tv Trending Business Bloomberg September 29, 2015 10:00pm-11:01pm EDT
shareholder responsibility. be's pledge. the japanese prime minister is guest of honor at bloomberg's headquarters. let us know what you think of the top story on twitter. here is the hashtag. ors comes by the last day rally. reporter: how much brighter picture in asia. asia still in in the red. trading day of the quarter. not a great one for investors. the asia-pacific index closing at its lowest level since 2012. but overnight, risk sentiment
stabilized. japan and also a story which was hit hard yesterday by the route inequities. the index looking a lot greener than yesterday. we are focused on the chinese automakers. trying toe auto tax, boost sales of cars and moving into more green tech knowledge he created great wall motor, listed in shanghai and on the market here in hong kong. shares up by 17.5%. uid has also received an a trade, doing very well. readaic motor, up to credit suisse upgrading the stock. a good pickup in the auto industry in china. thank you so much.
let's talk about the car stocks. moving faster than first gear. cut, in aunced the sales tax for autos after deliveries fell for the fifth consecutive month. let's go to david ingles. >david: it is the argument when it comes for fiscal policy. is it better to spend the money or put it in the pocket of consumers. i will get you the details in a moment. going a long way to help match the cars that the industry in general which had been in decline. she points out some of the stocks. this industry will benefit the most. great wall, credit suisse reason that one. some of these other names.
watch out for the likes of forms, gm later on. said, what is the tax cut like? slashing the purchase for cars with engines smaller than 1.6 liters. it is good news if you are already in the market looking to buy a car. bad news if you bought your car. it is not the biggest of cuts but it will go a long way to sales insecond car china. the majority of the market, taking a look at some of the colleagues, the majority of the market, small engine cars. hires of the cheaper models. they are more price sensitive than those with deeper pockets. the 5% cut may be enough to make
the first car purchase or replacing the first car affordable. have a look at the decline in car sales. the car lobby has asked the government for more measures to stem the decline, one of which is -- we had a tax. it is accelerating replacement of old cars. this is over 10 years. the growth and decline. down 3.4%. this was part of the china fiscal push back then. we are operating at a higher base. a quick look over the past six months. that is how it looks. the change from the previous year. 6.7% drop. 3.4% drop in june, which coincided with a stock market china which had some people connecting the dots.
shareholderseba gathering for the first time since the accounting scandal and they are expecting the company to deliver on promises of restructuring. grace wang joins us from tokyo. what can we expect? actually, the meeting has started for about an hour. at the beginning of the meeting, the president has made an apology for not being able to diverge dividends and bring down the share price. we are expecting from this there will be an appointment for a new board outsideincluding seven for members. we are also expecting the lets outsidet
board members lead the board. be an organizational change to toshiba. the corporate culture. side, there are more expectations to be aggressive in the reform or restructure. going forward, he has promised to make a restructure to the company. maybe jobre expecting cuts be done in nonprofit businesses such as television, home appliances, and the pc business. toshiba has also announced a commitment for ¥400 billion.
toshiba did not specify what they would use the money for. they only said this is for future uncertainty needs. analysts are guesting it might refer to future restructuring such as cutting jobs. also for maybe -- toshiba is listed not only in japan but also the u.s. and overseas markets. we don't know where there were finesther there will be for those markets. it is seen as preparation for the future. yvonne: this credit line nearly double what they had before. we will see if that helps. thanks so much, grace. but take a look at some of the other stories we are watching. here is shery. shares surged in london and new york, after the company said they can withstand
current market conditions. this recouped some of the huge losses from the previous day. we are told the meeting will be held by barclays in london and the management plans a large meeting. they said the solvency is not at risk. they announced a $10 billion debt reduction plan. as the chinese economic slowdown hammers commodity prices. sources tell us bank of america is cutting dozens of jobs across its trading and banking divisions amid declining trading revenue. the ceo said third-quarter revenue from the business declined about 5%.
sluggish markets ran down result. a drop of that magnitude would bring trading revenue to $3.3 billion for the quarter. citigroup and j.p. morgan chase also declined a drop for the business. wall street firms have been cutting jobs. we are hearing barclays is also a limiting positions. iminating positions. japan's prime minister said he wanted to build a new system where ceos and other board members are transparently selected. has contracted in four of the 10 quarters under abe's administration.
he announced new arrows to his economic plan. since he took office in december, 2012, a massive monetary stimulus and fiscal stimulus have failed to shore up inflation which fell into the negative for the first time since april, 2013. back to you. later in theg up show, changing times read a look at how focusing on innovation may keep watchmakers keep on ticking. the final cut, or where the==== bankll the indian central ease a sputtering economy? more ahead. ♪
surprise 50 points. the biggest cut points. my guest says india well remain on hold for some time despite a fragile coverage. in our guest joins us from singapore. great to have you on the show. the governor love that the surprise. he's prized all of us with this big cut. -- he surprised us all with this big cut. guest: what he rightly pointed out was conditions have changed. of them in favor putting through more stimulus. he pointed out some of the external risks including china. and inflation has not been much of a threat. has been contained. to top that off, the banks are hesitant to push through some of
the rate cuts. front loadingrm some of the cuts. especially when conditions allow him to. we are seeing a fed rate hike, possibly in the cards this year. say he might cut it at more in march. why is that? this is how we look at it. we are looking at the governor, what he is really targeting for. price stability and for that to get entrenched. he has also given clues, saying he wants to look at real interest rate between 1.5% and 2%. inflation is bottoming now, and it will pick up with the food places, there will be less room for him to cut rates.
i think he will not recant on the price stability or the importance of it. he will want to hold rates rather than cut immaturely. yvonne: you did talk about this transmission to ranks -- transition to banks. despite the incomplete transmission, he wasn't willing to wait. ill we see nonperforming loans be the corporate? these new: -- vishnu: it will take some time for the rate cuts to go through. he is to work with them rather thatcut them in the hope
they would. he has done what he needs to. he needs to work with the banking sector and see how they can best alleviate. you are right pointing out the dead burden might see banks looking more hesitant. is interesting to ask your perspective. -- not ative is the lot of people have mortgages or borrow from banks in india? these new vishnu: that is a good point. that is why the transmission of these cuts are not coming through as well as they might. one thing he could possibly do, loosen the quiddity in india. liquidity in india.
for now, the transmission mechanism, the effectiveness is 70%.en 40 and talk about's inflation. what is your projection for inflation now given the fact that the rout in commodities will not see an end. and may your outlook for the rupee as well. >> i will handle the inflation part first. mostrms of disinflation, of the disinflation for oil has been coming through. in terms of the prices, the prices remain low. the disinflation affect will begin to win. begin,flation could
five-6% which is what the r.b.i. is looking for in terms of consumer inflation. major --l not be unless things happen on the commodity side. therupee, we are looking at rupee losing ground initially despite low oil prices. it will be more influenced by the rout of funds from emerging markets. we are looking at the rupee strengthening gradually in 2016. it will target 62 against the dollar by the end of the year. right now, we are looking at 58. yvonne: some initial downward pressure for the currency. the governor did announce as well, relaxing curbs on the foreign ownership debt.
how significant is this? especially in terms of stopping these capital outflows? vishnu: the big idea is to make sure there is not over reliance on the banking sector. it should be good. in the near term, sentiments could hamper progress. this is a medium to long-term initiative. joining us from singapore, the senior economist. thank you so much. storieske a look at making headlines. a muslims returning from their pilgrimage have criticized saudi arabia's handling of the disaster. more than 1000 people died at an cap, more than the official
number according to some. president attacked saudi arabia for their mismanagement. rejected thehas accusations, saying tehran has been playing politics. many were injured by flying debris or involved in traffic accidents as winds gusting above 200 kilometers per hour uprooted trees and triggered landslides. more than 12,000 people were evacuated. more than once of nevada thousand homes were left without power. 175,000 homes were left without power. jack warner was described as a key player in schemes involving the offer. a recipient of payments. deniesmer fifa
iconic brand into a separate company. walkmans will be part of the new unit. as have also been sidelined the ceo scales back on consumer electronics to focus on profitable playstation games and movies. latesthas released the challenge to the iphone. two nexus phones. they come with a sensor, a boostedsystem, and battery like to read it starts at $499. the smaller at three some nine dollars. -- $379. let's go back with a look at what is trending on social media. edward snowden, was a blower, trending on social media. making waves. he just joined twitter and now
has an account. his biography section says, i used to work for the government. now he works for the people. formerollowing his employer at the national security agency. jokes buzzing that he does not even follow his own girlfriend. he already has more than 740,000 followers. the nsa, just over 95,000. he seems to be enjoying himself. he just had a conversation with tyson.hysicist on welcomings him him to twitter. tyson continues the conversation.
snowden said, i'm just a city with a voice. -- citizen with a voice. twitter said they gave him the username. hosted otherost controversial figures. let's take a look at the markets. hong kong, and china looking like this. taking ae glencore rebound as well. let's go over to southeast asia. trying to figure out the philippines stock exchange. said to be opening an hour later. ♪
great wall motors jumped 18% in hong kong. electronic yvonne: and toshiba has announced a new credit line for the next two years. a scandal reduced their fromously reported income march 2009 to the start of this year. the company is holding an extraordinary shareholders meeting outside of tokyo this morning. thats been a quarter investors might want to forget about. buying, weng some are looking at the markets, a nice pickup and carmakers today. ofthat is really one part the picture of the positive sentiment we are seeing. we are looking at some good
buying, getting to the details in a moment. he didn't start trading when in normally does, we just had straight off the press from the philippines saying it will open in the next five minutes. no reason given for the trading delay, but it does say that it markets will and be working in the next few minutes. and india, which benefited from the rate cut, we are looking at a pickup in most markets apart from taiwan and korea. taiwan and korea are playing catch up to the big selloff we saw in the asian region. this is certainly coming back from the gain. up by 2% heading into a lunch break yesterday. yesterday, we saw not one stock on the 225 into the black. good news from australia. they fell heavily yesterday, dragged down by the hp.
here are a couple of the markets -- the stocks we are focusing on. each -- h shares, the auto industry raised. this is helping automakers list -- l in china and hong kong. ift and it looks like japan tobacco falling the most in four years. that means $5 billion in cash. , it looks like it will be a good buy, analysts happy about that. they are getting rid of $5 billion cash today. and a nice comeback from the players in australia, that were hit hard yesterday. they are doing much better in hong kong. "what'd you miss?" doing -- yvonne: doing a lot better.
this is the trading session of the quarter, what age court -- what a quarter it has been. we need to assess the damage. david has been going to the numbers, talking about this $11 trillion value wiped out in equities. aged 25 years. june, thep in mind, latter part of the second quarter. that is when -- at the same time, we were between the greek , the bank holiday that decimated the colony, then the bailout. year today, i want to mention that shenzhen, i think we 530,ed out at 1200, 12 back down to about 17. in vietnam, we are talking about this yesterday. you take the average of what
strategists are penciling in, they see this as 642 is the average. south korea is flat. we will have a look at, within the equity space of best and worst places to have health care. that is typical. -- theensive sector rest, every single one, with the exception of health care trading load -- lower. i.t., a big part of why we had the decline in the top 30, that is because of this, every single commodity is down. that says it all. currencies -- yvonne: you are going to type about southeast asia? yes, for different reasons. it was a flight to safety into
the u.s. dollar, the yen. and that means, we talked about the yen that shows you how much damage has been elsewhere. we are talking about the indonesian currency, declines for those. i want to mention for the rin ggit, you see those credit default swaps in asia. 1990e: first quarter since seven. thank you for the wrap up. not a good outlook. .ut good things will get better we will stick with southeast asia. foreign investors selling out at the fastest pace on record. we will go to our correspondent in singapore. good morning, david talked about this, but what is behind the selloff? >> worsening economic outlook
for the region and the prospect of a rate hike in the u.s., this is fueling a massive drawdown from southeast asia at a record pace. $5 billion pulled out out of shares in the fourth quarter alone. take a look at southeast asia, the index on being cast slumping. one investor says that these three markets will see more outflows. plusis a commodity slump, the weaker currencies. investors are pulling money out. take a look at this. billion out of indonesia. the jci has dropped percent in that. time. streak -- for
thailand, $2.6 billion pulled out. it is not a pretty picture in southeast asia. yvonne: not a pretty picture indeed. is this the worst? what are analysts saying? >> it depends how much you are able to stomach. after being asia's best performer this year, its economy was resilient. it is protected from slow down, that is what strategists are saying. some are so just enough the vietnamese index will climb above its recent close, that would be the biggest for any quarter since 2014. remember as well that the vietnamese government has been adopting policies to drive growth, a rise in consumption posthey are lucky to
inflows for the 10th straight year. if that is not enough reason, the asian development bank expects vietnam to grow 6%. prey strong growth. if you are looking for a bright spot, amid all the gloom, vietnam could be it. yvonne: that is one to watch. from singapore, thank you. we will look at other stories. japan tobacco fell the most in four years after it says it is buying -- for $5 billion. it is picking up international rights of the american spirit division to offset stagnation at home. president of the company describes the deal as an index opportunity to strengthen sales growth and will be japan tobacco's biggest acquisition since 2007. more warning signs about hong kong's market is heading for , perhaps as much as
20%. home prices at the highest relative to shares of publicly traded developers in almost two decades. the property index has slumped 15% this quarter and is at its lowest compared to real estate .ince 1998 japan has ordered an industrywide investigation into diesel cars after vw cheated on emissions tests. they have demanded reports from toyota, moscow, and others by hamasd of this week, saying that all of their cars comply with regulations and hundreds of thousands of cars from vw are involved in the scandal. the board is holding a meeting today to consider a revamp. the auto industry, china has announced moves to bolster slowing car sales.
deliveries itself for a fifth consecutive month. our auto analyst is here right now. is this going to be effective instability fails? -- sales? >> the government has to turn 180 degrees, they instituted restrictions on new car registration, now they're trying to influence the industry. if you look at the last stimulus, sales went up 53% in the first year. 33% in the second year. will that repeat? we are unlikely to see that high rate of growth, but we will definitely see higher growth in the coming months. yvonne: what can auto industry expect in this five-year plan? >> even though they are
instituting the stimulus, trying to sell more cars, on the other hand they are trying to clean the environment. they missed the 2015 target by quite of bit, they only reached of one million ev's on the road, so i think that they will push it hard in the next five years to meet that target or exceed it. yvonne: talk about the recent target, and the there is a in china that there are not a lot of charging stations? >> consumers are hesitant to buy them, because it is not convenient to travel in them in china. what they can do in the public sector, ask the utility , government agencies, they can ask them to biological vehicles that are used -- electric vehicles that are used
during the day, so that they can be part at charging stations, public buses.mote those are the sectors that will help drivers. the public sectors of the public sector is a big sector in china. -- it been driving sales is up four times compared to last year. it is still very small. a half a percentage point of total sales. stocks we does the auto soar in china today. thank you so much. coming up next, out of time. can top watchmakers wingback win back sales- in asia. ♪
china is accused of come from rising academic freedom after a university rejected a pro-democracy law scholar. he was nominated by a , but he wasagency voted down as they said it would not work with the long-term interest of the university. he was part of the pro-democracy protests in hong kong. and the u.s. has launched an airstrike to recapture a city from the taliban. the taliban's biggest military victory was on monday since the u.s. invasion in 2001. the president there has promised that forces will retake kunduz. one hospital reported treating 171 wounded people, including 46 children.
the volcano in western mexico has been blasting ash and smoke more than a kilometer in the sky. it has been rumblings and july, blanketing nearby towns and forcing people to leave homes. this is most active volcano in mexico, directions have become more -- he ructions have become more frequent. and looking at watches, though bleeding -- the leading world watchmakers are displaying wares. -- pontchreau is here. last year, this is happening during occupy central, now they have concerns about the chinese economy, significant headwinds here, how easy demand faring -- how do you see demand faring? >> it is true we have challenging market conditions in hong kong.
we are looking at growing demons travelers, they are going to korea, japan. when it comes to europe, we have a growing number of chinese travelers in switzerland for our products. know, your company is known for their lives -- loud watches. what are some things you have been working on? >> at the fair, we are presenting some of our key innovations. fairis a brand that has a in geneva in january. wonders,atches and this is relating to skeletons, a concept that is associated with one of the iconic models d
dial.s, which is a they appear with a star as a skeleton competition. yvonne: i was going to ask you -- >> what you see behind the camera, sorry. yvonne: go ahead. herer example, you have one of our latest innovations, you can see them behind me. we are creating these associated approach, iteton can be for a lady or a man. it is very much associated to automatic skeleton models, which is one of the indications of our manufacturers based in geneva. yvonne: the market seeing a bit
exports.ess, a drop in we also have a disruptor possibly in the luxury timepiece industry which is the apple watch. thee do you see playing in industry now and is your company have the chance to jump into that as well? it is true. is industry in switzerland looking at more challenging conditions, however this is a niche brand. our products are handmade. we're the only manufactured in israel and has -- in switzerland has a geneva deal. and we have a couple of countries where the brand is not variable, korea for example.
that as a country we have opened three stores in, we were not in saudi arabia a few months ago, but now we have a store there. we will be moving to the u.s. in a couple of months in new york, los angeles and the next six months. the fact that asia is challenging us brings us to the position where we are rethinking our strategy to be much more involved. yvonne: i want to talk about tech, talk about the speed of these gadgets, how they evolve. many brands coming up with smart watches, does that pose a design challenge for you? watch isthe smart something we have followed with interest, however we are not in the same business. people who buy our products are people who are interested in wearing contemporary watches on
their wrists. you have the business of all these smart watches, which are functional, which he basically themaybe you are changing in a couple months, you have a new version, it is comic it. our business is different. it does not mean you have to choose between the two. we have people who are users of and however watch continuing to buy our products. yvonne: focusing on innovation. thank you for joining us. roger dubuis. coming up next, a report from west java. ♪
asia are at the center of the biggest dam construction in history. and west java was ordered to be flooded, forcing people out of their homes. we spoke to some of them. >> several villages will be affected by this project. and they will be affecting the villages that center their lives around harvesting. time this will be gone. knockingople mostly down houses and salvaging what they could. some people were going about their daily lives, some people -- their relatives,
unwilling to let them stay. this construction of a dam, when you're standing on top of it, down in the valley it is a solid piece of engineering. this is mostly to irrigate the land. it should improve rice fields, improve vegetable fields. it will be also putting on 2000 megawatts of electricity. so one person we met talked about the people affected by this project. ofwas facing the reality starting again with $2500 in his pocket. he said, i am not a rich man.
john: i'm john heilemann. mark: and i mark halperin. and with all due respect to edward snowden, welcome to the party. let us know when you are on snapchat. ♪ mark: on the show tonight, people not named donald trump. i'm sure we will find a way to squeeze him and. -- at some point. but first, the presidential races of had more bad days than good over the course of their campaigns. today, jeb bush tries to seize the initiative with a big speech on energy policy. he wants to make it easier to export crude oil, once the keystone pipeline approved, and