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tv   Trending Business  Bloomberg  April 5, 2016 9:00pm-10:01pm EDT

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♪ is wednesday, april the sixth. this is "trending business". i am rishaad salamat. ♪ rishaad: right, singapore and sydney this hour. japanese stocks at two mudflows. the yen at its highest. two monthe stocks at lows. the yen at its highest. donald trump steps up the
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rhetoric as he faces voters and -- facesant, saying voters in wisconsin, saying mexico must pay for the wall. follow me on twitter @rishaadtv, and use #trendingbusiness. we have gains and losses in early tree -- trade. the shanghai open at the bottom of the hour. here's a look at the boards. session.le choppy taiwan playing catch-up, down 8/10 of 1%. singapore and malaysia are also seeing losses. there had been a pickup in the kospi. japan had a positive start, but now being sold off once again.
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adding to that 2.5% loss yesterday. pretty flat in australia. the new zealand market down by 2/10 of 1%. we will be watching china at the bottom of the hour. it outperform the region yesterday. we saw that big rebound in the crude price, lifting the energy players and sydney. oil surge up by almost 4%. takata dropping in tokyo, down almost 7%. int stock has lost 10% april. let's have a look at the strong yen. it did breached that 110 during new york trade. at the above that
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moment, a slight gain their against the u.s. dollar, more pressure on japanese equities. the aussie dollar will be in focus today. the are being put rates on hold yesterday. -- and the rba put rates on hold yesterday. rishaad: absolutely, the effect depreciation showing up in china's publicly traded company annual results. , kinsey's keep an eye on things force. what is the scale of the fallout here? tom: the impact has been significant. companies with losses of $7.5 billion, 13 times 2015 -- was behind 11% slump in
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profits for corporate/year. profits lastate year. here's how the losses broke down on a sector by sector basis. lossess with a worse, fx of $2.8 billion. china southern had the biggest loss of $900 million. real estate companies also badly hit, second on the list, combined fx losses of $2 billion. energy and mining sectors also badly hit. analysts warning more pain to come. the yuan has strengthened against the u.s. dollar, but he continues to weaken against a basket of currencies. companies are responding by cutting back on u.s. dollar denominated debt, also hedging liabilities and watching for further moves in the renminbi. rishaad: you mention some of the
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industry groups there, which is the worst head? tom: the airlines were badly hit, $2.8 billion in fx losses. the real estate companies as well, the sector, energy, mining , around 2 billion u.s. dollars. they borrowed quite heavily in u.s. dollar denominated debt last year and are trying to pay that back. thanks for that. tom mackenzie with the latest on the follow out of the yuan depreciation in august taking a toll on corporate china. now, a look at wisconsin. thers casting ballots in republican and democratic presidential primaries today. donald trump facing a test of whether his latest self-inflicted wounds could harm's chance of winning the nomination. megan murphy joins us from our
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new york studio. here,sconsin possibly could it be the turning point for donald trump or ted cruz? ted cruz is trying to make this a big turning point, and there's no question it is a significant race for him. that the stop donald trump movement has momentum. can anyone steal enough delegates away from him to impede him from winning the nomination outright. att people will be looking in wisconsin, night even who wins, but by what margin and what that means for the possibility of going to a contested convention in cleveland for the republicans in july. how doesthe thing is donald trump minimize the damage if he does lose? looking like he will lose in wisconsin from the eggs of falls. xit polls.
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manager was charged with battery, made a series of statements on abortion that he had to walk back. i think he has learned his lesson. more trying to strike a presidential town and looking to advisors for experience, particularly with experience in contested conventions. and he will try to strike tones on issues they give him more gravitas and shy away from the outlandish statements he has been making. he describes himself as a lone ranger. i do think he will reign it in a little bit. rishaad: what about when we look at the democrats? what a win for bernie sanders change anything? megan: we have had one broadcaster called the race for bernie sanders. inhad huge turnout
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wisconsin, long lines, and particular for college students. whether or not it can help them close the gap on hillary clinton , he's starting to put out the beginnings of a strategy of trying to peel away superdelegates and take this to the convention, where he thinks maybe he can get something going on the floor, but realistically doing the math, she has a significantly. rishaad: thank you very much indeed. at some of theok other stories we are watching. is signaling several warnings on the global economy, and were getting more. sherri: we're getting a grim global picture from christine , political risk, terrorism, to a potential brexit. she did not give much in the way of good news. she says the downside risks have increased, and not much upside. the imf view of the world
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made worse by china slowdown, lower commodity prices, and the risk of financial tightening in many countries. the fund's warning that political populism also poses a growing risk to the economic order field by incoming inequality and the fallout from the last financial crisis. take a listen to what she had to say. christine: what we fear is this that i very new mediocre have warned about last year, , noh would mean weak growth no high inflation, still debt,. . so we call for policy actions. meetingthe imf spring start next week on april 15.
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the decision by india's central bank to cut the key rate was expected by economists, but the r.b.i. did surprise markets with measures to ease of the funding squeeze. the benchmark rate was cut by 25 basis points to six point 5%, the lowest since march 2011. he also reduced daily reserve ratio requirements and narrowed and interest rate corridor to reduce volatility. analysts say these steps will help bring down costs for lenders, encouraging them to pass on the 150 point basis rate cut over the past 15 months to households and companies. the monetary policy will remain accommodative and the rbi will watch macroeconomic and financial developments in the months ahead. export record last shipments rising to
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39 million tons. shipments to china rising 17% despite the country slowing economy. iron ore has staged a surprise rally in 2016 as chinese policymakers cigna -- signal their willingness. prices have sagged in the past expanded as holdings to the highest level in a most the year. it is a maritime gateway to load time -- low-cost supplies. last month, it sent its inaugural cargo to china. rishaad: thanks. resorts painting a bleak picture for macau. we will see where the chips of
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fallen. more on the panama papers and revelations and what they could mean for tax havens. stick around. ♪
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♪ china has to announced the panama papers is a western conspiracy after the leak documents linked president xi jinping to offshore companies and tax avoidance. they said powerful forces were behind the leaks. the icelandic prime minister was the first one to quit over the papers. initially denied hiding his wealth and dodging taxes, but resigned after street protests. will these leaks lead to crackdowns on tax havens? senior partner of financial services joins us from
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singapore. tell us what was happening here first of all for the layperson. some very straightforward things, one of which is show, shell companies are not uncommon. there are lots of people who do that for legitimate reasons. people are focusing on the darker side of this. it probably needs to be looked at in balance. rishaad: were talking about they laundering, and problem with shell companies is that quite often we don't know who the end user is as a result. over the last five-10 years, there has been a large focus by the banking sector and regulators off the back of financing terrorism to really try and make sure that everybody
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understands who they are doing business with. we need to enforce and strengthen know your customer yous, and to your point, if have companies that sit between other companies and try to of -- two of ownership you skate rishaad: rishaad: it goes to know the customer. is it good enough? keith: as i say, this is something in the spotlight for everybody around the world and financial services. people are getting quite sophisticated and the technology they use, trying to understand not only the legalities of the situation, who is the beneficial owner combat also to look at transactions around these entities, so using numeral --works, we saw re-facility
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recently some technology being used for understanding what's going on in customer transactions, trying to use some of the intelligence that comes , the defensetions and intelligence industries being quite useful in building some of the technology around that, so helping people to go together patterns and understand who people really are and get to the right answer. rishaad: again, let's get back to the end user, the chief beneficiary of some of these companies. that used to be something called bearer shares. is that still around anywhere? you know, just given the focus on know your customer and the obvious practical issues with bearer shares, those are difficult things to use anymore. i don'tmost people --
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think there's much of that going on anymore around the world just because you can't open a bank are strong onanks know your customer, and there is a disconnect. consultancy, it must be approached with people setting up tax structures as offshore companies and shell structures. how do you deal with it yourselves? keith: we are very clear. we are with the rest of the international community and focused on tax transparency. gone are the days when people were focused on may be trying to optimize their tax situations in slightly more interesting ways. we are very focused on being part of the world around tax transparency. i think you will have seen over the last 5-6 years, the oecd focused on making sure that governments are sharing information, tax information come exchange agreements, and
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also that there is transparency, so we have had the u.s., common reporting standards where countries will be sharing information from attack standpoint. is any think there better answer to your question then we would advise customers to do what is the right thing and comply with laws and pay their taxes. the law firm, mossack fonseca, says they have done nothing wrong. they think there will not be a single case. confident?y be so i can't speak to their specific issues. we are in a limited information situation and can't comment on that. that's one thing, so do you think other tax havens will be scrutinized even more, and that includes beyond panama?
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well, there are some locations which have competitive tax rates. i think as part of the ongoing measures by the oecd, there has been a focus on those, a number of situations relating to us-based companies and their operations in europe, many many parts of the world, a focus on where there are competitive tax rates in locations. is i going to be a theme? yes, it is. the oecd has a number of initiatives focus on this and helping governments to get to the right answer that taxes are paid where they are due. one, there is a strange amalgamation going on, illegal, taxs avoidance is legal, but now the two are melded together, wouldn't you say? keith: i think that's -- convextalk it
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topic we don't have time to get into. i think the focus is paying the taxes in the jurisdictions where you are supposed to, and that is the focus, operationalizing taxes and for filling tax obligations rather than thing that might've been a legacy. sorry to throw you that one of the end. thank you very much indeed. storiesickly look at making headlines around the world now. the philippines turning to the gaming industry to recover some of the millions channeled through can seniors and gambled by network of people. asking courts to return as much as possible. the junket operators says he was an interpreter laer. he has turned over $5 million and says more will be handed
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over this month. vietnam needs to approve a change of prime minister. he will be replaced by a behind-the-scenes technocrat known for streamlining official bureaucracy. he studied economics at singapore national university. from the people's liberation army charged with bribery and will face court-martial in china's highest level military corruption case in six decades. he was the pla's highest-ranking uniformed officer. he says prosecutors found he used his position to promote moneys and gives. saying "the amount of money was enormous and the evidence is solid." powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. of australia's
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biggest banks implicated in rate raking. those details when "trending business" returns in a couple of minutes. ♪
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rishaad: right, this is breaking news. bernie sanders has won the wisconsin democratic primary. he has won six of the last seven nomination contests after a slew of victories by hillary clinton. shows sanderse ahead by 2.6%. australia's security regulators launch action against the bank. they deny the allegation. sydney.en is in th tol: accused of trying manipulate the bank swap bill
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and 16 times between 2010 2012. according to the regulator there, the bank would have a large number of products priced or invite based on the bill rate, and then try to move the right upper down and profit according to what it did. released part of a phone conversation between a westpac employee and another identified -- unidentified person. that is the summary of the argument. in response, westpac rejects allegations and said it would offend them. westpac shares of briefly this morning, currently off by 2%. rishaad: thanks for that. that is all allen in sydney.
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line and tough on north korea. what is beijing up to? details right after this very short break. ♪
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show me movies with explosions. show me more like this. show me "previously watched." what's recommended for me.
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x1 makes it easy to find what blows you away. call or go onliand switch to x1. only with xfinity. our top stories, wisconsin has the latest primaries in what could be a tough day for the front runners. bernie sanders with a projected win over hillary clinton. ted cruz with an early lead over donald trump. donald trump says he would block remittance payments to mexico if it refused to pay for his border wall. kuwait's opec governor saying
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that leading producers can agree to cap out at the january level if tehran does not join in. westpac shares falling after security regulators start civil proceedings over manipulation of interest rates. the bank says it will mount a vigorous defense. investigationde -- investigation launched last month against another bank. ted cruz has won the gop primary, a blow to the path to the nomination for donald trump. he had been projected earlier to do so. we will find out the projected margin of victory for you. can gains continue in this part of the world. the opening in hong kong and
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china. like weren't look seeing gains continue on the open. the shanghai market retreating after that solid gain yesterday. 1%. by six tense of hong kong adding to yesterday's losses, another quarter of 1% on the open. we have that rocky's ocean through from europe and u.s. .arkets overnight christine lagarde morning about japan's economy, europe, and global stocks fall to two month lows. i won coming back online after a public holiday and joining in that selloff, down by 1.5%. singapore extending losses, but malaysia higher, as is the philippines. down a third of 1%, and the strong yen weighing on japanese stocks, down by half of 1%.
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those losses are continuing. a note this morning favoring 13 coming, but the other two stocks falling in the early session. showing you some of the oil producers in the region on that rally in crude. currencies also in focus. a bit of a switch out of the korean one, and the yen continuing to strengthen, 110 during new york trade and still strong against the greenback. rishaad: right, macau's latest sight foro let up in the gambling hubs dwindling fortunes. this is going on and on. >> it is.
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obvious, another quarterly decline, but to our perspective the definitive good 'sws in this is wynn preannounced results later today a 14% drop showed from a midpoint perspective in revenue. that is the best revenue performance they've had in a , not, sequentially better far off the market, down 13% for the quarter, even though they are vip oriented. we are definitely seeing progress. if you look at estimates for others, were starting to see forward earnings estimates bottom out and start icktake positive -- t
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positive. rishaad: when you dig deep and look at that, where are we? that this is is still declining on a year on year basis. you have to see bottoming in sequential movement up before you see year on year improvements. bottomedets for wynn in the second quarter of last year, so they have had three quarters that have showed sequential progress. rishaad: that is not where they have been. that is the be all in all of where the market is going. their vip business has now sequentially and probed -- sequentially improved two quarters. and new resort
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coming online, where are we with that? them furtherd push into that premium mass, critical like it is for everybody else. on the news for them margin is they did file with the hong kong exchange couple of that theysuggesting will be imposing a penalty for their contractor after june 25, if it doesn't open on time, which at least raises the question if it will be june 25. it should be this summer without an issue. it is a question of the exact date. that will be huge for them. we think it is a big guilt for macau over all, because this does have mass-market appeal. it's another step towards it. swiss gondola that will take you around this big .ake it takes you into the wynn
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palace. it's a pretty cold attraction. rishaad: sounds classy. producers, top discussing limiting supplies. the sticker is iran here. can they reach agreement without tehran's consent? >> there is speculation that maybe this could happen. opec's governor was the one who floated that idea. feeding supplyt at january -- freezing supply january levels has been going on for several weeks. barrel -- at 3675 a $36.75 a barrel. west texas crude has been rebounding off lows, but started to stall a little bit as discussions stalled about
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whether they can come up with any agreement on freezing output. there is going to be a report , so we seednesday what u.s. stockpiles look like. stockpiles lows 285 million barrels, and again would mean stockpiles are at the highest in 80 years. agreemente if any makes any difference in terms of sentiment. saudi arabia has said it could only cap production if other major oil producers were included. that includes iran. among the countries attending the talks, russia, opec producers, and the only one not attending will be libya. also helping the oil prices the dollars decline. priceds made commodities
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in u.s. dollars much more attractive. let's take a quick look at the gold situation. gold has been gaining and held its gains after rising the most in a week as stock markets have fallen. we are looking at equities falling and the gold price there rising. that is as investors become more after comments made by the imf. comes a week after janet yellen says there needs to be caution in tightening monetary policy. 17 -- rose 70% last quarter. rishaad: singapore listed commodities noble group facing higher financing costs with an
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unsecured loan of $1 billion. the company is willing to pay 2.5% more than the london interbank offer rate. banks are still prepared to support noble, but at a higher margin. halliburton's takeover will be blocked by u.s. authorities. the justice department planning a lawsuit to block the deal on the grounds it would violate antitrust laws by eliminating competition in several markets. they announced the merger in 2014 but have faced regulatory hurdles in the united states and europe. another china company facing default, china green holdings saying it can't repay to bonds due to mature next week here at they hired an advisor to buy more times. the bonds were sold with a face
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value of $17.9 million. china green losing money amid a surge of short-term borrowing. , a countryh china making good on its pledge to support you and sanctions on -- on united nations sanctions on north korea. we look at how far beijing is willing to go to keep its reclusive neighbor and line. they don't want a collapse of the regime, but don't one a rogue nuclear state on their border, so they are coming through with their pledges in this one key provision in the nuclear agreements. china coming through, at least on this key provision. let's show what china has agreed to. they agreed to ban imports, minerals from north korea, commodities, coal, iron ore, titanium, gold, and additive for steel products, and also rare
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earths. they will restrict their exports of jet fuel to north korea. china is its main supporter for food, arms, energy, and perhaps most importantly, especially hardlinked to coal, currency. has its own industry, but for north korea come of all its total exports to china, 40% of the total experts -- exports are coal. that will hit north korea and pyongyang where it hurts. rishaad: you've been at the border and seen the trucks going back-and-forth. it's smuggling a big problem here? >> a lot of this trade is allegedly unreported, so there is a lot of smuggling across the border.
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china does not want to destabilize north korea. they do need basic food items and the like. there is a loophole in this agreement, and it is a pretty big tunnel. trade in these minerals will be allowed, china has agreed will be allowed as long as the proceeds to not necessarily go to the nuclear program. rishaad: so you're going to police that? >> exactly. i rest my case. rishaad: thank you very much indeed. coming up, the best deal on financial products. a website which compares personal financial services right after this very short break. ♪
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♪ back to those
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primary results out of wisconsin. megan murphy joins us from our new york studio. it seems it is a good day for ted cruz and bernie sanders. megan: this has ended up as we expected. we had early calls in both races. fox immediately called bernie sanders, reflective of the surge in support he got from that highly educated and young demographic. for ted cruz, big win, a possible turning point in the stop trump movement. looking at how each congressional district plays out. right, what about ted cruz? how much does the slow donald trump down? we will have to see the final count in terms of how these delegates are awarded, but donald trump does have a huge
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lead in new york, and a lot of people argue that donald trump has not been slowed by the stop trumpet momentum. what has slowed him is the law will end the primary calendar. wisconsin was never going to be in easy state with the high ly educated electorate. he did have a bad week last week. early polls show he would take over 50% and what he considers his home state. that will be the big next test in this election to see whether or not he can win the nomination outright or it goes to a contested convention. rishaad: thank you. joining us from new york. ixin pmi number crossing. march, china pmi services survey, above the previous reading of 51.2.
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we had the official numbers last week. 53.8, so we were expecting a stronger reading, and that's what we have. important fors the chinese government as they tried this rebalancing come moving away from manufacturing and investment led growth towards the services sector. seasonal also some affects that may have factored into this. 52 .2 from 51.2 in february is a healthy expansion for the services sector, and we know that the manufacturing data as well for pmi services last week came in stronger than expected as well, so some healthy numbers here to fall on the back of that. rishaad: ok.
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price comparisons for hotels, restaurants, and flights, but what about financial products like credit cards and loans? with the presence in eight asian countries, compare asia group has a new ceo. congratulations. tell us what compare asia does. compare asia is the leading financial comparison business in asia, serving more than 20 million users helping them compare and get financial products, banking, insurance, telcos. terrific series eight with wonderful and investors. we are also getting interest in our series b. what are you looking for in your series b? >> inbound interest. understands base
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our growth story. will allow us to continue to make investments in our business. rishaad: you didn't tell me how much you are raising. >> it is a very competitive process and can't speak to specifics. our prior investors are all supportive of our business, but no specifics. it must credit cards, be difficult because you have to do it country by country. >> that's right. we operate in eight markets around asia with 500 million consumers. our products reach country, detailed information that allow consumers to understand the market, products, and find the one most relevant to them. rishaad: i guess we would call this a financial technology product, wouldn't we? >> it certainly is. it helps people save money and
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time and find products everybody needs. rishaad: credit cards, loans, what else? >> telcos. rishaad: where do you expand? in the markets we are in, we have huge potential. we are currently serving 20 million users annually. we have 500 million consumers in those markets, we have huge potential ahead. we are looking at other markets for further expansion. rishaad: were looking at a market of $52 billion. >> that's right. if we look at the spending of the industries we serve, this is only a dent. chinad: you are not in yet. are there barriers to entry there? on these eighted markets because we think there is huge potential there.
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i will continue to grow, but don't want to comment on specifics in a competitive industry. rishaad: i can well imagine. getting this funding is the eventual route to an ipo sale. >> it is too early to speak to specifics on a timeline. continue to invest because as we make our product easier to use and more available through marketing, that is the focus for the business. the rest will take care of itself. rishaad: how do you build the brand of compare asia? about being absolutely consumer focused and impartial. we have to have all of the right products and right information. we have a lot of original content on our blog to understand key issues and help them identify the best products so they can improve their financial lives through their financial products. rishaad: good stuff. thank you. good luck. >> thank you very much.
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rishaad: right, let's get to milwaukee, wisconsin. ted cruz winning there. he managed to defeat donald trump. ofdon't know what the margin victory is yet, but people have been talking about this, mainly him actually, that this is a turning point. he has been talking about the political game changing two weeks ago with utah. we have to take a break. touchdown,twitter snatching sporting broadcast rights from big-name players. you're watching "trending business". ♪
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scored atwitter
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sporting victory as it makes a move into online programming. straining nfl thursday night games. it is only $10 million for 10 games, quite a steal, quite a bargain compared to the market rate. $17 million, yahoo! paid for a single game from london, so a good bargain for twitter. beenig bosses have tweeting their announcements, the nfl commissioner just announcing that nfl fans will have a chance to see those games on twitter. , my dadck dorsey saying is going to love this. watch the 2016 thursday night nfl games with twitter. some comments coming through from high profile ceo ofsmen, the t-mobile, jon leger,
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congratulating the twitter team as well as the nfl, saying that this is huge. this is quite a chance for the nfl to experiment going to a different media outlet in order to stream their games now. rishaad: what about the fans? are excitedfans good one person saying "how are they going to do this with 140 characters per post/" ?" one person saying, finally something interesting on twitter. been struggling to attract users and expand content beyond journalists and politicians and celebrities. past efforts to attract more users, the olympics, they have not done well. people are excited, but also skeptical. rishaad: right, let's tell you what you we have coming up. we talked about whether
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investors have overreacted to the triple headwinds of oil, the dollar, and the china slowdown. we have a look at it in the next hour of "trending business". ♪
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♪ >> from studios of new york city, this is "charlie rose." charlie: the gop front-runner faces new challenges in tomorrow's wisconsin primary, where polls show him trailing ted cruz. joining me is robert costa for "the washington post." he recently sat down with trump. his son and others, joining them.


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