tv Trending Business Bloomberg May 9, 2016 9:00pm-10:01pm EDT
live sunday may 22nd, 8/5 pacific, only on abc. rishaad: it's tuesday, the 10th of may. business." nding we are going to sydney this hour. this is a look at what we are watching. the miners being crushed today on the back of iron ores tumble. streak andst losing would you believe it, since 2000. second yearcting a loss.
they recall could ultimately include 120 million vehicles. victory in the philippines. the zero-tolerance message on crime, leaving no one in any doubt about his stance. without further a do, we're tried to make sense of it all. it's quite something. japan from theut regional index, excluding japan's index, that is down for the 10th session in a row, the largest losing streak since 2000. we are seeing some good games coming through in japan. that has to do with the weaker
yen. the yen story more to do with the dollar strengthened because we have now the likelihood of two fed rate hikes coming through in terms of what traders are speculating. yesterday, there was speculation that the june hike will be pushed to september. most economists forecasting we will still see two rate hike this year, putting pressure on the dollar. seeing thoseare mining stocks hammered industrial you as you would expect with commodity prices generally down across the board. new zealand looking flat. taiwan is done by a quarter of 1%. singapore down three quarters of 1%. some weakness in malaysia on the open, down .25%. want to show you some of these iron ore producers.
this movement has been significant. its aprilown 22% from peak. a huge stockpile of the commodity in china, putting downward pressure on the commodities priced. just having a quick look as well at current seas. the aussie dollar ahead of the china inflation. a little weaker there and this weakness in the japanese yen as well. the japanese yen down by about .10%. certainly giving some upward trajectory to japanese stocks that we are expecting a selloff for the rest of the region. we have been on watch for a potential spike in inflation that could trigger a pullback when it comes to stimulus. what is expected when the numbers break in about 27
minutes? riske potential downside to the stimulus bill into the chinese economy is of course a potential spike in inflation. chinese authorities are always vigilant to rising prices in they will be watching the cpi number closely at the bottom of the hour. already it is at the highest level since the middle of 2014. economists forecast cpi to have stayed steady at two point 3% in april. that is the same pace as the previous couple months but it has come off from lows in october of 1.3%. food and housing prices have been rising in china. a jump above that number wouldn't be too much of a surprise. newly 30% in the past year and the government is a said to have already started tapping into its strategic pork reserves to meet rising demand.
investors are weary of a rise in inflation. china's know -- signal measures being dialed back. we will also get wholesale prices for april . has been an deflation for 49 consecutive months and will likely be a 50th consecutive month of when we get the numbers. but the trend has been easing for four straight months. deflation likely eased for a fourth consecutive month. up,rt costs starting to go which could ultimately cause a rise as factories pass on their cpi to consumers, a rise in down the road. inflation figures due for april at the bottom of the hour. we want your opinion.
do tweet us your thoughts. roderigo appears on course to be the next president of the philippines. he has claimed victory in one of his big arrivals has are ready conceded. the mayor thinks he's got it all done and dusted, yeah? >> e-mail not be wrong. 90% of the vote counted. a comfortable lead. we spoke to the chairman of the election commission. he says the official result is just a formality. so far, all the indications, the unofficial preliminary results are a reflection of what you can expect in about a month time. in a speech of two hours last
night, he accepted victory. tere will try to address -- thelike the bottle congested roads we see. it takes about an hour 40 minutes to get from the airport to the city. he says he will address the grievances of the middle class. accounts forstill 26% of this population and the middle class hasn't benefited the the 6% growth from current government. take a listen to what he has to say. >> my gratitude to the filipino .ation, especially those the first legislatures would really be real. to come first president
in from the left. be progressive. >> he has proven he can do it. years been mayor for 20 from a murder capital to one of the most successful and progressive cities in all of the philippines. but he now has to unite the people. this has been one of the most divisive elections of the last year. he also has to gain the support from the investment community. the pesto has been one of the weakest currencies in all of asia. investors are concerned. theseren't sure about economic policies and whether they will be continuity in these economic policies.
they want to see that happening but there has been no indication. as he will has said put in a team of experts to lead his economic strategy. rishaad: thank you. you can follow the elections on our website as well. bloomberg.com/asia. a look at some other stories we are watching today. sherry starting things off with a company that used to call itself quietly brilliant but doesn't anymore. >> we're talking about htc. its fourthed straight quarterly loss. it announced a net loss of 80 million u.s. dollars compared to an estimate of $17.9 million shortfall. sales tumbled to $177 million. meet demand ofto
smartphones. once the best-selling smartphone brand in the u.s., its market share dwindled to 1.5% last year , down from 9.3% in 2011. the company said last year that it would cut halfing by -- staffing by more than 15%. htc sticking with its strategy of building top-of-the-line smart phones. shares have just started trading in taipei in their tumbling more than 3.7%, the lowest since october. -- ning recalls of toccata lethals potentially airbags may cause a shortfall for the company. it has forecast a $55 million profit. the recalls may ultimately reach nearly 120 million units around the world and expansion of that
magnitude may cost an additional $6 billion. at least 13 deaths are linked to the faulty airbags. a has lost about 76% of its market value since october. mitsubishi faced monson uncertainty after its largest shareholder said it hasn't received any appeal for help with the fuel efficiency scandal. -- mitsubishi is a rating the result of a third-party investigation. mitsubishi motors has seen shares tumbled 44% since fuelting cheating consumption tests. we haven't received any request for financial aid from the mitsubishi motors. i understand they will submit a report to the transport ministry aware 11th but we are not
of the content. we just have to wait for the independent investigation. check of mitsubishi motors trading this morning, up 1.9%. rishaad: coming up later, a shift in the signals. china says its country cannot borrow its way to economic health. may push to do the heavy lifting. that's all next on "trending business." ♪
markets. is if youny thing look at the prices in the market, the volatility's, and not that much is going on. it has not been a dramatic fall so you will not see it in the volatility index. guest: movement itself is limited but it is one directional. people might get afraid because we are starting to sink quite aggressively but we aren't there yet. rishaad: why is this happening? historically, the ratios here are remarkably cheap. sentiment,e is anything china related is very negative. , there iscomes out too much chipping going on in that market. everyone shies away from it. it also explains the
differential between eight shares. nowt of a side step is there was a bloomberg article this morning about a massive bubble taking place in the china's commodity space. which makes sense. there is liquidity going around in the investors take it here .ut i would credit the chinese if we are honest, it has been going around the world for a couple years now, namely central banks attempts at reflecting. rishaad: those attempts a really aren't working in many of these jurisdictions. guest: we should start to wonder . thanks across the world are getting a severe hit to their business model. up, great.ets go that is fantastic for the people who own stocks but is it working for the average middle or lower class person?
that explains come i would say, sentiment across europe, the rise of trump. it's not necessarily working in the majority of populations. rishaad: we all know trickle down doesn't work. in terms of sentiment, you're saying that is what hasn't worked either. guest: it's a bit late to the game. maybe trickle-down isn't working and a maybe working and expensive policy mistake. rishaad: that is the thing. japan is in a situation where we have seen all the work done by , pullingal bank there his hair out thinking it's about time my prime minister did something. guest: the printing part is easy. something structural needs to happen. why actually do we still perceive the yen as a safe haven? i don't necessarily see that and until this perception is away, he can print and do what ever he
wants and it's not working. rishaad: trajectory is to the upside. people have been talking about approaching that 105 level but we're still waiting for the supplementary budget. there's talk he will not do anything unless he shares what has been done in that. guest: we are sort of waiting for each other. at one point we are hoping and trying to deflate but at one point, you start to get inflation. looked likeerything deflation. also it explains the pricing of volatility in the market. themore you look forward, relatively more movement will be priced in. arele are looking at we currently playing a goldilocks role. if rates were raised again, what would happen? -- peoplecould get
would be very and expecting that. thank you. a quick look at the stories making headlines around the world. through canada. the fires have posed less of a threat to the town of fort mcmurray. they have not done within one million barrels a day of production and cause at least 88,000 people to evacuate. other oil companies polled workers out of the area. awarding kim jong-un a new title. the chairman of the central military commission, commander of the army and chairman of the national defense commission.
mercury has passed directly between earth and the sun for the first time in 10 years. nasa provided real-time images of the event. seemed to beury trudging along, it's actually moving at more than 160,000 kilometers an hour. was 10 years ago. the next will occur in 2019 and there will not be another one until 2032. in 150urnalists working news bureaus around the world. we are bloomberg news. next, a slump in sales. ♪
business." reported flagging sales growth. shares tumbling 7% to a three-month low. s assess the locations of that. michelle, let's get your take on the numbers. michelle: overall, i think it was not that bad. it does send some mixed signals. --haad: is a j.d. winning j.d. losing and alibaba winning? michelle: jds growth merchandise to grow as much as alibaba. course, overall e-commerce has been taking market shares from offline sails. i think different two alibaba's management who has an optimistic view on chinese consumption going forward. jds management holds a cautionary tone on the earnings call last night. first of all, more than half of
jds growth merchandise value is electronics. rishaad: sales up 9%. -- 48% up. this growthlf of merchandise value are coming from home appliance and electronics. and j.d. have been targeting high-end urban shoppers, which demand higher-quality and branded products which may be more effective during economic downturn. rishaad: you say the management is downbeat on the prospects of this but do they have a timeframe as to when things might get better and have a turnaround? michelle: they don't say specifically. rishaad: they would never actually say specifically. michelle: in the medium to long-term, i think they are still optimistic njd will still be a good start to play on rising chinese middle class and
rising chinese consumption overall. rishaad: did they have a series of new initiatives? how are they going? michelle: i think they're all , such as growth areas online local services, international expansion. they have been active on the margins. i think investors are more tolerant on those new area investments. rishaad: thank you so much. j.d..comoming out of overnight. let's move it along and talk about the other earnings. gap hopes seeing a turnaround this season. fell.tes shares tumbling as much as 50% in late trading.
tyson foods out with a four-year profit forecast, which was raised. the company is the largest meat producer in the u.s., maintaining its sales forecast at $37 billion. chief executives saying they plan to shift their china strategy to focus on retail consumer needs. shares are getting 1.5%. sotheby's also up in new york. raise their stake up 10%. the news coming that 70's missed its latest earnings. we are looking at a sharp decline in this week's spring sales. we are just minutes away from the latest read on the chinese economy. we are expecting china's latest producer and consumer figures.
rishaad: looking at our top tory, beijing equities falling . we have commodity and shares tracking, metals and crude. stocks around the world losing momentum over the past cup. years on the state of global growth. we will get chinese inflation numbers in the next couple of minutes. slumping, n taipei plunging 63% there a year ago.
they have a shortfall of $18 million. they hope the release of the new smartphone will boost sales in the second quarter. they say fighting poverty will be his top priority as he claimed victory in the philippine presidential election. with 90% of the vetoes counted, he has a large lead. they have embraced duerte's approach to zero tolerance to crime. do we have that inflation reading. let's get it straight to steve. steady at taying 2.3%. we were expecting that, and there was a chance that it dabo higher given that pork prices are higher. pork prices up 30% over the past year and housing also up.
2.3%, that is staying steady now for three months. sororities will be vigilant for any pike up in inflation given the amount of stimulus that has been pumped into the economy to try to alleviate the slow-down. as far as wholesale prices at the factory floor, p.p.ism is easing. prices down 3.4%. we were expecting 3.7%. this is the fourth consecutive month now prices, wholesale prices have eased. again, import costs are starting to creep up, and that is being reflected at the wholesale level. this still is the 50th, yes, 50th consecutive month that p.p.i. has been in deflation. back to you. rishaad: thank you. we have more on these numbers as we flesh them out. let's have a look at what is oing on as far as market reaction. the aussie dollar is influenced
heavily by china data. >> have a look at this huge spike we just saw in the aussie dollar when the numbers hit the wire a couple of minutes ago. it has gone up quite strongly. pretty vlasic there, 7838, but the aussie dollar had been trading lower. so the upward trend showing better than expected inflation number, and disinflation easing. the share markets has been open a couple of minutes, but it was down by .4 on the open. now it is higher by .1%. it does seem that the market lacks the numbers. the shanghai market up by .1%. ng kong opened down by 1%, and now only.5%. looking elsewhere around the region on. we are still seeing a little bit of selling.
the nikkei, the yen driving the nikkei up by .8%. i want to show you some of the energy players in hong kong as well. morgan stanley downgrading cnook and petrol china. they are coming under pressure in the early session, but we will keep watching those. we are seeing the share market pierre back a little on that. here are some of the other oil producers we are watching in the region with the oil price at a two-week low. on the off shore, we have seen risen. has ut the offshore chinese up slightly. a pick-and-pop up coming
through in the aussie dollar and chinese equities on though those numbers. back to you. >> thank you for that. rishaad: a 2.3% read when it came to the consumer price index. that was bang in line, and produced a negative consumer price index for the 50th consecutive month. just slightly better than expected, looking for a negative 3.7% and actually getting one of 3.4%. that is what we had there as well. 10:34 a.m. in pyongyang, north korea. michael kim -- jean-claude this r -- this is the scene in pyongyang. he has been lauding the
achievements and reforms announced over that period. not much detail on them, but there was nonetheless reason for celebration as you can see there as well. 10:04 there in pyongyang in the north korean capital. we leave you with those images and take you to what has been going on in china. investors turn to an unlikely place to get a read on numbers. the thirds time the people's daily has published an interview with an unnamed official, which many see as a warning passed down from higher leadership. brendon scott is with me. this is an anonymous interview, but it does seemingly carry a lot of weight. >> mostly because of its context. it is a q & a form of interview, very long, about 11,000 words, coming from, aattributed to an theriot tative person speaking about -- authoritative person.
it appears on the front page of the main newspaper. it is the main way of official from the party communicating. >> do we have any idea who is speaking here? >> we don't know exactly. we can assume that because the front page is normally served for ping and recapping his daily activities, that it is mething or someone closely related to ping or the president himself. it could be some member of the administration. people's daily offered a hint saying that the authoritative erson can be seen as representing the views of the top leadership. rishaad: the question remains
here. why are authorities in beijing communicating in this round-about way? >> well, as you know, the opaque policy-making of china has been one of the big criticisms by global investors, that they are not able to know who is making decisions, where it is coming from and be able to see a clear line of consistency going forward. that has to do partly with the communist party's one party rule. it's unwillingness to accept that there are maybe factions or disagreements in the peter. so in this case it may serve their interests to have someone be out anonymously, to not seen as overshadowing one official or any one point of view. it is a way for them to speak as party leadership and not as differs partisans within the government. >> thank you. rishaad: let's move quickly to
some of the stories we are following. inspection at home. a person familiar saying china's insurance regulator is sembling a team to look into anbang's business and investing in unlisted companies. they say they will limit the sponsored posts following the death of a student. he died a rare form of cancer last monday. he sought controversial treatment on the base of controversial search results. they established a fund to compensate users. apple, google, samsung and blackberry, they want to know when they send updates. they are concerned about delays
and differing patches and that some older devices may never sofede updates. they want the phone makers to explain the process and list vulnerabilities found since 2013. let's have a look at australian miners. and o plunging by 6% overnight. no one thought the surge was sustainable, but what a fall-off. what brought this about for iron other? >> a few factors at play here. one of them is the chinese stockpiles of iron ore reaching 100 million tons. so it is really building up at the other end. there has been a huge amount of vumet being traded in the space as well. a lot of speculation. chinese authorities are moving to crack down on that, boosting margins, cutting down hours and boosting fees.
it is all having an impact. nobody thought it was sustainable, and it is proving to be the case. iron o everyone research off 5.7% overnight, still up for the year, but all signs point to it heading further south. the impact on mining stocks has been predictable. their only product is iron ore. right now they are off 5%. but bhp is not faring much better, it is off 5%, and rio off 4.7%. for the government, evans are i decline in the price of iron e is a decrease of $50 million. rishaad: thank you for that. that is paul allen for us in sydney. ahead we are going to be speaking to the philippines former socioeconomicic planner.
rishaad: 13 minutes past 10:00 in pyongyang. the people's worker's congress kim g to an ends, will jeong un party chairman. they are pursuing their nuclear weapons program. many north korean watchers are taking this was really cementing and consolidating his power base. that is the scene in pyongyang.
we are going to look at some of the other stories making headlines around the world. with the brazilian senate that could convert as early as tomorrow on impeaching the president. some are calling for the process to become annuled. the senate chief is not ecognizing the decision. they would see rousseff suspended from office while she is faces trial. the united states and russia have pledged to maintain a cease fair noah lepistoo. the two powers say they are -- cease-fire in represento. attempts will be made to restart peace talks that collapsed last week. icel was suspended and fined
$2 million over a payment he received from seth blatter. they cut his suspension from four years to six and said it wasn't convinced. it,400 journalists and 150 bureaus around the world. this is bloomberg news. markets in manila have gone back to work this after monday's break for the election. let's take a look at how they e reacting to duerte's victory. >> as expected, we are seeing some caution from investors. we are down about a fourth of one percent. not as bad as people were expecting, but expect this to e volatile over the near term. they will want to see who the cabinet will be.
let's throw this forth. you are basically looking at turnout evaluations. the philippines against the broader southeastern asian benchmark in the emerging markets. this is mxfo, and mxef. let's get a close up on this side. these are fairly small numbers. satisfies to say the philippines are quite expensive relative to peers and historical trends. that is a five-year look. it is way above its three-year average for a lot of reasons. what morgan stanley actually said is last week they told heir clients sell azian. earnings growth may be at risk. at these current evaluations given the uncertainty, risk-reward may not be there to bid this market back up. let me throw this forth a
little bit more, and this comes down to how the next government handles the budget. it is not sexy, but it is essential. this part that you see right here is a shrinking budget receive sit from about 4% of g.d.p. to 1.5 to 2%. this is also a growing economy. in other words, this outgoing government has kept finances under control. they have been prudent. they have been criticized for underspending, but it has worked in this sense, and now the country has investment grade rating. rishaad: staying with the philippines, one of the challenges faced by the next president, we will talk about that. what is the general feeling? well, fill pinos have spoken. they have voted for a change, despite an economy that has been growing at 6:00% over the
past six years. it has been named a rising tiger. it is just not enough. let's put things in perspective . we have a former economics planning minister under the previous administration. he joins us this morning. no secret that you voted no duerte. presidency mean for the philippines? >> people are expecting to get things done quickly. the next priority would be to get the stock market on the ground. >> the president of indonesia fell short of expectations in the past year. it is difficult to deliver results when expectations are so high. >> he needs some big wins. the first one maybe eliminate the drug menace. the second mcgahee bin is the next time it rains heavily,
hopefully the floods will be more controlable, and maybe the trains running fast. >> how about job creation? president aquino said he created four million to six million jobs during his administration. do you see that happening? unemployment is still very high and 10 million fill pinos still live and work overseas. >> yes. our unemployment rate is still ery high, especially the under employment rate is very high. and the poverty levels are still very high. we forgot about agriculture. it has been growing at 1% for the past six years. hat is is a problem as well as a concern. 70% of our poor living in the agriculture area. >> what can be done to help farmers and agricultural
development. >> one is farm to market roads, giving better access for farmers to their markets. use 30% to 40% of farmers the transit for their produce. they need to diversify their incomes, grow better crops, improving disease. if a farmer is growing rice, milking an grow some cattle. >> is the economy diversified enough? there seems to be an overreliance on remittances. many tack doris need to be looked at as well. >> it means manufacturing. manufacturing would provide more jobs and better quality jobs, and it will also diversify the source of of our inco.
>> there is a lack of clarity in terms of duterte's economic team. what have you heard and what are you expecting? >> we don't know who will be there yet. we will know in a matter of weeks. >> what are you hope to go see though? >> i am sorry? >> what are you hope to go see for his economics team? >> we would like to see people who are experienced and can get things done. >> the challenge for a duterte government? >> delivering quickly. >> the risk? >> disappointment. >> thank you. 90% of the votes talleyed, but official results in about a month. rishaad: thank you. we have more in-depth nalts the the -- analysis over fill pinos elections.
jung un is trying to move away from the history his grandfather. there has been a huge display of pomp and ceremony. e have these huge crowds there in the capital. congress has ended, first one in 36 years, and it has huge significance. >> the significance of it is, as you say, it is the first in 36 years.
what is also significant about it is the fact that we have sornte g un trying to himself with his grandfather rather than his father. but in his speech that went for three hours, he did have ill nces to the kim jung era, which was described as a grim time. he wants to hearken pack to the time of his grandfather, jim ill judge, which was a better time. north korea was doing better economically than south korea at one time, which is not the story now. rishaad: he looks like his grandfather. >> yes. an nder if he will make appearance at the military parade later today. i was tiago to go an academic
yesterday who say he sometimes gets to speak to the people who de-brief the defectors coming to north korea out of south korea. they have a pretty good emotional response to the grandfather, but not so much the father. it really goes back to ok, we want to associate ourselves with that. but also, the dual track olicy, which kim jung-un has described. they are going to continue to progress on the nuclear side. rishaad: they go hand in hand. he got this new title. >> yes. it is chairman of the workers' party. that is something shared with his father and grandfather and absolutely puts him in the center of power that has been cons tated here. another thing to make note of, it is going to be very difficult for him to do that economic development along with nuclear development at the same time. noish we will -- rishaad: we will see if he
>> from our studios in new york city, this is "charlie rose." charlie: brett is here. he is a special presidential envoy for the global combs to fight isil. he presley held a number of policy roles on both the obama and busch administrationles. he served as a senior viedors to three ambassadors in bag baghdad. a u.s. navy seal was killed by isil