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tv   Trending Business  Bloomberg  November 8, 2015 8:00pm-10:01pm EST

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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.
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has jumbo found the recipe for success? let us know what you think of our top stories. follow us on twitter. that's my handle. find out what is happening with stocks starting out the week in a positive note, although there has been a switch out of some of these minors, hasn't there been, juliet? juliet: we are seeing share 200, down byasx 1.1%. ,e are seeing big falls particularly from the index leader. the terrible disaster in brazil waiting on its success. about .5%.down by the region is getting a boost from japan after the strong session on friday. the nikkei 225, earnings really impressing the market. gains in taiwan, which has just come online.
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a little bit of a little bit of the switch out of the malaysian sharemarket on the open, and we are seeing good gains in new zealand, up by 2/10 of 1%. this is the picture on the overall region. we can see the switch out of oil and gas stocks waiting on australia, and basic materials stocks coming under pressure. good gains coming through on health care and natural stocks, leading the gains across the region. let's have a look at some of the movers in the region. rising by itsly daily limit. it is currently up by 14%. they are having a strong session in japan. coming under pressure due to that mining disaster in brazil, and new crest mining in australia, the largest gold player, being hit hard by weekend commodity prices. -- weakened commodity prices. rishaad: back to our main story, disappointing numbers,
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offering a little encouragement in china, and indeed ramping up the pressure for more government intervention. here is heidi. heidi: it is all looking very , down about fact 7%. let's take a look at the details. exports missed the mark by a large margin. this is twice as bad as bloomberg economists had been expecting. remember, the government had put in place six interest rate cuts over the past year alone and a number of easing measures am a but this is a global slowdown story. interest rate cuts help chinese companies, or to clearly state owned companies with high debt burdens. -- particularly state-owned companies with high debt burdens. taking a look at the first 10 months, exports to japan were
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down almost 10%, hong kong, almost 1% lower, so this paints the picture of a regional and global slowdown. imports, also missing the mark. we didn't see an improvement, a decline of 19% for october. this is showing that while china sneezes, the rest of the world d.imports from australia were down over 25% . we are seeing that in sydney today. there was a little bit of a bright spot, -- rather come over the weekend, and that was in china foreign exchange reserves. we did have record numbers when it comes to capital outflows, $93 billion in august. that has picked up. we are seeing the first pick up in china's foreign exchange reserves in six months. really, i guess, putting a little more confidence in the yuan.
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we also had the effect of that stock rally. shanghai stocks returning to the all market, picking up 11% in october, and policymakers putting in place new ways to deter capital outflows, illegal money transfers out of the country. all of seems to be bearing some fruit. rishaad: thanks. of course, we will have a deeper look at that story later in the show. tweet us your thoughts to @risha adtv. singapore's chili crab train debut, theits company seeking $30 million in its ipo, making it the biggest in the city state this year. it's on an absolute tear, isn't it, haslinda? haslinda: yeah, an increase of 50%, a delicious debut. the ticket to watch on the sb,mberg terminal is jumbo everyone wanting a piece of it.
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are close to the heart of singapore, so demand has been growing, and jumbo has said it's using the money to opened new outlets, including in china, where it already operates . it is also looking to upgrade existing outlets, get new equipment and machinery. interesting to note that it big-name shareholders come including state investment company temasek holdings, as well as a company that makes massage chairs. sellse it or not, jumbo about 1.4 tons of crab day at its restaurants in singapore. the company has grown more than 30% annually over the last few years with profit for the first half of this year totaling about $5 million. some would question the timing of this ipo following the recent in china, butown the company says, don't worry.
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the easing will not rock its business, which it expects to be resilient. chili crabs for you? rishaad: i'm not so sure actually. i have mixed feelings. [laughter] at what elselook is making headlines. here is rosalind chin for the roundup. rosalind: takata has slashed profit forecasts by 75% as its biggest customers lose faith and walk away. net income is expected to fall from ¥20 billion to just y5 billion. takata posted a loss of $70 million in the second quarter, and that's exactly related to product recalls. their faulty airbags can fire shrapnel into the cabin, and they have been linked to serious injuries and deaths. is the latest automaker to drop the airbags, along with other automakers.
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to shiva shares are tumbling after it said it is suing five former executives over accounting irregularities. three those are former toshiba presidents. there's an investigation into thatnting irregularities started in april. toshiba has lost about one third of its value since then. fined ¥91 million by the turkish stock exchange in september, and there could be more fines coming. earnings, out over the weekend, so net income rose to ¥46.8 billion. that was helped by asset sales. the consolidated forecast for the full year of 2015 has yet to isreleased, as the company
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challenging businesses, and the company says it is assessing the impacts. a cut in annual profit forecasts by 14%. net income is expected to come in at ¥91 billion, $750 million. this is the japanese contractor, which is under investigation because of the building that is tilting over. the housing business accounted of their profit last year. the company admitted data linked to other projects, and it will have to check the condition of more than 3000 buildings it has worked on over the past 10 years. the fallout iss too difficult estimate and has not been included in the revision.
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rishaad: just have a look at our website. we are looking at the real capital class, why australia is supplying live cows to china on a 747. program, later on this we will get a head start on the week as we look ahead to some of the key economic data coming out of this part of the world. after the short break, cloudy with a chance of volatility. our next guest looks at the chances of a lift off in the u.s. and how central banks in asia may well respond. ♪
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rishaad: you are back with "trending business."looking at the odds of the fed rate hike because they've shot up for next month after that amazing number, that huge jump in u.s. jobs. it lets get more on that and what it means for asian markets. joining us is ig strategist evan
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lucas. great to see you. we often start questioning what chinese data is telling us, and then we get these two numbers. september, that was an aberration, and last month's number, another aberration. what gives? is it better to take an average of the two. either way, it looks like december is going to be a go. it's a very big turnaround from what happened in september to october, 270 6000 jobs, a staggering figure considering how low it was the month before. we are now expecting about 170,000. i think you have to take an average of that figure from september and october. throw in august, as well, considering how low that was, and you come to just around 200,000 jobs added. although the market has moved to that number, the highest level it has priced in for a december
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hike -- economists forecasting a hold have basically moved. they say it needs to be your base case. a rate hike in 2015, a first move from the fed since 2006 to the rate hike side. rishaad: bond markets reacted. the currency was a big mover. equity investors were fairly sanguine about it, weren't they? evan: i think the way to look at theyquity market is that are expecting this to happen. we keep seeing it in the doty plots. what we saw with the nonfarm payrolls from august through september, the base case was they were going to raise rates a little bit this year. it is nice to see. it we are not talking about a taper tantrum or some rate hike hysteria. it's more like, we knew this was coming. is it going to be a drag on what we saw withexpectations ye
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market so far hasn't said that. the question you've got to ask is, how much of the -- of an effect does it have on the u.s. dollar? it has rebounded into the pound and the euro, as well. the u.s. dollar is having a huge impact. it is really impacting topline growth, and for the first time i post-gst, youince had topline growth that didn't beat expectations on a 50% basis or more. that needs to be factored into your rate expectations. her to do that on the 17th of december. rishaad: looking at this part of in world, do we see gain cash, running out of the rupiah? evan: yes, you can certainly see the possibility of outflows. there's a building expectation
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there will besia, an epicenter of pressure. you need to start looking at places like malaysia, thailand, vietnam that also may see that outflow. it will be an interesting push-pull factor. how much do they do into 2016? are expecting rate hikes. that would accelerate the u.s. dollar and accelerate emerging-market exits. it will be interesting how the central banks react to your. how do they continue their growth? liabilityve quite a to u.s. debt, and that will be the 20 16th aim, unfortunately. theme, unfortunately. rishaad: china, an opposite story, an economy faltering given the trade numbers. probably,t stimulus almost certainly, and we think that will play out in these emerging markets.
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i6 evan: would have to evan: agree. i think what you saw. i would have to agree. i think what you saw with the chinese seeing a 6% growth year on year, that's a huge impact. for us in australia, it was a 24.9% decline year on year. that's a staggering figure. commodities-led boom in australia is slowing, but also in places like malaysia, indonesia need to be very aware that if imports into china are slowing that much, they will have to start looking elsewhere. that brings back pressure on to the u.s. dollar debt problem. you are right. we have had six rate hikes in china in the last 12 months. it means we could see another one before december 31. how much is that going to uptick gdp? medium to high level gdp growth is needed over the next five years. you would have to build in a base case that you are going to
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see the pboc move again. it puts more pressure on emerging markets and how they moderate the china slowdown we are seeing. rishaad: just picking up on what you said about u.s. earnings, the most important bellwether as it comes to the global economy, they said it was the worst burning season since 2009. picking up on what you are saying come it wasn't really, was it? yeah, you do have to caveat -- the headlines running around the weekend were, it's the worst since 2009. if you look at materials and energy, it was a fairly standard if not slightly better u.s. earnings season. most had about 5%, 6%. apf numbers were 71% beat on expectations. it was a fairly standard u.s.
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earnings season. look inside the biomedical space, which has been beaten up this year. it you are right, there needs to --a caveat, but if it needs starts to filter through on consumer discretionary, financials if, that starts to come home, you will start to see 2016 being a choppy year. rishaad: have a good week. evan lucas joining us from ig in melbourne. we are going to have a look at some stories making headlines around the world. to brazil, prosecutors are planning to request a suspension of the operating licenses of mines owned by bhp billiton. the search continues for victims of the massive mudslide that was triggered by ruptured dams in the iron ore project there. bhp says at least 15 people are still missing. the chief executive is fine to brazil today. deutsche bank says the cleanup task could exceed $1 billion to support her of myanmar's
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opposition leader aung san suu kyi feel that they have won the country's most important election in decades. officials say a final tally could take weeks. the nlb says it is in a good position. they won an election in 1990, but the military ignore the result. malaysia's current president currentmyanmar's president says he and the military will accept the outcome this time. india's prime minister narendra modi lost a crucial election in behar state. modi's alliance picked up just 24% of seats. the election will embolden his critics. analysts expect stocks and the rupee to fall when trading begins later. next, a long hello. leaders from china and taiwan, was 70g a handshake that
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years in the making. after the break, we will assess the importance of the historic meeting. ♪
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rishaad: we are having a look at cicc. let's have a look at how things are taking shape, and i can certainly see it in green. b: happy executives at the
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hong kong stock exchange, the cicc. this is the first foreign investment bank based in china. $811 million here, and as you can see, it's rising in its trading debut. this is the premarket action, six or seven minutes away from the open. this was offered at $10.28 apiece. that's the top end of the market range. we understand this is five times oversubscribed by retail investors. a strong start. the financial-related ipos we've seen this year have been popular among investors, given the rally in the chinese markets, the roller coaster rally. cicc raising money to expand its equity sales, trading, wealth management, and international businesses. this all follows on the shanghai composite surge from that august low.
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going to the market now, and the deal, by the way, adds $25 billion -- adds to, rather, the $25 billion raised this year alone on the hong kong stock exchange by first time share sales per that is a 42% increase from the same time in 2014. we are seeing a banner year for those offerings. as we take a look, $10.90, that is where we are right now. $10.28, a 6%d at advance for china international capital. rishaad: let's take a look at what else is going on. a tradingsantos in hole, announcing plans to raise $2.5 billion, but why? they want to cut debt. we've seen that a crew because of the plunge in global energy prices. santos will also sell half $1 billion worth of shares and offload its stake in the kipper
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gas field to a division. the boss of the biggest world's's shipping line says the global economy is growing at a slower rate and trade is significantly weaker than normal. last month, the company lowered its 2015 gdp forecast to 3.1%, pointing to the slowdown in emerging markets and because of weak commodity prices. is back at the top of the box office. the latest movie in this by series, earning $70 million during its opening weekend in north america. watched" is being closely. the first time i did drugs, it was marijuana.
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rishaad: look at our top stories. investors are showing a healthy appetite for a slice of singapore seafood owner jumbo group. the shares jumped more than 50% on the debut with the purveyor of chili crab, more than $230 million. takata shares trading higher in tokyo, despite the company lowering its full-year profit forecast. $141 million, hit
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about $122 million less than previously thought. nissan has joined honda in saysng ties, but takata that doesn't mean they've dropped their products entirely. new numbers from china, expected to add pressure for more stimulus. exports reached of their 12th monthly drop in a row. a record trade surplus of more than $60 billion. this all comes at the start of a data-heavy week with industrial production and inflation, as well. we just had the bond markets in the 10-yearome and yield, inexplicably, as far as i'm concerned, jumping 30.5 bases, the most we've seen since 2013, june of 2013. i'm trying to make sense of that as we go to the open in shanghai and hong kong. the shanghai market, just down a
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fraction at the moment, and it's a mix to morning generally in this part of the world, and trying to fathom what is going on is juliet. juliet: we've seen quite a bit of weakness coming through in the region in the morning session, although the shanghai market did open slightly weaker, now up by about 2/10 of 1%. we are seeing a little bit of a pickup, but certainly a volatile session. the week china trade data has been weighing on the markets in australia, but we are seeing a little bit of a pickup in the early session. the hang seng index, down by 6/10 of one then percent. zeb has talking about the strong .hsbc of cicc , the best performer coming through on the hang seng index, up over 1%. a little bit of a pickup in casino stocks. generally, a weaker start of the session in hong kong. also seeing weakness in malaysia, singapore, despite the
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strong debut of jumbo holdings. elsewhere, taiwan is looking quite good, as is new zealand, but it is australia that is seeing quite a bit of weakness coming through, particularly from the mining players. bhp billiton has been coming under pressure, as well, due to the mining disaster we've seen in brazil. bykorea, the kospi, down 4/10 of 1% in the early session. weakness coming through on stocks that have been fallen by more than 10%, so that is weighing on the kospi and the yuan. handshake 70as a years in the making, and it lasted more than a minute. the leaders of china and taiwan, meeting face-to-face for the first time since 1945. bloomberg news' reporter at large is here. it was hugely symbolic. >> it is very symbolic. it's the first handshake between
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leaders from taiwan and china, ,or the first time since 1949 and therefore, it has served huge historic symbol laws them. -- symbolism. rishaad: the man on the left, he can't stand again in taiwan for the presidency. ting: he is retiring. rishaad: he has to constitutionally, right? ting: he has served two terms. one of the purposes for this summit was to lock in the progress he has made for the , economicars cooperation. rishaad: does this have any implications for the upcoming elections in the next couple months? want to see how it exactly affects election results, because we have seen many poor results coming.
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messages xi wants to convey to the taiwan voters is, part of thee, it's one china principle. peace can be preserved, and maybe economic cooperation can continue. meaning onecourse china, but there are two interpretations. ting: it's a tacit understanding between china and taiwan, agree to disagree on what one china means. taiwan has a different interpretation. ting: thank you very much, ting shi, taking a look at what's been going on over the weekend, the historic talks between taiwan and china. data out of china.
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the disappointing numbers offer little encouragement and ramp up pressure for more government intervention. tom all look is in beijing. with chinese exports, it's not looking good, is it, this growth outlook? tom: i think the challenge for china is that they've got weak domestic demand with trouble in the real estate sector and weak external demand with exports contracting, and those things are happening at the same time. that's why there is so much concerned that china's growth is .eak at the moment a going forward, the outlook isn't much stronger. rishaad: yeah, and looking at what happened with the currency reserves, they are up. that is something that hasn't been the trend of late. has there been a panic over the yuan? pretty much over with?
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tom: i think it's kind of a complex picture. back in august, the pboc did that need to valuation of the -- that mini-devaluation of the yuan. and in august and september, there were quite sharp falls in chinese foreign exchange reserves, outflows of funds from china, and that contributed to a sense of pen, a sense that the only way was for the -- sense of panic, a sense that that was the only way for the yuan to fall. october's numbers were a little more robust. we had a surprise increase in foreign exchange reserves are the obvious interpretation of that is that the panic on china's currency is over, and capital flows across the border are more balanced. that said, it could be a bit more complicated. china's central bank seems to have found different ways of managing pressure on the currency, channeling intervention through state-owned banks, rather than doing it
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itself using its foreign exchange reserve, and intervening in the forward markets, and what that might mean is them even though the fx reserve numbers rose slightly, there is a lot going on behind the scenes as china's central bank struggles to control the currency. rishaad: tom, thank you very much, joining us from beijing, bloomberg intelligence's chief asian economist. commenten declined to on reports that a whistleblower flagged problems in october. vw is examining its emissions testing procedure. it's raised estimates for the potential financial fallout to more than nine doing dollars. alibaba stepped up its video streaming strategy, agreeing to buy a youtube-like site. the unit is said to be worth $4.8 billion in total. alibaba, raising its initial offer by eight dollars.
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alibaba already owned a minority stake in the company, and full ownership will help it compete with baidu. the biggest company on the taiwanese stock exchange is said to be opening -- open to a bid from china. " reporter that the owner of chipmaker tmc says there is no reason to ban mainland money, and he would like to see easing on cross strait policies. taiwan has relaxed rules on chinese investment, but chip design is still off-limits. the chief executive of bhp billiton is flying to brazil today where prosecutors are demanding the suspension of the licenses of the mind that it operates. the call follows a massive mudslide caused by the rupture
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of dams at the iron ore project. bhp says it needs at least -- at least 15 people are still missing. >> we need to do a full investigation about things that may have happened in the past, but right now, my sole focus is very much on making people safe and thinking about how we can clean up the impact of this. let's bring in bloomberg news's david stringer. this stock took an absolute hammer he in london -- hammering in london friday. how is it doing in australia, and what is the latest on this disaster, as well? david: that's right. bhp shares are down in australia this morning, understandably so on the back of the news from last week, and bhp has been talking a little more this morning about the incident in brazil. we certainly know little more about what happened, though not
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necessarily why the accident happened. explained that the dams were three-tiered, three dams stacked on top of each other, at its joint venture operation in brazil. venture,, its joint they are monitoring that third dam. while the cause hasn't been established, we do know state prosecutors have said workers were raising the height of one of the dams when this incident took place. it is not yet clear if that is connected to this breach. bhp has also said that at least one person is dead. there are 15 -- i'm sorry, 13 workers unaccounted for and 15 local residents still missing. searches remain ongoing in brazil. awful.:
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what about the potential ramifications for bhp-violate? are they likely to face fines, or are there more drastic actions? david: that's right, all of those things are a prospect, and the first piece of action that will take place is in brazil. state prosecutors will request the suspension of the license. that could be followed by potential civil investigations, and some lawyers suggest potentially criminal operation -- investigations. it is likely they will be fined, compensation to follow. when estimate suggests the joint venture could face fines as much as $30 million. the cleanup bill is likely to be more hefty, deutsche bank saying that that alone could top about $1 billion. rishaad:rishaad: thanks a lot for that, david stringer joining us. coming up on the other side of the break, china's slowdown hits exports.
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attention is now turning to inflation and retail sales numbers. it's your head start to the week ahead. it's right after this. ♪
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let's rishaad: have a look at some stories making headlines around the world. we have a memorial service being held in saint petersburg for victims of the metrojet crash in egypt. the flight had just left egypt when it crashed on the 31st of october. u.s., french, and british officials expect a bomb caused the disaster. russia has not confirmed that but has suspended flights to and from egypt. and moritz are saying it is reviewing security procedures around the world. >> egypt is enormously important to us. honest, there are
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, notairports in the world just in the african or middle eastern region, where, if people wanted to do some bad things, they could do. indonesian aviation authorities say bali airport has reopened after again being shut down by ash from a volcanic. conditions remain unsafe. the volcano has stranded holidaymakers for more than a week. an event takes is in the spotlight again today as the --ld anti-doping agency [indiscernible] two other people were brought under criminal investigation in france on corruption charges. at what recs says has lost trust and credibility over allegations of bribery,
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extortion, and doping. getting back to what is going on as far as the data points this week. global chief economist joins us for our head start today. i can't understand why -- let's get back to the chinese 10-year yields, upi can't today. we've got an economy, which is slowing down, and we've got more calls for stimulus, i.e. the reduction of interest rates. what gives? >> the nonfarm payroll on friday were quite strong, so there is an expectation of rights. that will push global interest rates up. if you read the third quarter pboc monetary report, it was a beat. rishaad: it was a surprise given the trade numbers. mark: the trade numbers were ok p rich i has been running a pretty good trade surplus number
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for quite some time. -- the trade numbers were ok. china has been running a pretty good trade surplus number for quite some time. rishaad: looking ahead this week, it's going to be about this blowout number, the jobs in the u.s. mark: it was quite a shocker, 71,000.0 -- 2 it changed a lot of people's expectations. rishaad: should we begin questioning data in the u.s. given all we saw in october and september? mark: i'm not sure you question the data as much as the fed. i think the fed has been downright confusing. rishaad: well, the market seems to think, they are going to go in december. mark: the market is put in 65% on overnight interest rate swaps, the expectation for a
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rate hike in september. we still think january or february is more likely. you have seen the fed vacillate before, so if you get the market selling off this week and next week, a poor payroll in december, they might change. rishaad: why do it just beforerishaad: -- just before christmas? mark: it's not really fair, is it? it make sense if you look at janet yellen's history that they wait longer, and we think they will. rishaad: we've also got -- market pmi's in europe. there are signs of improvement, or are there? mark: there are signs of improvement everywhere. if you look at all the pmi data over the last two months, service companies, the financials, the telecoms, they are doing pretty well. it's the manufacturing side, which is been difficult. consumer growth in the u.s. has been picking up. same in europe. overall, the picture is looking optimistic. rishaad: your verdict?
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numbers continue to improve, alongside inflation figures. is not alation problem. you saw a little bit of a pickup friday on the average earnings growth in the u.s., but there isn't much sign of inflation anywhere. one caveat is that the energy price decline over the last year will soon start to drop out. that might cause some reversal. rishaad: having a look at china, industrial production, inflation is going to be very important. mark: inflation is the key one. the pboc is interested in the inflation rate. that drives their interest rate policy. they are still looking for more cuts over the next 12 months, and i think that's probably right. 1.5%, 2% is the target. rishaad: the neck a two to five was up, which normally -- nikkei which normally tells me the yen has declined. tell me, what are the prospects for japan? we have had decent pmi numbers.
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mark: we are optimistic with japan. for microeconomic regions -- reasons, we like the corporate reform is taking place and a lot of the changes in pension reform. you may get some extra additional stimulus from the boj, but japan seems to be doing quite well. rishaad: isn't that just throwing good money out the door? mark: it's very, very cheap. japan is the one country in asia that is not telling you there is an external the man problem. i wonder why. rishaad: yes, exactly. thank you very much indeed, mark. oppositionanmar's party supporters are confident after sunday's historic election victory. we are looking at the implications of their and abroad when "trending business" returns right after this. ♪
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rishaad: this is "trending business" coming at you live from hong kong and streaming live on bloomberg.com. myanmar's on opposition leader on song su chi are confident they won the country's most important election in decades. preliminary results have not been released, and officials say a final tally could take weeks, but the national league for democracy says it is in a good position. let's have a look at this with andrew davis. they thought that they were going to win. they are confident that they have, and no doubt, they will be celebrating if everything goes their way. andrew: the initial reports seem to show that the election was fair. theresn't seem to be -- doesn't seem to be widespread evidence of voter fraud. it's feeling the optimism that
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this time they are going to win, and this time, it's not going to be taken away from them. rishaad: which is what happened in 1990 when the military refused to recognize the results. is barreduu kyi because she has two foreign children. seems to remain above the presidency, which seems bizarre. andrew: it's going to be curious to see how that plays out. a lot will depend on how big of a majority she will get in parliament. the military has rigged the oppositionnst the and personally against her. they created this law saying you couldn't be president if your children or spouse are foreign nationals, created with her in mind. the military automatically gets 25% of the seats in parliament and gets to propose a candidate for president. there will be three proposals for president, one from the
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upper house, lower house, and military, and there is likely going to be a lot of horse trading once the smoke clears and we see who gets what. rishaad: absolutely, and the military-backed -- [indiscernible] they say they are not going to stand in the way of the opposition taking power, but it's another matter if they do. andrew: yeah, this time there is so much attention and pressure on them in terms of relinquishing control. if they lose the election, we may be getting ahead of ourselves, but i think they are going to be under a lot of pressure to respect the results, but you had the system structured in such a way that favors them within parliament and within the process of changing the part -- the president. it's going to be interesting to see how this plays out. there are a lot of ethnic parties that make it brought in in terms of building a coalition to put her over the top if she gets enough seats in parliament, but it's going to be tricky to cause the system is stacked in the military's favor.
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rishaad: of course, we will keep you abreast of the latest out of myanmar. looking at the next hour of the program, the indian prime minister is defeated in a key state collection. will it mean a change of tactics? we will go to mumbai next. ♪ buddy- nice place, nice car what happened?
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i just signed up with their free app. what's my credit score? your credit score is 650. that's magic! no, that's credit sesame.com you get so much more than a free credit score so do more with your score at credit sesame.com ♪ it is monday, the ninth of november and you are watching "trending business." taipei anded to mumbai this hour. raising expectations of more official stimulus. contraction leaving the government with fewer options. today,struggling again
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after having slashed its forecast. the stock down 40% this month alone. making history. of -- thetion opposition is confident of victory and the military says it will accept the outcome. includes that hashtag. a battle between strong gains in financial stocks and losses to the miners. generally, some of these equity moves. >> who can keep up with the shanghai composite? it is up by 1.2%. we have been seeing some strong edge coming through there, especially from the brokerage stocks. that means china will resume ipos by the end of the year after we have seen that bull market of the shanghai set -- of the shanghai composite.
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we've is still in hong kong. the hang seng is around one quarter of 1%. south korea currently down by about one half of 1%. japan's nikkei 225 is still really strong today, outperforming the rest of the region. i want to show you some of the main stocks that we are watching. that presumption -- that resumption of ipos in china helping some brokerage firms. --urities are slightly high citic securities high. banks looking strong. mitsubishi, u.s. j looking good. these are some of the losers.
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ceo flying to brazil in the wake of that mining disaster. its share price is lower. heavily due to that weaker gold price. resources having a good day up over 5%. rishaad: trade data out of china. pressure forthe more government intervention. >> it is looking rather dire here on monday morning. both imports and exports missing the mark by a very wide margin. in particular, take a look at exports. october,e decline in more than twice as bad as what economists were expecting. exports to japan down almost 10%.
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this release is more about the regional and global slowdown than about the chinese economy. about moren talking easing expected by the pboc. -- a number of easing measures but that doesn't help exports demand at all. it does not help with demand. take a look at imports because they also missed the mark. up by almost 19%. this is really painting a picture of chinese weakness. chinese demand for australian ira war was down for the first 10 months of the year. we did see a little bit of an improvement when it comes to foreign exchange. we have seen some really historic outflows ever since
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that august devaluation. funds getting out of china and seeking out safe havens elsewhere. does look like expectations of the evaluation have tempered somewhat. the pboc has been trying to put a -- has been trying to put a floor under its currency. picking up for the first time in six months. what is interesting to note, this happens ahead of that imf decision, whether or not they are going to add the wine. rish, what will be interesting is what happens to the yuan after that decision is made. equities in china on 11
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week highs today. new share offerings to resume later this year. exactly?oing on here zeb: it came amid that $5 trillion equity route. the regulators a bit more confidence. that is why, by the end of the year, ipos will resume with some rule changes to make it easier for investors, companies existing, and for the market overall. positive,ust turning swinging between gains and losses. the chinese market doing particularly well. the financial stocks have done particularly well. these new share offerings come as the securities regulatory
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commission deems the market is healthy enough after that route in the summer to sustain new listings. seevidual investors will some changes that will reduce what they need for ipos. foreign investors not necessarily convinced. we haven't seen a huge amount of foreign inflows. convinced that this rally that we have seen. there have been some notable predictions that this market could see a big drop by the end of the year or at the start of next year. then there is this larger issue of valuations. how chinese companies to list on the a share market our values.
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valuations are 22 times earnings generally. that guaranteeing's gains on the first day. the csrc has come up with some tangible rule changes to make the markets more accessible and transparent. that is what foreign investors will be watching. today in singapore, one here in hong kong. >> we have china international capital corporation starting to trade in hong kong this morning. it rose more than $.10 so far today. at $10.28.
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plan to use the money to expand equity sales and trading. , whichs also jumbo jumped as much as 58% on its debut today. it raised more than 28 million u.s. dollars. it is the biggest share sale in singapore so far this year. some cornerstone investors include capital management. shares are taking a hit afternoon as it is suing five former executives in connection with the former accounting scandal. toshiba said it was investigating accounting rate -- accounting irregularities back in april and has lost about a third of its market value since
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then. earnings at the weekend showed 38% in the three months into september. toshiba's consolidated forecast four 2015 has-- not been released. that income is now expected to come in at ¥91 billion, about $750 million. this is under investigation because of the building that is tilting over. it accounted for 40% of the operating profit loss last year. last week, it was found falsified data from the supervisor that had worked on the building that triggered the investigation. to check the condition of more than 3000 buildings and worked on over the past 10 years.
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they said the fallout from the false data is too difficult to estimate -- that is too difficult to estimate has not been included in the revision. on the: coming up later show, a major setback for the indian prime minister. next, another election, this time in myanmar. the opposition says the army will accept the outcome. ♪
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>> brazilian prosecutors are planning to request a suspension of the operating licenses for a mine. for search continues victims of a massive mudslide that was triggered by ruptured dan amps in brazil.
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s. by ruptured dam exceed $1sts could billion. the indian prime minister has suffered possibly his biggest setback in office, losing a crucial election. of seats.nts one 73% the result will embolden his critics. analysts expect stocks and the rupee to fall when trading begins later today. supporters of myanmar's opposition leader suu kyi are confident. luminary results haven't been says it ist the nld in a good position. won an election in 1990 but the military ignore the result.
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the current president says him and the army will accept the outcome this time around. get more on these historic elections. bridget walsh is a senior research associate at the national taiwan union. what is the mood like on the streets? >> i think there was kind of a euphoria last night as the initial luminary results were coming in and people had experienced the feeling of getting out to vote for the first time in their lifetime for most of myanmar. this morning, it is a bit of uncertainty. at the same time, there is expectation. they are hoping that the results from the people's voice is articulated in the poll will be heard, but they are not sure. they are waiting and seeing and they are used to this. rishaad: they certainly must
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have a lot of patience. it seems this time, unlike 25 wins,ago, that if the nld they will allow it to pass. or will it be more complicated than that? bridget: i think it probably will be complicated. they have in the system for themselves. they had 25% of the seats, they control key positions of the national security council and they still control the election commission. there are some initial concerns about the electoral process. these things are still playing out and they will be playing out in the next few days. they have constitutional procedures, and one of the important elements is that suu
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kyi is barred from being president, so someone else will have to be president by proxy or there will have to be another set of negotiations. she has declared that she can be above the president. what does she mean by that and as she clarified her position? bridget: she hasn't, and i think it is best for her to clarify it. people have analyzed to comparing her role to sonja gandhi in the congress party. what she seems to imply was that she will be these -- will be the main person to make the decisions. the question will be whether or not that is acceptable to the military and the ruling party. i think this is something that is going to play out in the next series of months. we don't's -- we don't expect a government here until possibly
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as late as march. they have to elect the president from legislature. to have wongy are's many seats, even ones that aren't affected. is in line with some of the polling that was done previously. 67% to get a majority to control the process in the system. how fair has the selection been? most commentators have this consensus that it does seem free and fairer.
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bridget: there are three different sets of issues we look at free and fair elections. manipulation,tic consistent with serious problems. you've a situation where rural votes are weighted heavily, the military facilities have a lot of control in terms of advanced course, theof constitution ensures that the military gets 25%. the second areas have to do with kind of administrative problems. i think the big problem has been disenfranchisement on the voter list. very large group of populations. these other questions that people are asking now in assessing it.
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i think most people feel the .ystem has had minimal aspects vote buying did occur. we see that there were some attempts at fraud, but we have to wait until we see the actual results. advanced voting, the voting that comes particularly from government service and the military, which is not really observed by outer polling agencies. the second is the election commission controls all the assessments of the complaints and rule out different candidates. numbers -- this is why these things are being watched very carefully. i think this is an election that is much better than people far,ted, and i think so
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people are very proud of being able to cast their votes. it was a peaceful and relatively efficient environment. rishaad: that you so much for your thoughts. up next, toshiba taking action over the accounting scandal. three former presidents are being asked to pay up. ♪
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rishaad: this is "trending business." a trading halt today. the company announcing plans to raise $2.5 billion. the oil and gas producer wants to cut its debt load. tos will also sell half $1 billion worth of shares. videoa stepped up its streaming strategy and agreed to by youtube like site yoku. -- youku. alibaba already owned a minority stake in youku and a full
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ownership will help it compete with baidu and tencent. he also invested in the latest vision possible film. the biggest company on the taiwanese stock exchange is said to be open to a bid from china. chipmakermaking of tsmc says there is no reason to abandon mainland money. the largest investor would have to pay about $30 billion for a 25% shea -- 35% stake. suing five former executives in connection with the accounting scandal that brought the company basically down to its knees. joining us from tokyo is what did's pat bell -- we learn from that press briefing?
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toshiba is taking five former executives to court. that is three former presidents and two former cfos in their involvement of a scandal over seven years. toshiba is seeking ¥300 million, about $2.4 million. the company has already set potential billion for fines from the regulators and it lost a third of its market cap to the scandal broke in may. this is only the first step in having to address the lack of trust for company has with the markets. toshiba have identified another 30 lower-level executives but they are staying on and just facing disciplinary measures. rishaad: the earning results are
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a bit of a mixed bag. there was an operating loss because of the write-down and logistics unit, but the company was able to report an increase in net income because of a selling off of their holdings in japanese medical equipment manufacturer. it is part of the company's efforts to shore up its balance sheet but we have yet to see therefore your forecasts. rishaad: thanks for that. up next, taiwan and china shake on it. taiwan's opposition under renewed pressure. ♪ we live in a pick and choose world.
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stories. china's foreign investment bank has jumped as much as 10%. cicc and other companies have ipo up 46% from the same timeframe last year. , theba shares plunging
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company suing three former presidents. they are also taking legal action against former cfos. it is japan's biggest accounting scandal since olympus four years ago. trade figures from china expected to add to the stimulus. 7%.rts were down that left a record surplus of more than $60 billion. be data-heavy. japan going on a lunch break at the moment. a positive morning session there. reporter: a very positive morning session in japan. lent this, a very
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strong performer, second-quarter profits beating expectations. toshiba, one of the worst performers today. elsewhere, we are seeing weakness in australia, particularly in mining due to the disaster in brazil. korea's indexes weaker today. mixed movement from hong kong, they were negative from us of the morning and they are now pretty flat. we had the debut of cicc in hong kong, very solid. .hanghai composite up by 2% every sector is higher on the into today's strong gains in the financial sector because of the ipo's. we have seen equity reverse from
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that $5 trillion equity route we saw. of banks doing incredibly well today. up by around 6%. also, brokerage firms doing incredible. many of them hitting their 10% daily limit today. byancial sector up by 5% led orient, up by 7.2%. another ipo we are looking at in singapore, we have seen jumbo -- theline, up 48% restaurant chain having its debut. numbers disappointing often little encouragement, but they can ramp up pressure on the government to do more. when you look at the
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export number, more than twice that is what economists were expecting. looking at export markets like japan and hong kong, exports down by more than 11%. japan, almost 10% loan. there is not much they can do about this. that doesn't help export demand because that is the regional, global slowdown story. imports tells the story of the chinese slowdown. the first 10 months, down over 25%. australia really suffering. a number of partners suffering, as well. this set of numbers will give rise to expectations of whether
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or not they will get help. is a biggielation this week. it is about the flow of money. this is a surplus of $60 billion, that is massive. this flow of money seems to have halted of it. is this the calm before the storm? some people were panicking. reporter: we saw historic outflows from china. it is not really clear why that is happening. we have seen the yuan stabilize. expectations have been tepid. this could besaid the cause of that reserve requirement. they are trying to diss incentivize traders.
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seeinguld be why we are a decline in outflow volumes. interestingg to be is what happens after the ims makes the decision. it is in their interest to keep the currency stable. after that happens, it will be interesting to see the trajectory for the yuan. , when thate more happens, that divergence will heighten expectations for capital outflows because the incentive is to seek higher yields. rishaad: it was a handshake that took 70 years to happen and it lasted for over one minute. china and taiwan meeting face-to-face for the first time since 1945.
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what was achieved in this historic summit? he was usually symbolic. >> it was. i think it meant a lot to the people who are watching on both sides. wereinly, people in taiwan glued to their televisions on saturday. terms of thein economy, nothing much in terms the aaib.embership in the crowning moment in ma ying-jeou's presidency, assuring in peace across the strait and the signing of lots of agreements. rishaad: what does this mean for the upcoming election? the incumbent cannot stand having already served two terms.
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there is some speculation that the purpose of the meeting, one purpose or one outcome is that the 92 consensus has been limited or the emphasis has been put on the one country aspect. there are different interpretations of that being deemphasized. the front runner in the election from the opposition party is more pro-independence, is getting handed this framework of one country. the dpp on paper does not support this. let's check on some of the other stories. lufthansa canceling almost 1000 flights today. actions takey seen
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place in frankfurt and dusseldorf. 100,000 passengers are expected to face disruption. 70% of operations will be unaffected. lufthansa says they are always ready to resume negotiations. said they mentioned irregularities in volkswagen. the financial fallout of the scandal could be more than $9 billion. the lord -- the world's biggest shipping line said that trade is growing at a slower pace than thought. they say the engine is slowing down and trade is significantly lower than normal. they pointed to the slowdown in weaking markets and commodity prices. sam dos remains in a trading
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whole. the gas producer was to plug a hole in its finances, cutting its debt. we are in sydney with paul. shareholders will be able to apply for one new share for every 1.7 that they hold, which should raise some money. live will be another placement -- santos will also sell the 35% stake in one of its gas fields in victoria, giving them three point $5 million to pay down debt. things have not been going to well for most companies involved in the energy sector with prices for oil down 40%. santos is off 54% in the last 12 months. that chairman announced
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they are confident that the steps taken today will drive better returns for shareholders. there is also a suggestion that future dividends are going to be linked directly to earnings growth. as if that wasn't enough, they have also announced a new ceo, david gallagher. david knox not really having a chance to respond to all of this . rishaad: thank you. trending business continues in two minutes. ♪
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reporter: a memorial service has been held in st. petersburg for the victims of the fly crash in egypt. a crash on october 31, killing all passengers. french and british officials suspected bomb caused the disaster. russia has not confirmed that the they have suspended all flights to and from egypt. emirates says it is reviewing security procedures around the world. enormously an important market to us. to be honest, there are many justrts in the world not in the african or middle eastern region where if people wanted to do some bad things, they could do them. reporter: indonesian aviation authorities say bali airport has reopened after being shut down by ash from a volcano.
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on monday flights are canceled because conditions remain unsafe. eruptions has been disrupting flights and trapping holidaymakers for more than one week. athletics in the spotlight again as the anti-doping agency releases an investigation into claims of systematic cheating in russia. the report comes after the were puta a president under criminal investigations in france under corruption charges. athletics has lost trust and credibility over allegations of bribery, extortion, and doping coverups. rishaad: we are having a look at airways. qatar the gulf carrier could seek 49% of [indiscernible] based on the offer price. indigo was valued at more than $4 billion.
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it is worth five times more than jet airways. our middle east editor has more from dubai. i could not take indigo for a simple reason, indian authorities have restriction on airlines taking part in ipo's. fundn only be a sovereign or an outside investor. for us, we are owned by our countries sovereign fund. longert would have taken and they were in a hurry to do the ipo. reporter: so you cannot participate in the ipo? shares the [indiscernible] -- i thinkk we are
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it is very crazy. what difference does it make you it is the same at the end. reporter: the ipo might be a lower price. >> you never know. indigo is very well-run them profitable. we would have loved to be part of it. reporter: any inkling at what you are looking at? >> we can go up to 49%. rishaad: the dubai air show has seen a wave of innervation. companies investigating whether 3-d printing can lower production times. they had seen the world's largest unmanned aircraft built largely by 3-d technology.
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>> i was the engineer that did a lot of the actual assembly of the aircraft. this aircraft went from design to construction to test flight in around two months. this aircraft has a nine foot wingspan, weighs 30 pounds, has a jet engine, and is capable of speeds of 150 miles per hour and. was designed to showcase how quickly we can go from the design phase to building and test flying. it will not be available for sale. we were able to help designers build lightweight structures. as well as enable design freedoms that are not possible in other manufacturing processes
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and we're always trying to help the aerospace industry. next, [indiscernible] . we are headed to mumbai for the details. ♪ rishaad: let's have a look at
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what has been going on in tokyo. there are having their lunch break at the moment. we see exports lifting on the nikkei to 25. the dollare about as strengthened. mining down 1.8%.
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in singapore, let's have a look at the times index. .here we go there not been as bad as it has been of late. in hong kong, having a look at the hang seng index. again, splitting between gains and losses. let's have a look at some of the stories we are following in asia this week. surge in sales. have maintained growth by using games and content to keep its messaging app central to the daily lives of many users. also on tuesday, india's biggest airline making a debut, indigo raised nearly half $1 billion during the ipo.
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first by ans the indian airlines has 2006 and will allow indigo to grow its fleet. wednesday, alibaba's single day sale, this is when customers can enjoy discounts. they sold more than $9 billion worth of transactions during last year's event. last week, it was announced that they would look into complaints from rivals about their sales tactics. australians prime minister meeting in jakarta on thursday. period of a strained relations because of trunk traffickers. get a torived to exacerbate tensions -- they will hope to reset the relationship. let's have a look at some of the events at the top of the agenda for the u.s. week ahead on wall
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street will have the market continuing to brace for a december rate hike and later friday's far stronger than expected job data. a fresh round of data will receive more than usual the amount of attention as we do they count down to the said's december meeting. according to economists, retail is expected to pick up and november from a month earlier and that is [no audio] continues to spend and that is helping the economy. we are expecting the u.s. consumer incentives in november will be on the rise, according to a survey of economists. republican candidates for president hold their fourth primary debate at the current election cycle. on tuesday, mcdonald's holding its and acid or meeting and webcast during which it expected to focus on turnaround efforts which is justified to have traction. on thursday, the latest data on jobless claims were investors
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and policy makers will be looking for confirmation on fridays strong labor report which again seems to signal that is the feds were say, we are back at full employment, the data drops to 5%. among companies that will be reporting earnings, we have cisco, priceline. about 74% of s&p 500 companies have beaten earnings while only 44% have topped sales forecasts. modi's is being touted new low. in a key state of bihar, the prime minister picked up 24% of seats. we are live in mumbai. was it't a good result, for prime minister modi? all, it was aat crushing defeat for his
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government in the crucial north indian state of the heart. --bihar. -- bihar. the dominance of the government as a ruling has undoubtedly putting more pressure on the government to focus on governance and development in the next 3.5 years of his turn. investors would have been becausewith the victory they have to improve their strength in the parliament where it has a weak position than that is creating a major roadblock as far as getting some crucial political and economic reform pushed ahead. reallyisive which couldb -- the heart as investors are looking at the continuityi of the reform process under the modihar government with increasing skepticism and it is highly likely that the opposition will make it more difficult to modi
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going for just as we start the new session, back to you. indeed. thank you, that is it for trending business . we will recap the stories of the day so far, next. ♪
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rishaad: this is the scene across victoria harbour in hong kong. that is the international commerce center. you are watching asia edge. a look at our top stories. the index at its highest in a decade. chinese stocks hitting high as share offerings resume this year. is this the recipe for success?
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shery: also coming up, the world's biggest shipping line says trade is sluggish in the global economy is growing more slowly than experts think. ready, set, indigo. qatar airways say they are keen on the stake in the carrier and may spend $2 billion to secure it. 3-d printing takes flight, a special report from the dubai air show. keep an eye on the markets, the shanghai composite extending its run, rising to an 11 week high as the government resume ipo bys to the end of the year. 225 having aei positive morning session

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