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tv   Daybreak Asia  Bloomberg  September 26, 2016 7:00pm-8:31pm EDT

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anchor: the great debate. a new bloomberg poll puts clinton and donald trump that and neck. watching a tvns spectacle that could reach super bowl viewership levels. elsewhere, twitter may have a new follower with sources thing disney is working on a possible bid. its toptakata meets customers this week to discuss who will pay the bills in the
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event of a sale. this is "daybreak asia." i am betty liu. ands just after 7:00 p.m. two hours away to that big moment when trump takes the stage. anchor: we have got to get those buffalo wings ready. betty: you nailed it. stocks here in the u.s. declined because there is this nervousness. stock market, we have this great truck coming up later that shows markets are undecided who is going to be better for the markets, whoever is going to win the white house. yvonne: we are going to be having special coverage. at how thingslook
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are kicking off in the asia-pacific. we are seeing that risk off continuing on here in new 0.25%. stops, down about kiwi dollar recouping some of that loss. australia, oil up 3% overnight with that opec meeting underway. stock could take a little bit of dollar -- with ozzy $.76. dollar at ont of the focus has been the currency, mexican peso, the canadian dollar. dollar yen may be the focus, could break 100, some say if donald trump steals limelight later on tonight. what could close in the region, taiwan. an early look at what we expect
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in the region this morning, but betty, a choppy session in wall street overnight. betty: it was choppy. again, almost everyone i talked waitday is saying, cannot to watch the debate tonight. is our stocksset reporter. oliver, explain the weakness we saw in u.s. stocks, what is going on? >> is like one of these days where you have the big event and it is easy to attribute things to that event. there is not always a clear answer, as we know. first of all, it has been a pretty risk off day, with all the red across the screen. s&p, theou look at the dow, nasdaq, also doing pretty weak. up, it has been one of the green areas on the
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days in which we have a little bit of weakness. that was not the case today. they are down. very clear result. the other thing we thought that he is the breakdown in the stocks, and bond correlation. that his been a pretty tight correlation -- that has been a pretty tight correlation recently. stocks sold off, and bonds did pretty well. 10 year is down. you saw what seemed to be the risk off mentality that we usually see manifested with bonds and stocks. recently, they have been doing the same thing together. you cannot look past the financial shares. that was a big part of it. anchor: what is happening with them? you look at what happened before we opened up markets this morning, europe was very weak on the back of deutsche bank hitting new record lows, just going lower on share prices. that is the incredible. one thing we know about investors, they do not like to see financial companies in the
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crosshairs. is the thought that has done a very poorly. this is the record low year-to-date down 50%, and people question what it is going to do to keep up with the fines it has been imposed upon. finding out whether or not there has been systemic risk, which the imf has labeled deutsche bank. wells fargo stuff is still overhanging, so bank of america, wells fargo, deutsche bank, hurting quite a bit today. how do u.s. investors feel about the election? we are hearing more from wall street. alice say we need to -- analyst say we need to start pricing in this financial risk. the easiest case one can make is the market, in the u.s., has not given a clear distinction. oliver: i have got a chart showing, it basically looks at
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the s&p 500. there is a spread between the possibility of hillary clinton becoming president based on politics polls. when this blue line of lower, that indicates trump poll numbers are getting closer to ms. clinton's. what we see on the correlation on the bottom, it goes green, it goes red, it goes green. they have not signaled who they want to be president. perhaps tonight, we will finally get some clarification on that. much.: thank you so as we have been talking about the story that will dominic the news today -- dominate the news today, the debate between hillary clinton and donald trump. a face-off in two hours time, with a bloomberg poll putting neck.eck and good to see. we talk about how tired, how dead heat these two candidates are.
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tell us what has fueled trump's recent return in the polls? >> the room is really filling up tonight. the polls have tightened, not only on a national basis, but on a statewide basis in some of like crucial swing states colorado, which may emerge as a key state in this race. what we are seeing is that particularly among younger voters and more worrisome for young women, margins for donald trump have you eroded since june. this is a big factor. these are people he needs to win over. women traditionally make a decision a little bit later, leaning neither one way or the other. they are not convinced. both candidates have such high unfavorables. we are standing next to several campaign staffers for hillary clinton's campaign, saying she is going to have a great night, she is ready. that is what we are going to be watching to see. who is going to win tonight on the biggest stage yet the 2016
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campaign? debate that is a going to be a test of trustworthiness, credibility, likability. what is the message we are expecting out of the candidates? megan: we're not really sure tonight what donald trump is going to show up, the bombastic one,? ? is it going to be the more measured, somber, serious donald trump was ready to make his message to people that he does have what it takes, the qualifications, and most importantly, the temperament to be president? can hillary clinton make that positive message she has yet to make? can she see people really get behind what she is bringing to the country, not just what donald trump is not, but what she is? anchor: how is each candidate going to win over the undecided vote? that is what really counts right now. megan: it is hard to believe
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there's anyone out there who is undecided with two candidates who really polarized the electorate. they are out there in fact. what they are going to be looking for is two issues, one on the economy, and second, on terrorism. those who come late to donald trump's campaign say they like his message on job creation and growth. they are troubled by some of his rhetoric onreadon the economy , things like the wall. they will be looking at what type of message he gives today. hillary clinton has got to give trustworthiness, that authenticity with voters that she has failed to connect with. that is going to be her biggest challenge tonight. murphy fromn hofstra university, were the first debate of the presidential campaign will be taking place. we are going to have special coverage on the debate, live on bloomberg television starting at 8 a.m. hong kong time, and 8:30 p.m. here in new york. we are going to have special coverage on thewe are going to t live on twitter.
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now, let us get to the first word news with courteney cox. >> toccata meets its biggest declines today over the auto industry's worst ever safety crisis. top of the list for honda gm, volkswagen, and others, is how any takeover bids would affect response ability for the billions of dollars in legal legaland potential liability. faulty airbags are linked to at least 15 that's and the recall millions of cars worldwide. the boj says it will do all it can to stabilize the yen exchange rate. it has not said how it intends to do that. governor kuroda was speaking in osaka as the yen continues to strengthen, undermining the bank's efforts to stoke inflation. it is trading around the psychologically important 100
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level. mario draghi says the uk should not be granted any favors either negotiate its exit from the european union. such a ruling is necessary to --ure the stability of the the uk government is explained as options to see whether it will be able to maintain access to the single market without accepting all of its conditions. regardless of the type of issues that emerge between the european union and the united kingdom, it is of utmost importance that the integrity of a single market is respected. ensure thatofany outcome should all participants are subject to the same rules. news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. anchor: twitter shares closed at
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their highest level since december as bloomberg learns that disney may be evaluating a bid. there are other challenges in this race. twitter is being the subject of a takeover. >> we are going into our second day because we saw on friday that potentially salesforce was interested, according to news reports out there. we are seeing the second day here. i want to take a look at what has been happening to the share price in the past two days you're talking to my bloomberg terminal. seeing 26.5% are of a pop since we saw the first reports on friday. today, we are seeing a 3.4% pop just for today. really interesting stuff as speculation and news comes out that potentially, twitter might be bought up by not one, but two , suitors. walt disney company, the house
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of the mouse, is potentially looking into a possible bid according to people familiar with the matter, and interestingly, they are working with a financial advisor on that possible bid. representatives for disney and twitter declined to comment on any speculation. looking into the reason why disney might be interested in twitter is basically because they are looking for a new channel for video distribution. over the past several years or so, we have been talking about people cutting records, and at the same time, while twitter had seen fairly stagnant growth in terms of their user base, it is rising relatively against what is happening in terms of the cable subscriptions out there. take a look at what has been happening in terms of what is quarter on quarter. here is, twitter, month on month, quarter on quarter change, excuse me, in blue right here. this is still growth over the past, s c, two years, since
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2013. in terms of the white u.s. video subscription, it is going into the negative over the past year. anchor: disney has some competition. what details did we have on that? >> with salesforce, they are saying they are interested in it as well, potentially working with anger america, according to people familiar with the matter, withant to read -- working a company, according to people familiar with the matter, who want to remain anonymous. you will remember that back in june, linkedin tried, salesforce tried to get linkedin, but were beat up to the punch by microsoft, and maybe, this is the ceos attempt to get back to the race. you can see the share price about one third
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of a percent. yvonne? signs of stability in china opened up possibilities for investors. we will get a view of blackrock's hill in june. what will the debates outcome mean for the market? this is bloomberg. ♪
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anchor: we are counting down to asia's first major market open this morning and japanese futures, you can see, sort of following the lead in the u.s., down about 0.6%. it is a wet day in tokyo. you are watching "daybreak asia ." i am betty liu in new york. yvonne: i am yvonne man in hong
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kong. is beingipping targeted by the world's top container line. it will stop ordering new vessels and will switch to buying from rivals. hanjin has filed for bankruptcy protection. sunday merchants is in a -- debtai merchant's and a restructuring program. debtrchants is in a reduction program. investors, perry said his style of working is no fund'svalid over the first two decades. his fund lost more than half of its assets in the past year. net life is offering an early retirement package. -- who are have
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45 years or older -- the nikkei news says almost 5000 people are eligible. consolidating to counter the pressure from the bond yields. anchor: a quick reminder on how things ended up on wall street. we did see those declines, of nervous here, a little negative. you can see the dow down 100. that is quite a big falsity volatility wethat saw last week. investors are bracing for a heated presidential debate as well as dealing with a selloff in global banks. john, how do explain away what happened today? thing thatsort of happened. what happened, part of it is debate. nobody wants to be going into it. i do not think wall street has a
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favorite, but donald trump is a little bit like a box of chocolates. you never know what you're going to get. they are waiting to see for that. the news that came out of deutsche bank was not helpful. i do not think it is like to be a disaster, but it is no fun while it happens. i want to put up that chart again that oliver showed us earlier which does underscore the uncertainty of the markets with the blue line. uncertain about whether a trump or clinton presidency is going to be hopeful for the s&p. what do you believe? are threelieve there branches of government, and i think the legislative is more interesting. what i am hearing, and i am not an expert on this, the gop is getting ground in the senatorial race. there is a decent chance they hold onto the senate, and the house seems pretty likely to remain republican.
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if that is the case, you're talking about old-fashioned people in charge of things, the old line in charge of things. anchor: you are not word? john: -- worried? john: i am always worried. the presidency is such a big job, you have to grow into it. james madison designed limiting covering horses -- limited courses. eryse things move v slowly. anchor: where'd you think the markets are headed anyway? valuations are ok. the fed is going to be benign. i think earnings are getting better now. i have been thinking that for a while and it hasn't happened, but i am writing to expectations rising. -- i am starting to see expectations rising.
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not know how far along the are in it, but i do not get the sense we are at the end of it. there is not investor enthusiasm that there was in the past. anchor: we will have more with you. john manley, with more on the market. this is bloomberg. ♪
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betty: this is daybreak asia. i am betty liu in new york. yvonne: i am yvonne man in hong kong. of that is continue our manley.on with john taket wanted to get your of why it has come to this point. we have been so reluctant to price in that political risk. some are signaling this could be like the next brexit, do you agree with that view? the u.s.hink
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electronic process can be frightening sometimes, but as i said before -- the u.s. electoral process can be frightening sometimes. maybe the market has been in denial, maybe i am in denial, but i think we work our way through it and will know more after tonight. you mentioned tech as well as domestic health care. i want to show a chart. we have seen quite a bit of a long rally in those stocks. be laggings to behind, but making headlines recently, yesterday seeing they were not considering a breakup of the company. hillary clinton has made a lot of news in this space as well. do you think the election could change, or factor in how you position yourself in this space? john: is a new world. i am not hoping for any respite
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one way or the other. i do think health care is attractive, part of that is me being old, part of that is we -- know we need i do not think it is going to stop for a while. anchor: what do you make of the bond markets and what they are signaling to us? john: i do not know is there are any bond investors left. [laughter] met byonds are being central banks. i am not a big fan of the bond market. -- i became an equity strategist. the thing about bonds, you are on the other side. it is a potentially adversarial position. i think the bond market is overpriced and the value in the bond market overlies in the more equity like lower quality, and lower quality stuff seems to be reasonably priced.
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i think you e buying with people were buying no matter what. anchor: before we go, do we end up higher from here? john: i think we do. i'm not sure how many times we flop around before we get there. anchor: we don't have many months left in the year. john, thank you so much. john manley, the chief equity strategist at wells fargo. a lot can change in the next 90 to the until we get presidential, the first presidential debate in this election between hillary clinton and donald trump. betty: much more ahead. it is negotiation time for troubled airbag maker takata as it prepares to meet its biggest customers. this is bloomberg. ♪
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anchor: it is 7:30 a.m. tuesday in hong kong. betty? p.m. -- is 7:30 i am betty liu in new york. yvonne: i am yvonne man in hong kong. you are watching "daybreak asia ." hillary clinton and donald trump face off in the first presidential debate in the next 90 minutes as a new bloomberg poll puts them neck-and-neck in the race for the white house.
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trump takes the lead when third party candidates are included. support for both candidates remains soft. the s&p 500 closed lower in new york, weighed down by financial stocks. the claim was led by deutsche bank. deutsche'sr finances broad support to a record low. brought support to a record low. disney is evaluating a bid and twitter is interested in talking. neither company has confirmed that. he may have a fight on its hands. bloomberg sources say that another company is preparing a bid with bank of america's help. twitter shares have surged late last week when news of interest
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broke. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. and courtney collins, this is bloomberg. yvonne: let us take a look at how markets are shaping up after a fairly risk off day. if nothing changes in the next 30 minutes or so, we are going to see the same risk aversion across the asia-pacific, this is how these three markets closed off. david: when you look at futures, for japan, for australia, for korea, we are basically looking at the kleins. we are going to see a drop in the mccain. we are up a little bit -- basically looking at declines. we are going to see a drop in the nikkei. down 0.5%
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bits and pieces of data, very domestic. is almost said, it universally risk off. you look at the price action, currency, bonds, essentially seeing money flow out of equities, out of em, in fact. that could mean it is worse in markets across southeast asia. nearing thisn is 100 level, so you're are following that closely, right? david: right. it is a lot of things contribute downward spiral, it's you will, in dollar yen. we are watching this because it effects of the japanese market, but it is a very good risk aversion, if you will. the more risk aversion we get, the more downward pressure is going to be put on the japanese yen. session low on monday was
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100.25. when tokyo does her to open up, we tend to see sell orders on .he dollar this is on the back of his upcoming presidential debate. the mexican peso, the reason i bring this up, they have come out with a note, at very interesting one, that is trump as well during the debate, we could see the exchange rate break above 20 for the first time in forever. just watch that exchange rate of course. among other things we are following, betty. betty: indeed. as we have been saying, one market is shut in asia, and that is according to, owing to the typhoon in taiwan, right? david: yes, we are talking taiwan. the typhoon is set to make landfall this afternoon. they are shutting financial market offices, and the bullet train is shot as well.
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that is set to make landfall this afternoon local time. china has issued a warning. it is set to make landfall there thursday morning in the fujian province. fed contemplates hiking rates and the boj shifts its goals, the ucb is calling for brexit fallout. is marriott druggies call for -- call even more's urgent here? >> it seems that way when you look at the words mario draghi used. it's not just the economy. attacks,risis, terror he said governments must unleash spending and growth to help offset that. he said the ecb cannot do it
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alone, especially with the fall from the brexit vote lingers. here's what he said. >> the initial impact of the vote has been contained and the strong financial market reaction , such as equity price falls, have largely reversed. at the same time, the substantial weakening of the foreign demand outlook since the june is expected to dampen exports growth. factors, itther will continue to post downside risk to the euro area's growth prospects. >> it is pretty clear they need help boosting inflation. let us look at this chart which shows us what the white line, the ecb key interest rate at negative 0.4. 0.4. it is up to a whopping positive 0.2%. it was as low as -0.6.
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it is still far from the target of about 2%. one thing he addressed that was brexit, very interesting that he said, "same rules for all should apply post-brexit," in other words, no special deals. i think bloomberg news hit it on the had today when they said german confidence to five exit concerns. let us look at this chart, index.man confidence it had quite a jump in september, the best since may 2014. it comes after the bank said to expect weaker third-quarter growth. mariono surprise that draghi also said the european central bank can develop more stimulus pools if needed. it is -- tools if needed. there is more bond buying that
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can be done if necessary. what is the fed watching for? >> robert kaplan joins us on "daybreak asia," when i was out in jackson hole. today, he was speaking and totally echoed aircrews and ran dissented, to raise rates right away. he said he would be comfortable with a height last week. he is concerned about distortions with low interest rates too long. he watching commercial real estate carefully, just as eric as eric rosen said. fed is focused on the gpu revisions on thursday. we had gdp stuck at 1%. on friday, personal spending. are there signs that there is an consumer spending to be used gdp
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up to the 2.5% range in the second half? that rob kaplan up about the boj today, saying the aggressive policies of governor kuroda are not the solution. one down for the hawks, a lot more to go when it comes to those guys. kathleen hays, thank you so much. coca-cola bottlers have reached what is being described as a basic agreement to merge, possibly by next spring. coca-cola east japan and coca-cola west will join up in a deal that will be worth combined sales of nearly $10 billion. the west will remain on the stock exchange with east japan to the list. india has successfully put eight satellites into space. the cargo included three satellites from india itself, plus three from algeria, and one each from canada and the u.s..
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the prime minister tweeted about the launch was a moment of immense pride and joy for india. a new survey of the world's leading financial centers keep london public the heap, ahead of new york and singapore. the global financial centers index measures cities on their attractiveness to financial services on two levels, statistical data and a simple poll. the latest results but hong kong fourth in the 11th, and shanghai 16th. yenas created by the the group. takata meets its biggest customers this week. let us bring in our asia editor, joining us live from tokyo. well, the talks that were discussing -- that we are
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discussing here are going to be immensely complex. as. takata of course in really dire situation with its airbag recalls in a situation where the cost of repairing all of these airbags exceeds the amount it is going to be able to pay. your any situation where the automakers have been footing the -- you are in a situation where the automakers have been footing the bill for those repairs. craig: you have a situation where takata has been seeking buyers, and essentially, you need the automakers to sort of play along in order for those buyers to stay at the table. fors are very important takata to be able to get the automakers to sign off on just how much they are going to go theautomakers -- to owe automakers in terms of them playing a role in helping with the airbag recall, repair costs. in addition, essentially getting the automakers to pitch in on some of the legal costs related
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to these airbags. very important talks for takata this week. takata'sow much would recalls cost in the end? craig: there is an estimate tear in japan out of jeffries that was published earlier this year that was more than ¥1 trillion, so that is just for the airbag repairs. you have a situation where this estimate was for all airbags that lack a material that helps the airbag inflator's. when these airbag inflator is get exposed to moisture, they are prone to rupturing. we have seen that happen in at least 15 cases, where the airbag inflator ruptured and killed the occupant of the vehicle. effect.a really ugly it is -- really ugly defect. it has caused a number of injuries. it is a very costly situation
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for takata and potentially the automakers given the automakers to stick around in some form to help with supplying these airbags, going forward. anchor: thank you so much. up next, the shanghai composite index is one of the worst performers in the world this year. is there any hope for a rebound? we are going to ask blackrock, next. this is bloomberg. ♪
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the media down to asia's market open this morning. u.s. presidential debate, we are seeing osaka futures down your -- down 0.7%. the fed is considering
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changes to its stress test, which will require banks to come up with billions of dollars in additional capital. the governor says that in order for wall street to prove that can indoor another economic -- in cap"significant ital" is needed. the offer applies to dollar denominated notes due between 2017 and --. rio reduced net debt to just under $13 billion. now in a big screen, chinese billionaire wants television content.
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he is in talks. of the industries is reviewing its media holdings. anchor: volatility making a comeback in china. stocks slumped the most in two weeks ahead of the golden week holiday. the shanghai composite, one of the worlds's worst performing stock gauges this year. blackrock'sst runs composite fund. helen, great to have you here in the studio. what a difference i guess the year or two makes when it comes to china markets. reserves have stabilized. i think the concerns about this hard landing have seem to have waned. world, a little news
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is sometimes good news. nowadays, we do see that things are generally stable. we have seen property, auto consumption, and a lot of these areas being very robust this year, maybe more robust than previous expectations. has generally been ok, stable, not declining as much as people had feared. i would say, generally speaking, the picture is one of soft landing. i do not think anyone is expecting a boy and recovery. oyant recovery. hemorrhaging,the they have kind of been drifting when it comes to shanghai composite. there is a lot of talk about this lack of catalyst we have seen so far.
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we have this housing boom, equity market in hong kong. what could be that big trigger then, you think, that could re-awake the market? are thenderlying, they same economy and many of the companies are exactly the same as well. the differences are terms of the valuation and liquidity flow. if you look at today, the asian market has been under quite a lot of pressure. the hong kong china markets have been quite buoyant and are up your to date. this is because of the money flow coming from north down to south, as you mentioned, because of some of the changes, for example of the hong kong-shanghai stock exchange. to lety, the decision insurers invest in hong kong as well. there are evident blows -- ebbs and flows.
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there has been ample liquidity in china. and corporate are looking for what to do with that money. it does not necessarily have to be money coming out of one part of the market into other part of the market. you have seen some other corporate bond markets being buoyant. for a period of time, the liquidity's market was perhaps too active. anchor: i want to pull up a chart. yuan depositws up outside of china. with the weakness you have seen , stability, but relatively, weakness in the chinese currency, that seems to have stalled at least, i guess, the deposits, the increase of deposit outside of china, what do you make of that? helen: i think this is not
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surprising, given that since august of last year, we have had a sharp move in terms of people moving from perpetually appreciating expectations for the renminbi to more of a depreciation expectation against the u.s. dollar is not necessarily all of their currencies. i think from that perspective, you do see a rise in terms of deposits on shore in china and a decline of renminbi deposits offshore. i think that is to be expected, but policymakers are working very hard to stabilize expectation and demonstrate volatilitye two-way in the renminbi. betty: that of course is happening in just a few days. helen, thank you so much. helen is among the big-name guests who will be visiting the bloomberg markets most
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influential summit. we'll have more on that summit being held on september 28 in new york, hong kong, and also in london. much more ahead is the world biggest shopping frenzy, about to get even more frenzied. singlesahead to china's dave bonanza, back upon us. this is bloomberg. bonanza, back upon us. this is bloomberg. ♪
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anchor: we're watching "daybreak asia." betty: i am betty liu in new york. yvonne: m yvonne in hong kong. -- i am yvonne man in hong kong. anchor: going back in time, this 29th of julyo meeting. they decided to throw a lot of
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these monetary policy conventions out the window and do something different with this regime taking place. haidi: a couple of lines coming through from that july meeting. the lower, long-term seems torate impact on be limited. a lot of boj members saying inflation -- they pledged to overshoot that 32% inflation target. governor kuroda speaking yesterday, saying they are dedicated to that 2% target. boj members also saying to sentiment risk. the only thing they did in that july decision was to essentially double down etf from ¥3.3 trillion to ¥6 trillion, a vote of 7-2. this was a meeting before they changed the entire picture.
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yvonne. not a huge reaction of the yen. we are seeing it slightly weakening now. it sure has big ambitions for this years singles day shopping extravaganza in china. this year's november 11 event should surpass last year's records. is taking a closer look. you were there last year. how big is it becoming now? >> they can carry much more than their actual body weight, ants. it is just one shopping day of the year, but it has become so big, partly because of the alibaba units really pumping up on november 11. $14.3 billion in sales last year , and the head of the international operations for ant
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financial, likely to surpass that. operatinglready, ant alipay. there are many more products that are going to be offered this year, many more merchants, and they are already in advanced ages of planning, even though it is a couple months away. is not just focusing on one shopping day as a make or break event. stephen: that would be a bad business model if you're just thinking on one day of the year. they are looking at replicating the success of china overseas. they are making key strategic m&a acquisitions. along with primavera capital, they are buying a stake in yum! brands operations in china, also i verify, and authentication company.
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steve, thank you, stephen engle there. that is it for me, at the end of the day, new york. yvonne:
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>> the great debate, a new bloomberg poll puts clinton and trump neck and neck. the world's top complainer line is set to be eyeing rivals. maersk says it will not order any new ships. and disney working on a possible bid. coming to you live from hong i'm yvonne man.
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openng in how the markets in the region, just an hour away from the u.s. presidential debate. dave, how is it looking? thingst's one of those investors were pointing to, we have all the concerns over the debate. that is one thing. have a look at what is happening look at whaten you happened in the u.s., just about every single sector fell. wall street led by financials. all were talking about the spillover effect? we'll talk more about it later on but that's what happened on wall street overnight, pretty broad-based. 80% of stocks in the u.s. fell. have a look at how we are shaping up, or shaping down,
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across the asia-pacific, a lot of this is down to the stronger japanese yen. afternoon, the thinking behind the most recent changes there. australia was basically flat yesterday, seeing declines of about .20%. dollar-yen is up, from the session low on monday of 125. it's still seen as a safe haven bid, that's the most simple way of describing what is happening. debate, have al donald trumpchart,
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is not exactly offered the kindest words to mexico. the exchange rate could break 20 for the first time in forever. , but that being said it's still at a record low at the moment. so a few things to watch, the markets headed down. the story that will dominate the news today, the first head-to-head debate between hillary clinton and donald trump. the face-off in just about an hour's time. the new bloomberg poll puts them and neck. you are in the spin room right -- are youthey hearing anything? >> the campaigns are trying to set expectations cleverly.
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in about an hour we could be witnessing the campaign of the century. disliked byidates vast swaths of the country. where hearing that he's going to be calling, cool, and collected, he's not going to lash out or have a temper tantrum. they want him to be graded on a higher basis than he usually is and not walk away by remaining calm and think that is a win. the clinton campaign -- the trump campaign is playing it close to the vest. someone him to go very aggressive at hillary clinton, someone him to tone it down an appeal to suburban women and white voters.ed it is very tight race and the debate could change the final few weeks of the election. yvonne: a lot of us don't know what to expect tonight. what challenges do they face
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going into the debate? >> the big challenge hillary clinton faces is that large numbers of americans do not view her as honest and trustworthy, according to surveys. to talks to be able about the controversies that have been dogging her campaign, including her use of private e-mail server and the donations the clinton foundation received, without seeming like she's offering half-truths and without going on the defensive and behaving in a way that makes people think she has something to hide. thought trumps big problem is that majorities of americans don't believe he has the temperament to be president. 45% of them are still able to support him regardless. in order to push beyond the 44% he is stuck at in the polls, he needs to make people think he is
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capable of sitting in the oval office and making some of the most important decisions that will affect the country and the world. yvonne: and we know it's all about the undecided voters. what will be the key points to try to push that over them? >> it's an open question as to whether this will be about undecided voters. the undecided voter has been shrinking as a percentage of the electorate. are still undecided. donald trump may try to supercharge the vote among predominantly older, white voters, and hillary clinton is running on a very progressive platform aimed at reanimating the obama coalition. so the undecided voter will matter and this will be about who can excite the voters. lots to do with it --
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with this debate and our away. let's get to the first word news. >> to content meets his biggest taient this week -- taka meeting its biggest client this week. faulty airbags are linked to at least 15 guess and the recall of 100 million cars worldwide. mario draghi said the u.k. should not be granted any favors as it negotiates exit from the european union. he told eu lawmakers at such ruling is necessary to ensure the stability of the block. the u.k. government is still exploring his options to see if it will be able to retain access to the single market without
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accessing all of its commissions. of what emerges between the european union and the united kingdom, it is of utmost importance that the integrity of the single market is respected. any outcome should ensure that all participants are subject to the same rules. >> were the biggest names in hedge funds is calling it quits. richard. he is winding down his new york-based flagship after 28 years. in a letter to investors he said his style of working is no longer valid. over the first two decades he posted an average return of 15% without ever having a down year. however, his fund lost more than half its assets in the past year. says newly discovered data from a civilian radar station on the day of the mh 17 disaster showed no signs of a missile being fired from rebel
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territory in eastern ukraine. the defense ministry accused them of concealing information about the crash in 2014. the international community says a missile was fired at the plane. global news 24 hours a day, powered by journalist and analyst in more than 100 countries. this is bloomberg. the world's biggest container line could be about to take advantage of recent troubles in shipping. having ditched a strategy of ordering new ships earlier this month. our reporter joins us now live from seoul. what does maersk see in these two companies? it's all about complement
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what assets they have right now. i would say the weakest point that have is the transpacific. they have a very big exposure to the trade lane itself with the exports they do from south korea. buying either of them would growing marketin share in the transpacific route itself. are saying this was knows prize that they would do some type of takeover. will this be enough to reshape the industry? >> it is a start. one of the things, the biggest doubling block i would have to say in the shipping industry is that m&a's have been very scarce. there were few in the industry and where the biggest reasons is that a lot of the shipping companies are either national carriers or family owned. gettingn difficult
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m&a's done but we've seen a lot of changes going on recently. i would say that we might see more activities coming on in this site going forward. yvonne: how do you think maersk will capital the challenges when we are expecting more him and a ?- more him and day -- more m&a it's basically the nationalistic thinking. the government is pretty much backing hyundai merchant, it's in the midst of restructuring but the government is really pushing the company to become the national carrier for south korea. and then there is a lot of opposition coming from supporters who want the government to step in and save
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them. there's going to be a lot of nationalistic sentiment that will be a big challenge for maersk or any shipping line that may be interested in taking over these companies. they are tracking lower today, honda shipping. coming up, our next guest says that fed will wait until elections are over before raising rates, if it hikes at all this year. outlook from all young's global investors next. this is bloomberg. ♪
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early: metlife offering retirement packages to some staff in japan. nonsales employees who are revived or older and have been with the insurer for least three years will get as much as two years of monthly pay if they leave. the voluntary program starts
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next month. almost 5000 people are eligible. metlife is consolidating its operations in tokyo to counter pressure from low bond yields. a chinese billionaire wants television -- television content. owner is reviewing and they haveings increased the state in u.s. media. the fed is considering changes to its stress test that would require banks to come up with billions of dollars in additional capital. the governor says in order to improve -- to prevent can endure another economic crisis, a significant increase in capital is needed but the central bank may introduce concessions such as allowing a bank to have lower
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dividends during times of stress. as the countdown to the presidential debate, are you expecting much reaction today? >> i think most of us will be watching in japan. it will be center stage for the next few weeks. it's going to be closely watched. we've seen the peso and the canadian dollar, the dollar-yen can be one to watch as well. -- any signalshe where markets are going to go? >> the risk markets have done pretty well this year. i think the markets will probably use this as an excuse, the dollar-yen's closing around
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100. that is the level. i would not be surprised to see the markets used as an opportunity for a selloff in a bit of correction and consolidation and then maybe the risk money will come back in. yvonne: the scenario reince me up the market reaction to brexit. no one expected the remain camp to lose. could bet fallout similar to what we saw with the brexit fallout? >> let me answer your question this way. that when weely talk about the last couple of decades, the globalization era is almost over. if that happens, then certainly it would create more volatility for the risk market.
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yvonne: so we might see a rotation of those risk assets. when people feel underweight assumingian market, the u.s. dollar is not going the money isoof, still coming into asia. this is the key, we will see a timef correction, and over people are underweight in this market. >> you might want to have a little bit of cash and hold on and watch for attractive opportunities to buy into the stock.
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these are the names you should hold on to. indonesia and vietnam are markets that you do like. they said market access could be the root cause of this. does liquidity concerns become the focus in some of these markets? there are more ipos coming to the market and that is a good thing. we're going to see a structural reforms can be implemented their. going forward, we should see better earnings there. now, it hasin korea
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and thetty stable companies can generate cash flows. yvonne: so you're not thinking we could possibly get a fed hike in december? speak. have the fed do you think the hawkish tilt could actually change our language and dynamics? >> our view is that growth will , and interest rates should stay lower for longer. the key reason, if the fed wants to increase interest rates it's about the normalization of interest rates. right now it's at a very low level. if they want to increase it and normalize it, so that the next downturn may have more tools are
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weapons to lower interest rates. growth is actually pretty slow there. yvonne: we will leave it there. theext, disney could join race to buy twitter. we will have details just ahead. this is bloomberg. ♪
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>> twitter shares close at the highest since december as bloomberg learns that disney may be evaluating a bid. there are other challengers in the race. who are the potential suitors now? >> were also looking at salesforce, according to people familiar with the matter. first to disney in the house with the mouse.
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people say they are working with a financial advisor on a possible bid. in the watertoes potentially. representatives for disney and twitter did not respond to requests for comment but in talking with bloomberg news, reporters here, maybe the reason for disney's interest in twitter is it could be the new disney on kb --s disney's cable tv businesses have been getting fewer viewers, in addition to espn, there is more competition from companies like netflix. talking about this change in terms of subscribers online as well as cable subscribers, i guys whatow you you're looking at here in terms of the blue bars is twitters
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quarter on quarter growth. you can see those far outpaced the little white lines that you can probably barely see over there. that is the growth or actually the loss in terms of cable subscriptions here in the u.s. you can see the twitter growth far outpacing cable subscriptions of their. it's not the first time the ceo bob iger has been pushing into the digital space. van tech is the online platform for hbo now which of course is the popular home for game of thrones. jack dorsey setting himself up for potentially what is -- disney shares falling to their lowest since february 2012. disney has some
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competition, salesforce also working on a bit. what details to we know on that? at first match you might not think salesforce and twitter would be a good pair, but it turns out, you might remember what happened back in june, they tried to buy linkedin. twitter has similar things on its own team as well. that could be a reason for salesforce wanting to get in on this bid for twitter. -- salesforce declined to comment but we do know they are working with bankamerica on their potential bidders. salesforce seeing a pop today in terms of the share price but then we saw drop to close into the red and now it's lowest since march a.
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we've got a long way to go in terms of this but twitter does have a $16 billion market cap. any suit or will that much if not higher. awaye: we are just minutes from the first u.s. presidential debate out of hofstra university in new york. we are starting to see the crowds filling in right now. mark cuban just stepped in. market risk up ahead of that u.s. presidential debate. the dollar-yen is definitely one to watch during the course of the debates. and neck when it comes to the polls. each candidate getting 46% of likely voters. hillary clinton losing a bit of strength against young voters and women voters. play outis going to
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and what messages and challenges they have, we will hand is off to our colleagues when our special coverage starts now. this is bloomberg. ♪
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>> welcome to our special bloomberg's politics coverage of tonight's first residential debate. i'm john heilemann. now,st 30 minutes from donald j. trump and hillary rodham clinton will step on the debate stage for a 90 minute, uninterrupted, tension filled, bathroom break free showdown bcderated by

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