tv Bloomberg Markets Asia Bloomberg November 14, 2016 9:00pm-10:01pm EST
international. petrochina's parent is said to be offloading its non-energy assets. sessionn in the asian continuing. it is of this bond story -- >> they've had a fantastic time of it in the japanese market. there's is posted via around, we're seeing a little bit of a breather. the yield are going above 3%, 2.8 of them moment -- 2.8% at the moment. themetty remarkable at moment. for the first time since donald trump was announced as
the victor of the u.s. presidential election, you are starting to see this bond stale -- sale of eight olympic especially when you look at the u.s. tenure note. 0-year note. a little bit of weakness coming in for the 10 year note. we're seeing a little bit of signs that we are seeing this update somewhat -- abate somewhat, also for the australian note. pretty steady now at 2.65% for australia. that is the highest since april. nursing a little more come through -- we are seeing a little bit more come through. the equity situation is different than it was yesterday, as well. more stabilization even if markets are mixed. the hong kong market fell to a three month low and you are
seeing more conviction coming through into that space today, particularly some strength from banking stocks. performers.est strength from retailers and energy. we're seeing a little bit of a pullback down by 2/10 of 1% in the last hour or so of trade, and of course the story of the dollar weakness is that we are seeing the yen strengthened. remember that it had that solid rally on monday. a slight pullback coming through their. still some weakness in australia and you are seeing a little bit of weakness coming through in some of these emerging markets, particularly in indonesia. a little bit brighter coming through for the laois and singapore. through,icture coming
but the bond sale is showing signs of abating. haidi: thanks for that. that's get to first world news. the former goldman sachs partner stephen managing is said to be the favorite for the role of treasury secretary, the choice awaiting donald trump's final approval. we're told he is the number one pick -- number one pick. he would be the third former goldman executive to hit the treasury since the mid-1990's. south korean president -- the south korea president is meeting the opposition leader today as lawmakers have appointed a special prosecutor to investigate the scandal that threatens her grip on power. hundreds of thousands of protesters gathered in seoul for the weekend to demand her resignation. there is not a parliamentary majority to remove her.
-- major u.s. operations are to be built by korea line corp. the margin is the preferred bidder and final documents will be signed next week. korea line shares are sinking. aig has agreed to show its life insurance is this in japan to the w grew group -- the w g group -- this would be the first japanese venture for a while. they are attending to simplify the business. they say the sale makes aig more lean and better focused. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am paul allen, this is bloomberg. rishaad: thanks. theung making a big bet on
industry -- paying for harman international. they are storing, harman closed 25% higher. this is what samsung sees as the future. >> it probably is the future for many tech companies. they are trying to move away from things like smartphones, which is reaching a saturation point in many areas of the world. the deal is expected to close sometime in the middle of next year. arounde paying something $112 per share, which is attractive, and there's a 20% at friday.the close at puttinglooking its technology, it's microprocessing and software, and marrying it with harman's entertainment. they want to present essentially
a movable mobile device that is all-encompassing, your gps, your entertainment all in one place. samsung said is not about cost-cutting, but the synergy. operate hanlan -- harman as a standalone entity. samsung has been pretty dominant in mobile phones, but can it translate back into this other -- auto sector. rishaad: when i heard about this, i didn't realize that it does all this. they're spending this money -- is the biggest acquisition they've ever made from a company that essentially grows organically. purchase forge samsung and emphasizes how important it is for samsung to make the purchase going into the
auto sector. they looked into the sector in the past, have been sniffing around. they were looking at buying partsof the -- parts of a unit. that is not gone ahead. here, and a billion-dollar deal, that is far and away the biggest deal they have ever made. , they are not interested in getting their hands dirty in that part of the business, it is not necessarily considered to be arrival to carmakers who want the technology, but to google's who are trying to build driving cars. they want someone who can provide them the technology but auto part of the
business. tmg stoked ton of -- spoke to bloomberg today and she says this deal and other similar ones underlined the importance of tech companies going into the future. >> harman, the iconic brand. in u.s. markets, but a big step for samsung, clearly planting the flag in a big way in the connected car and autonomous driving and really making a major investment. we also had the mental graphics deal in another sign of how big the automotive sector is going to be as technology is moving forward. this could just be the first, we could see other non-traditionally -- companies that don't normally buy into the autos asor looking at
a way of going forward into an area of interest in the future. haidi: everyone is trying to get in. samsung putting big money on that. thank you so much. rishaad: looking at china, national petroleum corporation, the parent company of petrochina, could be looking to spin off most of its non-energy assets, forcing it to streamline because of oil. haidi: tom has been looking into this, what a rehearing so far -- what are we hearing so far? two weeks of low oil prices are taking their toll on this energy giant, the parent company of petrochina. they're looking at spinning off a number of different units that make up about 10% of their employees, units like schools, utilities, hospitals.
these are largely nonprofit making according to the company and will be spun off and takened up and probably over by regional governments or joint ventures with the help of outside investors. it is part of the streamlining whichs for the company, employs around 1.5 million people, making it the sixth largest employer on the planet. as ais part of a push state owned enterprise that has been able to whether some of these weaker oil prices thanks to cheaper loans, but this is coming to fruit now, $24 for oil over the last year, they are having to react. some of these units that are being spun off, they are owned by the parent company, not had for china -- petrochina. petrochina has seen profits fall around 95% as a result of weaker oil price, and they've already
had to spin off pipeline access this year to meet profit targets set by the government. the question is, how does this fit into china's broader plans to reform state run enterprises? pushit is part of his being led by the central government. the oil prices part of that, but also part of the wider strategy to restructure these state owned enterprises, and there are a number of different takes that beijing is pioneering pursuing with this, and one of these is streamlining. the president has re-articulated a number of times his desire to see zombie companies wound up or sold off. part of the other push is mergers within the state owned enterprise arena. we've seen almost a trillion dollars of these kind of asset combinations since 2014, in the
chemical space, in steel, and shipping as well. is part of this broader thrust by the central government and is the biggest shakeup of state owned enterprises since the 1990's. many would say it is not going far enough fast enough and there are concerns as well about a push by the government to make sure these state run enterprises prioritize the priority of the cpc and the government over market forces. this is an example of streamlining and the chairman and gast frontline oil staff will not be laid off as part of this restructuring. all right, our correspondent in beijing. still ahead. rishaad: consulting a digital dog. how a chinese companies trying to link patients together online. airline --how an
♪ rishaad: you are back with "bloomberg markets." australia's consumer commission -- filed charges against they are accusing came line of of cartelk-line conduct between 2009-2012. they're saying there investigation is continuing. -- says staff is shellshocked by a $10 million payment made in relation to an oil project in guinea.
they said they have hired external lawyers the way they were made aware of it. they suspended alan davies last week and alerted the justice department and u.k. front office. it could take several years to resolve. america's second-biggest cigarette maker may be looking for a better offer from british american tobacco. sources say reynolds american has rejected a $47 billion buyout as to cheap. the transaction would overtake philip morris as the world's biggest public traded tobacco business. malaysia airlines has had a difficult couple of years after two unexplained disasters in 2014, but the company's turnaround strategy of scrapping other strategies is paying off. rishaad: let's go to our
southeast asia correspondent. london route the is one bright spot for the airline. you're absolutely right. exceededndon route has expectations. we have the sea you -- ceo of malaysia airlines. thank you for being with us. you have talked about how the london route has done exceptionally well. what has contributed? >> i think the marketing. also, we have some super fares for people. about 450res at american dollars, and that is a great value. great food, comfortable seats. we are pushing really hard. was 45 percente
back in may and we are not up to 60% and we hope to keep it there. we just hope to get the malaysia airlines brand out into the public. >> when you drop prices, yields tend to suffer, are you seeing lower yields? >> we are seeing low factor improvements of about 20% across the board. we just put in some new lie flat beds, and that is an -- is proving incredibly popular. we also had a lot of seats unsold so we're selling seats domestically at around $25 and that is proving very popular with the public, they are getting used to traveling with malaysia airlines again and enjoying our great food and hospitality. >> says the restructuring plan was put in place, where are you in this whole journey? are you satisfied with where you are? wewe're a bit ahead of where
plan to be -- >> are you surprised? >> i am very surprised. there is a big effort on the makesia airlines family to this happen. i expect we will be profitable in 2018 and we are targeting to get back into the public market for the listing in the first quarter of 2019. >> where are you? 50%? >> in terms of a soccer match we are at about half time. going into the first difficult 20 minutes of the second half. we have been through a lot and we are going to push to it and i'm confident we will be successful. >> what makes you think this is the right strategy for china? i am over 30 years in tourism and i've never seen an opportunity like china is for malaysia and the people of malaysia. the global trend in
transportation is china. is going to have 150 million more customers -- potential customers. the only people who speak chinese outside of china are in malaysia. we've had a fantastic opportunity. we're opening nine routes to china. we are hoping to bring millions of chinese people on the holidays. >> chinese confidence was dented after the crash. have you recovered? great.covery has been i don't have enough seats to sell. what happened in the past is the past and we are all moving on together to try and build a great future for our airline in the country. >> how much support have you
gotten from chinese government in your expansion plan? >> at local airports, the local aviationes, to the companies, it could not have been better. one of the heads of one of the airport said to me, malaysia airlines was the first airline that flew on many of the roots in china when they opened up to the international world. he wants full-service carriers, they don't have much interest in low-cost carriers, people want a business-class product, and i think we are vertically poised to capitalize. >> you also facing tough competition in your backyard. what do you make of the competition? >> i think we have incredible, titian from the lion air group and air asia group. the competition is great for the consumers. consumers at the moment are getting incredibly low fares and value from malaysia airlines.
i believe we have the space for a full-service carrier with a first-class product. more, you are looking like a regional carrier instead of an international character -- carrier, is that fair? >> yes. we can't compete with the unbelievably low fares that some of the middle eastern carriers have right now, but i think there will be a place in the future for malaysia airline to go back to europe. right now, we have a massive opportunity in china and other asian companies -- countries. also, to london. we are to grasp that opportunity. >> the biggest risk? >> i think complacency, a lack of attention to detail and lack of focus. we have the support of the whole country behind us and most of the world wishes malaysia
on the face of it is a really good result, but if you look more closely, look at interest income, it is down at all three banks that is the core of banking business. that has been down for five consecutive quarters. also see income was down by a couple percent. that is concerning because if and focusing on fee incomes as opposed to learning and it -- loaning in a difficult environment. what has been good, trading income. there been sales across shareholdings, which they pledge to do, and step up governments. was -- a lot of items have been the driver for the performance at the three big banks this quarter. haidi: thank you so much for that. next, donald trump
they say the assets include everything from hotel to assets they may offload the division by handing control over to local governments. gains after the $8 billion move. two thirds of revenue comes from auto technology. swedish prosecutors are questioning assange over allegations of sex crimes from six years ago. he has been living in political asylum since 2012.
they deny wrongdoing. prosecutors say they will not make any public comment. global news is powered by more than 2600 journalists in 120 countries. let's have a look at what is going on in the markets. they are getting back from the lunchtime break and it is a mixed picture with fixed income. >> yes. we have the bonds going higher science and they hope to moderate somewhat. it is positive momentum in emerging markets and they have been hit very hard.
weakens and you are kongg it of 1% with hong and they hang seng rebounding. they still see the banking players doing a lot of heavy lifting. on the back of the data, you are seeing the selling and on the nikkei, going into the lunch break. the, of course, is on dollar story and you are seeing the yen strengthening with movements in the currency and flatffshore renminbi being
, at the moment and have seen sinceshore getting lower 28th. you have a look at some of the commodity-based currency. you have yield in the 10 year. it is holding at 2.6% and it is the highest. trump has a proposed stimulus that is expected to boost inflation and would give the federal reserve another
reason to move. >> three federal reserve presidents have spoken. what do they make of this? >> we have 11 more to come this the president of he now seemsd and to be signaling that the door is open to a december hike and he he is ready. >> i think you will see the move of accommodation and i think you will have to do it in a patient way. >> the world industry projections go to the far right side of the screen and you see the line going straight up and the time around and after the
presidential election last week with the high of 94% from earlier. the unitedoted that --tes needs a fiscal booth boost. >> what is coming in? mandateing on the dual and they are taking into account the potential shocks. they said it was too early to react to the specifics of the stimulusthere is more and rate hikes. jeff said it is a faster pace
for hikes. interestessitates rates and policy rates. for me, the markets are and it isstimulus likely to mean more rapid rate increases. >> you have the bond market selloff and we will see if it carries through to the rest of the world. >> what if donald does not get what he wants with fiscal stimulus? are the markets getting ahead of themselves? >> they mentioned a faster pace for the rate hikes and a theory that he will speed up the federal reserve. signalsederal reserve
interest rate increases, that could do more major damage to the market. let's jump in for another chart. what you are looking at is a purple line at the top with a path of interest rate increase and expectations and november has a white line, which shows jumping and the blue bars are putting this in a different panorama and you are 2018 and thereo will be more of a rate hike factored in. more speakers are coming in after asian trading and we will see what they had to say. >> all rights.
prime minister has helped to transform his country into a growing country in the world. >> he is now turning his attention to foreign policy and we are joined now to talk about what this is all about. through, he had success with the foreign policy and he uses it as an effective tool and creates an environment with investors. told that the message was common. india is still the fastest growing economy in the world and he is walking the talk on this
front and the message is clear. as far is policy is concerned, he reached out to ensure peaceful relations and the new delhi equation with washington has changed dramatically and he has stuck with shinzo abe. one piece that remains curious claim thisd he can to be a relative success. >> is pakistan a top priority? how would it be characterized.
>> he was invited into office and he followed that into we are at a time where india and pakistan relations are at rock bottom and this leads to a script expected relations have reached a point of no return. there is virtually no trade between them. little and china remains the biggest trading partner and trade relations have shown some signs of improvement and we are
talking about resumption with this is ay's and setback. >> thank you very much. trump may be bringing electionst before allies into his administration. giuliani may be a favorite for the role of secretary of state. >> the name of a former goldman sachs partner emerges as the top pick for a treasury secretary. the national finance chairman and has been considered the leading candidate. this is not consistent with president elect trump.
he has a path of loyalty with his allies. a second generationhen nook goldman partner and he would be the third goldman partner to do in following the footsteps -- of robin rubin. monday, as he was leaving, he was asked by many reporters on the transition and they are a billionaire and a state representative from texas.
meanwhile, president obama spoke and he can't ensure the public and nato allies at the commitment to the alliance will continue even through the administration. he expressed a great interest in maintaining our strategic thetionships and trans-atlantic alliance. i think this is the most important function i conserve. >> of obama said that he was impressed with trump being charismatic and practical. that theagmatic and
>> good morning to you. well, the digital health check, yes. a bit tongue-in-cheek. we are looking at the online sector and it is one of the largest. the most notable is your platform. how is the relationship with china? >> we have millions and millions of users getting online and they can find good doctors through the app with assistance from the doctors and they get free
consultation. challenge.a big how do you monetize and get revenue? >> that is another story. the company is on the internet platform and it is nontraditional. first, we need to get people used to the internet to get consultationsnd to connect with the doctors to getonline apps and they can free consultations from the doctors and go to the online pharmacy to get the medicine delivered to doors and, on our app, we have the health management programs and we can purchase a pate in these we have the online
and social health community and they can be able to watch the and we offer a lot of services. >> is this a way to get users to potentially buy life insurance or other policies? actually, we thought about the separate company and our goal is to get the online health and we are not just another wave of insurance, which is why we focus on online
services to our customers. a, the health insurance is partner with us. >> it has been a hard sector and there were about a thousand health care assets that were names and not big a lot of them were doing very well. andhave 120 million users the daily consultants and i come back to how you make this viable. >> you know, we build on top of and we wille andrage the insurance migrate them.
this came from existing customers and the rest are internet users. seet now, we can clearly the first one is the advertising and the from ourn for sales partners and the medical providers. the second is developing a sell tofor service to individuals with online and off-line. about one million ises calls and the third and theysurance
>> we are back with the asian it is grege and gibbs in hong kong. >> lending came out in august and we have seen me regulator starting to tune up this year and what is coming out of this is customers getting smart about this and starting to realize the risks are more transparent and this percentage of
the market and a consolidation of the market, not necessarily in terms of acquisitions. >> it will speed up the consolidation and you said it will be a handful. >> in terms of the market share, it will consolidate and there will be hundreds of players in sits and where the market will be much closer. >> this could squelch a lot of opportunities for the smaller players. >> where we are, they have a series of red lines that you cannot go below and this is not a space where you can play. huge and the still