tv Trending Business Bloomberg March 14, 2016 9:00pm-10:01pm EDT
♪ rishaad: it's tuesday, this is "with all due respect". ♪ rishaad: live in singapore. here's only are watching. not content with strategic hotels and resorts, a bid for starwood. offer could be an earlier deal with marriott. starwood is $67 a share. company value to talk when i'm billion dollars. sony is another big buyer. taking over mile jackson stake enjoy music business.
chief executive says entertainment is key driver in sony's future growth. here's our top stories. trading day getting underway in hong kong and china and about 30 minutes. lumpur,e, taipei, kuala entering the fray. here's what's happening so far. decision day. going into meeting later on this week, not expecting big moves from the governor. we know he is capable. still some uncertainty when it comes to sentiment in market. some pressure in terms of expectations. boj cutting outlook when it comes to japanese exports. economy -- outside chance that we could get
a move from bank of japan. the nikkei has been swinging all morning. pretty light volumes in consideration of where we have been. australia giving back all of the gains from monday session. down half a percent. new zealand stocks going strong. 12 straight day of gains. in terms of markets, a little bit of weakness from malaysia down 2/10 of a percent. having said that, singapore stock coming online a little bit stronger. some of the movers today. oil. decline oil overnight despite recover we saw subsequently. services provider, beach energy, some oil names down under doing poorly today. over in japan, south korea, seeing downturns for oil energy stocks. japan petroleum, leading loser
down by 2%. hyundai motors and here trading. reports that these two automakers will be looking to enter iranian car market. rishaad: battle has broken out over starwood hotels traded -- starwood hotels. the bid could potentially derail marriott efforts to create biggest hotel operator. we have details on this. said to have offered $76 cash per share for the starwood hotel group. and the unsolicited bid. that buys the hotel group at $12.9 billion. based on estimate of 170 million shares. marriott has said that it will continue with its own bid for the hotel group, which owns brands such as weston, w, and regis. shares rallied, the most since late october in new york.
analysts a that it is a surprising development considering they thought the marriott it was a done deal. question for the board now is will they take the $76 cash right now or the option for marriott which of course has the potential to see its return grow in the future in the form of its own share price? this is not the first time that they have done this. $6.59 foreed to pay 16 u.s. luxury resorts and hotels. from blackstone group, it is one of the most visible of the chinese companies embarking on a property spending spree. chinese companies really sticking high-yield at a time that their economy is slowing. you can see from the chart on bloomberg, so far, in 2016, almost $15 billion worth of property deals, almost half of what we saw over the entire course of last year. the man behind the acquisitions, ceo and chairman, is being called the warren buffett of beijing.
it supposedly using the berkshire hathaway chairman model, using insurance incomes to fund wider deals. if they strike a deal for starwood hotels, it would mark one of the largest acquisitions in the u.s. by a chinese company. worth noting, starwood would have to pay a $400 million termination fee if it walks away from this marriott deal. rishaad: thank you. more detail on that in the course the show. we want you to tweet us your thoughts. include #trending business. brookfield asset management and chief holdings have a great to buy austrian raylan port operator for just under $7 billion. more from sydney now. we talked to paul allen. this is a long-running saga. is it finally coming to an end? paul: it's been dragging on for seven months now. you,tics company, asterisk and brookfield asset management making increasing bids for
relevant port operator. much to the delight of the shareholders. however, back in february, brookfield and cuba agreed to make a joint bid for as now know, and here it is. unveiled today, worth $6.8 billion. values at $9.28 per share. 4% premium over monday's close. sciano forrun a business as joint venture. waiting for deal to be completed. it should wrap up in june. bringing an end to what has been a rather long-running saga. rishaad: thank you. let's have a look at some other stories. ambitions and indie growth and entertainment. sony, they have reached a $750 million deal with michael jackson's estate to buy out his stake in their joint music business. sonny must make a lump sum payment of $733 million for the
late pop singer's 50% stake in sony music publishing. as well as future distributions. the two sides up and talks in september when sony exercise its rights under their joint venture to buy out michael jackson's estate according to a statement. the us they continue to have interest in the music industry, including all the master recordings, and the publishing fee that owns the songs that he wrote. michael jackson died in 2009 at the age of 50. astra central bank says that week wage growth could mean further rate cuts. in the march 1 meeting, rba says that hassle demand continues to be said or did by low interest rates and above average employment growth, but low-wage growth was consistent with there being some capacity in the labor market. central bank meeting held before data showed that economy grew 3% in fourth quarter from year ago. strong growth. focus of meeting with china. and how wage growth and wobbles
in economy could impact australia. avon, cosmetics, plan to cut about 2500 jobs and move headquarters to u.k.. alsot-cutting measure, and planning to streamline international operations. avon currently based in new york, and company says the shakeup will cost about $60 million in the first quarter from severance and other costs. cut toon expects to generate savings as much as 70 lane dollars by 2017. the move follows the separation of the north american business at the beginning of this month. after the split, north american division became a privately held entity. avon has been left with focus overseas where door-to-door cosmetics sales are more popular they say. cosmetics company already has a significant commercial operation in the u.k. rishaad: looking at how foreign companies are on the edge ahead of china state television annual consumer protection kralev.
♪ looking at regional shares, asian shares living for the first time in four days. i had a policy decisions from bank of japan. joining us is hans goetti,, chief strategist for asia and middle east at bank of international, at luxembourg. thank you for joining us. -- noing is, does boj change expected for negative interest rate policy at the moment. your contention is that when they went that direction it was
an act of desperation, perhaps. hans: they can call it like this, the idea was to weaken the currency, like what everybody else wants to do, japan wanted to do also. they got a different effect. the young went up instead of down. this is becoming increasing evidence that negative interest rates are actually stoking fears of deflation which is again, the exact opposite of what central banks want. they have to reading the somethingand think different will be tried in coming months, which is something like -- for the people or helicopter money, some kind of combination between fiscal and monetary policy worldwide. rishaad: they're probably just end up under people's mattresses, when it, helicopter money? hans: that remains to be seen, it is probably something that has been tried in the past, basically old-fashioned politics which did not work either in the
long run. they could have some deviation. tax holiday for everybody. get money in people's pockets to spend. then, they could allocate the resources, the possibility is that they would save the money instead of spending. they're always unintended consequences and you come up with policies like these. very unconventional, but that is not mean it is going to work, and it does not mean that it is not going to be tried. you can't really make this monetary policy work unless you have some fiscal restructuring, fiscal policies to shore things that, is that not right you --? hans: this is something they're going to try. there is room for fiscal expansion. for instance, in the u.s., deficits relative to gdp are relatively low. that is in the that could be done. ecb,as you have seen, and
problems go deeper into negative interest rate territory before trying something new, and again, this is unintended consequences that central banks did not expect. i want to stay with japan because it seems as though at the moment they are determined to be putting up a sales tax next year, once again, and we saw the consequences of him doing that last time. without a fundamental air in your view, or do you think that the japanese economy can take it? it was counter to the idea of qe4 the people, leaving that they will postpone the tax hike next year, it will not make sense whatsoever and what their joint to do. because, after all, their 20 get the economy going, they are trying to create inflation and trendy get people spending. our network. we are still really from the effects of the first sales tax hike. we think there's a good chance that they will postpone it. rishaad: let's move to china and have a look at what is going on. may people have identified this dilemma. let's talk about that.
where do you think this country is right now? what are the difficult choices that it is facing? hans: it has to do with the exchange rate. capital flows, domestic interest rates, and it is very hard to balance these three. there are still capital outflows, although, the good news was in february that capital outflows have slowed quite considerably compared to the previous month. ratee moment, the exchange remains stable, but it's not mean that china does not -- we do not see that devaluation that would be a policy mistake, so they will do is probably adjust the exchange rate down more gradually. theagain, we have seen stimulus, fiscal, and monetary stimulus coming in, citing that will give relief at least the financial markets in the near ofm, so china is maybe less a -- to market, at least in the
near term, then it was just a month ago. rishaad: we are talking about the old prescription of investment spending to keep the economy going. what we really were looking for a some serious reform taking place when it comes to some of these enterprises, which we keep talking about. hans: yes, of course, if you merge big state owned enterprises you get even bigger entities, that is good and bad. on one hand, it still shows the dependence are the believe in central planning. probably more of a negative, but at the same time, if you merge state-owned enterprise, you can get rid of some of inefficiencies, goes both ways, really. , not saying reforms that they are on hold, but they take a step back. if given the choice between growth and reforms, the government will always opt for reforms your than can social stability is very high on the agenda. rishaad: all of this
uncertainty, perhaps, according to some, is exaggerated when it comes to where we are with these equity markets. that represents, if you believe in that, value, is that we are seeing? hans: what we are seeing in asia is valuations to about 2009 levels, and that could be a buying opportunity, for that to happen, i think we will have to see a weaker dollar. the dollar seems to have sort of talked out. again, policy divergences between the fed -- it seems that the market is not convinced that the fed can go on with policy normalization while at the same time, every other central bank is driving interest rates and two more and more negative territory, so something's got to give. and the market is probably expected the fed to sort of back off in the next few months. we'll will definitely not see a rate cut in march, maybe there's a possibility for one engine, but after that, with the election coming in november,
there's a good chance that if there is no rate hikes, there will be no rate hike at all this year, we may see the dollar weakened a little bit, and that of course, would benefit asian markets and anything that is commodity related. rishaad: great talking to you. hans goetti, from bil. it is 9:18 a.m. in singapore, 18 in jakarta, i have the stories making headlines around the world. china is bringing its annual policy meeting to a close, winding on the leadership's top advice body. chairman calls and delegates to make a contribution to the government's target of establishing what was described as an overall well-off society by 2020. this year, the first of china's 13 five-year plan, growth has steadily declined, as the economy transitions away from trade and investments to a more consumer-based model. myanmar is expected to announce
its new president today with a longtime ally, the favorite. giving up a career as a foreign ministry years ago, to help campaign for democracy and myanmar. he and two other lawmakers have been nominated for the role in parliament on make the final decision. --,new leader will not be she is constitutionally barred, but she is said that she will be above the process in talks. the latest mission to mars is underway with an unmanned eu russian rocket blasting off from kazakhstan. it will reach the red planet in october, and will study methane and other gases in the atmosphere. they say it is graded by ideological -- activity and break them relatively quickly once it reaches the atmosphere. marsact that exist on indicates biological process. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news.
♪ rishaad: asia's hedge fund industry exhibiting a growing divide between the house and has not. several forced to close leaving more established names in position to find more top talent. asian editor. look at positions are there? >> we have a growing breed of new hedge fund startups. many of them have cut their teeth at established firms like .72, and they are in a position now to raise their own capital
with an established backing from a larger firm looking to put money with new hedge fund promising hedge fund firms and these the firm's that are in the best position to build a hiring out. some of the smaller hedge funds in the business shutting down, so there is a lot of talent. banks are not hiring at the same pace that they used to, sever for hedge funds, that are looking for talent, they have their pick right now. rishaad: are they really talented, that is the point. hedge funds are closing down. that's another matter altogether. it is counterintuitive in, when summoner shutting down that these guys want to hire and expand. >> when hedge funds closedown it is a very extensive business to run these days. you have rising regulatory costs, and it is very difficult to produce consistent returns. in a situation like that, many hedge fund firms make the decision to close down because the returns not justify staying in existence.
while the portfolio managers and analysts that they have may not have been necessarily able to prove themselves in this firm, they still haven't a promise to be able to join other firms, clearly, and we are seeing a lot of that driving the hiring spree that we are seeing. rishaad: florida has as we set an introduction where the have-nots go -- >> the hazard is that for instance, zappa, that we've written about in our story today, they have money from a group called hs group, they have an anchor investor. they hired nine people earlier this year in february. clearly, they look like they are an up-and-coming force and hedge fund business. oxbow, allrms like of them have been hiring and they are all fairly new to the business. 72 was hired a lot
of people in asia. we are seeing some of the firms are positioning themselves former growth. rishaad: thank you very much. let's have a look at what is going on with mr. is making headlines right now. bill gross is going to get his day in court, and a wrongful terminations against pimco. the california state judge ruled that he has met the minimum requirements to proceed, he claims that he is owed hundreds of mine to dollars at being forced out of the firm that he cofounded some 45 years ago. pimco argued that bill gross phil to show yet any agreement with the firm guaranteeing his employment. rise,s are getting a pay lifting the base salary of iran more than three and a half thousand employees by an average of 2%. increase works out at $53 a month, and it takes effect from april, company says that it is aimed at younger staff in part of the prime minister's drive to create greater spending.
concern of house prices in top-tier settings are rising too fast. raises pressure on the markets, bankers said to have asked china's biggest commercial and is to play closer attention to mortgage approvals at a meeting. chinese authorities are considering new rules banning homebuyers from taking out loans to cover down payment. before the debris, a look at pictures. i manned aircraft taken another step forward with the first world drone. -- took first place in the event held in dubai. the drone pilot used virtual reality headsets to raise through city, futures >> guideline, looking to pull up a cool quarter of the main dollars for coming him first. helde sports events to be next year. ♪
90% see further action by midyear. sentiment among consumers and businesses has slumped. despite a run saying it'll raise out put to increase central levels before considering talks to freeze production, tehran aims to increase production from one million to 4 million barrels a day. it is the market open in hong kong. it is business again in shanghai. let's get it over to heidi. rallyt monday recovery short-lived for pretty much the entire asia region. take a look at shanghai. down three tens of 1% after those strong gains we saw yesterday.
weaker by about three tens of 1%. that is having some impact as well. is doj decision day. ahead of that, the stocks have been swimming for much of the morning. we are not seeing a lot of conviction. -- we spoke about that bounceback and oil. that's not really helping. thee still seeing some client went comes to the energy space. let's check in on some of the currencies. offshore u.n. sing a bit of downside. we are also watching the aussie.
a little weaker after we had the they will beesting further easing particularly if wage growth continues to be lackluster. it has been really resilient over the past few months. yesterday, we saw the highest .evels we are seeing that recovery and oil in the asia session. new york oil trading at $37. over 3% in the overnight session. that is why we are seeing a significant down side when it base in the energy asia session. take a look at the gainers we saw yesterday. producerrgy, the oil down. for fortisng upsides
q metals. japan petroleum one of the energy losers. kia sing a downside. they are looking to enter the arabian car market in the second half. >> let's get back to the surprise offer from starboard hotels. jonathan browning is here with the latest on this. >> it is a really extraordinary story. there have been chinese interest earlier in the process but marriott had agreed a deal with
starwood. are think both parties shocked. >> they are. it was interesting that it was marriott that outed. said theyried that have come in and topped us. we are still committed to a deal let this play out a bit. >> two deals in two days. pursuing hotels? >> i think the trophy asset. the big deal was the acquisition in new york. one of the most stages hotels in new york where the president used to stay. in a sense, they are easier deals to do than corporate asset acquisitions.
case, we are seeing lots of insurance money piling into real estate. they get the big names with it too. >> how does this fit into the merger and acquisition story we have seen in china? >> we have been talking about it and as far as chinese outbound deals go, we are already almost at last year's total. almost a record itself. the chinese acquirers have been stepping up in diverse ways in technology, agricultural chemicals. some of the more traditional plays like hotels. >> thank you very much. we are going to check on the other stories. volkswagen facing its biggest lawsuit in germany over this a emissions scandal, sued for $3.7 billion. it's a class action lawsuit.
they claim vw fail to publish information about the scandal in a timely manner. it comes six-month after volkswagen admitted to cheating environmental tests. moody's has cut australian iron with a negative outlook. moody's now raising it to levels below investment grade but acknowledges the efforts to cut cost and reduce debt. cyber security experts say bangladesh much take the blame for the theft of $100 million of its account of the new york fed. the government has pointed the finger at the fed but denied the systems would compromise.
david tweed has been on this from the get-go. is really to blame. >> the hackers are the one to blame. centralpened with the bank, the finance minister turned and looked at the fed and have been too many irregularities about what the fed will do and we will have a legal fight to get the $100 million or so still missing. said we got these instructions from the bangladesh central bank. we follow the protocols and we did what we needed to do. the thing we need to do is one of the thanks and what the transactions noticed a spelling error. stopped moreat money coming out. the people i've been speaking to
around asia are like saying if the bangladesh central-bank had the right protocols in place, it probably would have been able to notice there was suspicious activity going on. >> is there risk then of a similar attack? >> absolutely. have similarou copycat attacks and the geographical risk really is in bangladesh. the bangladesh central-bank is a regulator and if it has been attacked, those banks that regulate will not be that protected either.
you see there are countries like japan, south korea, singapore that have been very careful about their cyber awareness, putting in legislation and acting on legislation. a lot of them need to step up their game. >> thank you. coming up, two great expectations. it's unrealistic to think oil producers will voluntarily cut out. when we come back. ♪
vladimir putin says his objective has been achieved. russia's intervention well september slung the war in favor of troops loyal to bush are à la sad. -- bashar al-assad. the war is not entering its six the year. it has killed a quarter of a million people and displaced more. eight people killed by the fire extinguishing chemicals at the headquarters of one of thailand's guess banks -- biggest banks. a basementased in room of five commercial banks in bangkok. the banks of blamed contractors for negligence and say operations have returned to normal. aching dynasty used by china's longest reigning emperor. his 61 year reign ended in 1742.
the price, 6.5 million u.s. dollars. this is a bloomberg news. the speculation leading opec members are meeting but iran may join them. let's see what that means for the market. great to see you. will him make any difference if you just freeze output at these levels? >> of the announcement sounds a very encouraging. it's like when you tell me once upon a time i will die in 50, 60 years maybe. for the oil market, that's
irrelevant. it will take another year or two because -- before ron reaches those levels so everyone is reaching the same talk. everyone wants to support the sentiment in the markets. >> was a need is a cut, do they not? -- what they need is a cut, do they not? i think you wouldn't want to cut if you want to achieve the objective of the strategy employed right now. if the target is to move the most expensive producers out of the market in order to regain balance, it is not a very helpful to allow prices to shoot up too much. from that point of view, there is no need to cut right now. i don't see that anyone will cut. about if they keep these
?roduction levels at the moment you are suggesting what we do is see $50 oil perhaps in the next three to four months. oilhat happens right now is prices are low whether they are $30 or $40. that is not so relevant. many players would be low-cost. any months time approximately, balances in the crude oil market are improving. will see more demand for crude oil at the same time with a decline in production in the states. we will see some differences in the crude oil balances with the crude oil available. that changes the balances by about 3 million barrels. that from the second half of april, may onwards.
$50 and the next four months is feasible. >> how far is the oil price being dictated to by this speculator and how much is reflective of the global environment? we have seen in the last couple weeks, you also may say processes have mood higher because of the talk between opec and non-opec. short-term market could trend a little sideways and it could see some correction is speculators say we have done too much too quickly. if we look on the balance system, the market should move a higher. this escalator can be very helpful. everyone wants to see the trend developing. they may quickly jump on that
and push process higher. and pressure from the bank that will make them sell and hedge their production forward and that may lead to more pressure on the forward curve. few people are talking about $20 oil at the window very quickly? >> they can quickly happen again. you could see the neutral zone come back, you could see more yemen oil. you could see faster oil from iran. the market has everything in the cards at least for the next couple weeks. thereafter, things will be a more -- a bit more bullish. >> thank you. we have got to take a break but we will be looking at an online pushing japan's
>> this is trending business coming to you live from hong kong. sri lanka central bank governors has his country is sending clear signals to investors and admitted that in the past, that wasn't always the case. i admitted there was trapped a lot of clarity in terms of a policy at the early stages of the governments. a glut of to and fro in terms of aligning economic policy in particular. that has come about after about
a year. the two parties are now i think agreed on the way forward, how to raise revenue, see that the government creates a space for private sector. these are key issues, which clouded the most of last year. and thehave the clarity international monetary fund is sitting down with us. hopefully, their approval will convince the global markets we are serious about going forward. >> we talk about the deficit, the ballooning government debt. what are you doing to address that? , we alreadyward have producers. it is entirely funded. going forward, most of the projects that will take place
will be equity-funded. we are talking to our major partners -- japan, china, korea's coming in with equity-funded projects. that will be the new way of going forward. i think they'll make a difference. the government will also step aside and let private operators around the infrastructure. >> what are you looking at? what are you hoping for? >> we're hopeful that a signal will be an agreement to the markets. going toies are really take this country to its next level. that is what we want to signal to the markets. bank in sri lanka governor. >> take week for central banks. today.k of japan most economists don't expect any changes this time.
>> we will take a look at what happened on the 29th of january. is the close on the 28th of january and this is the close on the 29th. , this vonn to yield a started to drop quite steeply and even though the policy did not kick into effect until fellary 16, the bond yield almost to zero. they have remained there ever since. at one point, it did drop to below the interest rate of -0.1%. i can show you the effect it has had on the bond yields. , this ise announcement
the yield curve. that has dropped quite clearly. that is the current yield curve and that effectively is what they have been looking for. they are trying to spur lending to get more money into circulation. going into negative rate has succeeded pushing down the yield curve. we will show you what effect this has had on bank operations in the sense it has become less profitable for banks. you can see this has fallen away quite a bit. not only are lending margins is hurting the operations and impacting the stock price. --i can show you the topics
what is happening there. you can see clearly out of the industries, the index is the worst performing. thank you. an anonymous and angry blogger appears to have spurred the japanese prime minister on childcare. this working mother has gone nuts. >> this is an anonymous blogger in japan saying she's a working mother and may have to quit her job because she couldn't find daycare. this was posted on the 15th of february titled "i couldn't get daycare, die japan." coursebly unusual language. it has a spurred a bit of a reaction from the prime minister because it has been shared 50,000 times. the prime minister has promised remedies. he said on monday that
applications for nursery schools have increased at a pace faster than we can provide spaces for to add detaild measures and legislation this spring to reduce waiting lists for daycare. >> it's very important, this subject. he's trying to get the women in the workforce and that's the deal. if they can't get childcare -- >> they can't get back into the workforce and this is exactly what this lady has said. also written "what am i supposed to do now?" some really course language coming through. the other problem is the daycare workers in japan are paid so little so there has been an online petition as well with 30,000 signatures to try to increase the wage for day care workers.
>> from our studios in new york city, this is "charlie rose." charlie: admiral mike rogers is here, he is the director of the national security agency and also leads the u.s. cyber command. last month, the agency announced it would consolidate its offensive and defensive operations. a colonel said last week that isis would accelerate attacks on networks. i am a pleased to have