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

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♪ rishaad: it is wednesday the 11th of may, this is "trending business," i am rishaad salamat. we will be taking you to singapore, shanghai. we're watching the rally by japan, there been a recovery also in prices. above $45 a barrel again. some say it is a marathon, not a sprint.
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remaining unfailingly optimistic , the method the stock could jump in. amazon delivering for jeff bezos, making him the fourth richest person in the world. nearly $62 billion. please follow me on twitter. singapore trades, on the way down, just over 15%. we are expecting a drop of about 9% there, as well. we want to see if there have been any reactions there. pesos,much unchanged, 46 69 could buy yourself a dollar. in china and indeed in hong kong, taiwan and malaysia coming on stream with julia. juliette: we are watching the
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south east stocks quite closely today. you've seen a pickup in the singapore, .7%. but they have been on their before theing streak asian financial crisis, malaysian down by .1% three but there is a rally coming through in regional stocks. regional, we know the index for japan has been on an increase, as well. things are looking good, things to that rally in european equity markets during the session led by that rally we saw in oil. nikkei up by 1.5%. they are leading with those gains we have seen across the region. up by 13.5%, a very solid again coming through there. 1.1%, solia, gains of
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a good pickup. also coming through with earnings up by 6.5%. oil players are higher and gold stocks today. this increases consumer confidence. since -- its highest since 2014. new zealand looking quite strong. but we have seen a switch. we are waking up the south korean jobless streaks, a little extra data coming out of the region, as well. looking up for investors, and we will be looking at china and hong kong at the bottom of the hour. stocks surging the most in months, dropping almost by a third as it struggles with its lossmaking u.s. carrier. let's get over to tokyo bloomberg.
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what can we expect from these results? >> it certainly looks like the bank is making real progress. stemdvantage to subscribers, and cutting costs. pavel: but it could take several years, as they have acknowledged. but it is far from a foregone conclusion that when it is over, the spread will be worth the $22 billion price tag the company paid for it in 2013. this was his experience a decade ago, making its domestic operations profitable. by all estimates, it has been an all-out success. they have now generated about 700 in yen. despite the steady improvement overall, this is not reflected
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in the company's market value. cap,out $65 billion market they think it is still worth about the same of their largest stake holding in alibaba. and that is not counting yahoo japan, super cell, and other investments. a long way to fix that $22 billion valuation gap. but the company has more drastic measures that it could implement , for example, listing domestic operations and unlocking what could potentially be dozens of billions of dollars in value. rishaad: thank you very much, pavel:. you can always use our #trendingbusiness. no and to the pain of commodities insight, according to certain brokerages. we will look at those and other stories we are following for you today.
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from japan's largest trading houses, oil recovered from a 12 year low. see noese big traders recovery on the horizon for commodities. the crash, their first annual losses from mitsubishi and others, which are champions in the nation's economy. upforced them to really ramp the shift away from energy and raw materials. they have invested heavily during the boom. look at that forecast. it is not pretty. they all expect further declines in oil, gas, and copper prices. flooding 19% in the fiscal year. -- look at that, the most bearish, nearly 29%. some prices could stay stagnant in the next two or three years. and let's look at the kiwi
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dollar, on a bit of a tear here this morning. .6 percent, it rose as much as 1%. the new zealand central bank said it is watching its nations booming housing market to see whether further restrictions are needed to curb demand. balances in the housing market continued to rise, contributing to financial stability risks. cut the graham wheeler cash rates to a record low, .25%. he says it may be required as inflation undershoot its target. he is also worried that lower borrowing costs could further fueled as housing boom. a little spike on the currency here today. finally, disney shares some more than 5% in extended trade overnight. not even "the force" has allowed them to beat those forecast. reignited theey fears of jittery media
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investors, who has seen them lose viewers and add dollars to online media. the first loss in five years for disney. the ceo is making deals, like and others, to make up for declining subscriptions through traditional cable. disney also announced it is closing its affinity video games section. rishaad: the biggest gadgets exhibition in ages, there will be drones and much more. we have a haidi on the floor. haidi: there are a lot of very cool things. keep in mind, this is only the second year it has come to asia. it is the biggest tradeshow in the world, going on for half a
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century, but here, we have numbers ofn attendees and exhibitors doubled from last year's exhibition. you can see all around me, the buzz of excitement, the new technology. there said that, though are real issues that plague a lot of companies like apple, facebook, and google, when it comes to this very lucrative and difficult chinese market. earlier week spoke to the president and ceo of the company that runs this event. thepoke a little bit about balancing act between western countries wanting to get into china, and some of the issues they are dealing with right now. take a listen. >> these things are cyclical. there are always ups and downs. china is too big and established , and too embroiled with trade to be isolationist. i am optimistic, i think these things work out over time. so it is not just fun and
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toys, although there was 20 of that. other big companies were here. also, carmakers like volkswagen, and others. , intended tocars make our lives easier. also, drones. we will see a company that makes the smallest drone in the world, the size of a paperclip. things to see here in shanghai. rishaad: thanks a lot for that. of course, is the dip in the dollar really over? what we should perhaps recover in the second half of the year. the reasons behind that, next. ♪
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rishaad: goldman sachs says the dollar slump is over, after the rally from last year's all-time low. the seven months show expectations for growth and a rate hike went too far into fast. it is asians the dollar for a rebound. goldman sachs estimates a chance of 50%, as it normalizes. usy are expecting -- joining is christopher brankin from ameritrade asia. thank you for joining us. give us your base case as to what happens and what needs to happen for the dollar to appreciate. the way the market is going, it is being mispriced. christopher: i think so. i am in the camp that we will
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more rate hikes for the remainder of 2016. so the feds stick to the 1% mandate or goal for the year, in terms of where the rates are being held. along with the fact that the u.s. is going to be tightening everything from the ecb, jcb, australia looking to ease its policy, those things in tandem will appreciate the u.s. dollar in the near two midterm. but i would definitely like to see the u.s. dollar appreciate in the latter part of this year. rishaad: but the spreads remain roughly the same. it is about the margin, isn't it? get more base points this year? christopher: i think so. don't worry about the next time the fed raises rates. worry more about the church rectory. as we keep pushing this down the
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road and keep these policies. correlation, these will strengthen the u.s. dollar going forward. rishaad: the governor has , forps been responsible the slight rise in oil prices, and rising equities as well. than a stronger dollar result in the opposite? christopher: potentially. definitely, the u.s. dollar is driving economy -- prices worldwide. from yesterday, you saw a fall back in oil prices, it adds u.s. dollars, maybe get a little footing, and bounces back to the 137 level. customeree from our base, and the commodities tied into the interest rates, we see
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our customer that td ameritrade asia being sellers of commodities, mainly crude oil over the last couple weeks. that is in tandem with where the dollar has been going. going toward, they're keep a close eye on where the interest rates are headed. help drive those underlying commodity prices, as well. rishaad: it is interesting. this is the end of the u.s. reporting season now. going into it, everyone said this would not be good. but we beat the estimates in large part. what picture is painted for you these last few weeks? christopher: you are right. we are about 90% through the earnings season. we have beat about 75% of the earnings. 53% of sales, on the earnings side. like you said, it was so
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depressed in terms of what they were expecting, as to whether we would beat earnings. because the earnings projections were so low, they did not get a lot of appreciation from the investor base. and now, we are punished. until yesterday, we saw this huge rally back in u.s. equities, it was a disappointment from the earnings sector, simply because of expectations being so low. it, one coming out of of the unknown knowns is how apple would do. you have decided to turn bearish, haven't you? talk about that. christopher: some of the most widely held names we have are some of the most widely sold names in our customer base. over the last month, apple coming in after the earnings, not sold by our customers. also with alibaba.
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another we have seen in correlation with the oil is chevron. the appreciation of the stock has come up way you where it flows were. we've seen a lot from apple, alibaba, and chevron. you are classically defensive. looking at what you like at the moment, you have at&t, wells fargo, and ford. christopher: yes. i think that ties into two things. the yield on these stocks have been decent, that 3%, 4% level. we have seen our customer base that td ameritrade asia, adding to these positions over the last month as a net new buyers of these stocks. on the hole in april, our customer base has been a slight net new buyer. i previously mentioned the
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apple, alibaba, on the sell side for our customers at this point. rishaad: christopher brankin therefrom td ameritrade. >> checking on stories from headlines around the world. donald trump has one the west virginia primary a week after driving his competitors out of the republican race. -- despite ted cruz remaining on the ballot, he mentioned he might rejoin if he will does well in nebraska. the u.s. navy has a sent another worship into disputed waters in it wenth china seas, too close to islands owned by the philippines and china. also building an airstrip, the
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u.s. says the destroyer's voyage was a freedom voyage in what they consider international waters. almost 1300 new planets orbiting stars in our galaxy, including nine of that could potentially support life. more than 3000 xo planets -- exoplanets have been found from in 2009.te launched too hot nor too cold for life. now there is a new planet hunting mission next year. by 2400 journalists by over 150 bureaus in the world, this is bloomberg news. rishaad: with the election wanted, the president of philippines' toughest task yet. maintaining a steady hand, not rocking the boat. at that humming ahead. ♪
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alix: -- rishaad: taking advantage of rising demand for oil. the company says it will boost capacity by 33% over the next couple of weeks, and will double natural gas production in the next 10 years. ramcong whether to sell a -- aramco. not convinced so-called helicopter money -- the debt may not be feasible, nor the intended result of higher inflation. refers to it as the "nuclear option." certain countries are in reaching the limits of monetary policies.
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inflation,ary about writing on its website, they say singapore took appropriate action last month, and said they would not seek currency appreciation. they see prices and decline every month since november 2014, the longest slump on record. predicting 1.8% this year, rising in 2017. incomingppines' president has been compared to donald trump for his crude, outspokenness. have made the philippines the fastest-growing economy. investors don't seem to know what to make of it. there are concerns, should people be worried? >> they should be concerned, for two reasons. whatn't know much about
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his economic policies will be. there is a lot of uncertainty. part, his priorities in the campaign, are not actually those that the economy needs right now. even if he were able to achieve what he has set up to do, in terms of cracking down on crime, that won't six the power sector, or open up sectors of the economy, like war and investment. certain reforms need to take place that he is barely talked about so far. rishaad: his supporters do say that despite all his blustering, they have actually developed a recent -- decent record. can you do the same thing at the national level? nisid: there has been investment into other companies there. there is a danger that if you look next-door at indonesia, a
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president there, a former mayor, who shows how hard it is to translate success on the local level to the national lever. as a mayor, you have a great deal of autonomy, you can hire and fire, and impose your will upon the government and the locality. but it is hard to do that on the national level. he will need support of congress, and build bridges and coalitions. it is not clear he will be able to do that. rishaad: thank you for the great analysis. it was clear-cut, but a lot closer in the race between the mayor in the other province. they won exactly the same number of votes, and they decided to go with of the latter. the leader called it correctly. that is democracy at work. coming up, asian markets can be
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volatile, but when it comes to the wild east, china is not the most. we will tell you who is. numbers are next. ♪
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the global stock rally, asia recovering. gave wall street its best day in months. these topics gaining 1%, the yen near a two week low. a disruption in african supplies. shares high, despite profits diving. to $2.1g income went billion last year. on track to are
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improve profits by more than $2 billion for year. not even "the force" could help disney. the sale of "star wars" merchandise has not helped. disney also announcing it is shutting down its infinity games arm as well. up 5% in after-hours. the markets get thrown over to sydney. >> we have had a decline in homeland approvals, though not .9steep as expected, a percent decline, but they had been braced for a higher decline , of 1.5%. australiag market in has been coming off the boil recently.
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some regional and mining towns it has fallen pretty heavily, but remains robust in sydney and melbourne. very little has changed. you have to remember these figures are for march. it significantly predates the cut in the cash rate we saw from the reserve bank this month. we probably won't see the impact of this until the may figures. areg forward, rates expected to continue declining here in australia. experts predict it will be at 1.5% by august. for now, we have a decline in home loan approvals, .9%. thank you for that, paul allen. let's get more on the market open in shanghai. here is juliette. weiette: it does look like will see markets here in hong kong and broader china follow that rally that we have seen on the level equity markets during tuesday's session.
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you can see the opening high yet .5% -- half of 1%. doingn see the casinos well, galaxy at 1.5%. they're really just following that story that we have just seen with energy producers in a region rallying on that rebound. negative, south korea unemployment missing butctations coming at -- estimates were at 3.8%. japan leading the region, two week highs at the moment. market is looking quite strong on that rally coming through in commodity , according to the latest with a consumer confidence survey, it is at the highest since -- it is high in
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australia. the stability report coming through, new zealand up by half of 1%. investors really reacted to the election. this is up the most in eight years in tokyo. they are leading the gains on the nikkei. we been talking about it all morning. it is a myth that it has raised its dividends, there are positive signs for its sprint division. it coming through for the auto mers as well. up 5.5%. you can see the gold players and energy players tracking high. all in all, a much needed asian. a rally for
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investors. we have seen the southeast asian index on its longest moving straight. actually down to 10 sessions in a row before today. taking that baton and rushing with it. rishaad: thank you. jumped, despite the consecutive losses. -- he saysing to they exceeded targets. eliminate 6000to jobs by the end of 2016. >> we have done 4500. so we are 50% into the target of the end of the first quarter. so we think that is progressing. we had a target of $1.4 billion for 2015 of the net savings. we believe we have done more than half of that. we are confident we will meet the target.
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they expect to see better revenue and targets from their south asia operations in the next year. bad loans a number of in india, but they have made the bulk of the changes. there are now focusing on areas, such as consumer lending. asia, 980 -- 980 million dollars in losses in india last year. he says he expects a major devaluation of the u.n. and -- yen in the next year. have acts china to it will retract, and a new market reality. predicted the stock slump in 2012 that failed to
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materialize. shares in u.s. traded chinese companies moving to the mainland. they have rallied after a three-day selloff. in beijing. which companies are we talking about, and why the rally now? where those fears overdone in the first place? tom: perhaps. we are talking about technology makenies, tech companies up a big proportion of the companies we are talking about. aroundgest gainer was 8.9%, they make cyber security technology, they are one of the companies being offered one of the biggest deals, one of the biggest buyout deals in china. , up. 21 via net and the dating app, also up.
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con -- comments from saying they were looking for a quota system for the reverse mergers, which suggested an all-out block is no longer in the cards, at least for the moment. valuations, ift and when did these companies relived into china. that may give those companies some relief. they have not made up all those losses over the last three days, but they may have read too much into how far regulators would go. rishaad: what are regulars regulatorsut -- worried about? tom: valuations are the big concern, and what that means for stock market stability. they're very concerned at making
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sure the stock market is stable here. they want control of that. these companies, the evaluation is much higher in shanghai. that theyoncerned companies could stop the liquidity from the smaller firms . they want to buy out these companies, and lead out -- lead concerns- those of the we are talking about, 47 chinese companies. ,e are talking about deals potentially worth around $43 billion, u.s. dollars. it is a stampede of reverse migration. they want to make sure they are controlling it. how,have not said when or
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how they could be put in place. but it is looking like a quota system would be more likely. thank you, for that. in china.en markets but, wild swings we have seen in asia and the world. but the crown has been snatched away. david has more. david: a one-year look at volatility. obviously, we're looking at two sides of the same coin. the shanghai has behaved itself recently, the nikkei to 25 has been thrown all over the place because of the japanese yen strengthening. is, we have seen recently from the start of the year, japan has overtaken the shanghai composite using this measure.
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do with the fact that shanghai has behaved itself. we are looking at the lowest 30 day volatility for the shanghai composite from this time last year. -- the z ing is that score. 250 day mean,the one-day pricing. above or below this green line, which represents three standard deviations from what you typically see, that really shows you how jumpy it has been. for japan, unfortunately a lot of the gems have been to the negative. at one point, we were three standard deviations away from what would normally be considered the norm. do look at this nikkei to five, and look at the same measure in shanghai. this is really the story here.
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it has behaved itself quite a bit. here,green lines right have barely made it two standard deviations, that is point we were just-- talking with tom, to shrink the back door. briefly, let me end on this. ofyou want to get a sense what the option markets is pricing, that function on the terminal gives you the pricing. it is very confusing, because there are so many numbers. we are at these levels right now for 30 day volatility. this makes it a valuable function because you can get can look at this in 3-d. look at the front end of what is being priced.
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this is your front and right here, and as you make your way up down the line, this shows you that nobody really knows where to go. people are really pricing a protection for further swings in the japanese market. rishaad: thank you, very much indeed. drones to devices, we will speak to a drone maker in shanghai, taking you there next on "trending business." ♪
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>> it is 9:44 here in hong kong, and these are the stories making headlines around the world. the canadian government says that the oil place at fort murray has largely recovered.
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many buildings have been lost. the hospitals and schools are intact. the oil infrastructure was spared, and companies took production off-line, but are already planning restructuring. the investigation into $80 billion from bangladesh found several hacking groups, some from nationstates. it is said it digital fingerprints of hackers in pakistan and north korea have been found, but it is uncooked -- unclear if it is a gang, or from another nation. were spotted before nearly $1 billion were transferred. the u.s. navy has ordered lockheed martin to fix the problems on its combat ships after delayed deliveries and three official warnings. the agency found systemic yard inproblems in the
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wisconsin. secretary asked carter had reduced it from 54 vessels to 40. there is competition to build a heavier version of the ship for 2019. powered by over 2400 journalists and powered by a 150 bureaus. theaad: let's get to consumer coverage in shanghai, this year, there is a record number of drone exhibits. they say the local drone market could be worth $127 billion by 2020. how are drone makers represented at that event? haidi: as you have been saying,
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drones are the dominant exhibit here at ces asia. there is an incredible scale of this event, in terms of exhibits and booths. talky next guest wants to about something, the world's smallest drone that can fit in your hand. i have the president and ceo with me here today. thing, why?next big we don't believe in bureaucracies or red tape. this technology should be available for all ages. have all the way from the world's smallest drone, to the bigger ones. thatve come to the reality people can have this. this can be just for fun,
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it is a cool gadget. that in terms of market potential and possibility, what is the most lucrative for you? we are diverse in this segment. i would say one area is making additional profits. we try to send them to consumers of all kinds because people have different needs. haidi: what is the biggest challenge, is regulation keeping up? is a stifling innovation? michael: with new technologies, there are always challenges. 1990's, there were -- it is still tentative after 20 years. that does not mean the technology should stop progressing, because of these issues. with the drone market, there are some reservations coming up. that in the china
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market and the rest of the world, it will not stop the technology improvement. is the use for drones in the chinese market? michael: i think currently, the drone is being used as a hobby, and for video. but robotics are improving rapidly. maybe these three markets will collide, and you could see it flying. you could have drones do things for you, it could be your eyes, ears, and hands. haidi: there are concerns about safety, such as airlines crashing into them. do you think there needs to be tighter regulations in terms of how to manage, because when it comes to drones, it is fast-moving? michael: i would say yes.
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but we should keep it to the point that we do not restrict the technology. dangerous the a call in an accident, but that does not mean that we should not try it, right is to mark -- right? people must be done -- notified of the benefits of the product. is it for photography, cinematography? michael: what people don't view, very -- in my soon these drones will be capable of doing things in the robotics sector or ar, taking it to the next level. we are primarily focused on the photos. it could be used in real estate,
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agriculture. you name it. and there is connectivity, the internet of things. how do you think growing technology plays into this interconnectivity that is trying to develop? i think it will be related to people connecting to machines. i would say internet connectivity is growing, and we have robotics, ar, and drones area that is all about connecting machines to humans. you can see it from machines understanding what people say. want to be able to control a drone with your head movements. humans,chines, with ,ould make it a trans-human
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humans and robots combined. extraordinary stuff. good luck with the rest of the show. president and ceo, talking about what the future might look like. thanks, haidi. still to come, the growing wealth of the jeff bezos, how much of the amazon founder is worth. ♪
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rishaad: we are coming to you live from hong kong, and streaming live on toppingpany's stock $700, for the first time. that puts him on the list of the
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world's wealthiest people. bezos get?ich, did >> he added $2 billion to his net worth, after amazon shares rose 3.4%, to close at an all-time high. , hes now richer than ever has $62 billion, the fourth richest person, only behind bill gates, lauren founder, and warren buffett. rishaad: the stock price could go even as high as $1000. anything is possible, isn't it? >> yes, anything is possible. it seems crazy when you think about it. they are already near 300. when you think about it, last year at this time, amazon shares were at 4.8%, and now they are
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at 700. it is far from it where it has been before. grow,is a lot of room to and rollout. quickly, looking at what is going on market wise. hong kong set it off, positively. seng.f 1% on the hang the shanghai composite is moving higher, as well. rally, two week highs. a bit of a pullback when it comes to the yen, and what is going on with the nikkei 225. up, and gadgets for all at a consumer electronics show.
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we will be live in shanghai to give you a more detailed look at what is going on. think of it as an destination, ♪
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♪ >> from our studios in new york city, this is charlie rose. charlie: president obama is considered one of the greatest communicators to be in the white house. he has drawn comparison to martin luther king jr. here's a look at his speech last year, commemorating the 50th anniversary of bloody sunday. president obama: we are well served to renumber that at the time of the marches, many in power condemned, rather than praised them. back then they were called communist, or half breeds or outside agitators.


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