18 pm
>> stories making headlines around the world, the philippines president describes rising tensions in asia as an ac echo. speaking to lawmakers, he says beijing's claim to islands in the south china sea is increasingly threatening trade and security. beijing dismissed the comments as absurd and unreasonable but the president said asia must stand up to china. >> the purpose -- the prosperity asiaritime in southeast which relies greatly on the free s.vement of goods and people' >> ukraine says pro-russia rebels have launched a defensive in the east, phyletic and already-shaky truce. fighting broke out, reportedly involving heavy artillery.
10:19 pm
the clashes have continued under the cease-fire signed in february in minsk. nato says russian forces are directly involved in the 15 month-long conflict. south korea has tested a new ballistic missile could hit targets anywhere in the north. a new weapon has a range of more than 500 kilometers. it is part of plans to upgrade south korea's defense system. and in response -- in response to continuing aggression from pyongyang. next, could this market be the next big opportunity, when trending business returns, how one investor is turning to twitter. ♪
10:20 pm
10:21 pm
10:22 pm
rishaad: this is trending business, i am rishaad salamat. china is a red-hot ipo market. stephen engle's has been all over this. let's look at these numbers because there has been 144, red-hot with the new rules
10:23 pm
and margin lending rules, 144 firms have gone public this year. they have jumped on average 44%. investors in china seeing this as a one-way bet. since then, these companies have gained 539% so far. day, ande first sixfold increase after that. chad a national nuclear power is seeking to range 200 billion u.s. dollars. said, nearly equaling the entire gdp of hong kong. this locks up liquidity for the 23 ipos in the pipeline. rishaad: they are averaging over
10:24 pm
500%. stephen: 539%. rishaad: did you say that already? i'm throwing out a lot of numbers. investors see it as a one-way that. rishaad: thank you very much, indeed or id. indeed, looking at what is trending on social media. xiaomi, these reports generating the last couple of days about them buying , microsoft accorded to some reports, and he responded to some of those rumors saying, hey, don't spread rumors, just go to bed.
10:25 pm
will see what happens here but reports have an saying that this acquisition could be about $7 billion. we are not sure if it's true. there is a lot of rumors spreading around social media about the value of blackberry. know $7 saying, i don't billion is enough to show the value of the company. is microsoft a legitimate suitor? xiaomi and blackberry, we will have to see. bond investorry because his firm saying that growth is shorting chinese stocks. germanppened was that bund -- up next, not just yet, so let me start with german good , he didn'tk in april really profit from that although that did happen, he says it was
10:26 pm
while tied but not well executed, so people have been commenting about his next shorting of a lifetime, one person saying that he should spend more time focusing on his bond that has the nothing but lose money since its inception, another person saying the chinese stock route they will continue up until at least october. ok, a lot of predictions out there. xiaomi makes his mark on the world of wearables print we have a look at the sales numbers right after the break. ♪
10:27 pm
10:28 pm
10:29 pm
rishaad: looking at our top stories, the australian dollar taking a dive. shortfall, the highest since records began in 1971. shipment. in coal the greek prime minister alexis tsipras says he is optimistic about it it with creditors after the latest town -- round of talks with creditors. he said it was good and that the atmosphere was constructive.
10:30 pm
they are given a budget measures, pension reform, employment reform. he says an agreement may be struck within days. corruption in fifa. in 2013azer testifying but the transcript only now unsealed. let's have a look at the markets. >> one of the few bright spots across the region. the action is really in the bond markets. headed into the lunch break, we're up for tenths of 1%.
10:31 pm
out of the 225 stocks on this index, roughly 60% are ending the morning session higher. industrials good, leading the way up. then the carmakers here, then consumer services. a fairly mixed picture out there. nikkei 225 -- i just should do that after two did decline, this is where the action is right now. 10-yearred jgb -- the jgb, we were at 94-95. movers we are following in japan, i guess the just of this,
10:32 pm
profit -- with a profit drop for mitsui high-tec, they are planning to lift shareholder returns to 80% of net incomes. that is the target they hope to achieve by march 2018. the trade deficit in australia widening to more than $3 billion. guest: it is the china syndrome. rishaad: the april trade deficit was $3.9 billion, the expectation was to $.1 billion. guest: if you look at iron ore exports, normally you are looking at around
10:33 pm
4-5,000,000,000 dollars. 4-5 alien dollars. billion dollars. australia's story is a very challenging -- >> the japanese and the chinese -- >> that is the much it, because japan buys it all. if they are weak, they are going to pull on that front. rishaad: let's have a look at what is going on internally. unchanged, they were looking at 3/10 of 1% gain. at the moment, department stores flat, very weak.
10:34 pm
the only thing that is consistent is retail, and people are buying -- spending a lot of money on housing. trying to do it up with renovations. that kind of thing. when that growth profile there -- and you were talking about money not coming in from the trade side. rishaad: thank you. story, anytime, anywhere, on our app. the eurozone economy is on track for recovery, saying they will maintain its on buying plan to maintain growth targets. paul gordon census this from frankfurt. reporter: there was a lot of ground to cover in the press conference. the economy, greece, and the
10:35 pm
bund market. the view was that growth was on track, heading in the direction the ecb wants. growth wasn't as large as expected, to to a slowdown outside the euro area. the growth forecast roughly in line with previous forecasts. the economy, reasonably on track. what about clausen the horizon? one of them, greece. -- what are the clouds on the horizon? one of them, greece. they will treat greece according to the rules. however, he said there has to be a strong agreement between greece and its creditors if there is going to be anywhere moving forward from here, the last thing you want is a week agreement which means a few months over a year from now we are right back from where we
10:36 pm
started working at how greece is going to be a -- pay its debt. the third aspect is one that has some market impact and that is market, draghi saying investors have to get used to more volatility. german yields climbed to the highest level in 2015 the message was interpreted as being that the ecb is going to let the volatility rise. there is a copy at to that. it had -- there is a caveat to that. yield is of any rising a matter that the ecb does want to keep a close eye on. rishaad: we are going to check on some other stories, the bank of japan's governor haslam speaking, talking about the effect of global monetary policy , saying he sees for the divergence between policy in the u.s. and europe compared with japan. the central bank maintains a positive attitude just like .eter pan
10:37 pm
>> i trust that many of you are familiar with the story of peter pan, in which it says, the moment you doubt whether you can , you cease forever to be able to do it. is a positiveeed attitude and conviction. rishaad: a bit out of left field, that one. australian officials say the search area for the malaysians airline -- the malaysia airlines flight will not be expanded in less there are new leads. the search in the remote southern indian ocean has costs australia more than $100 million is -- and has been slow down this month by severe weather in the area. alibaba's movie division looking to cash in on the stock boom looking to raise $1.6 billion, they will sell shares in hong
10:38 pm
kong at a 20% discount to the tuesday closing price. alibaba pictures saying it will use proceeds to finance potential acquisitions, shares, the most in two months. show may looking to help oh -- xiami -- -- shall rishaad: second place behind fitbit? guest: if you look at last was second after apple. the last four quarters, they sold more than 60 million devices, so the lower price points and using wearable devices and basically competing if you look at the price points -- rishaad: i was going to say, -- guest: if you compare that to fitbit, they are leveraging the
10:39 pm
brand and the price point strategy. rishaad: now how fast is this wearables market growing and how has apples change the rules with -- how has apple changed the rules with their watch? guest: if you look at projections, the market topping more than $28 billion, expectations that shipments will top 20 billion. apple watch is what is spurring this growth so it will depend on the developers from no one, they need to justify that. it has warranted to consumer use on a daily basis and stuff like that. rishaad: it is almost replicating the smartphone market, because i mean, we could have a price war and a margins get eroded and squeezed, don't they? guest: absolutely. if you look at xiaomi, they are not making money off the devices, it is more about making money -- they are taking the margin hit now versus the competition which made take it later, especially in the fitness
10:40 pm
segment. rishaad: what about fitbit's ipo? guest: numbers show they are still dominant but the concern is smart watches coming into the play, commodified -- the history has been great call but the concerns are about the sales growth in the margins. bosque: xiaomi's quashing rumors that they are now interested in buying blackberry or htc, what sparked all of this? wast: the idea international expansion but again, you have to consider the , so, it is-- as well a good thing-- rishaad: he is try to squash those rumors are a thank you very much, indeed. in other news, what should google do with its enormous pile of cash? well, by twitter.
10:41 pm
europe has in pushing twitter to take more risks. the announces falling tors and hurts its economy after arrivals fell for the fifth consecutive month. they will offer more visa exceptions to certain countries and set up a $100 million fund to promote vietnam's attraction is. tors and accounting for 6% of gdp. -- tourismin accounted for 6% of its gdp. nissan had about 8% -- since then, it has barely done nothing. pneumonia's will help the company achieve the original 10% target their. >> today, we are at 8.4% market share in the u.s. we think we will be at more than
10:42 pm
2017, at the end of 2016 we should be reaching these numbers. i feel good about it because we are aware of a lot of new product and technology introduction and actually our team in the u.s. is very motivated. rishaad: next, if you build it, they will calm. president obama says china could join the trade agreement but he is still facing resistance in congress. ♪
10:43 pm
10:44 pm
>> these of the stories making headlines. chinese rescue teams have begun cutting into the hole of the cruise ship that capsized on monday in the yangtze river. only 14 people survived with 55
10:45 pm
bodies now recovered and around 370 people still missing. -- has overseen the recovery operations, the ship's captain is in custody and questions are being asked about why he did not anchor the ship after forecasts of bad weather. tash has turned himself in for human trafficking -- has turned himself in for human trafficking. have been50 people arrested after dozens of bodies were found an abandoned camps to the malaysian border, the region is struggling to cope with migrants fleeing myanmar and bangladesh. raised its all can no other to the highest level following a sharp increase in activity in sumatra. the new alert means the disaster management agency will season major -- foresees a major eruption in the next three days.
10:46 pm
the volcano has been dormant for four centuries since erupting in 2010. last year.led thousands of residents have been warned to leave the area. china isobama says showing interest in joining the tpp. beijing has inquired about it even though it is not a part of talks. president obama: the fact is 11t we if we have the leading economies in the asia-pacific region who have labor to enforceable standards and enforceable environmental standards, strong ip protections, nondiscrimination against foreign firms that are operating , access to those markets, reduced it to her its, then china is going to have to at least take those international norms into account.
10:47 pm
rishaad: david is with me now. what is obama actually saying here? david: is china really going to join? i think you need to look at the complex of what obama is trying to do. he is touring around the u.s. trying to get trade promotion authority from congress, now that would mean that if the tpp is eventually agreed by all the people who -- all other countries that are actually involved in the negotiations, when the pact goes to congress, congress gets to vote once yes or no, and it doesn't get to say thise don't get to amend bit or this bit which would bog down the process for god only knows how long -- years, decades perhaps. the reason why he is saying that perhaps china might be interested in joining is that he wants to see if china were to join, china would actually have to bring its standards up to the international norms that he is talking about. that would mean probably fewer
10:48 pm
chinaleeing the u.s. for or elsewhere. so he is really trying to reassure some of the democrats on his own side -- in his own party that this is a packed that is not going to mean lost jobs to china from -- because of going ahead with the pact, that is the -- i know ashton carter was there, now he is saying, and this is quite bizarre, that the tpp is as important as an aircraft carrier, please -- strange to see the comparison come up when you look it what the u.s. is trying to do, the u.s. is involved in what they call the rebalancing toward asia, this is their policy -- asia being one the fastest growing markets, will be for decades to come, the u.s. was to be anchored in asia. we have heard about the military switch with a are going to put 60% of their military assets and naval assets in asia but underpinning that is the
10:49 pm
importance of the economic balance, as well, or economic rebalance in the tpp is the absolute keystone centerpiece of that economic rebalance, so that is why ashton carter is saying, if you want to have a superior military, it has to be based on very strong economic growth. rishaad: thank you very much, indeed. food in india, the repercussions extended to the actors that endorse the products. ♪
10:50 pm
10:51 pm
rishaad: you are watching are closeusiness, we to the opening of markets in india. nestle is facing a crisis, its
10:52 pm
noodles contains four lead in the law allows, the revelation has prompted lawsuits and halted sales and demands for more testing, as well. noodles are an important snack in asia, but this is sending a shockwave across india, extended? rosalind: absolutely. here is what has happened. legal claims have been fired, which point out that the presence of lead in noodles found in samples tested india have been seven times higher. aboutevalence of letters 2.5 for the daily government holding a press conference saying that in the samples the lead content was as high as 3.5-4.5 and prompting the delhi government to ban the sale of
10:53 pm
noodles up the next several -- 15 days, and the nestle would have an opportunity to come back and present fresh samples. it is very noticeable here that governments yesterday are independently also testing samples of maggi noodles and say they have not found anything wrong with the samples, they are taking a huge --maggi of theutes about 20% revenue and nestle india, stocks yesterday cracked almost 10%. nestle india saying that it is cooperating with authorities but it will have samples tested in an independent lab and that has not done anything wrong with the samples. the delhi government also saying that there will be ripple effects and that it is calling for samples from all other competitors, as well, to check them and if anything is wrong,
10:54 pm
appropriate action will be taken. rishaad: thanks very much, indeed. let's have a reminder now of what has been making waves in the world of social media, here is even on. yvonne: we have been talking about this potential acquisition of blackberry, the rumors are just spreading on who may be a potential suitor. the president of xiaomi reacting to reports from last week saying, don't spread rumors. nothing is really happening right now. again, these reports have been talking about this potential $7 billion acquisition of blackberry -- they have done quite a bit or restructuring, showing quite a bit of profitability -- profitability, a lot of people talking about what will happen. he is talking about the next short of a lifetime, back in april he was talking about the german blue and, now he is talking about chinese stocks,
10:55 pm
what he said on the tennis capital twitter account yesterday saying, hey, gross is that against -- now happening. up next, the shenzhen index not just yet. he said, talking about the german bunds, he failed to make a profit, that is because he predicted, you know, he did wagering and he didn't go can all short on them at the right time so people talking about this a lot on social media, one person saying, how would you suggest shoring the index -- without options available, can be risky with china qb. another person saying, he is working on the timing this time. the forecast was well-timed and not necessarily well executed. of course, timing is everything. it for thist is thursday, stay tuned, it is asia edge.
10:56 pm
biggeste of the worlds ,eavily owned pr agencies working with multinationals and governments, this is bloomberg, asia edge is next. ♪
10:57 pm
10:58 pm
10:59 pm
11:00 pm
john: this actually is tiddlywinks that we are playing. >> on our menu tonight, the democratic party platter. first, family style. in our new iowa poll we asked republicans, would it be a good idea if george bush advised jeb if he became president?

15 Views

info Stream Only

Uploaded by TV Archive on