tv Trending Business Bloomberg February 22, 2016 9:00pm-10:01pm EST
the u.s. safety regulator investigating its investigation of airbags. more vehicles may need to be recalled. follow me on twitter. this is the #you should always try to include as well. let's have a look at what is going on elsewhere. indeed muchsses and positive. the bulls were try to put their hats on. >> we are losing a bit of steam when it comes to the start of the session. about 4/10 of 1%. that more red and green. those losses about half a percent down right now. seeing some rapid gains on manufacturing. that excitement that we saw
earlier with the securities regulator seems to be fading as we head into the g-20 meeting in shanghai this week. the sox are down one third 1%. we are seeing a rally when it comes to materials such as iron ore. really raising the sentiment on mining. dragged down by telecom and utilities at the australian stocks today. we are starting things off in the grain. down by one third of 1%. we just heard from chris would talking about how asian stocks are a long term by opportunity. he still thinks that fundamentally they are cheap. but some analysts are saying there really isn't much of a market trends that we have seen recently at the start of this year. today. picture here let's take a look at the oil
rebound. the iron ore rebound. the australian dollar. you've seen these figures from about mid-january. it is interesting because when you take a look at the gains is awe have seen there sign that we could see more gains to con. that resistance level of the 200 day moving average of 72.75. the prospect that it may extend its gains even further. jpmorgan is saying that. getting some momentum here on a possible rally. looking at 72.45. everybody's talking about the pounds. seeing a little bit of the lift today. 141.41 right now down 4% year to date.
thes versus cameron on british issue. could bring the euro down with it. if the united kingdom exits the european union, that could be a whole new question about the european project. rishaad: a surprisingly rising number in sydney. the world's biggest mining company. dividend.ts and they are rearranging some of the top brands there. a huge loss. juliet: let's start with the headline number. the world's largest mining hugeny posting a first-half loss. this compares to a $4.3 billion profit in the same. last year. a fives were expecting $.5 billion loss. it has really been hurt by falling commodity prices. particularly the big slump in iron ore.
and the mining disaster in brazil. a great deal of volatility. this bigger than expected first-half loss has really prompted a larger than expected cut to the first-half dividend. this is in fact the first time that dividends have been cut for bhp since the merger in 2001. that dividend cut was to $.16 from $.62. it to bewere expecting cut by half but the cut was more than that. it is a blue-chip stock is owned by many so-called modern investors in australia that are searching for a high-yield. bhp's progressive dividend policy that it must increase every first-half again at the inl year was unsustainable the current climate. in fact the last time before that merger in 2001 that the dividend was slashed was in 1998
when bhp was a standalone company. now of course this cut in the devon and really is part of bhp's plan to turn the company around. it is continued pressure on iron ore prices. the the the iron ore unit jimmy wilson is going to depart next month. we're also seeing the head of the petroleum division tim kane live at the end of the next month. mike henry will take over that iron or division. combining that with the copper and nickel assets. and steve hauser will be appointed to succeed in the petroleum division. at least bhp appears to be doing all it can do to appease its shareholders after the prices slumped 43% over the past 12 months. rishaad: let's have a look at what is going on on the opposite. we're talking qantas here. this is kind of weird.
despite underlying first-half profit more than doubling to a record $666 million. let's go to qantas headquarters in sydney. how does this stack up next to the thinking here paul and why we have this big fall when we have record profits coming through. paul: i'm glad you're feeling confused about it because i'm finding it counterintuitive as well. even as i left qantas number of qantas staff were also expressing skepticism about what is happening with the share price. the numbers are pretty good. the first-half underlying profit of 921 million actually beat analyst expectations. the net profit of 668 million was good. there is no interim dividend but that is nothing new. there was some good news about the shareholders for the ceo alan joyce announcing there will be a half million share buyback
plan and here's what had say about that. because of the cumulative tax losses that we had over the past two years we don't have a huge amount of credits left to pay a frank dividend which is very important for the australian shareholders. so after having a look at the best way of returning the surplus cash that we have to the shareholders, we and the board felt that buyback was the most efficient way to do that. until the franking credits built up again in the future. and then that could be the more appropriate way. course we have to mention the oil price here. we coil has really helps qantas a lot. their fuel cost has dropped to $3.4 billion from $3.6 billion. that is partially due to the weak australian dollar. the management is really keen to highlight the good management over the past 12 months. pointing out that this $2 billion transaction program and
all of cost-cutting went with it is now really starting to pay off. just couple of years ago we were talking about alan joyce his job might be on the line. thatuld be bold to think now. he says he wants to remain ceo for as long as the board in the shareholders will have him. rishaad: thank you. companyve a look at one now that has seen its share price down by about 60% in the past year. and seen credit downgraded as well. let's have a look at that company and indeed some of the other stories making headlines. you'll group's warning investors that will post a net loss for the fourth quarter and for the full year. after 1.2 billion dollars in extra charges stemming from commodity price declines and the sale of its noble agriculture limited unit. double has come under fire the past year shares are down 65%. at it tumbled as the chief to attacksfficer
from short sellers. there was an anonymous group called iceberg research that set accounts were misleading. noble shares are falling today and active trading. deutsche banc is planning to cut jobs. it is europe's biggest investment bank by revenue. cuts will be focused on london and new york. the fixed income division. according to a deutsche bank spokesman. the trading empire that was built by his predecessor. it calls for axing 9000 jobs across the firm by 2018 to help reverse a share slump that has made deutsche bahn the lowest valued global lender. early indications on china's economy for february shows a slowdown there. hasn't yet hit bottom. private cages of manufacturing and services felt a new lows. business confidence slipped and small and medium-size businesses deteriorated. the g-20 finance chief and
central bankers prepare to meet later this week in early economic data points suggest continued stimulus is necessary in china. the state-run news agency is that with its own assessment saying that in a commentary the 2015 slowdown was not as bad as someone make it out to be. rishaad: later, the party may be ending for indian affairs. he struggles to pay off the debt. weekly from mumbai to the details. singapore carpooling. that differentiates itself from the likes of labor. uber. ♪
rishaad: about to getuber some more competition. doing so in hong kong. the company's chief executive joins us here. it is already up and running in singapore. you are kicking thing off in the , second quarter here in hong kong. why? we have got uber and others. what difference can you make. what is the difference between you and those other guys? we are not a taxi company. our drivers are everyday drivers. in singapore. give you somenny numbers. 30,000 or so taxis in singapore .n that is the key to increasing
the supply in singapore in terms of the numbers. for our business we are targeting the 600,000 private car drivers. that is an untapped supply. rishaad: i have a little app that goes off saying someone wants a lift. how do i make money from that? >> in singapore you can actually defray the cost of the trip. you can profit from the carpool. you can defray the costs. it allows to trips per day. our apple actually match you with a rider or a driver is going the same way as you are. you can split the cost of the trip. you can also make a friend and most importantly a safe environment. rishaad: the social good here. that is what you're trying to do. but that brings us onto another issue. you have insurance applications.
>> right now there is no application on insurance. what you're actually doing is to give someone a lift along the way not for hire or reward. essentially it is just like giving a friend a ride. the key thing is that this is a for profit model. is no different than getting your colleagues a lift at the end of the day. rishaad: up someone picking you don't know. it could be a mass murderer serial killer. >> safety is a very very of ournt component platform. you are sharing a ride. trust is a very important factor. we do verification of our drivers in our network. and check the driver licenses and insurance and other documents. the writers can also submit that if they wish to. verification of profiles is one way to increase safety. the second way is we have a
robust review system. at the end of every trip the rider and the driver will review each other. it is a sort of community policing mechanism. and lastly, we have bought a third-party general liability coverage for sexual assault. trying to increase safety on our platform. rishaad: you are looking at hong kong. where next? we are targeting similar countries with similar regulations. the commonwealth countries. we'll announce that in due time. rishaad: what sort of cash are we sitting on and what are your financial needs? >> right now we have $2 million. we are in negotiation to race the next round of funding. we have gotten a lot of traction in singapore with the short span
of time. 50% month on month for the last five months. very good traction. investors are really interested in this company. i would say that we are the real-time mobile application in this particular region. rishaad: unicorn yet.uite a what are we talking about in terms of valuation? >> right now about $10 million. rishaad: how long do you go before you look at an exit strategy and what would your preferred exit strategy be? to focus to continue improve our service and make sure we continue to have as many people as possible on our platform to give them a choice essentially an alternative to move around the city. in a most social way. a more sustainable way as well. rishaad:
how supportive have the authorities been in singapore? >> the authorities have been very very supportive of our push. singapore is proving toward a car like city. i think singapore has been in the forefront in terms of regulation and in terms of emphasis on the sustainable aspects of the daily commute. rishaad: is a city with very expensive cars. need.e licenses you >> a big part of the sharing economy. the great thing is we give people access without actually needing to own a car. to carpooling. rishaad: thank you so much for being here, terrance. getting into the carpooling world. >> now to the stories making headlines around the world. the united states and russia say partial cease-fire in syria will
start at midnight on saturday. in a joint statement the two power said that arms group do want to take part have to say so by friday. the islamic state and other eu and designated terrorist groups are excluded and attacks against them will continue. washington calls in a moment of promise. president putin says it could radically change the syrian crisis. than 1000 migrants arrived on the greek island of less post on monday. many of them fleeing the war in syria. more than 100 migrants have landed on greek islands and nearby turkey so far this year. despite the greece and macedonia border being closed. a new study says shutting the border would cost the eu economy more than $1.5 trillion over the next decade. officials in new delhi same could be several days before running water is restored to millions of people. troops about taking control of the canal that provides safety percent of the area with water. it was sabotaged by protests by
rishaad: the biggest auto industry recall in the u.s. is about to get even bigger. u.s. regulars are looking into all the contact places that use the troubles propellant. this could mean tens of millions of more recalls for the airbags. we will show you what this is all about. quacks this propellant is the safety of ammonium nitrate.
there is kinds of propellants. the one that is in question right now is the ammonium nitrate. it has already expressed concern this this the safety of it propellant in these insulators that ruptured and sprayed shards of metal and plastic. now regulators are coming out and saying that they will look into all of these propellants that are using these kind of devices. because of the consent order with the company back in takataer with th they can do testing based on field data. than 28 million. the transportation secretary in the united states is now calling for vigilance even among automakers that have yet to recall vehicles using these airbags. the company meanwhile is saying it is cooperating fully with regulators and customers and they continued to test their
inflator is built with these air bag kits and raising consumer awareness. rishaad: how many more cars could be recalled? it could be as many as 70 million. more than that. 70 million to 90 million cars could be recalled. that is globally not just the united states. takata talking about cap using these kinds of ammonium nitrate propellants. in the states there could be as many as a hundred 20 million insulators being used to that contain this ammonium nitrate appellant. u.s. regulars could be recalling as many as 90 million cars. rishaad: let's look at what is been going on in indonesia. the president has been saying he lowerfident about lowing
borrowing costs from the chinese investment bank structure. having him reaching 7% growth target. access to the president. he joined him as he flew from jakarta for a tour of sumatra. >> they never imagined they would have a chance to see the president in person. ♪ what mayhem. everybody is trying to shake his hand. nothing has changed. ♪ how many hands you think you should today? ♪ someone handed you a letter.
rishaad: after a promising start the global equity rally has stumbled today. japan and china and south korea all trending lower as convictions rain from the market. japanese shares down by a rising tide and oil. arising in sydney after the first loss of five $.7 billion and underlying profits were down 92% compared to one year ago. the world's largest mining
company will cut its dividend payout for the first time in 15 years. now $.16 per share it was $.62 per share. notable as posted a net loss for the fourth quarter and also for the full year. singapore listed commodity traders and ordinary rough 2015. the prices plunged culminating in its debt rating being cut to junk. it remains low for an extended. a bit of relief for investors over in turkey. look ats having a monetary policy. seeing we're the markets lose some steam in the last two minutes. as we head into the lunch break. we are seeing this is mostly because of the yen which is up slightly today which is offsetting the oil rally that we have seen.
down 7/10omposite now of 1%. we are extending some losses that we've seen. hang seng is also down. 200 is off. one third of 1%. seeing a bit of a bump today. other factors are at work there. waiting on the index. a pretty mixed picture today in the markets. some of the movers here. we are seeing the research source related stocks in japan leading the gains on the index all day today. an oil refinery is up 1.8%. yvonne steele is up 4.7%. nippon steel is up 4.7% this could actually be a red flag for japan's steel makers.
that may trigger a surge in defaults and risk in some of those mining companies. is up 3.36%. goldman sachs actually raising it to a buy now. saying that the lender of overseas earnings and funding costs as well as the dividend the sharess attractive. so we are seeing shares at 300 and ¥69 per share. we are seeing banks and industrial stocks with heavy machinery. komatsu also rising today. in japan. casino stocks today all rising. but how is close to 2%. after the secretary of economy and finance lionel young said a government statement the 2016 gaming revenue is going to be about $200 billion. 13% drop from 2015. .bout 25% he says that is reasonable. stocks up today.
rishaad: out more on bhp billiton. slashing its dividend and rearranging the deck chairs to maintain its targeted credit rating. what are people saying about this? will it be enough? david: the world's biggest mining company was outlining a whole raft of changes this morning. it is quite dramatic cut beyond what was anticipated by the markets. they've been calling for a 50% cut. investors perhaps are starting to reward the company for making those cuts. basically investors have been saying this morning that the companies out there taking action rather than taking incremental steps may be now or maybe in six months time.
they are getting out ahead of that commodity price route and taking the action that is needed to protect its balance sheet. investors to some extent of being placated. the big question is what will the credit rating agencies do with this? bhp had one notch downgrade from standard & poor's earlier this month. at that time s&p said it would look at the data again and look at today's action before deciding whether it needs to make another one notch downgrade so that is the big question that remains. is this enough to protect that credit rating? rishaad: the move music is not great. bhp saying that the commodity prices will be low longer than it did before. the people on the call didn't exactly give any hints of when they see a rebound arriving. david: quite. it was a very bleak outlook. described by one investor this without any cloud silver lining.
not quite how bhp hoped to see it. they think the prices of iron or its top earner and also cold will be remaining week on faltering demand rather than oversupply. there are some bright spots though. they see domestic gasoline in the u.s. falling by oil to revise. the oil markets back into balance next year. they think copper is likely to revise with their market deficit there. towards the end of this decade. that will spur prices. so the story going forward for bhp is that they are positioning themselves to capture those gains in oil and copper. rishaad: thank you very much david. is taking more than a billion dollars in impairment charges. reporting a loss for the fourth quarter and the full year. asia's biggest ramadi trader being hit by the plot prolonged commodities route. looking into how bad things really are here.
haslinda: it had positive cash flow in the second half. plus slumping coal prices that is one of its major commodity products. the company says it has adopted a conservative price of 55 tons and dollars. that will cover a possible priceso of global falling for longer. it has been pretty cautious. as you know noble has a 30% stake with coal prices dropping for five straight years. that is not helping noble which is already reeling from the commodities route. oath moody's and standard & poor's poor have cut its debt rating to junk. its shares have tumbled 65% along with its bonds.
trying to fight off attacks from short-sellers. accounting irregularities claimed by an group called iceberg media. rishaad: price is having a pretty rough time of it. they have questions the company's very survival. what are the prospects? linda: it all depends on you speak to. some people said it was the bargain of the decade. with a 31% upside for the shares. noble is trading at a quarter of its average price right now. we have been covering it on bloomberg and no one is recommending a cell anymore. as you may know noble chairman and founder richard aleman has been buying back in noble shares. he did that nine times in the past year.
he's now the biggest shareholder in the company. rishaad: of the other some stories. honda is preparing to recall it specific compact. it is in the united states. all about engine problems. months after the model was first put on the market. declining sales for some version of the car. the recall won't start until gets approval from american authorities. replacement parts are not expected to be available until mid-march. the share prices under pressure. zuckerberg has probably the back to apple and its privacy battle with u.s. authorities. in a speech at barcelona. they support tim cook's refusal to unlock a terrorist iphone. apple is maintaining that it would have implications for the future but the u.s. government said it is a one-off request.
mark zuckerberg: we are sympathetic with apple on this. we believe in encryption. we think that is an important tool. honestly people are going to find a way to get anything. is not the right thing to try to block that from the mainstream products. rishaad: it is not the news that oil bowles wanted to hear. the iaea says the global oil level is around longer than previously estimated. the oil glut will be persisting into 2017. the iaea says the u.s. will remain the biggest source of new supplies for the next five years. rice's are unlikely to drop anytime soon. it says the block may be forced into action. >> this idea of a phrase. i think it a good start.
on because we have many reasons to believe that the consensus may be othersg with opec and that even if there is no consensus between these two i think opec may be ready to do something this year. because the market you know is going toward a stabilization by this year. rishaad: indicators of china's economy are out and it shows the slowdown has not bottomed out. the case for staying you continued stimulus as the g-20 is meeting later this week. what does the data show?
enda is disappointing. towe know they're trying transition the economy away from relying on debt investments. the point is they don't want to kill the manufacturing either. it is still a huge growth driver in the chinese economy. yes it is twice sluggish right now. it is all about china. japan and in the euro zone unite states are buying fewer chinese shipments than they used to in the past. the bigger picture remains these gauges are pointing to a slowdown. there's obviously a skewed impact on the way china looks at the data to get to the end of the year. all told the picture is still a soft economy and that means pressure on governments to do more. most likely more spending and
doing more easy credit. the meetingf course coming up in march. that will be important for the five-year plan for the economy. it will be a signal that whether the chinese authorities really want to recommend driving forward and balance not merely the old way. trying to promote a new economy. adding to similar materials at the same time. rishaad: this g-20 meeting is coming up. it taking place in shanghai. everyone will be looking for more clues as to what is going on. it is fascinating timing for china to be hosting the g-20 right when the chinese economy is right at the center of the global markets. are they going with the exchange rates? what exactly is their policy there? allowing people to say what is the direction here. what is the overall game plan
for your economy? how are you going to change over time? china for their side is probably going to say hang on a second is not all about this. theant to talk about federal reserve hiking interest rates. putting emerging markets under pressure. it will go back and forth. watch what comes out in a communique. rishaad: qantas reporting a surgeon profits. due in part to cheaper oil. here from the chief executive alan joyce coming up next. ♪
cameron dismissed the suggestion that a vote to leave the block britain.tter deal for david cameron: i believe that britain will be stronger safer and better off by remaining in a reformed european union. stronger because we can play a leading role in one of the world's largest organizations from within helping to make the big decisions on trade and security that determine our future. safer because we can work with our european partners to fight for cross-border crime and terrorism. and better off because british business will have access to the free trade single market green jobs and investment and lower prices. 80% of fiji remains without electricity after a cyclone came through. it has yet to reach some of the outlying islands. the national broadcaster says 29 people are known to of died in the category five storm. one of the most powerful reported in the southern hemisphere. fiji relies heavily on tourism
and flights in and out of the main airport have now resumed. however schools will stay closed all week. the european union is reviving an investigation into google's advertising practices. investigators say they have been quizzing the company involved in online advertising trying to isolate the area and expecting that google breaches antitrust rules. sources say google has a $1 billion payment to apple to keep its search bar on the iphone is one of the exclusivity agreements regulators are looking at. over 2400 journalists. this is bloomberg news. rishaad: shares way down in sydney. the airline posting a record first-half profit underlying to 660 $6fit doubled million. the sydney-based carrier also announcing a share buyback worth more than half of billion
dollars australian. we asked the ceo the reason behind that decision. allen: because the cumulative tax losses we have had over the past two years, we don't have huge amounts of frank's credits to use the dividend which is very important for the australian shareholders. so after having a look at the best way of returning the surplus cash that we have to shareholders, we and the board felt that the buyback was the most efficient way to do that. until the fracking credits built up again in the future. and it could be the more appropriate way to give it at that stage. but today given where we stand the cumulative tax losses and given where we are going the most efficient way was to do a buyback. into the turnaround plan has qantas reached? extremely happy for our people and our customers and our shareholders.
the faith that they had in the organization and its strategy through the tough times has been unrelenting and has been fantastic. for them they see the rewards out of this. the shareholders now getting another 500 million in cash through the buyback. and the return to them on top of the $500 million we gave in august. and for employees to see growth with us recruiting more than one hundred 70 pilots over the next few years. seeing the positive nature of the business. and our customers seeing new lounges and free wi-fi on the aircraft and improving our customer service. i'm very happy for all of these stakeholders. i think that is the important thing out of these results. we can continue to invest for all of the stakeholders in qantas and all the stakeholders are going to do well with these great results. the markets have dubbed do an investor darling. the industry likely as well. have you been approached and will you be staying at qantas?
qantas. really enjoy i think it is an amazing airline and an amazing brand. i have a lot more to do. i want to achieve a lot more here in this organization. as always i am enjoying it and the shareholders and the board wanted to do the job i will continue. i reach 50 this year. i have a few years left with me. i will be going anywhere anytime soon. i want to be going anywhere anytime soon. ♪
rishaad: four therty over tycoon behind india's liquidateng beer? assets let's head over to mumbai itself. what is mr. valid saying about it all? >> he still remains defiant. days after one of india's largest public sector banks declared him a willful defaulter. he has continued to reappear. sing the national bank and the other banks and he will do what
he has to do in comments made to journalists. in fact he is known for his very yant lifestyle. throwing lavish parties. have been declared willful defaulters by lenders. everybody has its own perception about what is happening in with his lifestyle. and he would not comment on it. he maintains his future actions will achieve the banks and the third public sector bank to declare that the defunct kingfisher airline is a guarantor of united brewery. a willful default or. he has had no comment to make when asked about these findings. they recently said that the lavish parties being thrown by loan defaulters are going to be a thing of the past. for repayingrame those loans. reaching a settlement. he said don't bother about my business comments. just to put this into perspective, on april 2015 the aftery controlled by him
internal probe as well as forensic inquiries it was revealed a legend fund diversion to kingfisher airlines as well as other ub companies. said march india has 27 as the deadline for banks to clean up the balance sheet. forcing them to promptly disclose nonperforming assets. take the necessary measures. they can adequately revisions in the financial statements. the gross nonperforming assets of the entire banking sector is needed to be over five to 6% of total loans. thessed assets including clare as well as potential bad loans. analysis.11% in the the latest quarterly results showing that the cumulative growth of the nonperforming assets of 24 listed public sector banks including the market leaders from the bank of 1.5 times the total market value. all of these listed public sector banks have dropped their
nonperforming assets in excess of the characterization there so i don't need to stress just how bad the situation is. as the entire banking sector goes. some issues have been taken to reduce that. clearly there is a lot that needs to be done including rating in such willful defaulters. rishaad: thank you very much. we are keeping the indian team going. not for the right reasons. in thethe first time 21st century india has overtaken china with air pollution levels. according to greenpeace, they have been analyzing a lot of satellite data and other metrics here. that the found is average particulate matter exposure is far higher for indians then people in china. that was the case in 2015. will he stick of china as the most polluted country on earth. india if you look at some of these data in new delhi and
other cities and make you realize why india may be in fact more polluted. look at what people are saying the twitter sphere. a lot of ordinary indians want to do something about this. it is very concerning. half of the world's air pollution deaths occur in china and india. that was written on twitter. back across new delhi to the airport they quickly traveled to the city with eyes burning from the small. that really describes new delhi. rishaad: that is it for trending business. ♪
>> from our studios in new york city, this is "charlie rose." charlie: privacy, technology, and national security collided this week when a federal judge in cra ordered apple to create software that would disable security features on an iphone used by the san bernardino shooters that would allow the fbi to access the encrypted data which they believed might include helpful information in the fight against terrorism. the fbi says there is no other way to get the information from the phone. apple says it does not have a way to do that and creating one would pose a security risk to