tv Trending Business Bloomberg September 28, 2015 10:00pm-11:01pm EDT
february. the yen holds its gains. and wider world is the more car companies may be swept up in the airbag scandal. tesla, mercedes, and vw are among a number that have been contacted by regulators. let us know what you think of today's top stories by following me on twitter. do not forget to include the #trendingbusiness. it is an ugly day for regional markets. mining traitor glencore fell to record lows in new york, london, and now here in hong kong. juliette saly has been monitoring. >> quite a lot of selling coming through. we saw that they fall in london and new york. in open on hong kong, glencore shells -- shares falling by about 20 -- about 27%.
let's just have a quick look inside that sector and some of the big falls that we are seeing. the mining players down by more than 5%. all 14 of the major mining players that make up the regional benchmark index are falling today, led by allegro resources in australia. bhp billiton shares at a six-year low in australia. the number of the chinese coal players and mining players coming under significant pressure as well. rio tinto down 4.4%. australia's new crest mining and even some of the small players that we have seen around the region. it is having a big impact. share to get glencore's price for you. it is on the screen now. that is a record low in hong kong trade. we are seeing big falls coming asough in the overall index
well. the hang seng in hong kong down by 3.3%. it was close yesterday for a public holiday. and are coming back online very much being heavily sold off. we do have korea closed today for a public holiday. big falls coming through in japan, down more than 3%. we are seeing this impact coming through into the material space. mitsui having a big tumble, down almost 8%. let's have a quick look at some of the commodities. and some of the safe havens. we have seen the japanese yen really a winner out of this fall that we have seen coming through in the commodities space. the yen rising again today against the greenback. tumblingshares still quite heavily in asian trade. thanks.
let's get more on glencore from our metals and mining reporter. martin, thank you for joining us. why is glencore getting hit so badly? martin: we are in the middle of a commodities rout which does not seem to show any signs of letting up. it has been a very bad year for the ceo of glencore. shares have tumbled 76% this year. his own holding in the company has gone down from $7 billion to about $1.3 billion. he has been hit really hard. in theus figurehead commodities industry, someone who has always talked up the market. his company is emblematic of the commodities boom in the last few years. what has happened is the company is now taking that back again. in china isies rout ,ragging down demand for metals
all the things that glencore produces and trades. copper down 22% this year. nickel down more than 20%. all of these materials -- china is just not buying as much of them. it is hurting all of the metals and mining companies. it is not just glencore. yesterday, we had valley slash its planned dividend in half. alcoa deciding to split into two different companies. rusal, thehave aluminum producer, postponing the ex dividend payment. not a lot of good news across the commodities space. for glencore, it has really been a terrible year. shows no signs in getting better at the moment. yvonne: that is right.
thank you so much for joining us here. mining companies now possibly in junk status. take a look at some of the other stories we are watching you today. : prosecutors in germany have launched a criminal inquiry into martin winterkorn overachieving on emissions test. the investigation was launched after the carmaker and others filed complaints calling for a criminal inquiry into whether fraudulent measures were taken and, if so, who was responsible. the german government says they have been working hard to contain the damage. so that the reputation of german-big cars is not hurt. growing andis now we had hearing more reports about affected cars. 5 million vw's and more than 2 million audi brand vehicles.
skoda says 1.2 million cars were affected. we are already seeing some tangible fallout. after the scandal broke, orders 10%new vw cars were below the expected level for this month. over 150 orders have reportedly been canceled. india makes its latest rate decision later today. we may see a fourth cut this year. economists expect the governor .25%.uce it by he is facing pressure to lower rates as inflation slows. the government wants him to ease , but he has stressed that keeping a lid on inflation is the best way to sustain growth, calling his stand accommodative. --e analysts say he may not
he may change his tone to be more balanced. .sbc predicts a prolonged cause in japan, shares of japanese shipping line have been halted after the nikkei newspaper reported the company may seek bankruptcy protection as early as today. the company's liabilities might be about $1 billion. that is according to the report. they mainly due services carrying cargo such as iron, coal, and grains. it did not immediately respond to an e-mail seeking comment. thanks so much. the worldwide airbag scandal might sweep up more car companies. manufacturers including tesla, mercedes-benz, have been asked which of their models is equipped with takata products. craig, why hesitate in this long to widen the investigation? craig: this is a really
complicated issue to be dealing with. 's airbags have not actually ruptured in all of the 11 automakers that are already affected by those recalls. there are a select few in which there have been a number of injuries and even some deaths in honda models. what you have here is an issue where it is really difficult to figure out what is the root cause of this problem. it is something that is still unsolved. as long as they do not know what the root cause is, it is difficult for them to get to the bottom of how to fix it. what you have here is ammonium nitrate propellant, which is used to make these airbags go off, is something that has been the topic of a lot of scrutiny. what you have here is seven additional automakers, in
addition to those existing 11, who used airbag inflator's from takata that have that propellant. there are seven additional carmakers. those include tesla, volkswagen, suzuki, mercedes-benz. it is possible that the existing recalls may be expanded to those manufacturers as well. yvonne: looks like this fallout does continue. thanks so much. coming up later on in the show, the movers and shakers of the asian markets. we will speak to jpmorgan ahead of bloomberg's most influential summit. reshuffles its cabinet, appointing a new finance chief more on the new man in charge.
>> hello and welcome back. at what ise a look happening in taiwan. two people have been killed and more than three people have been sweeps as a typhoon across the island. there is no trading. schools, government offices, businesses all closed. the foreign exchange market is expected to open for the active session. -- u.n. has sustained plans the typhoon has sustained wind and more than 200 expected across the taiwan strait later on. an international team has begun .nvestigating an explosion he and his wife were returning when the blast happened. the president escaped unhurt, but his wife and an eight suffered wider injuries. a bodyguard was seriously injured. investigators want to know if you have -- the explosion was an accident or an attempt on the
president five. -- the presidents life. the crisis in syria has dominated the u.n. general assembly with president obama opening the door to collaborating with russia. there are signs the two sides will have to work together. the white house says president assad must go. yvonne: singapore shares are sinking further into their market territory. investors worried about a slowing economy. the selloff comes as the prime minister reshuffles its cabinet, looking to embrace them from growing economic challenges. how tough does it look right now? >> it is going to be cuffed. market,rket -- bear
falling further this morning. blame it on china. singapore is highly dependent on exports. largest trading partner. singapore is also a commodities-trading of -- hub. investors are pretty much spooked. they are selling singapore shares. some say we have not seen the worst yet. why? because the economy will be under further pressure. industrial production down for 10 months, the largest streak since the asian financial crisis. economists say a technical recession is almost unavoidable. that explains the weakness in the sing dollar as well. not looking pretty, especially with the haze that is still shrouding us right now. yvonne: singapore's prime minister reshuffles his cabinet yesterday. it is said that this new team could be repaired to take over if needed. what are some of the changes made here?
>> quite a few major changes across portfolios. the one that has grabbed attention is the finance minister. keat is the new man, former education minister. some say he is the rising star and the most qualified among all of the new faces in cabinet. the other change is for the post of transport minister. the former minister resigned. on social media, they were complaining about more frequent train line disruptions. lineup, a transition team. he expects to further shovel his cabinet to put in place a team to lead a changing singapore. huge challenges ahead for the live city. yvonne: the prime minister says they will be stretched and tested.
joining us live from singapore, thank you. moves -- iran moves closer to sanctions being lifted, optimism is rising. its currency has steadily declined. this year alone, it has fallen more than 10%. we visited an outdoor currency market in tehran to figure out how well business might be about to change. neighborhood is like wall street in america. it is a center for trade, politics, economics. >> at the end of this street, you have the outcry in currency markets. you just need to go there and ask traders how much the dollar has appreciated against the real.
the government has cracked down on the traders who trade on this street corner. they do not like being filmed. one trader did agree to speak to us, though. >> i have been trading currency for 25 years on this street. >> back when the currency suddenly depreciated, what was the atmosphere like? >> it was very busy. everyone was frightened and they started buying dollars needlessly. some guy even sold his house and bought dollars. >> since the new deal was has started tol stabilize and hopes are high. ways. hope, two >> high enough to be quoting shakespeare. yvonne: coming up, time for
handsets, boosted by sales in china. the first time the company has included the world's most populous country in the initial release of a new model phone. estimate china accounted for as many as 2.5 million units sold over the weekend. sharp will sell its osaka headquarters building to furniture retailer notorious. it includes another building which will be sold to ntt urban developments. will leaseback property as it continues to use the headquarters until about march of 2018. says it is on track to spin off its $22 billion stake in alibaba as it looks to al a allayn a --llay -- concern about a tax hit. is aiming toayer dump their 15% alibaba state,
potentially saving about $9 billion in taxes. a downgrade three month after saying it would double its credit line to finance loans to clients. rudy's has warned the spike might hurt the auctioneer's credit rating. they say further capping the credit line would weaken its balance sheet in a downturn. sotheby'sese -- profitability. some of the world's latest watchmakers prepared to display their wares. there is a shift underway in the industry. asia's taste for swiss watches is waning with exports on a steep decline. let's time may be running out on asia's love affair with luxury watches. bloomberg intelligence analysis shows exports to asia were already down 9% in the year through august before dropping
further 11%. this in a region that accounts for half of global exports. worse in mainland china, where august exports , hit hard by stock market volatility and the renewed crackdown on excess. the devalued yuan and gold slumped have not helped either. there is a new player on the block. after less than a year on the market, the apple watch may already be getting swiss watch volumes. the apple model sells for $349. apple is keeping its sales figures a secret, but with 14 million predicted to be sold by years end, it could be time for action by the swiss watch industry. andne: let's go to shery david with a look at what is trending on social media. shery: before we get to matt
damon, let's start talking about water found on mars. that has been trending on social media. nasa saying that there is evidence of wet soil, at least during the summer months. nasa itselfews from that has been promoting this discovery. they streamed their announcement online live and now they took to , toler, twitter, reddit make people understand and boost public attention on this. r, they arebl explaining, how can there be flowing water when mars is so cold? it, but anyway, all of this is trending on social media. they went to reddit to have a q&a session with people. people have been posting their questions. how much water are we talking about?
are we talking about tap water leaking or like niagara falls? they said just a little bit of water. twitter,, they took to explaining all of their projects on mars. they are talking about making oxygen there, rocket fuel, and for breathing. if you are curious, just go to nasa's webpage. potable, the water was that would be and there seem to some of these countries where you cannot drink water. let's look at some of these jokes. the first run -- one was poking fun. is this moving oil markets? shery: are we going to get the price of brent? is that why you needed that? david: moving on, hipsters are happy to find out that mars is
suitable for pickling vegetables. the next one here, water beds. , i think this is one of the best one to -- best ones. if you findbig deal water? , whichfind it in a cup means there is an alien, i am not interested. thanks so much. coming up next, the winners and losers of the recent market roller coaster. we will get the views of j.p. morgan asset management asia-pacific home. ♪ the only way to get better is to challenge yourself,
and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.
♪ yvonne: top stories trending this hour -- glencore shares plunged 27% in hong kong after hauling 30% overnight on both sides of the atlantic. the minor has lost more than three quarters of its value since march. $30 billion in debt and had to scrap its dividend to cut costs. at its height, glencore was worth $85 billion and was the biggest coal exporter in the world. on global selloff rolls across asia with the benchmark
index heading for his lowest lows since november of 20 toll of -- of 2012. it is on course to slide 16% this quarter with shares falling on concerns over the commodity slumped and the slowdown in china. the yen has held onto it gains as rising volatility fuels demand for safe haven assets. move -- more car companies could be swept up into the takata airbag scandal. replayedcles have been --recalled to replace airbag asking which models used takata inflators. asian bond yields have surged to the highest levels as investors flee to safety even assets. julia -- juliet has been managing it for us this morning. ette: quite a lot of selling
coming through. all the major players are being sold on the hang seng index. to that shares tumbling record low, down more than 27%. digg falls we saw coming through in london and new york. today.ublic holiday we have the nikkei down by over 2.5%. australia's asx 200 also being sold off. let's have a look at some of the key players that we are watching. not just glencore, but commodities in general have been sold off. we saw the oil price fall and the copper price fall as well. that is really waiting on the overall sector, particularly the materials sector. bhp billiton being heavily sold off today. tinto and iluka resources,
which is the worst performer. quite a lot of weakness coming through from a number of the key players. matsui has been named in a metal probe. it has had its biggest fall in five years. steel falling significantly, as is toho zinc. weakness has really flowed through to the rest of the market as well. sinopac under significant pressure. exacerbatingeally during asian trade. we are seeing investors flee into bonds and the safe haven japanese yen. yvonne: thanks so much. this time next week, our most influential summit will kick off in hong kong. we will get together people who are moving asian markets and focusing on the hottest issues in finance and business.
ceo ofthe guests is the j.p. morgan asset management in the asia-pacific and he joins us live in studio this morning. thank you so much for joining us. a pleasure to have you. before we count down to your big panel next week, i want to talk about global equities. people are saying valuations are hanging on for their dear lives. you should not be buying stocks right now. really, how are you advising investors? advising always investors to be broadly diversified. we think you have to own stocks as part of any well-diversified portfolio. we see a lot of opportunities. we are overweight and stronger overweight u.s. now, especially given the correction. we are overweight europe and japan. we think there are opportunities throughout the emerging markets. yvonne: when you talk about a developed market bombshell like
glencore, caterpillar, alcoa splitting into two companies, does that give you concern about what is underlying global growth right now? events nothing those cause concern relative to local growth. we certainly see a slowing in china and emerging markets. , perhaps recovery picking up momentum in japan. in the u.s., i think the market was not expecting the rate bump in september, which is clearly delayed. yvonne: do you think december? the think before the end of year is the consensus, but it signals a slower and more steady rise to raise. we think that can be constructive and should be encouraging. suggests that,y even in the early stages of a said rise, that equities can perform well. yvonne: you are focusing more
undeveloped markets. should we expect a letter correction, especially in the u.s., where we have seen profits have peace a little bit? are prepared for the correction or adjustment in the near term, but we need to keep the longer-term growth and goals and objectives that most investors have. most investors have a long-term market cycle and this is a good opportunity to be looking at your portfolio, allocation, rebalancing effectively and setting a long-term strategy. we do not want our clients to live day-to-day. we like them focused on the top of the screen. your boss, jamie dimon talked about this overnight, about this speedbump we are seeing in china. are you bullish on china? you launched this scheme just a couple of months ago. what has the response been after what we saw in august? to be an early
participant in the mutual recognition scheme. we have great investment capabilities through our partner relationship in china that we are looking to bring to hong kong and vice versa. long-term, we remain very constructive on china. volatility here is that is to be expected in an emerging market and developing market. , think a lot of the reforms mutual recognition ones, are constructive to the long-term capital markets and the future. and we see this place of amazing opportunity. there is a question slowing in china overall and it is certainly more severe in the industrial sector. i am not so convinced that we are taking off the level of service sector growth in china. speaking to bankers and other people in the market, they are seeing a lot in technology, domestic tourism, as well as foreign tourism, growth in the
china market. i am not sure things are as weak as some predict, but certainly a slump. yvonne: they always talk about oldhina -- two chinas, an and a new. let's talk about japan. you are overweight in japan equities. is that one of the few bright spots that we see in global equities right now is jim -- right now? does it give you concern that there are no mentions of monetary policy? we like to see more of the corporate and structural reforms in japan that started. there are questions about how aggressive and how fast those reforms can happen. we have this deflationary pressure still in japan. last month, prices were actually down so slightly. the first time in several months. it is unfortunate because i
think there is a lot of very constructive action taken to inflate or at some level of inflation to the japanese economy. you have these headwinds of commodity prices, energy, that have suddenly got very cheap on a relative basis. normally, i would consider those types of deflationary pressures helped the economy. in japan, it is really just not necessarily helping the cause in the short-term. yvonne: that is a question of how they can weather china's slowdown. a lot of people expect further depreciation, which really did spark this huge selloff in august. do you see it continuing further? >> i would not single out the yen. when rates come up in the u.s., we will see a little bit of pressure. to see a lot of that has been played out the last 4-6 months. currency cycles can be long and
deep. we will see what happens again. it goes back to the comment that i made earlier about the need to be diversified and that is across asset classes. yvonne: let's talk about this panel next week about retirement and how investors can be prepared given the volatility we have in the markets. in asia, how are people dealing with this? it discusses retirement mostly in the u.s. market and here in asia-pacific, the responsibility for the last year, learning. it is fascinating because the journey for self-directed and self-finance retirement is just starting. it is different in japan. , taiwan, through china hong kong, singapore, elsewhere in the region, you start to see a recognition that the middle class is going to need to set
aside money to save. yvonne: many of these economies have aging populations that they have to deal with. >> and china is getting old before it gets rich. that is going to be a stress. a lot of these state systems were set up at a time when per capita incomes were still relatively low. public safety next were relatively large and percentage of replacement income was affordable because of the dynamics. with more older people and standards of living, the higher per capita consumption and incomes being higher, the pressure on the systems is greater. supplementedto be by private savings, just as we have seen in the u.s. and europe. look forward to hearing that discussion next week. thank you so much for joining us. and the bloomberg markets most influential summit for 2015 happens next tuesday. mark that on your calendars.
an event in new york, london, and hong kong in conjunction with the 50 most influential list, that brings together bankers, policymakers, economist, and money managers on their perspective for the upcoming year. plunged the most on record in hong kong. shares right now down 27%. the company struggling with debt , falling commodity prices, and china's economic slowdown. let's get more with david stringer in melbourne now. why is glencore being hit so badly today? of course, earlier this month, glencore announced a debt reduction plan. eliminate about a third of its debt. that was seen as a plan that could maybe sooth investorse' fears. concerns over their ability to
withstand the commodity price rout. withstand any further price fall given what we have seen with china's faltering growth. it looks like that plan has not been enough to assuage some investors' fears. all of this was kind of underscored on monday. out thathad a note suggest the equity holders of glencore could be left with very little value if there are further falls in commodity prices. yvonne: is there any sign to an end of the rout in commodity prices now? >> we saw last night the bloomberg commodity index tracks about 22 roman numeral. that fell again on monday to a 16-year low last month. the outlook looks pretty grim. we have had warnings from companies like bhp billiton. they say the problem is not just faltering chinese growth, it is the fact that there is oversupply in many metals and
commodity markets. those two things have come together to press prices. it could take a long time for those factors to work through and for supply to come off. in the short term, there does not appear to be any positive news for the mining sector. david, thank you so much. coming up next, we will hear from an i.t. software maker that is seeing sales growth of more than 80% in some markets. ♪
months. nasa says they have evidence of wet soil. india has taken another step to becoming a major player in the lucrative space market, launching an observatory. last year, india joined an elite club by sending an orbiter to mars. a defiant fifa president says he has done nothing wrong and will not stand down after switzerland opened an investigation into other soccer officials. he says they are cooperating fully with the inquiry into the suspected criminal mismanagement and misappropriation. it could also derail a run for the fee for presidency -- the fifa presidency. zimbabwean hunter that let the expedition that killed settle the line has asked for his charges to be thrown out of
court. he argues that the charges are unclear and not a criminal offense. .e denies any wrongdoing ecil wasold settle -- c distinctive for his black mane. we are living in the age of the data. a time when the volume, velocity, and variety of digital i-formation is growing exponentially each year. my next gets company is on a tosion to deliver products people and businesses to visualize and understand the ever expanding mass of data they need to deal with. vice president of the eaua-pacific of tabl software. thank you for joining us. appreciate your time on the show. a lot of opportunities happening for you guys in asia. tell us about the company and
how everything works. >> good morning. thank you for having me on bloomberg to talk to you about tableau. for the benefit of viewers, let me give you a quick overview. tableau helps people see and understand data. we have over 32,000 customers worldwide, ranging from big corporations to governments to financial institutions to educational institutions to small businesses. we have been in the region since 2012. we believe that people and organizations have the potential to unleash greater innovation with the use of data. and visualast, easy, data so that they can harness it themselves for innovation. yvonne: talk about your growth in asia. it seems that there are a lot of opportunities ahead. we have all these cities that
want to develop into smart cities. there is cloud, mobile now. how are those trends driving your business? >> you are right. you can see the dominant trends in the region, mobile, cloud, social media, smart cities. there are tremendous opportunities to help organizations make sense of all of this. we believe that, with the power of fast and visual data analysis, we can help them be innovative and productive. we have seen great momentum in the region, people wanting to see and understand data. a recognize that tableau can help them be more productive and innovative. across the region, we have about 3000 customers. easyink that the fast, visual analysis on the huge volume of data is increasing by the day. yvonne: it seems like it does help develop a business as well.
some of your clients -- i know one, the is one big texas rangers, along with financial institutions. give us some examples. how does this all work? smart cities.ed transportation is an issue in singapore. how do you cope with an ever-growing population and moving from place to place? launch a massive data program to look at travel patterns and bus service. they are able to reduce waiting times and bus conjectured -- congestion by 60%. , ayou look at education business school uses tableau in its business course. wouldto tableau, teachers tell us that the teaching is very theoretical and students have a hard time.
we believe, in the next generation, professionals will be more comfortable and provision with data. -- and proficient with data. that is driving our expansion. we recently added teams in australia and japan. we just launched in china. we will be announcing a new and expanded office in singapore. yvonne: that launch on october 1. appreciate your time on the show here today. thank you so much. tableau software asia-pacific vice president. coming up next, the third time was not a charm for india. but will a fourth rate cut do the trick? we will be live for details on the interest rate decision, next. ♪
rate decision and a few hours. economists expect a cut for the fourth time this year. let's pass it over live to bloomberg tv india. cut is likelynt to happen. rajan is juggling inflation targets with political interestto slash rates. 42 out of 52 economists expect a rate cut. it is the rate at which the reserve bank of india lends funds to banks. a consistent downward trend in recent months. the u.s. federal reserve has given a bit of breathing space to try to act on the right front. -- rate front.
is from the finance minister and the chief economic adviser, who said that the time is just right for a rate cut. most likely, he is eating the calls for ading the bigger dose of rate cuts. a monsoon and the impact it will have on food prices. food makes up nearly 50% of the basket. this should not lead the rbs to gamble. there is a possibility of consumer inflation accelerating going forward. r.b.i.etter that the chooses to take the plunge sooner rather than later as the global financial markets may be in the grip of panic when they federal reserve finally decides to hike rates.
al: i am al hunt. john: john heilemann. and with all due respect, life on mars isn't going to come down here. we are going to build the most readable while stacy you have ever seen. -- beautiful wall in space you have ever seen. john: happy national drink beer day sports fans. my favorite day of the year. i am absolutely serious. so are barack obama and vladimir putin. totally serious, that is. here is a picture of them clinking glasses at the u.n. sure, it is not beer, but everyone knows it is impossible to get through the u.n. without a buzz.