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tv   Trending Business  Bloomberg  June 6, 2016 9:00pm-10:01pm EDT

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it is tuesday the seventh of june. this is trending business. rishaad: let's have a look at what we're watching for you. the asian markets up for a third day. janet yellen saying that the positives in the u.s. economy
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outweigh the negatives but still there is no data out there. headss top messaging app toward the biggest tech ipo of the year. a possible value of $6 million. up 56% now from the lows we saw in september. the glass ceiling has been shattered. hillary clinton has enough delegates to be the democratic nominee for president. the 2016 election is now officially underway. do follow me on twitter. out of thews coming philippines. the latest inflation readings. unders putting inflation the central-bank target of two and 4%. this is the 13th consecutive month it is coming below that level. we look at what was going on here and then predicted a rise of 1.3%.
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china hong kong markets getting underway in 30 minutes. singapore taiwan malaysia. juliet, a third day of rising equities as part of the world. a five-week high for asian markets. it's all about the janet yellen effect. more about what she didn't say that what she said. market was looking for specific timing for when the fed would take action. instead there was a lack of confirmation from janet yellen about any timing. equity markets with investments buying and because we are now as they say a 2% chance of the june rate cut. a rate hike i should say. rishaad: we got live images of hillary clinton right now. she becomes the presumptive democratic nominee.
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this is just before the tuesday california democratic primary. suggesting and accepting the fact that she will be the nominee of the democratic party. i have alinton: special place in my heart for long beach. >> when my husband was president he worked closely with your mayor and your leadership in long .each he was a good partner for long beach as you began moving into the future revitalizing long of what longproud beach has become and i want to be a good partner for the city. i am so excited by all the progress you have made here. i know that we can do even better. i am a progressive who likes to get things done.
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here's what i want to get done. more good jobs with rising incomes. more jobs in infrastructure. roads in our bridges and our tunnels at our ports. our airports, our water systems. i want us to bring manufacturing back and if we make it here in america we will put people back to work and we should because we invented it. so i haven't made somewhere else? that great port here to be exporting as well as importing. we're going to fight climate plan to install half a billion more solar panels by the end of my first term. and of clean renewable energy to power every home by the end of my second term.
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have the leading number of clean renewable energy jobs because sun country is going to be the clean energy will be either china or germany or the united states. i wanted to be us. don't you? in addition to growing the economy we are going to raise the national minimum wage as you have done here in california. were going to do more to help small businesses. that create most of the new jobs in america. we are finally going to guarantee equal pay for women. you, this is not a woman's issue. if you have a mother a wi-fi daughter a sister who is working is your issue to.
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we are going to get family incomes up in this country and that is one of the fastest way to do it. rishaad: hillary clinton is the presumptive nominee of the democratic party for the presidency. the pressure is now on bernie sanders to get out of that race. contests in the virgin islands and puerto rico. if you take all the votes that have been tabulated and effect of those in it looks like she is a cross that threshold. the first woman in u.s. history to secure the presidential nomination of a major political party. let's get to these issues of growth in asia. secessionr the first in three mondays. bring up a range of key economic indicators. steve is looking at all this what is causing this concern?
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steve: the slowing economy is back on the front burner. riptide theght in a we have seen impending anouncements of the launch slew of economic data is due over the next three days. just as china's markets also go on holiday. thursday and friday of this week. today will get foreign exchange reserve data this may. for a clue on how much chinese authorities may be intervening or not in the economy. onde data for may is out wednesday followed by inflation numbers on thursday. after the march aberration exports have likely resume to their downward trend. year-over-year in dollar terms but nine out of the past 10 months. the negative trend has resumed.
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imports have been even weaker and have fallen for 18 consecutive months. in dollar terms. the pickup and gold prices may be lifting the number of those right now. 6.7% in may as the conference board forecast. imports have fallen by double digits. year-over-year. inflation numbers are due on thursday. on the back of rising food and property prices. stabilizing for the past few months. 2.2% is the consensus estimate from economists surveyed by bloomberg. four consecutive months above 2% indicating authorities are less likely the ease monetary policy. the producer price index is likely to continue its deflationary trend. to 51 consecutive months. but the consensus estimate is 3.2%. the lowest inflation since november 2014. is the deflationary
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trend is starting to ease. it was nearly a year ago and the shanghai composite index piece of a seven-year high on june 12. and tumbled 30% over the subsequent 30 days. the index is now down more than 40% of the past year. analysts and economists don't expect a revival of stocks on the mainland anytime soon. authorities are likely to stoke the shares. exacerbating china's debt. ipos is down 55%. the royal bank of scotland at least for this year is a softer equity market will be a drag on gdp growth. rishaad: let's take a look at the company running one of the most popular messaging apps in asia. talking about line court. one of the biggest tech ipos of the year. read stephenson joins us live.
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read: it is very interesting. when you think bank they filed for their ipo two years ago. in june 2014. so why now? especially in a. tech ipos of not doing very well globally. if you look at the first six months of the year note tech company has raised more than $150 million in the public market. whereas in 2015 and 2014 that number was up in the billions. management is eager to get this show on the road. to raise some funds and push for growth. that is despite a relatively weak tech market. is that lined it thinks it has a pretty compelling story to tell. rishaad:
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getting this show on the road. so what is that pitch? d: blind and makes money. that is the message they are trying to send. there are many online messaging services out there. moment those organizations and businesses are still going for growth. spending a lot of money to find users. has about 250 million users. it actually makes money off of them. when everybody knows her popular stickers and ads. the story that management is going to tell in the go out and try to sell the shares in the u.s. is that malign can make money with little more investment that can probably be one of the more profitable messaging apps.
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rishaad: look at the pressure that is mounting on the bank of japan. some of those economic targets. yvonne: they dropped that two-year timeframe for inflation in order to avoid taking more drastic action. engaged inady of more aggressive stimulus. boj deploys common sense they'll have a lot more slanting to do. japan remains far from the 2% target we've been talking about. its aim is to meet that within about two years. that language is really easing expectations. before each boj meeting. it usually ends with no change. it should make the timeframe a more long-term price goal.
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more stimulus i should say next coming months. also looking at the earnings of hong kong jeweler. checking out the state of that city's retail sector. those numbers are due at the close. analysts are expecting the smallest profit in six years. 2014 the companies profit had its best business year. the slump followed. it has taken quite a tall. a profitexpect to see of about $40 million in today's results that may reflect the bigger trend we see in the city of hong kong. mainland tourists are visiting. spending less on luxuries. rishaad: chinese tech copies are taking a page from apple.
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patent infringements. find out why. janet yellen's latest speech may have taken a june hike off the table. what is happening in sydney with their rate decisions later today. ♪ ♪
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rishaad: bernie sanders is claiming quite the opposite. that hillary clinton is not the presumptive nominee. sanderson says if you take those out she doesn't have the nomination locked up. the others claiming the opposite.
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janet yellen signaling that a rate hike is coming but probably not just now. really the dominating sentiment. >> it is. if you have a look at the volatility in the market there has been a lot of choppy trading around the time of the fed action. we made a few decisions a few that isgo that we think contrary to the consensus. it is not really a mainstream view. june and july seems to be firming up. that was very contrarian view. if you have a look at the way that the fed moves last year they took it right to the action of the year. we have to look to the fourth quarter again. it is probably the most likely and hopefully what that will mean this confirmed this week.
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if that stands firm that means the volatility will come out of the market. thatad: you're making prediction before we got those terrible employment numbers. first quarter of next year. i think a central bank needs to make credibility central. there's a fine line between buying time and maintaining credibility. move this doesn't year it will be a real shot in the arm. really losing credibility. i think the fourth quarter is still on the table. it comes from a very very low base. that jobs report did not look good. the unemployment rate has been consistently falling. for the central bank to come out and make a case around the even if there is
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somewhat of a slowdown. the context is very important. it actually has to move this year. that is why we are sticking to the fourth quarter. we just have one economist. saying they're going to be cutting the cost of borrowing. is whether they can relax. you and i had a conversation about a month ago to the day the key gauge of inflation. that provided the reserve bank to move because we are inundated election cycle here in australia. they did that and it was
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contrary to expectations. i think now they will sit on their hands and they will see the impact of that the good news there has been a big response among the investment markets in the uncertainty at the beginning of the year. as to where the reserve bank was going. now love a large investment banks are moving the cash rate forecast down. to about 1%. we are about 175 basis points at the moment. i don't think they actually need to cut to that level. they can buy time. they can let the election take place. another person price shock downward. they've donebeing the job. they will sit on their hands and they will wait for the others to confirm that. rishaad: a quick word on investments here.
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we haven't got very much time. we are focusing on smaller australian companies. doing a lot of research there. the $1 billion market capitalization. rishaad: great talking to you. we're off to the chinese province told the red hot vision of the future of that economy. the second of our three-part series on that. this is trending business. ♪
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rishaad: we're looking at the economies of these chinese provinces. a population equal to the whole of malaysia. its gdp rose 11% last year. tom mackenzie reports that it is seen as the future of the chinese economy. chongqing the city of economic growth. this city of 30 million people on the banks of the yangtze river. up by theng held chinese government as an example for the rest of the country. its economy rose 11% last year. in one of china's fastest-growing regions. it is the world's largest producer of manufacturing stocks. it is also china's biggest maker of cars. the country's leaders are so impressed they've compared it's economy to the cities favorite dish. major challenge has been how
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to accommodate the migrant workers the flock to this city. building subsidized housing. the government took a gamble. he could've cashed in by giving this to everyone. today spends read $8 billion. tois helped people like her work at the fort factory and have affordable housing. more than $600 a month. but only pays about $80 in rent. >> i am from the village. it is not affordable for me to buy an apartment in chongqing. integrating world migrants has given the city workers for its industries. itscity also benefits from
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industrial production. there is a major port connected to railways that run only to germany. it can count on cheap wages forever. labor costs are lower in the provinces. chongqing is hedging its bets. encouraging greater automation through the use of robots. several years ahead of the decision. agilityg's economic born from the city's desire for economic growth. they want the rest of the country to take note. tom mackenzie. rishaad: coming up next, chinese technology companies are starting to look at their
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balance sheet like apple. that should bring a smile to investors faces. opening inthe market shanghai and here in hong kong. the opening numbers right after this break. ♪
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rishaad: asian equities on the upswing again. u.s. isllen signals the not ready for a rate hike just yet. ofe for a third day increases. jumping the most in three weeks. janet yellen was speaking. asian equities gaining today with the bull market. raw materials closing up 31%. above the january lows.
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mentaling from oil to tarnishes their as well. hillary clinton saying she is the presumptive nominee for president. to be a majorn party nominee in the united states. she says there's still work to do. ahead of tuesday's primaries in california and elsewhere. bernie sanders is vowing to stay in the race. getting straight to the open for asian markets. juliet: let's take a look at how those asian markets are opening up. the hang seng is certainly following suit. a gain of 7/10 of 1%. property stocks are moving higher. coming through in shanghai. some of the hong kong numbers as well.
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the market in shanghai also opening higher. closed yesterday for a public holiday. with have actually started to see other activities. -- janett yelling's yellen's comments. the philippines has come online. a few of the stocks we are watching in particular. citigroup raising its short-term iron ore outlook.
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shanghai prices are up. real estate is higher by 4/10 of 1%. just having a look at that. the 10th of 1%. his interest rate decision. record lows of 1.75%.
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rishaad: shanghai shares are up after falling on monday. the consternation of markets. it's not just the day-to-day volatility is causing concern. it is also the deeper trading activity. how these stocks are hitting the economy. >> a little bit of both. the stock market is having some impact on the economy. it is not have as big an impact on the real economy as we feared. happening is a slowdown in companies going public. brokerage trading houses and the like. a decent cushion for growth. there's no doubt having impact on the margins for sure.
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financial services is a big gamut here. how does that work. does that help the overall economy? >> is more than just doctrine. the wider services sector. the commodities bubble and asset bubbles. we have another equity rally major one. does that help the overall economy? year one of the planks of the stock market rally was the underlying growth in that sector. we had some potential game changers coming back.
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to june 14.n is that would put a bit of a rip open the sector. an increase in gdp. after the fundamentals in the negative sentiments. hard to see a stock market rally taking off. go to volumes of the moment. up by about one quarter of 1%. what it does. let's get over paul allen in sydney. surprisingly strong growth in sydney. paul: the board is going to earn
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its pale next couple of months trying to figure this one out. strong incredibly numbers for the first quarter. once we drill down into those figures we saw most of it was the price was up during that. as well. the survey question over the gdp figure. the same question lingers about the cpi numbers we got. it is that the prompted to cut the cash reserves. beinge same question asked in the that was a one-off. the 26 economists surveyed. just one brave economists predicted they will cut the rate
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all the other all say that they won't. for july as well. actually get another set of cpi figures. whether there is a trend there. rishaad: thank you much. he is not in the stands pat camp. he will be along with us about half an hour. apple is a hit in china and not just with consumers. apple's strategy of borrowing to boost returns. said to be raising another $2 billion. is doing very well.
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there are many sitting on $11 they are a very that is what we expect to see. as they buy back shares. it is had a very very busy year on that front. estimates of headquarters with a missed estimates. there onths ago management team bid to buy out their lossmaking video streaming service.
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it would get off their books. after one person died from bad advice from cancer treatments. that was all blamed on the company. they had look at the advertising campaign. it is been a very busy year. so how do those shares buyback work anyway. they're still bad news out there in the market. margins are being squeezed. wire banks actually eager to lend them more money. why would you give money to an that.ry like they're not a lot of places in china to really lend your money safely. we talked about the sony times. blue chips stocks like that are ready have $11 billion in cash.
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about 500 million u.s. dollars per quarter. rishaad: thank you much. we'll get a check on some of the other stories we're following. south korea is launching chemical companies. the corporation is diversifying its operations. but noimilar to the plan financial details. last month the company says it was in talks with several buyers. for westlake chemical. is creating a china focus fund after suffering in that mainland stock crash. allocating half the money from that $30 million dynamic opportunities fund that employed long-term economic equities
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strategies. the fund lost 60% last year. they remain bearish on china. india seems to be losing its liking for gold. fallen.imports have chinese to be the world's top buyer. the gold may pick up again in august. in india's festival season. international holdings is completing its takeover of that company. a major european sports team. the million for acquisition.
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aey are trying to build global sports industry and make china a football powerhouse. investing clubs and players at home and abroad. coming up next, we will meet the ceo of a website with a prodigious shakeup of the hong kong recruitment industry. this is trending business. ♪
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the un's atomic watchdog has seen indications that north reactivated its plutonium reprocessing plant. the international atomic energy agency says that it seems that showed new activity at its reactor.
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bit more plant in 2007. he began renovating it after a nuclear test three years ago. iaea inspectors were kicked out in 2009. they did not say where the satellite images were taken. saudi arabia's banking regulator is said to be preparing a crackdown on banks in that country. following interest rate submissions. sources tell us the saudi agency has written to the banks warning them about submitting rates that are below what they are actually willing to lend that. the real funding costs. it seems that the banks are listening. beenenominated loans have produced. an online backlash over its activities. singerice of pop
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prompted an angry backlash in chinese social media. some calling for a boycott of like on products. page to her facebook criticize line calm for bowing to such abuse. powered by hundred 50 bureaus around the world. this is bloomberg news. rishaad: plans to shakeup of the recruitment industry through algorithms and other activities. they also held company sue flatscreen tvs. have you spot this opportunity first of all? >> my background was in headhunting and recruiting for some of the banks. going through hundreds of resumes manually. because can see how much time it take.
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some elements of relevance scoring. first and foremost to the relevant candidates for any given position. rishaad: so how did you develop your algorithm? you run a scan through on my resume. >> the candidate would actually come to us and we would upload resume and take the information is that is relevant which then scored against every single position that is available. would get a score between zero and hundred for every single position. you have to manually take off anything. we build a profile for you. match that with the specific requirements of the employers that they've already given us.
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we spent 18 months developing the algorithm. the software engineers are analyzing over a hundred thousand resumes to actually get that calculation in place. by 50e been validated recruitment professionals. -- we reflexively you would use as the normal distribution of the workforce. not only junior positions but other ones as well. senior analysts. highalue is in the turnover. accounting and i.t.. we get a lot of applicants relevant sorting. tell me about some examples of we haveoming up to you over 72 companies at the moment.
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some household names across the area. is one. express having difficulties in certain areas of recruitment. to go out and invite the most relevant people from our entire database. to apply for those jobs. we can make them more likely to apply for those positions. what about the feedback from employers? we don't try to do is to promise you are going to get a lot of applicants right away. the quality of applications that you get. that we taking a page from the employer side. for the job seeker it is equally important as feedback we've had from them is that the process is easy and the invitation is very targeted.
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we've had more than 20 people come through. we launched in march and we have many customers as well. specifically there are getting those unemployed people into jobs people that already work into jobs that maximize their skills. it's not just about the score that's the starting point. it is about building on that. the skills that they want to acquire in the future. we can scale the matching technology quite simply. and try to push that into the hands of his many employers as possible.
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itself webs board want to look at the emerging markets in the growth of the middle class. but also growth in mobile phone usage. they don't really mobilize optimal services. what about cross-border activities in certain areas and job functions we have a talent shortage. where you can feel skill gaps. for the relevant future. we are for a job posting model. i think the future having raised that. a thousand u.s. dollars.
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how to really help that going forward. the main expertise in one of these emerging markets. rishaad: buzz feed canceling its deal to run donald trump for president vance. we will find out why after this. ♪
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rishaad: buzz feed had a deal to run donald trump ads on its website. it is comparing it to cigarette ads. >> he said in a memo to his don't runthat we cigarette ads because they are hazardous to our health and
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donald trump ads are in the same category. he said the tone and substance of his campaign are unique in the history of modern u.s. we had some reactions but the relevant national committee did say that they never intended use mostly the first place. -- views buzz feed in the first place. ironic in that they have not ruled out taking money from a candidate currently under investigation by the fbi, hillary clinton. apparently she has the nomination in hand.
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a lot of talk about shattering glass ceilings. because of hillary being the first woman to lead a major political party in the u.s.. we've also had on the other side someone saying, something stinks. calling it before the california primary? tuesday is the day for several primaries in the united states. so some of the supporters of bernie sanders may not come out to vote. it looks like hillary clinton versus donald trump getting to the white house. and control of the biggest military machine #got help us. so there's a range of opinions there. rishaad: equities across the border on the way out.
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hang seng is up by 9/10 of 1%. up next, going against the consensus. find out why our guest says australia will cut rates even as other economists that the opposite. ♪
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from our studios in new york city this is charlie rose. begin with the leak in politics. hillary clinton when on the offensive delivering a foreign policy speech that was highly trump.l of donald mr. goldberg writes frequently on foreign affairs for the atlantic magazine. may people are saying this very well be a decisive factor change moment. jeffrey goldberg: i agree. where shee moment went on

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