Skip to main content

tv   Trending Business  Bloomberg  April 12, 2016 9:00pm-10:01pm EDT

9:00 pm
♪ it is the 13th of april, wednesday. i am rishaad salamat. this is "trending business". ♪ rishaad: taking you to singapore and sydney this hour. the asia-pacific winning streak , regional equities adding $100 billion of value today. the imf has cut its outlook for the global economy again, with japan taking the biggest hit.
9:01 pm
it is all about the data. questioning the veracity of saying out of china, that delusions will be one day exposed to the fresh air. follow me on twitter @rishaadtv, and include #trendingbusiness. the hong kong open in 30 minutes. is one whereheme the bulls are firmly in charge. we are seeing arising region,across the filtering into the asia-pacific. , futures on the way up. japan leading the gains today. dollars so far this
9:02 pm
morning. we are on point for a sixth day of gains, $360 billion of market capitalization added. significant, but given the situation with the world economy. out in anade comes hour and a half, maybe. watch for australia, taiwan, and hong kong. have a look at what is happening across the currency space. dollar weakness and yen weakness overnight. the dollar starting to reverse that a little bit, so gaining against its peers. ,he yen still under pressure 108 .63. .63. the biggest winner in the fx
9:03 pm
space is the malaysian ringgit. that is normally something c. c when it comes to currencies. -- that is something you don't normally see when it comes to currencies. , the today oil chart, up 4.5%. moment on news that the deal between the russians and the saudi's. that is something to watch closely as well. watch out for these energy related -- rishaad: thanks a lot for that. tokyo and hong kong, get a reaction, and looking to the next three days, data out of
9:04 pm
china, including trade figures dpd first quarter g numbers. china exports are expected to snap the longest streak of decline since the global financial crisis in 2009. trade numbers for march do this morning at a beijing after eight exports,months of shipments likely picked up, 10% year over year last month in to theterms according consensus estimate from economists surveyed by bloomberg. there were obvious seasonal aberrations in february. effect aswer base march of last year was bad for exports, down 15%.
9:05 pm
nevertheless, it should represent what we have been seeing recently, that is a stabilization of growth in the chinese economy. imports, a keye indicator of domestic demand in china, also likely improved in ,arch, a fall of 10.1% expected but that is an improvement over previous months. nevertheless, it is the 17th consecutive month of declines. stabilization nevertheless the theme of the day. , those numbers should be out, trade numbers anyway. let's tell you about the imf warnings coming in, thick and fast. its global gdp forecast for the second time this year, saying growth has been too slow for too long in japan. >> no longer any more room for error according to the imf. we have already seen this
9:06 pm
of slow growth. a look at this terminal chart, the forecasts have changed, bouncing back since 2009, but there has been a stagnation in growth, and now that generate forecast has been -- that january forecast has been cut. three point 2%. the imap citing weak exports and imf citingent -- the weak exports and low investments. here's how it breaks down closer to home. japan and china, some big mentions in this recent forecasts. japan getting a beating, imf slashing its forecast by half for this year. fund citing a stronger yen,
9:07 pm
which has appreciated 13 percents since the last forecast -- 13% since the last forecast in october. external demand has not been a strong as hoped. in 2017, the picture looking worse for japan, with the imf expecting the gdp into negative territory, contracting next year. china is the bright spot with an upgrade and forecast by 02 0.2%. the imf says given the target set by china, the imf expects more policy stimulus to stimulate growth, following resilient domestic demand and growth and services, offsetting the weakness in manufacturing. longer-term structural issues are still at the heart of the
9:08 pm
imf's concerns and china. a gloomy forecast casting a gatherpicture as leaders for the g-20 this week. some bright spots, emerging markets growing, india one of them. a more: we will have detailed look at that story later on. tweet us your thoughts @rishaadtv, using #trendingbusiness. the pressure mounts on the malaysian prime minister, one of the stories we are covering. here is around that. rosalind: the investigation into the malaysian government fund is widening. they are asking luxembourg and singapore for help. the attorney general is investigating two former officials from the united arab imris. -- eric emirates. -- united arab emirates.
9:09 pm
they are also the subject of probes in other countries under allegations that it was used to funnel money. general hasttorney cleared the prime minister of any wrongdoing. japan plans 711 and and to discuss top management. seven & i are struggling to fill roles. coo is not taking responsibility for the confusion. daniel loeb has been calling for restructure or to get rid of less profitable units. mark zuckerberg
9:10 pm
has laid out his vision for the next 10 years, and it is one that sees virtual reality at the forefront of everyday life. we thinkof the things about as physical objects today, like a tv for displaying an image, will the mobile apps and a mobile app store. it will take a long time to make this work, but this is the vision and what were trying to get to over the next 10 years. rosalind: mark zuckerberg encouraged his this is to build spots for the messenger -- bots for the messenger services. facebook also sees live video as a key factor. another story we are tracking on our website, singapore may hold off on tools forsing to save
9:11 pm
a possible brexit. have a look at that one, bloomberg.com/asia. we will talk to the chief executive of one provider about booming demand. next, third quarter -- first quarter earnings season in the u.s., the initial market reaction when "trending business" continues. ♪
9:12 pm
9:13 pm
this is despite what can only be described as a tepid start to the first quarter earnings season. great to see you. let's have a look at what is happening. we could have a 9% fall in earnings, some talking about
9:14 pm
this being the worst earnings season to come since the global financial crisis. how does this play out? >> that is a very interesting question. everybody has been piling into risk equities again. the february low, everybody piled back into risk, and we are now at levels where the equity market is positive and not too far off from an all-time high in u.s. equities, while earnings are pointing to an earnings recession, so the question is where do we go from here. that we a probability could see by the rumor, sell the news. maybe earnings season comes in better than expected, but that potentially could have been priced into this rally. couldd: ironically, we see a bit of a bump up when it comes to equities there? correct.
9:15 pm
this is what the market has been consolidating. slightly upward bias because there were a lot of shorts out there previously. we saw a lot of short covering. hast of that potentially room to go up if the earnings season comes in that are than expected. having said that, it might be less terrible than the market thinks at the moment. rishaad: a lot of people have been talking about this move from developed markets into emerging targets. one trader i was talking to just that, talk. it hasn't materialized. what is your view? >> if you follow price action, it has materialized. brazil, many banks are officially underweight, but brazil has the best stock market
9:16 pm
performance in the world. turkey was a major bull market trend. columbia has done well on the back of the oil move, so emerging markets are outperforming developed markets. the analyst community in many of these markets, particularly brazil, is behind the curve. to peoplee go back trying to get a return, hunting for yield, people looking closely at high-yield around the world. what you make of that? where i see a lot of danger, because it leads us back to the whole issue of dislocation in capital markets. this was the debate about the earnings season as well. you have an earnings season that potentially implies an earnings recession while the stock market is close to all-time highs, so something is not quite right here if you think about it. more importantly, the bond market historically was showing you danger.
9:17 pm
the equity market has been more nonchalant in a sense, but if you think about bonds, they almost traded like equities and had a major rebound from the february lows. ofthe other hand, a lot shares from the same issue are showing you that we are in a bear market, so a potential disconnect. in this case, i think the equities market is correct. there are serious dangers with respect to large cap banks. if you look at share price performance, some of them look like they are falling off the cliff, but for potentially the right reasons. rishaad: you're talking about contingent convertible bonds, they yield a lot, but have inherent high risk, do they not? >> correct. at one point, you can get converted into equity. also a lot of them are
9:18 pm
perpetual's. s. there's a put option from the bank to convert into equity, it might eat much higher risk than most people think. this dislocation has come in because people are looking for yield and it seems to be an attractive place for yield without understanding the risks. ofyou think about the impact negative interest rates, it is hurting bank profitability, and that is quite well known in the market. the other area is the impact of financial technology, further eroding the earning power of banks. if that is really the case and i, than being inbeing bank perpetuals and contingent can covetable -- contingent convertible bonds might be a mistake. rishaad: thank you. a paul ryan has ruled out
9:19 pm
nomination to run for president. candidate for vice president for years ago and became house speaker a year ago. we have too much work to do in the house to allow this speculation to swirl or to have my motivations question. let me be clear. , nor will it accept, the nomination for our party. let me's directly to the delegates on this. if no candidate has a majority on the first ballot, i believe you should only choose from a person who is actually having participated in the primary. count me out. journalist the taint , it is alleged the
9:20 pm
program paid a firm to snatch the children from the grandmother on a beirut street. the journalists may face charges. a painting found and an attic -- byan attic in france is caravaggio. -- art experts admit there may never be consensus, believe it is genuine. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. i am rosalind chin. , korea, coming up deputy prime ministers saying the economy is on track to meet growth targets. we will be hearing from him
9:21 pm
right after this break. ♪
9:22 pm
9:23 pm
rishaad: thank you for staying with "trending business". south korea voting in a parliamentary election. at a record and an unemployment for the under 30's at levels not seen for 20 years. criticism of policy has taken a backseat amid growing security tensions on the peninsula. has seend states indications that the north is preparing for another elastic missile launch. the deputy prime minister says korea is on track to meet its growth targets, but says the situation may change because of global events. china's economy is beginning
9:24 pm
to slow down. ofn suddenly may be because also areope and japan experiencing slow down of their economies, and that also -- >> at the imf meeting, what would you like to see specifically discussed and what steps you think should be taken by policymakers around the world to revive growth? two atink their are least we have to talk about the imf meeting. g-20 levelso-called policy coordination to address global growth. is that the solutions to improve the global financial safety nets, as you mentioned, that we might rely too much on,
9:25 pm
the central banks, and that causes financial instability. china.s talk about you mentioned it slow down. how do you see the chinese economy right now, a hard landing, a slowdown, have things stabilized yet? where are they? >> we hope to have a soft landing for china's economy. that is not only my hope, but that is a proper expectation i think. jokingly, i kept saying that we trust with china is saying, and i do believe they have the capability to manage this so-called soft landing of china's economy. i think they are on the right track. although, as you said, it is slowing. ishaad: the south korean
9:26 pm
deputy prime minister there. democratg liberal party has abandoned plans to pass legislation on the transpacific partnership during the current session. debate was suspended on friday after members of the opposition walked out. the liberal democratic party has refused to release all document's related to the transpacific partnership agreement. said to be bank planning to adopt the seven-day repurchase rate is a new benchmark, designed to improve the effectiveness of policy changes. thank indonesia uses a reference ray currently, which is not tied to money markets. rupee expected to slide more than 5% this year to 70 against the dollar. they hope this will hold the slump in exports, and they
9:27 pm
consciously won a weaker currency, but is not admitting it. the rupee has lost half its value over the past five years. waiting for official trade figures out of china, analysts expecting a double-digit export growth. this is "trending business". ♪ you shouldn't have to go far
9:28 pm
to get the help you're looking for. that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology. and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about.
9:29 pm
i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. rishaad: a look at our top stories, stocks extending their longest climb since october, fueled by oil prices at more than $40 a barrel. the yen's retreat helping the sinceto its highest level march. asked abouts being the accuracy of china's official economic figures. beijing says the gdp growth rate has changed less than half the
9:30 pm
mean figure. says the claims that china is growing at 6% a year are "a delusion." mark zuckerberg at the annual developer conference saying that virtual-reality to be dominant. shanghai, seeing
9:31 pm
+++ what are we doing now for the hang seng. >> we should be opening at those levels. the missionary show you what's happening with the regional benchmark. a $100 billion market morning, the amount of market capital created on paper this morning. every single sector growing, yields coming up. have a look at gold, gold coming down. all oioil coming off its highs. we are above are 200 day moving average for crude for the first since july 2014. asian looking like this. hong kong, shanghai, and manila joining the party now. that's how the equity markets look ahead out of crucial figures from china. we could get an improvement in exports there. the nikkei 225, that's what a weaker yen will do. 1.2%, about 20,000. for a lot of these markets across asia, the highest level so far this month. pboc setting the reference rate for the renminbi at the
9:32 pm
strongest level since april 1. people waking up to a weaker u.s. dollar. it is up against the yen, but does not mean it is up against its peers. kong, they in hong denying any involvement in peer-to-peer lending. several websites saying they are part of this. they are tsonga don't have anything to do with that. fook down 25% same-store sales on the chinese mainland for the first quarter.
9:33 pm
byd with a hefty contract, just over one billion. good news for the markets. rishaad: absolutely. a veritable delusion of data out of china. onst quarter gdp numbers friday, and questions being asked about the accuracy of the statistics. here is our chief agent economics correspondent -- let's have a look at these trade numbers. they will tell us about what is going on does mystically -- on domestically. >> we are expecting a better number on the trade and export side, bringing to an end months of declining shipments. it may also reflect higher prices. things is curious that even as headline numbers have fallen, they've held their market share of exports. we will see what is in the
9:34 pm
details of the numbers when they come out. rishaad: the improvement may come from the comparables. >> exports in march 2016 were quite poor, falling sharply unexpectedly. we will have to see how do shipments go to the u.s. and the eurozone go. have volumes risen? rishaad: ok, what about the yuan ? you have to look to friday, don't you? is the exportion numbers are weaker than expected, weakening the yuan. other say the weakening yuan is helping exports. i think the yuan is out of the story. they want the capital outflow story to stabilize. there are signs that is coming together. they won't want to rock the
9:35 pm
boat. is less part of the export story than it used to be. rishaad: thank you for that. bill gross is sparking a tweet storm. figures, we're taking a look at the reaction on social media. just after that imf report, the did raise the forecast for china gdp to 6.5% forthis year, 6.2 percent 2017, both rates up to tens of a percentage point. bill gross had something to say against that. he tweeted out the number one investor delusion, they will be exposed to fresh air, china growing at 6% is among one of them. he also listed for other things that we will show you. he also challenge the effectiveness of central banks
9:36 pm
relying on negative interest rates could he says basically that interest yields will not work. another one in terms of the ability of companies to increase share buybackut and tax revisions on productivity growth. another idea that he talked about was in terms of demographics, don't matter because they moved to slow. he says these are all a myth. bill gross starting a lot of headlines. some people chiming in, not all in line with the bond manager. one person tweeting out that if anyone is growing, it must be china and india, not the u.s. or europe. back to you. rishaad: let's check some other stories. chinese direct investment in the 90's states rising to record levels. -- in the united states rising to record levels.
9:37 pm
the report says chinese investment has created 90,000 ,.s. jobs in the last 15 years but antitrade rhetoric from all three presidential candidates threatens to put that at risk. metals posting gains in sydney 42er the company shipped million tons of iron ore in the third quarter. it also reported lower production costs under $15 per ton. net declines of five point million -- five point billion australian dollars. the effect of $81 million of bangladesh's foreign reserves, a bank said it would consider repairing part of any money to can be recovered. toestigators are trying track down hackers who attempted to still $1 billion from bangladesh's account in the new york fed. icbc saying they did not realize several stock payment orders where from the bangladesh bank and will return the money.
9:38 pm
a little-known japanese company is becoming the go-to guy when law enforcement agencies want to unlock smartphones. one of its decisions is said to work with the fbi to unlock an iphone link to the san bernardino killings. >> as a leading company in areas of forensics, we want to keep improving our technology to provide better services and skills to make the world safe and peaceful. division -- suncor sun corp. is expecting sales to grow annually. as for the next step, we are
9:39 pm
open to the idea of teaming up with companies that possessing unique technology and forensics. we will continue to search for appropriate partner. alibaba making his biggest overseas investment, $1 billion to take control of the southeast asia online retailer. a reporter is with me now. what about this deal? >> alibaba spending $1 billion, ating -- valuing the company $1.5 billion, the largest overseas acquisition from the company yet that wants to make more than half of its revenue overseas. this deal gives alibaba instant access to six markets in southeast asia, and also in terms of helping its global and payment platforms. , they look at alibaba said they want overseas revenue to help them grow, but actually what is happening at the
9:40 pm
company's we are seeing the reliance on domestic market increase over the past few quarters. that isthe first deal actually of substance for the company, and southeast asia being one of the fastest-growing markets globally will definitely be on top of alibaba's radar. rocket will still be holding a stake in lazada. percentage ofd a what they originally invested into lazada. in selling the control, they won't be taking the lead for lazada's potential ipo in the future. rishaad: thank you very much indeed. it's raining demand for cloud service providers as more businesses look to them for the daily task. that and more when "trending business" returns. ♪
9:41 pm
9:42 pm
9:43 pm
these of the stories making headlines around the world. brazil's and battled president has accused her deputy of plotting a coup to overthrow her government. monday, brazil's lower house is expected to vote on impeachment within days. a two thirds majority is needed to pass the motion on to the senate. police and tylan have arrested more than 20,000 people ahead of new year celebrations that begin today. the arrest targeted suspects wanted for theft, drug crimes, fraud, and embezzlement.
9:44 pm
an official government report says more than 80% of water drawn from shallow wells and eastern china is unsafe or drinking. the report emphasizes that water use white most urban chinese homes is safe because it comes from other sources and is treated. green priests -- p says it's water proms are just a series as its air pollution. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. . am yvonne man shift to cloud computing has been surging. a recent survey shows the market growing at 28% a year. it is already worth over $100 billion. our next guest runs workday, providing cloud-based applications. customers include netflix and hitachi.
9:45 pm
thank you for joining us. tell us what workday does and how the cloud is central to your day to day operations. >> thank you for having me on your show. 10 years ago, we started workday to reinvent the world of hr and financial applications, the back bone of the business software that runs many large companies in the world. we adopted the cloud model for several reasons. number one, dramatically reducing the cost of applications, number two able to keep the customers on the most modern version, and the vendor is responsible for that. number three, a consumer internet style experience to these applications. as a result, we've seen tremendous growth in many of the leading companies around the world like coca-cola and hewlett-packard and bank of america adopting this new model. rishaad: how does it actually
9:46 pm
work? corporate comes to you to use your cloud software, what are they get out of it? >> they are typically running products old software from other vendors. they run into some issues in terms of the modern capabilities required, and that not being in the software. they are looking for a better move allome to us, we their data and business processes into the cloud on to our platform. the customer will configure that platform for themselves, but we will run it for them in our data centers. given the economies of scale we haven't technology, we can reduce their cost by a 50% from what they're doing before and give them a much greater and more modern experience, including user interface and built-in analytics. rishaad: let's have a look at some of the things you offer.
9:47 pm
human capital management. what is that? hr, recruiting, learning, performance management, benefits, the full scope of the requirements needed to run a human resources organization for a large multinational. rishaad: right, you also do financial management as well. you have arizona state university, it netflix, life time fitness, too many to mention straightaway. yeah, we have had great success with human capital management. we are now viewed as the gold standard for that product line and are beginning to see the same success with financial management, that is the accounting backbone and planning and analytics backbone for the chief financial officers. in the same way we win after the
9:48 pm
human capital management, were doing the same with financial management, and we run a very high level of customer satisfaction, 98% customer satisfaction, and that is a big differentiator for most cloud solutions, able to deliver higher levels of customer success than the previous legacy products were able to. you are there in sydney at the moment, and it is really all about growing the asia pacific, you're fastest-growing market right now giving the base you are starting from. how quickly can you grow here? do you have a different way of approaching the customer here than stateside? we found iswhat that a multinational in the asia-pacific region things and acts like a multinational in the u.s. or a multinational based in europe. , lenovo, like brambles flextronics, nissan, toyota, they have the same issues that
9:49 pm
all global companies have, and so the approach is fairly consistent. forre building systems multinationals to help them manage their businesses across multiple geographies and we don't see action that much difference in geography to geography. something, with all the customers you have, what is the feeling you get when -- are they optimistic about what is happening in the world right now in your view? >> you know, i think it depends. i know the china data just came out. candidly, we had not seen any our world yet. we don't have a tremendous amount of exposure to china. i think generally people are still relatively optimistic. there is growth available in the so it, energy is cheap, allows for more commerce. we have not seen any change in that sentiment. if we had more dependency on
9:50 pm
china, we might see a different picture, but we don't at this point. rishaad: great talking to you. the chief executive of workday. we have to take a break. up next, facebook has changed the way 1.5 billion people have interacted with each other, but its next plans could be out of this world. ♪
9:51 pm
9:52 pm
rishaad: facebook has outlined a 10 year plan based on messenger bots and virtual reality. mark zuckerberg envisions artificially intelligent bots to do everything from sports updates to taxi bookings. here in san francisco on the edge of the san francisco bay,
9:53 pm
facebook having its f-eight congress. -- conference. a third of the people gathered are from outside the united states. thoseok talking to them companies and encouraging them to develop tools. now haveon users, and access to artificial intelligence, machine learning, and bots coming to messenger. >> today there is no revenue. the goal is to build delightful user experiences. heldally, we will monetization on the platform like all other platforms. the guy in charge of partnerships globally for the company's meeting with all kinds
9:54 pm
of customers from all over the world, and encouraging them to develop, use the tools that facebook has created so facebook remains at the center of the internet. >> 900 million people using the messenger platform. we are really excited about the rollout, traditional media companies figuring out how they can push content to people instantaneously. >> a lot going on for facebook, the company growing massively worldwide, internationally even faster than the u.s., a global platform so important to the company. rishaad: indeed, let's have a look at social media reaction. >> mark zuckerberg posted his speech on his casebook page. he was very passionate and took a long time to put it together. basically thatng -- many people and
9:55 pm
developing countries depend on technology to get out of poverty and develop their businesses. other users not quite getting their head around the concept of virtual reality and how you might have your television replaced by a mobile app. this person saying a little bit uncomfortable because the world that people already ignoring others and engrossed in their phones, while others are focusing onre you issues like virtual reality or messaging bots? what about focusing on clean energy instead as a way of changing the world, so deftly arrange of emotions. people on his facebook feed are commending him on his visionary plan and for how we communicate and connect with each other in the next 10 years. stay with social media and have a look at stephen hawking's. a million followers in half an hour.
9:56 pm
>> a lot of followers. this is a story we are covering in the next hour, so i will come back to you on that. if you have any thoughts, please send a tweet, and you are at @rishaadtv. rishaad: we will be looking at that one next. hawking attracting more than a million followers after he signed up for weibel. message was in chinese and talked about his first visit to china. he says he is hoping to share his work with chinese internet users. a quick snapshot of hong kong and shanghai, and up arrow start. seng.eed the hang coming up, chinese exports
9:57 pm
expected to have risen for the first time in nine months. we have the latest trade numbers when "trending business" returns. ♪
9:58 pm
.
9:59 pm
10:00 pm
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: the second liberian civil war which claimed hundreds of thousands of lives. now running at a theatre, focuses on the lives of five liberian women living through that struggle.

29 Views

info Stream Only

Uploaded by TV Archive on