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tv   Trending Business  Bloomberg  October 26, 2015 10:00pm-11:01pm EDT

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opening the doors of its new $3 billion casino. more to boost the city's fortune. let us know what you think of our top stories. follow me on twitter. the indonesian trading day is beginning. a lackluster session on wall street here. >> certainly indonesia beginning this day and a lot of news. not just the fires, which have intensified. to thes according president that indonesia has joined the transpacific partnership. to the u.s. has been fires.let's these get you indication of what is moving here as we look at the composite starting this day lower by 6/10
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of 1%. these are your movers and the agent equity markets today. howill give you a sense of the energy industry there and the financial related shares will be moving and just a little later in the program. this decline in indonesia today consistent with the drop across the asia-pacific. now 30 minutes into the trading day. -- they are dropping as well. check out some of the casino names. stands china following. airwayst cathay pacific dropping 1.2%. we may have news on their development with the airline. let's take a look at what's
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happening in japan. one moving significantly is sharp, falling to a record low today. the shares moving in the tokyo sessions as the slowdown in china impacts its display potential. sharp shares now down three quarters of 1%. in the past two days, this has been the move on a precipitous drop. a lot happening today. rishaad: a slice of history today with a new entertainment complex. $3 billion role of the dice and david is there for us today. ?hat about the timing the casinos have been really taken a hit in the last 18 months or so.
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>> you are never going to get it 100% right, especially for a project this big. there always be a gap between when you plan and when you find a lead lunch. if he knewterday four years ago the downturn would be this bad, what he had changed anything? he said no, it's all about the project -- product and this is the type of product you want to have when it comes to gambling. nowre walking around throughout this retail space which is meant to make you feel a cure walking through times square. -- feel like you are walking through times square. the analysts asking will the money they are making here make up for the money they are not making in thre ere? >> ultimately, casino gaming
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will be the financial engine. without that component, we would not be able to build this amazing stuff. day, long of the gaming is not going to be able to generate the cash flow we need. at the same time, we are proud of it and i think the future is going to want more than just gaming. of course just for this group, they are targeting a 20% return. as far as the short-term outlook, he is basically seeing flatish growth. rishaad: is there anything else these casino operators want from the governor? want to have more tables, i am sure. >> that is one thing that certainly affected their
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projections. hand, he also told me they want the government to speed up infrastructure projects because there's a bottom coming in from their biggest cost in china. it's also about diversifying what you have on offer here. we spoke to the executive director of holdings and listen to how she phrased what they want from the government. opinion, it's such a small city. without gambling, it's impossible to survive. but how can the gaming industry bring success and development to other industries? this is something we need to put more effort into. course, this complex is opening its doors to the public today and we will see just how much people come in and how much they will spend because ultimately, it's really all about that. rishaad: thank you.
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let's have a look at prospects in light of the gambling downturn. in.k you for coming is this a game changer? is this an integrated result -- resort or just another casino? >> it is another big casino. i think it's a big casino but at the same time, they have a lot of offerings other than just casino floors. they have the house of magic. i think people are looking forward to this project. people think this project can make a difference. at least that's what investors are thinking about. rishaad: you can build these integrated resorts, these extra facilities, but is the mindset there for people to look at this or a gamingg hub hub? how do you change that mindset? macau.u is
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the average stay is 1.1 days. if you look elsewhere, for integrated resorts, people stay for longer. people still think this is a gambling hub. in the next 10 years, things will change but not in the next 2-3 years. rishaad: how about the location? in the future, he will have mgm, the palace. in the future, this will be the hub for the future of gambling. rishaad: does this change the trajectory when it comes to the gambling business here either for the mass market or vip? think you will change the vip side. this year, you see the ip done 41% today.
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-- vip down 41% today. i think he will see more decline -- you will see more decline. a mass-market can be buried different. mass-market -- be very different. is it changing? have we gotten over the worst when it comes to gaming and gambling? >> yes. looking at next year, the forecast is only 1% growth. it probably has are ready bought some back. rishaad: the comparatives look better through the course of this year. last year was the big dive. >> yes. today, down 36%. in two 2016, i don't think there's a chance of seeing that number again. who is well placed?
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who are the ones you like? >> i like stands china. sands china. we like mass-market much better than the ip. -- vip. if you look at the new table allocations, 250 tables. rishaad: is that enough? they wanted 400. is really a demand problem. if you don't have demand coming, it doesn't matter how many tables you get. more tables you get, the more dilution and earnings. i think 250 is quite enough. if you had 400, it doesn't help that much. -- vips no the ip tables.
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macau is our least preferred name at the moment. it is exposed to vip, which we don't like. in this market, if you don't you demand coming back, you won't have better gearing. rishaad: what about the economic au right now?n mac a lot of them are pressuring government to do more to help the gambling industry? >> i think the government should do a bit more. roughly 73evenue is billion. have a surplus and they should spend more money to develop the infrastructure.
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is it's veryow hard to travel. if you want to stay for a few days, it's very hard for you to transit from casino to casino. rishaad: they like it that way, some people. they don't what you to leave their resort. >> tesla government has to do something. -- that is why government has to do something. and let them become an integrated resort or destination area for resorts. you need better infrastructure. macau isment, i think very crowded. hong kong is 30 times higher. if you look at the visitation in hong kong last year, 61 minutes. they need to improve their infrastructure. rishaad: thank you.
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you can find more on that story and view the rest of the day's news. ,ust go to our new digital destination. design up for alerts on the bloomberg mobile web and keep up date with the breaking news and nellis is. -- and analysis. we return in a couple minutes. ♪
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rishaad: the news coming as president joko widodo held talks with the white house and announced. neil joins us from the
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indonesian capital. how many of these deals are new? neil: $20 billion is a big number. many of them are not actually new. a compilation of deals we have seen announced this year but there are some interesting once. -- ones. the big one is to supply gas. indonesia is always a major -- already a major exporter of liquefied gas but demand is growing and there's opportunity there. of 500 million by coca-cola to expand its facilities here. it shows indonesia's consumer demand is already growing. and another main one is general electric. $1 billion across power, oil, gas, health care. those are critical areas that
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joko widodo is looking to get investments in. the energy sector with caterpillar looking to build renewable energy across some of the more mode islands in indonesia. many of those don't have coal. that's a very useful one. there is another one in eastern indonesia that wants to be 100% renewable within five years. rishaad: he got his trip short to meet the technology chief. does that mean no deal with the likes of google or apple? think the rest of his entourage it's still carrying on to san francisco so i would expect some announcements there. not major deals but i think they are interested in investing in indonesia and google is engulfed to increase
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internet access using balloons. it sounds pretty bizarre but it indonesiaood for where infrastructure is weak and there are a lot of small islands. that is the kind of thing that could spread internet here. ofarta is a major user facebook and is looking to get the rest of the country connected. rishaad: thank you. but only have a look at what is going on market wise in indonesia. let's look at the movers this morning. --as resident joko widodo president joko widodo said, let's take a look at how the market is reacting. the composite is lower across the asia-pacific, a 1% decline. 13,642, the level of the indonesian currency.
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let's check in on financials and the energy space. we know indonesia is a major player. down nearly 2% and other banking players we are maybank indonesia division coming up almost 1%. check out the energy names we are following. bloomy is unchanged. spot in a day of falling commodities. rishaad: thank you. but have a look at some of the other stories we're following for you. we have some mixed reviews on where china goes next. ahead of the fomc meeting, which starts later today, one person is hearing both sides of the story.
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he has heard contrasting these from two former central bank officials. peter hooper has argued china is successfully shifting its economy away from investments and has the resources to sustain growth. coin, other side of the china faces a severe problem with the adjustment and is at risk for falling into recession. the outlook for china's economy expected to be discussed at the two day meeting starting later today. up for itsaring first airline ipo in more than a decade. indigo hoping to raise $.5 billion. enter globe aviation will also in the price span. that values indigo at $4.2
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billion. 38%go has an impressive share of india's domestic air travel markets. in the past five years, its net profits grew at annual growth rates of 22.2%. china is the world's largest altruist and two online companies are joining forces which will see them control and overwhelming majority of the market. shares rallied in new york on a deal that could -- the company's control as much as 80% of china's hotel and air ticket markets. those are some of the stories we are watching today. next, a trading halt
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looking to -- ♪
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>> welcome back. at least 263 people known to have been killed in the most
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powerful earthquake to hit afghanistan in six decades. hit in magnitude quake the mountains of northern afghanistan and was felt across the border. rescuers say the tremor lasted 45 seconds and they expect a number of dead and wounded to rise. the u.s. navy has begun operation in waters around the islands. destroyer says the could sail within 12 nautical miles of artificial reefs. beijing responded by saying the u.s. should not create trouble in the area. the obama administration has previously said it will enforce the right of free navigation and what it sees as international waters. japan says at least one third of rescuers who helped move people after the nuclear disaster were exposed to radiation above safe
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limits. the government spoke to almost 3000 troops who were at the plant in march 2011. 62% of them were seen as acceptable doses. cancer has been linked to the disaster. rishaad: let's get the details from paul allen. >> it's not a huge surprise. the two have been talking for some time and earlier this month, signed an memorandum of understanding. the areas are reporting that nippon life will buy 80% of the insurance business for $1.8 billion. it fits with the theme they're getting back into the business
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of being a bank. we won't have to wait too long for closure. nab will make an announcement tomorrow on a material transaction. meanwhile, shares are in a trading halt. rishaad: thank you. paul allen in sydney. next, we are looking at one company, a carrier ready for takeoff. we're talking about indigo preparing to go public. debut --dd live to its we will head live to its debut right after this short break. ♪ buddy- nice place, nice car what happened?
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>> the bank has agreed to sell 8% of its life insurance business. it says it expects trading to be in place. an update on the transaction on wednesday. ab has not confirmed this. the deal would be worth around
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$1.8 billion. there have been talks at the white house confirming indonesia wants to join the trans pacific partnership trade deal with $20 billion worth of u.s. investment deals including a $13 billion pact on shale gas at a $1 billion ge investment nah indonesia's energy and health sectors. $3.2 billion resort open for business in macau today the hollywood themed venue featuring 250 gaming tables and 1600 hotel rooms. to families ring and nongambling visitors with a batman themed ride and a figure 8 ferris wheel as well. let's look at the markets across the asia pacific. tokyo is closing up for an hour thereabouts but the global rally is up just at the moment just running out of steam a
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bit. >> that's certainly right. you see maybe some profit taking. investors waiting on the sidelines to use a frequently used term ahead of the federal reserve meeting and the bank of japan later this week both central bank meetings critical as the fomc decides whether to keep its current monetary policy in place or to raise interest rates or whether japan will indeed add to its monetary stimulus. take a look at what's happening. new zealand the only market advancing right now and that is probably because new zealand was closed yesterday. you see investors playing catch up. the regional benchmark was up yesterday. right now it is down by 0.6%. shares in shanghai moving right now sharply lower. check it out. 2.25 of 1%. the move on the market a dramatic fall at this hour despite the fact that industrial profits for the month of september came in generally better than expected and far better than august. that's a bright indication, strong signal. we know the people's bank of china and the government will do what is necessary to prop up
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flagging market and certainly the economy. interesting to see this sell off and perhaps what it is related to. elsewhere across the region outheast asia the trading date continuing jakarta online for 30 minutes. shares moving in the indonesian market. the president of indonesia is with president obama at the white house saying indonesia intends to join the trans pacific trade partnership. these are your movers on the move from indonesia. with that, back to you. >> india's largest airline by market share is launching its ipo today in what is set to become industry why's biggest offering in more than three years. bloomberg tv's guest now joins us from mumbai. how much money does indigo here plan to raise? >> this is india's biggest airline and plans to raise about $462 million. let's get you more numbers. it wants to, is offering on
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sale nearly 23 million shares, rupees per 60 share. at the top end of the price bent this values the company that's indigo aviation at nearly $14.2 billion. this is the first time we're seeing such a large ipo hit the market since september, 2012. what is indigo betting on? two things. one, rising domestic passenger traffic. experts say it is going to jump anywhere from the current 17 million almost four times to nearly 300 million in the next five years. the other fact is indigo has been extremely profitable, growing market share, controlling 30% of the market share, and is betting big on a lot of people flying quickly and also the fact it has become profitable. >> absolutely. and now indigo is, and i was
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amazed by this, india's biggest airline. hat's worked for this company? >> low fares. the fact of the matter is indigo was among the first few -- it's hat actually a peculiar situation. you've got the need to survive and you have an airline like indigo for the last 10 years that has become india's biggest and also making money and the market to raise more money to expand its fleat to cut debt by one-third. remember, in august this year an so, you know, placed order of 250 a-320's. this underscores indigo's market and it is a situation where you're actually going to explode by nearly four times.
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>> that's what the hope is. of course indigo wants to be art of that. >> a rollercoaster ride since the ipo last year. there are signs the worries may be over. once they reached the market cap which was higher than that of facebook but since then, well, $150 billion just wiped away. however, there are signs that the worst may be over. i should say it was worth more than facebook's current value >> and now shrunk to like the size of ibm which is remarkable. with this focus on data
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technology, overseas beyond china. they are expecting better results for the third quarter. if there is anything we learned about the alibaba stock the last year, it is no longer a sure thing. it isn't the can't miss thing. this initial euphoria we saw couple days. >> this is very interesting. you showed me earlier. it is sensitive to what's happening in china and with the chinese economic growth. >> right. we've seen market volatility for the past year. we've seen falling data. currency devaluation as well. the china slowdown when you talk about 28% of revenue that comes from china for alibaba it is very sensitive to what we see in the stock. as you see catapulted to $240 billion in market cap the initial few months of the ipo now plummeted 144 billion. it was the big et destructor of shareholder wegget during that
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period. let's talk about the past month. we've seen a rally of 33% since that crash we saw on september 29. >> there we go. thanks a lot for that. we'll check on some of the other stories we're following today. having a look at the biggest u.s. bank looking to expand its wholesale operations in india talking j.p. morgan in talks with the reserve bank of india over licenses to open new branches aimed at servicing its corporate clients. at the moment j.p. morgan's global corporate banking division only has one indian branch. it's in mumbai. it hopes to open new wholesale outlets in other cities next year. china, japan, and south korea will discuss a free trade agreement in their first tri lateral summit in three years. they are traveling to seoul for sunday's meeting. li's visit will be the first by a chinese premier in five years. he and abe and president park are expected to discuss education and the environment. japan has raised nearly $12 billion as its mail service
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goes public with japan post shares priced at the top end of the marketed range. a three prong listing which includes the banking and insurance divisions will be the biggest since alibaba debuted last year almost 80% of the shares being sold to individuals all under the prime minister's plans to get households to invest more of their savings. they start trading on november 4. dwetting back to one of our top stories at the opening of studio city, in macau, the owners hoping the resort will lure families and nongambling visitors with attractions such as a batman themed ride and a figure 8 ferris wheel. however, gaming tables will still be the company's inancial engine, they say.
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well, clearly, we have an audio issue. we'll go to a break and see what we can bring you afterwards and see what lawrence has to say about the future of gaming. also a look at thailand and how it's become a top destination. gender reassignment. special report up next. ♪
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>> welcome back. these are the stories making headlines around the world. american forces will order the ir strike on the hospital in kunduz. it was thought it was under taliban control. the associated press has also learned the green berets as doctors if the militants were there and the answer was no. at least 30 people died in the attack on october 3 and the news as to questions whether the bombing violated
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international law. the so-called islamic state says it carried out a suicide bombing at a mosque in southern saudi arabia. two worshipers died and 20 sikhs were wounded when a man blew himself up after evening prayers. the militant group says the target was mainly shiite. attacks inside saudi arabia and --.n free japan has approved the restart of a third nuclear reactor shut down since the disaster at fukushima the number 3 reactor is about 320 kilometers southwest of osaka. it is likely to come back online next march following final inspections. cushy electric has already restarted two reactors under new safety rules imposed following the 2011 earthquake and tsunami. >> media attention on caitlyn
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jenner and cher bono -- chaz bono as there has been a boom in gender reassignment operations, insurance companies beginning to acknowledge the medical necessity of surgery. thailand has become the most popular destination. we'll get more from our bloomberg news editor in a moment but first the story of an 18-year-old transgender woman and the doctor who made the sex change a booming business. [speaking in foreign language] [speaking in other language]
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in transgender surgery in thailand. t started in 1978. [speaking in other language] >> number one, very cheap in thailand. number two, good results. umber three, good hospitality. and they can have --. > yes.
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jason gale editor wrote emy's story. what is driving the demand for surgery? >> hi. well all around the world gender clinics are reporting about a doubling of patients coming to the clinics every five years and they -- the psychiatrists and medical professionals that we spoke with point to a number of reasons for the increase in demand as the internet, the fact that more people are able to get information and support and to join communities online. there are also legal changes, the fact that laws are now in place to protect people against
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discrimination. then there are also the social aspects, the fact that with people like caitlyn jenner and chaz bono coming out, people are able to recognize that there are celebrities, scientists, judges, all kinds of people in the community who are transgender. that's yee roding some of the prejudices and stigma that have kept people in the closet really over the last five years. we're seeing a lot more people coming out looking for treatment, rich. >> just very quickly, you observed an observation in bangkok. tell us a quick bit about that. >> yeah. it was an eye opening surgery. the doctor does a two-hour peration in his clinic under local anesthetic with sedation and he claims to be one of the cheapest around at around $3,000 u.s. >> thank you very much. jason gale joining us from
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sydney. now we'll take a break but on the other side all glitz and glamour in social media today. we'll tell you who's getting a red carpet reception. trending business continues right after this short break. ♪
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>> this is "trending business." getting back to one of our top stories, the opening of studio city in macau. its owners hope the resort will lure families and nongambling visitors and will have attractions such as a batman theme ride and figure of 8 ferris wheel. however, the chairman and c.e.o. told us the gaming tables will still be the financial engine. >> we're extremely proud of the entertainment proposition that we're delivering. it probably has more nongaming attractions than the rest of the integrated resorts and
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hotels in all of macau combined but at the same time macau is always going to be shall the revenue we generate from gaming is always going to be much, much higher. therefore, you know, for us it's important to, one, follow in the foot steps of what the government wants. t takes -- as a point of differential, so as similar as to say y we always like macau entertainment is as much an entertainment company as a gaming company but ultimately casino gaming is the financial engine. without that component we wouldn't be able to avoid this amazing, fantastic stuff because at the end of the day nongaming is just not going to be able to generate the cash flow. >> you mentioned you did take all the boxes yet you only got 250 tables out of the 400 you wanted. what does that signal to you? >> given the table cap environment and the annual growth rate environment for table cap we're, you know,
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happy with 250 because there could be much worst scenarios. >> how material was the impact on your projections getting 250? >> a significant impact in terms of the financial model we were looking at. you know, at least two, three years ago. but at the same time we built these properties for 20 years down the road. and we're very confident that given the, what we're offering here and the fact that it is so different, that it's going to be a success. so the key is really to engage with all lenders -- with our lenders to find a resolution. i think on one hand it relates to the overall downturn in the market and on the other hand it is no secret that, you know, we had 400 tables in our bank covenants so with 250 tables vs. 400 tables there is certainly a gap. and so with that gap we do need to engage with our banks. >> is there anything else as a businessman you would like to
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see from the macau government that would make you more comfortable in betting your money further here? >> i think infrastructure support is the key because right now macau gets about 31 million visitors a year. i think the hotel room supply is there. there's a buildup of hotel inventory that can accommodate more people. and the real bottleneck right now is -- and most of the, you know, networks in terms of train networks, are already done in china. so it's really the bottleneck getting into macau because it is understandable. if you are somebody traveling from mainland china or, say, you know, northern china or even, you know, beijing, and there are only a selected number of flights to macau every day. if you go through hong kong and then take the ferry over and then wait at immigration for two hours on the ferry it is equivalent to going to perth. >> i mean, there were previously concerns over visa restrictions.
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you have the smoking ban. are theas things obviously not helpful but do you think they were necessary? >> well, you know, again, we support the government in terms of their initiatives. you know, i think smoking ban or, you know, some sort of smoking control is a trend globally so we understand that. but at the same time given the revenue that the gaming industry contributes to the hope that and we doesn't -- in a way that doesn't affect our employees' health. employees' health is a key consideration and we totally support that. and so, you know, we think a good compromise is smoking lounges. i think the government is having a second look at it. it is kind of the best of both worlds. >> i'm curious. steve wynn was fairly vocal about a week and a half back about his frustrations with how certain things are conducted. do you share those same frustrations with him?
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>> i think ultimately in this environment, mcawe is a very closed society. and we just need to be respectful of the local government. sometimes their hands are tied as well. you know, they are -- there are different forces, unions and different views in terms of, you know, there are a lot of different single interest groups supporting different things that are very vocal with the government. i think for us of course on table allocation i think steve was very angry about table allocation. we've been just closely working with the government, understanding that they have the constraints of the table cap and the annual growth rate and, you know, i think all we can do is really be respectful nd continue to work with them. >> looking now at that story and indeed, something is trending on social media along with the release of, well, the atest iteration of james bond.
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>> it is the gala opening tonight of that casino in melco crown. i'm hoping david is going to wear those fancy socks. >> yes. those polka dots. marroquin -- mariah carey would like those. you have a lot of pop stores there, and we talk about features, they say this is possibly the game changer that could really turn around the industry. you'd have this figure 8 ferris wheel, the look of a meteor that hit the hotel. >> they're trying to get families in. >> there's a batman ride. a lot is going on as well. some people see this with some optimism. a luxury hotel like this is a boost to tourism and a sign of confidence. of course we won't be able to assess its operations until 6-12k months' time. interesting to see. >> and the james bond premiere launched last night.
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very exciting. a lot of exciting things happening on social media. >> thanks, guys. that's it for "trending business." stay tuned. it is "asia edge" and we'll recap the big stories of the day so far.
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mark: i'm mark halperin. john: and i'm john heilemann. and with all due respect to chris christie, we promise to keep it down tonight. ♪ john: ssh. two big happy birthdays today. thomas "tip"leader , johnson and hillary clinton. and what better way for the latter to celebrate her 68th than topping our rundown tonight?


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