Skip to main content

tv   First Up With Angie Lau  Bloomberg  November 8, 2015 6:00pm-8:01pm EST

6:00 pm
cost challenges. week trait numbers after the pressure for more government. deflating prospects. the outlook as more big clients walk away. years, theafter 17 implications near and far. good morning and welcome to "first up." let's get straight to the markets.
6:01 pm
in australia, waiting for jobs data out this morning. unchanged at 5212. u.s.ustralian dollar at 70 cents, declining. trending, new zealand's stock, currently unchanged, rising 1/10 of a percent. the new zealand dollar, 65 point 26 u.s. cents. let's go to japan, or stocks climbed to the highest level since august, rising 8/10 of a percent on friday. nikkei futures trending higher to tens of a percent. the dollar yen weakening slightly. 2/10 of a percent at 123 .33. our main story, one certain to have an effect, week trait data from china over the weekend offers the government little
6:02 pm
encouragement and ramps up pressure for more intervention. imports and exports fell, leaving another record trade circle. tell us, what's going on. >> this is been worsening of the past two months. china's slowdown. missed was the biggest expectation. let's look at where we are sitting. chineset 97 decline for exports. that is worse than expected. it continues that trajectory of the slowdown. not as bad as july, but certainly not the improvement we were expecting, particularly from the holiday-related numbers. this does lift the case for more pboc easing, but we have had six rate cuts over the past year. that has done little to help the exports sector. a good thing for some of these
6:03 pm
companies, but it doesn't do much to help export demand. this is on -- this is a global issue as opposed to a china issue. taking a look at the numbers for the first 10 months, japanese exports to japan, fell 10%. 12%.kong off the reaction on the australian markets we are expecting, exports down by over 25% over the first 10 months out of, from australia rather, for imports. take a look at the import numbers. a decline of 18.8%. the industry of finance warns we are expecting a sharp decline for chinese imports. that affects the major trading partners, the top 10 are seeing declines. the start of a big week or china data. we are expecting a fuller picture later in the week with a mastic data -- the mastic data. shery: it was a better picture
6:04 pm
of what the global demand is like, especially in china. >> at least the flow of money out of china seems to be eased. we had a massive slump after august. take a look at august, when we saw the devaluation from the pboc, over $9 billion in that month. , or is actually stemming snapping, five straight months of decline. this tells us a lot. we had the stock rally, up by over 10% last month. it's best performance since april. the recovery helped money stay in china. a number of new policies from the chinese government cracks down on illegal money transfers. that seems to be bearing fruit, as well. this bodes well for china's efforts to get included in the ferc.
6:05 pm
it is showing confidence in the u.n., which saw its biggest gain in october. stability is returning to china's foreign-exchange reserve. relief tocome as some chinese policymakers, when the rest of the data is really looking dire. shery: thank you. the latest chinese trade data out over the weekend. a meeting that took 70 years, and led to a handshake that lasted 80 seconds. the leaders of china and taiwan face-to-face for the first such summit since 1945, with singapore playing host. there.a amin is good morning. haslinda: good morning. it was no ordinary handshake. negotiated for about a decade, it seemed impossible. china never knowledged taiwan's
6:06 pm
right to rule itself. at one time, tensions threaten to bring the world close to nuclear war. the 82nd handshake between the leaders followed by a meeting, testimony to a thaw in relations. interesting that at the meeting, the meeting, there were no national flags or titles on the nametags. they referred to each other as mr. they split the bill for dinner after the historic meeting. it shows how delicate the protocol really is. sherry? shery: the formalities were very interesting. , doesignificant meeting this mean we are closer to reunification gekko you haslinda: some say that you sides are closer to the dream of reunification. one meeting can lead to another.
6:07 pm
others disagree. they say the meeting is more symbolic than anything. it was called two months before taiwan's election. a nominee for the nationalist party is trailing far behind the opposition leader, and the meeting was intended to shake up the race to choose a successor. public opinion polls show most taiwanese favor the current state of relations with china. they are opposed to ,eunification, not unpopularity according to policy. a meeting held in singapore? what role have a played iago haslinda: this is not the first .ime singapore has played host it played the same role in 1993 .uring a groundbreaking meeting singapore is glad to be a facilitator. it is an old friend of china and taiwan.
6:08 pm
it is looking forward to peace and civility. that will enhance security in the start of the world. reportinglinda amin from singapore. leaders met.wan's santos and a trading halt after announcing plans to raise to one $5 billion. the oil and gas producer wants to cut that amid a plunge in energy prices. santos will also sell $500 million worth of shares to hony capital, and the kicker gas field -- the kicker gas field. toshiba is suing former executives over irregularities. three x presidents and cfo's are involved. toshiba has lost about one third -- itsmarket gas value
6:09 pm
market value since the news broke in april. they set aside aliens of dollars to cover fines. of dollars to cover fines. volkswagen declined comment on reports that a whistleblower flagged emissions. they mentioned irregularities in internal checks. an estimate for the financial followed from the scandal to more than $9 billion. struggling airbag maker, appears itse on life support after biggest customers walked away. nissan, honda, and toyota droppedto, -- brett takata. zeb: nissan joined toyota and honda in dropping takata. this
6:10 pm
is because of airbag inflator's. because, airbags are supposed to protect the public. these had proven to be effective. takata continues to reel, shares down 6%. 39% three-day decline. looking at the financials, not much better. full-year,forecast 75% to 40 $1 million. a huge drop. this is its core product segment. lots of westerns about where they go from here. you not only have nissan and toyota and honda, lots of other automakers considering or already taking a decision to not buy these products. a huge challenge for the company. nationalfines by the
6:11 pm
highway traffic safety administration in the united states. to the tune of $200 million. shery: their rivals will get a boost. takata have to survive? see -- smbc is drying up a fundraising plan. an additional shares sale is an option. put this, they have to in perspective. the airbag business, last year they had to -- 22% of the global market share or airbags. this year, they are predicted to have 5% of the of the year. that gives you a sense of where things are headed. the company's president says he is uncertain about the survival of takata. next, china'sup
6:12 pm
weaker than expected trade numbers. the impact on the markets, when "first up" returns. ♪
6:13 pm
6:14 pm
shery: checking the headlines around the world, supporters of an opposition leader are confident that one of them -- the most important election preliminary tallies could take weeks. it is in a good position. -- the warned and 11 military ignore the result of an election in 1990. myanmar's current president says the army will accept the outcome this time. the indian prime minister suffered possibly his biggest setback in office, losing an election. his opponents 173% in the state 73% in the state
6:15 pm
assembly. this will embolden his critics. analysts expect stocks and the ruby to fall went -- and the rupee to fall. spotlight, ande anti-doping agency investigating claims in cheating in russia. aafs comes after the former i president and two other people were put in -- put under investigation in france. the successor says athletics lost trust and credibility over allegations of writing -- bribery and building coverups. let's -- and doping coverups. su: the week ahead on wall street, we will have the market continuing to brace for a
6:16 pm
december rate hike in light of stronger-than-expected jobs data. a round of economic data will receive more than usual amount of attention. we count down to the fed's thember meeting, where announcement would come. according to a survey, u.s. retail sales are expected to pick up in october. the u.s. consumer continues to spend, and that helped strike the economy. we expect u.s. consumer sentiment in november was on the rise. that was according to our survey . of the political front, republican candidates for president pulled their fourth primary debate of the election cycle. company holding an investor meeting, during which focus onexpected to turnaround efforts. on thursday, we will get the latest data on weekly jobless claims. investors and policymakers will look for confirmation on friday's strong labor report,
6:17 pm
which seems to signal that, as the feds would say, we are back at full employment. the unemployment rate dropped to 5%. ando systems, priceline, siemens as the quarterly comes to an end. many customer -- many companies have topped sales forecasts. focus on the key events in asia. strategy joins us. good morning, sean. we have been talking about the dollar rally being back on. we hear more about a parity. is this something you are looking forward to? how soon could this happen? >> it is more likely after the payrolls of art. it was a big -- a big surprise.
6:18 pm
the 21,000 above the most aggressive forecast. -- a greater probability of a rate hike in december. the euro broke the one awake level that had held for quite some time. long wayill looks a off. i wouldn't call that it this point. i think we have to lower the 105 onfor the euro to the assumption the fed delivers a rate hike in december. in the background, we have to speculate, positioning has become more aggressive. sincergest euro short early may. a current account surplus in the eurozone, trending higher. the nearest, it
6:19 pm
might be a story for next year. shery: you talk about the shorts. wasing about trade, it mostly euro-door -- dollar. it could be the euro-yet. what do you think that? >> while the bank of japan is obviously on the hold for the time being, there is, if there is a change from the boj, perhaps in the first quarter next year, there qe is quite aggressive. of about equivalent $55 billion per month in money printing. monetary policy is loose in japan and the eurozone. i don't see that as being a particularly good trade in terms of a short euro. shery: how about the yuan?
6:20 pm
it seems to have gone a most extinct. where you see it headed? given the fact that we have the imf decision, being a wild card here, what you think will happen to the currency? >> it is a wildcard. to the noted uncertainty old look for dollar-yuan. the bullish u.s. dollar on the back of the fed rate hike in december, means you should look for higher levels. seem to be ongs the low side of where models would indicate. i think stability is probably the best bet in terms of the short-term on dollar-you want. dollar-yuan. dire traden the numbers over the weekend, you
6:21 pm
don't expect the pboc to try to weaken the you want to boost exports? a we may see the u.s. dollar lead the way and perhaps drag other asian competitive currencies with it. i think that will linger in the pricing, particularly on the 12 month. once we get past the imf, people will think about next year. the ongoing struggles with the trade positions. simply to avoid the appreciation in the currency, if other asian current seas are beginning against the rest dollar, it doesn't make sense to have a strengthening currency at the as you cut interest rates. it would not be a surprise to see a weaker yuan over the next few months. qatar coming up next,
6:22 pm
airways has its eye on an indian company. ♪
6:23 pm
6:24 pm
shery: welcome back. you are watching "first up." is trying to spark interest in a new model. speaking of the dubai airshow,
6:25 pm
to potential customers are looking at the double-decker. he said the deals may not be signed until next year. he doesn't expect any orders to be announced in dubai. 25said he was aiming for -8080 orders this year --a3 orders. ftnhasa canceled flights. 100,000 passengers are expected to see disruptions. it says it is always ready to resume negotiations. it has an eyesays on indian airfare carrier indigo. they could seek 49% of indigo, valued at $2 billion. last month, 10% sales valued
6:26 pm
itigo at $4 billion, making the third-largest low-cost carrier in asia. it is worth five times more than jet airways. bloomberg's middle east editor has more from dubai. >> unfortunately, i could not take a second indigo. indian authorities have restrictions on airlines, taking part in ipo toss. -- ipo's. it can be an outside investor. for us, as we are owned by our country cost sovereign fund, to get the process to do it would have taken longer, and they were in a hurry to do it. >> you said you can't participate in the ipo.
6:27 pm
listed,the shares are we have -- we are free is an airline to buy. if i buy it in the market or in the ipo, it is the same in the end. >> you might get a lower price in the ipo. >> you never know. indigo is a very well run, profitable airline. we would have loved to be a part of it. >> any inkling as to what kind of scope you would be looking at? >> if we can go up to 49%, we would like to go as much is that. shery: we will have more on th
6:28 pm
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.
6:29 pm
6:30 pm
shery: you're looking at live victoria we are 30 minutes away from the opening of trading in japan and south korea. you are watching "first up." the top stories this hour, weak trade figures in china add to the pressure for more stimulus. imports fell 19%, the 12th monthly drop in a row.
6:31 pm
exports were down. of more trade surplus than $60 billion. these figures come at the start of a data heavy week, including industrial production. the first meeting between chinese and taiwanese leaders in 17 years lated -- lasted a few minutes. the historic handshake came first. then, they held a closed-door talk on taiwan. any resolution of the political divide will have major implications for the region. taiwan sits on some of the world's busiest shipping lanes. takata lowered its profit forecast after another major customer walked away. million, $122 million less than previous -- previously thought. they have been fined $200
6:32 pm
million and told to stop using ammonium nitrate insulators in airbags, which are linked to deaths and injuries. nissan has cut ties, but the company says they have not dropped product entirely. >> i want to clarify, some carmakers said they would stop using the ammonium nitrate insulators. that is all. we haven't seen any negative impact on our management yet. the investigation is not complete as to how much of an impact it would have on management for. i cannot comment much further. two australia, waiting for jobs to add data. this morning, the asx allington -- 7/10 of a percent. the australian dollar declining after showing weakness all of last week.
6:33 pm
currently unchanged at 65.30 u.s. cents. stocks rising to tons of a percent. counting down to opens in japan and south korea. in japan, stock climbed to the highest level since august. nikkei futures unchanged. the dollar-yen weakening slightly. suing five former executives over the accounting irregularities that rocked the company this year. executives of these are presidents, or former presidents. three former suing presidents and two former cfos. very high level executives. 2.4 millionking for dollars in damages. back in april, the company disclosed it was investigating
6:34 pm
irregularities. since then, this has engulfed toshiba. in july, an investigation found extensive underreporting of costs and losses that found divisions. since april, the company has lost one third of its value. profit write-downs of more than $1.2 billion. it has been fined. you can see, this problem, this issue of irregularities in accounting continues to be a problem for toshiba. there were some issues which also raised about management and the corporate culture. even the japanese prime minister made a comment about it, saying corporate culture puts pressure on managers, and it once companies to improve corporate culture. this is across japan, not just toshiba. have olympus in 20,011
6:35 pm
-- in 2011. how did toshiba do last quarter in earnings? >> the three months ending in september, net income rose early 8% to 49.6 japanese yen. -- 49.6 billion japanese yen. it said it cannot serve a consolidated 2015 because the company is considering is this reforms for challenging businesses and the company is assessing the impact. it's great to have you back. halt afterny trading announcing plans to raise $2.5 billion. amid the to cut
6:36 pm
plunging girl -- global energy prices. paul, what are the details? : 2.5 billion in new shares will be offered to existing shareholders. also pay $500will million in additional money to china's company. they will buy stake in the cap or gas field. 3.5 billion dollars worth of can be settled. energy prices are 40% this year. santos's share price down 54%. the chairman says we are confident the steps taken today will drive better returns for shareholders. there will be a new ceo, david ceo ofer, currently
6:37 pm
another engineering firm. future dividends will be indexed directly to earnings at about a 40% ratio. 20 of news for santos shareholders. -- forty of news portion santos shareholders. shery: the oil and natural gas company worth more than $18 billion, we hear they have received an unsolicited takeover approach. sources say the apache offer is unclear on whether it will lead to talks. apache is working with goldman sachs. apache is an oil and gas company worth over $18 billion, set to receive unsolicited takeover approach. they are now, it is unclear whether that would lead to talks . that is according to sources.
6:38 pm
time for a look at the top corporate stories. zeb. s a -- here is zeb: and alibaba deal set to be billions, the 2760 a share. they own a minority stake in your group. -- they will compete with baidu. a chinese movie studio invested in the latest mission impossible film. the biggest company in the time when he stock exchanges set to be open to a bid from china. the nikkei news reports that would like tomc see more easing across trade investment policy. morris chang said an investor would have to pay $30 billion for a 25% stake in the company. taiwan relaxed rules in chinese investment.
6:39 pm
the japanese contractor they came under investigation because of a tilted building up ended its profit forecast. last week, they found falsified data on project overseen by several employees. the company will check 3000 buildings it has worked on over the past decade. the fallout from the falsified data is difficult to estimate and has not been included in the revision. >> we have seen some cancellations for our properties. but not enough to affect our earnings. we will continue efforts to regain customers' trust. zeb: those were the top or it -- the top corporate headlines. shery: a big week for ipos. on theakes its debut singapore exchange. listings,e upcoming
6:40 pm
biggest ine of the singapore. >> it will be the biggest ipo in singapore this year, seeking to raise $30 million or more. this is the chilly crab restaurant that has served over 16 -- over 6000 customers daily. they were sold to investors last week. seeking to raise $28.2 million. the biggest ipo this year. -- temasek involved lots of money. to other ipos in singapore, we have had nine who raised $117 million in total. a huge debut on the singapore exchange. heliconia is investing in this company.
6:41 pm
masek is trying to see homegrown talent in singapore. jumbo will operate more stores in singapore and also open in china as well. shery: we have another trading debut in hong kong. >> china's first foreign raising 5.5ank is billion hong kong dollars in its listing today. shares offered at $10, and they will train on the hong kong exchange. completesaustralia the sale of 13% stake in non-entertainment. -- a triple see in australia acquisition in hong kong later this week. andill be pricing its ipo will start trading later this month. a lot of action in the year in asia. newy: juliet here with
6:42 pm
listings in asia. in -- a debut in airline south korean debuts. stay with us. ♪
6:43 pm
6:44 pm
shery: headlines around the world, brazilian prosecutors planning an extension of the operating licenses of a mine owned by vhp rail. the search continues for victims of a massive mudslide triggered by ruptured dams. bhp says at least 15 people are missing. the ceo is flying to brazil today. they say cleanup costs could exceed $1 billion. service in st.
6:45 pm
petersburg for victims of the metrojet crash in egypt. crashed on october 31, killing everyone on board. u.s., french, and british officials suspect a bomb. russia has suspended flights to and from egypt. the world's biggest airline by traffic says it is reviewing security procedures. an airport will reopen in the next couple hours after again being shut down by ash from a volcano. eruptions have- disrupted flights for a week. updates are expected later this morning. we will be watching shares of air afterrier k.g. to
6:46 pm
the sword on their debut. the ipo was oversubscribed cover of collecting demand from investors. joining us for an exclusive chat is the man in charge, the ceo. thank you for joining us this morning. welcome to the program. what you think they were so popular? do you think your company will be able to keep investors interested? well, jeju has been preparing for an ipo for three years diligently. resolved for the market, and also the market has been very nice to us and embracing the new model, and understands our business model and sees the growth potential. it is a combination of jeju ands internal strength
6:47 pm
preparation as well as market reception. shery: you mentioned the lcc model. south korea has five budget carriers. how you compared your rivals, and have used a competitive? stay competitive? >> the model has been introduced 10 years ago. we have been testing the market, and gradually moving into more traditional models, very conscious about costs and also very aggressive in expanding the growth and building the right scale. although the respect of our well,itors to growth as with this ipo, we are probably
6:48 pm
going to become an even stronger competitor. shery: you talk about expansion what are your plans for the funds you have raised? >> although we have -- although we were positive for the last five years, we have been diligent in investing in the fundamental aspects of our operations, strengthening our safety, training our cruise -- ews. we will expand that, and we will do that continuously with discipline. the first priority here is probably the reduced overall cost of the capital. we are going to diligently look into the possibilities of buying enhance oure could
6:49 pm
operating costs. shery: what are your plans there in terms of expanding your fleet ? as well as other services and ro utes? >> we have been adding 4-5 every year. fiveyear, we are adding 737 planes. keeping topline growth at 20%, it is the right trend and pattern giving -- given our operating capacities. so far, we have been operating this format. we are going to investigate whether the financial leads, sheets, all balance those possibilities i think we are very eager to look into
6:50 pm
that. also, we have been successful in ,enetrating in a new route dominated by the legacy airlines, either monopolized or continueast -- we will to look into that possibility. we will introduce in vietnam, .nd the capacity in hanoi vietnam is a -- an option for expanding. we will look into the chinese network capabilities and potential, even though we do not have free traffic rights to operate freely in china. i think last year, we added charger00 unscheduled flights to china. we will pass the new routes and expand in the network where we
6:51 pm
think potentially it could be helpful. shery: we heard for months of singapore air investing in jeju air. are you looking for other partners that could help you grow? >> absolutely. there is an independent carrier. we have initially, difficulties in finding subsidiaries or affiliated companies with legacy but being independent more flexibility. we are open to any alliances, partnerships, with independent airlines operating in other regions. shery: thank you for joining us this morning. air.eo of jeju
6:52 pm
coming up, the eye on -- i were i is on a few companies. when "first up" returns. ♪
6:53 pm
6:54 pm
shery: taking a look ahead at the opening in japan, our reporters will tell us what stocks we are keeping an eye on. the winner, in last session. >> i am keeping an i on mcdonald's. 3/10 of a down by percent. a second straight month of decline. we had a series of safety scares , finding plastic in food. a tooth and a french fry. -- in a french fry.
6:55 pm
like your mcmuffin's, right? at 6:00 thiscream morning. tokyo corporation is what we are following. it is a diversified company, operating transportation services. my favorite, tokyo hands. i love that store. they have everything. painting supplies, fishing, hunting, cookery. they have raised the full-year profit forecast. good news in a difficult environment. kept its four-year forecast. it came through in an operating profit, better than what everyone was looking at. up 9/10 of a percent. they provide greece -- retail services -- it also came through
6:56 pm
with net income, up 43%. it should do quite well today. shery: thank you, guys. highlighted these events. back in an hour to see how stocks have done. is back at the top of the box office. the latest movie earned $73 million during its opening. just shy of estimates. marked --mance is watched closely. the contract between the franchise and sony expires after this picture. in the next hour of the show, myanmar's elections. who will win, and what are the implications abroad?
6:57 pm
and, we are counting down to the open in japan and south korea. whether you are watching on tv, online, or on the phone, this is "first up
6:58 pm
6:59 pm
7:00 pm
♪ >> china's challenges, we trade numbers, pressure for more government stimulus. the world's top shipping line says the global engine is running slower than talk. a deflationary tale, slashing its outlook as more big clients walk away. tod morning and welcome "first up". we are streaming on mobile and
7:01 pm
more week trade data from china. the numbers offer little encouragement and ramp up pressure for intervention. when we see? let's start with disappointing china data. exports with the biggest disappointment. more than twice as bad as what economists had expected, dipping more than 7% in october. now the improvement we were hoping to see. this is more a picture of global weakness, regional trade weakness. japanample, exports to down 10%. hong kong, almost 12%. this is a picture of how trading partners are also suffering and how it is weighing on demand. in points -- imports down by 19%, also disappoint.
7:02 pm
for example, demand from the industrials really weighing because iron ore imports down more than 25% from australia. that number missing the mark. start of a week of a lot of data out of china. will be key,bers not a great start. the boc has six interest-rate cuts. that doesn't help with export demand. factor thatxtra not china does not have control over. >> some positive could be less capital fleeing china. we have stemmed the five-month run.
7:03 pm
china has been spending up, digging into foreign exchange reserves to support the currency. august and september, those record outflows. that has picked up in october. the first pick up in six months. chinesea combination of equities arising over 10% in october. that was the best month of since april. coming off that stock market route. some new policies from the government to stem it legal transfers of money. that seems to be taking hold as well. that theral confidence devaluation was not the start of a currency war or trend of a weaker yuan. beijing does want to get the yuan into the imf special reserves basket. shery ahn: that decision coming
7:04 pm
up this month. thank you with the latest. chinese data we saw over the weekend, now feeding into australia, some weakness in markets in early trade. we are following the action. how are japan and korea faring. ? >> some mixed reaction on those markets. i want to show you the copper price. a big falling commodities from those traits. you can see here the copper price holding at 4987. as you mentioned, that is weighing into the australian share market, pressure coming through. of theeeing a switch out south korean index in early trade, down by a third of 1%. japan continues to add to good gains from friday.
7:05 pm
crater --st 1%, third quarter earnings really impressing the market. elsewhere, the weakness coming through in australia, really disappointed by the data out of china. australia.ews out of you can see a lot of the mining companies coming under pressure. they are all down from 6% to 8%. it will be a busy day in terms of ipo's here in nature. -- here in asia. about $30s raised million for that restaurant. things are going from akata, worse for t
7:06 pm
slashing profit forecast. nisa has joined honda and toyota in the cutting -- nissan has joined honda and toyota in cutting takata. how big of a blow is this latest announcement by nissan? >> one thing these automakers are being careful in the way they are characterizing their statements is they talk about takataaway from inflator's. is whatical compound has been problematic for them in this big crisis. the agreement last week with the regulator in the u.s. was that takata was no longer going to do
7:07 pm
contracts with automakers for new vehicles with in fighters using that chemical compound, ammonium nitrate. unclearis point, it is whether these carmakers are going beyond what the nits a , but for them out to come out in such an open distancey and themselves from takata is something they have not done all along throughout this process and really suggests a further fraying of ties between the supplier and its automaker customers. shery ahn: we had takata's earnings last week. what did we learn from that? >> the company went from 20 two ¥5 billion forecast. so barely hanging on to a four across -- forecast for profits. what you see in the fine print is that this is still a company a full earnings are not
7:08 pm
reflection of the costs of how much this is going to affect the bottom line here. the company is still sort of figuring out the root cause of the issues. isil the root causes th determined, the costs are not clear. you are still in the early innings of finding what the price tag will be on cleaning up this mess. shares justakata got crushed last week we saw them drop by the daily limit. what are we expecting this week? >> right. it is a 39% plunge last week here it you go back throughout this crisis, which is now several years long since we've known about these recall issues. even go back to the march 2011
7:09 pm
tsunami, you can't find a week as bad as takata had last week. it will be important to see what the extent that they come out and make some more disclosures this week that they are able to get in front of the story and try to explain the extent of the damage to this point. this is a company that still makes seatbelts, airbag modules and supplies all these customers who are making noise about walking away. court.l is in takata's it needs to explain to the market its ability to survive going forward. seeing a: takata rebound today, up more than 6%. thank you for that. joining us from tokyo. toshiba shares have fallen on the open after the news that it is suing five former executives over accounting irregularities. we have more.
7:10 pm
three former presidents being sued here. >> also to former cfos. presidents --er the company disclosed that it was investigating possible accounting irregularities. they found there was extensive underreporting of project losses and costs across many divisions. the company really battling this for the year. the company has lost a third of its you since april, and a right than $1.2 billion. it is a very big issue for toshiba this year. it also led to the japanese prime minister looking at the corporate culture in japan as a whole and saying he is pressing companies to improve corporate governance with independent board members, putting a focus
7:11 pm
on how companies are managed. there were also problems previously in 2011 with the biggest corporate accounting irregularities scandal, olympus. now we are looking at toshiba. fell 1.5%.shares they look like they are continuing to fall at this point. shery ahn: with all those losses and the fines they are getting, what are their earnings looking like? posted income has billion, that49.6 is 400 plus million dollars. the camp and he does company said it sold interest in an elevator maker and a medical equipment maker. if you look closely at the
7:12 pm
statement from them, a consolidated forecast for the full year 2015 is yet to be released. the company is considering the companyorm and is assessing impact. they are looking at different ways for toshiba to do business. onry ahn: with the latest toshiba's accounting irregularities. checking on other stories around the world. santos is in a trading halt after announcing plans to raise $2.5 billion. the oil and gas producer under pressure amid the plunge and global energy prices. they were also sell $500 million worth of shares and offload its stake to a unit of mitsui. the japanese contractor under investigation because of a tilted building has cut profit
7:13 pm
forecast by 14%. they found falsified data on projects overseen by several employees. the company will have to check the condition of more than 3000 buildings it has worked on over the past 10 years. the fallout from that falsified data is too difficult to estimate and has not been included in the revision. >> we have seen some cancellations for our properties , but not enough to effect earnings -- a factor earnings. we will continue our efforts it to regain customer trust. shery ahn: the world's biggest shipping line says the world's biggest economy growing at a slower pace than forecasters think. the engine is slowing down and trade is significantly weaker than normal. last month, the imf lowered its , citing ast to 3.1%
7:14 pm
slowdown in emerging markets because of weak commodity prices. coming up next, investment inside the market strategy. that is live from sydney when "first up" returns. ♪
7:15 pm
7:16 pm
shery ahn: checking some of the stories making headlines. she --ers of uncensored -- officials say a final tally could take weeks. it is in a good position, the mlb. the military ignored the results in 1990. the current president says he and the army will accept the outcome this time. the first meeting between leaders of china and taiwan in 70 years lasted 15 minutes and 80 seconds. the historic handshake came first.
7:17 pm
they held closed doors talks. theresolution of long-running political divide will have major implications for the region. the united states is legally obliged to defend the shipping lanes for taiwan. hasa's prime minister suffered his biggest setback in office. he lost a crucial election. his opponents 173% of seats in the state assembly, with his alliance picking up just 24%. critics.bolden his expect stock and the currency to fall when trading begins later. more on the markets. joining us from sydney. thank you so much for talking to us this morning. more bets on the
7:18 pm
fed tightening, but with the rest of the world keeping accommodative policy, do you think markets will get support? >> good morning. yes, we do. we are quite positive about the prospect on europe. , bank of japan and bank of england, we do see those markets as the better performers. we are not negative on china, but we think it is range down at the moment. we've seen the bank of england just recently was more concerned about the lack of inflation. that pushed out expectations of when they might start raising rates in the u.k.. we continue to see speculation on whether the european central bank will in fact extend quantitative easing year. not quite getting the growth mention that they currently want. shery ahn: what about that the
7:19 pm
bog.y -- people have speculated they will delay action. how does that factor in. >> we probably expect that will be the case. the bank of japan has been quite active earlier in the year. they probably want to take some stance and assess what is going on in the economy. we have seen a couple of quarters of growth, stock market reacting more favorably to that. we would not be surprised to see them wait until earlier next year to see that traction the past policy measures are taking on the economy. shery ahn: we have jobs data out of australia this week. they have kept him optimistic outlook on the economy. had uss it and what does it mean for markets? it and whatu assess
7:20 pm
does it mean for markets? >> not a lot of change in the language from last august. it is interesting to note that they do see unemployment will continue to grow, but modestly. there seems to be a complete shift in terms of demand on the labor markets, more towards the services side, not mrs. early a -- notmployer necessarily a large employer. currently tracking around 6.2%. the reserve bank of australia will cut rates again. --were for questing forecasting a cut last week. additional capacity in our economy, inflation at 1.5%. the range by the bank is 2.3%.
7:21 pm
we would expect to see more stimulus come through from the reserve bank. investment side on non-mining continues to be flat. that is an area that the reserve bank wants to focus on non--- in on. across the broader basket of currencies, were not seeing the gains we would like to see in terms of depreciation, helping to rebalance our economy. we are looking for further cuts to see the austrian dollar come down a bit. shery ahn: thank you for joining us this morning. coming up next, go in search of a very rare species. more on that after the break. ♪
7:22 pm
7:23 pm
7:24 pm
shery ahn: welcome back. >> welcome back. these are your fx headlines. set to become a rare greek. breeds.e ed.bre years dropped 2.3% this and has touched a full year low
7:25 pm
on august 11. as the fed prepares to increase rates in the u.s. from record is asia's bright spot for fixed income investors. resilience is the reason they have been buying the nation's debt. the people's bank of china bought india bonds for the first time last month as limits were relaxed. the central bank of the philippines claims weakness is unwarranted. the deputy governor of the bank says surpluses and balance of payments means the currency should be stronger. the peso slid to a five-year low last week. the central bank as likely to hold benchmark rates at 4%. a pause afternd
7:26 pm
raising borrowing costs last year. that's check on the austrian dollar, under pressure due to the u.s. jobs report and weak china data. weaker again this morning. the key weak dollar is stronger today. it is slightly higher. focus,anese yen also in posting a 2% drop last week. the biggest decline in five months. the japanese yen still weakening against the greenback, down by ,/10 of 1% at the moment 123.26. a look at the one week chart, you can see there it was down 2%. drivinge the stories the forex markets this morning. is back at the
7:27 pm
top of the box office. the latest movie in the spy million during73 opening weekend in north america. just shy of estimates. the performance is being watched closely as the deal between the right holders of the 53-year-old franchise and the sony expires after this picture. coming up next, santos sells shares and assets as plunging energy prices hit its balance sheets. we will have the latest when "first up" returns. act into. ♪ we live in a pick and choose world.
7:28 pm
7:29 pm
love or like? naughty or nice? calm or bright? but at bedtime ...why settle for this? enter sleep number. don't miss the semiannual sale going on now! sleepiq technology tells you how you slept and what adjustments you can make. she likes the bed soft. he's more hardcore. so your sleep goes from good to great to wow! gift the best sleep only at a sleep number store. save $500 on the veteran's day special edition mattress with sleepiq technology, plus 36- month special financing. hurry, ends wednesday! know better sleep with sleep number.
7:30 pm
ferris will here in hong kong. we are one hour from the open of trading here. you're watching "first up". ♪ shery ahn: the top stories this hour. takata shares have jumped despite the firm lowering full-year profit forecast after another major customer walked away. nissan has joined toyota and
7:31 pm
honda and cutting ties. the company says they will not drop its products entirely. clarify that some of the carmakers have said they would stop using the inflator's using ammonium nitrate, that's all. they did not say they would stop using takata airbags. we have not seen any negative impact on our management. the investigation is not completed in terms of impact on management. i cannot comment further. shery ahn: toshiba shares theled more than 6% after company sued three former presidents over accounting scandal. taking legal action against two former cfos, seeking millions of dollars in damages. japan's biggest accounting scandal cynthia lummis has seen profit write-downs of more than $1.2 billion. week trade figures from china
7:32 pm
expected to add to more pressure for stimulus. imports fell 19%. exports were down almost 7%. a record trade surplus of more than $60 billion. the figures come at the start of a data-heavy week. let's get a check of markets trading. japan extending last week's gains, adding 1.3%, now at the highest level since august. south korea declining. the asx 200 also losing. a trading halt this morning after announcing plans to raise $2.5 billion. santos wants to cut debt amid a plunge in energy prices. let's get over to paul allen in sydney. for some details.
7:33 pm
-- give us some details. >> santos said they would not do a capital raising previously, but i guess they have changed their mind. raise 2.5pected to billion dollars. they will also sell their 35% stake in a gas field in victoria. they will sell that to mitsui and company. that will raise $3.5 billion used to pay down debt, don't they need it? energy prices off 40% in the past year, shares off 54%. the chairman says they are confident the steps taken today will try better returns for shareholders. more news on that front as well. future dividends are likely to bear a direct ratio to earnings, probably around 40% of net earnings.
7:34 pm
ceo've also announced a new david gallagher taking over. we will have to wait for a while before we can see how the market reacts towards santos. currently in a training hold, and likely to remain that way for much of the week. shery ahn: thank you so much for that. joining us from sydney. breaking news, olympus is 17%, justgains to touching the daily limit. olympus reported earnings last week. the net income for the second , 34% year on30% year, beating estimates, so a olympus soaring at the moment. olympus was entangled in the accounting scandal in 2011. up 17%. brazilian prosecutors are planning to request an extension
7:35 pm
of the operating licenses of online owned by bhp. the search continues for victims of a massive mudslides triggered by dams at the project. bhp says at least 15 people are still missing. the ceo andrew mackenzie is flying to brazil today. >> we need to do a full investigation about things that may have happened in the past. right now, my soul focus is very and on making people safe thinking about how we can clean up the impact of this incident. shery ahn: let's bring in our commodities reporter, david stringer. what you have for us? you heard there from andrew mackenzie, on his way to brazil to the scene of this disaster from last week to what bhp has said is that they now know that
7:36 pm
at least one person is confirmed dead. there are 13 workers at the joint venture who remain missing. say 15 peopleies from surrounding communities are also unaccounted for. that search is still going on for the missing. that andrewnow is mackenzie will arrive there bhp are attempting to explain exactly what happened last week. it is unclear the exact chain of events. one am at the site failed. -- andd was affected they are currently observing a third dam. there is still a lot going on on the ground. shery ahn: what does this mean for php and their son marco venture? are they likely to face fines their? mentioned, their state
7:37 pm
prosecutors in brazil will look to have the operating license suspended in monday in brazil. it is likely that the companies do phase liabilities. lawyers say they could face compensation to those affected. one estimate puts that at around $13 million. there is also likely to be quite a considerable cleanup bill, and deutsche bank has estimated that could top $1 billion. they suggest the operation could be out of action until 2019. shery ahn: when you say san marco could get suspended, does that mean they will not be able to produce iron ore? will that disruption have any effect on prices? >> we know a little more about this. san marco said that as you might that suspended operations
7:38 pm
will not be continuing. they set once current stockpiles are exhausted, shipments of product will also cease. this second-biggest producer of iron ore pellets. they count for about 20% of that market. east,re focused in middle europe, and u.s.. citigroup suggests that the most market impact will be on the iron ore pellet premium, the premium above the benchmark iron ore price. the one werk price, watch a lot, is not likely to see any major impact according to citigroup. iron ore has fallen a third this year. shery ahn: thank you so much for that. joining us for the latest on that venture. at the topr a look stories on the bloomberg terminal.
7:39 pm
volkswagen has declined to comment that a whistleblower flag co2 emissions and october. the w is examining its emission testing procedures and raised its estimate for the financial fallout to more than $9 billion. to buy a sitereed said to be worth $4.8 billion. alibaba already owned a minority stake, and now will compete with baidu and tencent. they invested in the latest mission impossible film. the biggest company on the taiwanese stock exchange is open to a bid from china. the chairman said there is no -- on
7:40 pm
those were your top corporate headlines. shery ahn: this is a big week for ipos in the reason -- region. jumbo makes its debut on the singapore exchange today in an ipo that is eight times oversubscribed. we had the other upcoming listings. jumbo is a huge listing, one of the biggest in singapore. >> they are seeking to raise 30 million u.s. dollars in this ipo, which is heavily oversubscribed. it will be the biggest ipo. to put it into perspective, there were 19 so far in singapore, raising a total of 117 million. the holding firm will be one of
7:41 pm
the biggest investors, $7 million worth of stock. osim haser and chair bought $8 million worth of stock as well. essentially what jumbo wants to do is put this money back into their operations. they served 6000 people in singapore each day. they want to expand into china as well. shery ahn: we have a debut in hong kong. what are we expecting? china's first foreign investment bank debuting today, $710 million. we have quite a lot coming through this week.
7:42 pm
we've also had news just coming to liftthat china plans its five-month freeze on ipos by the end of the year. we could see more stock coming online in china. shery ahn: lots of concerns that that might drain funds from the market. thank you for that. coming up next, what's now after the most open election in history, the political and economic implications when "first up" returns. ♪
7:43 pm
7:44 pm
shery ahn: welcome back. results are now
7:45 pm
being released, and officials say a final tally could take weeks. this with andrew davis. the rain with supporters. why are they so confident they will win? >> her support has been solid for 25 years. they had an election stolen from them. turnout looked good. the initial response from election observers is that it did seem to be relatively well run and not much sign of election fraud. there is growing confidence that their majority will hold this time. the question will be will the government and military language power. shery ahn: she is now barred from becoming president. how will she figure out how to govern? said -- : she >> the constitution does not say that there can't be anybody
7:46 pm
above president. she intends to pull the strings. it was the military that change the constitution to keep her out of office because her children were foreign nationals and late husband was british. they rigged the system again. she remains as popular as she has ever been. shery ahn: the military said they will respect the results this time around. how confident can we be that will happen? >> if they do, it will be very complicated for her to form the government. the way they have set up the system is that the military guarantee 25% of seats in parliament. they get to nominate a candidate for president. unless she wins eight sweeping majority, which is difficult to somehe will have to do horse trading. it remains to be seen -- the opposition could lose the election or a majority in parliament.
7:47 pm
we will have to see how big the victory is. shery ahn: the total will be out in a few weeks? >> preliminary results in the coming days. final results may take a while. joiningn: andrew davis us with those historic elections. checking the stories making headlines. the memorial service held in st. petersburg for victims of the metrojet crèche in egypt. the flight had just left when it crashed on october 31, killing all 224 people on board. u.s., french, and british officials suspected bomb caused the disaster. russia has not confirm that, but has suspended all flights to egypt. emirates says it is reviewing security procedures around the world. open in the next
7:48 pm
couple of hours after being shut down by as from a volcano. have been disrupting flights for more than a week. jet star says it plans limited daylight flights, while verging australia is expected to give an update later this morning. ,n the spotlight again today the anti-doping agency releases its investigation into systematic cheating in russia. the report comes after the former president and two other people were put under criminal investigation in france on corruption charges. no to a handshake -- now to a handshake that took 70 years, china and taiwan met face-to-face for the first time since the civil war split.
7:49 pm
singapore was host for the historic meeting. , joining us now. good morning. >> you can call it a handshake .hat painted a thousand words it lasted 80 seconds, but was negotiated for more than two years, something few saw as impossible in the past decades. china has never acknowledged tie one's right to rule itself. it is one of the biggest unsettled conflicts of the last century. the leaders have a 15 minute closed-door meeting. the talks were found to be pragmatic, straightforward, and stressed the need for more dialogue. there were no national flags. both referred to each other as as opposed to president, and they went dutch. they split the bill for dinner after that meeting. thell shows how delicate
7:50 pm
protocol balance really is. maybeahn: can we say that we are a step closer to a possible reunification? there are two sides to the coin. a stepd be seen as closer to china's dream of reunification, but the meeting is more symbolic than significant. it was called before tie one's general election. the nationalist party is trailing way behind the opposition leader. this meeting was intended to shake up the race to choose the successor. public opinion polls show most taiwanese prefer the current state of relations with china. they reject reunification. so, reunification is at this
7:51 pm
point just an idea, if not a pipe dream. shery ahn: why was the meeting held in singapore. what role has singapore played there? you can say that singapore is like a friend. this is not the first time that singapore has played host to china and taiwan. 1993, there was a groundbreaking meeting between the two sides then. it is an old friend of both china and taiwan. it says it is looking for to sustained peace, and stability in the taiwan straits in the interest of economies around this region, southeast asia, and asia as a whole. security and prosperity can only be a good thing. shery ahn: thank you for that. reporting from singapore. coming up next, shares of it japanese property developer in the spotlight after the company is caught up in a probe over bad
7:52 pm
construction work. some potential market movers when "first up" returns. ♪
7:53 pm
7:54 pm
shery ahn: welcome to the stock exchange. trading under way in asia. beginners luck. .nvestors not making much same-store sales fall for the second month, mcdonald's japan. the recovery continues. >> i would not be happy if i
7:55 pm
found a tooth in my happy meal. in of the many businesses tokyo, you have got to go. >> i have never been to japan. they operate everything from transportation, hotel chains, retail, and they have raised their full your forecast. >> look at that. >> didn't they have an upside of 40% plus? >> income up 30%. 17 buys, for holds, zero sales for this company providing real estate. >> there is always tomorrow. thank you for that. ♪
7:56 pm
shery ahn: trending business is up next. we have a look at what is coming up. look at aet's have a couple of ipo's today. the retail segment of that been three times oversubscribed. i'm not too sure about institution. shery ahn: it is coming online in singapore. rishaad: eight times oversubscribed. we should get the early price action in about five minutes. have the edifice around modi
7:57 pm
's leadership showing cracks. at the dubai look air show. shery ahn: all of that is coming up on "training business".
7:58 pm
7:59 pm
8:00 pm
rishaad: it's monday, november 9. this is "trending business," and i am rishaad salamat it. coming online in singapore and beijing, here is a look at what we are watching. china's challenges. expectations of more government intervention. exports fall again, leaving another record trade surplus. strugglinga to survive, still down about 40% this month alone.


info Stream Only

Uploaded by TV Archive on