Skip to main content

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

9:00 pm
>> this is trending business. salamat. ad we are going to be live in shanghai. in sydney, here's a look at what we are watching. trade, the bigto losers, stock now losing 14%. name at the top of the succeeding glenn stevens in
9:01 pm
september. at least policy. bitcoin inventor is backtracking. he had proof, but feels he is not strong enough to reveal it. he blogged, i can only say i am sorry, and goodbye. let me know what you think. don't forget to thank the #trending business. >> entering the weekend, we are looking at an eight straight day of losses for asian stocks. japan coming online, a lot of pent-up pressure and it comes to selling. downsides across the region. john by 7/10 of 1%. focusing. of decline, the longest losing streak in over 30 months, i believe taiwan
9:02 pm
down to tons of 1%. -- ri'llock off, down overall, it is a down day. , down also seeing losses by .3%. we are hanging on to most of those gains that we have seen in the last few days. solid dollar gains. these are the movers. is coming out over the last few days of the number of airbag recalls in the u.s. market. more than doubling, an additional 40 million recalls from the national traffic safety administration. hit aata -- takata did new low. the stock is down by close to the last year.
9:03 pm
other reports are coming through saying there are two additional deaths related to the faulty airbags, one in malaysia, in april and another this month. honda up by 1.5%. the company will resume close to the earthquake region. -- automakers are doing ok. sharp diving by a .5%. we did see losses of as much as 10%. the company -- the nikkei reporting loss of about ¥300 billion. that would be almost double what we had been expecting. and reports that sharp will be trying to a point of president. restructuring. the continuity --
9:04 pm
olympus, down 4.5%. the relentless rally in the japanese currency continuing to weigh on their bottom line. beverage is up by a percent the most since lifting. up 23%. just in time for the weekend. gainers we are seeing. consumers seeme to be a live and well. rising above 4%. posting better than expected sales numbers. they are up to a lot of good right now. at least according to the investors who got a little bit of a up up in the stock overnight after results which
9:05 pm
came out before the open on wall street overnight. defying thecally slowing pace of growth in china. as a proxy for chinese consumer spending. alibaba posted a better than forecast 39% rise in sales in the fiscal fourth quarter. the consensus estimate was for a rise of 33%. and a sales milestone with more than 3 trillion yuan. net income came in a little bit below forecast but it is still representing an 85% jump over a year ago to 814 million dollars. sales growth, a key catalyst to get shares out of the mud. 4% overnightging after having lost more than a third of its value from a peak of $120. it has been languishing for the last year and a half. this next chart shows what investors have been looking for
9:06 pm
and that is a resumption of rising year-over-year revenue growth. this 39% increase in the last quarter represents. that is what investors have been looking for. alibaba likes to highlight the estimate -- estimated $4.6 trillion worth of savings held by chinese households as a key driver in spending and growth at alibaba. he continues to invest in user growth. allie pay had a net loss in the quarter what do mostly to increased spending on marketing to get more customers. spur ang pushes helped 21% rise in active users underpinning a 41% jump in revenue. their platforms. on the enterprise front, cloud computing revenue tripled and consumer, mobile
9:07 pm
shopping also nearly tripled and now accounts for 63% of sales. a big reason why jack ma is pushing services to the countryside where more rural get on the web be a mobile services. alibaba is prepared to continue investing in high potential businesses that are highly strategic to alibaba and he entertainment,al local services, and international expansion as the priorities. look at more detailed that during the course of the show. we do value your opinion, please share your thoughts. youth might handle. australia will have a new bosses for their reserved -- a new boss for their reserved bank. hall, -- paul what will philip
9:08 pm
bring to the job. >> he has some useful credentials. he has been the deputy since 2012 and he has written a number of papers in the past on the role of central banks in low-inflation environment. that will be very useful experience because that is what we have here in australia right now. we had our first deflationary cpi, the first in eight years. the first governor in 40 years who will not inherit an inflation problem. he also has the least ammunition of any of his predecessors with the cash rate already at a record low. is scott morrison making the confirmation announcement of parliament. >> he brings a wealth of knowledge and experience to governor, having served as deputy says 2012. publishing on a wide range of issues. he has had a three decade career
9:09 pm
with the rba. paul: this will bring the curtain down on the glenn stevens era. saidutgoing glenn stevens of philip lowe he is the job. let us take a look at some of the other stories. have a look at an australian bank that makes two thirds of its money overseas. yvonne: macquarie shares, has seen a rise in its shares. 29% jump in full gear profits. net income number rose to a record $1.5 billion for the year that ended in march. this is because of a boost from what the business was relying on which was asset management and lending units. s to expand the business and shield the firm's
9:10 pm
earnings from trading. he is gaining from investors there's for assets with stable yields. the bank faces some challenges from rising defaults on rising -- on mortgages and the strengthening aussie dollar. about $2.40.d for looking ahead to the u.s. payroll later today, markets will be watching closely to see if the jobs machine remains well tuned and running. april's report signals it will stay that way with employers forecasting to add 200,000 jobs. the jobless rate is expected to 4.9% which isto close to the feds definition of full employment. the data will provide some indication as to how well the
9:11 pm
economy is performing after the weakest quarter in two years. we also got jobless claims numbers, an increase to a five-week high last month. we will see how that all digest. yes i had a lot of fed commentary this week. the latest comes from the st. louis fed chief. he joined in the conversation and set a june from oc meeting is still a live one and the atlanta fed boss says he does not support shifting from the feds 2% inflation record. and may not be able to stomach the yen strength that much longer. the prime minister singh he is ready to respond to excessive currency moves if needed going so far as to say he make raise the issue at the upcoming g-7 leaders meeting in japan this month. he says the exchange rate must be they lysed and japan would carefully watch and respond to those movements as necessary. the weaker yen has been a linchpin of his program to stoke
9:12 pm
growth and exit deflation and the yen appreciation of recent has led to his elation that the government may consider intervention to support exporters. 11% this year. in rally that the bank of japan governor warned this week risks harming the japanese economy. rishaad: just check out our website. managerst hedge fund and how they seem to be losing their swaggers. are going through some consternation, withdrawing $16 billion in six months. it is a good read. later in the program, we are finding out what reforms if any comes out of the north korean workers congress. what slow down -- alibaba's latest results showing japanese consumers -- chinese consumers still waiting -- still willing to spend. ♪
9:13 pm
9:14 pm
9:15 pm
tohaad: we are going alibaba, defining the slowdown in china. 39% surge in revenue. -- 33% was what analysts expected. let us see if alibaba can innovate and attract new shoppers. the research director. how did you interpret these results? >> alibaba has been doing quite well in china by catering to the local consumer demand and also expanding to the overseas market in terms of going into more international markets and also to anchoring the cross-border commerce so chinese consumers can get access to a lot of products from overseas. beenth fronts, they have
9:16 pm
doing quite well. and also, domestically, they have been trying to further penetrate into the rural markets which are the last penetrated area for commerce activities. they are setting up a lot of working stations to help farmers to sell directly to the consumers as well as to have them be able to buy whatever they need in order to support their firming business. on both fronts, alibaba has been doing the right things, helping their business performance. rishaad: what are they doing well from your point of view? what do they need to improve on? the company named the full initiatives which is cross-border commerce, international expansion, and rural penetration and majestic. they should keep working on those fronts.
9:17 pm
there are a lot of other opportunities. probably, there are too many on the horizon so the company cannot cater to all of those at once. one potential area down the road is them to investigate transactions which accounted for the majority of e-commerce markets. alibaba's majority of investments have focused on the markets. they are still leaving opportunities or money on the table by not focusing or b2besting too much on the markets. fourad: you have the big in the silicon valley, facebook, amazon, netflix, and google. what would it take for alibaba to join those?
9:18 pm
it should be powerful. i think so far alibaba has predominately focused on the chinese market. as widely present on the worldwide markets as the big four. i think at this point, it is probably not alibaba's intention be ranked among the top four or the top five and they are still focusing on existing business and expanding into more markets. they are focusing on their existing business rather than worrying about their ranking. rishaad: someone pointed out to a basisit trades on
9:19 pm
similar to google but it grows twice as fast. is the share value severely undervalued? can't be -- if you look at the chinese markets alone, today, only half of the population is online. even a smaller portion of that population is doing online shopping. if the online population further increased to 60% or 70%, and the online shopping population is further penetrated, that would quite ae into substantial increase in volume for alibaba. a still have quite a bit of growth potential. that is why they have not been as aggressive in expanding into international markets as of today. i think that is something we expect to see them doing and focusing on quite aggressively
9:20 pm
in the next stage. rishaad: great talking to you. we're going to have a look at some of the stories making headlines. 28 people killed in an airstrike on a refugee camp in the area. -- rebel held red territory. 2000 displaced people. it is unknown who ordered the attack. alliedere no u.s. or warplanes operating in that area at the time. speaker paul ryan is the latest senior republican to distance himself from donald trump. more would have to be done to unite the party before he would consider and endorsements. endorsements. president bush and president
9:21 pm
bush said they would not offer their backing. if donald trump becomes president and delivers on what he says which is a big question mark, you are talking about a market on fire. he is going to spend money fiscally and he is going to have debt coming on the past. -- on the path. rishaad: singapore would reportedly spent $1.7 billion ailing defense infrastructure in australia. queens land would then be used to train singaporean personnel each year. australia would ease restrictions on investments and travel from singapore. have 150 euros around the world. -- bureaus around the world. runner in the front the philippine elections have that has a good record on crime-fighting but not on
9:22 pm
economics. we look if the affects on the peso and on bonds. ♪
9:23 pm
9:24 pm
we're back with "trending business." the philippines counting down to crucial elections this weekend. a lot is at stake, that is an understatement. it is a hotly contested presidency. the local markets are not taking any risk. man who someut a people say is trumping donald trump in the controversy stakes. david: to make things simple, the comparison with mr. donald trump -- when the philippine front runner says something controversial, his poll numbers do not go down and that brings us to where we are at the
9:25 pm
moment. since polls have shown him being ismally in the lead, it interesting to see how financial markets have started to pare back their exposure to the philippines. for various reasons. but we are also looking at the risk aversion and varmint in the last week or so. southeast asia has been hammered. it needs a lot of this comes down to the uncertainty regarding his economic policies. will he be pragmatic and follow what his -- what the outgoing government has done? it has underperformed all of its peers since the start of march. stocks have been down. the shanghai composite, just opening up. have a look at where we are as far as the bloomberg bond index for the country. we have seen a rally, a five-month rally that stalled over the last few months.
9:26 pm
when polls started to show that he was in the lead to, late march, early april, that was what we were seeing across markets. look at this next one. credit default swaps in the country, or default risks. this shows you the spike, that is not it. is the tickerhat at the bottom of your screen. he came out and responded -- can we get up this graphic so the viewers can see what he said in response to his policies not having substance? he said why would i attempted to be a smart alec. if i am president, i would employ the smartest minds in the country. and pay them well. if they are not impressed with me, then i am sorry. markets open up in a few minutes. casinos, conferences,
9:27 pm
and chinese visitors, coming up. we are looking at how singapore has become an unexpected hotspot for tourism. last day of the trading week in hong kong and shanghai. ♪
9:28 pm
[ soft music ] e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. shoah, ha ha.ew artist. show me top male artist. my whole belieber fan group. it's not a competition, but if it was i won. xfinity x1 lets you access the greatest library of billboard music awards moments, simply by using your voice.
9:29 pm
the billboard music awards, live sunday may 22nd, 8/5 pacific, only on abc. rishaad: our top stories. japanese markets returning after their three day holiday. ongoing pessimism over the global economy. losses in sydney oils. day stocks sell for a third at three-week lows great global growth concerns and people are also worried about the potency of central bank to me was. alibaba shrugs off the slow down in china, a 39% surge in revenue.
9:30 pm
encouraging more people to buy the other mobile devices. was just shythat of estimates. shares are up 4% in new york. philip lowe will become the central banks new chief in september. scott morrison confirming his seven year of appointment ahead of an election likely to be called this weekend. economyinherit an working with disinflation. here in hong kong and shanghai. last trading day of the week. >> looks like another down day. japan -- this would be the eighth day of consecutive losses for regional shares. japan is coming that online after three days of holidays to the nikkei is down by .5%. isfar as china, shanghai pretty slow at the moment.
9:31 pm
a modest recovery yesterday. down by .4%. we also had the yen factor ahead of the payroll numbers from the u.s. relief --- a site of a sigh of relief. the australian market is down by .7%. rishaad: breaking news. from australia. rba reserve bank raising its quarterly policy statement. rish, the headline is the expectations on inflation. the rba cutting is inflation forecast to between 1%-2%. the forecast was between 2%-3% in february. deflationary the
9:32 pm
cpi industrial you a couple of weeks ago prompting the reserve bank to cut the cash rate to 1.75%. in the statement, they are seeing that saying that the cuts they made on tuesday would improve the economic growth prospects by further easing. forecastsemployment are little changed. the aussie dollar on the release of this statement has fallen almost .5% down to 74.25. the market deciding that there is more easing in store from the rba on the back of this monetary policy statement. out as what baruch that well. it is not often that the rba is one and done. there is nothing in this statement to suggest otherwise. the headline -- rba cutting the inflation forecast to between 1%-2%, well below the usual numbers. rishaad: getting reaction from
9:33 pm
this as well. three-year bonds down to record lows. the fx market is also in focus. we're seeing the aussie dollar seeing -- taking a tumble. this is where the data came out. we are seeing the downside now. looking elsewhere in the fx because it has been topsy-turvy. a bit of nervousness ahead of the payroll numbers. this is what the yen is looking like. sittings where we are but we have had a little bit of flatness in the past few days but still hanging onto most of those gains. up by 12% your today. the pboc weakening the daily fix a little bit extending on yesterday's move. let us get up to some of the movements. we did have gains in the space
9:34 pm
overnight and the expectations of cuts, we are seeing energy and utilities driving some of these losses, especially when it applies to daily markets. we are also seeing many banks down by 5%. expecting second half operating profit to be lower compared to the previous timeframe. normalization of growth when it comes to hospital bed utilization rates. tvthe sydney session, the which is likely to weigh on its profit forecast going forward. also falling in the kiwi session as well. the record lows hitting a low in terms of yields. 1.567%. all off the back of the rba statement we have just been talking about. back to that story, though we
9:35 pm
have been a poor once in i many as a quick stopover on the way to australia but the city state is increasingly becoming a hotspot in its own rate. this is quite something. it is nearly attracting as many people as some of the other places. >> especially considering it does not have the sandy reaches that other places in asia offers. quite a boom that is coming at a good time. singapore is going -- singapore's economy is going through a slow patch. it makes up 10%. the boom is being driven by casinos. since it changed laws, they are attracting significant numbers spend and visitors to
9:36 pm
gamble. rishaad: i said it gets more people than japan but it is nearly at levels of india in terms of spending. --it is not just pew are fewer -- pure leisure tourism. rishaad: this is a fascinating charge. >> you can see how singapore is coming along quite nicely. 10% of the total gdp from tourism. rishaad: the yellow bars are where they were in 2010 and the blue is where we are now. what fascinated me was thailand and a big increase in tourism taking place there. has -- whonese who have discovered it after the movie came out. >> people -- increasing numbers of chinese visitors. we are seeing this in singapore,
9:37 pm
hong kong as the yuan stays stable after the devaluation last year. the chinese spending cannot be discounted. rishaad: what is the outlook? >> another record year of visitors. it is not just on the casino site but also on the business spending, conferences, and exhibitions. together, for singapore when exports are struggling and the rest of the economy is slowing down, tourism is a silver lining. goldman sachs cutting its rating on property, 20% drop in home prices. 200 basis point rise in interest rates. reducing real estate stocks from attractive to neutral. sales tumbling to a 25 year low. in february, prices had dropped about 12%.
9:38 pm
is making the call on hong kong property. we have a businessman claiming bitcoin.nvented he says he was the mysterious man, the unknown creator of the virtual currency and claimed to have irrefutable evidence. this is causing a bit of a social media storm. million bitcoin question. the value of bitcoin. said he was going to move a little bit of that stash here just to prove a point with the original encryption key which the founder is supposed to have. he changed his mind a couple of days later. wasaid in his blog, that he sorry. events of this week unfolded and i prepared to
9:39 pm
, i broke.e proof he said there was speculation before he came forward. now, he says he is facing new allegations. he said -- i am not strong enough for this. people on social media are pretty harsh on these developments. people are saying -- what is this drama? i thought for sure he would follow through on his claim. others are saying that it was almost as though he was line. who cares who he is? someone else talked about the broader industry -- this does not help the case with the public who is already uninformed or skeptical about the bitcoin industry overall. -- what is tells you going on in north korea. the workers party is meeting.
9:40 pm
the first time they have done so in 36 years. raising all sorts of questions. is it showing signs of opening up? we have a special report from pyongyang when "trending business" returns. ♪
9:41 pm
9:42 pm
rishaad: having a look at some of the stories making headlines around the world. wildfires ravaging canada's oilsands area. people andur lifting more than 80,000 people have been forced from their homes. barrelsas one billion of oil production has been shut down. ministers and military chiefs from indonesia and
9:43 pm
malaysia have agreed to operate jointly to counter piracy and terrorism. their meeting follows the kidnapping of sailors by militants last year. more than 100,000 the souls vessels mess vessels -- moved through their shared waters. delivering a new mayor for london after eight years of johnson. labor is likely to defeat the conservative candidate. he is on a pro-business campaign. distancing himself from here be -- jeremy corbyn. we have got 150 euros around -- the world.und north korea is holding a workers party kroger's -- congress. expected to see
9:44 pm
the leader tighten his power further. tom mackenzie is in pyongyang. tom: north korea's leadership is putting on a show and everyone is expected to be in lockstep, even the kids. the seventh party congress is likely to suppress -- to cement their leaders grip on power. in new central committee is said to be appointed and key loyalists will begin in top positions in the party. the chance for the leader to present a united front to his people and the world. we hope to report on the economy in the run-up but our government minders took off here, the children's palace. today, to them, it is proof that the leader is for filling has
9:45 pm
promised to improve people's living standards. if he can do that as the -- at the same time as developing nuclear missiles. across town, we were driven to an old armory, and that's a reminder of the army's continuing role in north korea in life. we have been taken to see some military history. this rifle fired wide the founder of the dpr k -- dprk. they all apparently hit bull's-eyes. down there at the bottom of the range. hitting economic targets will be harder. there are hopes the party will formulate arms to nascent market and economy. a new middle class has sprung up but much of the population remains poor and malnourished. sanctions against north korea are the toughest in 20 years. weak commodity prices have hit hard those things they continue
9:46 pm
to export. expect everyone will have to wait until the curtains come down until we get a clearer insight into north korea's future. he will get his chance to further legitimize his grip ruling partyhe meeting. tom: rish, we are standing outside a building called the april the 25th house of culture. it is where the delegates of the workers party have congregated this morning. we also believe that the leader is inside addressing them. we believe it started around 9:00 a.m. we have been allowed to stand back on the corner looking across the road at a square
9:47 pm
filled with coaches from the worker party delegates. we are expecting a lot of pageantry later this afternoon in the run-up to this event -- we have been shown around pyongyang and parts of the economy, the agriculture, and the history of this country that the government wants to show off. this is a political set piece and we may get an indication that there could be some hence that the gray market economy that has sprung up -- the party may get behind it and give it its blessing. we may also hear more about the nuclear program. we have seen military individuals out preparing. it is expected to be a big show. maybe more show than substance but we are hoping to get a little insight into what the
9:48 pm
future hold for this country, politically, economically, and militarily. he joins us live from seoul. what is the purpose of this congress? >> there are a couple -- to shore up the leaders howard base. one is to cull the people at the top. some of the leaders are in their late 80's. in their place, bringing in new leaders. we are not sure if they are reform minded but they will be thinking more similar to the leader than not. its nuclearout facilities and capabilities. since 2011, there has been a couple of tests and a few previous to that. that is significant from the
9:49 pm
leaders perspective. type factor is what if any of economic liberalization reforms will be put in place. if it is announced, i think north korea could follow the steps of china and vietnam and become the next asian economic dragon. rishaad: stick around with us if you would. we have head over to sydney. the prime minister is announcing a defense and trade deal with singapore. perhaps worth two in a quarter billion dollars. toit includes my commitment collaboration on innovation. i want to start by thanking andrew. to securingtion australia's future prosperity has been a second to none. never in our history has a trade minister clenched as many free trade agreements with our top trading partners. it is remarkable that today, in
9:50 pm
his capacity as special envoy of trade after he announced he would not be contested the election he has brought home one last landmark deal. this is a massive upgrading of our relationship with singapore. it has been agreed formally between myself and the singaporean prime minister. week. under our comprehensive strategic partnership, our aim is to elevate our relationship to a level similar to when we enjoy with new zealand. the upgrading of our agreement with singapore will make it much easier or thousands of us trillions to live and work in singapore. nations will join forces in a new innovation drive attracting investment and backing new technology. most immediately, this new strategic partnership will generate its own construction boom in north queensland as local builders and engineers
9:51 pm
construct roads, accommodations, and facilities for the singaporean defense forces to continue to conduct training exercises. this multibillion-dollar investment will be centered bay helping water local workers and businesses make that transition from the mining construction boom. rishaad: the australian prime minister discussing the singapore deal as they expand their defense base in northern queensland. more on north korean. continuing our conversation regarding the first workers congress taking place in pyongyang in 36 years. ♪
9:52 pm
>> they are our closest neighbors. i believe this will create more jobs. iowa's believed in the european integration. always believed in the
9:53 pm
european integration. rishaad: getting more on events in north korea. thanks for sticking around. we talked about the significance
9:54 pm
of this and how the leader is perhaps using this congress to solidify his howard base. how much of a threat does he perceive? is he paranoid? >> anyone at the helm of a dictatorship will be paranoid and you see that through actions. a few years after he took power, he killed his uncle and that was a big signal throughout the leadership in the military brass that he needs to be taken very seriously or the repercussions will be at the highest level. he is definitely paranoid as many dictators are. sanctions, even the closest ally, beijing getting involved with those. how will the authorities be looking at events in north korea today? >> north korea is a super sanctioned stage.
9:55 pm
i am not sure how many more can be placed on it. it will try and it has. so far, the effect is questionable. within the north korean workers party congress, this is a forum to tout everything that has occurred. think about what has happened at the last few decades. in the 1990's, a famine wiped out hundreds and thousands of people. 2011, growth has been about 1% or so which is not that bad considering developing economies have developed at 2%-3%. it is an economy that is under tapped. there are a lot of surprises. militarily -- people know that he is a patriot. very quickly, the thing is we do have this congress taking place. are we expecting to see any
9:56 pm
reforms? --that is a big x factor whether he will announce any economic reforms. illegale some markets, that are currently within the country. in large part, there are certain segments of the population that depend on these black markets. that shows you some potential for economic reforms to foster like china and the it now. china leader had followed and vietnam, i think that would be the way to go rather than clamping down on the market. rishaad: thank you, there he much. -- very much. we have got to take a break. looking ahead, our hong kong -- are hong kong rises heading to know lows -- new lows? and the equity trading session.
9:57 pm
another day where we are seeing declines across the board. businessning back to after three days of holiday, on its way down. sydni, also down. you are watching -- sydney, also down. you're watching bloomberg. ♪
9:58 pm
9:59 pm
iaae-m"
10:00 pm
♪ announcer: from our studios in new york city, this is "charlie rose." we begin tonight with politics. after a landslide victory in last night's indiana primary, donald trump has become the presumptive republican nominee. his wing forces the main opponent, senator ted cruz, to withdraw from the race. john kasich has also ended his head. , donaldictory speech trump vowed to go after hillary clinton. donald trump: ted cruz, i don't know if he likes me or if he doesn't like me, but he is one hell of a competitor. he is one tough -- a smart guy.

20 Views

info Stream Only

Uploaded by TV Archive on