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tv   Trending Business  Bloomberg  February 4, 2016 9:00pm-10:01pm EST

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3% worse than what analysts were expecting. another dramatic day as the year of the goat draws to a close. oil and the dollar of both weaker. the yen is the strongest in two weeks. let us know what you think of today's top stories by following me on twitter. now, where david trading in london asia -- in indonesia is just getting underway. >> we are waiting for the forecast for that 1, 4 .74%. that is for the full year. it does come in along those lines, that would be the slowest pace of growth going back to asia looking like this. the two stories. everything else but japan. the japanese yen rallies.
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we are way stronger compared to write before the boj came out and surprised the markets. over the course of three or four days, we are back to levels of one year ago. 30 minutes until the lunch break. the rest of asia is looking like this. we are still poised for a weekly drop. the all-important jobs data comes out tonight. ,e are looking for a number 180,000, 190,000, more or less. which would be less compared to the monks before. let's have a look at bond markets. it has certainly calmed down from monday and tuesday. we saw the yields pushing further and further. at the moment, 10-year yields in japan have been hovering around these levels. 5, 6, 7 basis points from late
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tuesday until this morning. there is a lot of caution in the markets right now. just how low can these yields get? we are at record low levels. have a look at the five-year. should be a record low and the that is how low this is. there we go. .18 below the market. it is the doj versus the market. most notes that i have seen are calling for more strength in the japanese currency. just how much can negative yields do? distortions that we have seen over the past six or seven years. dollar-yen, what are we doing now? 116.
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tokyo. sharp surging in a takeover case being hit directly to the board. shares are 8% up right now. the state-backed fund is still in the game. sharp says they hope to make a decision by the end of the month. what is happening? the foxconns technology cochairman wants to close the deal with sharp, sharp do not seem to be in a rush at home. -- at all. they're speaking to management in a bid to further push the case for his plan to bailout the company. not clear exactly who is going to be attending this meeting. sources tell bloomberg that he said he is willing to put down a financial deposit to win out
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against main rival i ncj. he told reporters yesterday that neither foxconn nor incj are preferred at this point. and that losing proprietary information and technology to a foreign company, a non-japanese company, was also a factor. there is one point when sharp looked like it was declining a bid from the government and incj increased its offer to about $5.6 billion. that was the first time to make a personal appeal to sharp's board. there is going to be a pressure this afternoon, where we expect bitear a little more on a bid toout sharp -- bailout sharp. thank you very rising
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more than 8%. with a roundup, starting off with a steelmaker. haidi: overcapacity woes hitting home again. a capital increase of about three point or billion dollars. the company is facing almost $15 billion of bond repayments over six years and it could announce a new share sale as early as this week. the billionaire ceo family trust, which holds 7% of existing shares, that will likely subscribe to a significant portion of the new share selfie sales have fallen 60% over the last 12 months. it has been hit by declining prices as china continues to push cheap steel onto the global market. the company has made deals with the likes of new york's one world trade center and london's wembley stadium.
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shares falling more than 18% aftermarket trading. takingn shares are also a hit. they lost more than a quarter of their value. the company was forecasting revenue of about $3.6 billion this year. declineas much as an 8% . linkedin is facing a slowdown when it comes to sales of display advertising and services for marketers. we are also watching toshiba today. it has widened its full-your loss forecast to a record. $6 billion. the company is continuing to struggle to cope with one of japan's biggest accounting scandals. this would be an almost 30% jump from the previous forecast. about 40% more than what analysts were expecting. jobsba has been slashing and selling off business units in the hope of reversing this slump. still, shares have plunged following revelations that top executives added profits for almost seven years at the company.
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let's take a look at how shares are doing now. it is down by 12.75%. toyota has retained its title as the world's leading carmaker last year. 2016 is expected to be a whole lot tougher. yvonne, you have more on this story. yvonne: we will get some more clues when their results are released. >> given the fact that the company seems to be humming right along and put me as it has , the focus may be on the way toyota is looking at its assumptions in terms of the yen-dollar. it was interesting last week with the boj moved. it surprised a lot of people. in the end, initially was weaker on that news. but you saw some interesting announcements out of fuji heavy just yesterday.
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they are anticipating the end -- stronger than initially expected. toyota was already conservative about where it saw the yen-do llar for this fiscal year. a lot of attention will be paid to if the yen will be weak or strengthening at all through this fiscal year. angie: what about toyota's earnings. -- earnings? how do they compare with other automakers? >> i mentioned the u.s. market being at record levels. record numbers out of gm and ford in the past couple of weeks. just to give a sense, you know, relative terms here, toyota's earnings that we will see later today, we should see a full fiscal year profit forecast that
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will more than exceed gm and ford combined. so toyota is really outperforming the industry, not only from a sales perspective, but from a profitability standpoint as well. yvonne: another story we are why airlines cannot fight stranded passengers. later on in the show, singapore will welcome the year of the monkey into a sluggish economy. there is one business that is booming. up next, india's biggest developer is expecting a solid year for growth. we will hear from their executive director when "trending business" returns. ♪
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yvonne: breaking news from indonesia with fourth-quarter gdp figures. comparedmy grew 5.04%
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to estimates of a 4.8% rise. that is above estimates as far as the quarter on quarter figure goes. it contracted 1.83%. expanding 7.9%dp on the year. asia's property sector is under pressure and india is no exception. voters could bring some relief. measures such as opening up foreign investment and softening interest rates could bring a much-needed push. let's get the view of india's largest developer. we have its executive director and he joins us from new delhi. really great to see you here. we can talk about the third-quarter earnings that just came out you guys this week. commercial leasing really did help boost profits. we continued to see a soft residential property sector in india. are we going to see lower buyer appetite for property in india
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this year? >> obviously, the revenues have been encouraging. the retail has been good. importantly, luxury sales have .one up and contributed it is turning around. this year, a lot of that, the credit has to be given to the luxury homes. luxury home sales really driving that. we do continue to see home sales at the lowest in five years he developers sitting on a lot of inventory. a lot of buyers are being priced out of the market. do you think that home prices -- where are they going to go this year? are they going to fall or remain flat? time,: at this point in
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where the demand is obviously a challenge right now, this is also the time for developers to deliver on quality and time. so i think, as long as that happens, there is hope. ,s far as prices are concerned it is going up substantially. so the two sectors that are doing very well is obviously luxury and the affordable housing. very promising returns. yvonne: in terms of the growth prospects, we could be seeing 7%-8% growth in india this year. the rupee has weakened substantially this year. we are still near a record low. some analysts are projecting that it could fall 4%. is that going to help --
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obviously it will not help the real estate sector, but do you think the r.b.i. as well as the government is working in your favor for the sector with what they are doing with growth measures? aakash: the government, in terms sector toink for any do well, it has to be a collaboration between government and industry. there has been important measures with making india smart city mission. all of this adds a lot to this whole program. relaxed. have been exit policies have been made easier. the nonresident indians have been a major contributor. all of this will help them decide and choose india as a
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market and boost that particular segment. it is going to help the liquidity go up. it is also a very liquid stock for investment. it is an incentive for making investments in the sector. obviously, onet, is a little disappointed that the interest rates did not come down. but i am sure r.b.i. has its compulsions. i see that changing also. more or less, the indian consumer is already reconciled with the fact that there is a certain percentage that he has to pay. thankfully, the investments in the country are in our dna. that is not going to go out. i was going to take a look at your insight on why you think india's economy is more resilient to some of those global growth concerns than china's economy, and we have
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seen from the data has slowed down. aakash: india's economy has always been consumption-based. what is also happening is there is a huge demand. as far as china is concerned, china is transitioning from an investment-based economy to a consumption-based economy. once china devalues, those are concerned that happen. but the indian economy has been resilient if you have seen the past three turns. as far as cyclical changes are concerned, as long as there is demand and consumption, which india has in abundance, it was definitely help. yvonne: in this time environment, real quickly, can you tell us what growth plans
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you have? >> right now, we are concentrating on the luxury segment, is going to be our major push for the next year. we are also concentrating on reducing debt. dlf is going to be concentrating on real estate, the luxury homes business. business hasice been maxed out. therefore, we have lost another project which is another 1.6 million square feet. andwill be concentrating delivering our legacy products and making sure that we given up support to the luxury home sales. much,: thank you so aakash joining us from new delhi
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. >> the stories making headlines around the world. japan stepped up preparation for north korea's imminent rocket launch, deploying more missiles. they were being sent to the southern islands following the government about to shoot the rockets down. the yuan has confirmed north korea's intention to launch a satellite sometime in the next few days. violence returned to the streets of greece in the first general strike since 2016. thousands marched through athens, protesting plans to reform pensions. say many people will have to pay almost three quarters of their income in taxes. the stock exchange index fell almost 4% to its lowest since 2012. u.s. tribunal will rule on julian assange today. 2012 tot asylum in
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avoid extradition to sweden on rape charges. they still plan to arrest him if he leaves the building. julian assange says he will give himself up if the ruling goes against him. and hillary clinton is not the only secretary of state linked to classified information on personal e-mails. rice had condoleezza national security materials sent to nonsecure addresses. the issue has dogged clinton's presidential campaign. journalistsver 2400 and 150 euros around the world cup -- bureaus around the world, this is bloomberg news. super bowl advertisers are turning to celebrities more than ever this year. we will take a look at some of the next. next.e of them ♪
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yvonne: silicon valley is not exactly synonymous with sports. this weekend, some of tech's biggest names, google, intel, even apple, will come out to play. the bay area super bowl is dividing the nfl with custom apps to make the big game the techiest in bloomberg history. emily chang takes a closer look. >> for the end zone, jerry rice, touchdown! emily: it is an american tradition worth billions of dollars in brand equity alone. millions of americans will tune in to watch super bowl 50. a new player is getting more attention than ever -- technology. it starts with an all-star team of tech m.v.p.'s. >> apple was one of our early partners. sap, and on and
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on. >> keep bruce is the head of the super bowl 50 host committee. he is credited with rallying techs just names -- biggest names. >> this is their time to join us and be on the world stage. i think that is why they said, we want to be a part of it. it is just bay area pride. emily: pride that has cost the bay area $1.3 billion to build a high-tech stadium complete with its own mobile app. >> we deliver food and beverage to all 70,000 seat in the building within about six minutes. can watch replays of their choice and enjoy custom entertainment in real time. underhave a wi-fi box every seat in the building. we have all five major carriers. we have 40 gigs.
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miles of cable, equal to 7000 football fields in fiber optics. another super bowl first? a halftime show in the dark and purposely in the dark this time. has something fantastic for the fan base. you should expect the likes to go down and some interesting things to come out. emily: room or it that the stadium is working with crowd connection software for an illuminating performance. >> you need a certain standard of technology to be able to deliver on that interactivity. that is what levi stadium offers. it has unbelievable capabilities that most stadium's do not have. no surprise, that is what is trending on social media, super bowl weekend. heidi is taking a look at some super expensive tv ads. they are as big a deal as the game itself. haidi: absolutely. we are getting some previews of
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this year's ad selection. budweiser is one that we always look out for. they have gone for puppies, the cute factor the past two years. this year, they are going political. we are just ahead of the new hampshire primaries. they have amy schumer and seth rogen setting up a new political party told the bud light party. saying america, you may be divided on so many issues, but you can be united on beer. yvonne: i watched it. it is hilarious. they have paul rudd in there, too. a lot of people loved the puppies. haidi: this year, we do have puppies. the sausage dog for this hines ad. -- heinz ad. grown men dressed as ketchup bottles. it has been related on social media. it is very cute. here is another take. hyundai's ads feature an entire
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town filled with ryan reynolds. it depends on what kind of cute you are looking for. yvonne: coming up next, we will talk about the key events that may move prices further. ♪
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yvonne: the top stories trending this hour. anxiety over oil and the global economy. the regional benchmark heading south for the third time this week. tokyo is leaving losses as the yen holds near its strongest level in two weeks. despite a record day of gains for aussie miners, the sx also in the red, dragged down by consumer and energy stocks. sharp is surging in tokyo. talks have been dragging on for years.
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sharp says it hopes to make a decision by the end of the month . foxconn's $5.9 billion bid is competing with a smaller offer from incj. sharp's ceo said yesterday that both bids were on the same footing. and widening its annual loss forecast to $6 billion. that is worse than earlier predictions. industrial group is struggling to restructure after an accounting scandal in which management had it profits from a seven years. ofits from a seven years. toshiba is getting absolutely crushed. more details on why in just a moment. have a look at what is happening in australia. it is a big mover. we will get you more details in just a moment. it is extending gains. based on what analysts are
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saying, it makes for a good buy for the stock. new crest mining, that is easy to understand. gold hitting a fresh re-month high. i think we are testing new levels because of how scared people are. fort of people are waiting equities. news corp. missed estimates due to falling ad sales. that is dragging shares down in australia 4.5%. what else do we have here? very nice gains here. yamaha, the biggest gain on record. it came out with the holy trinity of stock-boosting news. it raised profit guidance, raised its dividend, and it announced a share buyback. toyota did two out of the three. they raised their forecast and announced a buyback. did not see anything about a dividend, though. upgrade10%, getting an
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from a brokerage. it is also ending an agreement -- let me get that for you and be very accurate. to buy a stake in a chinese asset management company. toshiba, just a little bit of a tease. we will get you more in a few moments. the stock has been bought up and profits were good. i is a noodle maker. the stock is down over two days. i think the chart does it justice more. this stock is the best-performing stock going back to december. it is up over 110%. since june. there is a lot of optimism surrounding the stock. it is very popular in korea. it is based in a spicy chinese seafood dish.
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investment is forecasting sales of $3.8 billion every month. that is cheap. can you imagine the volume around the stock? yvonne: that is a lot of noodles. thank you so much. let's talk more on oil now. prices are back up slightly after we saw a slide yesterday as the new data on stockpiles show record amounts of unused and unwanted crude. let's bring in benjarvus -- bring in ben. we are headed for a weekly drop. it is all about supply. it is. the volatility is set to continue as well. the first couple of days of the week, it declined 11% and that was followed by an 8% gain. we saw the volatility index climbed to the highest in almost
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seven years, march of 2009, but it is supply. when we look at the u.s. crude stockpile, they are at over 500 million barrels. we have not seen that since 1930, when we look at the monthly figures. is 73 millionn barrels a day. if you take out indonesia, which came into the group recently, it is still over 72 million barrels per day. they will see a decline stockpiles with a glut for prices to move higher from here. yvonne: momentum driving the price action right now. any positives on the horizon? of 2016 isrst half seen as a tough year. online.iran coming back we have consistent u.s. supply. it is all looking pretty poor for the producers. with exxon and chevron and shell and bp, the results coming out,
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it is really tough. to second half, expecting see u.s. production come off and prices to rise. morgan stanley said yesterday that the rebalancing might not happen until mid-2017. it will be interesting to see how it plays out from here. rough to be a put your seatbelts back on, i guess. the hp and rio tinto are extending gains after they enjoyed their best session in seven years. shares are rising in a falling market as a weak dollar makes commodities more attractive. let's get more with paul allen. is this the end of the pressure on australian commodities stocks? paul: wewill have -- will have to wait and see, but it is an encouraging sign for the holders of these stocks. bhp and rio enjoyed double-digit gains.
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an impressive three days of gains for that stock as well. ,s for reasons for all of this iron ore continues its comparative rally. it is up 9% this week, now sitting at $45 per ton. as well,lers suspecting that they may be cashing out of this market now. is,o how sustainable it china's stakeholders issued a statement saying chinese steel production is going to start closing 100-150 million tons annually until 2020. iron ore supply is still growing. the challenges still remain for the sector. yvonne: still some questions. the australian dollar nudged a little lower after the reserve bank released a quarterly statement of monetary policy. what did it have to say? the bank said that scope
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remains for further easing. possibly run of the reasons -- one of the reasons we saw weak sales data out at around the same time. this quarterly statement of monetary policy is not a huge surprise. reiterated australia's growth target, between 2%-3%. no change since november. what they did note china as an ongoing source of uncertainty for the us trillion economy. mining investment looks to remain subdued. very encouraged by what he sees in the jobs market. jobs shows improvement in the labor market that was not there in february. let's check out some other stories we are following today.
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the last quarter, hit by continuing global oversupply. sales, two thirds of which came from outside india, fell 17%, leading to a net loss of $315 billion. prices are under pressure as china floods the market with surplus metal. india's third-biggest producer also reported a loss last week. singapore airlines sees but the skies ahead amid rising competition from budget rivals. increment southeast asia's biggest carrier rose in the last quarter while offering profits in the double. the airline sees challenges on the horizon when volatile travel demand and growing pressure on loans and deals. in tokyo.k on nikon shares rose in club -- rising close to 5% after they beat expectations. $87 million when analysts were expecting $65 million. the company expects full-year
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profit to be unchanged. the toshiba share price has sucked to december 1989 levels -- sunk to december 1989 levels. really great to see you. put these four-your profits and losses in perspective for us. a stock falling to 36-year lows. >> another terrible day for toshiba. to put things into perspective, about a year ago, this company, 140-year-old company, was worth about 18 billion dollars. yesterday was worth about $7 billion. today, it is worth about $6 billion. this company has gone from bad to worse. yesterday's announcement, they widen their full-year operating loss forecast by about $1 billion. that is why it is dropping today. when people ask why it is still a story, the news broke in april
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about the accounting scandal carrying on for almost a year now. ,he response to that is firstly, investors do not believe everything coming out of the executive's mouth. just take this last forecast. three months ago, they did not know that that existed. now they are saying it will be $1 billion more. who knows what is coming up next? investors do not believe everything the company says. i think investors still think there are more skeletons that will be found. that is the first reason, a loss of confidence. the second reason is that the investors in the company, the way it is trying to stop the losses is by selling assets. it is trying to sell its chipmaking business. it already sold its image sensor business.
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it is selling off chunks of its business. i think the fear is that it might be selling off a little bit too much. it is a chip-making business. memory chips account for pretty much 100% of operating income. there are talks that they might spin that off. investors are wondering, ok, just how bad are things? egg,u sell your golden what is left? yvonne: the third quarter loss was five times what analysts were estimating. what is the outlook for toshiba now? to say where they are in their restructuring process. decide selling off the business and cutting a lot of jobs, are we at the bottom yet? it is really hard to say. know,s feel like, you everything that possibly could go bad has already gone bad.
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we got news last month that they might have -- they wrote down their westinghouse assets. ready much every business has been affected. how much worse is it going to get? the japanese fiscal year ended in march. it will be exactly a year from when the scandal broke. i think we will see some announcements then. thisthat be the end for plunge in shares? they have come a long way. the most important thing is rebuilding investor trust. can people trust the things that come out of the house -- thei r mouths? that is the key thing right now and why shares are down 13%. yvonne: meeting some confidence. thank you very much. is taking a beating
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after its sales forecast fell below expectations. .hares falling close to 29% cory johnson broke down the numbers for us. cory: linkedin reported fourth-quarter results that were even better than analysts were looking for. but their guidance fell for the first quarter. for the full year, it was far below estimates. , slower growth. talking about international growth being difficult because of global economic weakness. so they were reporting results, guidance a lot worse than analysts were expecting. the stock selling off massively in after-hours trading. on the conference call, a little more upbeat. new solutions for customers, trying to get salespeople to use linkedin every day for prospecting and understanding who they are selling to. an interesting focus on products and a lot of big shifts in
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products. they took a whack to the stock price. it was an expensive stock before , before announcing results. fourth-quarter results were pretty strong for the company. revenues at an all-time high for the fourth quarter. but not enough growth. the stock selling off big time. yvonne: coming up, the spread of the zika virus. his asia the next region at risk ? we will have those details coming up. ♪
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haidi: international donors have million to help people displaced by the fighting in syria. 70 countries made the pledges at a conference in london. havet 4.5 million syrians fled their country during five
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years of civil war with billions more still in need of aid. as the donors met, syria's army and its russian and american allies continue to attack rebel strongholds in aleppo. it threatens to create a new wave of refugees. hkreli has refused to testify at a hearing into price scouting. one question he repeatedly invoked is his fifth amendment right against up discrimination. provoked anger when his company hike the price of a potentially life-saving drug by 5000%. after the hearing, a tweet described the lawmakers as imbeciles. the first phase of what will be the biggest solar powered network in the world. they use mirrors to focus the sunlight and power turbine generator.
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the eu and private european banks are among the factors of the 900 and dollars facility -- the $900 million facility. powered by over 2400 journalists around euros -- bureaus the world, this is bloomberg news. has called the zika virus and international emergency. should asia be worried about zika? virus is carried by the same mosquito as dengue. measure, asia would want to be alert. there is a chance that mosquitoes could transmit.
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we have had zika in asia for many years. there have been sporadic cases. you are seeing something really unusual as to why this is responsible for a neurological condition in babies. yvonne: how fast would zika spread in asia if travelers bring it in? anjali: that is a hard question because scientists do not know a lot about the zika virus at the moment. aboutave questions whether asian populations might have immunity. a lot of it is wait and see. there are going to be travelers coming in. they do not think it is necessarily anything to panic about. it could take a while to spread, if any at all. yvonne: when these types of viruses hit, everyone questions the economic effects it could
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have. what impact could it have on asia? diseaseevery infectious tourists you see that want to pull back. asia has not had a major outbreak and there have not been many effects so far. i would watch for the travel industry. yvonne: thank you so much. just ahead on "trending business ," it is tri-mode -- time to talk about a lunar new year tradition, a rare bright spot in singapore's economy. ♪
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yvonne: you are watching "trending business." welcome back. singapore will welcome the year of the monkey into a sluggish economy. consumer prices falling for a 14th straight month. all of the gloom is not enough to keep down the prices of good baue pork. checks out this unique economic indicator. linda: i am here at one of the most popular pork places in singapore. just how popular? take a look around. queues you are seeing here have been here for at least four
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hours to secure their share of pork. there are those who have been queuing up who bought $8,000 worth of the bak-kwa. it? exactly is it is the chinese version of beef jerky made with pork. pieces,aramelized pork which has become increasingly popular during the lunar new year festivities. they are consumed and gifted in huge amounts. understandably, during this period, prices soar. bloomberg has been tracking the prices for years now. there is a bloomberg index. let me show you. even though singapore's overall consumer prices have dropped, bak-kwa has surged, prompting
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sellers to draft -- to jack up rice's the most in years. kwa is no monkey business. you hungry yet? it is not just the price of pork that is affected. the holiday will be celebrated in countries throughout asia. the impact is probably felt the most in china, where the world's biggest human migration takes place every year as people go home for the holidays. the migration means tickets for trains, planes, and buses are booked months in advance. travel within china jumps and traveled from outside slumps. every year in the run-up to the lunar new year, foreign arrivals to china nosedived as the tourists stay away. bad onyou thought it was a regular day, things will get eve of thenday, the lunar new year. air pollution spikes approaching midnight as millions of people throughout the city let off fireworks.
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it is happy friday. a beautiful morning in hong kong on the last trading day in the year of the goat. decorations are out in full force across the city and much of asia as well. the goat was supposed to be somewhat thoughtful approved to be anything but. astrologers say the year of the monkey will be even more uncertain. they also say there may be a silver lining here. it may be easier to resolve conflicts and struggles. stay with us. before we go, hong kong, shanghai, and japan looking like this right now. the hang seng seeing gains. than 250i falling more points right now. kospi is how the looking now. pretty much flat. taiwan also falling .8%.
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we are watching foxconn as the chairman saving this bid for sharp. foxconn islosed, but the one to watch for the day. malaysia, the philippines, and indonesia, how things are looking in southeast asia. the philippines up about 1%. jakarta, a little bit of green at 1.9% up. that is it for us. stay tuned for "asia edge" and the big stories of the day so far, including looking ahead to the year of the monkey, hoping the markets will go bananas. "asia edge" is next. ♪
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charlie rose: we begin with president obama's address at the islamic society of baltimore. it was his first trip to a mosque as president. he spoke at the israeli embassy last week. he will appear at the presidential prayeea


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