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tv   Countdown  Bloomberg  April 19, 2016 1:00am-2:31am EDT

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>> fueled by commodities, equities jumped. financial markets are wrong, the opinion of the member who called expectations pessimistic. the sovereign fund wants to get control of the chinese unit.
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>> welcome to countdown. it is 6:00 here. it should be hot footed. >> we have the economy coming around and the estimate was for 12.3. , in terms ofwn and percentage, it rose and it was on a constant basis and this is what they confirmed for 2016. of course they are trying to balance the scale and there are lung cancer drugs we want to write down. sales and theical diagnostic side of the business said the first quarter came in
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at -- thank issue a composite number and there is the overall is thees there and it numbers later on with a conversation. will be on the program later. we have seen a really solid 3.5% and they are doing nicely. they are getting higher. piecere is a bolstering
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drop innow kuwait has a production and will caught the with emergingate s&p'ss so far and the rally. again, the question about the oil commodities and the foreign exchange plays into the equity stories. bit furtherittle and it did not fall off a egg cliff. this is where we are. we are below 40 and we saw oil prices with a kuwait story putting a floor under the things. is the longest losing streak.
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supported and it is around the commodity markets. change and beay at a five month high. the dollar yen is at a 40 year helicopter. it will >> you like that? >> it will rain. it was four minutes past six in london. good morning, rich. >> good luck. is commodity that is
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appropriate with inflation. the meeting reassured strength would complicate a rebalancing. see adopted a wait and attitude with the change. and it was trimmed to 1.2%. there was an address to the nation after the house of congress voted on putting her in trial and she says she did nothing wrong. the people approve it and the president signs it. after signing, experts were consulted. with full knowledge, i have a
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clean conscience. >> i'm sure they know it. >> trying to get control of the fast food chain. -- and pizza hut could value a bank of japan board for nod.ion has been given a dojchange comes as the comes at home and abroad.
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mark carney will step in with a referendumport if a leads to the exits. round withe a fresh a parliamentary committee later. in 150 newseveryday bureaus. terminal news. >> thanks for that. our man standing by. we have more comments from the fed. how does it translate? >> looks better than yesterday. good morning. andre following crude
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the nikkeiquity here is of and rebounding and we saw that yesterday with a triple withy and it was stronger the weaker yen. oil producers are who we are china is swinging with the composite and it is half of 1%. andrates were unchanged that was no surprise. yuan in the spots
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and there are warring signs that it may be too much. we saw the five-month high. ands take a look at the yen we see it weakening. this is where we stand and it start a resurgence and we expect stevens in new york later today. today, we are seeing strength with rates unchanged and the
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moderate growth and it could complicate things when the economy shifts away from mining. the market outlook for interest rates is dovish. >> the economy is fundamentally ratesand we will have the that would make sense. added theing member increases would risk inflation. this is our guest, the economist. say theyoting and they
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want to draw the dots and reset a tone. and the market does not believe that. >> the market signals a rate hike and another one later in the year that is important to and thisn the economy is what they are pointing to. andrates will be moving up the fed does not want to see the accommodative monetary policy. dovish.re the spectrum.s of
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>> we do not think the rates will rise and we see a chance of a rate cut. expansion in the business cycle is very mature and we're seeing signs of expensive andh is over the last few years, it is clear, with consumer spending. were 95ast cycles this innd you can put context of inflation. inflation and the inflation.faces
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>> absolutely. inflation forthe why the federal reserve needs to health care costs as a we think factors fade year progresses with earnings staying sub dude. gloomy and sales cars being sold are economy infor the recent years. not think it continues and we have seen it rising as a source of growth. and we doty strong
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not believe this will stay strong. ande are signs of stresses with are signs of stress loans. a feature of is the economy that will not be supported. about globalously this is critically important. this is closely aligned with the fed chair.
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the dollar has had a nice drift lower. does the trend continue? >> the outlooks are evidence with speaker comments recently across the board and they points to concerns of china and instability in the markets with some better data and china and we do not think this is a main support for the economy and it is clearly down to do mastic factors and what is happening. we see the momentum will fade and the dollar was a source of concern. >> we see that on the chart. >> that will give confidence and the u.s. is not export-driven.
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and --own to consumer investment. >> thank you. >> let's get you set up for the day ahead. >> we have a meeting later in the week and we will get the euro area at 9:00 today. >> there is a snapshot of the season and the earnings rolls on with goldman sachs publishing first-quarter numbers. about clinton facing sanders and donald trump ted cruzoff against and john kasich. >> we will dig into estimates beating numbers.
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this will take us into the next part of the show.
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foggycome back on a afternoon in hong kong. you are watching in london. we have a business flash. >> thanks. first-quarter sales have risen climbing andes are thereg analyst estimates and we will speak to a ceo. holdings plan a
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first-round offer for yahoo! and they consider a tax-free ofnsaction with a subsidiary yahoo!. a blood testing startup with criminal investigations claiming it will my work. workingsays they are closely with the probes. netflix is having trouble with scriber growth and they expect fewerational customers, than estimated. the forecast for the next quarter fell show i of the analyst projections and that is the bloomberg business flash. >> thank you.
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back on then is banks and they are beating incomes estimates with trading shrinking. morning and take us through the numbers. >> we are starting with fixed income with the worst quarter since taking over in 2010 and we look at return with profitability and it dropped from a year earlier and the level was called unacceptable and he said he was standing by the target. tradings a drop in revenue that was smaller than some six acted and profit fell
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in the first quarter with this being a beats and what was done cost-cutting to compensate and they cut compensation and that was a big surprise in the earnings. about cost-cutting expects to follow stoppingthey are not -- starting of what we have been hearing is that the company is beginning to dismiss a support staff and unlessng entertainment,
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it serves. and saves compensation. whether they offset and analysts are estimating that the .xpenses may be the lowest >> thank you for joining us. themes has been cost-cutting in the sector and the other has been exposure with commodities space and this is where we thought we would see the banks differentiate andselves in that sector how do you see the default rates developing with the rest of the
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economy? issue forn astitutions and we have seen lot of pressure from the kleins theil prices and interesting thing is when the is prices rise and our view that this will be quite typical and they are no longer there. is going to be the likely they'll in the coffin for many. >> we have the highest levels thee 2009 and this is energy sector.
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36 lenders have pulled back oil companies and you have a cautious federal reserve and earnings under pressure and you now have a real accelerator of lending to the system and that backdrop is inauspicious. >> not very auspicious and we think there are implications and we look at oil production and it peak and aith a -- t of a decline where >> we are looking for 1% growth the consumers, we think, are pulling back.
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>> he thinks you are quite fair. >> a little bit on a different trajectory. great to have you with us. corporate, chinese bond market starting to unravel. we will dig into the details on the market next on countdown.
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>> it is 1:30 right now. >> breaking news. goal of margins in the previous year and they confirm a target's with revenue beat thed they
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estimates and the estimates were 1.3% and it is lighter with ahead ofalue up and andestimates in the union shy and confirming that operating margin. growth grewic sales in north america. this will be a frontline and by the growth was driven was -- they caution
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to reiterate the target and reduce dairy sales. go to the first word news. >> thank you. theral banks say accommodative policy is theopriate and they confirm mining. a five-month high with an andtude to hold record lows they lowered estimates before the inflation outlook. trimmed. says that shedent
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is facing a coup, addressing the nation today after they voted in favor to put her on trial. she reiterates that she has done nothing wrong. and,e president signs this after the signing, the legal experts were consulted and, i have a clean conscience that did not do anything illegal and know.is they all chain popular fast food in the country and china investment expressed interest in 7000 kfc across the nation.
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the administration has revealed she wouldin june and be the only woman on the board with a strategy generating controversy at home and abroad. economies -- economists say that mark carney will have and whatn with support is less clear is a shape this response would take later today. we have 150 news bureau with 2400 journalists and this is bloomberg news. you can find more stories at our website.
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>> thank you. here.check the markets >> i start with the oil and it withar 40 dollars a barrel after,ipping yesterday of course, the failed talks with this unchanged after a strike in the fourtht biggest producer. we'll look at other markets and highest levels and it is interesting to be doing that, despite comments. we have to look at the korean won.
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and it wasate change the best move among the currencies today with the yen getting weaker against the dollar and the context behind slid with thist and it has been a source of slump in exports and it isrength interesting to keep an eye on this going forward and they jumped the most in a month -- in a month. >> thank you. let's talk about china. inhave the issues of debt
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the private sector and it is a big concern. let's bring in a few it's. what we have here is a selling of junk bonds. and there is real pressure. it is a real pressure. the backdrop is overcapacity. >> everybody is aware of the capacity. they are a leverage report and how do you deal with this?
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realize is thes and there areed positive signs. and there is a new part of the isnomy service sector and it a fair pace. story, theyverage are standing by for us. it is good to have you on the program with the corporate bond yields taking on debt and servicing debt. >> good morning. the chinese government has been
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trying hard to lower funding costs with the economy relying more on that. up,ond yields are going they will face higher funding costs and they need to the aware a lot at stake. a lot of it comes down to cash their is a and critically important issue here. there is data about the chinesewith
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non-financial companies and sectors face more failures with oil, gas, and coal companies. have defaults in the commodity sector? see this likely to fail material a building it will beow and followed. >> thank you so much for the details behind the corporate stories. we were just touching on this. at the risk from economic point of view, put it
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have we faded us below the mark? and it has totant the world a risk for economy with a view that is are looking better. signs of the pickup and asset investments picking up got pocketsu have of rising unemployment and labor markets are in good shapes. this and they are and doto move to growth
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you think they have that about right? they have the answer to the question, it seems. >> transitions are difficult and they make it. they make sure it slows to overcapacity issues and i think they have a good commitment to andgrowth around that level some policies are delivering results. but thank you.
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>> back with a bang and a multibillion-dollar sale. what else would you expect?
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>> welcome back to countdown in the flash.t's get >> thank you. rose andrter sales were fueled by breast cancer and on theead there move will speak to the chief executive at 7:45 this morning. this is digital of the former yellow pages and is a
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first-round offer for those familiar with goldman sachs and they may consider a tax-free transaction with a subsidiary tpg.ahoo!, including hasexclusive club designated for the bank of new york and it is the first since 2014 and a rush is for 2008 and feet.emain below the 1988 there is robust production numbers with an increase of 84 tons and numbers in line with climbing in the spot overnight. after criminal
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investigations with claims that technology may not work. the company says they are cooperating fully with the probes and netflixes tumbling after the subscriber growth outside of the u.s. and they expect to add the customers and estimated. looking and seeing a drop will share prices and the forecasts projections and that is the business flash. back to you in london. >> thank you very much. $15 billion of from the the isolation
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global bond markets. strategys the credit and we are joined now. what a story. this is the size and scope of the number. this is a lot for the emerging markets. there is the key thing of economic and financial security given in the short-term and the returns to the bond markets and a reflection for the underlying there aree yield and the two group and it hits a sweet spot and hopefully shores of the macro
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financials. percent.a yield of 7.5 what is the yield with ratings? >> this will give you the whole list. >> you say this is the >> a rating agency came out and, if you take this and put it into the. group, as far as the pricing is concerned, there are questions out there on the piece of paper maturityuestion is the and on the bond. the latest one is 2014.
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there are memories of default. >> he spoke to investors who heart. was warming the there will be appetites at the yield. >> some of us are still around and -- >> you channeled the default. the pricing is attractive and people clamor for it. the question is the long-term conviction. republic has and 90.
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>> are you going to read all this >> intimate -- it depends on how strapped for time we are. >> we have that story around argentina. >> they said the monetary fund must remain. doubts onls expressed a surplus target. >> we need them on board with the part of the deal that was set last year and they are really convinced they cannot and must not do. >> speaking of this, the of theed membership
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european union. >> on do not want this and we need a nutty kingdom this is what we are supporting. now on thisd issue. how is it best to prepare oneself? >> they are asking about the broader implications. aftermath, the bank of england is helpful. there are signs that investment is slowing and business
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decisions are delayed ahead of the vote and they flagged the volatility in the event of the vote on the 23rd. and it isa votes fairly logical. what if we wake up and we votes to leave the european union with cutting interest rates and and we votes some for this, what is the risk we go to the negative rates? it is hypothetical. and does this take us closer to negative? >> probably. know and another thing
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to remember is that we are in the european union and it is likely to come through the uncertainty. >> if you listen, they will kill. >> and may have been. >> hopefully, it was metaphorical and it is clear that businesses are holding back and spirits are getting dampened ahead of the votes and it may be a case of animal spirits staying subdued and the economy could stayand the bank would slowed and, if inflation stays low, that is something monetary policy members talk about.
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>> you talk about the negative rates and the things on the agenda with not much expectation to see a change in the interest rates and we did another survey and most economists are looking to september for big action. moveshink that the big were made last month and we will look for interesting comments and what the broader implications would be leaving the european union and there may be details of the corporate bonds and how much will go in. i am not sure that what they have done will bring inflation back to target and we think they will need to do more and september will be when it is happening.
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>> thank you. >> ok. futures are set to open lower and, after morgan stanley, what can we expect from goldman? theme andtting is a we will see what they have to say later. we are taking a short break.
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>> quit his job and hitting a 10 month. withis the opinion expectations pessimistic and there is a hunger with getting units. of the chinese
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>> you are welcome. let's get to the corporate delivery and think about forness with this estimate 6.2 billion and it was below with adjusted operating profits blissful hundred 80 million pounds. thisuch sterling and week plays in will go forward and this is the first part -- first sales and it gets more than half from the business outside with a tough line and the dividend and
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withbeat the estimates what we had so far. estimates and that and we have a rally on the way. is.s and paris and, there are premium brands and they acquired some of the operations. as we getls on these
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through the morning with futures center ice and some corporate's doing better and he votes on the federal market committee. oil has a kind of floor. moves andcouple of the question is what happens up the tradingis in and we started back with is theion down and it emerging markets going higher and funding and floor. zealand is in the new dollar is rocking. speed.you up to
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good day. >> they say the policy is andopriate and the meaning they reaffirms they'd complicated a rebalancing away from mining. bank adoptedntral a wait and see attitude at a record low and they lower their 3% with for growth from the inflation outlook trend. the president says she will fight the moves to impeach and repeated she feels like she is facing a crew after they voted to put her on trial in the senate and she reiterated she did nothing wrong.
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>> after they approve it, the president signs this and, after signing, all experts were consulted and, with a full knowledge of what i signed, i have a clear conscience and it is worse that they own though this and they all want to know. theanted to get control of fast food chain. express a stake eateries across the themn with a deal putting between $7 million and eight billion dollars. they bank of japan board position that becomes vacant. there is a nod and she will be
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the only woman on the board after march. the negative rate strategy generates controversy at home and abroad inflation far from a target. carneysts say that mark will have to step in with a form of support with a referendum leading to an exit. what is unclear is a shape this could take in a parliamentary committee. global news powered by journalists and news bureaus around the world and you can find more stories. >> thank you for the roundup most of the federal reserve bank of austin president says that the market outlook for interest rates are dovish. once the economy is strong and
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fundamentally sound and we will have conditions where raising rates faster would make sense. >> speaking in connecticut, the member added that a shallow path of increases risks inflation. joining me from the trading floor is a senior strategist and it is great to have you. blinkers and they were a little bit dovish. whoe is not the only member is a little bit more hawkish. there have been members and not all of them are voting. they say the interest rate hikes why thely and it is forthcoming federal reserve .eeting will be interesting
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nobody expects him to move the policy and it will be interesting to see if we get many dissenting. move. a policy if we get more next week, the market looks at june seriously as a live meeting and we could have market movement. if the market begins to have a possibility with interest rate hikes, it is likely we will get strength. >> i am pulling up my favorite function. you say that it is time for us to reset with a little bit more to send out there. 13.7% and that is a frisky move that you are calling for. what will it take to make this more live. -- live?
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>> you look at the data and it was disappointing and the data in the united states is good and janet yellen was quite positive about the domestic demand and the u.s. is a closed economy and then we look at the international headwinds and there seems to be less concern with china and we think china will raise their head again with lots of worrisome figures later in the year and it does seem that it died down. april will be interesting, just to see. the market spent a year reducing positions and how much further will it reduce? whether or not you think it will
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reduce, the fed is the only bank that can raise interest rates. everyone else will stay pat. >> let's just talk about that morning. you have the new zealand dollar onng higher and it is based production dropping and it does not sound like they do not have -- like they have the house in order and you see commodity currencies. are you a buyer of that? they warn on currency. and am a little bit worried they have the recent months and it is not clear. their husband better domestics with rates coming down and that is encouraging and you see wage
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growth flat and we lost service sector jobs and there is no wage demand and domestic tax revenues are down on the back of commodity exports coming andugh and you had that there could be a danger of withg credit ratings concerns. anybody starts to deteriorate , i think there is a chance for a cuts and i am quite wary about buying the dollar. >> a great moment to move is the peripherals around the geography of china and that is all based
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and, if they are taken seriously and we take the rate hikes, and throws trades into a different perspective. >> you are right and there is a and this could change a ball game for emerging markets and putback more risk out there and change the game for china. issider what it does and it perhaps good and they say this has more scope. think about the dollar strengthening and they do not want that and, if that is what lot of thechanges a
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central banks. >> there is a central bank driving the bus and a lady at the front. we will recap breaking headlines across the terminal and this make sure the deal goes through. businesses andn brand families. related businesses in italy, the netherlands, and internationally, it is ofditional on the closing the acquisitions. that and let'sn talk about the banks.
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morgan stanley beats profit with revenue shrinking. we have the managing editor for mea in hong kong joining and, if you don't have any south,and it all goes you get the short-term solution in. >> whatever he bank is doing citigroupand there is taking a big ask to the costs and revenue goes down and profit is down and you have to do and that is what everybody is doing. cuts ine more cost
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store. >> even the strong will get withgh the cost cuts here a backdrop and fundamental restructuring with the story different. we talk about the cost-cutting falloldman is expected to and this is aggressive. what can we expect? , there are about andmbark on a deep cost cut they are usually running a lean operation. going big on the cost says what they expect.
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they serve institutional clients takeretail coming and they to think they have to get out they areosts and hard-nosed about expenses and things like that. the ceo thinks they could take more. a i will give money for a goldman employee turning right on the airplane instead of left. economy.ly i just have not met any. up next, investors are not happy. describe numbers and growth forecasts.
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>> futures indicated hire with andus and it is london earnings season underway in and coryith a glimpse johnson with this report. reporting earnings and different companies with results earnings and revenue growth seems to have scriber growth onlyraising pricing and
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and a million next quarter hugeontent costs remain with a different company, ibm, it making it simple and makes it hard. though it was a bit of a they have 16 quarters there is a mess with business continuing to shrink and numbers not looking very strong for the once-mighty this.y and kicking off
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and, if get into this you do find the concept, i would say they have it off. it and reversed devastating earthquakes struck in japan and we see that it is itse to a session high and saw a reversal and some gains someboosting in stocks and sought a rebound with shanghai stocksheir thing and ended up because of oil prices. reaction andjerk
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we are seeing oil and gas of with consumer discretionary of and we talk about a change in seeingsion and we are friends at $43 and it helps producers. take a look at the end of the soaring andes are it helps with first quarter production and it is boosting oil producers across the board here in asia and they are all seeing games this afternoon.
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and they will carry through in the session with them and a nice rally is on the way. let's go to the guest. thank you for staying. rally and that was when they last met with the explosion of stimulus from the banks and with the and lending euro rallying and trainers are short on the currency. not what they want to see. the crosses. on
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you think we're reaching top evaluations? >> i think the positioning has a and it was ah this crucial time when they first we saw the euro was weakening and the dollar was strengthening and things started to change in positions and got opposition'sack with a points with the euro and wereollar back where they and i think it is significant, because the euro could become more sensitive and we may possibly have it with further
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easing today. >> as you said, it could certainly shift. carney speaking later today and they said that more stimulus will come from the bank leaveland and we voted to the eurozone. thatlose are ways to scenario in the united kingdom? >> i do not think that we are that close. about the long and, it was the bottom
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there are typical profits with negative rates. from that point of view, i do not think it is where they want to go in the bank of japan is testing the waters. >> thank you very much. higher equity markets and oil with a run over 1%. this is it for me. back tomorrow.
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