tv Trending Business Bloomberg February 17, 2016 9:00pm-10:01pm EST
takeoff, boeing signs another big deal in china as ok air buys a new 737. you can let us know what you think of today's top stories by following me on twitter. do not forget to include the #trendingbusiness. trading in indonesia is just getting underway. zeb eckert joins us with a look at the markets. give us a sense of the big picture todayz. eb: the big picture is a decent picture. emerging market assets are doing well. advancecontinuing the we are seeing all across the region. nowof the major markets trading higher today.
what we saw on wall street overnight, the s&p 500 averaging its first three-day rally this year. the longer these rallies go on, the more we have convincing evidence that investors believe in the strength of the market. last week, the markets dipped into a bear market and there was a lot of talk about whether the selling was overdone. this morning, we had the latest trends numbers from japan, not the strongest that of numbers, but stocks are advancing nonetheless. risk, andtake on more you see stocks rising. in china, we know in the past hour, we about the latest read forpi and prices producers.
we see consumer price inflation continuing in china. the take away is this -- something investors should feel good about. let's not forget that domestic demand is one of the key elements of the chinese government. take a look at what is moving to the upside in hong kong. today.pany rallying petro china, a nice move. we will watch that very closely. australia, the latest jobless numbers, 7000, i believe. numbers for commodity related shares. mining is not doing terribly well today. nikkei 225across the
.n tokyo, a 2% advance bridgestone, take a look at this, the tire maker down by 3%. day of, we have a nice gains setting up as we are one day away from the end of this week. quite a turnaround from a week ago. essentially decisive twist in the #get -- in the sharp saga. i cannot really say i am surprised. japan is not really known for being open to overseas investors. what is going on here? >> according to our sources, two of sharp's directors supporting foxconn's bid may be excluded
from the voting because of a conflict of interest. they work for japan industrial solutions, a private equity firm that owns preferred shares in sharp. to make things even more complicated, the plan is calling for converting the shares to common stock and the stocklation of referred -- preferred stock. excluding two foxconn supporters from a vote that is already a close call. shery: what are the offers on the table in front of sharp? foxconn's investment is actually much bigger than that. ¥660xconn is offering
billion as well as bringing it customer base. j is offering 300 billion. that theument is private equity fund, they will have to exit and 5-7 years. site? any end in this has been going on for months now. foxconn has been courting sharp since 2012 and their deadline is february 29. our sources tell us the vote on the final decision may, soon as this saturday. -- may come as soon as this saturday. shery: let's take a look at some
of the other stories we are watching today. start us off with apple's fight against the u.s. government. tim cook has written a letter to customers telling them to agree to u.s. court order and unlock an iphone would set a dangerous precedent. phonei wants access to a used by one of the san bernardino shooters. the ceo of google has probably supported tim cook. donald trump says apple should comply with the court order. spanish police have arrested five managers. officers raided the bank as part of an inquiry into suspected money-laundering. the beijing-based bank, the world's largest lender,
allegedly facilitated the transfer to china. says it is cooperating with the inquiry. europe will size the raid is .art -- they say the raid shares in hong kong are up today, up 2.5%. to -- heck tell you toyota shares after the carmaker overnced it is recalling suv's.lion rav 4 the problem affects belts in the second row of seats. known if anyone has been hurt or killed because of the flaw. towill be fixed to no cost owners. -- shareslt issue
it is one of the few headline stories at a rather muted singapore airshow. amin is there for us. boeing must be quite pleased. bet.u please done expected -- pleased and expected. growth, what will all of that do? always nice to have you on the show. what kind of numbers are you anticipating? of the highest growing regions. units.expecting 3750 of a chunk of the
market. >> sounds good, but when you take a look at what he has been saying, you must have to re-look at your numbers. >> we continue to look at the numbers regularly. we are very close to our customers. if you look at southeast asia, we have big market customers like singapore airlines, and we also have other parts of the world. has taken delivery of 165 airplanes. they have several more on order. the thing about this part of the , it is not like you contrived like in the united states across the country. 17,000 islands, demand will
continue to grow. ofwill be a healthy growth seven or 8% over the next 20% -- 20 years. we feel very bullish about our prospects. he looks at the region and he -- he has about 230 with our customer line. >> i am going to play doubles advocate. -- devils advocate. we are seeing some other carriers canceling orders. there must be some hesitation. lucky at boeing.
another airline in this part of transitioning to all boeing. >> when you take a look at the for boeinge numbers lagging behind airbus. what are you going to do? >> the statistic that fuels it is in india. --that will last them for another five to seven years. has, as ithat indigo understand, is for 430 units.
we are more than comfortable where we are. i think overall, we will continue to be leading in the wide-body segment. >> let's stick with india. some say it is ripe to explode. >> india has been our largest with country and are forecast. -- in our forecast. understand the base is very small. india is adding a significant number of airplanes. india, if you look at the exchange rate, the all-time high dollar is a deterrent.
thingsinds of negative are more than offset by a very low oil price. india are showing profits after profits. spice jet has been profitable after a near debacle a year ago. we are quite bullish. all of those are really positive signs for india, too. the thing i watch for in india is the overcapacity. the moment we have overcapacity, nobody makes money. >> and china? >> china is growing. it continues to do better. >> what kind of growth can we anticipate? >> about 7%. the chinese new year just past.
a little bit smaller growth than they had the year before, but it is still positive. china and india are growing at a pace that nobody imagined. gdp growing at a fairly high number compared to the world. we are well placed in both of these countries. >> no surprise there is keen competition in the aviation space. airlines are constantly trying to cut prices. are your customers asking you for cheaper prices? >> tenures ago, it was the same. 20 years ago, it was the same --
10 years ago, it was the same. 20 years ago, it was the same. to have the right product that meets capability, and to get the , that is where the future is. customers are happy. ,he next phase we are entering we have time to work with the cut the whereby we can cost on maintenance of these airplanes. want to be offering the best amenities and they will leave the rest of it to us.
qantas ordered the 787 last year and they ordered eight airplanes. qantas went through a significant restructure and now they are profitable. they ordered eight airplanes. they want to use their capital effectively. >> are you expecting more? >> absolutely. it is hard to quantify that. moreld say they are adding 787's. another airline in australia .hich is predominantly boeing >> always a pleasure. you heard it from the man himself. another day at the
singapore airshow. the stories making headlines. the u.s. says commercial satellite images appear to support claims that beijing has to put missiles on a disputed island in the south china sea. also claimed by taiwan and vietnam. at least 28 people have been killed in an explosion. contraryk targeted a -- a convoy of military vehicle stopped at a traffic light. turkey will find those responsible and step up the fight against terrorism. launched aompany has smart phone set to be the world's cheapest. display four inch color
over to paul allen for more. once again, the jobs data pretty confusing and astounding everyone. paul: we would be disappointed if january were any different. jobssts had predicted 3000 to be gained in january. and we got 7900 jobs lost. it did come on the heels of some scarcely believable numbers in october and november when some amazing amounts of jobs were created driving the unemployment rate down to 5.5%. we saw the australian dollar fall when that news broke.
australia may have gained a few more jobless in the unemployment queue. let's turn to earnings. it is a busy week for a still your right now. reported agy has falling profit today. paul: down 27%. announced cost-cutting. the debt has already been reduced by 5.5 billion. the chairman said they may have sacrificed a dividend to achieve that. oil prices remain stubbornly low. the markets shrugged all of this off and origin is up almost 6%
this morning. shery: we also have treasury wine, evolution wine -- evolution mining reporting today. paul: it is a big day on the earnings front. evolution,ofit for cash flow of 250%. production guidance also looking good. -- that will be reviewed due to the strong cash generation. 4.5%.ock is down shery: coming up next, refusing access. we will look at why apple is saying no to the fbi and how that decision is being received on social media.
a decision on its future could come as early as saturday. want two board members excluded from a final vote. the japanese government backed group is competing with a much bigger bid from taiwan's foxconn. the aussie dollar has weekend after unemployment jumped unexpectedly in january with almost 8000 jobs lost. the government is struggling to support growth against the backdrop of stagnant wages. let's go back to zeb. zeb: despite some concerning economic numbers, cpi numbers in china were not as bad as they could have been, we are seeing games today across asia. a risk rally, which some
investors are saying you should sell on this risk rally. that is according to a tweet by bill gross which is gaining some interest. the s&p 500 seeing a nice rally, a three-day rally. asia,ere, as we look at southeast asia is now online. a nice performance in singapore. these are the movers. noble group is up in the session. investors optimistic --
hutchison is up 4.7%. let's take it back to hong kong. a solid performance today. no surprise that will related stocks are among the biggest decliners -- oil related stocks are among the biggest decliners. shery: let's keep talking about oil because that story is huge. oil has extended gains in new york and london after iran says it supports the freeze initiated by saudi arabia and russia. tehran has not committed to any curbs of its own. how significant is that fact? >> iran is the most important
cog in the whole equation. it wants to increase its output because sanctions have been removed. with iran saying -- they are looking for more room to move. national ceoranian saying they would reach -- that is halfway to wear their target is. iraq waswas part of -- part of those discussions yesterday but we have not heard any correspondence. that country has increased output by 70% over the past five years as they recovered from the conflicts. will the rock be a part of it -- will iraq be a part of that as well?
shery: investors need to shrug it off. >> the important thing is saudi arabia and russia said they will only participate if other countries participate. that is the key. saudi arabia has always said they would cut output if other countries participate. remember the old 13 million barrel a day quota they had? there was never any compliance. whether it goes ahead is unclear. you have oldman saying even if there was -- you have goldman sachs saying even if there was a freeze, he would have little impact on prices. shery: why are we seeing these price gains? >> it is largely because of speculators.
no change in the fundamental situation. situation is not moving. those speculators are trying to pick the bottom. shery: always adding to that volatility. at the singapore airshow has been dominated by two themes -- the price of fuel and southeast asia is growing overcapacity -- southeast asia's growing overcapacity. thank you so much for talking to us this morning. let me start with some of the concerns we are having about aercap. you have not had the best start to 2016. your stock is down mostly over concerns about china. are those concerns justified? >> no, they are not. what we are seeing on the ground
in china is robust demand for aircraft. domestic chinese traffic is growing at a very healthy rate of 10-12% a year and we do not see that slowing down. that goes for most of the emerging markets. part of the world where there is difficulty and that is in south america, driven by brazil. the chinese market is very robust for us. what we see, we will buy, sell, or lease an airplane every 24 hours somewhere in the world. we have a view into end-user demand and sentiment on a global basis. in terms of china, we just do not see that. we see the rising middle class. citizen for the lunar new year, they could have
taken a 24 hour bus ride. but as more people live in -- move into the middle class, they can take their first flight. see a falloff in demand in china. shery: how about a weaker yuan? how are the declines of some currencies affecting your business? you mentioned some parts of south america. what about russia? >> of course, there has been a tremendous weakening -- the ruble, of course. a very that, you do have significant reduction in the price of fuel. americarussia and south , someone like us, we took over 30 airplanes out of russia in the last year and we moved them around the world to other
countries where there is still very healthy demand. europe.t asia, western the drop in fuel is a massive tax cut to the consumer on a global basis. for the airlines, the depreciation on average of currencies around the world is far less than the drop in fuel. the drop in fuel has been a huge boost to airlines around the world and it has far outweighed the drop in the currencies. in china, there is an awful lot of news about a 1% or 2% movement in the currency. fuel over the last 18 months or so has gone from well north of $100 a barrel to $30 today. the lower price of fuel is making airlines a much healthier commercial enterprise and it is
also generating additional traffic. there are routes that were not profitable for airlines to fly at $100 a barrel which are extremely profitable to fly at less than $50 a barrel. shery: exactly. how does that affect the leasing industry when it comes to less fuel-efficient aircraft? aircraft, ader boost we did not think we would get. ,he gas guzzler type airplanes assumed all of these airplanes would be scrapped. what is happening is that airlines are saying, we think fuel is going to be lower for another 18, 24, maybe 36 months.
we will extend them for two or three years. in the end, there is a hard stop to how long they will take these aircrafts. these are the most expensive seats you will ever sit on. it would cost about $20 million just for the interior. shery: how about consolidation in the industry? we have seen a chinese takeover and we are seeing -- will this trend continue? what are your plans? consolidation, most of the owners of these companies like them. they are profitable and stable businesses so they are reluctant to part with the company's. -- two part with the companies
-- to part with the companies. consolidation is -- maybe there will be a little bit of it. i do not see too much of it happening. you have aercap and general electric and then there are a bunch of smaller guys. maybe there will be some consolidation amongst the smaller guys. shery: that includes you? no plans whatsoever for aercap? robustre generating very levels of profitability. the correct allocation of capital is always at the forefront of our minds. we can reinvest back into the business by buying airplanes or we can do that from manufacturers or airlines or
weakened by someone else or weakened by -- or we can buy someone else. use of the ricght capital -- what is the right use of capital? we will continue to be very careful to drive the long-term shareholder value. whatever makes the most sense for the shareholders is what we will do. much forank you so your time this morning. let's check in some of the other stories we are following. retailers say sales have slumped over the lunar new year holiday. 25e-store sales from january to valentine's day for 28% lower than in 2015.
be worse thanill the previous one. luxury retailers in hong kong and macau have been hurt by the slow down in china. -- the deal is expected to be completed in the latter half of this year. apple has confirmed it will not help the u.s. government hack an iphone. tim cook is fighting a court order to unlock the phone of one of the san bernardino shooters. he said it is a chilling attack on civil liberties and apple cannot be forced to create a key
to unlock its devices. let's see what the reaction has been on social media to that story. to cook writing a letter customers to explain the situation. juliette: it is posted on apple's website, quite a lengthy message. it sets a dangerous precedent. he is drawing a line in the sand saying customers expect apple to do everything in their power to protect their personal information and while apple has great respect for the professionals at the fbi, they really do not want to go ahead with this. quotes. of tim cook's apple committed to safeguarding data.
personks no reasonable -- tim cook does not tweet that much. google ceo has written five tweets. on the flipside, donald trump has been asked about this quite a bit at his campaigns. he came out swinging. he agrees with the court order and it is disgraceful that apple is not helping the fbi. the tweets i have been looking through from apple users are happy.
this is a little bit interesting. a little bit interesting. shery: it is a pretty interesting case. the implications for other tech giants, basically. the latest on the battle between apple and the u.s. government. central-bank may take action on rates for a second straight month. we will take a look at what is expected after this very short break. ♪
humanitarian supplies have began arriving in the besieged areas of syria. governmentsssia agreed to broker a cease-fire, but there has been no let-up in the violence. nike has dumped manny pacquiao after he said supporting gay -- he remains opposed to same-sex marriage. january's figures are in. nine months in a row, january stands out as being above normal. the temperature was more than a degree celsius above normal.
temperature of the planet was two degrees above normal. powered by over 2400 journalists in 150 euros around -- bureaus around the world, this is bloomberg news. shery: we have a rate decision in indonesia later today. 2015sia comes out with its gdp report. david is watching all of this for us. expecting -- the bank of indonesia to be more proactive. sense of how get a important that rate decision is. lost inry easy to get
the midst of this constant stream of data points. divert, but every now and then, we get something very consistent. economy,asia's largest that is how exports looked in january. every single one. that is not a statistical aberration. because china's imports in january was down 18%. this is what we are expecting from the bank of indonesia. 17 out of 28 think they will have to bring it down to 7%. those are the forecasts at the
shery: a young indian tech firm could be about to shake up the mobile industry with a four dollar cell phone. let's cross over to mumbai. how can anyone sell a smart phone for so little? >> it has been with substantial intervention from the government. even as the government is going all out to reach investors, it landed at hishas
doorstep. it has launched the world's cheapest smartphone at less than four dollars. this market is only set to grow. india to be the largest smartphone market globally. it was officially unveiled by the company yesterday. company, thesee are the specifications. all the high-end features you could expect on a phone. the company attributing the cost and benefits to the government.
shery: thank you for that. let's get a check of the markets. we have asian stock screening -- asian stocks gaining across the board. the shanghai composite rising for a third consecutive day. today afterising exports fell for a fourth consecutive month and dropped the most sense to thousand 9 -- since 2009. stay tuned for "asia edge." ♪
from our studios in new york city, this is "charlie rose." charlie: ash carter has spent more than three decades steeped in the world of defense and technology. he is now the public face of the campaign against isis in iraq and syria. u.s. policy has come under scrutiny and carter has had to defend it. i sat down with him earlier today for a wide-ranging conversation. we talked about u.s. strategy, the role of technology, his goals for leaving office, and more. mr. secretary, you said in a