tv First Up With Angie Lau Bloomberg July 23, 2015 7:00pm-7:31pm EDT
let's check in on the markets in asia this morning. new zealand currently unchanged after the central bank cut interest rates for the second time in six weeks. we also have trade data showing the trade balance fell in the red. at $.66.ealand dollar we are counting down to the opens in australia, japan, and south korea. we saw japan futures pointing to a lower open. at ag the day yesterday gain of half a percent. at 123.91.trading in the u.s., amazon shares trading after a surprise profit. spencer has been tracking this from san francisco.
what helped it post such a profit? is amazon's thing cloud computing division, web services. revenue grew 80%. they're operating income was up fourfold. it is also becoming more profitable. the company was able to keep spending in control. particularly the marketing and fulfillment expenses. they were able to curb spending while growing revenue. that is what made them profitable. shery: we are seeing amazon surpassing walmart when it comes to market value. what does this tell you about the future of shopping? >> walmart has far bigger revenues than amazon. it is the biggest retailer by revenue. but it means investors expect that to shift.
more shopping will be done online, which amazon is in the lead. has the market dominance on. done inpping will be stores, which is what walmart specializes in. shery: you mentioned the cloud computing business. amazon web services. that has investors excited. what do investors have to say about the results? >> they minimized the price war. there were some price wars between amazon, google, microsoft, competitors in the cloud. more important than the prices are features and services. they are adding features and services to the cloud division and making it more efficient. to monitorontinue price and keep prices competitive. but that is not the main thing driving the success. a lot of the successes from innovation. shery: spencer soper in san francisco.
it is not just amazon. results have been coming in fast. but take a look with su keenan. >> we are at the peak of earnings. you are not kidding when you say they are coming in fast. as you saw, a lot of positive numbers. i will talk about starbucks, beating's, visa, all estimates. and starbucks, a huge jump in shares. sees a european deal possible by october. that pushed stock almost 8% higher. it expects to complete a discussion of potential deals to ofuire vc europe by the end october. that story will carry through in the friday session. surprise, another beating estimates.
it is talking about third quarter profitability, 22% after sales gains in u.s. its projections for profitability include china. store sales in china and asia jumped from 11% in 13 months. it has 1700 locations in china and is expanding into the grocery store business as well. turning to mcdonald's, the new ceo is talking about a return to growth. they did post a big sales decline. u.s.,re struggling in the where same-store sales were down 2%. they certainly expect to see growth ahead as they implement some of the strategies they have brought in, focusing on the burger. they saw sales growth in the third quarter led by international sales and a recovery in china. talkingasterbrook
positively about what is ahead. but it is a rough ride. su keenan in new york with the latest results out of the u.s. the imf has issued a warning to japan, saying the debt could surge three times the gdp by 2030 if the government does not lower the budget and bring spending under control. the fund says current debt levels are unsustainable and the boj should be ready to provide guidance to the markets if needed. it said inflation is unlikely to reach the 2% target in the medium-term. turmoil in china's stock market has turned to a blessing for india. international investors have pooled $3 trillion out of mainland chinese equities since june 12. they have put more than 700 millions into the mumbai markets, sparking gains over the
past month. investors have been worrying about the effectiveness of reforms, but the imf predicts india's growth will surpass china this year. the new york stock exchange and nasdaq have agreed to back up each other during future glitches. the rivals will calculate closing stock prices for each if they cannot compile the data themselves during an outage. an outage earlier this month pushed the safeguarding of the $25 trillion u.s. market into the spotlight. the plan still needs sec approval. >> we compete with them on many fronts. but this is a place where we wanted to cooperate because our customers wanted us to. the financial system has to know the closing price even though we have great backups in our own facilities.
boyle is back in a bear market as investors dumped commodities. david is here with other moves across the commodities space. what is going on with oil? david: good morning. every commodity has its story. , the latest deal is iran. it has been a bad week for commodities. oil is in the next. -- mix. it was monday following the nuclear accord that the minister of iran's of the focus will be on regaining market share. brent crude is down 3%. that came on top of a deal with the iaea data from the u.s. firing on all cylinders at a 40 year high.
stockpiles in the u.s. were continuing to pile up. the glut is expected to remain high. ,e are at 464 million barrels about 100 million more than the five-year average. shery: it is not just oil? david: not just oil. take a look at coffee. it is the worst performer across commodities. that is down to other things. early in the year, we had a problem with the weather sending prices back up. numbers are down for premium coffee like arabica. currencyis down to the of the producer countries. the brazilian currency, other things as well.
a bunch of macro problems that make bankers bang their heads against the wall. but we are just showing our viewers where we are right now. over the past four years, they have substantially come down, allowing a lot of the farmers and exporters to drop prices. costs are in local currency but selling in u.s. dollars, you are a little protector that way. you are down 50%. this is the rio dollar cross. they are offering a lot more discounts. shery: you're talking about oil, coffee, anything else where mentioning? david: we should mention gold. everyone is interested in gold. people are shorting. shorts are at record highs. morgan stanley is saying worst-case scenario, $800 an
ounce. $1050.se is you have it below a thousand if that happened? $800, about 35% from where we are. copper is more worrying. you have stockpiles 90% of. you have requests of withdrawals from warehouses. they have come down substantially to the lowest since 2013. stockpiles are increasing, but this is a forward indicator of global growth. shery: it is a little worrying. david, thank you for that wrap up on commodities. you will have more on oil when we come back when we ask a market strategist where the best opportunities are to beat the crunch. ♪
shery: checking stories making headlines, secretary of state john kerry has suspended the nuclear accord with iran, saying it is fantasy to think the u.s. could have held out for that are deal. addressing the foreign relations committee, he said it would not bring iran back to the negotiation table. it would probably accelerate its nuclear program. is betweence we face an agreement that would ensure the iranian nuclear program is limited, rigorously scrutinized, and peaceful or no deal at all. that is the choice. sepp blatter
attending a draw for the 2018 world cup, his first appearance since the arrest of several top executives left him unable to leave switzerland. he has not been indicted, but the investigation into corruption prompted him to announce his resignation as president four days after being reelected. discovered ahas planet most similar yet to earth about 400 light-years away and is orbiting a star remarkably like the sun. it takes 385 days to travel around the star and is about the same distance away as we are from ours. that means the condition for water or life. it was spotted by a space telescope that has spotted about 5000 planets beyond our solar system. let's turn back to the markets. u.s. stocks fell because of a disappointing corporate result.
the s&p 500 fell .6%. caterpillar tumbling to a four-year low after cutting its sales forecast by $1 billion. shares down 3.6%. it was a selloff for metals overnight. the commodity index dropped to a 13 year low. goldman expects demand for copper to grow at the slowest in two decades. oil also fell overnight in the markets. it is currently slightly off .5%. let's bring in evan lucas, market strategist at ig in melbourne. let me get started with oil. back in a bear market. do you see further downward pressure with the iran nuclear deal a little more clear? what should we look out for? >> good morning. the bear market is likely to
sustain itself further. you do not look what is going on at the macro level. iran is an added pressure. at recordhe saudis production also a factor. but there is also a disconnect. the expectations and data demand expectations from china after not being met on both ends. there has been a lot on the equity side of write-downs on assets. there is a huge amount of supply about to come online. particularly in asia. australia as well. russia is looking at ramping up supply as well. there is a real increase in supply. you can see it sustained downward pressure. atther or not we can see wti 70 dollars u.s. looks unlikely.
demand is not there at the current levels we were expecting. but it is not only oil, is it? it is all commodities across the board. do you see any discernible trends investing in australia? >> that is the interesting question. it is not just one commodity or a group. normally, you can point to metals or oil and separate everything. it is sustained pressure across everything. even agribusiness. it means in australia, you start asking questions. we concentrate on iron ore. that brings in steel. copper is an interesting one.
it is a clear understanding of the health of the structure, growth, actual movement. all of that shows you there is downward pressure. that puts australia and nations in asia in commodities under interesting pressure. it would suggest we are likely to see some asian nations underperforming. the rest of the world has a disconnect between china-u.s. growth coming under pressure with a fed liftoff. china seen pressure around its own markets. all of that is something we watch very closely. there is a downward pressure, unfortunately, for at least another six months. shery: all eyes seem to be shifting towards the fat. we had -- fed.
we had stopped burning at record highs but are down for a third consecutive day. what is your key take away from the earning results? what should we be watching out for next week? if you look at it as a whole, on the eps line, they are roughly around three quarters. that is fairly standard for a u.s. bank. a lot of people had pessimistic views into u.s. earnings. one iseresting caterpillar. that is something we in australia and most of asia watched closely. they have a very good view on commodities. it is clearly saying that mestic numbers look quite nice but the rest of the world looks concerning from their perspective. i like that you are seeing good
growth in google. new phones are growing. seeing mrs..s -- misses. something like apple is interesting. we have notilemma seen in a little while and puts a little bit more volatility in asia. is all the, that time we have, but thank you for talking to us. alibaba fighting claims it sells fake gucci products in online markets. details next. ♪
shery: alibaba in court in new york, fighting claims that it facilitates the sale of fake goods. patricia joins us from the courts. this has been going on for some time. tell us about the history. >> it turns out that gucci filed a lawsuit last year. then they withdrew it last year. suitrefile a brand-new
with exact claims, similar allegations, in may. they had a first appearance before the judge today, who was curious about what they were up to. the plaintiff filed an amended lawsuit. what is new? >> k added 50 new merchants. alibabaically said created an ecosystem for online merchants to sell fake handbags and a luxury good items that is really harming labels like yves lauren and burberry. one of the defendants is burber etti. you can see they try to copy the name. luxury goods makers are saying it is hurting their quality, name, and reputation by having
these for sale on alibaba. shery: what do you expect to happen now? order todge allowed an freeze assets the plaintiffs can trade in the u.s. and allow them to send e-mails to online merchants. because they have no way of knowing who they are or where they are. the only thing they can do is alert them there is a lawsuit by sending them an e-mail. that is not usually allowed, but the judge allowed it. the kate has -- case has another appearance in september. shery: it is not the first time alibaba faces these charges. it has worked with 40 brands last year, including nike and adidas to address these problems. will these be considered in the court decision? >> i guess what has happened is gucci is not satisfied. kering is not satisfied.
they will take a hard-line approach and go after the merchants on alibaba. they are not satisfied with the steps alibaba has taken to curb merchants selling the fakes and counterfeits on the website. shery: patricia, that is all the time we have. , staying optimistic. mcdonald's says appetite will return and china can help. details when we come back. ♪
emily: it has changed the way we watch video. predefined going viral. challenged government, and launched the career of justin bieber. youtube has more than one billion users uploading 300 hours of video every minute. it all started a decade ago with a trip to the zoo. one of the founders says he is not quite done changing the way we are entertained. on studio