tv Trending Business Bloomberg May 2, 2016 9:00pm-10:01pm EDT
rishaad: it is tuesday, may the third. this is trending business. i am rishaad salamat. we are going to take you to singapore to take a look at what we are watching. with japan on the break, asia-pacific stocks snap a four-day losing streak. it is also cut its dividends for the first time in seven years. the poor performance is partly blamed on rising charges. an official investigation into
the role it has played in the death of a student. the company is saying a healthy internet is the responsibility for all. follow me on twitter for all of the top stories. kong markets getting underway. singapore and malaysia getting online. let us get the pulse of the market. mind it isa, keep in getting the first jab at pmi. you have a bunch of earnings, china construction bank, securities. i will get more for you on that. in the meantime, have a look at dollar-yen. equities are on their way up. oil is seeing pressure despite dollar weakness. have a look at this. dollar-yen closing in on 106.
.02 -- that was the low so far. goldman sachs putting out a note for their clients. the gist of it is dollar-yen, near-term will continue to fall come the boj is forced to in and come in strong meaning more stimulus, not intervention. that is on the finance ministry. level right now. a lot of money is going into the japanese currency. we are looking at index futures. down 150 points. weakness isollar the issue. -- look at the euro, up above 115 for the first time since this summer. washigh of -- in august 115.12.
the rally there. aussie dollar is holding right now. 76.55. it is hard to call. the rba will be online in about two hours time. gold is doing this. 1300 -- $1300 yesterday. we are still up about .25%. we saw it drop yesterday after asia closed into new york. vietnam and japan. these markets are just opening up for the first time this week. .7% lead by the bank there. look at thee a bank, it is up just over 2% in a
lowestmarket despite the cash market in almost six years. paul, what is going on here? paul: the story of bad debt. as you mentioned earlier, bad 918 million up from the previous timeframe. that is behind the 24% drop in the profit. a big miss as well. analysts got 2.7%. not a great result. here is what the ceo had to say -- >> we are undertaking a significant rebalancing of our business to drive fundamental value improvement. we believe that the adjustment to our ratio to 65% provides a more conservative and sustainable base dividend per share.
paul: dropping down to $.80 as well. shane elliott saying the result is a challenging timeframe for banking. rishaad: you are there for the project later on. -- the budget later on. does the government have much wiggle room? paul: no, nor do they have much money. howreal question is just big is the deficit going to be. the forecast is about $35 billion. malcolm turnbull got this job in september. he rolled tony abbott. he argued the lack of economic direction. there is a lot of criticism at multiple terminal -- malcolm turnbull for dithering. seemost we are expecting to would be tax cuts for small to medium businesses.
and a bit more of an aggressive approach towards multinational tax avoidance. rishaad: a really busy day. the reserve bank will also be meeting. likely to bes are cut, you said a flat-out no. things have really changed since the inflation rate last week. paul: economists are divided. a lot of them are thinking that the week cpi, the first inflation in australia for eight years will make the rba cut today. on the other hand, all of the other indicators look pretty good. unemployment is strong. the growth rate, 3% annualized is looking pretty healthy as well. there is plenty of argument for holding off. and the political argument. gettingdoes not like involved in politics and with the budget here today and
possibly an election in july, some economists think they may well hold off or a couple more months before resuming easing. rishaad: thank you very much. tell you about what we will be looking at as we look ahead to that budget and the reserve banks decision. we want your opinion. use my handle. legal disputer taking place surrounding samsung. we have some of the other stories we're watching for you today. >> samsung shares rising. up up -- up fractionally due to the patent dispute. possible ban on some of its graphic chips. the news came hours after the international -- the u.s. international trade commission was going to announce its decision on the case.
a small number of patents to each other but there will be no cross licensing. ubiquitousing more as smart phones and tablets are relying on that processing power to stream movies and play complex video games. the chips are contract manufactured mostly in taiwan though it is an american company. processorses -- the are then put on the cards. a trade judge said earlier that the company and its customers infringed on a samsung patents. take a look at the shares now, it is rising with the first time in eight days. analyst beat expectations in the first quarter profit. southeast asia's largest bank rose 6% to $900 billion which is thanks to a rise in net interest income. margin which is
a gauge of lender profitability was also higher at one point 85%. compare that to 1.6 9% a year ago. amid an economic downturn. central banks had delivered various measures in a bid to reverse the decline at the rivals both reported lower profits. finally, in australia, and entrepreneur has come forward claiming he is the mysterious creator of the coin. some experts are already casting doubt. he identified himself as a inventor.of the this comes five months after he by media reports. he had the original encryption key for the first bitcoin transfer. but analysts say it is -- it does not definitively show that he had control of the first
stash. it is said to be worth $450 million. where that pile is and if he would sell it if he is in fact this person, that is key for the market. net worth.nd its it has proven to be volatile given its role in money laundering and prices have fluctuated quite a bit as well. rishaad: on our website, we are looking at chinese stock analysts and why they are among the world's worst. it is a cracking read. energylater, the u.s. secretary will be with us. investigation, an into the death of a student. ♪
headlines around the world. the chinese tycoon who spoke out against ever tighter controls on the media has been disciplined by the communist party. the retired property developer has a number of followers. was shut down after he criticized the president's assertion that the purpose of state media is to serve the party instead of the taxpayers. that fund the budget. tycoon has resigned from the upper house of parliament in the latest twist in his long-running debt saga. he was facing expulsion as part of a official attempts to force him to pay money. the u.k. and denies he is a defaulter. he has offered various sums to pay his debt. the u.s. cruise ship has docked
in cuba for the first time in almost 40 years. cheeringwas greeted by crowds as it arrived in havana from miami. 600 passengers signed up for the cruise. several cuban born passengers on board. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . 8% in new york. this is the chinese government is investigating if the paid advertising on the website is being linked to the death of a student. a sad storyted and about a 21-year-old computer science student in china who had a rare form of cancer. it is basically a soft tissue
cancer that affects around the joints and the shoulders. it is extremely rare. he went through traditional treatment for cancer including radiation and chemotherapy. it did not work. he searched online for alternative methods of treatment and he found a listing for him you know there are be -- immunotherapy. that listing was paid advertising in the search results. rishaad: questions are being raised by the medical authenticity. >> he went ahead and did the new treatment there be. the family paid about $31,000. it did not work. he passed away last month. there have been questions raised about whether the company properly vetted and verified it
that it gives priority in those listings because the company paid for one of the top search results. it is a question about whether the company complied with online regulations in china. that is why the cyberspace administration and the industry regulator are all jointly investigating. rishaad: it seems a bit of a surprise that the government is going after the company in this way. andhere is a perception, that is probably why the stock 8%.ew york plummeted about there is a perception that if the government is investigating you there are some political issues as well. that is why we have david riddell saying investors must be wary of this development because if it becomes clear that the fallen a of powerful politicians in beijing, this
could be the first of many attacks against the company. rishaad: we will be watching this one for a while. other news. john chen says margins will continue to fall across the smartphone industry. he is concerned about the overall growth of the industry. he said the company would exit the handset business if it could not make money. he says there is room to make acquisitions and there is still demand for blackberry phones. nicheserve a pretty good pocket where people are serious about security and productivity. i believe i can distinguish myself by being more secure. apple's losing streak is nearing historic levels. eight straight sessions that the company has posted disappointing earnings. 18 years ago.ened
more than $79 billion in market value has been erased in 18 sessions. it has not had a longer losing streak then nine days. pharmaceuticals is dropping as much as 30%. after criticisms from warren buffett who criticized the strategy. he said it is enormously flawed. he told a senate hearing last he was too aggressive as a leader. the stock has dropped 80% since its peak in august. hong kong started climbing last month but they failed to provide turnover. we have full analysis coming up next. ♪
markets were shut yesterday for labor day. unchanged. first trading day of the week. nine minutes away. it has been a time when stocks in hong kong has been on a tear. butrebound of 15 percent investors are not excited about that. let us have a look at these gains and what is behind them. shery: we are seeing the hang seng index, a solid rebound from the february low. 20have seen a breakthrough 16 hundred level from april 1. industrial output to new lows. estimates in march. investors are less concerned about a potential hard landing for china's economy. about thee talking average value of shares, that is a different story. volumes have not picked up despite stocks continuing to rebound. look at the turnover, 50 day
moving average. this has collapsed to the least in 1.5 years. since september 2014. investors are not very concerned that the improvement we saw in china's economic data in march will be able to be sustained. analysts now saying that this stock around the rebound will not be able to move further out. it is understandable because we have seen the official pmi data over the weekend missing estimates. not to mention that the hong kong faces global risks. a potential rate hike by the u.s. in june and a potential brexit in the same month and the fact is that this rebound we have seen on the hang seng index -- will it be led by industries that have problems of their own. take a look at the hang seng property index. outpaced the index by
about eight percentage points in the past three months that we are talking about a sector that him,eing declining towards falling retail rents, falling home prices. this is not good news card i want you to take a look at the hang seng index. then go tohat in and the member ranked returns. you can see from this that the top three performance on the hang seng index are oil producers. we are talking about our market that is massively oversupplied. are now sitting on the sidelines trying to figure out where the market is going. is the rebound we have seen being led by industries that have many problems. a longer-term stock rally will depend on the government allowing the economy to cool awn a bit to a rate, to
growth rate that is more sustainable. rishaad: thank you, there he much. is robbery -- ferrari raising its forecast, $918 million. 4% more than its previous -- previous projection. led by europe, the middle east, and africa. mitsubishi motors -- the fraud has hit another maker. the company halted sales of one of the models built by mitsubishi. total sales dropping 22% last week. before deciding on the future of their joint ventured. tumbled 5% in the tokyo session on monday. takata.irbag maker --
cars still under investigation. shares tumbled by the month in a month yesterday after nikkei news says investigators will expand the recall to include all cars not fitted with a deaf ain to -- defecant. california avoiding a possible ban on some of its graphic chips. regarding patents. intelligence technology litigation analyst filed this report from washington. >> the company has disclosed some of the terms. a lot of it is still confidential. the parties have basically agreed to drop all pending litigation. there were a number of different cases and patent challenges. all of that has been declared a cease-fire and they have agreed to cross license some of the patents that were at issue.
it is not a full patent portfolio cross license but they are agreeing to settle the dispute with respect to the select patents that were at issue in the case. in the short term, this eliminates the headline risk associated with the ongoing litigation. these pursuitsed in 2014 looking to generate some patent licensing revenue on its portfolio. samsung retaliated and responded by filing a number of counter suits and a pretty aggressive litigation maneuver. dispute behindle them. ultimately, the company was unsuccessful in getting any licensing dollars and a samsung was able to successfully deter any future monetization efforts that the company would be making. matt larson in washington. still ahead, what role should governments play in emerging
rishaad: a look at the top stories. chinese manufacturing and health health care stocks making gains on 1% last month and extending the 18 month high against the u.s. dollar with japan climbing from the lowest since april 12. ,nd, reversing early losses despite the lowest profit in almost six years with profit tumbling to over $2 billion.
that is less than analysts projections with a blowout in provisions. since 2009.rst time the mystery of who created the bitcoin may have been solved. has confirmed reports that named him as the founder. it has been verified by prominent members of the bit going community. however, not everybody is convinced and wright has not shown control. the open in shanghai and hong kong. it is pretty flat. gettingis what we are right now. we have a look at the index at 1%. obviously, we will get you more and wehang seng earnings
want to look at the casinos here. we are looking at some losses here. the shanghai composite is up with the markets having their first go. have a private gauge coming, at some point. also, this was news in late april that regulators are starting to crack down on speculation, when it comes to a lot of the secret funds in china. we're looking at the tables of some of these debt reforming contracts in china and there is a crackdown there. is stock i want to point out picc. opping thensurer dr most right now. a hefty stake in
the company. what are shares doing? they are down and can we get the shares of picc up? it is towards the lower end of the marketed range. now, look at the box here with adr up and we are getting signs this is a drop in revenue with cuts seeming to stabilize less april.pected in the drop in revenue is 10%. earnings, i mentioned that. hsbc coming out with the chinads today and construction is very interesting
and these stocks give you an accurate cross-section of what is happening in the industries with the construction back up half of 1%. markets, compared to this time last year, are not doing as well and the prophets nice,ugging along quite even though the shares are down. not a big gain. have a look at the three energy names in china and they are all down,. well. down, as a lot of the gains are actually down and this is obviously down across oil prices with west year contracts up over the , even with the softness.
rishaad: thank you. the meeting in japan, they pledge to energy investment in the oil market. my guest is one of the ministers and joining us is ernest. thank you for joining us. tell us about the overall vibe you have gotten and how willing people are to make an agreement. meeting is not aimed at the agreement. the agreement is aimed at scoping out work and continuing the activities that we started with energy security. the countries are very committed along these lines and we have a broad definition of energy security, including cyber security and we got into the clean energy agenda for the the paris since meetings on climate change last december. >> the thing is that most of the
members are looking at market forces and they believe in the market doing a lot of heavy lifting. how can they come and help there? >> we believe in market forces the privateve that sector, in the end, will make the best decisions to govern how prices evolve. certainly, right now, in the oil markets, there are no questions that we haven't overapply, relative to demand. oversupply,n relative to demand. there is a good chance that will work out of the system within a year. we have a large inventory. this remains the basics of the oil market and we think that the
market will take care of the price allocations. rishaad: the governments need to make it easier to secure supply, in some way. what can you do to facilitate that? that is what i am trying to get at. >> in the united states, as you know, the congress listed the export ba lastn december. we have been very active in creating new supplies and our from march went out -- in march. the export ofed a year and that is one third of the european use and the amount that qatar
exports. will be a player over the next several years. rishaad: as you mentioned, there is a glut with saudi arabia pumping and the dispute about freezing production. denigrated shale production. how badly hit has shale been? is no question that there are impacts in all forms of oil and gas production, in terms of companies cutting back specifically, 25%. uppinglity is, we were oil production and that has gone
down a bit now. natural gas, we continue to invision it going up, as productivity increases. certainly, the markets follow the price signals and this is historic. the fundamentals are certainly such that the supply and demand imbalance will work itself out, barring surprises, over the next year. intoad: how has the entry the international communities affected the oil market, in your view, and, how will it? has added since the agreement was put into effect and that has contributed to the 1.5 million barrel imbalance
that i referred to earlier. as new entries come in, like i ran, it suggests that they will add another 500,000 barrels a day and that will contribute to this. andnd is slowly going up up andld economy ticks that will increase demands and address the current imbalance. even when the imbalance goes away, let's say in a year or so, we will still be left with a large inventory to be worked down over time. rishaad: stay with us. the secretary, we will be back with him. ♪
rich: you are back with trending business and we continue our conversation. thank you for staying with us. let's talk a little bit about fighting for -- filing for bankruptcy last month and it called into question a lot of models of renewable energy companies. what went wrong and what can governments do to keep the model alive? perhaps, tweaking it a bit? all, i think that we should not read too much into what happens with one company. my understanding is, in this case, and i do not claim to be an expert, they were rather extended. wind,bles, solar, and they continue to be deployed at a rapid rate and the costs have
come down dramatically. we see this continuing and the agreement in paris, where you have every country in the world committing to significant reductions in emissions is going ofaccelerate the deployment the technologies. different businesses will have different business models and some will do better than others. this is not unusual. tois interesting to note that, if you go back into the early 20th century in the united states, there were 250 automobile manufacturers and it got down to about nine in a couple of decades. these are dynamic markets and different companies will perform in different ways with different models. bullishare extremely about the deployment of the technologies. in the united states, in the solar industry, there are 300,000 jobs and this is not a
small number. rishaad: the u.s. is also pledging to current commitments have lowere and we oil prices right now. the thing is, how will the u.s. meet the climate change goals, if you have this backdrop with the opportunity cost continuing thanoil and it is less going renewable. >> first of all, again, i will talk about the united states and looking at the facts. said, wind ands solar continue to rise rapidly as a result of policy, investments tax credits extended recently and the dramatic cost technologies.the
low oil prices, first of all, again, in our economy, there is no substitution between oil and electricity-generating technologies, like wind and solar. that over the, share10 years, the coal h has dropped to one third, driven by low natural gas prices and it is responsible for a reduction in co2 emissions. we are on track with our 17% reduction by 2020 and we will have to pick up the pace even more to reach our goals. policiesn, there are that are supporting the move to a lower carbon future and i have to emphasize the cost reductions
are immense. in the united states, for installed wind and solar, it has yearsd in the last 6-7 and the cost of lighting has dropped 90% in that time frame. we need to pay attention to the technology that are cost-competitive and have dropped through innovation and through the manufacturing learning process of producing more. rishaad: thank you so much for joining us. the u.s. secretary of energy. manufacturing pmi for april. >> a little weaker than march. it was a pop up off of the holiday and april moderated two 49.4 and the consensus estimate
was 49.8. a little bit below. this is still an improvement, generally, over the last year or so, because of the manufacturing pmi that is below 50 and indicating more pessimism. mostly private-sector businesses , whereas the official pmi is a larger survey and it tends to be more pessimistic, because, let's face it, the private enterprises get less favorable treatment and they tend to be more bearish and that is what we are seeing. so, i can safely say that, yes, this is showing, as the official pmi data, some stability. we have not gotten above 50 on private-sector -- in the private sector.
>> welcome back. it is 9:50 here in hong kong. the indian government has sent air force helicopters and workers to find -- to fight forest fires. dozens of fires are burning and officials say that tiger reserves are threatened. the flames come following two years of below average monsoon rain. the government is investigating how the fire started. ordered an judge has
72 hour block on a messenger service for failing to turn over in a drug- data trafficking investigation. the judge said that phone companies that fail to comply will be fined. tsapp says they do not have the him -- the information the investigators want. of the late superstar, prince. he left no known will. his property holdings in minnesota alone are valued at $27 million. he is thought to have recorded thousands of unreleased pieces. powered by over 2400 journalists
around the world, this is bloomberg news. rishaad: new-home sales grew annualized and our next guest runs over the biggest crowdfunding platforms. joining us now is roderigo. roderigo, thank you for joining us. how does it work? >> good morning and it is a pleasure to be here. crowdfunding is about access, you know? the jobs act enabled access. and, one of those offerings is what we do, commercial real estate. for the first time in 80 years, investors have access to investors that were privy to larger investors.
rishaad: you act like an aggregator, like most crowdfunding sites. how did you come up with this idea? in 2007, wectors, saw how larger investors in commercial real estate assets generated cash flow in the united states and the contradiction with that the public did not have access to the assets. by law, they could not invest. there cannot be open solicitation for private offerings. changed in 2013 and it enabled access to smaller investors, which is how we identified the assets. and, the other factor was that i am originally from columbia.
i have been in this space for 20 years and, in columbia, there was not financing and developers started with friends and family to develop projects. but, there was no financing and that is how this came about. it is heavily regulated by the government, who created this intermediary fiduciary entity that effectively regulates. so, we exported the model to the united states and it has been very successful, because people who have access to the assets, it is unlike ever before. bogota. you are in >> correct. we are in new york and columbia, bogota.
rishaad: looking elsewhere? >> we are analyzing different markets. if you think about it, this is a great opportunity, because private offerings are not exclusive to a few individuals anymore. i think that legislation in other countries will follow suit. for now, we are focused in the united states with a huge demand for assets and volatility with what we are going through right now in the world and we have presence in 25 countries with the demand growing. rishaad: what can an investor hope for, and returns. -- in returns? >> it is different in the u.s. for an50,000
international investor and $20,000 for a u.s. investor. the returns can be north of 12%-14%, combining cash flow and appreciation of assets. rishaad: do you own part of the asset? >> you do. you do. share andpro rata everything is handled transparently by administrators. they make sure documents are effectuated, relative to your investment. rishaad: thank you for joining us there. looking at crowdfunding in real estate and taking the model to new york. let's to you what you have coming up next. it may have come to an end.
this is opportunity. >> innovation, technology, the future of business, bloomberg west. announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with our ongoing coverage of the middle east. vice president joe biden traveled to iraq yesterday, his first trip to the country in five years. the surprise visit comes at a moment of vertical turmoil in baghdad where prime minister haider al-abadi is struggling to stay in office. it also raises concerns in the fight about isis. tony is nicholas burns, a professor at the harvard kennedy school, previously under secretary of state for political affairs.