tv Trending Business Bloomberg September 16, 2015 10:00pm-11:01pm EDT
to bring japan out of the economic doldrums. they cut the country's credit rating after the boj decided not to add to the stimulus. japanese gdp is below that of china and korea. economists are divided over what the federal reserve is going to do in the closely watched rate decision. fund says hene doesn't care about the fed. nextalio says it is the economic downturn. follow me on twitter. by an 8.3gered magnitude earthquake are coming ashore in chile. authorities are either qa coastal areas, warning of strong aftershocks. let's head over to zeb. he's monitoring the situation. zeb: the aftershocks continue. they are concerning given the
fact that it is a public holiday in chile. many people waking -- making their way of santiago were already at the beaches. town, a unesco world heritage site. did those throngs of tourists and holidaymakers get to higher ground? the good news is that we are not hearing of any reports just yet of injuries or deaths. we will continue to watch out for those. as for the sea levels, we understand via the pacific tsunami warning center, wave heights on the chilean coast being reported in some places three meters above type level. that's expected to continue. i just checked in and the good news for hawaii according to the latest update, they say based on all available data, a major tsunami is not expected to trike the state of hawaii.
sea level changes and strong currents may appear on the coasts. people being told to stay away from the shoreline. this warning extends throughout the pacific. french polynesia being warned of high waves. warnings continuing to new zealand. new zealand's emergency authority saying basically the entire eastern coast of the country under warning here. that continues for the next 12 hours. we will watch this closely. still waiting for those reports to come in. i know you write ready to check -- i know jo ray ready to check in with our bureau chief in santiago. rishaad: absolutely. we are going to head to santiago. philip sanders is there. the movement on the ground changing at the moment? >> it is calling down of it. we've had aftershocks.
there was a biggish one about half an hour ago. the sioux nominee, basically. we were told there was going to the a train of waves, a series of waves coming in. we have those along the central coast and they reached as high as 4.5 meters. it flooded one town slightly. epicenter, the waves got smaller quickly. rishaad: who have you been talking to? what are the stories you're hearing? >> the stories from santiago aren't too dramatic. the city was shaken. we felt it very strongly for a long time. whatever people were doing, they stopped. they got out of their houses and
immediately the phone system collapsed as everybody tried to get through. iago is incredibly well-built. the buildings are incredibly solid. we couldn't see any damage. no broken windows. to the north, where the epicenter was, there was more damage. certainly among the adobe buildings, quite a few of those walls collapsed. there, the power went down, the phone lines went down, and i think the experience as a whole was far more frightening than in santiago. rishaad: there's a lot of criticism for the government when we had the 2010 earthquake. how's the response been this time? or is it too early to tell? >> the big mistake they made last time was not calling a tsunami warning immediately. they went on television last time and said there was no
danger of a tsunami. within half an hour of that theage, the tsunami reached coast and killed a few hundred people, especially to the south of santiago. this time, they immediately came out and issued the tsunami warning for the entire country. north to kilometers 2000 kilometers south of center iago. they got everyone away from the coast. that seems to have worked. rishaad: very quickly -- >> [indiscernible] quickly, you've been talking to the mining companies. what's the report from them? got statements from all of them. they seem to be fine. no reports yet of substantial damage. we don't know about all the
ports, all the transport facilities for all the mines, but what we are hearing so far is, everything seems to be operational. south ofquake hit where most of the really big mines are. -- theymines in chile are not underground ones. the damage seems to have been very limited. a few of them have been evacuated. there's no reports of damage. rishaad: thank you very much indeed, philip sanders joining us from santiago where he is the bureau chief for us. let's have a look at what's going on in the markets. when it comes to the asia-pacific trading day, here's shery. shery: asia stocks rising today for a second consecutive day. oil prices and also that upcoming fed meeting this week. the only major market in the red today, shanghai composite losing
0.9% after the late afternoon surge we saw yesterday. had gdp datad, we showing the economy grew less than expected. stocks their rising 0.7%. asx 200 gaining 1.5%. the energy sector leading the gains there. oil is very important for malaysia commodities. exporter rising 2.4%. they are headed for the biggest gains in two years. leadingl energy stocks the gains on the nikkei, rising 0.9%. we have trade data showing exports slowing in japan. back to you, rish. rishaad: japan not getting any economic relief from international trade. its trade deficit coming out wider than expected. exports slowing down for a second month. even on broke those numbers a
little while ago. this just a day after s&p cut japan's rating. yvonne: exports, the big story. up reply 1% in august, but missing estimates. one big factor, the slowdown in china. it's the biggest trading partner for japan. shipments to the mainland fell 4.6%. imports were just as disappointing, making the trade deficit the lightest we've seen in months -- the widest we've seen in months. the appreciation of the yen against the u.s. dollar and the yuan in august did hit exports. some economists say the focus is now on how much growth will rebound from july to september. a second consecutive drop in gdp would make stimulus from the government and the bank of japan more likely. as problems continue to mount, inflation near zero, economy contracting, and that rising as
the population ages, the imf estimates public debt will increase next year. these export figures also come on the heels of a cut to japan's long-term credit rating by s&p, slashing it from aa negative to a plus. the agency saying there was little chance abenomics will turn around the poor outlook for economic growth and inflation. japan's credit rating now lower than china and south korea, two of japan's economic rivals. athaad: let's have a look some of the other stories we are following today. here's juliet. juliette: we've been watching suzuki. shares rising sharply in the morning session in tokyo after the carmaker spent almost $4 billion buying back shares from volkswagen. the buyback marks the end of an ugly chapter for the two carmakers. inir relationship soured
2011. in august, arbitrators ordered vw to sell its stake in the carmaker. suzuki snapped up all shares owned by its german. ts german peer.t it jumped 4% on the open this morning. suzuki is now set to focus on its operations in india. from a failed joint venture to a major deal that's brewing between beer makers. the company that makes budweiser has outlined plans to buy smaller rival sab miller. sources say ab inbev has not made an offer yet, but miller is open to talks. together, the companies would supply one out of every three beers sold globally.
20% inler shares surged london wednesday, boosting its market value to around $90 billion. before yesterday, the stock had fallen 18% in a year. ab inbev rose more than 6% in brussels. back to the road. fiercest rivals are teaming up to challenge the company in china and the u.s. didi kuaidi has invested $100 million in lyft, the number two car hailing service in the u.s. behind uber. $2.5 billion. at the companies will share technology and product development teams. rishaad: coming up later on the program, it's 13 million followers on facebook and over 5 million daily visitors. we will be live from singapore to hear from the company.
rishaad: despite a slowdown in china, the country's movie industry is continuing to gain on hollywood. its box office expected to overtake tinseltown within the next two years. let's get more with alan eliza. made by chinaeing in the world of entertainment here. give us an idea of what's happening in this industry? >> good morning. it's nice to be on the show. the chinese film industry has made its long-awaited arrival. for many years, producers and
studios said, when his china going to arrive? we are waiting. finally, it pulled into the station and quickly took off on a bullet train and lost everybody in its wake. it is exponential growth, 30% year on year, exponential growth in screens, number of releases, and box office. rishaad: what's different about the moviegoing audience there in china and the movies that have played in china compared to the ones that hollywood is turning out? the average age of the moviegoing audience in china is 22. just think about it. they grew up with the internet, with wireless technology, social media, in a fully digital age. they have no preconceived notions about what movies they want to watch. they have all the major hollywood blockbusters coming into the country and they also have a booming local film
industry. they like something of everything. they love hollywood visual effects. they love hollywood technology. and great outstanding global franchises. but they also love their own movies, which speak to them very personally. they go as a group. they go for fun. it's and experience. rishaad: but it's not at the expense of hollywood. we do have restrictions on how many hollywood movies can be shown in china. i think that global growth being generated by china is really not at the expense of hollywood. i think it benefits hollywood. it benefits everybody who is working on movies around the world to know that there's a market of excited, young audience members who are willing to embrace something new.
i don't think that it was ever in the cards for hollywood to dominate the chinese box office. china has its own consumer base. they have their own preferences. they have a great local culture and very creative people. they were always going to be destined to have a booming film industry of their own. they don't like being pandered to the chinese audience. they don't like hollywood inserting things to make them favorable with the chinese. we've seen several experiments in this regard. audiences are looking for in hollywood movies, hollywood movies are capable of delivering without any compromises being made to a chinese brand or chinese actor or something like that. they like hollywood hollywood and they like chinese chinese. it is not really necessary.
for a chinese filmmaker to have international success is not the holy grail anymore, is it? >> not really. it used to be when the chinese box office was very small and the number of screens was small. chinese filmmakers needed to figure out how to release their films overseas in order to get some sort of investment coming in from making those movies. now, a chinese movie can recoup its investment with a huge profit in china alone without worrying about whether it works in the global audience sector or not. so it's not as important anymore. there will be chinese films eventually that will travel and will become worldwide successes, but it's not because of a need for finding audiences are capital. it just has to do with how people decide to make their
rishaad: this is "trending business." i'm rishaad salamat. one of the biggest events in the global game industry is getting underway. organizers predicting record attendance at the tokyo game show with hundreds of vendors seeking to promote their titles. grace is there. grace, how is this year different from the ones before? me, i met behind tokyo game show, and you see behind me the show. this year, there's 480 participants. that is an increase from last year. what is worth noticing is there are more than half the participants from overseas. what sparkede, your interest? what's caught your eye? interesting to
notice that this year, among the more than 1200 exhibit titles, about 40% of them are playable on smartphones. they are increasing the importance in smartphone games at the game show. one of the reasons i found out is because there are more and more chinese smartphone makers taking large spaces at tokyo game show. they are having the biggest boost in asia. it will be interesting to see. rishaad: absolutely. microsoft and nintendo not attending probably cheapens the event. on the other hand, that's all good news for sony, isn't it? >> exactly. this year, sony has the biggest
booth because of the absence of xbox from microsoft, and sony is exhibiting the largest number of titles this year. it will be very interesting to see. earlier, i went to their booth and i found out that their booth is already fully booked. they just opened the venue for 30 minutes. how thate amazing popularity is gaining. it will be interesting to see when it gets formally released the first half of next year. rishaad: grace, thank you very much. grace from the tokyo game show kicking off. ♪ 2015 rugby world
cup about to get underway in england and wales. teams from around the world have arrived. new zealand has been meeting fans. they are aiming to make rugby history of becoming the first to win consecutive world cups. the first game is on sunday. they are taking on the coolness. that is at wembley. the finalists of the previous tournament, france also set to go, the coach praising the school. the french media have been rather critical. one of the players complained about being kept up late by a noisy wedding party. wales have faced a big setback with two of their key players ruled out because of injury. wales have also been drawn in the pool of death alongside host england and two-time champions australia. >> it's going to be very tough to qualify. we have to be at our best to win it. we have to be at our best.
there's no doubt in that. the eighthis is competition in the tournament's history. the first was played in new zealand. 20 teams will compete over the next six weeks. the tournament has set a new ticket sales record. it is expected to set a new viewing record as well. england take on fiji in the opening match on friday evening. we will bring you regular updates throughout the tournament right here on bloomberg. up, suzuki surging after it buys back its stake from volkswagen. why the two automakers are going in different directions. ♪
rishaad: a look at our top stories. waves triggered by an earthquake coming ashore in chile. authorities evacuating coastal areas. powerful aftershocks are expected to follow. one person is reportedly dead after the quake struck the north central region of the country. buildings were shaken in the capital of santiago. oil below $50, and yet that wasn't enough to boost japan's trade numbers. imports and exports came in below economist forecasts. this after s&p downgraded
japan's credit rating. chinese stocks continuing their slide despite signs of government and are mentioned in the -- government intervention in the market. the shanghai composite has resumed its decline in the first hour of the session today. the government estimated to have spent a quarter of a trillion dollars to prop up the market. here's shery having a look at where we are. shery: we are keeping an eye on oil. oil has been driving stocks this morning. after surging more than 5.5% in the last session, right now coming down from those highs, falling 0.2%. oil has been fluctuating since falling below $40 a barrel last month. we are also keeping an eye on copper, after prices keep rising, expanding gains since that 8.3 magnitude earthquake in chile.
at one point this morning, it rose to 5430, the highest we've seen in a week. chile is home to the world's biggest copper producer, but they are saying their infrastructure and their people are safe. let's go through some movers in china. china resources have been added to goldman's conviction by list. upgraded toic neutral at credit suisse. rising 1.4%. citic securities was downgraded by hsbc, cut to hold. still, the stock is rising 1.4%. brokerages in china have suffered, we've been told by sources they were asked to contribute billions of dollars to the market. executives at citic securities are being proved at the moment. from cautiong
security saying they will turn around in the next quarter after being hit by the mers outbreak in south korea. samsung electronics unchanged at the moment. global media are reporting they may cut their led workforce. rishaad: thanks, shery. japan came out with its fifth monthly trade deficit. in august.n all coming a day after japan's credit rating was cut by standard and poor. brian fowler in tokyo, is this cut is essentially a no-confidence vote for abenomics? it's definitely a bit of a slap in the face for him. it puts japan's sovereign rating below that of china, which symbolically is unwelcome here in china -- here in japan. the timing is interesting.
abe has spent the last few weeks focused on these security bills in the face of great opposition. his support ratings are falling. is,ink the message from s&p it's time to get back to business. rishaad: will he listen? will the downgrade perhaps engender a bit more urgency on the fiscal front? that's a good question. it's always not really clear if he's going to listen or not. i think there's a broad understanding in japan that something has to be done. the national debt is about 240% of gdp. demographics are a ticking time bomb. you've got fewer people paying taxes, meanwhile you've got people living longer, which is putting a strain on the pension system and the health care system. we will be looking to see if mr. goodwills political
from winning the party election this month to push forward much-needed reforms. moread: what's the considered view over the investment community to all this? >> jgb's are going to be stable. more than 90% of those assets are held by japanese investors. they have total faith in japan's ability to pay. i think the stock market is still benefiting from some of the things that abe did successfully, such as improving corporate governance, pushing companies to boost their rle's. there may be some hope that this movement by the s&p will push for more reforms. that's a positive development. rishaad: right, thanks a lot for that. brian fowler joining us from tokyo. inna casting its net wider
its ongoing market manipulation pro, this time in snow an assistant chairman of securities regulator. purification is that the term they are using? >> they want to purify the market. good luck with that. markets by nature our markets. there's ups and downs, speculation and hedging, and losses, but they want to stabilize this. the latest name you can add to the list of people getting caught up in this investigation, going beyond xi jinping's jun.uption probe, jong yu the regulatory body in china overseeing the stock markets. he's one of three assistant chairman. he's a big fish. he's also the former manager of the shanghai and shenzhen stock markets. this guy is close to the action. rishaad: this is a big deal. >> it's a big deal.
he's being investigated for severe violations, a euphemism often used for economic crimes, whether it is insider trading or facilitating insider trading or what. we've had some other regulator officials being investigated. we had those citic officials as well. the president, not indicted, but investigated for alleged insider trading. we had that journalist for rumormongering. we have malicious shortselling. hedge fund operators being called in to the investigated. rishaad: what's the signal here? the market intervention can take many different guises. not just going in there and spending cash, but releasing funds, that sort of thing. >> ordering state owned enterprises to buy their own shares or by other shares to prop up the market.
there seems to have been various support levels. what that's creating is, traders say, the market is trending down. we can see intraday over the last five days, we can see where some of them very obvious government buying is coming in. yesterday, it happened to the s 3000 level. in the last hour of trading, the market went from negative to up 3% over an hour. that is obviously some direct buying. ago, as a few weeks soon as we hit that line in the sand, -- [indiscernible] >> shifting sands. rishaad: you go below 3.5, and it is gone. but is 3000 the level now? >> it seems so. traders are kind of holding back and going, is the government going to step in again? that is the sweet spot to buy,
right before it shoots up and the intervention happens. we had a guest saying that is what traders are doing. there was a low in the market yesterday. we will see today, what's the market doing today? rishaad: 3100. >> ok, take talk. let's talk later. rishaad: let's have a look at some of the stories we are following for you. a major deal may be brewing for two of the world's biggest beer makers. the company that owns budweiser planning to buy its smaller rival, sab miller. ab inbev has not made an offer yet, but sab miller is open to talks. the deal would be the biggest in the industry's history. together, the companies would supply one of three beers sold on planet earth. sab miller surging to 20%. ab inbev also gaining, but not nearly as much. bank decidedntral
it is up to the government to support the economic recovery as it kept rates unchanged. unanimous decision allowed to keep the benchmark rate 1.5%. the baht weakening over the last six months is asia's worst performer after the malaysian ringgit. apple, the watch os2 update was scheduled to be rolled out today. it includes new watch faces and functionality for the device. the problems haven't affected apple's release of ios 9. apple says the watch software update will be available soon. let's look at suzuki, shares on the way up rapidly this morning. this after the carmaker spent almost $4 billion buying back shares from volkswagen following their failed joint venture.
we've got the bloomberg news craig trudell joining us from tokyo. why did this partnership fall apart? that's absolutely right, rish. it was just a few weeks ago that the arbitration court that's been deliberating over this finally made its ruling. you heard suzuki's chairman kind of talk about this being a bone stuck in his throat that he's finally been relieved enough to be able to get out. this is a partnership that was sealed way back in december 2009. it made sense on paper, but it didn't take long for this to fall apart. it all started with volkswagen, saying in its annual report that it could influence suzuki, kind of influence is decision-making. that did not sit well with
suzuki. it puts a premium on maintaining independence. it did a diesel engine deal with fiat and that also hurt volkswagen in turn. you really had this marriage just being troubled from the beginning. finally now ending in divorce. those arbitrators ruled on this that volkswagen had to sell these shares. why has it taken this long and why is the sale happening now? is there anything in the timing? >> even in the final determination of the breakup, these two were still at odds. suzuki said the arbitrator had ruled looks like it has got to sell its stake to us or someone of our choosing. volkswagen said, we are still looking at this ruling and deciding what this means. it took a couple weeks to be finalized. now that it's out of the way, the real question is what suzuki does from here with the shares
that it bought. almost $4 billion worth. daniel loeb, hedge fund manager at third point, very active in some japanese companies recently, has said that suzuki auto canceled these shares as a reward for shareholders who had to put up with this long, drawn out process. these shareholders are missing out on some lost value here that maybe could have been born out had suzuki and volkswagen packaged -- patched things up. rishaad: thanks for joining us. suzuki snapping up those vw shares. at the same time, seeing its share price rocket higher. next, it has been described as the asian amazon. it extends to remote islands in indonesia and the philippines. we will hear from the chief executive right after this. ♪
rishaad: you're back with "trending business" with me, rishaad salamat. a company focused on southeast asia was founded three years ago and now has 5.5 million daily visits. as haslinda amin is there with the group's ceo. take it away. haslinda: when it comes to shopping, it's right up my alley. this east door, 8 million products are available. threet to eight from just in a matter of two months. how did you go from 3 million to 8 million products in just two months? >> we are now three and a half years old. at the beginning, we focused on
building the infrastructure to have a scalable market base on our platform. we just really opened up the third-party merchants. we have the infrastructure to allow everyone to get their products on to the website and allow customers to find what they're looking for. haslinda: infrastructure is the issue here. i read a report where one of your customers received a bar of soap instead of the iphone that he ordered online. overall, the logistics is a challenge. you just need to look at the map and see that southeast asia has a different geography. we very much focus to build a unique logistics model. we work with 17 plus logistics partners and do a large share of deliveries ourselves. in this network, sometimes things go wrong. for us, it is about focusing on making sure the customer still
gets what they wanted. we assure the customer we will make up for it. haslinda: you've grown exponentially. what is the profile of your customers? would it be fair to say it is more the younger population who are willing to buy online? >> the younger population with their first disposable income largely 25-35 age bracket. that's exactly our target. we look at southeast asia. we look at a growing middle class. we look at people with their first disposable income. we really want to target those groups who have their first disposable income and give them the products they are looking for. haslinda: why just southeast asia? expande the means to beyond the region. why limit yourself to just southeast asia? forget, we are 3.5
years old. that's a pretty big high we are going after. the focus is on getting that right first. haslinda: how much of the industry would you like to garner, and realistically, how soon can you get there? >> if you look at development in china, the share of e-commerce has gone from 1% to 10% in five years. we are at the early end of that curve. when you look at the market of 300 billion and project that the growth of e-commerce is even faster than it was in china, because you have the explosion of mobile phones, i think we can get there very fast. haslinda: do you see e-commerce growing in tandem with the penetration of smartphones? can it grow at the same right? >> i think it grows even faster. in the end, the phone acts as an
enabler. the enabler drives through the ease of doing business a higher frequency of purchase. people spend a huge amount of time on their phone. as soon as they get in their head that e-commerce is the easiest way to get a product, they change their purchasing behavior. haslinda: the company is now valued at more than $1 billion. do you see yourself needing more funding for your expansion plans? >> at the moment, we are very happy where we stand. we know what we want to do. when you think about additional funding, you focus on what are you going to use the money for. we couldots of ways further improve our customer experience. we can bring the warehouse is closer to the merchants. we can reduce the time on shipping. we can improve three-hour shipping windows versus 2-3 day shipping windows. there's lots of things we could
do. i think it's very much for us about privatization and focus. haslinda: there can always be copycats. the model is out there. what would set you apart from your competitors? >> i think it's very much that we are focused on what we want to achieve. we want to make sure we are the platform which focuses on the customer. we want to focus on getting the products to the people. what makes us different is the expertise that we built over the last 3.5 years focused on this market. this is not the u.s., not china, not india. this is southeast asia. there is something you need to learn and manage. the learning curve, it's not one big thing. it's a thousand small things. haslinda: the biggest challenge you face in expanding and ensuring you have the right logistics infrastructure, what would it be?
>> i think the biggest challenge is staying true to your principles. our principles are clearly that we want to ensure the customer experience does not suffer. i think it's very important that you look back and reflect and say, this is what we're trying to do. let's not diverge. haslinda: we have to leave it there. rish, coming to you from the milton institute. back to you. rishaad: thanks, has. we're going to take a break. the question is, to raise or not to raise? it is coming ahead of that fed rate decision. ♪
wants to know, well the central bank finally raise rates? bloomberg's economics editor michael mckee sent this to us from new york. >> neither do know the psychological impact of a change in direction after seven years with fates -- with rates at effectively zero. with unemployment at 1.5%, stronger home sales, the case for a rate move seems set. with china's equity bubble collapse, volatility in u.s. markets, and a another volatility [indiscernible] -- that would give the fed an opportunity to assess the effects of those developments on the prospects for growth ahead. today, that debate moves from the trading floor to the fed conference room. no matter what they decide, the announcement will be complicated. they wil release new economic forecasts. if they hold off, what do they say? do they announce a press conference?
if they go, why and how? investors will want the exit strategy. and everybody wants the answer to the next question. what do they do next? michael mckee, bloomberg, new york. rishaad: will they, won't they? we'll find out very soon. today, on high flyers, someone who links asia with the middle east and europe. he is the ceo of westport, which runs one of the main ports in malaysia. he's played a big role in the company's ipo. unlike most bosses, he says at westport, the worker is king, not the customer. it's not that we disregard the customer. we are very customer-focused. >> they are clean, right? right?n, rishaad: catch that this
>> this is a special global edition of bloomberg "surveillance" in prime time. from new york, here are tom keene and michael mckee. tom: good evening, everyone. we are here on a beautiful day north of new york city for one of our most anticipated events in the history of bloomberg "surveillance." this is 114 acres north of new york city. michael: a short ride.