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tv   Trending Business  Bloomberg  November 4, 2015 9:30pm-10:01pm EST

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stevens said that while australia was halfway through a decline in mining investments, companies outside the resources industry have generated respectable growth and employment. the taiwanese and president says he intends to remain tainted the status quo with china. the first ever meeting between leaders of taiwan and china. they say it will set a precedent for future meetings. meeting, president xi jinping is in vietnam. the first visit and more than a decade. ofcomes against the backdrop relations strained by maritime disputes in the south china sea. john, what is the significance of this visit right now? 's visitdent xi jinping comes at a time when relations
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are at an extreme low. clashing claims and competing claims for territory, fishing grounds, drilling rights in the south china sea have escalated dramatically in the last two years. china placed an oil rig off the announce coast, which triggered violent clashes between the attorneys -- vietnamese boats and chinese boats. been violent anti-china riots in vietnam. the at concerned with china's efforts to reclaim reefs in the southsign a that in that china sea, creating artificial islands. rishaad: these countries have a having comeontext,
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to blows in the past. >> yes, they have. iny had a brief border war 1979. in in 1974, they had a clash effectively evicted vietnam from those islands. exacerbates historic animosity between the two countries, particularly on the side of the non-. chinese emperors for hundreds of years rolled the region, including vietnam, as their empire. noted that just 19% of the enemies hold favorable views of china. is -- doesat president xi jinping get out of this? >> president xi jinping is trying to woo the vietnamese
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leaders and public. i'm sure he will immunize -- ties,ize strong financial china is a strong trading partner, and i would not be surprised if there is economic assistance that he offers up. influenceso try to vietnam's politics. the government will be having a political transition next year during the party congress in which new leaders will be taking different positions, and the concern from china is that those in the government now who are more favorable to developing closer relations with the united states and our much more critical of china will gain even more power. the united states and vietnam have been inching closer in their diplomatic ties. there have been talks of even military cooperation. president obama could visit hanoi before the end of his term.
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so all of this unnerves china. study same time, that noted that 80% of the enemies hold favorable views of the nine states. will havexi jinping his work cut out for them as he launches a public relations campaign. rishaad: thank you very much. talking about president xi jinping, he is meeting the president of taiwan. the taiwanese leaders sang the -- and said the united states was notified about the meeting, but they were not instrumental in getting the two leaders together. the stock route in china. it is all but a distant memory. the markets having risen 20% since august lows.
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>> another day of gays on the shanghai composite. we are up 21% from those lows on august 26. the hang seng market looking good in hong kong, up like 2/10 of 1%. a big gain from japan tobacco, but we are seeing weakness from the shiva after it came through with its numbers. australia's market .nderperforming, down almost 1% that weaker oil price playing .nto the australian market let's look at some of the brokerage firms. a number of other stocks we are watching.
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takata down 23%. extending that to-day plunge. wasbiggest since takata listed on the exchange in japan in 2006. mitsubishi saying it may stop blocking those airbags as well. a great rally coming through on .he shanghai market now back in bold territory, so to speak. rishaad: china southern share price coming against a backdrop another high level figure and china, being invested over corruption allegations.
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the chairman accused of discipline violation. why are they going after this guy? this normally means corruption, don't they? >> this is part of the crackdown that president xi jinping has been following for three years now. after tigers and flies, as they say, and i would say this follow qualifies as more of a tiger, chairman of the largest airline in all of china. it seems like the crackdown is strengthening here. rishaad: what is the likely impact on the airline? >> there's probably not going to be that much of an impact. price is up and shanghai, barely down in hank on. he is the fifth senior director at this airline to be removed from office for corruption suspicions. it seems like the airline will
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power through this. rishaad: let's get away from this probe going on. about the this story big three chinese airlines getting together? we've seen a bit of this talk and other industries. how does this affect other prospects? >> if anything, this might improve the prospects. there has been talk of combining too outerations, may be of the big three, maybe all three. it's just really rumors. that perhaps removing this follow on this corruption investigation might be seen as getting the ducks in order for combining the airlines. rishaad: what about competition? >> this is not necessarily an economy that runs on open competition like in the west.
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these are state airlines, and combining them might make sense in terms of creating these national champions. rishaad: thank you very much. our aviation editor. some other stories we are following. away forill buy home $3.9 billion. premium to the close. acquisition would help it to compete with airbnb, others changing the dynamics of travel. it was shot of some estimates. starting to collect royalties for smart phones sold in china. qualcomm accused of tough negotiating tactics. half of its than operating income from licensing its mobile technology.
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find after an inquiry into sanctions file asians. from 1999-2000 six, employees discussed using what they called tricks to move money in and out of iran, libya, syria, and miramar. nontransparent methods on more than 70,000 transactions. the settlement will see six employees sacked. let's look at honda. estimatess did missed come down 2%. high expenses and slumping demand. posted 12 straight months of declining domestic deliveries after last year. honda does see a brighter picture in the u.s.. that is where sales are searching. insite. investment
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speculation about lift off and worries about china. ♪
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rishaad: let's have a look at some stories making headlines. terrorists may have brought down the russian airliner in sinai last weekend. categorical evidence that a bomb may have been on board. denouncedannounced -- plans to ban flights. airlines has said that it is directing flights away from sinai. remainndonesian islands closed because of an erecting volcano. .00 flights have been canceled hundreds of passengers remained
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stranded, including the vice president of india. the latest court and brought and allegations of corruption. criminal investigation on suspicion of accepting more than a million dollars from russia to cover up positive doping test. -- moneyng mandir in laundering charges. they are expected of taking regarding six russian athletes competing at the olympics. we are live in singapore for the barclays asian form. the slowdown in china is also high on the agenda. correspondentasia is there. you said it. the fat is definitely an issue.
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the market suggesting there is a 50% chance of a rate hike by the end of the year. she? won't she? will yellen move or not? >> mission accomplished for the chair. she called it a live option, and the markets have responded to that. the data, non-farms tomorrow. the data will have to justify for that. >> what would have changed in china? >> i would say the communication of the fed regarding global risk has been pretty confusing and the last meeting. i think it has stumped a lot of us. there was so much focus on it. for example, the financial
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volatility and china might indicate a deeper underlying issue in terms of growth. it might? but when will you know if that is a material risk for the u.s. economy? stunning that they would remove that in the last meeting so quickly after raising it. things have been more stable in china. that is true. i don't think they will stay stable in china. i think we will see a lot of volatility around china. if she does move 25 basis china by december, unlikely to remain stable? >> if they go in december, they announcemultaneously they are canceling all meetings for 2016. it will be gradual. that is what markets are
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expecting, a very gradual raising. >> what should the response be from asia? >> coordination anywhere is difficult in asia. the fed move isn't the most important thing. we just finished the survey of , and they said they are not that scared about the fed. they are more worried about what is happening in china. i think the markets are well prepared. you mentioned malaysia. you heard officials there repeatedly say it would be constructive for the emerging markets and malaysia and the rest if the fed were simply to .ift off they may be adding to the uncertainty and markets.
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we can deal with the fed. then it will be back to china. >> they say they are ready for a rate hike. i they ready for the capital outflow that may still come? i think that malaysia is a great example of places that have enjoyed capital outflows, but also markets are fickle. i think a lot of the emerging markets have prepared themselves for the outflows, and you can see various forms of reasonable management using their reserves. that is why you build reserves up in the first place, i do think that it is certainly better if funds are flowing in. malaysia have been able to manage that.
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it, particular part of which is dealing with capital outflows is not the part that worries me. there are other risks. these are the things we just discussed on the panel i came out of. we just don't know a lot of the other risks that may have been developing as a result of this long span of slower growth. >> what is the main concern for 2016? what will be the focus for the new year? outflows in a way that you haven't seen before. it has been external triggers. -- in the past, it has been external triggers. there have been other flows by the sector, and some official flows including from china that have become very meaningful for
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different parts of the world. they may not be a lot of money for china, just like a lot of the exports may not be big from a chinese perspective, but for these countries, anything from china, financing, trade, has become very important. i think that is potentially where you could get a crisis as china begins to shift. if china moves a little bit, it could be huge for these other countries. cut's, $800 billion, is that enough? >> i think china can manage it for themselves. what they are doing for the chinese economy, you don't see a generation being hampered. you see stability there. for everyone else, the communication of what china is trying to a now that affects
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others, the fed could do better, certainly china could do better. that is where i worry. if china makes these policy moves that are constructive for them in the medium are long-term , but unable to explain to everyone else, the volatility we see in markets will remain huge. >> thank you. thanks. they have had a huge small problem, but they can count themselves lucky. india is even worse. we will find out what is going on and head over to mumbai when we return in a couple of minutes. ♪
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rishaad: this is "trending business". i am rishaad salamat. pollution levels in new delhi were worse on wednesday caused by, you guessed it, illegal land burning. what is going on here? air pollution in new delhi is 27 times the safe limit. studys according to a carried out by bloomberg news. that is set to get higher. the high levels of pollution being witnessed will reach the peak on thursday. a thick haze with extremely high
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levels of suspended particles. are directedents to check crop burning in their states. one of the factors leading to smog in the capital. a tollhi has introduced for trucks and commercial vehicles to improve the quality of the air. trucks being banned from entering new delhi during the day. estimates show thousands of trucks pour into the capital city. they account to a third of the pollution in new delhi. fumes to a toxic mix of and dust coming in from construction sites to make it has it is. plan toonth trial charge commercial vehicles extra itcome in to the della, but
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looks like it has reached critical level. rishaad: thanks. that is it for "trending business". we recap the big stories of the day so far. ♪ we live in a pick and choose world.
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