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tv   Asia Edge  Bloomberg  November 22, 2015 10:00pm-11:01pm EST

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possibly be more at a triple b. this hour, moving the goalposts. moving the goalposts despite after eight years of planning. art attack. a new national gallery throws owcasing doors, sh the best of southeast asia. we will be live first defeat. peek. for a sneak more on thisnd sunday poss addition of asia edge. let me show you what has been happening. we have seen a surge in the valley of-- we are now closer to 106. let me go on by one.
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dollar yen. weakness in the japanese currency. 0 of 1%. we don't see reaction from japanese equity market. it really looks like-- we are going to the other major currencies. the equity session looks like this. most stocks are on the way out. weakness, some of these oil prices in hong kong, we are -- about a 10th of 1%. everything else, with the exception of these mining stocks, have a look at this. we're down by this much.
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going into without detail, there you go, basic resources, mining stock is about 2% lower. look at the space metals. koppers at 4500. $4500.r is at nicholas at a 12 year low. given some of the cuts when it comes to china. we are higher by most metrics. that really comes down to the growth. back to you. rishad: hardly surprised to see the, these are weak. venezuela says that it could go down a lot more. then,-- what is really the deciding
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factor when it comes to oil today? ben: you seen it across the board. commodities are down. that is largely because of the dollar. the dollar is driving. and otherng oil commodity prices more expensive. it is less attractive to investors. that is essentially, we saw some comments over the weekend. about the fed and the possible rate hike. the dollar goes up. rishad: the opec meeting is a bit of a dilemma. they are going to discuss production ceilings. they will also discuss their whole strategy. it is not unusual for companies or countries like venezuela to come out for a meeting like this. they are feeling the pain. rishad: and certainly a stall out. ben: there are companies like nigeria who have made comments act tow opec needs to
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stabilize prices. they have said they want to increase their own production. rishad: so they have got things like opec that are rifled by different strategies. what can opec do as a group? ben: the simple strategy is to cut out the fed. opec is led by saudi arabia. they have made it very clear they will defend market shares. rishad: they give her much. -thank you very much. paul allen is keeping an eye on
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the story. isl, the commodity route conferring pressure on bhp. paul: that is just one of their four pillars. the other three, copper, coal, iron ore, are not airing too well. they're off a third this year. they're back to $45 per term. that is bhb's biggest earner. bhb's underlying profit was down 52% last time they reported. in this case, there is over what the mine disaster will cost. at the moment, we have got an a+ rating. if you have a look at bloomberg's default risk model, you will find the bbb rating might be closer to the mark.
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that is echoed by a number of analysts. we have common welcome banks-- commonwealth banks, and deutsche bank, echoing the sentiments. >> does that put more pressure on bhp to abandon its dividend policy? paul: they've been taking a lot of questions over that. they have not officially walked away from that. never putthey would the company's balance sheet at risk. they say they don't have to announce a dividend until february. if you would like to engage in the sport where you try and figure out what people meant to say, then, you perhaps can conclude this progressive dividend policy might not be right for this world, angie. angie: thanks for that. rishad: let's look at the other
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stores. atorts of more job cuts deutsche bank. it is part of an overhaul announced last month. they will lower 9000 jobs over the next three years. they may close operations around the world. the san francisco fed president has reinforced the view that there will be a rate hike next month. john williamson reported a strong case for december left off. he said that depends on the dates which are continually being encouraged. note are reports of the fed being locked into a stingy to rate increase following the initial move. bank of japan will widen its stimulus program. they say the plan will include raising the minimum wage, more support for low-income pensioners, and plans to reduce costs for energy efficient homes.
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shinzo abe laid out -- strong economy, childcare support, and social security. junans at guotai are dropping after reports that they cannot find their ceo. rosalind: they have not been able to reach the ceo since wednesday. guotai j chairman of unan international holdings. they're replacing the posted temporarily.
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yim fung is typically based in hong kong. he is involved in the securities association of hong kong. i am sure many people would be interested to actually speak to him when he is contacted. this coincides with the stock market countdown in china. --magazine reports that he was a chairman of the securities commission. ofwas the general manager security from 1999 to 2002. not sure if this is related to that. for now, the ceo and chairman cannot be contacted. we will keep monitoring the story. angie: could be various
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situations could rishad: an update-- angie: could be various situations. thank you. rishad: an update on the security situation. there is evidence of an imminent major attack in belgium. brussels has been on alert since they attacks in paris were traced back to brussels. saw law up islam has not been found. 60 people were arrested--- abdeslam has not been found. 60 people were arrested last night in police raids. angie: the summit wraps up in kuala lumpur. find out what is ahead for southeast asia. asiais trending witwhen edge returns.
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rishad: authorities in myanmar said the number of people killed in a landslide has risen to 100 and four. remain unaccounted for after the collapse of the jade mine. it generates an estimated $30 billion lester loan--last year alone. argentinaresident of , macri, is a two time mayor of buenos aires. this ends 10 years under christina kirchner and before her her husband. beijing has dismissed claims that it is militarizing the south china
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sea. china was told they have to create facilities there. president obama has said international law must be followed. the south china sea dispute was one of those discussed over the weekend in kuala lumpur. it was a hot topic with member nations highlighting a new roadmap towards economic integration. .et us get an analysis accountto take into aipac just finished up. it really feels like there was one topic in the room, south china sea and china. >> the increase our presence at
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these events, obama, and li , all in kuala lumpur, it puts the pressure to decide where they stand. i think it's good that at the able tohe day ossiathey were agree on the freedom of navigation. they have to agree on this scope of conduct. they must agree on that. ,> as they work together forging together ahead, political cohesiveness is something that all the leaders said they needed to have. when, within them, they have some on the side of with, others on the sidfighting china over sea claims?
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>> is clear that certain countries are very much in the chinese camp. as one diplomat said to me, is a question of economic influence. those -- it is about balancing out the influence, bouncing of the interest. this is very indicative of what's happening in the on your--in denmark. -- in myanmar. this led to the rollback, the move away from beijing and towards democracy. you will see this push and pull across it.
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we do want to be in the us young camp-- freeing uptant for trade and capital. we've missed to the other big elephant in the room which is labor. millions from myanmar and the philippines are looking for jobs. the facilities for the cross-border movement are not there. >> is this all talk and li ttle practicality when it comes to the goal of coming together? frank, there has been a-- this has been relatively peaceful for decades. we are all talking, yes there
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are areas of contestation, but it is not conflict. this is their strength. we can pull together the americans, chinese, russians, even the most pr conscious global leaders. everyone is here. they know it's important. the fact that they all come in is important. >> still, there are barriers to trade that remain. when will we see that effectively-- >> the important barriers to those to the movement of labor, angie. the barriers to trade are relatively moving in the right direction. it is the movement of labor that we should be addressing. millions of people are crying out for work, predominantly in countries like vietnam and myanmar. that needs to be addressed.
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this is what has led to the movement of refugees. what are we going to do? thewe going to address treatment of the minorities? democratic a great experience in mynmar. -- myanmar. their treatment of minority rights be transferred to other nations? angie: clinical cohesiveness and labor cohesiveness. good to talk to you. peggy for all those perspectives. --thank you for all of those perspectives. the biggest pharmaceutical deal ever could be worth more than $150 billion s dollars. the details when asia edge returns.
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earningsr big week of and data out of the rest. su keenan looks at the events. su: the markets will close on thursday in the u.s. in observance of thanks giving day. fresh round of economic data including sales of previously owned homes which slowed in the helper--in october from the previous months.
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resents a mixed pictures. second report shows the u.s. gdp growing at a faster pace than initially estimated. confidence is expected to rebound in november after falling to a three-month low. among the final companies set to report our tiffany, dear, campbell soup, and dollar tree. friday, we get the first major indication of consumer strength as we going to the holiday shopping season. -- go into the holiday shopping season. in new york, su keenan, bloomber g. rishad: one of the biggest deals and pharmaceutical history could be signed off today.
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the boards are close to announcing their megamerger which could be worth north of $150 billion. what do we actually know? this is going to see the maker of-- david: this is going to see the maker of viagra merge with the maker of -- 11.5 shares are being offered for each. that was before the deal was made public. they have been struggling with generic drugs. if we have a look at the share price of allergan, it has done well for the past months. deal hast pfizer, a pull-backa little
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in the share price. ian reid will head the new company. rishad: we are getting a few of the nuts and bolts. we've had a wave of consolidation in this industry. not all of it is for obvious logic. some of it is to impress the irs there in this state? juliett: this deal is trying to be tax advantageous. essentially, this merged company will take benefits of lower corporate tax rates in europe and be structured as a reverse merger. n will buy pfizer,
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essentially. administration has issued new measures to reverse the conversion. -- inversion. >> checking in on trading, japan is closed today. but, that's a beautiful looking sydney opera house. upare seeing australia edged a sixth of 1% higher. as we take a look across the region here in hong kong as well, up just fractionally. ♪ the only way to get better is to challenge yourself,
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angie: the top stories this hour. oil and industrial metals retreating. materials shares are leading losses across asia. decline, prices may drop as low as the mid-20's unless opec takes action to stabilize the market. the minor is graded at the
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highest level by three major ratings agencies, but it is more in line with a triple b. hong kong unit says it cannot contact its chairman and ceo. it has not been able to reach junan since last wednesday. it has appointed temporary placements and its management role. -- in its management role. we know where david is. let's get to him now with the markets. david: right here. let me show you what is happening with the dollar index. for you to get a move of this magnitude, for you to actually
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move, you have to see most of the major currencies falling. that is what we are seeing at the moment. this is the highest level since march. there we go. at this point, that is a 12-year level.hat is the we are within striking distance. that is putting pressure on commodities. -- news over the past hour if you look at the shanghai futures exchange, we are down 6%. under 6500 -- 65,000 remember the per metric ton -- that is the lowest since 2003. commodity players, biggest
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aquinas. that is dragging down the entire group. some concerns it may have to pull back a reduced dividend. we have been talking about it all morning, shares down 2.5% some of the bright spots in australia. we are talking ubs, let me get that for you. ubs, credit suisse, and deutsche bank upgrading this stock. bump ineeing a nice what is fairly tepid across the equities market. cathay pacific is down 1%. you have petro china down. at casino shares, down two or 3%. rishaad: malaysia's debt ridden state investment company may be selling its power division for
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$2.3 billion. a deal could be announced soon. 1mdb may be trying to sell these assets, but a lot of mixed messages coming out. >> they are trying to take various measures. the ipo was supposed to happen and it did not come true because of market conditions. this seems to be -- rishaad: what are these assets they are buying and why are they looking at southeast asia in particular? they may be buying the energy
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assets. they are looking outside of china for investments. rishaad: it would close a chapter, wouldn't it, and product history that malaysia would rather forget. >> yes, definitely. it has created a lot of political turmoil. once this asset is off the
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books, they may sleep a bit better. angie: we have prime minister modi holding a news conference in malaysia. these two leaders will hold talks today. he attended the indian summit on saturday and the east asia summit on sunday. in other news, french shipping company is in exclusive talks to buy neptune's orient line. it can consolidate 10% of the global containment market. intune has run up lawson's
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2011 -- losses in 2011. shares of neptune nearing a seven-month high, 4% higher. a building company with interests ranging from toll roads to utilities has confirmed it will list itself as a hospital business. the chairman says the offer must wait until the philippines alexa new president. elects a new he president. >> i think there will be a lot of noise in the business space. we do not like for the evaluation of this ipo will be affected by the election noise. most likely, we will launch when we learn who the next president of the philippines is going to be. july, perhaps. slowdown in china is
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being confirmed by automakers who are predicting a new era of declining sales growth. let's take a look at this with our senior auto industry analysts. sales are up 3.5% of the share. is this the new normal for china? has something to do with the slowdown this year, but forget about seeing the 30% growth back in 2009, 2010. the market is way too big right now. there is a bigger shift into suv's. is automakers are focusing on the top line, the revenue line, they do need to be more competitive. there is a shift to suv's. they are not as gas guzzlers as they are in the u.s. market, but
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they are bigger. two-child policy, there will be more room for suv's. if automakers want to focus on the cost side, there are new ways to design new vehicles that es.mon eyes is -- commonizzed angie: production lines are working at three quarters capacity right now. how are manufacturers able to retain value? >> the easiest way to control capacity is not to build out so much capacity. do, what else they can do is export vehicles, just like g.m.. g.m. has plans to export their automobiles built in china.
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i do not think it is a big concern because g.m.'s quality standards are used to crossed -- used across the world, including china. as vehicle is just as good the vehicles built in the u.s. that may be the business case, but in terms of marketing it will be interesting to see if it works. thank you so much. rishaad: few magazines can boost -- post a circulation above 1.2 million. china can, though. it celebrated 10 years of the fashion bible for chinese women. stephen engle has been behind the scenes.
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♪ >> only the "it" women grace the cover of "vogue china." who become the face each month of expanding empire with a monthly readership of at least 1.2 million and that is just for the print edition. editor-in-chief angelica cheung is the one who has to find just the right look. how much of it is your choice? are you judge and jury? >> no jury. this is not a democracy. >> the last 10 years have propelled her to the pinnacle of china's fashion pyramid, drawing comparisons to miranda priestley or anna wintour. >> we do not meet much.
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targeted so we know what we want to achieve. [beep].t bull >> that is the modern chinese women who is reflected in her magazine. --i think my magazine despite all of this, you need to have a positive attitude on life. that can take you through all of these problems and challenges. >> it is not just a celebration of materialism? >> i never set out to be bragging about the wealth -- whatever. it was about the woman. womantive, loving, great who happens to know how to dress nicely. ,ou are working on something
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and making a lot of money for the company. >> traditional print media suffers elsewhere, "vogue china" has to turn away advertisers. >> to be good and to be respected as well as being b ig, that should be all of our ambitions. >> it was back to work to find the next big and best face of modern china. ahead, our next guest says prepare for a u.s. rate hike in december. but the fed will have to take it back next year. tewo.edge" is back in
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take a look at some of the stories making headlines around the world now. australia is gordon aiding the multi-national search off the southwest coast, -- coordinating the multinational search off the southwest coast. rishaad: he is accused of passing information to the u.s. government. angie: explosions and ukraine have knocked out power for about 2 million people on the crimean peninsula. beente of emergency has declared.
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police are investigating the blasts which happened on friday and saturday. juliette andave peter lewis. peter, what has been grabbing your attention? emerging markets have been beaten down too much. what is your view? hike: the fed is going to in december, for sure. it has really boxed itself into a corner. it has to hike or else it loses credibility. i think it will take that hike year.uickly next the economic growth potential of the u.s. is a lot lower than the fed realizes. one of the consequences of low interest rates is the enormous buildup of debt in the economy. even a small rise in interest debt that isu have
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300% of gdp, interest rates are 1%, you use 100% of gdp to service it. the economy cannot cope with it. it will have a bigger effect on the economy than the fed thinks. angie: what happens to the credibility when they take it back? they say they have to do it in december, but pretty much, you do not you to federal reserve if you take it back at some point. you have lost 100% credibility. peter: the fed has lost its credibility anyway. the point in the summer where it was about to raise rates and suddenly, markets started to tank, it raised international concerns. i think people were stunning to put question -- are starting to
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put question marks over the fed at this point. i think the bond markets are saying the same thing, actually. if you look at the yield curve, it is flattening out quite quickly. the bond markets do not believe the fed will be able to raise rates very much and keep them there. >> how was the credibility of the pboc looking? peter: central banks around the world are losing their credibility because the policies are trying to pump more and more money into the economy through various forms of qe, cutting interest rates to zero. look at japan, it has not had the desired effect. we now have the second recession in two years, investment is slowing down, inflation is nowhere in your the target anywhere in the world. the response to that is let's do
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more of the same thing that did not work last time. people are starting to say, are the central banks getting it right? boj andelse can the promised her -- prime minister abe do? governmentink the can do more. the growth potential is very low. the bank of japan estimates its growth potential i just half a percent now. -- at just half a percent now. it needs a restructuring of the economy. it needs things like changes in employment to allow people, to allow women to enter the workforce, immigration law needs but it has been
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distracted by the defense issues, beefing up security, trying to show they can stand up to china. if they were to go and make some structural reforms, it is the same in europe, by the way. as long as central banks keep pumping in more money and lowering interest rates, it takes the pressure off of governments to make difficult decisions and choices they really need to do. the central bank is doing it for them. abenomics is more like kurodanomics really. at the end of the day, we have all been groomed to conduct our business in an environment of cheap money. peter: the markets have become far too reliant on central
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banks. if you look at the u.s. market, if you take out the moves in the markets when the fed has either cut rates or announced its policy and released the minutes, take out all of those days, the u.s. market would have gone nowhere for the last 15 years. it is only the fed and central banks around the world that are moving markets. markets have become so dependent on them actions -- on the actions of central banks. onwhat are your thoughts emerging markets? peter: we might get a sense of how bad things are in countries like brazil, for example. we have gdp data coming out at the beginning of december. obviously, there are political issues there as well affecting the economy, but we have to bear in mind commodity prices still have not bottomed. still no sign they are going to
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find a bottom because the world is awash with oil. no sign of opec cutting production. metals are falling to multi-year lows. rishaad: i am going to stop you. also, we have run out of time. do not take it personally, peter. peter lewis, always good to see you. coming up next -- rishaad: a spectacular 50th birthday present for singapore. ♪
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rishaad: singapore's newest cultural destination opening its doors tomorrow. angie: it aims to showcase art
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and history from across southwest asia. a gem.mongst the compliment. singapore has never given so much attention to the arts, not until this national gallery. a very special project. it is being launched when singapore celebrates its 50th birthday. 64,000 square meters of space, costing $400 million. this gallery occupies the space of two very historic buildings. the city hall is behind me and in front of me is the old supreme court. this is the old supreme court and this was where they held hearings and they managed to preserve a lot of things, wooden paneled courtrooms.
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beenut of the 12 cells has preserved so people can look back at the old singapore. 8000 pieces of artwork in its collection. many more expected. there will be special showcases from across the region in connection with other museums as well. this is a significant project for singapore. rishaad: what is your favorite bit? : the favorite for me lies in the foundation of the supreme court. it is a time capsule consisting of newspapers from 1937 and coins. it will not be open until the year 3000. long after i am gone. rishaad: we will be around,
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won't we? angie: we are going to try. rishaad: angie will be taking the top stories after this short break. ♪
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hi dean. >> hi there. >> from the battle zone, from hollywood to the heartland. america's entertainer was bob hope. bob: if only there was some way to brighten it. of course.

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