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tv   First Up With Angie Lau  Bloomberg  September 14, 2015 7:00pm-8:01pm EDT

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revolving door politics, australia gets it prime minister in eight years as tony abbott is toppled. crude realities, china's slowdown ways on oil with no sign of a quick end. secrets, welcome to
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first up. i'm angie lau. let's get right to it. australia has woken up to a new prime minister this morning. years,th time in eight former lawyer and investment banker ousted tony happen in a party room crew just a few hours after announcing his challenge and less than two years after abbott won a general election. let's go to sydney. >> he is well known in australia, but the rest of the world might be wondering who is the? >> he is a well known here in quite well-liked as well. he consistently polls above abbott. he is progressive on issues such as climate change and gay marriage. this is despite his background as an investment banker. let's take a look at it is. he's a very wealthy self-made man with a considerable fortune
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and a strong understanding of business. you can imagine how he would have reacted when tony abbott lied prince philip. he's also a former leader of the party. he lost to tony abbott by a single vote in 2009. that was over eternal party disagreements. and has beenitious hanging over tony abbott's head like the sort of damocles for the past six years. popular with the public but a little less so in the party room. >> he did heavily criticized tony have it for his economic management. how is he going to be different?
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when he announced he said the prime minister has not been capable of providing the economic leadership and confidence that business needs. in terms of reform, there is a need to explain and articulate the reasons to the australian public and respect their intelligence. >> australia has to be a nation that is agile and innovative and creative. we cannot be defensive. we have to recognize that the disruption we see driven by , >> inogy and volatility terms of the economy, stand by for a trade organization. almost certain to hockey will be gone. they hope first got this is
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replacement. was pretty incredible, the rest of the world kind of went to sleep on this and woke up with a regime change. this is the fifth prime minister why did this, latest party rinku even happen? it had been brewing for quite some time. in some respects abbott was a bit of an accidental prime minister. he won by one vote and shortly thereafter the governing party simply self-destructed and he had a clear path to the prime minister's office from there. he was well known united prince philip which created public confusion in australia. more recently stood by his embattled anchor through an
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extensive scandal. she ended up going but the damage has been done to his reputation by the. he's very airtight and a communicator. he will have an early test of his leadership. it seems likely the government could lose a solid vote. it's a honeymoon the liberal government. angie: it was still pretty tight. 10 internal votes separating dust separating them from tony thank you very much were going to continue to watch this and see how the markets react when us joy opens the hour. we are also counting down to the opens in japan and korea. turn of events over and australia. let's head over to new zealand.
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new zealand dollar is at 63 u.s. cents. we are of course waiting for that big fed decision later this week. let's get over to japan right now. this is how many k2 25 closed yesterday. down 1.6%. futures in chicago point to a higher open. japan dot makes decisions today. boj makes decisions today. maybe we will see something in october. morning, thes this government plans to tackle 4.6 alien dollars to help prop up the country's equity markets. malaysia is to bolster confidence in its financial markets after international investors took almost $4 billion from equity this year.
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that's more than double the amount for all of 2013. inflation showed a deepening price decline. consumer and wholesale prices both eased in august. r.b.i. governor has resisted pressure from the finance ministry to cut rates. u.s. stocks halted their today climb. investors remain wary ahead of the fed's decision. let's crossover right now to new york. su keenan has been tracking the action on wall street. they're calling it a tug-of-war in the market. are still waiting to see what the fed is going to do. nothing else really matters. he had this is one to be a fun week. a 20% chance down from
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48% for the chinese currency. that will raise rates 59%. we had a relatively late volatile market. so roughly a third of a percent. we also jewish holiday here in new york, it's about 25 to 30% below -- normal volume. biggest thing to watch observers intos when the market goes stability right ahead of the meeting on wednesday. , many arguestable cause, but it may be a green light to go ahead and raise rates. again a lot of questions. policymakers -- many on wall street say they have no idea how it will come out areas oil and
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gas down almost 5%. apple shares were in the spotlight up as much as to a third percent. they gave most of that back by the close, but word out there that the iphone 6 s and f plus are selling like hotcakes thinks largely to demand in china area they are willing to pay more than 80 million to settle state and federal allegations that they did not fully disclosed to science how they operated. that was weighing on the stock in today's trade. more on that later. thanks for that. is rebounding. bloomberg news houston is here. estimatereduced its
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for non-opec supply next year so what does that mean for the forecast? >> it's hard to tell but it looks like the general projections are that reduction is going to be flat through 2016 and that may give demand a chance to catch up and rebalance the market. the international energy agency last week predicted non-opec reduction is going to contract by about 500,000 barrels. and that the u.s. energy information administration thinks it's going to be about flat. their predictions, i would not say they're all over the place that they are all basically lining up to say it's going to be flat. that gives demand a chance to overtake supply. that often but happens.
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opec's report said there are hass that u.s. production started to respond to reduce investment and activity area topically is that actually the eiag to mark >> said that production in august and united dates was less than it was in july. that's a sign that it is beginning to happen. the 2015 production overall will be higher than 2014, but they think it will shrink in 2016. at least you are starting to see some leveling off. the other thing people are looking at is the oil recount which has fallen in the last two weeks and is down about 652. last year that was over 1600. that's a big drop in the rate count. those things will eventually have some effect on production know, outputs we is just one side. >>t about demand is to mark the forecasts are that it is
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going to keep increasing by a little over a million barrels a day. this worldwide. if those are accurate and 26 teen you will see the world using about 95 million barrels a and ach is about three half million more than it was three years ago. that's a nice steady increase, but the hard part was making predictions is with this is going to happen and when is it going to overtake? then it will take a little while to get rid of the overhang. you can figure out the timing of when it's going to happen, that would make you a very very smart person. angie: indeed. for now we will depend on newsgathering at bloomberg to help us point the right direction. just ahead, buckle up for a bumpy ride. the rest of the year will remain volatile or stocks memento when
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the fed decides to raise rates. you're watching "first up"
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angie: checking some of the stories making headlines around the world. a key suspect in the bombing has led to turkey. demand directed the attack that killed 20 people. malaysian police have revealed they arrested three people last week. they are suspected of helping the known suspect escape. two men remain in custody in governmentsa meeting in brussels have moved closer to agreements. some eastern country is remain opposed. germany's interior minister says while the deal is in place it is really only a first step. hungary has now completed a 175
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kilometer razor wire fence. there could be more charges to come in the investigation into the global governing bodies. lotu.s. attorney general a -- loretta lynch says she anticipates more charges against he thought. back in may police arrested seven and charge them with crimes including racketeering and money-laundering. back to the markets now. oil slides as concern over china's slowdown races down more than three and a half percent. investors are dumping gold holdings to exchange traded products gold prices hovering near one-month low. the dollar climbs against the yen for a second day. the fed announced they will move this week on rate.
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fell after last week's jump. trading was subdued things to a jewish holiday and market anticipation of the fed decision. sees greater volatility for u.s. stocks but believes that the u.s. will sustain economic expansion. i'm joined now by the senior vice president of pioneer investment management which manages about a quarter of a trillion dollars. he's joining us in singapore today. very good to see you serve. how do you suppose that if the fed makes the decision this week that there could be more volatility? run-up?e volatility the yes. i would agree with that. certainly this is perhaps one of the most anticipated rate hikes in history.
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whether they do or whether they don't, i think is of less importance than what they actually say in the press conference following the decision. >> what would investors be looking for? key is if they sound hawkish if they do hike in some hawkish, that's implying perhaps a further hike in december. i think that would be a signal to the market of risk. we will have a very volatile day on thursday. if however they are relatively dovish. if they indicate that the next hike would be pushed out her has to next year or if they don't nose rates and there'll be hike at all until next year, i think the markets will settle down of the next few days.
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but the markets will then look back towards china and what is going on there. use fromould we take the markets on wall street like trading people keeping steady ahead of the decision? or the do something. is it a smart move to try to figure out your positions right now? >> is certainly not the way we would invest. i don't see where there's anything really to be gained by trying to outfox the fed. what we try and do it is by very high quality companies at all times and frankly many of the companies that we invest in i believe will perform exceptionally well over the coming years. decision will be in the review mirror by friday.
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i think one can invest in most sectors across the markets. there are certainly opportunities in many domestic cyclicals in the u.s.. in certain very broad retailers. certain hard-line goods. there are some great global companies. i think they will do just fine. how are you trying to limit your exposure in china? >> i'm not too concerned. i think one always has to differentiate between the chinese stock market and the chinese economy, they are not the same beast if you like. the chinese economy has clearly sloan. i think that slowdown has more impact on the commodity sectors and on certain industrial sectors with it are globally or u.s. companies.
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invest as the u.s. consumer becomes ever more powerful i think the brands that you and i take for granted every coffees,er a certain all sorts of goods that the chinese consumer wants to buy and frankly will continue to buy despite the slightly slowing economy. angie: you are saying small luxury things. it's been the big luxury items that have been hit by the end t extravagance -- anti-extravagance there. greasing the because they're slowing down we start looking at more affordable luxury spaces? >> absolutely.
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very high-end luxury handbags and things though sort of goods and manufacturers i would tend to avoid. however i think the more affordable items whether it's cosmetics are certain coffee brands. certain restaurant brands. they are powerful global brands which will do very well in china and some of whom have said recently they have not seen any impact from the slowdown. the chinese government is very clear in trying to transition the economy from fixed thestments towards consumer. it is painful for some companies, particularly the materials in the commodities. i think the last decade was really about commodity related buildout and demand on commodities.
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their opportunities there. angie: we're going to leave it there we ran out of time thank you for joining us. up, a record fine over client disclosures.
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angie: let's dip our feet into the murky world of dark pool
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trading platforms. we are about to jump in. >> very popular trading platform since getting the attention of regulators. they claim that it misrepresented some of the aspects of it trading platform which is the biggest. disclosure, we understand that it's about 80 million u.s. dollars that is blitz 15 million to the near attorney general's office and the fcc. to put it together that's a record amount. was 14vious high million. we understand that the settlement may be finalized as early as next month. angie: they're not the first to settle charges like this in seems to be common ground. in january.s
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it seems to be the common denominator across that's a much darker rooms themselves but the lack of disclosure. possibility what the sec pointed to previously in january as abuse -- potential abuse. angie: who's next? david: barclays maybe next. they are in court and in talks for possible settlement. angie: thanks for that. coming up with take a look at u.s. politics the republican party's 2016 presidential nominations. nominations. we are great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about.
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angie: it is 7:30 here in hong kong. we are live that is the observatory. -- victoria harbour. 30 minutes away from the opening trade in australia japan and south korea. on your tv mobile and online you are watching first up. the top stories this hour --tralia is to get its six
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six prime minister and eight years after a party room coup. he deposed tony abbott and now has the task of turning around her government played by poor polling and an economy battered by the slowdown oil has recovered slightly from its fall. concerns about china's slowdown added concerns about the slide. suppliers are producing 110,000 barrels last day than forecast. in -- outedict the that increasing slightly next year despite low prices because of the u.s. shale industry. credit suisse reached a settlement. that theat matters is bank will pay more than $80 million in fines to settle allegations of wrongdoing area did this will be a record amount
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for u.s. regulators. it's reported a deal could be reached by a october. let's begin this half hour with a check of the markets. and --ession for chairs shares in china yesterday. we see a lot of investors waiting on the sidelines ahead of the federal reserve. that seems to be key area in china there was a big selloff. take a look at the numbers. the shanghai composite was down to 6% yesterday. however we close the day higher in hong kong. new zealand getting up early indications today. in they market trading region is at the 10th of 1%. australia will come online shortly and as we will follow through with the war we'll be watching china very closely today given the dramatic shop and -- drop in shares. the fact that investors are
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staying on the sidelines today, they're on wall street you saw the dow jones industrial down by 1%.action of 4/10 of the chinese shares traded in new york look like bigger declines there for the index. that's something to watch as we set up as equity session today in the asia-pacific. the course will be watching the bank of japan. while we keep our eyes on punk on -- hong kong. the hong kong monetary authority injecting 6.59 billion hong kong dollars into the industry. we see continued moves here i we will bethority watching this closely. and the market impact on that and the federal reserve. let's not forget the elephant in the room. many are in the markets are waiting for the results of that meeting in the coming days. angie: you can say that again.
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this year the conference is underway here in hong kong. it brings together thousands of investors as well as global leaders in politics and business. let's go there live. bloomberg's shery ahn is standing by. >> good morning. just as mentioned, one of the be focuses of this week will not only the rate hike but also a republican presidential debate. joining me now is frank lutz, one of the best known american pollsters. think is a much a time. your job is to craft the right message for your clients. what are the key issues and candidates need to get right in order to move forward in this
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election cycle? >> focus more and attributes than i do on issues. what makes this election difference is that a lot of people here but the deficit and incoming inequality and foreign policy, but they really want to know if the candidate understands them and their concerns and fears. this is something we've never seen in american politics before a focus on who the candidates are rather than where they stand according to the polls it looks like donald trump understands what people want to hear. how do you assess his strategy in his approach? i know you're not a fan. >> i don't take sides. he and i have had agreements and disagreements. i actually -- i will show to people who are watching. this is one of the most powerful slogans because it's exactly what the american people are looking for they are angry at they are angry wall street or they are angry at the elite, they feel that their country is not what it used to be and the
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reason trump is doing well is because he appeals to those people who still believe that america can be number one if it had decent leadership. fuelingthat anger is right now. your jobhat comes from is crafting a right message, how results will do you feel about the divisions that were seeing in america as someone who across those messages? i'm always trying to unify. my language and focus is always been the positives rather than negative. it makes it harder for me because selling a positive message is not as he as being negative for divisive. in the candidates at this point don't want that positive message, infected argue that this is the most negative campaign the most. oriented campaign since 1968. it's been 50 years since we've
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been this divided. my hope is that as you get closer to election day which is still 14 months away there will be issues that unite people and will be focused on getting things done. that, is what people want in the end. work together and get it done. >> how do you assess the state of their public and field right now? >> very complicated. only one candidate has dropped, 16 people want to run and trump is clearly in the lead. carson's second-place. fact if you take the three candidates that have never run for office more than half of republicans want one of those candidates. the gop is saying to washington we are fed up. or that up of politicians as usual and we want something different. whether that holds for the primaries i don't know. about this field
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than i have ever known in politics before it's more confusing and chaotic and nobody really knows his can be the nominee. >> you have no idea who will pursue? >> i think trump now has the possibility of being the republican nominee there's a lot that could go wrong with him between now and the convention. but you have to taken seriously. utah state ben carson seriously most people and never heard of him and he is the number two. like how high up as china in the realistic u.s. priorities? is china just a card? or is it a real thing there is concerned about? >> is significant. let me be direct here republicans are afraid of china and their competitive capabilities and manufacturing. they are fried of change -- afraid of china and how much debt that it owns.
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the reaction to china's fear -- i wish there were a broader picture i was they could see the opportunities as well as challenges. that would make for a much stronger foreign policy. >> think you so much. back to you. come from there. time now for look at some of the top stories in bloomberg. here's it on. expects the new iphone to set records thanks to demand from china. orders are very strong and on track to exceed 10 million. this is the first year china has been included in the list of countries to sell the smartphone at its introduction. a new operator is going head-to-head with uber.
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they will spend over $750 million to lease cars. they expect to add 100,000 drivers by next year giving them the option to on the vehicles after years. they had been increasing their president -- presence in india. --r is spending one million one billion dollars to reach new cities. china is trying to entice family buyers with its first suv. forill go on sale next year $48,000. enters a crowded market already thoseted by audi and bmw are the top corporate stores this hour. itse: pushing ahead with
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caught up with the ceo at the start of the frankfurt auto show. >> a couple of exciting days of new cars being unveiled. i can confidently say i'm going to be the first to kick with my little booty shoes the tires. they plan to eventually produce this car in china and that's an interesting point. my spoke with him earlier this morning, he said he was not concerned about the slowdown there and he expected a normalization. we see normalization happening in china. we are convinced that china will continue to grow. it will continue to grow particularly in the west. we are getting ready for this china is saturated, but there is still growth. we set up a new factory two
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years ago. is to build the budget car and to the rest of china. dayt's a number of tennis view of the world there is a slowdown in brazil as well. >> we cover that intensively from all of our locations. a lot of highly qualified people are coming over, that's an opportunity to use people to give them jobs. we see opportunities to train refugees who are not as skilled. this will be our contribution. days will being looking at all of these cars of the auto show. i found one more my speed. frankfurt.
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we'll be hearing from a lot more big names in the auto industry throughout the day. including the ceo of jaguar land rover. you can catch that interview at 1:00 this afternoon on: four-time. make sure you stay with us right here on bloomberg. coming up, 12 months and that's the time australia's prime minister has before the election. we're going to look at the challenges facing him. ♪
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world, theund the governor of okinawa says he is preparing to revoke approval for the new location of a
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controversial u.s. military base. the battle has been raging for almost 20 years. the island is home to more than half of the 50,000 u.s. troops stationed in japan many locals wanted gone altogether. the government says relocation efforts will continue. police follow from -- protesters in kathmandu after the national assembly calls to return the himalayan state to independent. voting on the constitution has been delayed for years and is expected to take several days. newa wants to launch a earth observation satellite that lasted into orbit.
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media say the satellite can pick up images of less than a meter. things move fast in australian politics, later today a new prime minister will be sworn in. the fifth this decade. let's get more. what happened here? the speed i think it which we have a new prime minister caught everyone off guard. it was only less than 12 hours high-profile person challenged the incumbent prime minister and one quite comfortably.
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means' stray has its fifth prime minister in five years and system as you know continues on. it produced these sorts of results. angie: this is a parliamentary system that exists elsewhere, never have we seen such internal political party drama really spill out into the public space. this is the second such type of turnover within internal party lines that we've seen in australia. has the game changed? >> there are similarities between what happened in 2010 in what happened at tony abbott last night. both men were declared champions achievedcast and then some degree of popularity but the metal popularity fell away cases,arply and in both
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the opposition around them within the party pointed to the fact that's the internal was not toystems their satisfaction. that, we had a large number of opinion polls that showed the government was on track to lose comfortably. this precipitated what the back they had to move if they wanted have some chance of winning the next election and that's exactly what they've done area angie: how effective when it does can a government like this be when the leaders also thwarting his own enemies internally and trying to presumably put together a new cabinet and new direction and you policy?
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will always bent divided in these sorts of divisions just make that social and difference of opinions really just become even stronger. the problem he has now is that a small l liberal and his economic social views. is a large party number of highly socially conservative elements. this challenge will be to somehow reconcile these two different groups. all of these things are questions we don't have answers to as of yet. he does point to a party that's delighted -- divided. the only benefit the government now has is that there is 12 months until next election. will the call for
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immediate reelection or is he going to serve out the rest of the term? >> if he wants to call an aection it will probably be double decision election and that increases the chances of other people coming into parliament because the rules make it easy for these sorts of new parties to win seats. i don't think that's the politically shrewd thing to do. in august of next year which is when the election can be called, that's the best time to give a call. he will have established himself as a strong prime minister and leader and have the ability to campaign on his track record rather than at the whim of minor parties. angie: tell me about his allies. who can we expect rest the top? his allies are mixed bunch.
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one is australia's foreign minister. a number of votes from her state. she's a big mover and shaker and ultimately has been kingmaker. there are others. he has been able to craft a very cohesive team that has supported him. astonishing divided on state or economic climes, it's a team that somehow sprinted to action to try and get the party a chance of winning the next election. i think the big change will be the trigger. there is some indication on national and international monetary policy in australia. stewardship of that economy has turned criticism.
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we will leave it there. think you so much for that. just ahead, banking on the philippines. back into.
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the stockcome to exchange. we are looking at the openings in australia japan and korea. and on his fresh off her win. yvonne: looking great. this is in charge of -- he's building a $4
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billion casino project in manila. been delayed the we understand that the regulators plan to improve this. watch the stock of universal entertainment. this is my second pick. the full-year profit earnings coming up 23 and a half percent. profit should go up 50% for this year. are you going to be back? david: i will try. i'm looking at a japanese stock. i can't read japanese to save my life. it sells office equipment. profits rose about 24 million.
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angie: thanks guys. back in an hour a lot more coming up on first
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john: i'm john heilemann. mark: i'm mark halperin. and "with all due respect" to the former host of "celebrity apprentice", hasta la vista, baby. ♪ mark: on the show tonight, the hillary clinton's lap and then make america great cap, but first joe biden -- this is a big week in the campaign. there's the guaranteed to be good for television republican debate and hillary clinton's poll numbers are raising real questions in the democratic party, and john sets it up with his account of vice president

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