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tv   Trending Business  Bloomberg  November 10, 2015 9:00pm-10:01pm EST

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the first commercial plane and half a century for japan. do follow me on twitter. markets, anticipation today. we have an update. >> hopefully some encouraging data out of china. two important pieces of data coming out. china iso do with what spending, consumer spending due out in a couple of hours. most markets are down. taiwan is 1.2%. singapore rejoining the trading
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session. guess,did have to take a one group of losers, commodity producers. let me show you how that looks. let me find my asia chart for you. there you have it. don't let me down. here we go. note hereo, just a comments from david goldman. call, not sure. compositeng shanghai to double in three years. rates of return 10% to 15%. shanghai is not a typical
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market. it doubled over the past eight months. i will leave it there. rishaad: talking about these economic indicators from china, should give us ideas about whether there will be additional government stimulus. our chief asia economics correspondent, what is the number people are looking at question mark -- at? >> this is the quarter that economists are hoping to see stabilization. they're hoping to see all that fiscal stimulus gain traction's, pick up in retail sales, positive consumer story. rishaad: it is singles day as well. is a one-off, but does give an idea of sentiment. of thes an indicator
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rising levels of consumption. that is what it is all about, getting consumption to drive growth. the strategy is succeeding. the consumer is not spending ,nough to offset manufacturing exports, and coal-fired industries. we do have direct foreign data.ment and credit if we see a pickup or stabilization in loan demand, they are getting traction. if not, more chatter about rate cut's. rishaad: talking about retail sales numbers, we have singles day in the frame. that is what we have been talking about. are we going to smash last year's record? we are close to coming to that
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number. >> i can't hear anything. rishaad: steve said, he can hear anything. we will restore communications with him. let's look at those stories making headlines elsewhere. we are looking to japan, the skies over there, the newest domestic jet making its maiden voyage. jetmitsubishi regional taking off earlier this morning. its maiden flight coming 50 years after the last new passenger plane. delays.een beset by the jet wille aisle compete with canada and brazil.
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it can carry 92 passengers. j.p. morgan expecting demand to increase as more people start to fly. attention to the imf currencyhe reserve basket. an outright yes is the most probable according to the biggest banks. china has ticked most of those boxes there. china wants to join the currency basket to underline growing influence in the global economy. j.p. morgan chase thinks it is a done deal. standard chartered saying something unexpected and surprising would have to occur for china to miss out on approval. it could be the plot of a bond movie. eight shadowy web of stock
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manipulators and online considers. american prosecutors described a widespread, multiyear criminal enterprise that helps financial companies steal information. suspects have been identified, conspirators in more generateden countries hundreds of millions of dollars with stock schemes and online gambling. the hackers also falsified passports and took control of a new jersey credit union. the global network stretched from the middle east to the u.s. itself. will try to get you back to the singles day headquarters at alibaba, which g.s moved to beijin
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where are we now? have you found a bargain yet? no time to shop. i'm just trying to hear everything happening. we are here exclusively this morning, where allie bobbitt is using this as their nerve center for singles date shopping extravaganza. it's a getting a lot noisier. we have just topped 8 billion u.s. dollars in the first 10 hours of shopping. on this14 hours to go day of shopping nirvana, if you want to call it that. if you hate shopping like most guys like myself. yuan.s 51.5 billion
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i think we will a clips of that. u.s.year was 9.3 billion dollars. many economists and retail analysts are saying this year's number could reach $12 billion. this is a much needed boost for the chinese economy. you mentioned those numbers will be coming out, downbeat on the prospects short-term for the economy, so this will give alibaba a boost, as well as all the retailers. carmakers like buick, cadillac, audi, they were topping the charts as well. everything from iphones to underwear to baby food being sold online and what has become the biggest shopping day, it could sing cyber monday, whatever you want to call it, in
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the united states. and we will beay live all day. we have an interview with jack ma later. stay tuned. rishaad: thanks, steve. control.mission that alibaba interview coming up at 10:45 a.m. hong kong time. reserve currency status. that is when "trending business" continues. ♪
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on a tearhe dollar is again, six-month high against the bureau -- euro. the fed is closer to lift off.
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thanks for joining us this morning. let's start off with the possibility that the a miss allows the yuan to become part of its basket. how can they do that? it is a country with capital controls. it is not freely exchangeable or fully convertible? the full convertibility is not part of the criteria. of criteria in terms qualifying is widely used and freely tradable. in some sense, china has made some progress on these two criteria. rishaad: the country still has capital controls. ist is something that
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stipulated as being part of the inclusion criteria? i think china is making progress relaxing capital controls. in the near term, it is not realistic to expect a full dismantling of the capital controls. think there is a wouldhance that the yuan qualify for sdr status later this month when the imf makes its decision. rishaad: let's talk about the global economy. world, one part of the the united states, the u.k., tightening monetary policy and everybody else loosening. how does that play out? support thet will sterling.
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the situation is similar to the situation in the u.s., where the labor market has made significant improvement. nobody is surprised that the markets will reprice the u.k. to something closer to the first half of this year. that should support the sterling. theike the sterling against euro. somewhat neutral with the sterling against the u.s. dollar. that's probably priced in. what about the dollar? is this rate hike priced into the u.s. dollar?
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>> more or less. 70% or 80% priced in in terms of fed liftoff in december. what the market is not focusing on is next year. in that sense, the market is still complacent. in terms of the rate hike, then there is more room for the dollar to rally against the majors. rishaad: absolutely. of feelingthat sort that the emerging markets are having to take the front of it. i'm talking about emergent market currencies in particular. >> i think they are likely to buck the trend. now, china is enjoying a
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but somewhat, overtaken by fed rate hike fears. there is some stabilization of the china growth picture. we have to be concerned about so down in china long-term. therefore -- rishaad: with the slowdown in china, that has impacted the new zealand and australian dollars. are we approaching levels of growth where they are comfortable, or with a like to see further weakness? terms of -- more comfortable with the australian dollar. we've seen a large adjustment of the australian dollar and the
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new zealand dollar. they have weakened significantly. rate cut's are starting to work for the australian economy. in the near term, the central banks are pretty happy with the situation, but i see more room for rate cut's in new zealand relative to the australian dollar. rishaad: thank you for joining us. the stories making headlines. myanmar remains in postelection limbo. the opposition warning of potential tricks. the national league for democracy criticized the election commission, saying delays could be intentional. the party expects to win, with some saying it could take 80% of the vote. international observers say the process has been better than expected. ,> it was a genuine election
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credible election. the country has come a long way. for good reasons, we will -- if we deeme more appropriate. >> china's top diplomats has asked not to raise the issue in manila next week. the prime minister highlighted beijing's objections to any confrontation that could embarrass president xi jinping. relations have soured over islands in the south china sea. for other asian nations are involved. dismissed claims of state-sponsored doping, saying there is no evidence. the world anti-doping agency doctors,ers, coaches, and security services conspired to conceal. it is considering banning russia athleticinternational
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competition, including the olympics in rio. are politically driven statements. new zealand central bank issuing a warning over the prospects for property details are right after this. ♪
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india's prime minister has relieved restrictions on foreign investment. he is seeking to open up the economy, but faces political headwinds after a state election defeat. opec considering raising output to take into account the return of indonesia. to 31ay it may be lifted million. the cartel has abandoned its traditional role of supporting prices as it defense market share. the reserve bank of new zealand saying the housing market could suffer eight damaging correction. -- a damaging correction.
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auckland one of the most expensive cities on earth now. there are huge risks here, aren't there? >> there certainly are. a house in auckland now costs nine times average income. is sitting on the in severity. ends of the earth. this is a 10 minute drive from downtown. it is an urgent need of renovation, ugly carpet, 1.12 million new zealand dollars. that is just under half a million u.s. dollars. the constraints are on the supply side. there is a warning of risks on the demand side. ,hat if migration flows reverse
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mortgage rates weekend, income weekends? sydney, thank you in looking at auckland's biggest city. is worth $45 billion. they sold 80 million smartphones this year. that is up from last year. spoke about their operations in asia. >> it started with our global business two years ago in hong kong, taiwan, and singapore, malaysia. then we entered india and brazil. 2014 was just getting started. of our the beginning acceleration, particularly with india ticking in. it is -- kicking in.
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starting to form a meaningful part of our business. of the business is still smartphones versus other services and accessories? >> smartphones are the flagship product, but we have a significant line of business in consumer electronics, smart devices, power banks, audio products, headphones, speakers. >> which ones are doing the best? >> probably our most popular device or smart device is this one, our first wearable product. sell 1.5 million a month. it tracks your exercise with a battery that lasts 45-60 days. it's doing well in china and
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around the world. it will sell out in the second in india. >> what kind of special promotions are you offering in china for singles day? what does this event mean for you? day is one of the biggest days of the year for e-commerce and china. as the third largest e-commerce company, we have to be ready for this. we have prepared 2 million smartphones to sell them in one single day. we've prepared a bunch of new accessories. we are launching a new wearable with a heartrate monitor. we are launching professional grade headphones, a new power bank, and other things.
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♪ rishaad: a look at our top stories. markets rather flat. tuesday's week inflation figures. an online sales event. sales closing in on 9 billion u.s. dollars. the world's biggest bank think the imf will be granting china's currency status.
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they say they have fulfilled most of the criteria. the basket tooin underline its growing influence. plane hasw domestic completed its maiden flight. the mitsubishi regional jet has been beset by delays and needed expertise to iron out problems. canada andpete with brazil. in the the morning session in tokyo, let's look at what's going on. we are in a state of suspended animation. a perhaps everything just little bit more -- when china releases regional sales and factory output. , we do have car
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sales coming out. you have fairly important metrics out of the chinese economy, especially consumer spending, which is where the government once to see it. isgles day, apple andipating in single stay, it has been doing quite well in china. said, apple, there is a note from credit suites. the short of it is that the thinking is apple may be pulling back from its components suppliers here it -- suppliers.
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shares are down about 1%. tencent, two point 5%. i won't get into details. sales up 35%, not bad. other big tech name a part from alibaba. a jewish here in hong kong, the biggest one, expecting first half profit to drop 50%. it is a dire warning. visitors from the chinese mainland are going elsewhere. parts ofesh out other the market for you later. the hongthe launch of
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kong-china stock connect, and now it is disconnect between mainland investors and the rest of the world. valuation widened as money pulled out. chinese investors piled in. growing skepticism abroad. >> here we go again. the chinese investors will not be deterred from a bull market. questionable whether this is a market that is sustainable, but chinese investors are quite speculative and piling back in. that $5 trillion stock market route. 25% up from the late august lows. enthusiasm. stock that's made
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with broad money is up the most as well. we are seeing this return of enthusiasm to the market, which means that ah premium is decoupling. it is up 40%. to the sameompared companies listed in hong kong. this comes as foreign investors are dumping out of the market. 16 days of foreign outflows. off whore being sold are freaked out by worsening fundamentals. rishaad: we thought we would h premium a a- disappear. others are close, but others are diverting. >> some shares are trading at a 300% premium. many analysts are saying it is
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time to take profit because we don't know where the market is going from here. rishaad: they have been seeing this for some time. >> it is like groundhog day when it comes to the chinese markets. a look at what is going on in japan with the much delayed the messick jet making its maiden flight, 50 years since they last introduce a passenger plane. we are at the airport where it all happened. what is the atmosphere there are like? >> we are on the tarmac now. we just saw the plane land. there are hundreds of people here. there was a big round of applause when it touchdown. people are gathering around. there is a sense of excitement going on. rishaad: how significant is this for japan? well, japan is very good at
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engineering, developed lots of cars, toyota is a big name. hitachi has sold high-speed trains to the u.k., new york subway. they haven't been able to master the jet side of it. not a whole plane. it has been 50 years since it actually had a passenger plane of their own. today was the day it took off. the small jet market and a new area to develop. they have to get some orders. what is happening next? >> this is the first flight. they have now thousands of hours of testing, make sure that everything is working fine. in first delivery is due
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2017, but it will be a year and a half before we see this flying commercially. as you mentioned, delayed significantly, three years be watchinge will closely, and i will be keeping an on it to make sure that everything goes to plan or if there are more delays. rishaad: thanks. first passenger plane japan has launched and 50 years. let's have a look at other stories. another chinese company going bust. it will default on the local bond payment after shareholder disagreements it derailed new financing. it is the six company to renege. th to renege. it says it can't obtain the funds to make payment.
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a setback with investors advised to reject the $12 billion buyout , an all stock bid to take control of holdings. our assets shareholders have been advised to hold out for a better deal. if rejected, the company must wait another year before a new approach. aerican prosecutors described widespread criminal enterprise that act companies and stole information. toee suspects are tied hacking to j.p. morgan and others. they generated hundreds of millions of dollars between 2012 and this year by manipulating stocks and using trading accounts under false names. -- a look atcent tencent. we are here to break down the numbers.
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what are behind these figures? it's about gaming now. it's about finance. content.t more online it is what consumers want in china. tencent saying it has reached over one billion users now. at the end of september, sales increased 34%, $2.2 billion. to $1.2me up by 32% billion. revenue at its value added services unit, gaming, messaging , 28 percent, but you saw a very rapid rise in online payments. 200 million accounts. , which means it is easy to purchase things.
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even transferring money to each other. not just buying things from tencent. ubiquitous.oming tell us about advertising. u.s.venue doubled to 770 million dollars. that is part of the huge growing demand for online content. in china, since cushion tv is not widespread. pay forcent does is it rights to have online streaming for hbo, nba, and the complete james bond franchise. from those programs , revenue, and that's how it works with tencent. ways toways looking for find new content and deliver that to chinese users. rishaad: thanks a lot. we have to take a break.
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lending a hand to young jobseekers forced to look elsewhere. we are headed to seoul, korea for the details after this break. ♪
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headlines.ies making a court hearing has begun in thailand over human trafficking, -- including army generals and police officers expected of smuggling migrants. thailand launched a crackdown in may after the discovery of mass grave's new the malaysian border. witnesses were brought in and the trial could take years. the time prime minister has revoked the state of emergency.
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the maldives prime and esther has revoked the state of emergency. a state oil company only has enough left for emergency vehicles. supplies trying up since the border with india has been blocked. around 50 people have been killed in southern nepal during protests over a new constitution. , and nepalonated airlines is still flying after bringing in its own supplies. rishaad: south korea jobless rates fell to three point 4%, the lowest level this year, but youth unemployment is high. it's pushing some jobseekers to look overseas for work. let's bring in our bureau chief.
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why are young people struggling to find jobs? there's a bunch of stuff that is really hurting the job market for those 15-29. one big factor is there was a ago.boom a generation the economy is slow, 2.5% growth rates for this year. that's less than one third of what it used to be in the 1990's. the export market that drives the jobs is down because of china. conspiring against the young right now, so the government is doing all they can , basically saying that if you can't find a job here, we will find you a job elsewhere. korean: is the south government concerned, worried
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about losing youth talent? now, but if right the numbers keep growing, this does not bode well for the , wherent's initiatives she is trying to inspire startups, entrepreneurship, and of course those are driven by a young, up-and-coming talent. if more and more are going overseas, it could be a brain drain. it could hurt that initiative. thank you very much. it joining us from seoul, korea. we have to take a break. on the other side, purchasing power changing shopping habits , singlese consumers they sales are expected to hit new highs. ♪
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♪ china's biggest spending spree, singles day, is well underway. goldman sachs saying chinese millennial's represent more than 400 million, and they make 40% of purchases online. sachs joined by goldman chief china strategist from shanghai. thank you for joining us. what are you making of it all? >> thank you for having me here. , the singles day is a very important event and china, and especially when you think about the are choosing power from chinese millennials. we have to recognize that chinese millennials have
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different consumption preferences relative to their parents. millennials are better educated, more globally aware, and they have the heightened incentive to spend on entertainment and travel. importantly, they are making 40% of purchases online, so we view the upcoming singles day event as a big event in china. rishaad: this represents the future, the future of the chinese consumer, or is this just a one off every year? don't think this is a one off because on a structural basis, online will continue to gain mark share -- market share from off-line. online represents 11% of total china retail sales. we think that ratio will go up to 20% by 2020.
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it is a structural trend for sure. rishaad: as structural trends go, it is going slowly. it will look entirely different differentars time, a china and chinese consumer, correct? >> yes, and that is why we have been conveying the concept about a new normal or investment strategy in the new china segment. view, the new normal means that the absolute growth rates in china on a trend basis will come down 6% over the next 5-10 years, but at the same , lestthe growth drivers investments, less exports, but more consumption. we think growth quality will be enhanced, meaning less , and aion, pollution
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better profile in china. rishaad: a quick word on how investors should position themselves. have they done so? is this all priced in in certain industries? >> we think, no. one of the recent announcements has been to look at 3800 chinese companies financials. industry,e them by and then we select those which have delivered topline growth with a low correlation with gdp growth. when you think about new china based on our definition, it still managed to grow topline by 35% and bottom line 47%. one of the major china push backs is that these stocks are
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trading at a high valuation. which is true on a pe basis. by 25 times pe. when you think about the vibration from that perspective, earnings growth perspective, old china is one. from that same point, these growth potentials are well reflected in equity valuations. rishaad: thank you for joining us. , singles day keg those on the internet busy buying. there is a lot of reaction in the form of social media. we have been keeping an eye on that. >> we know money can't buy you love, but it can buy you bargains. there has been a lot of reaction on social media. telling,perhaps most lots of things coming
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their way. some upset they won't be getting what they are looking for. a lot is sold out quickly. others saying that we should remember what this date is about. it is a day for the singles, so cheers to them. a big day for retailers, too. we have some of those incredible figures. in 24ear, $9 billion hours. some american users flabbergasted by all this interest that we will see singles day surpass cyber monday and black friday. they are trying to explain it to the global audience. that singles day is not exactly what it sounds like.
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on bloomberg.com, facts and figures behind this day, jack ma making it all about shopping. how it went to a consumer phenomenon. rishaad: thanks. let's have a look at the markets trading at the moment. , incrementalanghai gains and losses at the moment. the composite off by half a percent. session, a slight fall in the morning. a slight fall in tokyo. sydney, they are both on their way up. trading around the psychologically important 6000 level. straits times index of doing
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nothing. that's it for the midweek edition of "trending business". ♪
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>> from our studios in new york city this is "charlie rose." charlie: we have the executive editor of the "new york times" here. it is a top position in the newsroom. he took over in may of last year, succeeding jill abramson who was the paper'first female editor. he became the first african-american to hold the post. the digital era has disrupted the business of journalism as many of you know and it has presented challenges and opportunities. many traditional news organizations have reduced their staff in face of significant competition from digital outlets. the "new york times" has with stood the industry wide downturn. la

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