tv Trending Business Bloomberg September 22, 2015 10:00pm-11:01pm EDT
president's speech, the latest manufacturing confirmed a seventh month of contractions coming at its lowest since 2009. asian stock markets are trading lower with investors across the board still worried about that slowdown in the world's number two economy. volkswagen'sair, ceo will face a committee todayy over the admissions scandal. vw does not have all the to cheapfter admitting admissions tests. you can follow me on to after -- twitter. president has moved to over the. concerns chinese economy in seattle. he told the audience the chinese
economy will maintain stable, relatively faster growth and he reiterated the opposition to currency wars. he says the stock market has reached a phase of self recovery after the government stepped in. > these are normal ups and downs in china's stock market. fluctuating according to laws, and it is the duty of the government to ensure an open and fair just market and prevent massive panic. the chinese government took steps to civilize the market and contain panic in the stock market. thus in avoided a systemic risk. let's go tomore, the event in seattle. you, theeat to see president also spoke about cyber security during his speech. >> that is exactly right.
that was one of many issues that the president talked about. basically, it was a laundry list of top u.s. concerns. he finished policy speech about half an hour ago. i spoke to many people who were waiting to hear what he might say, if he might move some markets. in the end, he did not really do that much that still before eager to hear what he had to say. henry kissinger, the former secretary of state, was there. speaking to some of the topics, the economy was chief among them. president xi said the chinese economy is still operating in a good range. interestingly, bloomberg pro-dex desperate dekes -- predicts change.
one thing the president did say is that it is the duty of the government to stabilize the stock market to avoid any systemic risk. this fall, by nearly 40% over the past few months the evaluations was also an issue. he said china will not be value its currency -- devalue its currency. sea was alsona another issue. territorial waters are the big issue over there. beijing does claim about 4/5 of the sea must to the chagrin of its neighbors including the philippines and the watchful eye of japan and south korea. they do say they will not seek hegemony or expansion.
espionage a, cyber very big topic tonight. that will also be when president xi meet the obama. --y say he is a defender meet president obama. they say he is also a defender of cyber security. they will try to fight cybercrime with the united states. they are holding out and all the branch, or at least a hand to see if they can combat to that. notesed on some warm talking about relationship building in the past. including the building of the transcontinental railroad with the help of chinese immigrants. in addition, he talked about u.s. help with world war ii and said that fire burns high when everyone brings would to it. that was how he started it.
you thanked everyone for helping his country grow higher, grow bigger, grow larger. this laundry list is something that we have heard before. lips a little bit of service to top u.s. concerns. we will see a president obama can push president xi to carry through on action. those multinational companies, he will be meeting with in seattle, thank you so much joining us live from seattle indonesia trading is getting underway. let's go over to david who is on marketwatch. any relevant takeaways for investors? lot of these lines are sort of longer-term. one of the keys that did come intervention in the
market to avoid panic. i think a key thing as well is that the market has entered a self recovery phase, as he calls it. whether or not that means they will step back from intervention is another thing altogether. n very thin on the shanghai composite. a bigger story, a bigger risk story. that is where we are at the moment, down 2%. it'll be interesting to see how japan plays catch-up. about 15king news minutes back, sources are telling bloomberg that they may have illegally profited from the stock market rescue. advanced knowledge of these orchestrated purchases by
the government to profit and put those traits into benefit. the firm, and funnelling government rescue money into benefits. if that report is accurate, someone is going to be in trouble. another big piece of news, the latest manufacturing data -- we will get you more in just a moment. we are more or less at session low for the aussie dollar. yvonne: some disappointing information coming out of their when you factor in pmi. i was talking to someone from jp morgan and they said it is serious. growth isnstrates how
struggling for momentum. the economy is struggling to get interesteven after rate cuts since november. even after the central bank has taken a lot of steps to try and get lending going. they are funneling credit into infrastructure to try and get real activity on the ground. are someow that there mitigating factors, we know there are still big factory shutdowns on september 3. the authorities wanted clear skies to close down production, but that does not explain everything. the manufacturing sector, and the factory sector remains stuck in the mud. they are suffering from deflation, and falling exports. the real growth drivers of china's economy are struggling. the new engines, services and
consumption, while they are doing well, and better than historically, it is still a not to fill the gap. normally good news -- yes. thank you so much for that. we take a look at some of the other stories we're watching for you. vw's widening scandal over cheating on u.s. pollution could take a toll of carmakers asia strategy, and hurt its global racer titled up. sales inmpt to revive its largest market, which is china. they have underperformed in china this year. analysts say any damage to bw's reputation and the brand could be a game changer for its competition with toyota. vw cheating onof emissions standards comes
after recalls in china over the last two years. to another carmarker, gm may need to cut production in its south korean production if it can't sell the vehicles told there. vehiclesust 113,000 from that plant. operations have been struggling because they used to export to russia and europe. the korean factory has been left with fewer vehicles to build. other company which is willg challenges, groupon
leave seven countries as part of a global structure. they cut 10% of their group work. tot of those charges relte employee severance for -- relate to employee severance. they got 35% of their sales outside of north america, but has struggled to make money in those areas. coming up, damage control -- find out what the volkswagen scandal means for indian auto-parts supplier. time, i would next guest says china will left alone a costly lesson after what he says is an experiment with fantasy economics. ♪
yvonne: chinese president xi promoted a stable outlook for the chinese economy in a speech in seattle. the latest factory numbers for china paint a worrying picture. so, what do we believe? who should be believed, andy? andy: i think it is all relative,. china has over capacity, that is why prices have been falling. so you expect companies to cut back production during that time. yvonne: should we care about these numbers too much? should be looking at reform measures? china has been piling up investment to stimulate the economy for a long time. capacity., you have
this is where you have to roll back, china needs to deal with this overcapacity issue. they must have a program to deal with the loans that come from shutting down these factories, but the government does not want to deal with these issues. aboutuibble responsibility, but right now if china was to do something overcapacity -- yvonne: it seems like they're doing more in terms of the stock market than the overall economy. it is crazy, you make the markets go up -- it is just a appearance. the fundamentals are that fear of two manufacturers producing the same thing, and we don't have customers. you have to shut down this factories and do something new to compete against japan and germany. that means you have to upgrade
technology, and that takes time. there is now solution. -- no quick solution. we have to accept the reality and move on to see if you can keep delaying reforms or just postponed up with the bright future we may have. yvonne: they have a lot of pr to do while he is in the states,. there is a lot of skepticism about how they responded, some say ham-handed and irresponsible. andy: the market is still falling, the government is 3700, then be in the they push it back, now it is close to 3000, i don't see how
you can call that a success. the people doing these interventions don't understand the market economics. they believe too much and governmental power -- in governmental power. i am so powerful, i wish this to happen, so they think that it will happen because of that. they still do not understand why the market behaves this way. yvonne: the fed claims they may raise rates soon, but what will they do to keep money at home? either you keep it low to boost optimism, or you rates interest rates. the government is not doing either. some people are being sent to jail for taking money out, but a lot of people taking the money out a very important people.
i'm not sure this will go on for a long time. for now they're just burning through foreign reserves to keep the status quo. they have to do something about it. russia raised interest rates, china has an opportunity to restructure the economy. key is not short-term growth, the key is to put it on a solid foundation. let the market work, if they think the future of the economy depends on making the government strong, they are very mistaken. yvonne: we appreciate your perspective on the chinese economy as well as some of the lines we heard from the president. thank you so much. eu interior ministers are meeting in brussels and have
agreed to shelter 120,000 refugees from the middle east and africa. were approvedtas in the czech republic and romania. how they might be punished for not doing so is being debated. if implemented, it deals with just a faction of the one million people were heading to europe over the next year. an armed group had proclaimed allegiance to al qaeda, they recently turned to kidnapping for ransom. those claim to be from a communist group were lifted from the scene, but police believed it to be fake. no one has claimed responsibility. china has warned australia not to take sides in the territorial dispute after the prime minister accused beijing a person the envelope with its land
is back to action in the rugby world cup today. it were shocked to see south africa, a win being called one of the greatest sporting upsets of all time. the official world cup is in london was forced to close early after that match as it was japanese fans seeking a souvenir. also tonight, two-time world champions australia make their tournament debut against fiji. there ranked number two in the world behind the neighbor new zealand.
they will be making the world cup debut, the aussies will face a fired up fiji who lost their opening match to england in the so-called group of death. yvonne: here is juliette with a look at what is trending of social media. juliette: instagram, which facebook took over in 2010, or 2012i should say, is officially now more popular than twitter. it has 400 million monthly users, well more than what we have seen in twitter. at of course you are looking
-- what are you looking at today? shery: i'm looking at iphones, because we -- they're just being released this week. ,e finding some new features 3-d touch, if you press on the iphone you can find some functions and even some upgrades to the front facing of the camera. it will brighten up when you are taking a selfie, it will illuminate your face. some people are actually bored with the new phones, or are saying big deal. aboutme of very excited the new color, which apple calls rose gold, but many people are just calling pink. another person talking about the advantage of smartphones meaning more jobs for designers and developers. juliette: we have some tweets
about instagram, mark zuckerberg was one of those. he took instagram in 2012, and took to facebook to mention the fact that he was proud of saying and instagram they're looking to move forward. he said kevin and i celebrated by going on a walk on our roof. of next, nobody panic, a threat to the stock market rout as a visit to the u.s. gets underway. we will be dissecting policy when "trending business" returns. ♪
volkswagen ceo will get a chance to make his case over the next couple of days. the key question is how much he knew about the scheme designed to dupe u.s. regulators over pollution. the company's share price has dived more than 30% since the scandal broke. let's take a look at what is moving the market, that pmi number not looking good. david: 47, so it missed estimates. things don't improve this last week of september, the reseller reason to believe we could get a much better read by the start of next month. have --ns that things
japan is still close. we are down for a third straight day, let me just get the sector movers right now. there is no place to hide at -- a fewt, if you bright spots not reflective of the whole benchmark right now. you had a selloff across all of the industrial and precious metals. also falling down 2.4% but again, take a look at the dollar index. we are up for a fourth straight session. 9633, up a little bit right now down to the gains we are seeing throughout the year.
the dollar stronger, the yen is stronger than the dollar, that tells you the risk aversion in the market right now. you have a two day chart as well. 70.15.touch under securities trading here in hong just thisover 4.5% session. china is said to suspect a -- some were profiting illegally off of the intervention. positions to benefit the firm, this is based on sources that we talked to. we continue to follow that --ry, greater forces at work
the latest confusion between the fed and whether or not we get back to a rate raise in december. president says china is ready to jointly fight cybercrime with the u.s.. as was one of many issues he addressed in his highly anticipated speech in seattle on the first day of his state visit. we have more on what he had to say. that they will not close their doors to the outside world. to 1979,harkening back another who went to seattle after the normalization of ties will stop that was his big deal, opening up the world. let me run through a number of different things. he was more charming -- more friendly, warm, and endearing to the american public will stop he
a lot lot of pop culture, of us cringed when he referred to "sleepless in seattle." he also mentioned "house of he said it was not a political witch hunt. he started the speech by referring to his teenage years in the 1960's when he was sent to the countryside and it was poverty and no meat. he said as president he went back to that village of internet, medical facilities, schools, meet was readily available. he said that was a microcosm for what has transpired over the last 50 years or so. was where started. he grabbed the hearts and minds of the american public that went down through the laundry list of the concerns in the room. he said the economy will stay on a steady course, growth will be
at a medium to high rate. the service sector, he says, has enormous potential. calledck market concerned, he said it is the duty of the government to make sure panic is contained. on the devaluation, he said their efforts have achieved initial success, no basis for continued depreciation. he is against any sort of competitive devaluation or currency war. he won't lower its to boost exports. a greater will play role in the allocation of resources, it will open up a basic state policy. and, the most contentious issue he will have to deal with, allegations of cyber theft. he says he is a strong advocate of preventing cyberspace crime. crimes must be punished in
accordance with international treaty. this is what the president had to say about potential cooperation. the international community should, on the basis of mutual respect, work together to build a secure, open, and cooperative cyberspace. china is ready to set up a high level. stephen: there's been a lot of rumblings of the two sides on this issue. some of initially call this an arms accord, i think the contentious nature of these dialogues is going to have the back expectations. obama said we are preparing a number of measures that will indicate to the chinese that this is not just a matter of us being mildly upset.
it will take that right to his face. he invoked hemingway, martin luther king, and basically said we must read our strategic intentions correctly. disastrous, and we must manage their differences correctly. yvonne: earlier, they were saying a lot of the surprises with president, but coming back to the economy, we just got the latest figures -- that is not looking that good either. that is a reflection of the economy right now, and it should not be too much of a surprise either. we are going to see a weaker pmi, this is the seventh straight month of contraction for chinese manufacturing. mostly private sector
manufacturing, 47.0, we expected 47.5, that is probably why markets are reacting so negatively. the august reading was 47.3, the lowest since march of 2009. yvonne: bringing things all china for us today, thank you so much for that. some of the stories, asians got the green light to sell bonds on china's interbank market. sell bonds after .etting approval from the pboc it will allow the hong kong unit to sell $1.5 billion in bonds. it is lobbying for reserve carlin -- currency's status for the yuan. sources say the chinese stock have derailed
discussions. the brokerage firm had been in talks to buy muscle investments for $1.8 billion. there said to be in discussion with other bidders. he will go under chemotherapy versioneatable of lymphoma. story, vw'sbig scandal over cheating on u.s. air pollution tests could take a toll on the german carmakers asia strategy. let's bring in shery right now who has more on the situation. probe just widening, the
is widening, and the fallout is widening. theould see a delay in chinese expansion. they have not been doing great of this year in china. analysts are saying any damage to vw's brand image or reputation at this point could be a game changer in their competition against toyota. of course, the revelation of this cheating in the u.s. admissions test comes after two recalls in the chinese market already in the past two years. they are risking losing customer trust. china is not saying anything about initiating a probe. in south korea, however, they will investigate 1000 cars imported in the last year. we are hearing from taiwan that they are speaking -- seeking answers from vw already. here ina lot to develop
this scandal. what we know about the cost? shery: we are hearing they could be fined up to $18 billion from the environmental protection agency in the u.s. we could see additional fees on top of that. the of seeing $27 billion of vw's market value being a racist with that -- erased with that stock plunge this week. marketshare share could take a hit in the u.s. as well. also, a key part of its u.s. diesel market's take up about 58%, they are setting aside $73 billion to take care of this. yvonne: it shows how big of an
issue this is for the entire market. it could have a big impact in terms of the diesel market. some are saying that maybe this an opening for an electric vehicle. how could this recoverable's wagon, and its rivals hunt -- volkswagen and its rivals. they say it is very viable in the u.s., and a plea stringent recovery. expansion strategies was to go into u.s. and sell more diesel vehicles. it was one of the largest easel vehicle sellers in the u.s. just a few days ago, volkswagen announced at the frankfurt auto show they will put out the new .odels of electric vehicles this is a shift in strategy
before the story broke. they must have known this was going to happen. they said that was what they would focus on in the next five years. yvonne: could this affects the way u.s. consumers -- and regulators, this affect demand for diesel vehicles? >> absolutely. in europe, they have already been following -- falling out of favor. the u.s. originally, before this happened, was seen as a major market for diesel vehicles. definitely, this will impact that perception. $18 billion is only the tip of the iceberg. we could see individual suits, civil lawsuits, states could impose fines. yvonne: we are hearing class action lawsuits could also take place.
i was interested to see, with this scandal, will they be able to recover from this if they sell lower emission vehicles? in: this will be the largest automobile lawsuit in history. the closest one before that with the late 90's where a group of truck manufacturers were fined about a billion dollars for allegedly cheating on emissions tests. this president of these things happening, but nothing comes compared to this. bw -- vw course, plunging last year. yvonne: we will have an account of that executive meeting. thanks so much for joining us on this discussion. we have plenty more from that later on in the show, we will be live in mumbai to see how the
he told the u.n. rights counsel that okinawa was wishes are being ignored. the basis of the 12,000 marines. after decades -- announced of a previously unknown species of dinosaur. it was found in northern alaska and raises questions about dinosaur physiology. theories of ancient reptiles adapting to temperatures far colder than the tropical conditions normally associated with dinosaurs. yvonne: singapore has done it again, and it's been voted for the best place for ex-pats to live. let's head straight to the city where our south east asia correspondent is waiting by.
now, what makes singapore stand out? : guess what, singapore has it all. they get good pay, great quality of life, and if you are after career development, you'll get that at least according to 20,000 ex-pats surveyed. what they found out that survey -- a third of them make more year, more than double when compared globally. 60% say it is a good place for career development, 70% say it offers a better quality of life. 80% have confident in the economy. if you are a parent, your child's health will improve by moving to singapore. singapore is number one, the
other top five include new zealand, sweden, are rain, and germany. the most generous package will be found in the middle east, they get everything. yvonne: it is summer 365 days a i saw that list you put out there, sweden, that is a new entry. why is it among the best place for ex-pats? haslinda: sweden is the best place family life, it is the north family friendly -- whether you have kids or not. or to percent said they found -- that if you found have kids, it is easy to find child care and education.
joined from mumbai. just how bad is the impact of this scandal in india? is slumping almost 20%, the conscience of being sent here from india. it is one of the usually commit manufacturers. it has a 20% revenue exposure. a group this document taking a massive hit. nearly 12% down in last two days, we spoke to management here yesterday, and the chairman ins the supply are factoring as far as their margins. the real to analysts, concern is not just what is but the problems in
the products. , theso spreads to europe would not affect plant in the u.s., and they add money options at the end of trade yesterday. the highest level we of seen since the contract began trading in 2014. yvonne: joining us live from him by, thank you. -- mumbai, thank you. we see a global selloff continue all across the area, and started europe, the u.s., and now back here again. the hang seng down. the shanghai composite is down, and the kospi seeing similar losses. we get that china pmmi data coming out. years, downn six
(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. ♪ with all due respect to donald trump, this is a beautiful wall. ♪ >> good evening. sports fans, i mean that literally tonight. there's only one thing that is part of the country loves more than politics. that is baseball. tonight, we are talking to the president of the red sox about both. first, it is a historic day in america, but the president of china and the pope of vatican