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tv   Trending Business  Bloomberg  March 3, 2016 9:00pm-10:01pm EST

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an expansion plan. chinese leaders consider their next five-year plan, environment high on the agenda, along with growth and reform. let us know what you think about the top stories, follow me on twitter @rishaadtv. hashtab #trendingbusiness. were seeing modest moves ahead of the jobs data. waiting for the news coming out of those big events. we could finish the week on a cautious note as we wait for all that. global stocks have recouped the losses, more than half the losses, we saw this year. we have seen slightly better u.s. economic data and a little more optimism that china will do more to stimulate growth. shanghai down two thirds of 1%. up.hang seng
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these here,bout they were actually the ones that came to beat their peers when it came to shorting china. they continue to be bearish on china. vietnam, philippines, they say, a big opportunities. vietnam trades at the lowest level in three years. , rising 1/10 of 1%, but earnings projected at 22% over the next 12 months. they say they see a lot of more direct investment. as well as domestic come some show in -- domestic consumption, seeing some more growth there.
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philippines cpi rising 9/10 of 1%. the estimate was 1.3%. china earnings outlook, we see the prospect continues to be not as positive. morgan stanley did cut its forecast on the shanghai composite, average 3%, cutting it from 5%. the shanghai composite falling 20% in 2016. we have seen things stabilize when it comes to the oil markets. brent slightly down, but flat. 37.0 five now. in terms of the last eight weeks, we are near the eight week high. that is certainly good news. coming out and saying this rally is unjustified and we could reach back to the $30 range. crude and seems to be discounting bearish news these days, and data, including
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rapidly rising inventory levels. note someend on one movers we are watching, sharp. we could be nearing this rescue deal as early as march 9. sharp on a tear, close to 11% up. rishaad: shares at a four-month 4.6%, a $1.8 billion takeover. let's find out more. samsonite coming back online after being halted by itors of this transaction would be the biggest acquisition since it went public five years ago. that's a big premium from toomey's closing price two weeks ago of $20. its lastch so against
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closing price of $26.26 after a 30% jump in we have speculation that this takeover could take place. tuminite ceo explains why was a good fit. take a listen. it perfect to the portfolio of our brands. it was the premium segment that was always week for us. tohave been always wanting expand our portfolio, because that completes the brand we have. he explained to me that they are strong in the u.s. and weaker in other markets around the world, which is where samsonite comes in, complement tree positions. has 2000 points of distribution and 75 countries. samsonite has completed eight
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acquisitions in 2012. the ceo has said that on both has eased off acquiring further brands that it remains on the lookout for opportunities if they have a compelling strategic fit. this latest merger needs to be approved by tumi stockholders. china's political leaders gathering under pressure to balance growth and reform and the next five-year plan. pollution and the environment and measures to restore and -- return stability to the yuan, also on the agenda. >> i'm glad that you can still see me on this truly delightful day in beijing. we had about three weeks of blue but the chronic smog
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problem has returned. this fits into the overall theme of supply side reforms cutting industrial capacity, a conflict between putting through these painful structural reforms at the expense of short-term growth , or as we are seeing policymakers leaning towards taking policy measures to support short-term economic growth, china's economy slowing the most in 25 years, so the window of opportunity for these reforms as quickly closing. they are expected to lay off million to six main soe's. across they are worried about the correlation between unemployment and rising social unrest. they have already announced
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measures to try to relocate these workers and find them new jobs to alleviate the impact of that, but really the issue is going to be whether they're going able -- to be able to put through these reforms. knife to oneke a on's flesh. china's debt continues to be a -- debt to, the jet gdp ratio has risen. analyst are saying this trajectory is unsustainable. easingad this massive cycle, six rate cuts, over the past year or so, and lending at record highs. balance, that tension is what analysts are looking out for. tofar, the policy message regret for reform or growth has been muddled so far. we will also be looking at messages when it comes to the
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chinese currency. we have had policy makers talking down further yuan depreciation expectations, so expect to see that and more references to that currency basket in terms of drawing away from expectations of the yuan referred against the u.s. dollar. those are probably the top rings on the agenda as the biggest political event in beijing for the year gets underway. back to you for now. right, as you would expect, more on that through the show. we do want to hear from you. tweet us your thoughts at @rishaadtv, include #trendingbusiness. richest man has clinched his biggest deal yet, creating the world's largest cinema chain. amc in theontrols united states, and now and a
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$1.1 billion cash deal, buying arrival to create a formidable player. america's second and fourth biggest chains. regal entertainment group closed .ut with 7360 screens taken together, they will operate well over 8000 theaters across the united states. support in its privacy battle with the united states government. twitter has thrown its support behind the tech giant's privacy fight. microsoft, google, other companies supporting them. yahoo! and samsung. will backd they apple's position in a court filing. this case dems from the fbi demand that apple unlock an iphone belonging to one of the
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san bernardino terrorist attackers. privacy groups contend that the government's position could undermine encryption protocols globally, and the critical role of protecting people against online censorship. goldman sachs is cutting more than 5% of traders and sales people in the fixed income division, according to people familiar with the matter. deeper than those underway and a companywide review of staffing. 43 workers will lose their jobs according to a filing with the new york state department of labor last month. goldman's decision to make deeper job cuts in fixed income comes amidst a revenue slump. lloyd blankfein told investors the bank hasat trimmed fixed income headcounts by 10% over the past four years. goldman has hired more than 3000 workers since the end of 2011. website we are looking at a breakthrough and
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cancer drugs, a big win for a japan pharmaceutical. have a look at that on bloomberg.com/asia. what's coming up? how china is becoming a rising force in world stocks. what about china's doomsayers and how to deal with some of those pessimistic views. ♪
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to china'st's get meeting this weekend, rising pressure on the leadership to balance growth and reform. great to see you. what will be the headline? will be headlines about supply-side reforms in stabilizing growth. issues,e a host of
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environmental issues, because beijing as having smog. rishaad: as we have been seeing this morning. orl these just be headlines will they actually have substance? a good is indeed question. we have heard about supply-side reform for a while, so everybody is looking for some specifics. the government has out find -- steel industrye cutting 10% of excess capacity, but how will they do it. what are some of the measures to make sure that this will actually go ahead? also, -- rishaad: the excess capacity is actually a big problem, isn't it? you can only address it if you make a lot of people unemployed. have unemployed people,
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they are unhappy, and the central government does not want to see people unhappy. >> the excess capacity industries such as steel are not solely labor intensive. they are facing today is less than in the 1990's. also, the central governments budget and fiscal situation is stronger than back then. what he can do is set aside some funding to help settle the unemployed workers, to help train them and find better jobs. that is probably more cost lyficient than continuous supplying to zombie companies. rishaad: they are swimming in an ocean of debt. >> that's right. we see credit growth in january very strong. we all understand that to
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stabilize the debt situation, you need to stabilize growth. that is why are relatively accommodative fiscal policy is good and necessary, but the other side of the equation is that we need to see restructuring of corporate and bad debt. one thing does not solve the problem. have this other issue, which is growth itself. we are likely to get a range of numbers, aren't we? that would tend to show a more mature approach. >> i agree. not --a point target is it is a bit too ambitious and to uncertain at this moment. the expectation right now is growth range.a for us, we think this is still ambitious. we think growth at 6% or 7% is
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better. rishaad: why not widen the range if you have a range? of doomsayerst over china. do you think that is warranted? are reasons tore be worried about china, as we talked about, slow progress, structural reform, and a lot of debt that continues to rise. supportthe facts do not this version on china. the earlytill in stages of development. pace for still s growing other industries, and fiscalernment has both and monetary. the banking sector may have more nonperforming loans than they are currently seeing as we deteriorate, but the important thing in the chinese banking system is that china has a high
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savings rate, and these are bank deposits, so they have liquidity. that is an important question we should not forget. rishaad: what about the yuan. >> the governor has spoken a .ouple of times recently he has outlined the strategy relatively clearly, so basically it is consistent with our expectations. the are trying to decouple yuan from the dollar, which is a good thing. there is no intention to deeply and sharply depreciate the currency. there is going to be a lot of discretion, but no major movements, and so to help that they need to continue to communicate. they will lose some reserves are rising orons
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the dollar strengthens. at the same time, they can tighten controls of the existing capital account controls to help prevent overshooting too much, the exchange rate. rishaad: what would this meeting markets, i suppose. will it engender confidence if it makes the right noises? do these markets not respond to these fundamentals? >> markets do react to headline news. mpcdline news coming from p will have to do with reform. in general, it will lose confidence. we have seen the market performing in the last few days. rishaad: thank you so much for joining us. team -- 10:19ne a a.m. in hong kong.
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north korea says it is stepping its nuclear arsenal following the imposition of new sanctions. jongtate agency says kim on has called for a nuclear warhead ready for use at any moment. he made the order while watching test firings. the united nations approved new sanctions after the recent weapons test and rocket launch. the piece of aircraft agree that washed up in mozambique is being taken in for assessment, thought to come from the tail section of a boeing 777, and there's some hope it might throw some history on the missing malaysia and air -- malaysian airlines flight. >> we will have boeing engineers look at it in conjunction with australian investigators.
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is role as the lead agency to continue to search the area in the southern ocean. assessed, properly and out of respect to the families involved, i would not want to feel undue speculation. says the former two memos about discrepancies. he was at a meeting that discuss the matter last summer. vw only admitted back in september. the company faces billions of dollars and fixes, compensation. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. coming up, exchanging insults.
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at ad trump hitting back former republican presidential nominee for calling him a phony and fraud. we will have details on that, next. ♪
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rishaad: growing tensions in the republican party over the rise of donald trump, a bitter exchange of insults. the billionaire being this -- denounced as a phony and fraud. donald trump said mitt romney is a failure who let republicans down. >> donald trump is a phony, a fraud. his promises are as worthless as a degree from trump university. americanying the public for suckers. his domestic policies would lead to recession. his foreign policies would make
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the world less safe. he has neither the temperament nor the judgment to be president, and his personal qualities would mean that america would cease to be a shining city on a hill. mitt is a failed candidate. he failed horribly. he failed that they. that was a raise, i have to say, folks, that should have been won. that is a race that absolutely should have been one. i don't know what happened to him. he disappeared. theaad: having a look at reactions on social media, which has gone berserk over this. dividing the republican party in ways we have not seen before, and the american electorate. anyone could guess how this all washes out. after romney delivered that speech in salt lake city, it angered donald trump. take a look at what donald trump said on twitter.
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then romney comes back and writes this. then donald trump us to get in the last word. he comes back and says, i'm the only one who can beat him larry. -- who can beat hillary. it smacks of the school playground, doesn't it? rishaad: that is the tweet there. >> he says he agrees with mitt romney's assessment. it's very rare to see the republican old guard out in such horse to dissuade another republican from getting the nomination. it is not over. rishaad: she has donald trump's
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back. thank you for that. china's leaders at a gathering to temper expectations over the currency. this is "trending business". ♪
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rishaad: a look at our top stories. ofres fall after a takeover tumi. samsonite has made a number of act was issued to double annual sales to $4.7 billion by 2020. tech giants rallying to support apple in its fight with the u.s. government. friend of thed a court brief to make it official.
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the fbi wants apple to write code to unlock a terrorist iphone. they say it is harmful to the consumer. tona under rising pressure balance growth and reform as they approve the latest five-year plan and set a growth target of 6.5%. investors are looking how beijing will reign in debt that has surged 247% of gdp. moving market wise, tokyo closing with positivity. things are looking much better in this last hour. it shanghai now seeing gains of two tens of 1% after opening the session in the red. nikkei 225 pretty much flat. we are seeing the australian stocks climbing for a fifth
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straight day, so is new zealand, 6/10 of 1%. we did get retail sales earlier and australia, slightly missed evidence, but we do see growth when it comes to spending. interest rates still at record lows, so australia spending a little bit more. aussie dollar fall on the news. down, cpi stocks figures disappointing, missing estimates. the straight times still seeing gains of 1.2%. i do want to mention that when it comes to u.s. jobs data as we count down to that, we has seen the dollar rally, losing steam late last year, but now there are calls that could resume the two-year rally.
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we are expecting a positive number, 190 5000 jobs added, and now we are hearing from deutsche bank saying that the rally is going to continue. the miseryying that index, a measure of unemployment and inflation, the best in nearly six decades, and the jobless forecast at an eight year low. deutsche bank forecasting the greenback will strengthen against the euro by the end of the year. 941.e now seeing 1.0 we continue to see stabilization. china property developers rising today. we did get comments coming out of this thing tank saying that china faces an urgent task to prevent home prices from steep decline after a surge in the tier one cities.
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home prices in banking -- beijing, shanghai, are just out of control, so we might see some headlines on the housing front and the outlook of their. -- there. , osaka titanium down 9%. they were expecting a profit of the same amount, so pressure on the stock today. oei has agreed to buy shares surging today. osg expanding the buyback to 5% of shares, ¥6 billion, up from
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2% on that buyback. shares up close to 4%. rishaad: thanks for that. china's richest man clenched his biggest deal yet. it creates the world's largest cinema change. the group already controls amc, now the $1.1 billion all cash yeal will allow them to bu carmichael. cinemas.e we have more people watching movies at home and on mobile devices, so why would anybody jump into this particular seemingly yesterday's business? amc is in a good position to expand. as you mention, this deal makes them the largest in the industry. scale help there,
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because what exhibitors are doing is increasing the size of morens, investing and luxury seating, making it a better experience to get people to come out, and they have actually while revenues have leveled off, actually started to rise a bit, so it's not a fast growth industry come but one that has leveled off, and amc is in a good position to take control. thesed: all right, all deals putting a strain on finances. he is announcing all sorts of things, making acquisitions as well. >> there have been a lot. it has been an amazing run. as you mentioned earlier this year in january, they paid more for legendaryn entertainment, the hollywood film production company that made godzilla and some other hits.
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that last month, they picked up a project outside paris where they will build a and retail complex, $3.3 billion there. they are spending a lot of money, and that will be putting pressure on their finances. it is hard to say how much. the company will be talking more about this deal later today in a conference call. rishaad: ok, so what sort of wanda targeting? is it can find entertainment? been the major focus, entertainment. sports is another big area. rights totaped up the do the ironman triathlon inside china. they said they are looking at lying the company that runs the tour de france bicycle race. they understand sports is an
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because these, are live events that can be promoted and bring in a lot of viewers and a lot of advertisers , sponsorship, but they're much broader than that. as i mentioned, the paris project is a mixed-use, retail, theme park. he said isthings they want to overtake disney. to head going head against disney, so it is quite a diversified company, and a doing a lot of deals. rishaad: thank you very much indeed for that. joining us from tokyo per breaking news. -- joining us from tokyo. breaking news. the australian securities and investments commission, this is a regulator there, started legal proceedings against the bank in federal court, saying these proceedings conducto unconscionable and market manipulation relation
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to anz. another words, interest rate manipulation, saying this happened between march 2010 and may 2012, according to the australian securities and investment commission. no doubt a story we will keep tabs on. a look at some other stories. king doubling its store numbers in japan by the end of 2017, aiming for a 50% jump in sales. expansion coming as mcdonald's cokes with widening losses after a series of food scandals, prompting it to close stores and add new items to the menu to attract new customers. indonesia looking to attract tech entrepreneurs. centers will be called the the cuspy boards, in
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of an online boom after economic volatility. it has been expecting his first two unicorns, billion dollars startups, sometime this year. mood is cutting bhp credit rating by two levels as the has the commodity route eating into profit. moody's has a negative outlook, but expects credit outlooks to remain weaker. shares on the way up, but it is a rising market. , andaustralia to china what is likely to happen in the next few days. be a big point of conversation as they meet for the people's national congress. expect? we are we going to get anything like policy? >> i don't think you will see a
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lot happening. , greatere of a general world, greater good, state of the union address, if you will. we are not expecting anything investorsbut what will be looking out for our general directions, so we expect theility, driving home point that china is looking for stability against a basket of currencies, rather than the dollar is self. what we are interested in is if he'd said something about the easing of capital controls. china happy for money to come income but not so happy to see money leave. that's what we are looking at. rishaad: officials stress that they're looking at the yuan, not from a dollar prison, but as it relates to a basket of currencies. what the devil does that mean? >> one must remember that this
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, the u.s. dollar 24%, so the u.s. dollar plays a significant part in the basket. they are trying to deflect attention from its moves against the u.s. dollar, saying it is not doing too badly as some of the other currencies and their basket. us up for aing little bit more of a decline, but don't panic. if it drops against the dollar, no reason to panic look at the basket. ,he basket is relatively stable at least for the past few weeks. we will see a little bit more of that. looking at what may npc this weekend as it pertains to the yuan.
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a series of mergers in the metals industry. joining us now is bloomberg metals and mining specialist. so-called some be zombiees -- so-called companies that are going to be a dress? >> steel and aluminum is oversupplied. targetse not achieved which ended last year, so the government introduced supply-side reform. these zombie companies could help, but it depends on whether the government can implement it. rishaad: will they be repeated again? will anything actually be done?
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>> the government initiated reform last september, and looking at the metal industry, one reform has been done. has acquiredcorp. china metallurgical group, announced last december, and we synergy, will offer a and its implementation could be an exact fit. reforms, it could help producers to go bigger and conversion rate. if we look at the top 10 , that is of steel something the government is tackling. with energy reform, it helps with china conducting those overseas m&a, because it helps management the appointed based
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on know-how rather than a government. if we look at some of those deals, some of them are high costs, so get help overseas. rishaad: right, coming up, china flashing the cash to attract some of the worlds top footballers. big spenders next on "trending business". ♪
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>> these are the stories making headlines around the world. the eu president has warned migrants not to travel to europe. tusk spoke, 32,000 migrants stranded after countries close borders. has called for sanctions on eu states that
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refused to take their share of refugees. oscar pistorius will be sentenced next month for murder after south africa's highest court denied him leave to appeal his conviction. prosecutors seeking a prison term of 15 years for the athlete who shot and killed his girlfriend three years ago. conviction for manslaughter was overturned in december. beijing's air pollution has reached hazardous levels as a nationalather for meeting. were atf the particles 340 this morning in tiananmen square. that
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41% lower this year compared with 2015. rishaad: friday marks the start of the chinese super league. they outspent europe's major clubs and recruited some international talent. here is a look at the numbers. ♪
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rishaad: the slowdown in the chinese economy has affected demand for premium brands. the opposite for football players. more on the shopping spree. >> it is no secret that the president cg paying is a japan -- the chinese president is a fan. expect the money to be readily available to support the objective. this is the insane amount of money that china spent. $1.2 billion china sports toia paid for the rights
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broadcast those games. that is 100 times the amount of 2015. if you look at commercial value, the league has some way to go to catch up. that brings me to my next point. how open is the league to international challenges. english premier league remains top there. some of these leaks have caps on the number of foreign players allowed. in no way is this: related to how good the team is. it shows the potential interest it can generate by having foreign talent. have a look at supply, and where better to look than the biggest soccer crazy country in the world. best, buthome to the also the most underpaid players. 80% of brazil's
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professional football players earn less than $250 per month. above therely country's minimum wage. in fact, only one player among 28,000 earns as much as the average world player gets outside brazil. you do understand why this chart actually looks like this. it is the number one exporter of football players, and even the biggest clubs have been struggling. they have been struggling to offer top dollar to keep talents inside the country. brazilians still go to europe, but increasingly more come to asia. japan is still a favorite destination. the chinese are smiling here to in with a wad of cash in their hands. three of the top 10 largest transfers were brazilian. 10 went to thep
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middle kingdom. coming up, the bulls are back and gold, but india's normally thriving market has gone strangely quiet. we will find out why. ♪
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rishaad: back with "trending
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business". south korea's second biggest shipping company writing down after losses and the plunge and cargo rates. it will reduce capital to $143 million. it is designed to improve the balance sheet after losses in five of the past seven years. hyundai merchant selling assets to reduce debt. shrinking 20% in 2015, although the rate of decline in the final quarter, revenue fell due to the slowdown of china and the chinese president crackdown. visits by mainland chinese to us rose, easing a 21-month slump in gaming. , in a bullwo gold
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market for the first time since 2013, despite bosses today. investors snapping up the precious metal as they see haven, pushing -- seeking , pushing gold to rise 20% from the december low. are big buyers of gold, hoping to get in on the bull market, waiting for the chance to buy physical gold, because the nation's jewelers are going on strike to protest a proposed tax. what is this all about then? the government announced additional duties on associationwelers in mumbai, the biggest jewelry market, called for an indefinite strike to oppose that the
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additional 1% tax. india is one of the largest consumers of gold jewelry in the world. they sparred over the extent and mode of taxation on gold, and the three-day strike coming to an end, not seeing the government under pressure. back to you. rishaad: thanks. have a great weekend. that is it for "trending business". and she will join me as we recap the big stories of the day on "asia edge" next. ♪
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>> this is "charlie rose." charlie: we begin with politics, donald trump and hillary clinton came close tore securing their party nomination. super tuesday. saw both candidates win victories in seven -- contenders look towards november. >> we know we got work to do. but that work is not to make america great again. america never stopped being great. we have to make america whole. we have to fill in.

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