tv Bloomberg Markets Asia Bloomberg November 15, 2016 9:00pm-10:01pm EST
their highest level since february. hong kong moving closer to a trading link with china. members hold opec meetings to bridge the divide on production cuts. rishaad: we have the trump thect, this is the chart of hour. year to date, what is it telling us? haidi: the trump affect driving up volatility after the elections, and this could be good for asian assets. if you look at where the price is now and going forward in terms of futures options, some discounts coming through. we can see how volatility has spiked after the election taking place. the results in a way are off the higher valuations and
price-to-earnings multiples, 13.8, now 13.2 or thereabouts. by historical measures, that does represent good value, you could argue. are talking about the msci asia-pacific index. conversely,: you can talk about the end setting times we are in at the moment. rishaad: that's one way of putting it. haidi: the great unknown in terms of policy. rishaad: or the known unknown. let's get straight to the market action. juliette: it is looking brighter today. regional indexhe higher for the first time since thursday, that reaction we had seen to the election of donald trump. you are seeing positive conviction and not just emerging markets, but also widely across the board. on thatei strengthening
weaker yen, up 1%, holding onto the best level since the first of february. positive movement in banking stocks and export players. hong kong higher for a second consecutive session. .nergy players leading the gain tencent moving higher ahead of its results after the bell today , up by 2.3%. it had fallen quite sharply from the peak, down about 10%. the woni doing well, strengthening. heavy, one of thee of the best performers. strain market similar to hong kong, energy players leading the realit rally.
i want to show the offshore --minbi, another week fixed weak fix. renminbi the offshore breaking 6.8. we are seeing weakness following the fix for the yuan, down .1%. yen.t to show the japanese ,iving support to equities 108.96 at the moment. haidi: thank you for that. rishaad: let's get to first word news. paul ryan has won unanimous republican support for another term as house speaker, saying he has the backing of donald trump.
he welcomed the show of party support saying it is the dawn of a new government. in january, all members of the house will cast ballots, including democrats. sources say the issident-elect's son-in-law trying to remove loyalists of chris christie. on tuesday was fired after chris christie had tapped him to lead national security planning. ofed kushner is the husband donald trump's daughter. england's governors says the unexpected slowing of u.k. inflation last month has not changed his outlook. mark carney still expects inflation to exceed 2%. inflation was way down by the vices of clothing in october --
the prices of clothing in october. is going up, and the path that through from a 20% fall in the trade weighted level of sterling is going to come, going to build towards the end of this year into 2017. 2% expectation will be above by the middle of 2017 and stay there for a while because of that pass through. gained as muchy as 12% after announcing the spinoff of its non-shipbuilding units. splitmpany says it will off its construction equipment, electric, and robotics division by april 1. hyundai heavy reduced its workforce by more than 2500 people in the last quarter. sources say as snapchat ipo could come as early as march after its parent company filed
confidentially for an offering next week. they are targeting a valuation billion,llion to $25 but one person familiar with the situation says they are closely monitoring post-election volatility and made delay the ipo, if needed. snapchat has 150 million daily active users. 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 for that. the bullnever mind are mainland chinese shares moving. there has been a big buildup to the link. supposed to happen by the end of the year, formal trials this weekend ahead of that launch. it is expected to launch at the end of the year.
this is supposed to be the internationalization of the chinese equity markets with the extension to the shenzhen-hong we had thet after shanghai-hong kong connect. supposed to give foreign institutional funds exposure to the booming technology space and the stocks listed there, as a opposed to shanghai. if you want to look at how the the dollar, this is an outflow story. it is not that attractive to foreigners investing into chinese equity markets. global funds have sold a net 3.5 one billion yuan of mainland shares through the shanghai link this month already, even as the shanghai composite moves into bull market territory.
as you can see, the correlation between the losses steepening on that hong kong-shanghai link in correlation with the -- rishaad: you can see the flattening out of this line here. indeed, we have seen the yuan weekend. is foreign interest waning? we could be making money out of this? there are several factors at play. valuations are a concern as well. the shanshan feng composite index trades at 45 times projected earnings or current earnings, three times hong kong, 49 percent more than the nasdaq, double what shanghai is doing, so some say it is overbought territory.
to state funds were mandated help stabilize the market after that june 12 beginning of the iste last year, so there concern that now the market is in bull market territory, those funds could be selling out and that could have more pressure, so right now it's not that foreigners are not interested in the technology space, it is just the timing right now. it is an outflow story, not an inbound story. as we await the final launch of the stock connect. more: tata sons, getting heated. the global beverage division the mistry asemove chairman. yes, this is the latest move in a power struggle. 's indian partner is
on the fourth of november, independent directors at indian hotels express their confidence in mistry and praised steps by him. all that adding to the confusion as the share prices push lower. rishaad: they are accusing mistry of trying to take over divisions. there were many areas of concern about his time as chairman of the group and said trying to take control of some units, and they did mention indian hotels. now a statement from mistry's office defends his leadership. he strengthened its ability to absorb shocks. continuing to point the finger at each other.
shareholders, delaying the vote. the group which controls am see also but two other chains earlier this year. the conglomerate has halted expansion plans. but company has wide-ranging nterests and is trying to boost its user base. japan airlines promising higher dividends, shareholders disappointed with its performance. the carrier has been updating its fleet and building cash reserves.
shares now up. rose after sources told bloomberg that the carmaker had reached agreements with u.s. regulators on 80,000 vehicles affected by the emissions scandal. around 60,000 cars and repurchase 19,000 more, avoiding a full buyback and saving $4 billion. it is already paying a record $17 billion. those are your latest business flash headlines. the indian prime minister narendra modi has reached the half way point for his first term in office. he recently moved against tax ovation engraft and is now rehashing foreign policy. haidi: let's take a report card check of his performance so far.
great to have you here. one of the points you make is that compared to other emerging , india has outperformed, but in absolute terms it has just held onto growth. >> performance has been ok. older money probably growing around 6.5%. as you say, that is better than anybody else. one of the things that has helped india has been the slowdown in china, coming from a higher starting point and higher-level development. it stands out is the fastest-growing major emerging market. i'm sure the voters can lay this at narendra modi's door. he is popular, at least until
these moves against black money. the latest approval rating was over 80%, so a lot of of world leaders would be lusting after that type of approval rating. ike think you can lay some of the credit at his door -- i think you can lay some of the credit at his door. you look at the last government, they had oil prices are $100 a barrel. , aroundw for mr. modi $60. window onpened up a gdp that has helped the rupee and has started to accelerate spending on infrastructure projects. a lot of clients ask me what can go wrong with india. back to $60, go oil, that would
be a. -- that would be it. what more can they do in terms of the structural reforms they should be pushing through? >> this is where you have to give the administration credit. say, this is potentially another game changer for the indian economy, turning india into a single market, driving huge efficiency gains, so structural reforms have been important. this surprise attack on the black econom, you have to tip yt to the administration. they are really taking some
tough choices which should serve india well over the medium term. which was the real single market, the black economy. some are calling it note gate. what does that actually do? it is good for banking, but probably has the ire of a lot of people. economylarge cash-based , 50% of the people don't have a bank account, this is hugely disruptive in the short-term and is causing a gift in popularity for the administration. dip in popularity for the administration. this is disruptive in the short-term. rishaad: some people have been waiting seven hours to get their banknotes change. >> this is unfortunate, but this
is the price of taking bold and decisive reform. banks flushill see with liquidity, deposit rates are already growing strongly on the back of this. this is an money market rates to come down. this solves one of the problems of the indian economy, the r.b.i. had been cutting rates, but bank rates have not really been following. really help will and prove the efficiency of monetary policy. rishaad: two things, corporate's taking a bit of a hit. they can't spend their money, some of them. these people from going from the old notes to the new notes? >> you can't fully abolish corruption. you have to look at the drivers of that and have a fair and transparent tax system where
average rates are not highly punitive. further improvements on the tax system will be very important moving forward. yes, there may be some short-term hit the to conception, but you have -- consumption, but you have to focus on long-term benefits. dimension is this will help increase the formalization of the indian economy, so the tax base will be larger moving forward and that should help to increase the fiscal space for the government to carry out the necessary spending on infrastructure and human capital that india needs to move forward. rishaad: always a pleasure. haidi: macau chooses to keeps its targets tame as it shifts from high to casual gamblers. details on that story our next. this is bloomberg. ♪ -- our next. this is bloomberg.
"bloombergwatching markets: asia". macau has said it's targets lower. rishaad: we are all over the story. out in theis work future? does this recovery continue? it >> that ishat analysts are hoping. gamblers coming to macau is now focused on recreational gamblers rather than vip. haidi: in terms of the response hasealing with the changes, it been agile enough? >> the macau government have recognized they need to be less
dependent, so they're looking at ways to boost tourism and build infrastructure that encourages more families to come and visit macau. rishaad: they are after this non-gaming revenue, the holy grail for them, but will it work or not? is the relationship between the hong kong retail sales story , particularly the high-end, suffering? you could argue it is the same thing in macau. >> hong kong retail sales have been falling for about a year macau's gaming revenue has been falling for about two years. macau has been more proactive in trying to cater to this new audience. , were seeing fewer chinese visitors, then spending less. hong kong has been looking into developing new tourist attractions, but at the moment
>> it is 10:29 a.m. in hong kong and beijing. the pboc has weaken the yuan fix for the ninth straight day. today's rate is 6.8592. a former advisor told shanghai therities news that economic fundamentals do not support a long-term depreciation in the currency, but there may be a short-term overcorrection. singapore's $1.2 billion global ind lost more than 6% october, even before the biggest bond rout in over a decade. thegains are now 36%,
second biggest performing quantitative hedge fund. foreshadow more pain ahead for fixed income investors. donald trump has delivered a double blow to investors in japanese corporate bonds. stimulus plansd are making earnings unpredictable and boosting the appeal of rising sovereign yields. are recommended to seek safety and higher rated bonds. the average yield on company notes rose to the highest since january. above $45 a barrel after the biggest one-day surge in seven months. is in a push to secure a deal on output cuts. several countries are leading the charge after meetings over the weekend failed to resolve
risks. saudi arabia, iraq, and iran odds two weeks ahead of opec's next meeting. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: this is bloomberg markets asia. i am haidi lun. rishaad: i am rishaad salamat. up the rest of the asia-pacific. >> that's right. tove seen the nikkei hold on those highs on monday before retreating yesterday. 2%, even as we see the yen gain a little against the dollar in the morning session, but it had quite a bit of a retreat during yesterday's session. banking stocks looking good, financials lifting those gains on the nikkei as they head into break. elsewhere, conviction in the
regional index, but not just emerging markets, which recovered from four-month lows, also some strength key players kospil, the supported by that weaker dollar. a little switch out from the shanghai composite. the bond market as well, 10 year japanese bonds, we did see the yield retreat a little bit from that level we saw, the first time the yield at 0% since september. having a look at australia, the yield they're a little weaker as well, down slightly. i want to show you some stocks we are watching in the region. having strongdai heavy movement following the announcement of its business spinoff. well as is rising as
super mario can be downloaded for free. pay $10.l have to nintendo will introduce the game on android devices later. the mystic films account for sales. 100 more be releasedt to before the end of the year, which could boost the overall box office to an even greater record. those are your latest business flash headlines. the nasdaq has promoted
free mint's ceo, making her one of the most influential women on wall street, and first to run a major u.s. exchange. we ask about the changes she expects. >> the great news is i have been working with bob for 10 years. i do feel that i have my hand print on the vast majority of what we have been driving towards and focused on for the last two years, so my job is to continue the journey we have been on to make sure we continue to be a critical market infrastructure provider and technology provider to the capital markets. we have been expanding the capabilities, so will that be a focus for you? deeply embedded
in our dna. it is how we got started as the first electronic exchange. that will continue to be our bringin how we can emerging technologies and drive them to a allow our clients to interact with capital markets as efficiently and effectively as possible. client coupled with service, regulatory operations, and all the other things that come with being a world-class exchange. anything different we might expect to see out of the nasdaq? >> generally speaking, we have been transforming nasdaq into a global financial technology provider, and i will expect i will continue to take that journey with the clients and our employees as we continue also to be a great exchange operator. >> let's talk about regulations. there is now uncertainty around policies in general. we were just hearing from president obama talking about
what may or may not be expected or what he is responsible for or not anymore. there is a lot of talk as we heard from president-elect trump about rolling back regulations that had been imposed on the financial world. how would that affect the nasdaq? extent we now have a republican administration and to the extent they continue to show a pro-business orientation, that does tend to come with balance and regulation, and one of the significant areas of regulation that has impacted our industry has been dodd-frank. while a lot of safeguards have frank,t in place from. there has been unintended consequences, most notably that banks are no longer in a position to offer liquidity into some of the markets where we operate. we would like to see the opportunity for dodd-frank to be modified to allow banks to take
risk in the markets as they had to provide that liquidity. to recognize the fact that an enormous amount of work went into the creation of dodd-frank, and there were a lot of reasons for it, so we need to recognize the history we come from, but we also know that whenever you put in new alwaysion, there is unintended consequences that come with it, so how can we make sure we are more likely modifying regulation to make sure that it really is having the impact you wanted to have. >> would you say then that president-elect trump is good for the exchange? i would say a republican administration that has a pro-business orientation would generally be good for the financial industry. cute has also pledged to back on corporate taxes. how big of an effect will that
have on the exchange? >> if you have some of the tax policies they are considering in terms of potential changes in corporate tax rates, the repatriation tax, holidays and other things like that that make it so companies can optimize the cash they are generating and reinvested appropriately in growth, that is good for the economy. haidi: coming up -- hasaad: rodrigo duterte been called the donald trump of asia. what: we will talk about may divide are you 90's to colorful personalities. this is bloomberg. ♪
rishaad: you are back with "bloomberg markets: asia". i am rishaad salamat. the bank of england governor says the unexpected slowing of inflation has not changed his outlook. mark carney expects inflation to exceed two percent next year and stay there until the end of the decade. inflation was way down by the mark of clothing, but carney says the weak pound will drive prices higher. rishaad: india's crackdown on black money may have an unintended consequence, a slump in consumer spending.
bank branches are running out of cash on a daily basis. india's finance minister says it ,ill hit short-term spending sending the index of consumer goods to a low. haidi: the pboc has weakened the yuan fix for a ninth straight day. saysmer pboc advisor china's economic fundamentals do not support a long-term depreciation in the currency. there may be a short-term overcorrection. rishaad: macau's conservative forecast for next year, but the government says it is confident the economy can recover. at 25 billion dollars next year, 13% below, macau ending 20 straight months of falling casino revenue as they shift to tourists and the
casual gambler. rodrigo duterte has been called the donald trump of asia. he admires donald ismp's judgment, so there a relationship or will it end in tears? haidi: if you look at this mix of two personalities, what is likely to be the result? >> the initial signs are that there is a cooling off. between and risen obama over his criticism of the drug war and human rights abuses. extrajudicial killings and things. they had a meeting canceled and laos. when donald trump one, duterte said he cheered it initially.
he said we can get along now. he sees someone who will not be as critical on the human rights front. rishaad: will duterte continue his shift to china under trump? we saw this when he went to see xi jinping, announcing his separation from the united states. >> he has said that will continue. he is still moving in that direction. where the u.s. philippine relationship goes and how that fits in with the china relationship, a lot depends on who donald trump appoints as secretary of state. a couple of names he has been floating around are hawkish on china, advocating sending naval ships to the south's china sea to deter china from moving into disputed territory, so you should have a much more hawkish administration.
a lot is unknown about donald trump. he could go either way obviously. rishaad: we do know donald trump the candidate. >> exactly. it is like when duterte came in, saying all these things, disrupting a lot of alliances that have been in place for years, but if you look at what he has done, it has 10 mostly a rhetorical shift. he has not broken any alliances are scrapped military cooperation agreements. trump is the same way. he likes unpredictability. haidi: this sort of duterte watering down of the extreme views he took when he was out on the campaign trail. how it has the impact on the economy played out for the philippines? >> we saw a lot of capital flight when he said he was breaking up with the u.s., but
economists are pretty happy. he is spending a lot on infrastructure, consumer demands up, soike it will stay economists see more than 6% growth, one of the fastest growing economies in asia, so all this bluster we hear every day, the headlines, people are still bullish on the philippines. rishaad: a lot of money has been pulled out. >> there are many ways this can go. some people say -- american businesses are saying are we welcome here anymore. members of his administration are trying to tamp that down. he also has commitments for
chinese investment and infrastructure on that in. a lot of people are kind of wait and see. rishaad: thank you very much indeed. angie andt ahead, david will be around with the big stories on the day so far. what do you have for us? years of thinking it could cannibalize its own sales, releasing super mario run worldwide. will it go the way of the pokémon go craze? investors think so. talk about volatility, and shenzhen, how is the timing? the next hour of this is bloomberg. ♪ , we talk about all this.
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