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tv   First Up With Angie Lau  Bloomberg  January 31, 2016 6:00pm-8:01pm EST

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♪ angie: a new week on monday month. futures adjust friday's boj rallies will extend into february. sony is expected to be among the as u.s. shares jumped to losing ground in the economic race, trying to flip desolate behind america for the first time in a decade -- flip behind america for the first time in a decade. we are coming to you live from hong kong. we have breaking news of the start of the session. current account
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balance for december has come in at $7.46 billion. that is compared to november with $9.4 billion. as expected, the south korean economy as slowing down. let's check in on markets in asia. two australia -- we're seeing australia -- we're seeing gains. of course everyone is reacting to the boj surprise decision to put rates at negative territory. we have new zealand climbing as well a third of 1% higher. the central bank in new zealand kept rates unchanged. new zealand dollar right now is weakening $.64. they are indicating that future easing is in the works. we are also counting down to the opens in japan and korea. itures in chicago pointing to
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400 point jump -- a 400 point job at the start. higher225 closed 2.8% than a seesaw session. right now we have a weaker yen at 121.43. the federalrable territory day in malaysia -- no trading today. i am sure all have been waiting to say this, good riddance, january. many investors are licking their winds -- winds. -- wounds. let's take a look at what to expect today. we have david. david: good morning. they say as january goes, so does the rest of the year -- let's hope not. 17 -- the rally is that at 17.
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in chicago we are looking at a 1.5% jump. regardless of what you make of these fresh measures from the boj to tax act has holdings, it is going to make a distinction between it you think the efficacy will be on the real economy, and what markets will do. as far as the economy -- there are a lot of naysayers. it is a small amount that will be taxed or subject to negative interest rates. there is also the argument to be made that in an economy like japan where you have structural issues, demographic issues, aggregate demand lacking, it discourages banks from lending. that is one side. fec, from moves and markets -- it is clear that investors have gotten a message from the boj that they are ready to act. listen to what the boj had to say and what the signals. rates negative interest does not mean we have reached the limit of using. this is just another addition to the current easing policy.
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a reduction in real interest rates will stimulate investment, and spending. it is most important for us to send the signal that business and the public -- to business and public, that the boj is ready to take any action to achieve the government's 2% inflation target. david: the boj had to do something. the economy was grinding to a halt. their biggest trading partner is slowing down. they're not buying as many capital goods. you look at were the yen is trading -- it looks like it worked so far. it alljanuary was arc the to liddy, ecb kind of -- january with market volatility. what about february? david: we don't have anything. you look on the calendar, boj and the fed do not have anything scheduled for february. the swiss national bank and the bank of canada are also on a break. with the exception of the rba tomorrow and the blb on thursday, after that, investors will have to fend for themselves
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for the first time in nine years. central bank has had to hold their hand. there is obviously the risk they get confused, but this is how markets have done. there's also the chance to call down -- calm down. the pboc does not have anything scheduled anyway. angie: that can happen at any time. . david: after thursday, investors are on their own. let's see how markets and for themselves. angie: cutting the apron strings for february. that story more on and all of the day's top stories at our digital destination, bloomberg business bringing together the best of newburgh news, business week, bloomberg television, and new digital content. also on bloomberg.com -- how speculators take on the pboc, or big momma. -- thereaysia is one in db scandal is not over.
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best -- they have asked colella lump her for help in finding out where money came from. sony shares are set for a rally in tokyo after stronger-than-expected earnings. u.s. listed shares jumped by the most in seven years. we have our asian tech reporter joining us from tokyo. where was sony strongest? reporter: the third quarter was a great quarter for sony music and television business. -- movie businesses. but up and down operations, last quarter, the fed was up so obviously the new james bond movie was the fourth biggest box office hit and america. -- in north america. you also have a dell -- adele's record-breaking album. playstation 4 has had their best holiday season yet. their total sales were at 37
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million units worldwide. angie: how sick of the decline in the chip industry, and what about the outlook for sony? aval: we are going into earnings -- apple announced its first sales profit -- outlook in a decade. coming into it, sony/therefore your outlook for image sensors to a third of what it was originally expecting. they have already seen a rebound. the man should pickup from april to june quarter. track sony said it is on -- it is a big statement for a company famous for falling short. is this the end of hard times for sony? paval: yes, sony is a company that has cut for your outlook 15 times me last seven years. it is a different company.
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they have gone through painful layoffs. they sold off their bio business. they drastically shrunk their smartphone and tv operations, which is why they are profitable. the outlook is definitely for growth. there are some areas where investors can and -- expect positive results. one of them is image sensors. become but he is making big investment. the other one is increasing revenue from their network services like game streaming and video streaming. you cannot forget the playstation vr is going on sale by june. angie: thank you so much. live out of tokyo. checking other headlines for you right now -- hsbc is freezing pay and hiring this year as part of a campaign to reduce costs. the bank wants to save as much as much as $5 billion by the end of 2017. it was outlined in a memo to employees. they have a four-year plan to improve earnings in the face of
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surging compliance cost. suisse ared credit expecting to settle allegations stay with management of their private trading platform. sources tell us that barclays will pay a $70 million penalty and admit to misleading investors and violating security frauds. 80dit suisse will pay around formally in dollars, but they are not expected to admit to any wrongdoing. security ands exchanges commission have been investigating whether banks disclosed enough to client. foxconn is increasingly confident that it will win the chairman, sharp after -- the chairman met company management and a sock over the weekend. -- osaka over the weekend. we are expecting a decision this week which is said to be around $5.4 billion. the rival bid from japan's state back fund is set to be worth half of that. hours we wille of
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bring up the latest snapshot of the chinese economy. for the first time in a decade, the country has lost ground in the pursuit of the u.s. as the world's biggest economy. we have man watching this. man here. yvonne we have seen the u.s. come back from this crisis with robust technology innovation, that has made the recovery. of course china is heading down. the weaker yen ultimately safed the value out of china's expansion out because of -- obviously in dollar terms you can see that. china is seeing $439 billion. in particular the race to the top has progressed throughout the year. we can see that this gap has actually widened just a bit from 2015. we have seen it narrow sense
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2006. for the first time in almost a decade we can see that china is seeing a tough time closing the gap. we did see u.s. growth expands 2.4% for the second straight year. china, 6.9%, which was the weakest. this is the tale of two economies. we see the old drivers, exports, heavy industry continue to slow. for the first time we see services account for more than half of the economy. that has cushioned the slowdown as well as the port implement. -- employment. economists say the question is not whether china can catch up to the u.s., it is whether they can sustain their development. if they can expand about 5% in the next decade, it is only a matter of time they surpass the u.s.. angie: it is only a matter of time come up the time is now for pmi. what are we expecting? yvonne: the china pmi has enticing figures to follow. they will be slightly below the
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50 number. a slight downturn from december. 49.6 is the estimate, slightly down from december, not too much. 48.1 is the forecast for january, slightly down from december. we continue to see that the stimulus and 2015 has failed to trickle into stronger activity in the manufacturing sector. early signs we see that it will be between stability and fractional slowdown. we do not to be slowdown for best forecast for none is fracturing pmi, but continuing spansion there. we will see -- expansion there. we will see in two hours. economyere is the new in expansion mode of the 50. anything below, contraction. thank you. still to come this hour, one of hong kong's busiest shopping weeks of the year looks to fall short.
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arel find out which sectors being hit the hardest, and if there is a sign of relief in sight. coming up next, the bank of japan tries to boost positive sentiment by taking interest rates negative. they tell us if that is enough to revive the economy. that is coming up next. ♪
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>> the stories making headlines around the world, pilot error is being blamed for a the crash of a trans-asia plane in taiwan 18 months ago. they say fatigue and failure to follow safety procedures led to the crash that killed 48 people. the captain was probably overconfident, and the first officer did not correct him. anothernths later, trans-asia plane crashed in taipei after the wrong engine to shut down. an island close to china was holiday operation --
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the pentagon said the u.s. could fail anywhere international law allows. beijing says the move was unprofessional, irresponsible, and a deliberate provocation. travel rush is underway with the 3 billion expected in china alone. train and bus phases -- places where packed over the weekend. aroundrecast peak travel the start of the year of the monkey next week. this year may be less severe than usual because of the slowing economy. the festivals two years ago saw three and a half billion in china. powered by over 2004 journalist, this is bloomberg news. angie: back to the markets -- the impact of the boj shift to negative rates, u.s. markets ended their worst january since 2009. the best one-day gains in months, nine out of 10 groups on
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the s&p 500 saw gains of at least 1.5% on friday trade. it was a similar story in europe where stocks also ended the week in the black. the index was up more than 2%. check out the topics index, volatility following the announcement, but shares swinging between gains and losses before eventually closing almost 3% higher. the yen tumbled the most in a year, surprise move falling against all of the major peers. eco-data coming out this week, including china's factory pmi numbers. talk about that boj move with warren hogan, chief economist. boj moving rates noun to negative -- down to the -- negative, is a going to work? lauren: good morning -- war in: good morning i doubt it. of course there is not a lot of
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natural economic growth in japan. i think the policy targets are wrong. the japanese economy is doing ok, but it will not grow because their population and productivity cannot be strong enough. i think it is concerning how much they are trying to push on the string of monetary policy. we do have some positive reactions from equity work is on friday, it will be interesting to see how this plays out. angie: boj is not alone in thinking that they have to move to negative rates. denmark ecb move to negative interest rate in june of 2014. has that worked? warren: it seems to work when you have currency that is overvalued. in a case of the swiss, extremely overvalued. the yen however, it's probably a little bit cheap, or if you look at it and other terms -- very cheap. trying to get a cheap currency cheaper -- it is not necessarily clear that will work.
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there is no doubt there will be extra liquidity in the system. some of that will leave japan and go to high-quality government bond markets like australia, new zealand, or the u.s.. is that going actually really turn the dollar on the economy? i doubt it. their economy has the structural headwind. angie: what are you saying? they basically to the world a favor, except themselves? warren: that could be the case. some of that liquidity will stay there and boost asset prices, hopefully lowering the cost of capital and supporting new investment. there will be a think a significant risk that a lot of that extra liquidity -- if it is generated, the banks getting negative interest rate on the reserves -- that will leave the country. that is the yen play. it is not clear this is the right move for japan. rethinking the policy targets is probably something just as important. angie: true enough.
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tohinking how pboc is going play february, they are probably waiting in the wings -- what are they waiting for? is it the pmi data coming out today? what is it? warren: they are obviously monitoring the health of the economy closely. the other big convocation is how to continue the process of opening up and freeing up their financial system without seeing massive capital flight. exactlyry hard to know what is before that. it is not the most transparent. any weakness is going to make them very cautious on reform and obviously also make them worried about capital flight. it is a tricky time for china. unbelievably tricky. i think one of the most important focuses for them for the broader government is getting that equity market right.
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getting more stocks on to that equity market. encouraging capital inflow from the rest of the world to invest in china, just as china nash lucas wants to invest hours and for their money and other countries. angie: i don't think it is a surprise we will see contraction today for pmi. we have been documenting the story of old and new economy. is it going to be a trigger point for market sentiment? warren: yes, that is exactly right. on the services sector, any questions on the theth of the new economy -- consumer markets and so forth, will be a major problem. it is really all about how depressed and how much structural reform can they handle in the old economy. how job losses can they handle in an industry with too much capacity? any hint of a new economy or growth in the economy doing poorly will hit global sentiment . it is a global growth story.
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-- a: we are week of a week away from lunar year -- lunar new year. is this going to be the right move for pboc versus a triple are cut or an interest-rate cut? all right i think we got disconnected. that was warren hogan, chief economist at a in -- anz. investors will be hoping to put the worst january since 2009 behind them ♪, when first up returns.
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angie: welcome back, you are watching "first up." let's take a look at some of the events we will be close -- covering in asia. the reserve bank of australia makes it next interest rate decision on tuesday. last month they signaled a willingness to. do for the required. the board will be looking closely at the market turmoil. cut frommist these the a record low 2%. slowing consumer demand in china might be weighing on tech firms. lenovo is hoping their increased global footprint will save them. and smartphone maker is expected to return to profit on wednesday after a $700 million loss in the previous quarter. analysts expect net income of $292 million. thursday, the formal signing of president obama's landmark trade project. 12 nations gather to launch the transpacific partnership.
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the agreement was clenched in october after seven years of negotiations. lower tariffso and introduce a mechanism to resolve cross-border dispute. we will find out on friday if mcdonald's japan's price cuts and new menu offerings are paying off when it releases its latest results. it has been on a losing streak and has posted quarterly losses since mid-2014 as they struggle to recover from a food contamination scandal. the report comes as its american parent sales stake. investors in the u.s. will have plenty to digest this week when economic data and another round of earnings reports. su keenan has more from new york. week ahead on wall street has investors starting a fresh month after the worst january since 2009. there were several strong one-day gains. the focus on the coming week will be on the engineering parade of earnings reports which so far have been stronger-than-expected. the latest economic data as well
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as the first nominating contest in the 2016 u.s. presidents of campaign. on monday night we will learn which candidate are out in front as iowa holds its first republican and democratic caucuses. along with the economic reports that will be hitting the tape, labor remains a top concern. a bloomberg survey of economists shows that employers here in the u.s. likely took on fewer workers in generate them up. -- earlier the unemployment rate is expected to hold steady at 5%. other reports show that u.s. personal spending cooled in december, and manufacturing contracted in january or a third straight month. as for earnings, bnp, exxon mobil, general motors, pfizer, and real dutch shell are among the companies to hit us with numbers in the coming week. su keenan, bloomberg news. angie: coming up, the upcoming lunar new year might not be so happy for retailers and hong kong -- in hong kong.
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we take a closer look at the latest challenges, and there are many. that is coming up next. you are watching "first up.". back to you in two minutes. ♪ ♪ bend me shape me, any way you want me as long as you love me, it's alright bend me shape me, any way you want me you've got the power, to turn on the light shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store.
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angie: it is 7:30 here in hong kong, but you are taking a look at a live shot of the the opera house -- sydney opera house where it is 10:30. we are seeing gains in the equity markets in australia. trimmeder u.s. stocks the generator out. this is things to governor kuroda and boj action in negative territory. breaking news out of austral yeah, there you see it in the lower third of your screen, inflation rises 0.4% from the previous month. that is compared to december's rise of 0.2%. looking at the year on year change. let's take a look. 2.3% versus the
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2% jump in december. all about ahead of the rba decision tomorrow. those are the top stories this hour, asian stocks have started a new month higher after the boj decision to go negative health spark a global rally. shares in sydney in the green with futures pointing to a positive open in tokyo as well. avoid but oilso captives second weekly gain on to doing a speculation that opec and russia might discuss production cut. for the first time in a decade china has lost ground in catching up with the american economy. u.s. gdp rose by $590 billion last year. 439a in comparison added billion. the chinese economy is expected to expand 6.5% this year. we will be watching sony at the open in tokyo after the stock in new york surged almost 18% on
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better-than-expected results. they jumped to $997 million. it was driven by james bond, more accurately the film. byadele'so driven album and playstation 4 sales. projectionsreasing of game sales while cutting sales for device units. -- then me asia market asian market, inflation coming out of australia seeing gains above the 5000 mark more than 1% higher. the rbat play into decision tomorrow as it mulls over the global routes that we have seen in january. in australia, the aussie dollar is at $.70. to new zealand -- let's head there, we thought gains the first few hours. we are extending that. new zealand dollars spot at $.64.
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keeping rates unchanged. they did indicate we are likely going to see some using. counting down to the open in japan and korea. what a surprise from japan -- this is what that did, 2.8% higher. check out the futures in chicago -- looking to be a 300 point spike at the open. close to 400. japanese yen right now is weakening, 121.39. we are waiting to see how asian markets spending 48 hours over the weekend to think about what boj will do for the equity market. in the u.k., the biggest bank globallans to impose a freeze on pay and hiring this year. we're talking about hsbc. that bank joins the ranks of european lenders that have announced cost-cutting measures in the last two months. that includes job cuts. shery ahn has the details. what are they saying?
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shery ahn: they are hoping to cut as much as $5 billion by the end of next year. the actions were outlined in the memoranda and -- memorandum sent to him please on friday. dust inee as flagged as our and investor update we have targeted significant cost reductions by the end of 2017. it is worth mentioning that this is not so much of a surprise given that in june the ceo mentioned a three-year plan to cut costs. included shutting down unprofitable businesses as well as a limiting jobs. -- eliminating jobs. angie: they are not the first. shery ahn: definitely not. we are talking about so many others, for example, barclays last month that 1200 jobs would be cut. that would affect many of those here in asia. from morgan heard
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stanley's ceos saying that they had affected simply -- effectively cut jobs there. european banks are setting a set of challenges including a slumping revenue, cost related to compliance as well as tougher financial regulations. now citigroup is coming out and saying that because of all of these challenges, and because of to cost and -- cost related restructuring to become more profitable, they will see profit being wiped out in the fourth quarter of the year. ,eutsche bank, credit suisse they are all expected to post losses for the three months through december while our clues is expected to broadly breakeven. member these are measures that were long coming. they're actually following u.s. banks and reforming. u.s. banks had done that right after the 2008 financial crisis.
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we may be hearing from more banks about more cost-cutting measures to come forth. angie: thank you. with the swiss investigation into malaysia's troubles, one fund says about $4 billion might have been misappropriated. they are seeking further investigation. look at the swiss find. trayter: the swiss a general has been looking into this, there are serious indications", about $4 billion being misappropriated from elation companies. in a statement of four cases involving allegations of criminal conduct between 2009 and 2013 have come to light. the full amount of funds were transferred into swiss accounts of former malaysian public officials. askedities have passed -- alicia for assistance to investigate.
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they say the money believed to have been misappropriated would have been spent on economic projects in malaysia. today the companies have made no comment. they were able to advise the companies and the government of the result of the proceedings -- without finding out if the losses on this scale were actually sustained. they want to find out basically where the money had gone. angie: the attorney general last week in malaysia said the investigation is over. reporter: that was one part. angie: the political one, to be sure. how long have they been investigating one mdb? reporter: in august of last year -- one mdb itself the company has not been contacted by four and legal authorities on matters relating. the malaysian attorney general office said they will cooperate
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the swiss and review of findings before determining a course of action. in august of last year, swiss authorities started looking into one mdb. based on notifications of suspicious transactions noted by its intelligence unit, it financial intelligence unit. they were looking for things like bribery of public officials , misconduct in public office, and also money-laundering, criminal mismanagement, that kind of area. there are often criminal proceedings against to executives at one end the db -- one mdb and what they call a person unknown. angie: let's take a look at what we are following for you on the bloomberg this morning. -- ne man: honda even on girl honda will be in the spotlight. biggest to, -- takatas customer. income the announced an
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and maintained their profit forecast. oil slump is giving tokyo electric a boost, offering profit more than quadrupled to about $640 million on lower energy costs. it helps offset weakening national demand for electricity and clean up cost at the fukushima nuclear plant. power usage has reached an 18-year-old low. but they might help rival, comp the electric report their biggest annual net income in a decade. expandanes could international routes to capitalize on the record number of people sitting japan. 380 have ordered 38 superjumbo's in a deal worth about $1.3 billion. be delivered in 2018 and flighty honolulu route. they are also having rate -- routes go to sydney.
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we will be watching panasonic at the open in japan for the nikkei news. they reported a nine-month operating profit had risen 5% to $2.5 billion. risingkei says they are with good sales in japan and southeast asia. lower cost and the weekend later broke -- weak yen the arrow. -- play a role. -- newgrow in our union year next week even for hong kong that it has been. following visitor numbers and the relative strength of the local dollar has put retailers under pressure. let's bring in catherine larkin. which retailers are suffering worst? catherine: analyst at tell us the watch and jewelry retailers will be the hardest hit. it is interesting because he walked downtown in hong kong and they are on this retrying to get you to go in. some have already told investors that this year's chinese new year selling says it best season will not be as good.
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and you're getting here from here -- your first and your first day here. you have been investigating this, which retailers will be hit most? empire watch, a lot of the watch sellers, by and large a lot of the people we have spoken to say that this could be a struggle across consumer discretionary specters. -- sectors. it really could be across the industry. angie: if you -- as you dig deeper, how long term and effect will this have on hong kong? catherine: luckily it is not as bad apparently if it has been for a five years ago, chinese new year really would've made our broke your year is a retailer. we will see impacts on first quarter sales, especially if there is heavy discounting. it is really not just the one time sales season. now there are others selling
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seasons. hopefully these retailers can make up money losses. angie: we are seeing a slowdown. thank you so much. do some shopping at central. coming up next, getting into shape -- we will take a look at how one company is doing fitness fanatics wider choices and it's putting the traditional gymnasium industry in a sweat. more when "first up" returns. ♪
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angie: welcome back, these are the stories making headlines. by thee bombing claimed so-called islamic state has killed at least 47 people in damascus. the syrian peace talks have begun in geneva. a car bomb exploded at a bus stop. two suicide attackers blew themselves up. ae yuan peace summits have rocky start with a rebel group only agreeing to take part at the last minute. the yuan's special envoy says
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they will meet the two sides separately later today. shery ahn japan military is on alert. they have installed patriot missiles of their tokyo head quarters after reports that north korea might be planning a long-range rocket test. japanese, korean, and u.s. officials say they have seen activity at a ballistic missile test site. it is less than a month since north korea decimate just decimated what they said was a hydrogen bomb in their fourth test. legislative council has approved an extra $700 million for a bridge linking the city with macau and to high as the china mainland. they say the project is now around $4.3 million. construction on a 42 kilometer bridge and tunnel project began in 2009. it has been plagued by delays and cost overruns.
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it was supposed to be completed this year. one chinese officials says that even 2020 might not be realistic. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news, i'm shery ahn. angie: the business of gym nowership is something that has an app. rather than belonging to one jim, k-fed offers classes and times. here is the founder. we are seeing something felt -- similar take flight in the u.s.. what makes you think it is viable here in asia? joel: good morning. we started it nine months ago. it has been exciting. we started in april of last are. today we have more than 250,000 people. every minute someone is looking a fitness activity on us.
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initially we are excited about the idea. nine months later, the idea has turned into a an example of the daily lifestyle of our customers. i think it is about adding value to customers. making sure you are exercising and keeping activity. angie: part of it is also to keep the memberships. $4.99 -- or $65 in u.s.. what is the turnover rate for customers? joel: right now we have anywhere from 80% to 90% retention. that is on a monthly basis. a lot of customers use it as a platform to -- say for example, they want to exercise for the next few months, they come on board, there is no lock-in for them. it is for them to exercise. angie: one of our producers downloaded your app.
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it was not attractive because --rything is in coddling what if you don't have this? it seems geocentric. , it: right now what we do is all about measuring supply and demand. as we see more customers using the platform in different parts of asia -- right now we are in eight countries and 10 cities. as more customers get on board, we will actually grow the supply. right now i am sitting here in singapore, i opened up the app -- there are 50 different options within one to limit our -- one kilometer of the office. angie: that is you in singapore, us, we have to take a ferry. at the end of the day, from what i understand, it is a strategy to get smaller, less known studios and fitness gyms and
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things to a wider market. presumably they are not doing well -- they need your help. this is why they are signing up to you, right? locali would say a lot of retailers, right -- especially those in fitness have a lot of set capacity. whether they own a studio, a pilates class, the utilization rate ranges from 30% to 50% for most partners. there is a lot of capacity we can accommodate. in gyms they have a fixed asset of the facilities. i think it is a great platform for them to get customers. the way we look at it is it is coupled injury to their current business. so if they set it up, they can reach out to more people. angie: how credible the expect k
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fit to be in terms of sustainability without the bigims -- without the gyms. joel: we have different partnerships with selected studios. most of the studios in the city are on board. for example, in malaysia and singapore we are working with some of the largest jim's -- gyms. that is something we see elsewhere as we add more customers and get more value. investorsr partners, are taking a look at the grand prize though -- it is china's india. how will you get into those markets? what are you learning right now to help? joel: at the moment we do not have plans to go into india or china. we are focused on the 10 cities we are in. all of the capital within southeast asia, and the korean
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market. we are focused on that. when we decide to launch in china and india, or if we decide to launch, we will keep you posted. joel, not a lot of people know that you are the former head of groupon. groupon started out with great ambitions here internationally and in asia, what have you learned? what are the mistakes that you make with groupon here in this region? what have you learned that you are applying to k fit now? aboutwhat got me excited groupon was to tackle hyper local discovery. true to mobile device. what that means is that consumers today are connected on a mobile device, and you can give the ability to connect better with businesses within their vicinity.
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that is a huge opportunity to make that supply demand connection better. that is the passion i apply with this as well. in terms of learning, it is it is all startup -- about keeping lean and making sure we invest in technology and product. i think one thing for us at k fit it is about making sure that we have a small, tight team that is doing it every day and growing the business. angie: thank you so much for joining us at a singapore. k fit founder. mobilephoneest carrier is looking to buy back for billions of dollars. more when we return. ♪
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angie: welcome to the stock exchange. to tellrters are here
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us more. >> lots of earnings. could pop. that we saw the adrs climbed 8% on friday. third-quarter profit was 19% gross on your -- year. they announced they will be buying back about 5.6% of shares. you on girl -- yvonne: they raised the price target of -- up to ¥3000 a share. they say the buyback exceeded expectations. they stock has surged close to 30% past year -- this past year. those adrs are searching most in seven years. as maybe corona had something to do about -- corona had submitted without. it -- some would stick on lipstick on it. manufactureric
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gained more than 6% on friday. shery ahn: it is not in overbought territory just yet. analyst love it. they announced their nine-month operating profit jumped 90%. year forecast, more than 6%. angie: that is an incredible story. would the china slowdown, they are buying cosmetics. year -- last week you are not here, but we were talking about i have two -- about daihatsu. -- toyota already owns a stake in daihatsu, toyota will now buy out the rest of it. delist and take it into the toyota fold completely. daihatsu started in 1907.
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they have a long history. in -- been a tough year look at september. continueys they will the brand and hopefully keep it running. angie: that is the verdict from the stock exchange. stocks reported on are based on recent events. back in one hour to see how they have done. panda we go, "kung fu three" tops the box office in north america. it took in $41 million. a fresh start for dreamworks after a year of restructuring. the studio will get a boost from what is the first animated u.s. chinese coproduction. dreamworks will -- receive a higher cut of ticket sales in china, and the movie will be given preferential theater access. taking a look at the next hour, leads keep an eye on sony after good results sent u.s. shares soaring.
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the opening in japan and korea, just moments away. this is "first up." ♪
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♪ the vo effect. asia extends friday's rally as japan's decision takes the sting out of the worst start of the year since 2009. foxconn is increasingly confident in winning it did. -- its bid. and china slips farther behind america. welcome to "first up." we have breaking news at the start of this hour. south korea's trade balance has
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come in at five $3 billion. -- $5.3 billion. it was estimated at $6.5 million. so that is less than expected. 18.5% compared to estimate of a 10.3% drop. that is definitely a deeper drop in exports than expected. 20.1% compared to estimates of 14.4%. so exports and imports both disappointing by very wide margins here and the trade balance coming in half of what was expected. so definitely weakness out of south korea. but we have seen a positive opening to the week and the so farn asian markets after the doj said it will take interest rate below zero. joining a club which are the
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includes -- which already includes several european countries. david: apart from what we will see today, this reduced fresh concerns over whether or not we will see stimulus from other central banks. 20% drop in imports from south korea, it might trigger competitive devaluation's is what analysts are saying. equity markets, we are obviously seeing a second leg to the rally that began on friday. we are up more than 1% in japan. south korea is following, just opened up. australia has been up about 1%. apart from the equity markets -- ignore that for a minute. what you want to watch are these bond yields. you have the two-year and the five-year in japan, already negative.
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almost an across-the-board rally from japan to australia to the u.s. that is where we are as far as bond yields are concerned. negative for the two-year and the five-year. you park your money there, you are barely getting anything. obviously, that is ok because there is not nation in the world. let's leave it there. have a look at these spreads. for the u.s. 10-year, we close 193 on friday. it is close below this key fibo nacci retracement level, which held support back in april, so we broke through that. it is about a six basis point drop on friday. have a look at japan. .08%. to come downyields
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further. that is what analysts are saying , because of what the boj did. it is not simply the amount of money, it is what that means moving forward especially when the boj says we could act further. let's have a look at the currency market. dollar yen is down for a fifth or sixth straight session. 121.28. against the euro, should be done for an eighth straight session, the longest streak of weakness against the euro going back to december of 2013. we are back above 131 at the moment. .8% weaker. won, for the dollar is .8% stronger against the won. back to 1200 for that exchange rate. dark --y act or try to
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try to drive this lower? equities on the way up. everything else is falling across currency markets. stronger dollar, stronger oil. gold is a little bit higher as well. back to you. angie: we are waiting for sony shares to come online in tokyo. but we are watching this stock closely because stronger-than-expected earnings --ted sony's u.s.-lifted u.s.-listed shares the most in years. our analyst joins us from tokyo as we await sony. where was sony strongest? >> the third quarter was a tremendous one for the company's movies and music businesses. pectre," the new james bond movie, is the fourth biggest hit in america. and adele is a record breaker.
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the last shopping season was the ,est one yet for playstation 4 37 million units worldwide. angie: but sony is a very diverse lesson these days with a new strategy. still, the decline in the chip industry no doubt will affect things. what is the outlook for sony? were goingnew things to be bad when apple cut their sales outlook or the first time in a decade. and took a hit in image sensor devices that our smart phones and cameras. they/year for your profit forecast to about a third of what they originally expected. but they say the slump will be short-lived. they expect a rebound in the april-june quarter. angie: sony is saying it is on track to meet full-year forecast. that is a big statement for a
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company famous for falling short. is this the end of the bad news coming out of sony? pavel: it is a milestone of sorts. this is a company that cut its full-year outlook 15 times in the past seven years. it is also a very different company after painful ,estructuring, slashing jobs drastically shrinking their smart phone and tv operations. sony is in very good shape. this turning hirai his sights on growth areas. some of them will include image sensors. but also higher earnings from network services, like streaming games, music, and videos. mosturse, sony's anticipated product will go on sale this year. playstation vr will be in stores by june. angie: hopefully we are not going to wait until june for the sony market to come online for shares. but we are still waiting.
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thanks for that. we are still waiting. we will break those to you when they come. checking other headlines, foxconn is increasingly confident it will win the battle chairman after their met company management in osaka this weekend. around is said to be $5.4 billion. japan'sbid from state-backed innovation fund is said to be half that. chit shares -- shares are trending higher. let's check out honda after the open. this is what it looked like after they missed estimates due to takata. 's biggestakata customer and is recalling $30 million -- 30 million vehicles around the world. and nikkei news reports that
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panasonic's nine-month operating profit has risen 5% to $2.5 billion. the nikkei says that is thanks to rising sales in japan, appliance sales in southeast asia. yen say the weekend -- weak also played a role. china has lost ground in the pursuit of the u.s. as the world's biggest economy. yvonne man is watching this for us. you said china stumbling is hardly a surprise. to ae: as it shifts consumer-let the economy, we will see china in a much tougher challenge to keep up with the u.s. as we see the u.s. economy recover from the financial crisis with robust tech innovation. that is leading the recovery. china's economy heading down. impact had a weaker yen the output as well. $590 billion was added to the
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u.s. economy from a year ago. china, $439 billion. if you take a look at how this race has progressed, since 2006, we have seen the gap between u.s. and china gdp. it had narrowed until 2015 when we saw things edge of a little a little bit. it is tougher for them to close and narrow this gap. growth reported for 2015. the biggest expansion pace and a quarter. isnomists say the question not whether china can catch up with the u.s. in dollar terms. that is not important. what is is whether they can sustain development. can they pushed to these reforms successfully and shift towards the old drivers and to the consumer-let economy -- the consumer led economy.
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it is only a matter of time that they will suppress the u.s. angie: we are getting pmi figures coming out today. yvonne: in just about an hour. the consensus is both measures will stay slightly below 50. we did see december at 49.7. january, just a slight edge down. we continue to see the stimulus from 2015 not triggering any stronger activity in manufacturing, but it has stabilized, which is a good sign. we are forecasting a six-month sixt month -- -- sixth month of contraction. we talk about how resilient services sector is, but we continue to see expansion since last december. we will see how things go.
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the manufacturing cycle, early signs show it will be between stability and fractional slowdown. angie: still to come, switzerland raises alarm bells over fund trends. there is an estimated $4 billion in question. has the bank of japan reached its limits? we will check in with chris weston after this short break. ♪
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>> the stories making headlines around the world. pilot error is blamed for a crash 18 months ago. they say a failure in safety procedures led to the crash which killed the eight people. an investigation says the plane was too low. the captain was probably cocaptainent and the did not correct him. warship has sailed island
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owned by china. the forget passed within 12 miles. frigate pass within 12 miles. patient says -- beijing says it was unprofessional and a deliberate provocation. and the annual lunar new year is underway. train and bus stations were packed with the transport ministry forecasting key travel around the start of the year next week. it might be a little lesser than usual thanks to the slowing economy. journalistsver 2400 and 150 bureaus around the world, this is bloomberg news. check in on markets
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trading here in the asia-pacific. there you see great gains across the board. nikkei 225, 1.6% higher. up .5%. it is all on the heels of boj action. there will provided a strong boost for risk acids on friday. and we are seeing it here on monday as well. what are we going to see this week? will it sustain itself? chris weston's head of trading in asia at ig markets. what do you think? are we going to see an extended rally throughout the week? chris: selectively. the markets come off very oversold conditions. a lot of that is the concern of the ecb coming out and saying they are going to do more. the bank of japan have shocked people. we have a situation where there seems to be this building interest developing.
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as they yields flatten across the curve, obviously we are seeing current -- we're seeing currencies, but australia is an interesting market. you have a 5% net yield me over to some of the banks are on very compelling yields at the moment. i think yields continue to be the play now. angie: we are seeing the move in australia on the heels of the boj. does that conflict with what rba is going to decide tomorrow? chris: not really. the rba do not communicate it as well as they would like to. they might have monetary policy to clarify any volatility that you might see. the economy seems to be running quite well. they may come out and make some adjustments. they are certainly not going to give a huge amount away in terms of when they are going to these
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policy -- ease policy next. the markets may be disappointed if you want a clear-cut reading like we got from the ecb. angie: regardless, after tomorrow from rba, we are pretty much in a still period for pretty much all the major central banks. not having a central bank meeting in february. is that going to be a danger for the markets? the fed is still very much the key. stanley fischer speaking in the early hours of tomorrow. i think his view on negative rates in the u.s. -- ben bernanke talked about it. no dudley has as well. if he said anything about negative rates, the markets will probably listen. i think china is the key. if we have this risk-on rally, if they yields continue pushing higher, i think the yield traded
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in the equity market could work quite nicely. it has to come from china. what is china's reaction to the yen moving lower? we could see a to evaluation. the weekend will be about china's fx reserves. that will be the most important highlight of the week. angie: does that change your outlook for your strategy is to mark have you changed anything considering the surprise out of the boj on friday? chris: i think it really does shift the focus from balance sheet expansion to one on interest rates. it gives the bank of japan more easing room. perspective, you would still be looking at how that .lays on the -- plays on it is really about the u.s. dollar and see if it can get away. you have got to look at those factors. you have to look at the chinese
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currency. i know we are going into a new year, but that is the issue which could rock the boat again. what happens with the level of capital outflows from china? cannotmarket senses they control it long-term, all of these moves from the ecb will be counterproductive and china is the elephant in the room. angie: are you telling me you are preparing for a pboc surprise? chris: i struggled to believe they will do anything to outrageous ahead of the new year, but more along the lines of the bank of japan. they are a central bank which can surprise, unlike the federal reserve, the rba. if we do see a delegation -- a think the market is not prepared for that at the moment. especially as we are seeing this axing mechanism over the last week or so. , i think new year
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things could move around a little bit and could get pretty ugly. i am looking to short markets based on what we are seeing in china here. angie: you are shorting china. i think a lot of people did that in january. they have used really short-term tools with the 7-28-day reverse repos just to inject money into the market ahead of the new year . after that, do you think that is going to be just as effective or do you think they will have to do more? chris: just to clarify, i am not shorting chinese equities. i think developed market equities could be a cell on good rallies, but it is going to be driven by china. what we are seeing is what they do into the lunar new year, just trying to keep liquidity going forward. they have given a clear indication that they want to use the reserve rate going forward. i think we might get some more benchmark cuts. but it is all about the currency
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from here. cutting reserve ratio requirements and the lending rate will speed up the process of people wanting to get money out of the country. it is negative it back that they -- feedback that they have in their country at the moment. angie: thanks for that. chris weston joining us out of melbourne. coming up next, will the weaker deeplyt deeply -- yuan china's factory output? that is coming up next. ♪
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angie: sony shares coming online in tokyo right now. that is a pretty big jump. 14.9% higher after stronger-than-expected earnings lifted u.s.-listed shares most in seven years. net income surged 33% on the heels of u.s. adr's. we were expecting quite a pop and there you got it.
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g things off right at the start. david: let's take a look at some of the big stories in the forex markets right now. first up, let's look at the state of play across market this monday. no bigger story than the boj announcement to "tax excess reserves on the backs of continuing to drive the yen's value lower." kuroda says they are willing to do more to move the needle. of on its longest streak losses in years. there you see a carry trade in japanese. korea just reported a collapse in both exports and imports a few minutes ago. inflation in australia picked up in january. .he measure shows 2.3% rise
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later on this morning, thailand is expected to report a 13th straight month of deflation. 46% is the estimated fall in january prices. those things are important. none will be more important than the manufacturing pmi report from china. forecasts have fallen slightly. 49.6, which would be the same as last november. 48.1 is the estimate for the titan manufacturing number. this is more about the appetite of chinese imports in china then on this -- the health of the south korean economy. one of those rare times we have to check the bond markets because that is where we are seeing the sharpness. have a look at the 10-year jgb
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bonds. they do not call that the widow maker trade for nothing. six basis points with a 10-year jgb. we are continuing to see pressure on those yields. dollar-yen is stronger. that is how it looks. have a look at those spreads. everything else is coming down as well. 2.61. 10-year, that is something to watch given this announcement from the boj. a lot is expected from mario draghi. he speaks later tonight. watch out for comments from european parliament. dollar-yen, 121.26. days of, eight straight
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weakness. those other stories driving your forex markets. angie: thanks, david. coming up, damage control as a just received take steps to rein in $5 billion in cost. ♪
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angie: 8:30 in singapore. we are waiting for the open of trading there. it is looking to be an interesting start to a brand-new month. you are watching "first up." asian stocks have started the day higher after japan's decision to go negative sparked a global rally. shares in tokyo jumped 1%. oil is also higher after capping on second weekly gain speculation that opec and russia may discuss production cuts. sony shares surging as much as 13% this morning after it posted better-than-expected results. net income jumped by a third.
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driven by the james bond film album, andadele's playstation 4 sales. for the first time in a while, addeddp rose and china $439 billion as a weaker you want -- yuan sacked its output value. let's take a look at markets trading in the asia-pacific. the nikkei is the leader. no doubt sony coming in at 16% higher. it has pared that a little bit, but the nikkei is climbing. we are also seeing australian equities climb ahead of the rba decision tomorrow.
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the boj and negative rates helping boost market sentiment. but the sentiment is not so good biggest bank.k.'s a global freeze on pay and hiring this year. hsbc joins the bank of european lenders that have announced cost-cutting measures in the last few months that include thousands of job cuts. what is hsbc saying? shery: they are saying that they hope to cut costs by as much as $5 billion by the end of next year. they sent out a memorandum to employees just last week. these actions come as hsbc is trying to cut costs. back in june, ceo stuart alliver said they had three-year plan to cut costs, which included shutting down unprofitable is is an eliminating jobs. a spokesman for the bank already confirming to us, saying that
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they have targeted significant cost reduction by the end of 2017. thanks there are struggling with withnks are struggling higher client costs and a slowdown in lending. we are hearing from credit suisse, deutsche bank, morgan stanley. barclays telling us that they are hoping to eliminate 1200 jobs worldwide. a lot will be affected in asia. morgan stanley confirmed that they were done with 1200 job reductions in the fixed income sector. european investment banks reducing costs. they are seeing slumping revenues and higher compliance costs, not to mention tougher regulations. citigroup coming out with a note saying european investment banks are expected to see profit wiped out in the fourth quarter. they think that deutsche bank, credit suisse, and ubs will post
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losses for the three months through september while barclays will barely breakeven. angie: ouch. thanks so much for that. a swiss investigation into a troubled fund says about $4 billion may have been misappropriated. prosecutors are seeking further information. what did the swiss find? >> they have been looking into say for some time and they there are indications that $4 billion may have been misappropriated. sayingsued a statement that they saw for cases involving allegations of criminal conduct come to light. more funds were transferred into the swiss bank account of former public officials. there is a very long statement that says they believe the money misappropriated would have been
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for investment in economic and social development products in malaysia. malaysia has made no statement on the losses they are believed to have incurred. they are going to advise the companies and the malaysian government on the result of these criminal proceedings with the aim of finding out where the losses have been sustained. the pressure on malaysian withrities is continuing the investigation coming days after the malaysian prime minister said -- was cleared of any wrongdoing, connected to from thet was donated saudi arabian family. angie: we heard that last week. they were very firm as to the investigation being over. it is far from it. swiss authorities are now in play. how have -- how long have they been investigating? rosalind: they have been looking
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into this since last year. in a statement from switzerland, one said they had not been contacted by legal authorities. that was saturday. and the malaysian attorney general said they will review funding before taking a course of action. swiss authorities started looking into this because of suspicious transaction reports by the swiss financial intelligence unit. they started looking into things like bribery of foreign officials and perhaps criminal mismanagement, money laundering. they say they opened criminal proceedings against to executives -- two executives and what they call "persons unknown." tryingls in malaysia are to move away from this investigation. there are many other investigations ongoing in singapore and hong kong as well. angie: let's take a look at what
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we are following for you this morning. yvonne: barclays and credit settleare expected to allegations over the management of their private trading flat. our plays will pay $70 million and admit to misleading investors and violating a securities law. credit suisse will pay around $84 million, but it is not expected to admit wrongdoing. the new york attorney general and the u.s. securities and exchange commission are investigating whether they told authorities enough about trading in their dark pools. offset we can national demand for electricity and cleanup costs at the fukushima nuclear parent -- plant. our usage has hit an 18-year low. it may help their rival posted
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their biggest in a decade. the record number of people visiting japan. it will sell three superjumbo's in a deal worth about $1.3 billion. they will be delivered in 2018 and will fly the tokyo-honolulu routes. the carrier raised their profit to more than $530 million. kfit raised $12 million to expand in asia. users can access hundreds of fitness classes. investors likeny ventura capital and susquehanna. rates jumped from 30% to 50% for most of our partners. there is a lot more capacity to accommodate.
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that is the fixed asset of the facilities. it is a great platform for them to profit. we look at it as complementary to their current business. they want to reach out to more people. that is a look at some of the stories making headlines. weekunar new year next might not be that boon for hong kong that it has been. retailers are put under increasing pressure. let's bring in cap reluctant -- catherine larkin. which retailers are struggling most? : analysts say we will see the jewelry makers and .atchmakers hardest hit some companies have already told investors it will be a challenging chinese new year. other news to keep an eye on, emperor watch. they say this could be a cross
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consumer -- across consumer discretionary sectors. we are already feeling a slowdown in hong kong. how are retailers coping? catherine: they are on the sidewalk and they wanted to come into their stores. better discounts for shoppers this year. if that does not increase traffic, we may see more consolidation and stores closing. angie: what is the long-term effect for hong kong? catherine: chinese new year is not the big selling season better once was for five years ago. while we may see an effect on first-quarter sales, it is not going to be make or break or these retailers. angie: if we are going to see a slowdown in china, it could extend throughout the year. thank you so much for that. investors in the u.s. will have plenty to digest with another round of earnings reports. su keenan has more from new york. the week ahead on wall
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street has investors starting a fresh month after the worst january since 2009. the focus is coming week will be on the continuing parade of earnings reports, which have been stronger than expected. along with the latest economic data and the first of the nominating contests for the u.s. presidential campaigns. we will learn which candidates are out and run as iowa holds its first republican and democratic caucuses. along with the economic reports that will be hitting the tape, labor remains a top concern. a bloomberg survey of economists shows employers likely took on fewer workers in january than the month earlier. the unemployment rate is expected to remain steady. other reports show that u.s. personal spending cooled in december and manufacturing contracted in january for a third straight month. perry earnings, the np
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bock, exxon mobil, general motors, pfizer, and shall are among the big companies that hit us with their numbers in the coming weeks. "kung fu panda 3" topped the box office in america, taking $41 million. a fresh start for dreamworks after a year of restructuring. the studio will get a boost from what is the first animated u.s.-chinese coproduction. dreamworks will receive a higher cut of ticket sales in china and the movie will be given referential hitter access. myanmar has been by the military for over half a century, but that ends today. we look at the top priorities for the government. that is coming up next. ♪
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>> welcome back.
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these of the stories making headlines around the world. a triple bombing by the islamic state has killed 47 people in damascus. a car bomb exploded at a bus suburb.a mainly shia then two attackers blew themselves up as rescue teams arrived. the u.s.-led the summit has had a rocky start with rebel groups only agreeing to take part at the last minute. the u.s. special envoy says they will meet the two sides of really later today. and the defense ministry has installed missiles after reports that north korea may be planning a long-range rocket test. japanese, korean, and u.s. defense officials say they have seen activity at a test site that is consistent with previous motions. north korea designated what it said was a hydrogen bomb last month in what was a fourth
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nuclear test myanmar enters a new era today as parliament meets for the first time since november's historic election. s nationaluu kyi' league for democracy will dominate the upper and lower houses after its landslide victory. they have made ethnically diverse choices were the leaders and deputies of the legislature, but has yet to name a president. suu kyi is constitutionally barred from the role but said she will take a position above the presidency. over 2400 journalists and 150 bureaus around the world, this is bloomberg news. angie: let's take a closer look at what will be an historic day .or myanmar with david tweed do we know who is going to be president? david: no, we don't. the lady is keeping her cards very us to her chest. we do not know who the
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presidential nomination is going to be. probably, we will get that toward the middle of this month. the existing president, the military president, has to step down at the beginning of march. they need to have someone in place. we also don't know who is going to be the ministerial lineup, the finance minister, the minister of justice, or any of the minister positions. she seems to want to control the flow of information that is coming out. we had some speculation about certain names and she has come forward and said, no, they are not going to be the names. she seems to be very controlling at this stage. one thing we do know is that if you look at the parliament, it has the upper house and the lower house. there are four speakers, two of them coming from her party and one from the military opposition. toseems that she is trying have some sort of national conciliation at least.
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angie: that has been what she has been trying to do. will it even matter who is the president? the lady did say that she is above the president. david: it will be difficult for her to exert too much power that is actually seen. the military still has 25% of the seats in parliament. you cannot do too much to make that relationship with the military difficult. the question is, who is going to sign up for the international meetings? will it be her or someone else? we do not know what the answer is. how she is going to make those decisions is going to be interesting to see. what about policy details? they have been very vague. david: we know they want to increase the tech space, improve
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education, increase the amount of foreign investment coming into myanmar. we do not know how that is going to happen. once again, a lot of policy murkiness in exactly how they are going to do this. the military said, is still 25% of the governing body. so she cannot ignore them. david: it will be a very interesting dance that we see. on one side, you have heard trying to pull the levers of time,and, at the same maintain that relationship with the military, which has 25% of the seats in parliament, but holds on to the ministry of defense, border control, quite important ministry portfolios. she is going to have to try to sort this out. it is almost like a two-party system. ?ngie: what about peace talks they have been trying to get everyone to the table. still, including from the lady, there has been concerning silence on the fight. rosalind: --
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david: this is the issue that we are seeing in myanmar. we do not have clarity as to who are going to be the main people in power, who are going to be the left tenants, what her policies are and how she's going to achieve them. angie: thanks for that. you will be watching for us, no doubt. let's take a look at some events we're going to be covering for you in asia this week. the rba makes its next interest rate decision on tuesday. last time, it signaled a willingness to ease further if required. they will be looking at january's market turmoil and market rout. only one economist we have spoken to seize a cut in interest rate. lowering consumer demand in china may be weighing on tech stocks worldwide. lenovo is hoping its global footprint will save it from the worst of the slum.
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they are expected to return profits wednesday. analysts expect net income of $292 million. thursday sees the formal signing of president obama's landmark trade project. the transpacific partnership. the agreement was clinched in october after seven years of negotiations. tariffsaims to lower and introduce a mechanism for cross-border disputes. and we will find out if japan's -- mcdonald's price cuts will help. it has struggled to recover from a contamination scandal. coming up next, the world's biggest automaker has agreed to buy out its small car unit. talk about that when "first up" returns. ♪
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angie: let's do a quick check of the markets in play around the region. january is behind us. oakley, we are getting a lot more sentiment looking to the upside. that is what we're seeing right now in the nikkei. jumped fter u.s. sony was welcomed with open arms in sydney, the asx climbed
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higher. korea, we did get disappointing exports, imports, trade balance, but none seemed to matter because all that matters right now is that kuroda, on friday, negative rates out of the boj. --gapore to starts trading singapore starts trading a few minutes from now. futures look like it is not going to join the party. welcome to the stock exchange. let's check in on what our reporters are watching this morning with trading underway in asia. >> you mentioned sony seeing a leader on the index. pretty close to it. rising the most in five years. the highest level since 2003. i have got to give credit to david. he picked this out on friday.
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this is what happened to the third quarter operating profit. net income rising 43%. the company announced they are sharesback 5.6 to 7% of -- 5.67% of shares. that is what happens when markets are surprised to the upside. >> so much happened with this cosmetics maker. despite announcing that a nine-month operating profit jumped 90%. they also upgraded their full-year forecast. investors do not seem to convinced. it gained 6% on friday. it is still not in overbought territory. i definitely have some hopes for
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this stock. analysts are optimistic about it. still no movement today. look at that. angie: generally speaking, a good choice to make in recent days and months. daihatsu. >> not too bad. toyota finally confirming it is going to buy out daihatsu. daihatsu is going to do list in july -- delist in july. angie: that is it for us on "first up." thanks for joining us. "trending business" coming up next. rishaad: manufacturing pmi coming in worse than the figure we had an slightly worse than anticipated. nonmanufacturing showing expansion. 53.5.
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any number below 50 shows contraction and above 50 is expansion. we're going to be joined by julie from hsbc in about 12 minute. we will be looking ahead to the nonofficial pmi purchasing managers indices as well. the quarter about to get instant reaction to those unofficial numbers as well. looking at what the bank of japan did on friday, the long-term policy from that. we will be asking sean from westlake and be talking about the australian dollar ahead of the reserve rate decision tomorrow. ♪
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♪ rishaad: let's have a look at what we are watching for you today. jumping the most in a year, better than expected results, douglas seven, t is for sales, all offering a helping hand. offsetting the effect of deceleration. contraction continuing in china. the gauge of that coming in at 49.4. below estimates of the low

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