tv With All Due Respect Bloomberg March 15, 2016 8:00pm-9:01pm EDT
let's go straight to the markets. a boost., we're seeing the aussie dollar seeing a bit of a bump as well. off of tokyo. a day after the doj kept policy unchanged. in korea, getting underway as well. get those south korea february jobless rate coming in at a six-year high. four .1% also higher than the estimates.
let's cross over to our bloomberg news government reporter. is there anything new here. >> apple saying the founding fathers of the united states would be appalled by the government overreach and doubling down, reiterating that this is an issue congress should decide. an issue of policy, not one for the court. yvonne: apple saying the government is imposing and a precedented and offensive burden on the company. >> apple says they have had the same security policies worldwide and has never worked with a government to create a backdoor to its iphones. yvonne: thank you so much.
tim higgins and joining us live from washington, d.c. other news we are watching today. tuesday couldn't have been much worse for valeant pharmaceuticals. more than half of the company was wiped out. valeant also warned it risked breaching some of its $30 billion in debt agreements if it can't file is and you will report on time. bill ackman says it will take a much larger role in the running of the company. evidence of new accounting errors, admitting an overstated process by more than $50 million in toshiba. toshiba is expected to announce its business strategies for the next fiscal year.
shares down about 1% in tokyo know. some big names identified, subject to a 23% dumping margin. u.k. exporters were hit by the highest margin of 49%. china's national people's congress wrapped up today with a key message is seeming to be the government will do whatever it takes to support short-term growth. stephen engle joins us from beijing. what are we expecting today? stephen: we will get the annual press conference from the premier. the premier will be answering questions. it is a fairly scripted affair.
it's not like the media can get up and ask any question. these are all vetted beforehand. it is a rare chance to ask a -- a very chance to ask a question of the premier. he will have his talking points, including jobs. ,his has been a big priority top of the agenda. the delegates of the -- go back to their various provinces as of today. they need to keep creating jobs and a slowing growth environment. the monthly indicators have shown the economy continues to weaken. we've seen some stabilization like in the property market but overall, the academy -- economy continues to weaken. they will again set a target of creating 10 million new jobs, the same target as the last couple years. 6.5%ys we need at least
gdp growth to have full employment and to have those 10 million new jobs. that will be the biggest challenge as i said. the numbers are indicating a deceleration in growth. we will be talking about wage stagnation. we've already got indications where they are freezing minimum wage for the next couple years as companies started downsizing and going through some of the painful reforms being laid out. that is another big thing we will be talking about and that is state-owned enterprise and restructuring. one .8 million jobs expected to be lost this year in coal and steel industries as the government embarks on supply-side reform and restructuring of these unprofitable state-owned enterprises. there is so much to talk about. thise: really reiterating
commitment to growth. what is the message the premier will be sending? >> a lot of multinational companies are obviously watching as they embark on these promised reforms. how much of the reforms agenda will continue to go ahead as they embark on short-term growth. he central bank governors says no major stimulus is necessarily needed but as far as the link champions, there is no secret as they go come through the restructuring of the state-owned enterprises, they want to make them bigger, more efficient, big, national champions competing on the global stage with the multinational corporations and we are already getting some
groundlings from the likes of the european chamber that as china build out as national champion, will there be as much market access reform as well for foreign companies? that is what will be on their mind. yvonne: thank you so much. let's talk now on the u.s. primary. it is a big day for the race for the white house with five states up for grabs, including ohio and florida. the networks are projecting wins in florida for hillary clinton and donald trump. michael is watching things for us. this will be important results and a big blow to marco rubio. >> it's devastating for marco rubio and a big win for donald trump. trumpet were spent for and florida -- for trump in florida. groups set up solely to go after donald trump.
he is winning by roughly 20 points down there and the result will be his biggest victory of the election so far. yvonne: there are five states voting tonight. ohio and florida are the only key ones, particularly for the republican party. what are we expecting out of ohio? >> ohio and florida are the big ones. the three other states will be awarded proportionally. are the bigrida ones. ohio, we are expecting john kasich to win fairly easily. he's a popular governor in ohio. it's the top elected office in the states, which brings along certain levers of power and influence to build his own operation and get that operation to the polls.
johnuld be shocking if kasich loses ohio tonight. yvonne: some shock out of florida. think you so much. trump and clinton projected winners in the florida primary. 8%.ing down about potential rescue deal may be once more boss con information on sharp's performance in the first quarter. an agreement may not be signed this month. we are seeing pressure on the stock. coming up next, a chinese insurer has made waves in hotels around the world. do rivals have up their sleeve? we will ask company ceo up next. ♪
back.: welcome it is 8:12 in hong kong. the first civilian president and have a century says success is a victory for the country. she will become president at the start of next month. the national league for democracy has been vague about its policies. the former preston of brazil set to have accepted a government position that would shield him from a corruption investigation until his successor fight impeachment.
the u.s. has further eased travel and financial restrictions on cuba. they can also receive u.s. salaries opening the door to a wave of players. , theisit start sunday first by a sitting u.s. president in 88 years. this is bloomberg news. back to business news. it jumped and profit on the back of expanded thinking revenue and developed till it he in chinese markets. china's second-largest insurer a netrofits rose with income climbing 28 $3 billion.
that nearly doubled investment income to $15.8 billion. joining us now to break down the is adjacent joining us in the studio this morning. really great to have you. a pretty good set of earnings. what was the key driver of all of this? ping an think in 2015, received a significant growth. the premium increase was 20%. our investment business like security trusted business also had a significant profit growth.
besides that, we had a very good on new customer users and we gradually migrate them to be our financial customers. yvonne: where have you seen sectors that haven't performed as well then? jason: where? yvonne: where are you seeing weakness if you see growth in the sectors? chasing: the stock market is quite volatile. we did quite well in the first half when the market was booming , wein the second half dramaticallyassets . the second half, we become more conscious. to talk about
overseas acquisitions. you want to start the trend in buying overseas but all we have been talking about is one of your peers really stepping up the game. starwood.yeing what is your take on this? is it more on hotel assets? what is your outlook for both? had a very different investment strategy. as an insurance company and a traditional insurance company. the depreciation, we do look into overseas assets but we do that at a cautious pace. yvonne: what region do you look at? jason: across the region. u.s., europe. which can match our long-term liability.
yvonne: there has been a surge of agents the past year. what measures are you implementing to make sure those agents actually attract the desired customers you need instead of drawing your clients? what are you doing there? had increase the productivity of those agents. the major reason for agents to join us and stay with us is their income increases. we had a very good strategy, which agents can sell other insurance and acquire banking customers.
they have more sources to generate revenue and they stay with us. our attention rate with agents is very high. yvonne: i want to talk about your internet finding strategies. anere is the possibility ping will sign off his internet financing businesses. what do you look at in terms of trying to spin off? jason: i think it is one of our most advanced task force. fourvelop that business years ago. there is quite an african growth in the number of users. now we have over 18 million users.
it is not our landing platform. it is an open market platform. we also wanted to be an open marketplace. we are planning the ideal procedure. yvonne: do you have a timeframe? jason: we are in the planning process. yvonne: in terms of internet finance strategy, what are some of the key products and services you see that is disruptive in this industry? overall, in china there was a lot of news about platforms. i think we will come to have some stricter regulation on this about on this front, i think it to have ait to us
platform with a very strong credit and financial capital. yvonne: in terms of the internet moguls, they are really making their way into china's insurance market. do you see that as a threat? what are the dynamics he would like to bring in the next couple years? jason: the landscape of the industry. we have been developing our toernet business to try defend. it can be disrupted. yvonne: just one more question i want to ask you about your stock. it has been about 19% down this
year in hong kong. what is the message you want to tell investors about the prospects for 2016? jason: we still deliver very robust growth and profit. the market is quite volatile but we focus on value. overall, from my perspective, i think the stock is definitely undervalued. yvonne: thank you. executive director. plenty more to come on bloomberg television. ♪
florida primary. donald trump the suspected winner in photo. these are life pictures from movie all right now suspending his campaign. rubio right now suspending his campaign. traders signaling a winning streak running out of steam. the dollar dropping to the lowest level last week in more than four months. forecasters are echoing that view, cutting their outlook on the dollar. they do have room to act on another rate increase this year. the stronger dollar arose. an 18% now show probability of a rate increase by year end. that was just 30% a month ago. declining oil prices overshadowed optimism.
vladimir putin ordered some forces to withdraw from syria. the ruble falls. the rally is fading as oil comes under renewed pressure and investors looking to policy decisions out of the fed and the bank of russia. russia is the world's largest energy exporter, making up about half of the government's revenue. the yen rallying for a second day out of the bank of japan keeping stimulus unchanged. the yen rose against. the yen appeal has been boosted by weaker retail sales numbers out of the u.s. and abroad decline over commodities. the brazilian real falling at
least 1%. we are seeing the sustained slump when it comes to resources. brazilian realhe suffering from this political uncertainty as the impeachment proceedings are not particularly clarified one it comes to that political domestic situation. at 3.7669.g the aussie has been very resilient. setting up the highest levels against the u.s. dollar in just over eight months. those are the stories driving the markets this morning. up, japan'sng
singapore. we are half an hour from the open of trading there. "firstup."ching theld trump was to win republican presidential primary. marco rubio has dropped out of the race. is the projected democratic winner in florida, providing a big jump in her delicate numbers. there is voting in four other states today, including delegate-rich ohio. some live pictures out of florida.
>> no country in the world has ever made a request like the one we see from the justice department asking apple to write degrade andreally eliminate encryption protections that protect the security of iphone users. apple is acting totally consistently. it's the justice department that is the outliers. they're are the ones acting like no other government authority. we don't think they have the power to do what they are doing. we have to draw a line in terms of the law here. almost two weeks of discussions on balancing growth with economic reform. creating 10 million new jobs this year on reducing overcapacity in traditional industries. the government target of at least 6.5% gdp growth will allow for relatively full employment.
this is a bloomberg news. trading underway this hour in japan and south korea. a look ahead of the fed meeting. let's look at the reaction so far in asia. heidi: another day of waiting today. we are waiting and unsurprisingly, not a lot of conviction across asia and markets. we are seeing trading underway. moment, some significant declines when it comes to the commodities names, energy names. crude fell again overnight and that is really dragging on sentiment when it comes to those sectors. the new zealand stocks down by 3/10 of a percent. potentially a 13th day of gains along this winning streak since october this year.
it does look like this global risk of sentiment. the situation in tokyo also about 7/10 of 1%. extending those declines. the yen has continued to strengthen for a second day. the bank of japan tight on stimulus. you are seeing across the global equities space is really accentuating the safe haven, that best performer. i bit of a bright spot. a quick look at some of the movers we're following today. the biggest drag on the australian index down by almost went into percent, really extending those declines. a bloomberg commodity index falling to a one-week low.
a number of the other call names dragged lower today. it looks like investors are jumping in and getting a bit of a bargain hunting in. we are all waiting on janet yellen. yvonne: hillary clinton and donald trump are seen as the big winners today as five more states all primaries. they include florida and ohio and the two front runners are takeny projected to have florida. megan murphy is watching developments in new york. we just saw senator rubio suspend his campaign. quite an embarrassing defeat at the hands of donald trump. embarrassing so much as it is devastating. he really had to have a victory
there tonight to have any chance of continuing what had been a staggering campaign. it was really the margin in florida. donald trump is winning by around 20 percentage points there. it's a diverse state. it is a big win for donald trump. one of the things is looking at how he did across demographics there in florida. how he did with a black voters, older voters, women to gauge the strength of what is a true political juggernaut at this point. yvonne: winner take all in ohio as well. if john kasich wins his home state is a big question. how much would that really slow trot down, how much does that make a contested convention possible? in uncharted territory. pundits are scrambling to figure out what will happen. a john kasich win in ohio goes both ways. it could help the anti-trunk
movement because it will help people think they can move to a brokered convention but john kasich will end up staying in this race and that means ted cruz, the other contender, isn't going to get a man on man matchup he needs. the john kasich and contested convention is premature but people think a win in ohio could boost win behind the sales of the stop trunk movement. i'm not sure how much it changes the scorn delegate count in the progress of donald trump. hillary clinton has a substantial delegate lead with the projected florida when. sanders still has a powerful following. will this drag on? he can't really catch up mathematically speaking. >> it's a huge gap and challenge but monetarily, which is what also matters, he's raising money at this unprecedented clip and has enough money to stay in. we knew he would lose in florida
tonight. the state we're watching for him tonight are ohio and missouri. they have an electric -- an electorate more similar to michigan where he pulled off an upset last week. it is very early. we will be watching those key midwest states. yvonne: thank you. megan murphy joining us from new york. the obvious push for corporate wages is facing some serious pushback from at least one japan giant. toyota said even a nine dollar a month pay hike will be difficult to deliver. let's get more from credit to tell -- craig trudell. how tough is toyota being? >> i would be fearful of taking a salary negotiation to the
table with toyota. they have played hardball with their union this year. the union came to then asking increase.0 monthly they responded yesterday in a newsletter that we reviewed ¥1000 wouldat even be a difficult task for them. they see rising competition, a lack of inflation here in japan, and they made the case they already pay more than their peers, which is true. they really push back hard. in the end, they reportedly will raises to their workers for the upcoming fiscal year. they areeems like playing hardball. what can we expect from peers about their pay rises? >> we have heard from honda this morning that they will actually
increase pay by less than toyota by ¥1100. the 1500 yen that toyota will offer its union reportedly is similar to well week -- what we will see many other companies report to the media later today that includes a hitachi, panasonic, heavy industry companies. todaypectation going into was that they stomp the offers or the request that the unions were going to the companies with the offers coming in even further below that just is sort of a recipe for even smaller pay increases than what unions were able to see last year. yvonne: thank you. let's take a look at what we are following this morning.
japaneseks like the retail has gone shopping. they have emerged as the leading offer after submitting an to big c. the casino is selling assets in asia and latin america to cut debt and focus on how markets in france. foxconntelling us that raising the chances a deal won't be reach this month. sharp at forecast operating profits of 48 million dollars for the fiscal year that ends this month but analysts see a lot of 212 million. the debt of more than $100 million has got -- coffee central-bank governor his job.
-- costly central-bank governor his job. the failure to immediately inform the government of the theft brought his downfall. andrew mckenzie says his company did and expect the skill of the end of the commodities boom. he held a conference in melbourne this morning. he isn't optimistic about the price. >> we are relatively bearish about the price, probably more so than any other commodity that has come to the portfolio. that was a look at some of the stories making headlines. yvonne: hillary clinton has won the ohio democratic primary.
we did see living into ohio, clinton was leading in the polls but it was by a narrow margin. the projected winner so far. sanders losing a bit of momentum in the midwest. he did when the upset victory in that is, a state demographically similar to ohio last week. we see now hillary clinton the projected winner of ohio. a major market event in the next 24 hours is the fomc policy decision and while few are betting on a rate hike, the outlook has changed significantly in the last six weeks and where watching the language closely for this one. about what they say, not so much what they do. very small chance they are going to do anything later on. the about the language and
dust spots. the short of it is we are .xpecting it to be lower we might get three rate hikes this year, maybe two. the world interest rate probability, this is what you get. of the year, this is at 50%. 5%t has gone down to below for this specific meeting. have a lookhis and at where we are as far as the , letmeeting is concerned me show you said you don't get confused. have a look at this red line here. the probability for a rate hike in june. that seems to be consensus over
40% at the moment. a lot of this has to do with what we have seen in the market. oil has been a very big story. oil has been up 40% from the bottom back in june and that has really played out when it comes to these u.s. inflation expectations. we are looking at the one year breakeven rates, which basically markets willh bond be in inflation. this has actually gone up quite a bit. .6% mid june, we are up 1.7 percent and a little underneath that 2% inflation target.
something obviously to keep in mind. what do they say about energy? one of the sticking points when it comes to inflation. it's not the biggest part of the basket but it sways the equation. the meeting today is not so much about the underlying economics -- yvonne: thank you so much. next, tense and recruit a ninja and pirates. we had the details next. ♪
projected winner in ohio full's top there were 66 -- ohio. there were 66 delegates for grabs. the governor was gaining on trump and his home state. the latest polling did have john kasich pulling slightly ahead. the projected winner john kasich. marco rubio, a different faith as he did lose in florida. >> it is 8:48 in hong kong. belgian prosecutors say one person was killed and four police officers wounded in a counterterrorism raid linked to last november's attacks in paris. one other suspect on the run after exchanges of them fire in brussels. investigators say the pair's attacks are planned and carried out in the delta capital.
the u.n. says it russia's partial withdrawal from syria has given new momentum to struggling peace talks in geneva. syria backed opposition. resident putin should not be praised for ending what was described as illegal activity. observers saywith some russian airstrikes deliberately targeted civilians. hasn't won a fourth victory added five against man googlesdefeated says chen is not superior. matches show how far artificial intelligence has come. the final game was too close to call until the very end.
lee resigned after about five hours. powered by over 2400 journalists in 150 bureaus around the world, this is bloomberg news. yvonne: a food delivery website in china is in the spotlight after being named and sham to buy cctv. the show has forced both international and domestic companies to take action after its reports. who is this year's target? >> it is a food delivery website that has operations across china. studentst up by two and has spread to beijing. v program said they sent a reporter to work undercover and said they found some of the restaurants listed
were operating without proper licenses or kitchens and it appears to show sometimes the address and photos shown on the website didn't correspond with the reality once the reporter got to those locations. after the show, they did say they would check on the network and to remove all restaurant with violations from the all my platform. this company is pretty big. wass a startup, which funded at the beginning. in january, sources said alibaba would buy a majority stake in it. >> they show also looked at some e-commerce issues on the fake reviews. >> this has been an ongoing issue.
it did raise this once again. shopping and the provision sometimes can make it worse. issuessted the main according to the complaint has been a commerce problems, car sales, and mobile phones that were faulty or had bad service. yvonne: thank you. now let's talk about $.10 because it's making a new push to the entertainment industry, buying up a japanese m&a franchises. animeto talk to -- franchises. they are working with
hundreds of local studios in china to create a universe of superheroes and storylines that can easily transition between comics, tv series, movies, even toys and games. is manga.is event -- chance do they have in this kind of space? >> is not that different from what marvel is doing what its own universe. good ip isy thinks a like a good dish that needs to be served in many ways. also when studios post to the platform, they get instant feedback from users, live
reviews come instant messaging chat groups. with these feedbacks, these content creators can instantly tweak their plots and storylines on a daily basis versus in the past when i would take months to accomplish. yvonne: thank you so much. coming up, a recycled book chain lowers its full-year forecast. market reaction when "firstup" returns. ♪
yvonne: welcome to the stock exchange. trading underway in asia. i don't hear a confident david. [laughter] what do you got? >> look at that. expected.of movement they lower their full-year forecast coming loss of more than $1 million. they trade physical books, used .ooks as well as cds, clothes it's an interesting company to keep an eye on. >> i like physical books. i like turning the pages. >> we are just old. [laughter]
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