tv Trending Business Bloomberg August 24, 2016 9:00pm-10:01pm EDT
veteran investor mark moby says helicopter money will be that boj's next move, but may not have the desired effect here and follow me on twitter at @rishaadtv, and use #trendingbusiness. a lackluster session in the u.s. , slightly to the downside. here is david. we are not seeing a lot of price action. equity prices, volume, orex, the dollar on the downside. equity markets mixed, volumes not quite there. japan, but a pickup in australia. in china, we will be watching reaction there. the banks report later on.
hp reported last night, very disappointing. how theve a look at tech and computer makers are doing. it was disappointing. you look at sales for hp, personal computers came in flat, printing revenue declined 14%. that is on top of 16% last quarter. sector inook at the taiwan, you are a competitor to hp or eight supplier to hp.
have a look at some of the decliners. have a look at some of the gainers. decliners are doing this, 1.7% there. you get the picture. that is the story so far. we are counting down to the opening of markets in hong kong, earnings and focus. rishaad: an absolute tear when it comes to australia, despite a heavy loss. the numbers ring up here and why is stock moving to the upside like it is? ,aul: i'll give you the numbers $1.3 billion net loss, in line with estimates, and perhaps why we are seeing share swing up. theirave finally exited home improvement adventure,
which did not work out well for them. theyree separate deals, got rid of the last of those assets, which improves the bottom line by $380 million. also exploring options to sell easy by. it has a turnaround program that will take them three-five years, so perhaps the market saying all the bad news is out of the way. shares up 7% despite that heavy loss. a dividend of 33 since per share. south32,tell me about how did they fare? paul: full-year underlying profit, 130 $8 million, down 76%, we could prices, but still better than expected. revenue $5.8 billion.
looking forward to fiscal year 2017, capital expenditure and guidance unchanged. shares off a little this morning, but south 32 paying its first-ever dividend of one cent per share. beating, off worse than of that is after a net loss $21 million. rishaad: thank you for that. right. oil, let's have a look at this one. let's have a look at china's oil giants outlook. how bad are things. >> pretty bad for these oil giants. the worst ever half-year results for petro china since they listed. petro china barely avoided a loss in the first half.
forget the recent rally in crude , near $50 a barrel. strikinganies pessimistic towns and their outlooks for this current second half of the year. international and the mystic uncertainties remain and prices face headwinds. explorers have been facing high production costs, aging fields, and low prices. july oil output tell to a five-year low in july, leading to record crude imports. rishaad: let's get to it. how bad were they? >> let's look at the numbers. petro china's net income just $8098% to million.
the only thing that saved them from a loss was a 25 billion yuan gain. it was worse for china's biggest offshore driller. of 7.7 4st a loss billion yuan. it booked a 10 billion yuan impairment on assets related to its canadian oilsands operations. it did provide a special dividend. fell inthese adr's reaction to the result. rishaad: thank you for that. a more detailed look later on in the show. tweet us your thoughts at @rishaadtv, include #trendingbusiness as well. let catch up with some other stories. hp results for the last quarter were a beat, and outlook fall short of estimates. $.34 touarter profit at
$.30 a share, falling short of estimated $.40. quarter, hp profit at $.48 a share, topping estimates of $.45. shares fell an extended trade. brace yourself, that helicopter money is coming to japan, so says mark mobius. he says the policy could be rolled out next month. says the bank of japan will before to contemplate the move despite repeatedly ruling it out to put money directly into the hands of consumers. that after additional easing measures have caused people to save. he is worried that the policy could fall flat. >> they will engage in helicopter money with great care and reluctance.
if they do it to carefully, it won't have the desired effect. this is the dilemma they are facing. rosalind: in italy, 159 earthquake. buildings collapsed in small mountain towns. it is feared many more victims may be buried in the rubble. the trimmer cause shaking that could be felt in rome 100 kilometers away. also on her website, china's shadow finance sector echoing precrisis u.s. loads more do, on "trending business", including one of the world largest software companies is needed in order to bridge the digital gap in asia. waiting for brexit is like waiting for godot. weakening further before it happens.
emerging markets have had a good run, but is it coming to an end? next guest is still finding value in emerging economy assets. she joins us now. thank you for coming on. and in whats value parts of the world are you talking about? >> in general, we like emerging markets. them,is still value in especially earlier, there weren't people with appetite to take on the markets. ,ow there is more appetite
especially when you have negative interest rates in developed markets. emerging markets start to look attractive. thisad: this is part of search for yield around the world, isn't it? >> it is, yes. this is what we are dealing with. rishaad: where are you looking? it is a broad church, isn't it? >> it is. indonesia, we think indonesia offers good value. if you look at a whole spectrum, some parts of emerging markets right south africa and turkey, there is political turmoil and political risk, however if you look at them, they are still offering pretty attractive yields. some investors are willing to take that risk. rishaad: right.
well, let's talk about china. where do you invest if you do at all when it comes to that? we seem to be getting some growth, which must be real sure in you to some extent. >> i think the big thing about china is now that we see a great deal of stability, that is where the appetite for emerging markets comes in. an stabilityave surrounding china, there was greater fear around emerging markets, but with china data stable and we see policy really supportive of the economy, i think that adds a bit more cushion for emerging markets. well, especially when we might have this shanshan feng a with hong kong coming up. i'm sure you will be taking advantage of that. the shenzhen market as a window into china's new economy, isn't it? all these steps
that china is taking, whether connect,hai, shenzhen it is important to look at the bigger picture. --is moving towards cap role capital liberalization. that is when the things we are looking at for china. rishaad: right. we will have to wait and see what happens, but the elephant in the room has to be what the fed does next. we will be watching closely what janet yellen has to say at jackson hole, won't we? absolutely. especially because over the last week or so, we have heard a lot of different fed speakers, dudley, fisher, talking about putting september on the table, which is something the markets have not been pricing, so the markets are waiting for what janet yellen has to say and whether she is in that camp in saying that september is back in play. for now, the markets are still
thinking that september is not on the table yet. rishaad: the thing is they have been talking out of school, haven't they? is this a way of putting pressure on her to actually move sooner rather than later? i think in general we will see -- it is hard to tell if it is pressure. we saw pressure early in the year on janet yellen in terms of putting hikes on the table sooner than expected, but she came out and was a lot more dovish than a lot of her colleagues, so in general it inws that there is a split the fed, and i think that is not surprising, but in general, we will see what janet yellen has to say, and what janet yellen has to say speaks to the markets more than her colleagues. rishaad: absolutely. meets, they the fomc
boj meeting in tokyo as well. expect -- marks mobius does expect helicopter money and all by name i governor kuroda, but he does not reckon it will work. what is your view? i think the boj has been one of the harder ones to predict this year. we have been calling for some sort of easing since the start of the year. at the last meeting, they were disappointed. they did the bare minimum with etf's, but we are expecting more. i doubt they will name it helicopter money, but we will see some form of it coming soon. were dollar-yen is now, we have to see something from the boj. rishaad: final words about brexit, a bit like waiting for good tdot.
they could do a bad deal, and that is the danger, isn't it? sterling gets weaker, doesn't it? >> it does. we are quite there is shawn stirling. we are quite bearish on sterling. there is no president for what , so thesee or expect currency will bear the brunt of that unknown and the fear of the unknown in the market. rishaad: thank you very much indeed for joining us. we will look at some of the business flash headlines. morgan stanley unit fined $2.5 million in hong kong. regulators saying the banks local securities division failed to avoid conflicts of interest. to meetfailed disclosure requirements related to shortselling orders.
to an stanley agreed independent review as part of the settlement. it is still a long road to recovery at glencore, posting its worst profit in history. pricesmping commodity causing profits to drop 70%, $300 million. aftert about $400 million hedging future gold production before the price rally. it may resume dividend payments next year. shares in london down by more than 3%. monsanto revealing it has withdrawn its application for indian approval for its neck generation of seeds. generation of seeds. monsanto said it was reevaluating its is this in india. the companies saying it all the application last month because of regulatory uncertainties. up next, goldman sachs making fx
rishaad: this is "trending business". investors getting ready for janet yellen's speech on friday, but some need to be more prepared than others. pound, therade the yen, and the kiwi dollar need to watch out for surprises. theyese are the currencies could be most vulnerable if there is a surprise from janet yellen. the three currencies have been the most sensitive to changes in two-year interest rate differentials between the u.s. and respective markets. we have seen in the past three , that yellow bars are the rate differential.
you can see the differential for the dollar-yen would be u.s. minus japan interest rates. again look at how that has been very closely correlated to that differential. these see this means that three currencies, the pound, the yen, and the kiwi, could be most affected. goldman sachs saying in the event of a hawkish statement, attend basis point move in favor of the dollar, the yen weakening, and the dollar would go 1.3% higher against the yen on such a move. take a look at this of their function on the bloomberg. you can see the last time that the fed moved in december that they kiwi dollar, the yen, and the pound were the most affected
there. investor sentiment has shifted back and fourth in recent weeks with the currency volatility gauged starting to surge again this month, having already touched a one-month high. how aggressive the fed will be in its of roche to monetary tightening after it raised borrowing cost in december for the first time since june 2006 will be key in what these currencies will do next. according to goldman sachs, the to a one basis point move in the rate differential being very pronounced for the pound, the yen, and the kiwi dollar, followed by the aussie dollar. rishaad: thank you very much indeed for that. i look at some stories making headlines. dropping 3% after two patients were invalidated in the u.s..
the patents were challenged by two rivals who want to make generic versions of the drug. cn power reporting an increase in profit, $541 million. revenue was 36% higher. the government aiming to double its nuclear capacity by 2020. a hong kong developer beating two rivals with a $180 million offer for a plot of land. they will pay almost $800 per square foot for the land. that exceeded market estimates. property companies have been vying to get their land banks in order.
on this weeks edition of high flyers, we spoke with someone who had to take over when her father died. now she runs a multimillion dollar company that supplies singapore airlines, marriott, burger king, and others. food safety is number one in the food business. we want to ensure that whoever eats them has assurance. one of our core by use is the weegrity, so it is a trust want to have with our consumers, with our customers. that's why we set up the labs to do research and development, auditory -- quality assurance and quality control. , and once the test is passed, we will send it out and distribute that. rishaad: you can catch that
contemplate a policy it repeatedly rejected. treasurer scott morrison says her run without recession is complacency towards the economy. unemployment about 10%, mortgage rates at 18%, or spiraling inflation. let's have a look at what is happening as we get to the hong kong open. shanghai also here. moving more to the downside. margin deaths have been climbing up quietly. we are back to levels and february. -- in february. the big bang starting to release their results. construction bank out with earnings. before i get movers we are
following in china, the other big macro story is the pboc. this money market tackett, 14 day repo rate, which a lot of people scratching their heads. it is using that 14 day to inject money into the system, 220 million renminbi injection billion renminbi. important,that is people are wondering why they are turning to a longer view in the money markets. this is the initial reaction we saw when they first hit it yesterday. there was a spike up for basis points on the chinese 10 year yield. the 14 day repo rate is the highest.
3.1 percent. curb excessto leverage when it comes to trading in the fixed income space. keep your eye on those rates. as promised, earnings we are following. these three are coming out with earnings fairly representative of their own industries. have a look up the ones did come out with earnings. cnooc reporting a loss here in
hong kong. rishaad: thanks for that. everng up on these worst half year results for oil giants in china. let's get more on these earnings. what is the outlook? is the worst over? >> it has been crazy this year. we have switched between bull and bear five times. these chinese companies, petro china and cnooc, they are not taking anything for granted. petro china singh headwinds for prices. of them are basically putting it on macro economic global economic outlook. they see an oversupply continuing into the rest of the year. even though we have seen prices come back, they are being very cautious.
rishaad: one of these do benefit from being in the downstream area, right? that's where you want to be really. >> petro china better than expected refining returns helped them to whether this better. they each out a sliver of a profit. eathey they got more than $3 billion off that. that really save them. cnooc had flagged this earlier. the canadian assets took at 10 billion won write-down on those. issued a dividend, and petro china also issued a special dividend. cnooc have been able to cut the firsta third in half, and they are on track to beat their cost-cutting
estimates for this year. rishaad: we had spending cuts from all the majors. this is down to prices falling. how has that affected production? crude is down 5% so far this year. it is also in the world's top five producers, so as production falls, it is tightening the market and helping to balance it. while they are gloomy about oil prices, this pain -- is putting au.s. seething and a floor in the oil market. >> exactly. with output falling, we might see a little upside. rishaad: thank you very much indeed. that is the state of chinese oil companies and chinese economy and hugely important and growth rate is watched around the world.
economist should take inflation out of the equation and look at nominal gdp and not real gdp. than our nextask to guess -- guest. >> in contrast to the usual acquisition that china pumps up its numbers, this is about moving the numbers. rishaad: we should define nominal gdp. >> basically gdp but without the takesor, which usually off a little bit to account for inflation. in a deflationary environment, it can add something. let's put away the real number and have a look at what is happening on the nominal front, and things start to look better in china, a bit more than one
percentage point better in fact, so maybe that is a better gauge of where the economy is. rishaad: it's all about these alternative measures. does this all explained then is notr why the pboc adding to its stimulus? >> we have not had a triple r cut since february. we have not had the benchmark interest rate cut since october. why has the pboc been on hold? maybe it is looking at these nominal standards, factory inflation is motivating -- moderating. look aes are starting to little bit better and nominal terms, so do you need further stimulus? thank you a lot for that. looking at the state of play when it comes to the chinese economy.
china saying there is still a chance that the president will hold talks with shinzo abe . the foreign minister saying the an "good must create atmosphere." there are concerns about north korea's latest missile launch. the united nations security council meeting in emergency session discussing north korea's latest launch. south korea saying the missile flew 500 kilometers, the longest distance achieved by the north so far, putting the whole of south korea and part of japan in range. one of the world's longest isning armed insurgencies officially over after columbia afterd a deal with rebels five decades of fighting, hundreds of thousands dead, and many more displays. the agreement legitimizes the
political wing, allowing them to contest upcoming elections. thailand is a standout emerging market this year despite the prolonged political uncertainty, attracting $13 billion in foreign investment, second only to south korea when it comes to emerging asian economies. investors are get accustomed to the risks i suppose. >> it does seem that way. if you take into account that thailand has bounced back strongly after every coup, after any political setback. here it is outperforming other emerging markets, $13 billion so far this year, stocks and bonds denominated in local currency. i want to show you two charts in particular. the local currency is up 4%.
the other chart shows how hai assets have been. 10 year line shows how yields have been falling, down 43. talk about brushing off the coup, the muslim insurgency, a darling of investors, pushing for constitutional changes that would strengthen its influence. and reward, sok investors upbeat about the prospects. ofhaad: this might be one the reasons we have the currency on the way up. it may not be good news in the longer term. >> you are right. the central bank is sounding a note of caution. bah gets stronger, it could derail recovery. bank of thailand says it is
monitoring develops closely. exports on the other hand have fallen in 16 of the past 18 months. as of now, the bank of thailand has only resorted to verbal intervention. currency has been rising in line with other currencies. well, we could see the currency go stronger. rishaad: thank you very much indeed. ahead, southeast asia's digital economy could be worth $88 billion in 10 years. the regional president of sap is with us next. ♪
unemploymentuth rate is nearing a 20 year high with more than 70 million young people searching for jobs. that is the equivalent of the population of thailand. 150report saying about million young workers in the developing world live on around three dollars a day. rejected demands for a pay rise for workers saying there is no chance of agreement. they have called a one-day strike. no talks are planned and it has enough reserves to meet any shortfall in production. have a power plants combined 13 million tons of coal in stock. a conglomerate group is in a fight that could delay assets. comes after an $18 billion
spending spree because of low commodity prices they are locked in arbitration over plans to sell their power plant in western india. let's have a look at the digital economy in asia with one of the region's largest software companies. scott russell is sap's southeast asia president. you are talking particularly about southeast asia and this digital divide. tell us what this is. is prettyital divide simple. if you think about the economy and the millennial population of southeast asia and the way the young generation are operating. in indonesia, the average age is 28. the digital divide is businesses run in the way they have in the
past or do they jump to the new, digital frontier engaging truly digital way. there is a divide between the reality of what technology enables today and the way business is currently run. rishaad: what you are saying is that on the one hand some companies may be embracing digital and digital means of delivery, but they are not embracing it properly. on reddit of a bold than a wholesale adoption. rather than a wholesale adoption. at the way my teenagers interact with technology. digital is a part of their lives. in awe think about it
business context, it can't be a little step in. it might be through a web channel or mobile application, but to truly embrace digital means it has to be holistic for the enterprise come of way you engage with suppliers, with partners come with customers, with employees. when you do that, you truly become a digital enterprise and can adapt and embrace the digital economy, which is growing very rapidly around the world, even more so in southeast asia. can you give me an example of one of your clients for instance who had this halfway approach and how it transformed their is this? their business -- their business? >> on a global scale, we have a great customer and partner with under armour.
they have done over the past four years is transform their business to interact with their customers through digital technology, interact with under armour about their products and to combine that online, but they're supplying sure to logistics, making they have the right product in the right locations of the right time to meet customer's needs. what that does is create a circle of interaction and better service for your customers, creating better loyalty upgrading better outcome. where theytive is have a mobile strategy where they interact, but then they back off with respect to systems inside their enterprise. that is the opportunity. we believe that through adoption
of digital as part of their business all the way through that they can leapfrog. i think of the economic growth cannot here, companies only compete locally, but globally, very quickly using digital means. rishaad: right. you guys partnered with alibaba in china. preferred route, is in it, partnerships rather than direct competition? is that the approach you are taking in southeast asia? partnerships and if you take a snapshot of the a sean market, there is an enormous small and medium enterprise market here. there are conglomerates that have spearheaded industry, and always the state owned
enterprises, so we have a dynamic market. operate inthe way we empathy with our partners, customers, and a collaborative business model. sometimes that is through partnerships to help us get brett and reach and make sure we can help -- brett acrossgrowing rapidly this region in southeast asia and asia pacific and japan. is there anything unique to the way you do business in southeast asia? other places?t to let's talk about indonesia for instance, what about cloud computing there? how much room for growth when it comes to that and what about data security as well and the ongoing discussions you have with the indonesian government? >> great questions. , cloudf all, to remind computing market is growing 16%
around the world. insoutheast asia and indonesia, it is growing quickly. we have to be conscious of the environment we operate in. indonesia is one of the fastest-growing mobile user an internet user populations in the world. ish its population size, it a relatively young population that is growing up with digital means, but we have to be aware that there are barriers around infrastructure in certain parts of the country. we are partnering with government and industry to ensure that not only our tech knowledge he is enabling the big localis, but supporting communities and providing that social benefit as well. that is probably some of the considerations we have here. it's not just about making sure our cloud services and digital solutions are available around the world, but they are
people have received, you have demand spreading to these areas. anything, australia is starting to join the rest of the world. had interest rates as low as everybody else for as long, but we are starting to get there. people with money are benefiting rising -- from rising markets. how are people finding the money when living standards have fallen after the in the of the mining boom? this is where it comes down to this widening inequality in australia. big l anally it is a carry a good safety net. -- is in a galaxy. that interest rates
are so low that you could really bar row quite easily and quite cheaply to afford these cars. australia has a debt to income ratio of 196%, so i think people are just racking up debt. money, it is not so worthwhile to keep it in the bank because you are not getting a lot for it. thank you very much indeed. joining us from sydney looking at the purchase of high end cars. we may not be a loan after all. cosmossts scanning the have found the planet next door, if you can call it that. it is the nearest star to our solar system. waterin the zone where haslife is possible, and it
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: billy eichner is here. he is the creator and star of the pop-culture game show "billy on the street." tina fey, will ferrell, and michelle obama have all made appearances on the show. the fourth season is currently airing on tru tv. the guardian calls eichner "a cyclone of snarkiness, pop-culture rips and unbounded energy." here is a look. [video clip] billy: hey guys, i'm billy eichner. sir, for a dollar, spin in a circle if you are excited for the new james bond movie.