Skip to main content

tv   Trending Business  Bloomberg  September 19, 2016 9:00pm-10:01pm EDT

9:00 pm
♪ this is trending business. ♪ rishaad: we are going to be visiting sydney this hour. are no links between competing firms in china. china has said brand-new
9:01 pm
infrastructure projects could cost up to 100 and $50 billion. follow me on twitter. there is my handle and #. singapore, kuala lumpur getting underway in just a few minutes. uncertainty ahead for the jet -- bank of japan. things are looking pretty mixed at the moment regionally. this is what we're seeing. back online after yesterday's holiday. , butve the bank of japan we also have a public holiday for japan on thursday. a lot going on when it comes to the japanese session. we're seeing some lows at the moment. regionally we are looking at
9:02 pm
stocks really dragging. they are really tearing the gains we had in the asian session. , we hadabout australia an unfortunate session yesterday where it was very much a delayed start. asy had resumed operations normal. there was a hardware problem that impacted the data system. that has been resolved. we've had pretty seamless trading so far, but still he down by 2/10 of 1%. that session markedly lower. japanese miners are doing well. we have some gains when it comes to some of the gold miners.
9:03 pm
we have malaysia moderately higher. this market was up by a mostly percent yesterday. really, it is with a sense of caution, risk being taken off the table. meeting getsapan underway at -- on tuesday. we are pointing out our session highs when it comes to yen -dollar. rishaad: we will get to the note.on samsung's galaxy samsung says that in china, they are not to blame here. china batteries used in are not samsung's affiliate appeared the worldwide recall
9:04 pm
was not by that company. there also devices in china overheating. released sitting possiblydefault was caused by external he devices. going on to say that they originated outside of the batteries and are originating with the external heat. largest the world's smartphone market. samsung is trying to maintain the market share over mark -- apple. samsung shares outperforming the -- about 1% or 2% there. samsung really move quite quickly to recall 2.5 million phones with batteries made by
9:05 pm
sdi. this was at a cost of $1 billion. that sounds like a big number but it could easily be recouped. around $46lected billion in revenue for the third quarter alone. this is really about ensuring customers do not switch to the competition. the production of the note seven was rushed because of competition with apple. one man in new jersey says his galaxy s seven edge exploded in his pocket, causing serious burns. can see long-term shareholders are doing ok. samsung admitting it needs to carry out a more thorough
9:06 pm
analysis to determine the exact cause of battery damage. rishaad: thank you for that. >> and nationalize u.s. citizen originally from afghanistan has been detained. he was wounded during a shootout with police in new jersey. he is being charged with five counts of attempted murder of a police officer, and is expected to face for the charges from the weekend explosions. police say he was not on their radar before the blast. they also say he operated alone and is not part of a terrorist out. authorities want to know what may have motivated him. hanjin shipping may face
9:07 pm
butlties of $1.7 billion, contracts may be negotiated. about two thirds of their vessels are contracted. they say that around 29 of its container ships have completed unloading, another 34 are still stranded at sea. and a bump in the road with shareholders aiming to stop a tesla andon deal with solar city. tesla says it will oppose the suits, which is that are without merit. the company says that simply because someone tries to use , -- delay in delay
9:08 pm
acquisition, this not mean it will be successful. investors seem to agree, shares are up in new york. the two companies have been burning through cash. saying, a goes without over the next few days, they will be crucial for trading. in japan it will be especially tricky given the shortened business week. is not that conducive to risk-taking, is it? no, not at all. we are reopening today and then tomorrow, and then we shut up shop again on thursday. no one knows what will happen. how can you take a bet when there are so many possible outcomes? of course, the boj, there is a lack of consensus. says,ing to what the boj
9:09 pm
you can take a position and then we close up shop, and then they come out with a decision on 2:00 a.m. on thursday and it could up and what the boj says. liquidity has been so thin. a lot of these funds have been closing out their positions. they're basically closing out a position because we don't know where this goes from here. what you are looking at on your screen, that graphic there. we cannot trade treasuries here in asia because of the holiday. we are back and we have the weekend. you do understand why this week is not exactly conducive to taking on big bets. although we will likely see a lot of big price swings. rishaad: talking about bets, aren't all bets off at the moment? can anybody say anything with any degree of certainty? i think when you look at
9:10 pm
the yen, yet it go back a few weeks. the senseless way of putting this is that as the and strengthens, the market will make money. yen strengthened, the market will make money. of it has been quiet for today's, so i cannot imagine it will have much change. have a look at this chart. another fairly straightforward chart. downward trend of dollar-yen. these to come up with something disruptive to push this out of its path. you don't have to agree whether that is the right thing to do, but the path of least resistance when you look at dollar-yen is clearly the downside. ashaad: still to come, from
9:11 pm
four member staff to one of singapore's biggest internet companies. about the plans to go public. how corporate earnings help the and assetic management. that is next. ♪
9:12 pm
9:13 pm
rishaad: business/headlines, goldman sachs changing its tune. the -- graham wheeler has indicated further easing may be needed to meet their target. lower rates for november and a further cut for next year. the second business -- biggest
9:14 pm
mine is talking about commodities in china. recent data indicates a pick up and construction. orders seem to have plateaued. the government is trying to rebound from its worst profit since 2004. the company has been forced to trim its business. it has just plateaued. and therefore as i said, we becoming more and more cautiously optimistic. rishaad: seaworld plunged in and therefore as itrade. shareholders will receive $.10 per share next month. than 30% dropped more
9:15 pm
this year. the company reported lower attendances. if it is not one, it is too big eases looking to dominate sentiment this week. let's look at what the federal reserve may have an store. it is contentious that the boj will be more important this time. market is saying that we probably will not see anything happening in september. the boj, i think the number of announcements that a been made, the number of spokes evil have said certain things -- spokes people have said certain things. rishaad: what can they do? either they have a radical change in policy position or they continue doing the same thing with, let's say, limited effect. >> i think one is perhaps they
9:16 pm
can extend the inflation target. ultimately, we need to see more fiscal expansion. helicopter money could come in. we are not seeing krugman and the economy and inflation is not picking up at any rate. i think it needs to be something different. it could be more fiscal policy at some stage. when you have -- rishaad: we have a look at equities, they've not been justifying bonds but stocks as well. effect inad a desired listing asset prices as much as you would have thought when you announce this? the same desired effect that they wanted to, and i think they will still be looking for asset price rises more. as we go back, has a monetary prices have an effect.
9:17 pm
as you mentioned, i think it has not been as effective as in the past. the government i think these to look at more fiscal expansion. all sorts of precious in the federal reserve. >> from within. rishaad: and outside, of course. >> the numbers that have come out and statements that come out from federal officials, it seems unlikely that they will do anything significant in september. maybe more december. the u.s. economy is gradually getting better, but it is not on a tear. .t will be gradual i think it is that scenario of not too cold. the world is at the margins getting better. and certainly the fed has to be covering -- careful not to derail that. cognizantnd be more of what is hiding -- happening in the wider world. >> yes.
9:18 pm
we saw the wobbles it created last time in december. a cost a lot of wobbles and emerging markets after that, concerns over the chinese devaluation. we saw what happened in january in terms of equity markets. they may be more conscious about that today. rishaad: when you look at what is going on with money around the world and look at valuations.-- there are pockets of value and we have seen many come to p.m.. is that done? we have seen slows coming to emerging markets, but a few things to know. one, a lot of money that has been coming back into emerging markets has not flown back to china. i think china has been a? , and -- china has been a question mark.
9:19 pm
we're not expecting anything to do with tear or anything like that, but the numbers are stabilizing. the other thing is earnings. asiaf the big reasons why is underperforming is like of earnings over the last 4-5 years. if you look at the last set of earnings over the last two quarters, they have been generally surprising on the upside. recovery an earnings asia and look at today's valuation, it is looking pretty ok. we are looking just below 12 times, price tag 1.4, 1.5. to keep emerging markets on the positive trend, we need the u.s. dollar. we need to see it significantly strengthen from where it is today. rishaad: where do you go to? we arely people say
9:20 pm
looking at the internet stocks, we're looking at health care, we're looking at some of these insurance companies. it is very crowded. you have to start thinking outside of that, haven't you? however i think pockets within that, there are still great valuations. but i think beyond that if we are going to see an earnings recovery, i think some of the cyclical stocks that have been underperforming for good reason him a i think those may start to pick up again. some of the export sector with the u.s. recovering. cyclicals in the manufacturing side commodities, the comment that maybe we've seen the bottom of the commodities space. thank you so much for coming on the program. >> a pleasure to be here. rishaad: coming up, the push for
9:21 pm
more partnerships and a multibillion dollar bid. ♪
9:22 pm
9:23 pm
rishaad: china is said to be starting new private partnerships. it is believed the finance ministry received more than 1000 proposals and is now down to a short list. malcom scott is with me now. what is the logic behind us? fiscal instead of policy, this is fiscal policy on the cheap? private businesses are not investing in china at the moment. it has been a real drag. it is down from very high numbers to or three years ago. to get private companies
9:24 pm
investing again, this is where driving them into it. you don't want to invest on your own, do it with us. within the public sphere, they get the banking from the banks. the banks are reluctant to invest in private firms at the moment. they're very cautious. if you have state agency with you, the banks will be more -- rishaad: exactly good how does this fit in with the overall policy landscape? it looks increasingly on hold. just yesterday, we had newspaper saying that we are in an l shaped recovery, signaling things maybe had bottomed. rates have been on hold since october. we are not getting more monetary stimulus at least in the broad front. the budget -- projected budget shortfall already looks well and truly blown.
9:25 pm
they are doing it by other means. by using the policy banks to channel some money to the economy. this is part of that fiscal support. rishaad: thank you much. but look at some of the other stories making headlines. willdicates the market nationalthe association of builders said that anything above 50 report good market conditions. confidence is up although construction is being hit by a shortage of land and experience workers. working onnk is billions of dollars of corporate loans. unload a $7.5g to billion deal.
9:26 pm
this is after deutsche bank was -- in as one of the worst europe. disappointing box office debut of the new "blair witch," lions gate falls. the original was one of the most profitable movies of all time. a quick check of what is going on market was. pretty much flat. new zealand, sydney and wellington looking like that at the moment. 1%, down. that's after those technical glitches on monday.
9:27 pm
coming up, out of the shadows, going public. a spotlight on a chinese bank. coming under scrutiny. right here in hong kong and shanghai. ♪
9:28 pm
9:29 pm
♪ rishaad: samsung is distancing itself from a note seven phone complaints. they say they are not to blame overheating, it is most likely due to external heat sources. samsung is saying there is no evidence linking the batteries and the fried phones. being -- hanjion is
9:30 pm
being ordered to return all of its ships. , many 97 container ships are charters. 23 released -- were least. logic chairman is being questioned. found deadairman was last month just before he was going to be questioned. we have some breaking news. the reserve bank of australia releasing notes from the september meeting. what are the details? the rate was kept on hold at 1.5% for september. uncertainties still waiting --
9:31 pm
weighing. they're trying to support activity in the trade sector and the policy is consistent with meeting the cpi goal overtime. remember, these minutes are a little backward looking. since then, the new governor has reached an accord with the of monetary conduct. three --ined a two to on inflation. the bar prima stays where it is -- the bar pretty much stays where it is. wiggle room down the track when it comes to potential future cuts. those minutes are saying that the policy stance is consistent with meeting that cpi goal overtime.
9:32 pm
it looks like the reserve bank of australia are less concerned with inflation that has been earlier this year when we saw this to cuts. rishaad: let's look at the market. here's heidi. heidi: this is a rejection we're seeing, a distinct strengthening when it comes to the new dollar. it has positive sessions over the few days -- past few days. it is up about 2/10 of 1%. take a look at this jump right here. it is a minute after the minutes of that meeting came out. interpretations of the statement of conduct that came out yesterday is it saying essentially it could mean a higher hurdle when it comes to the next rate cut from the rba. investors are digesting that. let's take a look at broader markets. when it comes to the sydney session, we are back on track. yesterday with
9:33 pm
the technical difficulties that halted trading in sydney twice. everything is back on track and the technical glitches, the hardware failure, has been resolved. energy particular is dragging down, not just stocks in sydney but regionally. telecom is the biggest decline .re -- decliner not doing well ahead of his brother -- plethora central-bank action. see oil and gas up there by 7/10 of 1%. oil and gas down by 1% there. let us bring on china, hong kong, coming online. earlierome lines up that essentially had said they are injecting 150 billion yuan
9:34 pm
in a 70 day reverse reprocess to try and continue managing the liquidity situation. we're about a week or so ahead of the next national holiday. sort of a seasonal peak. when it comes to demand for funding. this is the next big picture, shanghai opening lower. but we can see some gains coming through come -- from tokyo. that bank of japan meeting is ongoing today. rishaad: thanks for that. acquisition hungry chinese and ng.k -- anba we have details. is it coming out of the shadows of a string of big-ticket deals, some successful. the hotel business was not successful. goingare saying they're
9:35 pm
to embrace transparency because they are looking toward an ipo in 2017. their main life unit, as you say a $13.5 billion acquisition spree from 2014. the company for many came out of nowhere with this. one of their flagship purchases with the waldorf-astoria in new york. they fail to purchase starwood hotels after aggressive bidding in march. they also bought assets and south korea and the netherlands. a lot of this is ancient -- expansion has been funded by products they offer here in china. high, short-term perfects -- products. there is concern about a liquidity crunch. that maybe one reason why and ipo is being looked at. he could be alleviating concerns about the balance sheet and fund the further overseas expansion.
9:36 pm
rishaad: a few? . -- a few questions marks. what do we know? aroundgreatest mystery this company, was report in "the wasyork times" that anbang linked to a chairman. they said it was factually not true and it was stereotyping of chinese companies. they were unable to give us more concrete details about the ownership of the company other than to say that individual investors are shareholders and -- havee been notified notified authorities in china. we look at morgan stanley, for example, the number one arranger of ipos in china, they decided not to get involved or play a role in this ipo.
9:37 pm
if you look at the attempt by anbang to buy the fidelity energy life insurance company, they pulled out of that and afterew temporarily regulators were concerned about ownership. there is pressure now on greater transparency as the country -- company leads up to the ipo next year. rishaad: thank you. a check on some other stories. raised several billion dollars in a fund raising bid. southeast asia's largest startup. congress will be told later that , theynk failed customers
9:38 pm
do not have authorization. wells fargo tumbling as a result of that scandal. mining, competing for the bidding in australia. analysts estimate that it is near $400ween -- billion. >> we have improved safety and reduce costs by about 30%. improve production by 20%. we know the asset and understand it well. we welcome the process as they go through and we like to participate in it. we would want to acquire it for a good value. indonesia is asking
9:39 pm
singapore for assurances it is not trying to impede other countries tax forgiveness campaigns. bloomberg analysts andy is -- has the story. it might appear that singapore is actively trying to sing -- sabotage the amnesty program. especially after reports came out last week that the singapore police were being notified by the banks whether their clients were participating in the amnesty. to me, it looks like a conspiracy theory is not really the right explanation. a simple standard operating procedure is what it looks like. remember that singapore is answerable to the financial
9:40 pm
action task force, which in 2012 declared tax offenses to be a predicate offense for money laundering and therefore banks and singapore are obligated to report any of their clients making use of any countries amnesty program as a suspicious transaction, and they are supposed to report that fact to , part of the commercial affairs department, part of the singapore police. that is how the police are getting informed. both thee therefore to people who are availing themselves of the amnesty as well as the indonesian government is, or relax, it there is probably no conspiracy here. the point is, we are talking about nearly $9 billion stashed away in singapore.
9:41 pm
very little of that has made its theback to indonesia question remains, why are people not taking advantage of this? closedllion has been the -- disclose, you're right. only about 12% has been repatriated. that is part of any rational decision. for people who are disclosing but not sending the money back home to nittanynation -- to , that tax rate for september is only 4%. 2%.hey do repatriate, it is keeping money in hard currency in singapore, is it worth 2%? if i were one of them, i would say yes. rishaad: thanks for that.
9:42 pm
coming up, southeast asia's that has ambitions to become a billion-dollar company. we will talk with the games company and more. ♪
9:43 pm
9:44 pm
rishaad: these are the business flash headlines. attackedump is being after he criticized companies in mexico. they called donald trump a disgrace. said it has created 40,000 jobs in the last year. the obama administration is preparing to release a policy framework to handle self driving cars. new ways to include
9:45 pm
for carmakers to share information about emerging technologies. timelines are supposed to satisfy the auto industry. the much anticipated drone spirit --really released. the camera has a stabilizer. >> the rate that people are buying gopro has never been at her. when people say that the demand is waiting and the market -- market is saturated, we don't see it in our business. gopro'sconsumers buying that are old. founders say it
9:46 pm
is bringing services to singapore on tuesday. it is to help local startups build online businesses. southeast asia seeing the so-calledof the unicorns in the past for years. valuations of more than $2 billion. how so-called unicorns in the past for years. about a games company, valued at close to $4 billion. nick, thanks for joining us. you're not just a gaming company, you have your fingers in all sorts of different pies. >> we certainly do. thanks for having me. we were founded in 2009 by my business partner, we were at stanford together. we have grown to be the biggest digital content player in southeast asia and the fastest-growing e-commerce
9:47 pm
business. we have a brand that is gone from a standing start in 26 -- 2016 to $1.5 billion of throughput. finally, we have airpay. we have grown quietly, very focused on our users and operations, but we are pleased with where the business stands today. rishaad: see have those businesses, and he started with the place for people to meet, chat and play games. are you really a jack of all trades, and ending up the master of none? >> know, we feel different. when you think about what we've learned from different markets, it feels to us that there are a handful of really defined user cases in the example of china proves that, in the case of
9:48 pm
isbaba, and content powerful. as these businesses have grown, there started to lend into each other -- blend into each other. we unified these cases with a single wallet. that is the heart of our business. trying to findis -- become the a and p southeast asia. rishaad: you keep mentioning southeast asia. do you have ambitions geographically? >> it is an interesting question. at some level, we feel so happy to be in southeast asia. we feel it is the last leg of the stool for the internet. there are fantastic businesses
9:49 pm
in asia and southeast asia. it is only the last couple of years we've seen multibillion businesses develop on the basis of encrusted -- interesting user dynamic and southeast asia. if all we did was stay in southeast asia, we would be very happy. the week you are busy -- business as broader. the island of taiwan has been important for a business almost since the beginning. that is important on the game side, very important on the e-commerce site. we've added innovations to mobile in taiwan. we call it greater southeast asia, the concept of including all of the island regions as well as terrestrial land. i noticed you called it the island of taiwan. you're notyou're not talking --g out china entirely? >> we are looking at ways to
9:50 pm
engage partners in china. one of our important shareholders has been a great elder brother to us, a mentor, they've given this trip the device on technology. we chat toy brought the world. we've never inspired to in their or play kitchen. sometimes we find ways to collaborate. there is a very successful mobile game in china right now that we collaborated on them. we will be launching in southeast asia soon. rishaad: what is your exit? are you happy with you are in now? i think the answer is none of the above, we are not happy where we are right now. we aspire to be the first $100 billion valued company in southeast asia.
9:51 pm
all we did was for phil to potential we had, to be the alibaba of southwest asia. to be the equivalent of southeast asia. the express is no exit. we don't intend to sell the buildy, we intend to platforms out. at some point in time we might address the public market at the right moment. but there is no exit in mind. we are to build something lasting. rishaad: you would say that, wouldn't you. make you for joining us. joining us from singapore. garena.r of access,g has exclusive coming up. ♪
9:52 pm
9:53 pm
9:54 pm
ishaad: the u.s. military holding its biggest ever working in the pacific, at a time of writing original tension. -- rising regional tension. >> we circled the uss ronald reagan several times before decending to -- a landing. as a strike group, they are keenly aware of china's buildup. that includes its own aircraft carriers. but then again -- >> we were doing this for years before china's rise again and we will be doing it for many years to come. i'm not going to dwell on any one piece of what china as a whole half. that is not what we're here for.
9:55 pm
>> china and others join the wargames but not this time. women 6000 servicemen and the reagand on this week. >> we dedicate the resources we so that we can make it challenging on the sailors and captains. aircraft can be stored here, another 35 or so up top. air wing exclusively uses -- one of the most dangerous jobs is on the flight deck. their average age of 19. organize chaos is the one sailor describes it. our landing and taking off almost simultaneously. the reagan can catapult as many as two planes per minute.
9:56 pm
100 miles per hour in just two seconds. landings can happen every 45 seconds. wires areroviding the back in place and time. for $4.5 billion super carrier, one of the most important jobs is low-tech. aey use what they refer to as ouija board to keep track of the movements on the more than four acres of flight deck and hangers below. toimately, it was our turn go out the way we came in. rishaad: they didn't have any
9:57 pm
fun making that packets. crisis, we will hear from banks. this is bloomberg. ♪
9:58 pm
9:59 pm
10:00 pm
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with the presidential race. donald trump continues to gain ground on hillary clinton in the polls even as he comes under fire for reigniting controversy over president obama's birth certificate. with me is bob costas. he writes about this today's "on in washington post. oh


info Stream Only

Uploaded by TV Archive on