Skip to main content

tv   Trending Business  Bloomberg  September 13, 2016 9:00pm-10:01pm EDT

9:00 pm
>> it wednesday, september 14. this is trending business. youe going to be live from -- for you in tokyo, singapore, and melbourne. samsung trying to manage the note seven battery crisis, limiting the battery charge to avoid overheating and fire. the yen weakened sharply after slipping through one of two overnights.
9:01 pm
the stronger yen has made sake go one of the big losers up the day. a four-year profit outlook by 58%. taiwan and malaysia have come online so we go to juliet with a look at what is happening. >> not a great day again for investors in this region and we have seen those markets coming online join in the selling we see across most of the region. that big slump coming in from wall street and the u.k. leading those declines. that we couldts actually see negative interest rates pushed even further into the boj policy. we are seeing a lot of those banking stocks coming under
9:02 pm
significant pressure. despite that big fall we have seen in a lot of commodities, the australian market is flat. even trying to push up into the upside, crude oil plunging glut in ther that crude market could move through. we see some upside there. up by almost 10% there. .6%.ealand down this is the longest losing streak we have seen since the start of the year. the southeast asia and markets also being sold off on the open. just having a look at what prices have. we also see it in emerging-market currencies. a plunge coming through. it is actually the weakest emerging-market currency we are seeing so far. down .6%.
9:03 pm
the japanese yen is holding slightly higher in the morning sessions. slightly weaker now, down .2%. are seeing this big selloff in japanese banks as well. angie: japanese banks are on their wildest ride as investors decide whether the boj's next move will help or hurt lenders. we had garrett allen standing by and how relative -- how volatile have the swings been? >> very. took a look at the spread between 50 day historical and we compared that .o the wider topics index
9:04 pm
i guess it comes as no surprise to people that have been watching banks this year, we started off with a global stock route. january 29, we had the bank of japan governor come out and shock us all with his announcement of negative interest rates. since then, it's been policy meeting after policy meeting. japanese startup banks have been gyrating this year. it has not all been downward either. where a two-month period banks gained. the bank of japan was under suspicion to try to raise long-term interest rates but the mood on that has kind of shifted again. we see bank stocks fell again and continue to do so now.
9:05 pm
the discussions he's having with an testers at the moment are all about external factors. this is really not even interesting at this point. everything is being driven the bank of japan. >> is this a short-term view or whatis the anticipation of rates will do for banks in the future of japan? >> it boils down to what the central bank will do. inhave the meeting coming up the comprehensive review of that. there was an article this morning that said the bank of japan is considering deepening negative interest rates. it can be bad for banks. several percent down across the board in banking stocks. at the same time, the economists are split.
9:06 pm
the chief economist told us last is they main scenario expect to see more of a .echnical adjustment very hard to see what will happen. japanese bank stocks will be impacted either way. the only certainty is uncertainty. thank you so much for that. him son is apologizing for the faulty batteries that have prompted the recall of smartphones around the world. it's also taking technical steps to manage the crisis. heidi has the latest on this.
9:07 pm
>> if you are someone like me and you like to see a full charge at all times, this would not be acceptable to you because samsung is planning to roll out a software update prevents the phone battery from overheating by limiting battery charges to 60%. a korean newspaper carried a samsung add on tuesday and -- announcing the software of a. the company something measure to put consumer safety first and has apologized for the inconvenience. what isn't yet clear is whether this will be carried over to overseas market users and whether is a mandatory update. they are also in talks with mobile carriers. >> but apple is also following suit your because also
9:08 pm
experiencing technical difficulties. >> somewhat less dramatic than samsung but apple users have been taking to social media to complain about the ils attend update. they say the devices go straight to a screen prompting them to plug into a computer so having to update through itunes directly through the phone and it renders their devices useless. apple has apologized and said it affected a small number of users in the first hour of the update being available but has a since been revolved -- resolved. a pretty good day for apple. we saw the reaction in the stock overnight after that lukewarm reception to the iphones evans stop t-mobile says they have received four times as many orders for the iphone seven then it's predecessors. the sprint ceo saying also four times higher in terms of preorder demand than a year ago.
9:09 pm
these numbers are closely scrutinized by the media and analyst because apple hasn't said it will be releasing at the for the first time. they say this demand really shows that the core user is loyal to apple and it somewhat refreshes excitement around apple's product offering what was in asked reaction last week. seems like it's the internal changes that consumers are really hungering for. think you for that. we will take a more detailed look at those apple complaints later on. we want your opinion subtleties tweet us your thoughts. also include the hashtag #trending business. let's take a look at the other stories. the boj remains in focus. flynn majority of economist we spoke to expect
9:10 pm
more stimulus from the bank of japan next week. 23 of 43 see the bank easing money through policy at its board meeting next week. 52% see a deepening of the negative rate policies. the bank's focus will be on further negative rates now that its asset buying is reaching elements. angie: wells fargo is no longer the world's most viable bank. shares slumped more than 3% overnight, reducing market value to just under $237 billion, less than jpmorgan. it looks like the global oil supply will persist well into next year. the international energy sees crude continuing to accumulate through 2017, which makes for a
9:11 pm
fourth consecutive year of oversupply. demand from china and india weekend in the third -- weekend in the third quarter. angie: thank you. looking ahead, the outlook for oil. why a price recovery could be still a fair way off. becomeup next, japan has one of the riskiest places to hold a portfolio. we will ask why. this is bloomberg. ♪
9:12 pm
9:13 pm
angie: the offer may sweeten for monsanto to create the biggest seat and pesticide maker. sources say they're willing to raise the bid to 129th dell -- $129 a share.
9:14 pm
monsanto's board is to discuss and potentially approve the bid on tuesday and an announcement may come at any time. the talks could also collapse. plans to accelerate expansion in china and will open its first store in india. it aims to boost sales by almost fivey opening for to chairs. sales through august were more than $30 billion. ikea once to top $50 billion by the end of the decade. the atlanta fed president dennis lockhart. down in february after 10 years. janet yellen and never dissented from the majority. monday, he said higher rates
9:15 pm
should be discussed at next week's policy meeting. he also said there is no urgent need to move. a committee of non-fed to directors will look for lockhart said that lockhart's replacement. our next guests says volatility may spring into all asset classes the fed decides to raise. olivier is md of asia-pacific. it is a good kind of category to be in right now because i want to take you into our bloomberg right now. it's like mustang sally, nowhere to run to, nowhere to hide. we have basically taking a look at equity markets. we are looking at the gold spot price.
9:16 pm
they are all down, yields are going up. equities falling with volatility return. >> we had an unusually calm summer and to be fair, we have the business complement. the vicks was below 12. the issue we had globally is central banks in the u.s. and europe and japan have been intervening into the market. the fundamental markets don't make any sense anymore. this is a perfect example where you need to use multiple that look at things differently. tom -- some technical, some fundamental. but you have to head your own bets. how are you doing that?
9:17 pm
the u.s. is kind of a safe haven. fundamentals are pretty good across the board. there are bad patches everywhere in europe but japan so this is the natural safe haven. all that's doing is driving cash out of japan and into the u.s. market. what we have seen also is a big danger going forward is that in the last 5, 6 years, they moved up the risk curve. they moved into alternatives, private equity, infrastructure. they have been basically slopping yields. what happens when interest correlation to rise, they have to deal with the portfolio. volatility doesn't really kill performance if you are on the right side of it.
9:18 pm
but correlation is what really kills you because markets are not supposed to move together. the equityhat with and bond market all this year. >> this is a problem for all institutional investors who have moved into liquidity. you'll have to sell equity, the most liquid thing in your portfolio. so you will see the biggest things in the equity market because of that now. angie: so that is why you go into alternatives i guess. not even gold. >> commodities have been yanked as well. we have central-bank as the markets have been absolutely correlated to anything the fed and central banks have done.
9:19 pm
problem is we are seeing divergence and we will see continued expansion of that divergence. like that is right and that will create volatility in rate markets. angie: what is the safest bet? >> the u.s. is still the safest bet because the fundamentals are supportive of you putting your money there. we are seeing for example the dollar rose against the yen. the yen went almost through 100. we even see that today. there is a safe haven bet on the dollar right now. you have geopolitical risk coming. september, october is a safe haven. later on, bryan singer
9:20 pm
will be talking about geopolitical risk and play there. how much of that are you starting to integrate, that thinking into your portfolio as well these days? we got it wrong on brexit. big surprise. you have trump and clinton and ken that. angie: that is the thing. that means if there is a trump how would you price in a trump when? what's it's the same thing for germany and france next year. nobody has priced merkel losing in her own state. angie: a critical loss. >> are we misleading the electorate everywhere? is that possible that we are so wrong? it could very well be and i don't think that is priced into volatility. would you price it
9:21 pm
in? what's you will see volatility rise tremendously. every time we see a poll that shows trump and clinton arnett, emerging markets are panicking. you have got to pull out of some of those risky areas because the uncertainty is growing. riding a bucking bronco is what it will feel like the next couple months. to see you.good thank you so much. next, the united states takes aim at china over farm subsidies. this is bloomberg.
9:22 pm
9:23 pm
angie: the u.s. is taking into beef against what it claims are
9:24 pm
chinese agriculture subsidies to wt zero. washington says beijing is unfairly supporting farmers to the detriment of american rivals. we have stephen engle's covering the background. cluck their taking it because they believe china is not living up to its pledges when it conceded to the wto back in 2001. on its pledges, price of four for a trio of commodities in week, corn, rice. we dan koren are a big staple of u.s. agricultural exports. with the west trade operations office is saying is the chinese isupport for corn and rice more than one hundred billion u.s. dollars more than what china said it would do when it entered the wto. this is the 14th complaint against china. wto,feel by going to the it's a more direct avenue in
9:25 pm
response to the claim that they're violating those rules. is the largest agricultural export. china is an increasingly large importer but there is trade friction between the two, especially in a highly charged political election year. big exporter. they say through tear of cut and remove result trade barriers, china has gone from a $2 billion year market to a $20 billion plus market. that sounds like a great situation. the backdrop to this is u.s. farmers have seen their incomes in commodities like wheat and corn. u.s. wheat prices hit a 10 year low in july.
9:26 pm
corn also in year a nine-year low. years inventories at a 16 high. also september 1. they're importing and exporting and selling wheat of what is the political risk ones we expect from china? >> you run retaliation. the ministry of commerce in china is expected to announce a decision this month are potential terrorists for imports of u.s. drives. basically an animal feed byproduct by production. the chinese thinks the u.s. is selling it at too low a price. they run the risk of angering china of course. the timing is perlis he says with most corn and wheat farmers trying to make ends meet. the u.s. has gone out and be rotated one of his best
9:27 pm
customers. coming up, a fast-paced competitive race. we will assess the working environment next. ♪
9:28 pm
hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a custozed message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business.
9:29 pm
you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. angie: top stories, try from this hour, the yen is continuing to weaken after moving the on the 100 to mark overnight. japanese stocks also on the slide and the yield curve is steepening with uncertainty about doj policy. as the primes minister sounds an optimistic note, saying japan is on the verge of escaping years of distillation. this time next week, we will be counting down to the latest statements. policy will raise the prospect of taking rates deeper into
9:30 pm
negative territory. that is a view echoed by the majority of economists we surveyed by bloomberg that said they see more stimulus coming. the stimulus has yet to prove effective. publiclyon has apologize for battery problems. remotelyys it will limit the amount of charge batteries can take on to avoid the possibility of over hiding and fire oryx loggia. a problem today in the markets. you're monitoring the market open in shanghai and hong kong. continues in china. often by .6% there on the open.
9:31 pm
despite that pretty impressive in china, noough hard landing anytime soon. in hong kong, up by .2%. the market rallied quite strongly and fell on the close yesterday. selling pressure because of the fact we looked in the iea, let in crude we are seeing could continue into 2017. australia up by .1%. new zealand continuing its longest losing streak since the beginning of the year.
9:32 pm
on the back of that comment from the news that we could in fact see the boj at its meeting next week go into that negative territory with rates. that is impacting the japanese banks at -- as well. we see the big eggs under significant selling. those other stock there on your screen, those are some of the smaller regional banks also being sold off today. having a look at some of the other movers and the region today.
9:33 pm
they have cut therefore your outlook. see fee holdings off as well. have a look at those , weng stocks in australia saw iron ore fall almost 3%. that's its biggest drop since july. not really a lot for investors to put their money into. angie.n't -- angie: if you were trying to figure out things on your trading up and you are trying to upgrade your apple iphone at the same time, you might have had a problem this morning. #ios10 is trending right now. some of the comments on social media have been complaints. we will ask what we are talking
9:34 pm
about here. what is the problem? >> the problem was basically some users who were trying to upgrade their software not plugged into a computer or finding their phones frozen. there were hundreds of complaints on social media that this glitch left users unable to use their devices. so they could download the and the devices shut down to allow the system to upload the software but if you didn't plug it into itunes through your computer, nothing happened. but if you are doing this in the middle of your commute and -- or at work and you were not connected to your itunes at home? saying i wouldn't rush to update just yet and posted a picture of what happens
9:35 pm
to your phone before -- or your ipod when you try and do this. .t's trending another tweet. of course to samsung's unfortunate situation with the note seven. have beenot of people anticipating apple would be the big winner here as samsung struggles with its competitive product. now apple is also having to eat crow a bit. to haveroblem appears been resolved. apple issued a statement saying we experience an issue with the upgrade process accepting -- affecting a small number of users during the first hour availability. the problem has since been resolved.
9:36 pm
that initially, apple resolve this issue. hopefully, further upgrades should be ok. , i'm going to self to wait. backup your system before you do anything with it i would say. angie: i will take that advice. making headlines, maintaining physical discipline while escaping from a protracted restriction is proving to be the toughest challenge for argentina's new president. they say the government may cut the fiscal deficit target, which they will present to congress thursday. he wants to cut taxes and open up new trade ties to bring growth back to argentina. hard toe working continue building strategic alliance with different
9:37 pm
countries around the world, we have one with china. we are working in one with japan, korea. we are working with the european union. we had the exchange for the first proposals. the one bombers have trained with korean and japanese forces in a warning to north korea. the planes flew from long after a nuclear test firing ballistic missiles last week. another test is imminent. china meanwhile has questioned the effectiveness of such measures. hasphilippine president offered more signals his turning away from the u.s. following a public's bout with
9:38 pm
president obama last week, he hasn't -- he demanded u.s. forces leave the southern island. -- what does it mean when tencent encourages internal competition? of reportingourse about this company, one of the key feedbacks we got is that it all constantly has multiple teams working on the same product. there were originally three teams working on a mobile instant messaging app and alan john's keen -- team came up with we cash.
9:39 pm
we see the strategy replicate across the companies, product lines. they have three teams working on virtual reality, six teams working online streaming. the list goes on. there really is this culture of trying out to see who comes on and were actually does a better job. there's something about staring or competitor in the face and maybe rubbing shoulders with your rivals in the hallway of that building. what kind of other mechanisms are there to really trigger this competitive culture? >> at culture is drilled into their minds. they aren't kurds to snuff out for -- competitor products and basically remained on the edges.
9:40 pm
there is quite a nation on top for example. these monthly meetings where who have hundreds of people attend to discuss all these products. >> you want to encourage competition but you also want to encourage collaboration. that's a bit of a disconnect there. how are investors really playing into this culture? >> i guess you can tell there is a vote of confidence in the company because they have been doing well. there is a lot of tolerance to experiment with this kind of culture. the investors actually prefer to
9:41 pm
and seven being disrupted by an outsider. >> healthy competition never hurt anyone. thank you so much for that. nintendo shares have surged on the success of pokémon go. the pokémon go corrode could -- crazes waning but the developer says it is still getting users at a good pace. >> where we are is we have gotten past that initial global explosion and we are back to that group ofs of people that came in. obviously some of those people left the game. a ton of them stayed in the game and we are acquiring users at a more normal pace and we are back to a normal level of activity
9:42 pm
growth. it is an immensely popular game around the world. people continue to spin in the game and we are excited about that as a foundation to build our business on to look at other projects in the future, look at augmented reality. gives us a lot of flexibility going forward that we didn't necessarily anticipate. we are really excited to be able to invest in that area and explore that over the next several years. >> there are some analysts suggested pokémon go is making more money for apple than nintendo. we presumen told us that out of every 100 units earned at the app store, 30 go to apple, 32 niantic, 32 pokémon, 10 to nintendo. is that accurate?
9:43 pm
>> beyond what the app store takes as part of the normal commercial, i can't comment. >> you have some big gaming communities out there waiting for this game. what are plans to launch given some of the regulatory issues surrounding google maps? >> we are interested in bringing the game to the rest of the world. we haven't launched in yet. some of it is the logistics of needing to get our infrastructure ready to take on additional users and in some cases, there is such a regulatory conditions that make it more challenging to lunch there. taking the steps we need to do to offer the people the game. >> it will there be more levels, a sequel? >> we release a new version of the game every two weeks. buddy pokémon.d
9:44 pm
we are releasing support for the wearable device. we expect the game to continue to grow over the next several years. an ever evolving and changing gameplay experience. emily chang's interview with john hankey. next, the oil glut will stay for a while. we will hear from an energy consultant coming up next. this is bloomberg. ♪
9:45 pm
9:46 pm
angie: oil prices have taken a hit after a -- after the international agency says it expects the glut to continue to last longer expected as output remains high. we are joined by the managing director at jvc energy asia, which provides consultant
9:47 pm
services with some of the world's leading energy companies. you have falling oil prices globally. shouldn't this trigger increased demand? people are taking a look at the price at the pump and its cheaper. why not go out and drive more? exactly what we have seen. we have seen that in late 2014 and all through 2015 when we had very high amounts of growth on any type of benchmark. we saw it early in 2016. the problem with the relationship between low prices and oil demand is it doesn't last long. you need stronger economic growth. you can see we are starting to go from a high demand growth the trendt counter growth. the iea just came out with its latest report. they are still higher than us and next year, they see it at
9:48 pm
1.2 million barrels a day and we are lower at about one million barrels per growth. i do think what you say is correct. .he consumer has reacted however, that impact doesn't last long and we are already starting to see demand normalize the price being slightly higher in 2016 with the crude oil barrel at $60 a barrel. that trend growth certainly not catching up with the trend growth of supply either. i think this year, you will see oil demand growth is much stronger than supply growth but we have gone through a period up to2 to 2015 building this supply glut and this was all on the back of the u.s. shale and increasing supplies coming from the middle east and the saudi's new production targets.
9:49 pm
i think that is what we are seeing this year. i think a lot of people would have expected supply to be falling much quicker than it is. in our analysis, that's not what is happening. 2015 and 2017, we are adding 5.2 barrels of new supply to the market. a lot of that is coming in in west africa and non-opec countries. this might defy logic a bit. a lot of analysts say when the price goes down, producers are pulling back their production and that is correct but it's all about where you are looking on the timeline and most of the supply coming online in the next few months, that was already invested one oil prices were high. producers will have to live with the consequences of that. angie: that is a great point because it takes two to three years before you realize those decisions and right now, it's
9:50 pm
not paying off, especially with iran coming back online. these are middle east suppliers that say we don't care what the oil prices are, we don't care about rebalancing, what we do care about is regaining levels to where we were before embargo. >> that is certainly true. i would have one provision all caps on. have thatbly can't much more oil to the market anyway. from a long time perspective, their production probably cannot go much higher without additional investment in the country and that will take sometime. similar situation in iraq. the potential, the upside for them is probably also limited now. i would not be so worried about iran and iraq bringing to the
9:51 pm
market. finally, it's coming online and we are expecting cashing out in the next seven to nine months. that of course will drag the markets a bit but cashing out has had its problems in the past. will they get it right this time? let's see. angie: when are we going to see rebalancing? months.or the next nine we will have a difficult seven to nine months ahead of us. if you look at the crude oil balance, it doesn't look good for producers. you can expect prices to test the $40 range and even push under that in the first quarter of next year when the market is oversupplied but maybe we start to see the market turn into the 2017 when wef finally start to see the fundamentals realigning. thank you so much for
9:52 pm
that. heels of opening his new multibillion-dollar resort, shall the adults has high hopes for the weekend. we will take a look at what is in store. this is bloomberg. ♪
9:53 pm
9:54 pm
angie: sheldon andel's and's new casino just the start of the bigger push across asia. he says he is loving aggressively to build resorts in other parts of the region. for the answers and more, we are .oined by margaret long its branded as property offering affordable luxury and the like. is it going to work?
9:55 pm
adding to thely central location for sands, a cluster of the resorts. it joins the nation, a popular property. attainableomething for these visitors. it offers entertainment options like the eiffel tower as well as with apark and a share michael jackson theme. these are altogether helping sands maintain that mass-market revenue lead. angie: this is something they last year, it was up 30%.
9:56 pm
this year, it is actually struggling, which could be an opportunity for macau. people can get a taste of paris closer to home. angie: you could go check out the eiffel tower. that sounds a little contradictory. there are challenges still for macau. >> there are near-term challenges always and two evident once our profit margins. labor is an issue. there are more people that are needed on the floor and we have room rates being cut thanficantly down by more 20% since early 2015. and lastly, cannibalization. you have seen business shift away from the peninsula.
9:57 pm
thank you for that. always looking into those questions for us. we will talk about unique investment series that compares financial risk to rocky and bullwinkle. this is bloomberg. ♪
9:58 pm
9:59 pm
10:00 pm
>> from our studios in new york city, this is "charlie rose." charley: mr. president, thank for talking to us this monday afternoon. everyone like to know how the secretary is doing. fine. is doing she was doing better last night. messages.d text a friend of ours called and left a message. her husband had been hospitalized for pneumonia and

45 Views

info Stream Only

Uploaded by TV Archive on