tv Trending Business Bloomberg June 16, 2015 10:00pm-11:01pm EDT
beijing says it's the only way they will get a say in choosing leadership. donald trump confirms he will run for the presidential nomination. announcement. you can let us know what you think of today's top stories. a closer look at what's happening in the markets. >> good morning. asia-pacific, stocks rising, first time this week, speculation the federal reserve will signal a slow pace of monetary tightening. what's happening, a mixed performance, not a broad-based gain.
we did have a selloff in hong kong and shanghai. the fears of a bubble for chinese equity. towards apushing downward bias. shanghai trading lower. the philippines online now. that index trading lower. jakarta, has just started trading, up by 6/10 of 1%. the analyst are warning on the emerging markets forex risks. say the currency is the most exposed to volatility here. andissue of capital inflows outflows with the indonesian currency with this fed meeting. singapore and malaysia, trading higher.er. another currency you need to be watching out for.
let's look at the movers in hong kong. of communications continuing to lead on the upside, 2% gain. lenovo moving. china mobile up 1%. look at china overseas. china resources power has been a big mover to the downside for the past two days. let's check in on tokyo. the indexes lower. the bank of japan governor backtracked on his comments last week. tokyo electric is down nearly 3%. watch that. nickel extending losses.
oil around $60 a barrel. on goldkeep a close eye as greece tries to sort it situation out. that's having it impact on the japanese currency today. rishaad: japanese stocks gaining. theowing list of evidence external environment remains challenging. turnaround taking place in tokyo. back to the data. let's start with imports. imports andlue of as sports. -- imports and exports. drop, and it has fallen consistently for a year and a half now. currency dishes the import demand to the left. the trade deficit in the middle. it is three times the figure
back in april. in dollar terms, a deficit of 1.7%. -- 1.7 billion u.s. dollars. let's put this into context and the longer term trend. trade accounts are looking at a five-year chart of the trade accounts consistently showing a deficit for four years now. 2011, japan isto mostly importing its energy needs following the shutdown of nuclear plants in the aftermath. let's take a look at exports. for may, 2.4%,s still some growth, but barely. the silver lining is nine straight months of export growth. capital exports have picked up slightly across japan. it was previously outside japan
because of stronger currency, but now being brought back in. this is a 10 year chart of export growth. growth ofrage export 5%, is that enough for japan to export its way into a full recovery? to put this in the context, it's -- 10 year chart. the again were stronger. it has been weakening. we are now back above zero. any percent drop in expert improvements that we saw last year. rishaad: a more detailed look later in the show. tell us what you think. let's take a look at some other stories. china, largest brokerage is jumping in on the country's
historic stock rally. it's seeking $4.8 billion to launch china's biggest the message ipo and five years. the brokerage plans to use the money to replenish capital and boost its market share as well as invest in research. the shanghai composite doubled in the past eight months. chineseg data shows brokerages have sold more than $7 billion with a stock this year, and set to surpass the record of 9.9 billion dollars raise last year. it is china's biggest brokerage by revenue. the head of air asia says a report that question the company's accounting has created massive hysteria and the share price will recover from the
current plunge. ,hares extending their losses near a five-year low, down more than 5% this morning. that is after a report raising concerns of after the carriers accounting, as well as cash flow. tony fernandes says his company has plenty of cash and other assets, including 128 aircraft should it need to raise money. he says the fundamentals of the company are strong and that air asia will not take any short-term action because of the report. air asia is planning to sell convertible bonds for $100 billion to $150 million each for its indonesia and philippines unit. arounda plans to be paid $267 million from the bond issue. the ceo of australia's largest supermarket chain has announced
his sudden retirement does the company struggles with competition. grant o'brien is retiring after less than four years of the helm. woolworth's net profit will fall to $1.6 billion, that's from $1.9 billion last year. this is after they had some discounts on products as well as an investing and to win back customers. the supermarket has also tried and failed to overtake its main rival. o'brien began working at will worsen his 20's as a shelf stacker and after climbing to the top post he had pledged to restore profit growth. their electronics chain and has attempted to enter the hardware market, but o'brien said in a statement that the recent performance has been disappointing for the supermarket and below expectations, and he believes it is in the best interest of the company to have new leadership to take over. back to you. lawmakers in hong kong
will start debating a plan to to givechief executive hong kong citizens a vote from a list of candidates approved by beijing. what's going on? you can hear them behind me. we are hearing loudspeakers from both sides. we have seen things escalate in the last two hours. each aside is using their own rhetoric here. some people saying from the pro-government side, 2017, we have to get this reform electoral package done. de saysigovernment si it's a no go. we have seen tensions mounting leading up to this debate one hour away.
china has backed a deal where candidates for the chief executive will be vetted by a committee of local elite or scrap the chance for hong kong to have its popular elections. the vote is widely expected to be voted down. we talked about the city and the deep divide. --al pause showed that 42% local polls show that 42% have opposes bill. it's a close call indeed. they are talking about what is next. they said they can't forgo this chance right now. in the last couple of days, the tension mounting. an anti-graftt agency investigating claims that lawmakers are being bribed for supporting this reform package. we've also had 10 people arrested in the last couple of days in connection to making explosives allegedly days before
this debate. 11:00,bate going on at just one hour away. happens there,t but a vote is not expected today, but it could happen in the next crucial days or tomorrow and friday. rishaad: very quickly, if this does not go through today, what happens next? what is the next logical step? people in china say that if this proposal is rejected, then this would be very worrying for the future of hong kong. they say this is going to hurt the businesses, talking about how this could be to markets falling. we have seen a polarization of the city going further and further as we get closer to this vote. again, if this proposal does not go through, we will have to go back to the old way of how our
chief executive is elected, which is by a local committee, not by a local committee and voted by the people. rishaad: many thanks for joining us with those details. she is reporting where the protests are taking place. the real reason why chinese commuters are hailing the new version of the cab. that is on bloomberg.com. budget reformtest maybe, as a disappointment. , the bullish break outlook for oil. stay tuned. you're watching trending business. ♪
turns foreign ministry says land reclamation work in the south sea will be finished. built onctures will be the islands. the united states and beijing -- united states claims beijing have reclaimed -- russia will deploy more than 40 new in current or continental ballistic missiles this year, a move condemned by nato. to move heavyns weapons, including takes, into poland in the baltic states. tensions between russia and the west are at their highest since the cold war over the conflict in eastern ukraine and moscow's annexation of crimea. donald trump has to clear that he's replanning -- running for
the 2016 nomination. he issued a financial disclosure statement before the announcement, claiming net worth of $8.7 billion. in a 45 minute speech, he promised that he would bring back american jobs and their money. >> our country is in serious trouble. we don't have victories anymore. we used to, but we don't have them. when was the last time anybody saw us beating china in a trade deal? they kill us. i've each and all the time. beat china all the time. rishaad: it's unlikely greece will make good on its promise. thanks fornider joining us. what's on the mind of the
market? >> if you look at what happened on the equity side, under pressure globally, that's all concern about brees. that's one key factor. an accident could happen. what if we don't get a deal in june? some of the key payments will come in the second half of july. an accident is a big risks active. the risks of an accident has increased. what about the federal reserve high? we're counting down to the days about when it's likely to happen. >> if you look at market isectation, so september most likely for the takeoff on
rates. get isre going to probably it will come down and things will be shifting to the bearish side. we will probably get good numbers in terms of employment figures, so there are some things in the upcoming statement. rishaad: brent is trading at $50. you believe it will go north of $70. if you look at north of $70, that's a longer-term story. it's not reflecting the fact the market has yet to adjust. we still have excess supply in the range of one million barrels. that needs to be worked off. there is not much upside from here. mind, we're going to have higher costs that will eat
into profits. the third quarter, demand picks up seasonally, you will not see it go up. over the long term, a reduction in u.s. production. i think that will be price supported. that is more 2016 story. the supply is going to continue at the pump. rishaad: was keeping a lid on prices at this point? the upside, opec's production is way above the quarter, and that remains in place. the other factor is we have a lot of improvement in demand at the beginning of the year, and that could be some frontloading in terms of buying, so they could disappear as we go into the later part. prices have recovered a bit, so i would not be surprised at demand acceleration in 2015 starts to disappear.
the fourth quarter is always a challenging quarter for oil. rishaad: you are shifting your position to neutral from bearish, why? >> the fed is going to hike. , but whatexpectations expectation start to shift up, i do expect another outflow. financial investors are trend following. it's like a self reinforcing spiral. that will pressurize prices. you will see asian consumers come in, asian man, to clear the market, but it will not happen at current prices. that will be at lower levels, at least 10%. case where this a the dollar could gain ground across asian countries question ?ark > >> given there is no
inflationary pressure, central banks should take the opportunity to ease conditions and look at the export numbers. the pm eyes are also challenging. the pmis are also challenging. rishaad: many thanks for joining us. currency,e view on commodity, and forex. we look at the excitement china is generating online. ♪
rishaad: this is trending business. welcome back. we look at what's trending and social media. presidential candidacy announcement by donald trump. he dissented this golden escalator to make that announcement. he was talking about how is worth billions and billions of dollars. has been the 90 states beaten by isis and china.
how the united states has been beaten by isis and china. a lot of entertaining talk on social media. some people making fun of that candidacy. boy, ohon saying, oh boy, this is great. according to him, another person saying that if he wins the presidential election, i'm leaving the united states. a lot of negative comments. just don't vote for him. don't leave. i'm watching star wars in china. we literally are watching star wars in china. >> the first six movies will be shown for the first time. at a comment here.
i'm going to take a day off for star wars in china. >> he is lucky he can do that. >> we can do that as well. i'm not sure i am going to see star wars though. >> no light sabers allowed. that's what is trending on social media. back to you. rishaad: coming up next, looking to raise aliens. china's biggest ipo and half a decade. ♪
hong kong's city center yesterday. it will be voted on later this week. the greek prime minister lashed out at his nations creditors. of criminalhe imf responsibility for his countries predicament. he continues to push for austerity measures. the bailout expires in two weeks. are seeing a mixed performance across asia-pacific. shares are barely above the trend line. let's take a look at this. this shows us which subsets in the region are doing well. financials up. utilities,alth care, barely holding onto again. technology up. let's dig in to give you a snapshot.
the bank making up the largest part of the grouping. malaysian banks rising as well. sydney share market moving to the upside. commonwealth bank in there as well. , where closely watching the session. let's take a look at the asia-pacific map. this turns you what's happening with markets across the region. one clear chance or china saw a big selloff yesterday. kong,of a rebound in hong but the shanghai composite down 1%. it started the day higher. it looks like we are building on these declines. the concerns that investors have with respect to the chinese market underlying economic growth slowing, a huge stockmarket rally, 150% over the past year, but built on the back
of novice investors who borrowed money with margin financing. the regulator on friday unveiled new restrictions to taper this massive run in the market and the fear or concern among investors. that's why you see at that the selling. that's what caused the big drop yesterday. these are the stocks moving right now in shanghai. elsewhere, teasing gains in jakarta, 1% move there. singapore is up. .e conti the ceo of will worth retiring. olworthceo of will retiring. rishaad: this adds another piece to the puzzle. the global is not as strong as
optimist may think. -- the global economy is not as strong as optimist may think. >> when you look at these export exports to the u.s. and china, to biggest trading partners, they were flat or down. exports to china from japan were basically flat, up 1.1% best case. shipments in the u.s. were down 7%. levels.ker the other reason it's worth looking at this and will give you an indication of how things are for domestic japan, may is the second month of the first fiscal quarter of japan. gdp data quarter shows a massive buildup of inventory.
if they can't get rid of that inventory, he gets carried over us cost. that's another thing to watch. imports are down, exports are moving along nicely. remains ineficit 1.7cit about 1.7% -- billion u.s. dollars. it is reflective of the weakness. rishaad: if you brought in this a bit, japan was the bright spot in asia. >> bright in the sense that it still growing as far as exports. from singapore early this morning after an hour and a half after japan, they were expecting an improvement there, but we saw a drop. in a added to its collapse sports straight indonesia is down. you look at this graphic and you think, who is not buying what.
a lot of these exporters -- keep in mind, these countries export different things, commodities, intermediate goods, finished goods, so on and so forth. there must be some other weakness that people are talking about, right? ahead of the fed's decision later today, this also reflects weakness across developed markets on demand. an indication of a global economy. in the nieces president is trying to test his popularity even further. president iss trying to test his popularity even further. we are joined from jakarta. why is he doing this? good morning. good to see you.
the indonesian government is taking all measures to create more room in the state budget. they propose to remove electricity subsidies for households that use between 450 watts to 900 watts. the money will be shifted directly to the poor. budget, $5.5tate billion allocated for subsidies. government,evious that it in race for heavier usage households and industrial companies. indonesia would have to brace for another price hike in a slowing economy. think this move will only make the government look bad as it looks for more money without any improvement in the spending quality. this recent proposal follows micro measures in the recent weeks. the president made a drastic
this year which freed up billions in the budget. indonesia has witnessed it slows growth pace in more than five years. government spending so far struggles to revive it. they are looking for structural reforms. back to you. rishaad: thanks. checking in on other stories. the fastestists are growing users on air b&b. it has seen more than fivefold growth from china. it should be is that to the nation's growing middle class. >> many of them have not left the country before. china is number one in terms of international tourism expenditure. in 2013.00 billion
they estimated it would double again over five years. compare that to the next two highs, the united states and germany, tied at $80 billion. the future of international travel is the chinese tourist. rishaad: a rush in language russian language website to challenge ali baba. them -- amongnk the most popular 10 websites. fox has named james murdoch as its new ceo. rupert murdoch will become executive cochairman of the company. the changes to effect from the first of july. another big chinese brokerage rushing to the market with the biggest a mystic ipo in five
years. nearlye seeking to raise $5 billion. is everyone jumping on? >> they have been doing this for quiet some time. the government lifted the moratorium, and there is been a rush this year. raising $4.8 billion. the fourth major listing of more than $1 billion in the last year. previousok at the three years before that, we did not have a billion-dollar listing. with this rising market, there has been a rush. would be the largest domestic ipo in china since 2010. they gave all the regular reasons, replenishing capital,
but they need to continue to fund the margin lending operations which are been booming. fivefold been a increase in margin lending, which is help to feel the doubling of the shanghai composite index of the last eight months. concern, butng also great opportunity for brokerages like guotai, and that's another reason why they are trying to raise $4.8 billion. is the largest by revenue. market: you've seen the rally cry to bit. the question is about timing. coming?iggest brokerage >> the consensus from the analyst we spoken to is this is a bubble, yes.
when will it bursts, it's not if, but when. back seen the market fall about 5.5%. there is a lot of locked up liquidity because of the ipo pipeline. the valuations are price of little too high. northeast security saying brokerages need the money after spending to pass in the bull market. the market is nearing peak. the chief china strategist says everyone is busy looking for the greater fool. in a blunt that china is bubble and a crash is coming. rishaad: thanks for that. that's a story on the biggest ipo in china. up next, shares continue to die. the ceo reassures investors that it is a case of mass hysteria. we will hear more when we return. ♪
rishaad: welcome back. the stories making headlines. an egyptian court has confirmed that the former president will be executed. he was sentenced to death over a prison break in the 2011 uprising. he was overthrown back in 2013. no date has been set for his execution. asia, south korea has begun reopening schools despite more deaths from the mers outbreak. 19 people have died, but the outbreak is slowing. critics continue to question the control measures with more than 150 people affected. casino mogul has
died. than half of more the hotel rooms. he was known for buying and ,elling stakes and airlines auto companies, and hollywood studios. sued daimlerchrysler in 2000 claims he had been duped over a merger with the german carmaker. air asia extended its losses today. the plunge follows a report which raise concerns about the carriers accounting profit generation in cash flows. tony fernandes said the report created masses. and that he's confident the shares will recover. he says the company's strong fundamentals will be revealed in the upcoming results. more, what else does the
report really say? the report didn't touch a bit on the shareholder structure of air asia. details are not really available. only open tos subscribe customers. it will be made public on june 24. we will have more details when it's made public. whered: is this a case air asia needs funds? what options does it have for capital? optionssia has a few that it can use. it recently announced that they will be raising funds or its indonesia-philippines unit. has told his previously bet they're planning to do an ipo
for the indonesian unit this year, followed by the philippine unit. aircraft onve 128 their fleet list that they can use to do a leaseback. they do have a few options that they do need the funds. what are the challenges the airline faces? they want to be expanding across the region. overcapacity is a very big issue for airlines, especially in southeast asia. demand has not followed capacity. we are still seeing a bit of overcapacity. tot has caused air asia divert some of the aircraft they were supposed to be getting this year and in the next few years. air asia also faces challenges because they malaysia demand is declining. buy is bad because they
the longest streak of decline since 2009. what is going on? trade deficit into a three-month low. it outlook has exports declining. a 21% decline. number may be overstating the decline due to a currency fluctuation in rupee terms. fluctuation in global currency as well as global crude prices may have had an impact as far as those headline figures go. may were 41%n lower than last year. india's coming after narrowedccount deficit
to a one-year low. say ansts at berkeley improvement in trade short will help keep the current gap in check in the april-june quarter. volume has been steadily slowing. very mixed data on the macro economy. rishaad: many thanks for that. a reminder of what's trending today. >> china finally becoming one with the force as shanghai international film festival showing all six of these star wars movies this week. this is the first time that china is showing the movies in cinemas. for decades after the franchise became a global hit. the entiree showing series.
there's been a lot of excitement on social media about these movies being shown in the cinema. one blogger saying, china screen star wars in cinema for the first time for decades too late. another person saying, i'm going to take a day off for this star wars. very excited, this person. another posting on twitter this picture saying, no light sabers allowed on the beijing metro. there's been a lot of excitement on social media. a lot of people saying, thank you, george lucas, for bringing these films to china. another story that we are tracking today is donald trump for president in 2016. this is been a colorful announcement. you can see him at the top of that golden escalator at the trump tower office in manhattan.
he is announcing his and deceit. saying, isis, china, mexico, all beating the united states. us, bute is beating said he can beat china all the time. he also discloses financials. his announcement was called interesting, entertaining, curious event. , oh,erson saying, oh, boy boy, i was afraid gop primaries were going to be dull. well, i guess he think that's going to be pretty entertaining to see the tv reality star and real estate mogul run for president. another person saying, you can justfun of donald trump, like you did with ronald reagan, but reagan turned up to be very popular with the masses and also pretty smart to boot. another person saying, he does
not like jobs being shipped to china, but his executive clothing line is made in china, so there was some criticism about his comments on china because he was saying that he just built an apartment for $50 million for chinese people, saying am i supposed to dislike them. i actually like china. a lot of stories trending today, especially donald trump. hard to find some positive comments on social media about his candidacy, but there you go. a lot of people looking forward to that announcement. back to you. rishaad: thanks for that. that is it on trending business. and you will recap the trending stories of the day, including hong kong lawmakers due to start debating the china backed election plan. stay tuned for all the action underway. you are seeing live pictures of those protesters. they have been protesting for a well now.
mark: i'm mark halperin. john: and i'm john hailemann. mr. trump, thanks for your time and thanks for being a huge fan of our show. mr. trump: tremendous show. john: you yourself have the show. you are finally running for president. mr. trump: i have never done this. it has not been that easy. mark: in some areas, you do better than bobby jindal. john: on the show, the monopoly man.