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tv   Trending Business  Bloomberg  June 8, 2015 10:00pm-11:01pm EDT

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apple should up the music industry with itunes and now they launched a music streaming service. the biggest retailer of music after leaving ground to spotify and pandora. the european union's frustration with greece is mountain. angela merkel is asking for urgent action. [indiscernible] let us know what you think about today's top stories. follow me on twitter. index stretching the record of declines. china and abroad. steve is here with the details. steve: we need to tell about the deflationary environment in china. the prices of goods that leave the manufacturing floor is in
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deflation territory. a record run for deflation that consumer price level, we are talking about disinflation. the following inflation. 1.2% for cpi. ppi, we can bring this up. prices, five straight months, all of the months this year more than 4% down for producer prices. orre is disinflation deflation and commodity prices and that is weakening. there is overcapacity and weak demand all putting pressure on prices. deflationary pressure. we've not broke above 2% inflation since august of last year. with not been above 3% since november. 3% as the full year's target. this was a bit of an aberration in january.
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down now or up 1.2% in may. it is starting to creep back down towards deflation. it is disinflation right now. you mentioned the possibility of further interest rate cuts. and the disinflation environment, that raises real interest rate campus pressure of the social bring to possibly cut nominal rates. back to you. rishaad: a little bit of that later. ok, markets reaction. shery ahn will know. shery: thank you. we are seeing chinese markets in negative territory. session. composite reversing. gains is up as a report 4%. the shanghai composite has been soaring. since not on that level 2008.
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that decision is due later today after markets closed. reversing the game yesterday down 0.3%. stocks in asia lacking clear direction. the benchmark index between positive and negative territories. if they see positive territory, the first time in seven days. we have seen downward pressure for wall street with a s&p 500 topping down at two months alone. japan, a clear decline or. -- a clear decliner. putting pressure on exporters and down 11%. rate releasednt about it hour ago from 644% in a. a slight improvement. -- released about one hour ago down 6.4%.
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one other the few markets in positive territory. this is sentiment in australia seems to be improving. the latest australian survey showing confidence moved up theificantly last month at highest levels seen since august. financials leading the gain, acknowledging shares. the largest interest-rate -- in the latest interest rate has helped. stories weme of the are following. here is david. david van a just -- david: hsbc and we will kid to see what the -- we will get to see what the banks plan on changing. a little different from others. it is months of speculation and again,out of london for as far as job cuts are concerned.
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we pay attention to details. not how many people and where the cuts will be and how long the entrenchment plan will take, which units will take the hit? equities, trading divisions will see the biggest cuts? a source we spoke with, the lowest return equity among the units. gulliver, underperforming businesses would face three solutions which brings me to my next point. will they move out of london and brenda to hong kong? the bank will be spelling out criteria which it will use to make that decision. rising taxes and tougher regulation in london. on my earlier point, expect updates to sell operations in turkey and brazil. a look here. there we go. down for the year.
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not really a good run. if you bought on friday, clap your hands. a look at the greece. a developing story for some time. that is the understatement. the g-7 summit in germany has concluded. no tangible progress except pressure has been mounting further from the g-7 leaders. a picture there of the u.s. president angela merkel chilling basically. to get a deal done and frustrations are mounting. president obama said the eu have to make tough choices a call a creditors to be more flexible. junckert jean-claude said greece is not doing enough to ensure that can stay in a euro. on wednesday, the prime minister alexis the brits and angela merkel and french president -- and angela merkel and french
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president will meet. there he is, mr. varoufakis answering the question saying a ofsis can be avoided if all the other side of the table took negotiations seriously. yields on 10 year are above 11.3%. i think we are back above 115. finally, a look at korea grabbing things up of pressures hikeed on the back of the rates down. the reasons why issued or has to take great down further. -- to take rates down further. a 10 year chart and you see where they have been brought down and where they lowered the 1.75% if they move, on top of the economic headwinds, the exchange rate moves and weak external demand. falling exports and inflation
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here. also, increasing the concern over the impact of this current mers situation or will be on the tourism sector. right now, this what the economists are seeing two days before the rate decision. even splits. some of those who do not think it will happen this time, the group in a green, think they will move it next time. a quick update on the situation in korea when it comes mers. the governor -- the government has confirmed another mers related death bringing the death total of 27. -- up to seven. potential travel advisories and of course, we will continue to follow this story and bring you updates as get them. back to you.
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have launched most anticipated music streamlining service. will be available after the end of june allowing users to access 30 million songs for shy of $10 a month. other developments in california. zeb: hello and the apple music, the attempt to capture the revenue them streaming music. revenues from downloads of the music industry in apple trying to catch up with spotify and pandora, which have millions and millions of users. start will be to $9.99. 30 million songs in the library available for streaming right now and a host of other features. a way artists can connect with listeners. apple also unveiled a feature called apple music radio,
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24-hour music station dedicated to music and music culture. big business. apple's biggest product to unveil at this conference. other key things that unveiled to the 5000 people there. after the presentation, an update to the operating system, the platform on which on the apple products run. the new system has new features and is considered critical to the overall output architecture. the new system available to users and will update key ,eatures included intelligence what music you will listen to. a time of day.at apple try to respond to what we use individually each and every day of our lives. if you bother the apple watch, complaints the apple watch is slow to respond to certain gestures. it has just been released and is a out where update is raising some eyebrows.
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and anust been released update being released is raising some eyebrows. apple is trying to address that. other developers as well but will talk about it later. rishaad: how the world's most congested subway will have to deal with more football as it hosts the olympics. it is bloomberg.com, check it out. indonesian stocks surging. we are headed to jakarta for the details. next guest said emerging markets are not ready for potential rate hikes in the u.s.. all of that and more women "trending business -- all of that and more win "trending business" returns. ♪
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rishaad: this is "trending business." our next guest is [indiscernible] thanks for coming. let's start with the emerging markets area obama saying at the g7 summit was worried about the strength of the dollar. that strength is hurting the emerging markets and we are seeing it. simon: yes, that is exactly right. any time the fed is in a tightening cycle, is usually bad news for emerging markets. because we are negative on the commodity outlook and a lot are exporters. as we are seeing and the bond market, a lot of dollar financing. as the dollar strengthens and herging markets weaken, asked to the strength strain to the company's of repaying their debt at least a more selloff. selloff. leads to more
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rishaad: with some of them to the dollar, that hurts them, does the? varoufakis simon grose-hodge -- simon grose-hodge: they are getting hit on both sides. in general if you compare the emerging markets to the developed markets, almost everywhere, courtesy of china, a slow the growth rate area in the developing markets, a better growth. those markets have got improving economies. emerging markets had deteriorating economies is within the equity performance will follow that. rishaad: what does that mean in terms of equities eu look at? you are keen on europe. -- of equities eu look at? simon grose-hodge: the europe thing is being dragged down. if you compare it to a few years back and we are not seeing the
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contagion in portugal and spain. economically it is almost irrelevant. we are not worried at this week and the equity markets in europe , we think it is a great opportunity to add exposure. the amount of support from the ecb with quantitative easing. it is a very good scenario in europe. japan is looking great. adding to thatis but domestically, things are looking better. the u.s. is the most expensive of those markets. let's performance as there. even if the u.s., it could nudge higher. rishaad: an eye on china with its rally in about a year. maybe six months. that cannot be sustained clearly. simon grose-hodge: it can't. if you look at what is driving it, and votto liquidity measures
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pumped in and regulatory changes bringing new buyers into the markets. that situation does not seem to be changing. the next share connect coming through and the next regulatory approval fund managers to invest more money. we'll get an inclusion and the indices announced today. very good lot of momentum in that market for sure. asia in particular looks frothy. that moment -- while the momentum is running, they want to push the market higher and for now, we will not fight them. rishaad: we managed to talk about the fed. stories around the world. the u.s. army temporarily shutting down all the unclassified website after it was hacked. a group called the syrian victory.c army claim
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it was after the outbreak of the syrian war and is said to back the regime of president bashar al-assad. dna testing is underway in china to formally identify hundreds of bodies retrieved from a cruiseship that saying one week ago and the yangtze river. around 100 of the 400 victims have been identified so far. eight people are listed as missing. the eastern star capsized during a storm classified as a tornado. an investigation is continuing. south african officials say oscar pistorius will leave jail in august for house arrest. his automatically eligible for parole after serving 10 months for shooting dead his girlfriend in 2013. state prosecutors wanted to the victim pistorius on murder and their appeal against his acquittal on the charges will be
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heard in november. rishaad: up next -- how does spotify ceo respond to apple's music streaming service? we will tell you after this short break. ♪
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rishaad: new music streaming service from apple. and features at apple pay words the key developments at the conference. josh: we are at apple's worldwide developers. three big takeaways are apple wants to be in music in a big way no matter what is going on in the world. you have spotify and pandora. apple music aims to take on a those services and maybe more. they are launching radio stations not that dissimilar from what areas is offering in satellite. they are crating a new service called apple connect which allows artists to share photos and a new songs with the listeners. they introduce a lot new features for ios nine. the most significant one might
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be the ability on the ipad2 been to use two apps side-by-side making get more connective than a link back machine. one thing you may have noticed about apple is that our own of the attack. they launched a new service called apple news which is that the shot at slip aboard and make the comments about privacy and user data aimed at google and facebook. and finally they introduce a new service called apple intelligence, which is very much like a google now. it is about predicting how you would use your device and aims at making your apps more integrated. all in all, definitely a developer's conference. m-bam moment. the closest was the introduce and of the music service. it could be a fierce competitor in that space. rishaad: apple when it comes to
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what is trending on social media. david: looking at what we saw, a lot of the announcement, really making the headlines right now and social media. apple music, right? we know that have itunes. they have been amusing in a big way. in a way that you and me, consumers digested music. it has changed. we went for ripping the songs all cities or cassette tapes -- on cd's or cassette tapes. oldrds, we're not at that but really streaming. you pay fixed amount and get the feed. do i have 30 million songs in my library? it is how you access the library. spotify, veryo of
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interesting what happened. apple was making this announcement of this new music streaming which a lot of people are calling a spotify killer. very simple comment he had which he later deleted. "oh ok." it brings me to the next week. -- tweet. of peoplething a lot are looking at in terms of how it changes the competitive dynamics of the industry. you have pandora and spotify and tidal. title neverlled, existed -- tidal never existed. if jay-z was smart, he would make a move to sell tidal to google. what do you have? zeb: let's look more the upside. even though there might be competitive out there, there was a positive element to this
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developers conference. jennifer is head of the online store at apple. what was significant, it was the first time a woman has been the stage at the developer's conference for apple. we do not think about it but apple making a concerted effort to feature its women executives. a move to show the technology industry is not just about men. the customers responding. that is a reflection of what some people are saying. david: back to you. rishaad: up next, chinese consumer prices and we have analysis on the way. ♪
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rishaad: our top stories. thousands of job cuts. of the potential corporate headquarters in london from hong kong. they will make the announcement later. the second major strategic plan in 2011. hsbc has faced pressures to improve capital and efficiency. apple has launched its new music streaming service as a developer's conference and san francisco. apple music will be available.
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for --s million of songs you can access millions of songs for shy of $10 a month area the life of spotify and pandora and tidal. at a recordation decline. down from 1.5% in april suggesting deflation risk. the ppi producer price numbers are down, falling. as the economic is with us now.
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pressure on the real economy. as you have that degree of deflation, it's pushing up real interest rates. it's going to keep a lid on corporate investment plans. a great exactly environment to jumpstart the economy. stabilizationome among the pmi's, a hand that perhaps real estate prices are past their prime. there is no guarantee. what we are going to get is a
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big update on china's economy. we have retail and sales. that's a really important number to watch, to see how the factories are going. we have already had pretty weak export numbers. we know imports are pretty bad, as well. in the important manufacturing component chain of the world. later in the week, we are going to have some china credit numbers from the china central bank. this is really important. what the credit lending numbers will tell us is if there is demand out there. the central bank has been cutting interest rates and reserve ratios to encourage lending, but we don't know if there is much of a pickup. we will get that detail in the coming days. by all accounts, think there is a sense the pboc might come off the sidelines. what tools will they use? will they have an interest rate cut option? ratioould use the reserve
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to encourage banks to lend a or there might be targeted measures , including getting liquidity into the system. by all accounts, data tomorrow is vital. credit aggregates over the coming days, also key. by the weekend, we will have a better sense as to whether the pboc will indeed come off the sidelines, take more action to stimulate china's economy. that's the read through on these inflation numbers. what about the overall economy? how are people seeing that? is there any improvement? enda: at the margins, there are some signs of stabilization, and perhaps on the pmi side of things. for real estate prices, too, some analysts suggest we have passed the worst. yesterday, i hand of stabilization. all told, the story remains one of a quite tepid outlook for china's economy. there is in that sign of a major take off just yet. rishaad: i guess reaction to all
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of this can be summed up in one word, and that is probably anemic. >> asian stocks right now seem a bit -- kind of lacking clear direction right now, especially after chinese inflation data. it's fueling concern that demand is cooling. the shanghai composite was actually rising much earlier in the morning, but it has reversed some of those gains, currently unchanged. the hang seng is down 6/10 of 1%. when of the reasons chinese equities are fluctuating so much is because we have the msci decision today on whether or not ininclude chinese stocks global benchmarks. australia, rising all morning, up 3/10 of 1%. we saw the latest data showing business confidence seems to be picking up.
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alsoost be, unchanged, but has been trading higher and lower all morning. we have that be ok rate decision coming up thursday. it is worth mentioning that the korean won is gaining, strengthening against the u.s. dollar. that is after weakening yesterday to one of the lowest levels seen since march. look at that rise. we are seeing strengthening at 1119.2. i do want to take you through some of the japanese stocks. of course, the japanese market is currently closed, on a lunch break, but we have the japanese weakness thatthat we saw the past three weeks. it has been gaining for two consecutive sessions, and that
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is having an impact. nissan motors gets more than 80% of sales outside of japan. g-8 research advised selling the shares. down to tenthsn, of 1%. not that much of a slide given that it sales dropped 22% in may. back to you. the british financier nathaniel rothschild has ended the tumultuous four-your venture with an indonesian coal company. he is offloading his stay, taking millions of dollars in losses. correspondent. haslinda amin. a final split. it's left him, i guess, a bit bitter. : if nathaniel rothschild is bitter, it is understandable. his venture went wrong from the very start, mired in controversy
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, financial irregularities. one of theed against most powerful and influential families in all of indonesia. he stepped board. .e tried to disband it he tried to gain majority control. all of that didn't work. he is selling his 17% stake, probably as a last resort. the buyer, asia coal energy. the price, 56 pence a share, a 50% premium to the last close, but a far cry from the price shareholders paid in 2010. back then, it was 10 pounds apiece. rothschild says it's probably not a good outcome for shareholders, but it is the best solution for the short term. this is a man who has had enough. no more cold venture in indonesia. he said it was his first and his last.
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he didn't mince his words when he said, indonesia is ungovernable. you can see why. adventure that started with euphoria has ended badly. at one stage, the two sides took to twitter to throw insults at each other with comments like, a pile of turned. evil genius. dumb schlock. it has been ugly. this is a big blow for rothschild. we can't really disguise that. he remains a great believer in coal. haslinda: that's right. his company and our holdings was founded to do one things, i.e. invest in coal and natural resources. he believes in the coal story. that is when coal was a darling among investors. a lot has changed since then. demand has slumped. china is not growing as fast.
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getting out of coal may not be a bad thing. problems in indonesia are now over. what a nightmare it has been for the men. -- the man. rishaad: thanks very much indeed . let's check on some other stories we are following for you. hsbc may be facing a new scandal. the bank is said to of launch an investigation into the ceo of its italian business. a report in "the guardian" are looking into the ceo's connection to jenna raleigh insurance. authorities have been having a look at their media deals. local media may be involved in one of them. comment. the kearny to the singapore exchange has a new ceo. he will be at the helm in july. he was formally -- formerly the head of asia-pacific global markets at bank of america.
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it's one of the world's most complex and busiest subway systems, and yet as the tokyo metro control center is run by a team of just over 30 people. bloomberg was given exclusive access to its high tech heart in a secret location in the city. david english -- ingles has this behind the scenes look. david: we can't tell you exactly where we are, because that is classified information, but inside this room in a nondescript building in a tokyo neighborhood is the heart in the brain of one of the world's most complex subway systems. this is the man in charge. working as aed station attendant. then i moved on to conductor for five years and became the driver for seven years. then i came to this control center. i've been the chief controller
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for the third year. david: it is a vital transport system for tokyo, a beating metropolis that is home to more than 38 million people. the metro has nine lines, covers 195 planners, runs 2700 cars, and serves 6.8 million people every day. despite being known for their patients, japanese people are some of the world's least tolerant when it comes to delays, which is why trains are , quite aways on time feat considering that during peak hours, there is a train that departs every one minute and 50 seconds in some areas. >> there used to be a professional person writing this train schedule diagram, but now we use special software. they make adjustments time to time based on congestion of each line. the objective is simple, adjusting the pace of each train to minimize delays. at any given time, two people are assigned to one of the nine lines.
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a typical work week consists of 224-hour shifts with a five-hour break in between. in the event of something untoward, it is all hands on deck. >> we have a manual to cope with terrorist attacks and provide emergency drills to staff on a regular basis. there was a big earthquake before the 2011 great east earthquake. tokyo metro has installed seismometers at 34 locations. we also do emergency drills based on different scenarios. david: you are enjoying a ride on the foro metro, spare a second the team in that unremarkable building somewhere in this city. they do a remarkable job. up next, the fallout from south korea's mers outbreak. could it affect the central rates?hought on interest
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we will have that when we return. ♪
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rishaad: german chancellor angela merkel has demanded urgent action from greece to resolve the stomach over its debt. she was speaking at the g7 summit where leaders including barack obama voiced similar concerns over the standoff. hans nichols sends us this. : the g7 concluded in southern germany without tangible progress on greece. several leaders said they were concerned that time was running out, and they tried to impress upon the greeks the urgency of the situation. president barack obama seemed to direct his comments that creditors and the greeks. for the greeks, he wanted them to understand and take the necessary political challenges and steps that need to be done. for the creditors side, he urged flexibility. he said time was running out. that was echoed by merkel who
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will be having a meeting on tsipras. with alexis that could be a possibility to move it forward. on ukraine's side, they said they would increase insurance if there was more violence in eastern ukraine. president obama said he hoped he wouldn't have to do so. of final note on the matter currency. there were reports that president barack obama said that the strong u.s. dollar was "a problem. i did notnt obama: say that, and i make a practice of not commenting on the daily fluctuations of the dollar or any other currency. climate change, leaders pledged to reduce their long-term output of emissions but made no specific short-term pledges, though they did say they were working towards common goals. back to you. zeb: time for a check on stories making headlines around the world. an australian man has been charged with attempted murder
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after dragging a bulldozer into a house while a woman and her two daughters were inside. the three: -- three people escaped.e house the 48 euros suspect is thought to install in a bulldozer from nearby flat before destroying the house. south korean president parking hay is being urged to cancel a planned trip to washington as criticism grows over her government's handling of the mers outbreak. seven people have died from 95 confirmed cases, making korea the second first-affected country after saudi arabia to thousand schools have been closed with students attending being screened for symptoms. hong kong is advising residents to avoid traveling to south korea if possible because of the spread of mers. the city raised its assessment to serious but said it is travel advice rather than a travel alert. rishaad: let's discuss the economic fallout from mers with sam kim.
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give us an idea, some details about the immediate economic implications and how the authorities are looking at this. sam: certainly, there are a lot of foreign tourists canceling their trips to south korea because of fears of mers. hong kong obviously has issued a travel advisory against south korea, and that will definitely affect tourism here. the president is very much worried about this mers crisis weakening domestic consumption. she is trying very hard to boost economic growth, and this mers is totally unexpected. tourism, transportation, shopping, medical facilities are among the sectors that will likely suffer from this mers crisis. rishaad: ok. is the bank of korea rate cut decision -- how does this play out against that, if at all?
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sam: the benchmark rate has been standing at a record low of 1.75% already, but there is pressure because of this mers crisis. like i said, this is weakening consumption, which means it is also weakening demand, and will be sectors that will suffer. to help overcome that, the bank of korea might consider another rate cut in their meeting this thursday. we have to also consider the has been the won rallying against the yen, which is hurting exports. south korea is very reliant on exports. you're watching how the bank of korea will decide thursday. rishaad: what about the public? what are they doing at the moment? what is the general atmosphere on the streets like? how are they reacting to this
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there is a sam: clear sense of panic here. cabdrivers agree with me that traffic feels much lighter than , and about 2000 schools close yesterday out of fear for mers. one mother tells me that she is now -- not taking her child to any hospitals, because she is worried her child might be exposed to mers. this has to do with the fact that the government initially kept silent on the names of the hospitals with mers patients. that made people feel like they should avoid all hospitals altogether. rishaad: thanks for that, sam kim joining us from seoul. for more on this, go to our website and have a look at what is going on there. do check out the latest on mers and how it is affecting south korea. still to come on bloomberg television, this is "trending
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business." ♪
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you are watching "trending business." i am rishaad salaam it. here is david. it's apple front and center, isn't it? david: they talked about a lot of new things. you can expect a lot of comments across various terms of social media when they do come out with something. let's talk about music first. the music streaming business, ,gain, this new bet they have finding new revenue streams. it's their attempt to keep the music business relevant among new competition to itunes. of course, you pay a monthly fee kid i think it's about $10 a month, and you get access to the 24-hour radio,s
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as well. competition waiting in somewhat. let's take a look at this tweet from founder and ceo of spotify. twitter's version of snapchat. that was his comment which was later deleted. commenting, if it's , i will change from spotify, but that's the only way. there are a lot of ways you can get music, youtube, for example. other.s the no sense in going down with a sinking ship, really. also comes with a 24-hour radio in response to pandora. that being said, some comments on what the developers conference was all about.
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as usual the apple keynote was a geek-fest, yet somehow managed to be 35 trillion times cooler launch. tidal basically, a host of upgrades where the iwatch can be used, how it can be used. there is a built-in capability on this watch using apple pay. just one comment i want to take note of. apple watch owners will be able passesfor london transit with apple pay. g.at is a hashtah that is what has been trending. expect more threat the course of this day. back to you. , it'sd: coming up next the tuesday edition of "asia edge." is thest on today show
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head of em ea. he will be joining us a bit later on. we will also wrap up the day's stories thus far. ♪
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mark: i mark halperin. john: and i'm john heilemann. i hope you book your hostels in advance. ♪ him him happy national veterans day, mark. in our lineup tonight, the supreme court defying, but first, german dining. as the bare naked ladies might say, "what a week," until jeb bush announces he is running for president. friday and saturday, he is in capital of the stone hit, and according to wikipedia, a major

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