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tv   Bloomberg Markets Asia  Bloomberg  November 10, 2016 9:00pm-10:01pm EST

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singles days sales passing $10 billion. reality,oric versus whine donald trump may find it harder than expected to label china a currency manipulator. well, we have been looking at this chart. terrorism fromt china and how it affects -- tourism from china and how it affects japan. that white line is consumption, including tourism.
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consumption excluding tourism, so you can see that the merchants. domesticwe have weak demand. these numbers continue to burgeon out of china into japan. getting to the market action. a bit of a mixed picture a cross asian equities today on what has been an extraordinary week. in are seeing that weakness emerging-market currencies hitting the market, particularly indonesia. down 2.2% at the moment. the philippines down by over 1.5%, and taiwan is being heavily sold off as well. financial players, the search for yield continuing, financial stocks leading the way
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along with energy producers, although we have seen a pair back in that oil price rally. the dollar's strength happening everywhere, a weaker yen, the nikkei up by .8%, so are a lot of positive momentum coming through export players in the region, weakness from some of those materials players that ran hard during thursday's session. in australia, upside helped out by that rally in oil prices. oftos up 6.4%, also a lot conviction in those copper players, copper surging to its highest in the year, but you have in seeing these gold players don't. dumped, new crest weaker by 7%. on the hang the way
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seng index, but a lot of weakness and tech players. tencent down by 3.5%. pretty flat on the shanghai market, the weakness in the won affecting the kospi. some ofve a look at these currencies and what it looks like when you chart them. its biggestn 4%, drop since 2011, leading declines in emerging-market currencies across the region, heading for its biggest drop in five years. this rally in the dollar sapping demand for emerging-market currencies. if you have a look at the korean rallyt had a strong around this time last week, down 1.6% at the moment against the dollar. so, quite a bit of weakness. let's have a look at the fixhore renminbi, the yuan
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about 6.8 for the first time since 2010, weakness in the are a lotenminbi, so of movement coming into these currency players. a drop today, so the yield continuing to rise on the 10 year note in australia. it rallied by more than 20 basis points thursday. australian bonds at their lowest level since april, so the return note, 2.58year percent, quite an extraordinary week. haidi: thank you for that. rishaad: let's head over to sydney and joined paul allen for first word news. after years of tension, president barack obama and president-elect donald trump have pledged to work together. during their meeting in the oval office, obama told trump that if he succeeds, the country succeeds.
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donald trump said he did not expect the talks to go that long. donald trump's transition team has pledged to dismantle the dodd frank act. theing is accentuating positive after donald trump selection win, saying the two countries mutually beneficial trade relationship must continue. a former washington-based chinese diplomat that asians may thrive under a donald trump presidency because he is pragmatic as a businessman. the foreign ministry in beijing is trying down his anti-china rhetoric. >> most of the remarks mr. trump made during the campaign were about u.s. domestic issues. when he addressed external issues, he said all of his related marks related to china were negative, as far as i noted, that was not true. japan is trying to push ahead with the tpp before president-elect donald trump
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takes office. japan's lower house passed the legislation thursday. abeme minister shinzo is hoping that will help president obama get a deal with congress before his term ends. donald trump has threatened to withdraw from the tvp on his first day. final bids for hanjin shipping business. they got two offers before the deadline and would now select a preferred bidder on monday. hanjin file for bankruptcy protection in august, setting off supply chain disruptions around the world. and shanghai are still closer to connecting their stock exchanges. both sides agreed to develop roles and implementation arrangements. philip hammond says the link will bring mutual benefits and open up new sources of investment for london. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg.
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haidi: alibaba has had an impressive start to its singles billionnt, more than 10 bahra n dollars in sales. tohaad: let's get over shenzhen and tom mackenzie. how is it going, tom? yes, the numbers are quite staggering, $7.2 billion in the first two hours, and the latest number behind me, 10.7 billion dollars worth of sales. are only 10 hours into the day, so we could easily get to $20 billion. that compares to 13.5 billion dollars last year if you take into account currency changes. they have made 360 million deliveries already today.
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this event increasingly important for international brands trying to increase their footprint in china and the branding in china. litmuslso an important test for the help of the all-important chinese consumer. if these numbers are anything to go by, they remain bullish. it is interesting. we are looking at more records being broken, but alibaba's u.s. traded shares fell over worries about how the donald trump residency would affect the expansion of trade overseas. is this the big picture overshadowing sales today? it has in some way overshadowed the event, and the math behind me shows interestingly that chinese consumers today are buying most of their products from the u.s., and russians are buying lots of products from china. of the salesture
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cross-border at this festival, but alibaba is something of a poster child for globalization, so this does pose a challenge to them, the brexit vote and donald and his proposed policies. we heard from the executive vice chairman of the company, and he gave his thoughts on what a trump residency could mean and the implications. take a listen. >> we think that when you are in the position of president, you have a responsibility to look out for your country, and the is toolution for america engage with the rest of the world, because we live in a global marketplace. analysts saying that of all the chinese internet firms, alibaba would be the most exposed if trump did put into place those tariffs. spoke to a consultant who
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knows the company very well. he says they will likely focus more attention on the emerging markets in the years ahead. haidi: tom mackenzie coming to center, the control first time they have had that in shenzhen. haidi: just ahead, we will be sustainableut how this whole singles they phenomenon really is. this is bloomberg. ♪
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we have noble group shares slipping after another net loss in the third quarter. million, compared with a profit of 25 main dollars
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a year ago. costs,hrank 38%, cutting the vesting itself of assets, and that after a full-year loss and downgraded to junk status. in nexon soaring despite a 60% drop in profit. to $71 million in the third quarter, missing estimates by 50%. it says it booked $165 million in fx-related losses. michael kors tumbled after cutting its earnings forecast, expecting profit as little as $4.37 a share, 6% less than the previous profit. they are selling less
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merchandise to department stores and the use of discounts weighing on sales. haidi: we will get back to , the mostsingles' day lucrative made-up holiday of the year. sales looking to surpass last year's record. rishaad: 85% of early transactions made through mobile devices. well, i mean it is singles' day -- it is singles' day because it is 111. tell me about it. how did it come about? how big could it become eventually? they decided they wanted to create something special, and so ,hey decided on singles' day give some tree to those people who don't have a day.
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so this is seven years for them, and last year, $14 billion. this year, we're expecting 35% growth to have $19 billion in one day, but the way i look at it is that it is not just alibaba, this singles' day has become a global online sales festival. i see some companies in taiwan, they, even are joining the whole campaign, promote products. black this is bigger than monday and cyber -- black friday and cyber monday combined. one of the floor managers were ising how one of her friends sitting at midnight with big-ticket items in their baskets. jack ma says he wants more than
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50% of sales to come from beyond china. he wants to take singles' day to the u.s. and u.k. happen withgoing to all the anti-china rhetoric that has come with the trump presidency? say for thed to u.s. market because of what you see happening now, but the international market is more than the u.s. am especially asia and emerging markets. when you are talking about online sales, it is about the density of the population. there is a lot of population outside the u.s. i think the advantage for alibaba is they understand about the emerging markets. the data i'm looking forward to rurale percentage of areas. that havehe people
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never really touched online sales before. the mobile phone is an opening for them. rishaad: it has changed everything, sn't it? >> because of the day-to-day have accumulated, they can easily penetrate into other emerging markets. rishaad: this event is bigger than alibaba now. i think you did some research saying that if you don't join it , you can look forward to a 10% fall in sales through the year. yes, this has become the platform for everybody to join and leverage each other, so this is the power of it. what ibottom of it, asked people to look at is not -- which type of cloud computing system can handle this argument transactions? it is a vote of confidence as well. haidi: i am intrigued by this
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shopping is entertainment. rishaad: also calling it social shopping. have a live, they actors, singers, and at the same time, they play a lot of games, so it is an interactive event. is because they now have the data, they know how to of customers at what time and what type of activities, so they are doing it , and a lot of technology as well. the year you can wear and experienced virtual shopping, so all this technology they put into it, and they have the game as well, so making it not just a sales, but entertainment.
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together.ything in fact in china, what i experienced last year is that it is like a national event. i have a group of people who have come over and said you need to contribute something. ?aidi: did you >> i did. i brought some shampoo -- bought some shampoo. it has become like the national spirit, i want to break the record. are winners and losers here. who are the winners and losers? the winners are alibaba and other online companies, and the customer to some extent. the loser is the retail market, the physical store. they need to think about what they need to do because where everything is online, you need to bring a different experience.
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you probably need to put more technology in your store and bring more professional advisory to the store as well. haidi: we have looked at this remarkable trajectory in growth ed.ce alibaba ipo is it getting to the point where we are no longer breaking records? 45% year on year growth, that is not sustainable. it is quite scary, isn't it? this year, what we see additionally is the rural area. a little may slow down bit, but it is about changing the buying behavior. things can be offered online, and the key thing also is that with the data and theysis, they can capture data more accurately. rishaad: any bargains, have you
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spotted any so far? >> i think they are quite successful already. rishaad: looking for bargains. haidi: any bargains to be had? i have heard people buying everything from water heaters to esau laurent purses. laurents this is the data they are using to launch new products. you can gethe time some of the latest technology with a good price. if you can log on. i'm trying to do that at the moment. anyway, thank you very much indeed. up next, indian prime minister narendra modi is in tokyo. rishaad: the focus will be on whether he can get a key nuclear deal done, discussing the chances of that happening. this is bloomberg. ♪
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ministere indian prime narendra modi has going to japan for two major deals, a nuclear power agreement and high-speed rail. rishaad: we are in tokyo. these big projects good for japan ultimately, i guess. >> yes, absolutely. that is what prime minister abe is hoping. nuclearficance is the energy cooperation deal, which has been in negotiation for years. is controversial and japan as the only country that has suffered a nuclear attack. it has always been cautious signing a deal like this with the nuclear power that has not signed the nuclear proliferation treaty. there is some concern that the byproducts of nuclear energy
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that come from joint projects with japan could help india's own nuclear weapons program. a lot of been negotiation around whether japan can pull out of his cooperation if india goes ahead and does another nuclear test. on the back of this nuclear deal , i think what prime minister that he can expand on the high-speed train deal that he signed. is on the line given that you are looking at a japanese economy struggling to get to in nice stancil recovery. domestic demand has been weak. these sorts of deals are pretty crucial. >> right, this is exactly the kinds of things that prime minister a has been promising. has been promising. for expansionom
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here. we have is many high-speed trains as you can imagine, so he wants to do these kinds of things overseas. when it comes to nuclear power plants, nuclear power is not popular in japan comes of companies doing that want to do it overseas now instead. , what about the issues out there that could prevent these deals getting done? >> right. i think it is not all that likely. japan has not officially announced it will sign this nuclear deal, but the indian side has said it is going ahead, so we are expecting it to happen today. not bely it might popular with the japanese public, and it does have to passed by the parliament. it could cost him some political capital. deal, it is more of an issue for prime minister modi. he has to balance reais and between china -- relations
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between china and japan. it's unclear whether he wants to and give them all the rail deals, or whether he feels he has to go to china as well. rishaad: donald trump's promise to name china a currency manipulator on day one of his presidency, is it time for a reality check? this is bloomberg. ♪
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kong, m:29 a.m. in hong paul allen with the first word headlines. currencies are falling on speculation that the federal reserve will boost interest rates to cap inflation from increased spending by donald trump's administration. feltit the -- the ringgit to levels seen last year. the truck victory is surprisingly good news for the
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boj. the yen has fallen since the vote. there were predictions that investors would rush to save haven assets. the selloff in treasuries have sent yields to a high. kuroda'slp governor efforts to revive domestic inflation. south korea's central bank held its rate, seeking to calm markets after the u.s. elections and they homegrown crisis. donald trump's victory raises questions about trade and security just as the president's approval rating plunges with the arrest of friends and aids over an and influence peddling scandal. alibaba posting more than $10 billion sales. one billion came in the first five minutes. the annual spending blitz divorced black friday and cyber monday in the u.s.. celebritiessted top
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to drum up support. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thank you. this is "bloomberg markets: asia." rishaad: getting straight to the market action. yes, let's start with emerging market currencies, because it is the story of the day. we are seeing a lot of weakness in emerging market currencies as the dollar index rises to an eight-month high on speculation of more fed rate hikes if donald trump is going to keep spending and therefore boost inflation. has been quite interesting in the last 10 minutes when you look at the indonesian currency, leading declines. it had fallen by over 4%, but is the dollar. against
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this as bank indonesia is in the market to stabilize the currency. drop is dueing the to hedging activity in ford's, but certainly it has been leading declines in emerging market currencies, following the most in around five years, also dropping, one point 6% against the dollar, and quite a lot of weakness coming through in the ringgit. the aussie dollar falling by .6% against the u.s. dollar, sliding to as low as.7567, breaking the 24 hour low seen as a support level back in october. having a look at what this means for markets, you are seeing a lot of week's in these emerging markets, led by the jakarta composite. taiwan off by over 2%, and the philippines weaker. in hong kong, the hang seng off
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1%, a story of financial stocks rallying in the search for yield. hsbc up by over 1%. of upside coming through in shanghai today, up by .2%, and as you mentioned, the nikkei now on lunch break, all the highs of the morning, but still strong as we see dollars strengthen yen week this, so now of 5.3%. australia upside in and new zealand, but korea being , down bye week won .9%, so a lot of weakness in the emerging-market currencies playing into market action. rishaad: right, just numbers coming out of toshiba in japan. it is blaming at shrinking television and pc operations and the strengthening yen. haidi: that's right.
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korean bank president saying we will be monitoring , unsure if truck plunges will turn into policies, but saying if when it comes to trial trade statements may, it would be negative, but also saying they will cooperate in stabilizing the economy. in line with the rest of the world, waiting to see -- haidi: just coming through for toshiba. yen -- ¥5.45.4 join trillion forecast, nearly ¥2.6 trillion here as well, and there we go, operating profit of ¥96.8 billion, net income of ¥115 billion as well. toshiba just closed out his morning session.
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we should get some reaction when things do resume. interesting, to shiva saying the strong yen a used factor when it comes to those results. front andency that is center when it comes to asia as we deal with this trump presidency and the policy uncertain seas. he made that pre-election promise to call china a currency manipulator. what really happens if donald trump actually managed to tag china in this manner? >> it is probably more slogan that having any real meaning. inrica has done this before the past, but if donald trump wants to do that on his first day as president, it would trigger a series of negotiations
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with china over a year-long time span, and if things have not improved, america would have other options, like calling the imf to increase surveillance of china and shut down any ongoing or existing trade talks are close down channels where companies get financial aid in china, so it sounds dramatic. in practice, it probably does not mean that much. haidi: you are looking at where the yuan is sitting now, the weakest fixing since 2010. it is a dollar story, but it fits into that kind of rhetoric. of course, we know it is a dollar story. this is what america has been wanting china to do. there are concerns around china's exchange rate, the lack risk ofparency and the financial instability that it
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poses to global systems, especially of china wants to devalue significantly. however, i do think there is a that the narrative has moved on from the days of labeling china as a deliberately for manipulating currency. if donald trump was to follow up with trade tariffs on china , he spoke about 45%, the fact that he is talking about tariffs on the world's biggest exporting nation is something to be concerned about. whatever it is, it could be a negative for sure. for moreright, looking on china here. skyhigh home prices, are they sustainable? haidi: we have more. we have seen this boom-bust
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cycle over and over again. >> that's right. that's what they want to avoid, the boom and the bust. they don't mind elevating crisis because that has been the driver of growth as exports and other areas have suffered. we are in an upside: property prices. rishaad: explain the white line. >> first-tier cities. a push for urbanization. rishaad: what is the red line at the bottom? >> that a zero growth, the baseline. 's ant numbers this morning month on month that beijing, shanghai are seeing price increases of new homes of more than 1% from september to monthr, beijing, 1.09% over month, so that is a really big jump.
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they have been seeing double-digit gains month on month -- and jen. what we have now are four academics from harvard university -- rishaad: it does worry me that you are saying we restrict exactly, it is half 101 economics basically. is harvard university, ok. there is something deeper here. there are a lot of different angles as to why they would say that. i want to give you some's statistics about the supply. there is too much supply out there. they are saying don't build more. work off that inventory. bear, but what china has built is 100 billion square feet of residential 2003-20 14, 74 square feet per person. these are insane and mind-boggling figures. houses isck of indie
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about a fifth of that, 20 billion square feet. is 14 square feet per person of empty space. >> to and have times the physical size of new york city, homes sitting empty and china, so they are saying that even though local governments need the tax revenue from home sales, these academics from harvard are saying they need to stop building new stuff. there we go. right. thank you very much. rising iny shares extended trade as the company predicts renewed growth will happen next year. we did have that stumble in the fourth quarter. we began by asking bob iger how the new shanghai theme
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park is performing. the biggest most ambitious project we have embarked on, building disneyland and shanghai. we open june eckstein, and outperforming months of operation, 4 million people visited the park and our loving what they have experienced. in prospects for that part the most populous country in the world is really bright. as we move to 2017, we feel great about what we accomplished in 2016. there is momentum in most of our businesses. we have headwinds like the cost of the new nba contract for espn and the fact that we don't have a star wars saga found in 2017, but we think the company is headed in the right direction. the factalked about that 2017 is an anomaly as a lower growth year. fair to say the media networks have gotten a lot of attention in part because it is so successful and large, but
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there are questions about the subscriber level for espn and reduction in subscribers. can you say where that stands and at what rate are you losing subscribers and is that continuing? >> we have been eyes wide open about what has been going on in the television business overall. seen a lot of disruption, people consuming tv on new platforms in different ways and in different places. aboute candid a year ago what we had been seeing at the ubs. regarding espn s a lot of it came from the cable like bundles. we decided to embark on a campaign to make sure that espn was included in any new bundles that launched, and we have been quite successful in negotiating deals with distributors. but whatearly going,
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are your first thoughts about how a president trump could affect the walt disney company? >> it is too early to predict what the policies of a new administration would mean for this company. believe me i have been briefed about how they might affect us, but way too early to speculate publicly. we have been talking a lot as a company and lobbying a lot for a new tax policy. the corporate tax rate is the highest in the world. it is not competitive and needs to get fixed. it needs to get lowered and loopholes closed, and we believe we would benefit from that happening, and the sooner the better. rishaad: bob iger speaking to us a little earlier. haidi: the world is mourning the passing of another musical giant. canadian singer-songwriter leonard cohen. his family made the announcement on his facebook page saying that with profound sorrow we report that he has passed away. a memorial will take
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place in los angeles at a later date. in debut album was released 1967. his final recording, you want it darker, came out just this year. , india scrapsup notes, but will it help? that is coming up. this is bloomberg. ♪
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rishaad: a quick check of the latest business flash headlines. standard chartered may see two exit most private equity investment within months. they have invested $2 billion in companies across emerging markets, but a chief executive has been weighing options for this unit in order to reduce risk.
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all of this as he attempts to cut costs and down to the bank suffering a huge loss in 2015. looking -- honda looking to boost margins. 60% of north american output will come from suvs and pickups, compared with 50% right now. like truck sales have risen 7% this year thanks to lower gas prices. a look ate are having bloomberg intelligence suggesting indian banks may see a pickup and earnings this order down to primem minister narendra modi's withdrawal of large denomination banknotes. rishaad: let's get more now from singapore. here?s the main motive it has made quite some ways in the market. it is about counterfeit currency. >> it is trying to tackle three things. currency, counterfeit
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a terrorist financing issue. the other is black money currently circulating in the system, but also this courage is -- discourages the use. financial move towards a banking system and other electronic or mobile payment channels. tell me something. how do you think this will impact and who will be impacted the most? are people saying this is a good move in any way? >> sure, it is a very positive move on all three fronts. the extent of the impact, counterfeit currency and black money get a big jolt, but overly help tax generation.
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the impact i term, see is probably on the cash term,y, but in the near it will be very disruptive sends a lot of retail and business payments are cash driven, and they might struggle, particularly in cities that are predominantly cash base. of promotion of electronic channels that should happen as a result of this, but all of this will be more temporary. when the new currency notes come back into the system, we might see the cycle starting again. it might give a little motivation for people to switch to online and electronic platforms and alternative channels of payment. we are expecting discretionary consumption
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spending, retail patterns, this will change and take a hit. people are cash strapped right now, so shoppers will basically cut their spending on higher ticket items like discretionary expenditures, expensive clothing, dining out inexpensive restaurants. largelysales in the private retail stores in india will take a hit. model -- this will make things even worse. actuallytailers will benefit you because more and more people rely on online shopping. rishaad: thank you so much for joining us. joining us from singapore. next, aoming up japanese game maker is the latest to admit that the yen has taken a toll. will be hearing why
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the chief executive remains upbeat. this is bloomberg. ♪
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rishaad: the online game nexpn profit falls 60%. n profit falls 60%. we will show how they are dealing with the slowing market. >> we think there is a lot of
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opportunity and the japanese games mobile market because we think there is a lot of opportunity for a company bringing out quality online products. those are the types of products we are introducing. we have had some early successes in japan in the last couple of hashs, and one of those been very gratifying. we think it is differentiated , so what else is out there we see a lot of opportunity in the japanese market. >> you say there is a lot of opportunity, so what might we expect? pc,ur focus is mobile and and there is massive installed bases. as you go down the different categories of products we have, we have some games that have
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launched nicely in one market inging aroundbe br the world. is wholly new intellectual property and franchises. then we have a significant number of partnerships that we have developed with game studios and developers around the world, not just asia, but north america. an example of that is lawbreakers. we have several categories of products, a new wave of games we are bringing out that have been in development for the last two and a half years or so. >> everyone has been talking about the buzz behind nintendo's super mario. that could be a threat. what is your take on that? one of the things we like
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about nintendo is they are very focused on quality, and so are we. we think the game companies that focus on quality do well over the longer term. two of our largest games have been phenomenally successful in china and korea, and we think if you build a business based off of quality products, games fun to play and differentiated from what else is out there, you will have a bright future. do a mix of mobile and pc games, but we see the pc game market, it seems to be slowing down, worsening, or do you see in stabilizing? >> what is interesting about pc is that for the last 10 years at least, analysts around the world has been counting out the pc business and said it is about to die. we have seen a renaissance in several different markets, including north america, on pc. we think the mobile business and
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pc business are converging. the mobile platforms are able to deliver -- stronger in the graphic processing units and the networking layer, so we can build a very rich experience on mobile. ofdi: the next hour "bloomberg markets: asia" to look forward to. >> it is all about the won and other currencies, dollar strength, and trump. also, the speculation about asia in the crosshairs of trade protectionism. is it time to change strategy? 111, more onay, "bloomberg markets." ♪
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announcer: from our studios in new york city, this is "charlie rose." charlie: in a stunning victory, donald trump has been elected the 45th president of the united states. trump defied poll predictions winning battleground states of florida, pennsylvania, ohio and north carolina. he spoke to supporters at approximately 3:00 a.m. wednesday morning at a new york city rally after receiving a call from hillary clinton conceding the presidency. president-elect trump: every single american will have the opportunity to realize his or her fullest potential. the forgotten men and women of our country will be footten


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