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tv   Bloomberg Markets Asia  Bloomberg  January 10, 2017 8:00pm-10:01pm EST

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rishaad: 9:00 a.m. in singapore, 8:00 in the evening in new york. i am rishaad salamat in hong kong. this is "bloomberg markets: asia." ♪ rishaad: toshiba is among today's winners. volkswagen closing in on a u.s. emissions deal with a guilty plea and a $4 billion fine. questing the cartel, three currency traders charged with
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using a chat room to rake foreign-exchange prices. ago, before we get underway in hong kong and china. singapore, taipei, and kuala decoupling up through what happened in the u.s.. again struggled to get to that 20,000 level in the dow. >> after what we saw in wall street, in asia we're headed for the best january. there was a surge we saw in metals. we see china's factory prices accelerating. highest arises in a month. ls on the rise there. elsewhere in the region, extending the rally for a seventh day. the sbi closing at 7000.
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the highest since november 2015. the nikkei up 0.1%. the yen, a two day climb. carmakers and electronics producers among the biggest gainers. toshiba up 4.8%. as 5.8%.ising as much here is a look at what is going on with that stock. we have seen it surge on signs lenders will support the japanese company. banks say toshiba's main have not had financing since february. it may be difficult to receive loans. there wast toshiba -- warning of a write-down on their u.s. business. 35% of itstain market value through tuesday's close. in the shares are closing at the highest since december 28.
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honda, we see the automaker recalling an additional seven it is 72,000 vehicles from the u.s. . the stock did dip, following the news. now it is up 0.2%. thank you for that. a lot to watch out there, toshiba in focus. equity markets, bucking the trend globally. let's get to first word news with haidi. haidi: meeting with a donald trump on the future of the mining industry. withndrew mckenzie talks the president-elect in new york about global resources and investment in the u.s.. incoming administration pledges to boost infrastructure spending, uplifting metals and producers. beenttorney general has
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rejected after confirmation -- his confirmation hearing in washington. jeff sessions agreed to recuse himself from any potential investigation into hillary clinton's emails and the clinton foundation. question his hard-line views on immigration, terrorism, and civil rights. navylagship of the chinese went through an error identification zone in the last hour. the ministry said they entered the zone to the southwest, going north along the taiwan strait. they had been carrying out marine combat drills in the south china sea since last week. the number of those killed in southern taiwan has risen since -- to 25. torrential rains have affected many people. plantations have been devastated, and stranded thousands of tourists. the severe flooding is reported
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provinces, and the main highway in possible. powered by more than 2600 journalists and analysts in more than 120 countries, i am haidi lun. this is bloomberg. rishaad: exposing a multimillion dollar deal with the u.s.. the emissions scandal, what are the details here? : $4.3 billion, for criminal and civil penalties. this is a draft agreement from volkswagen's board. this is expected to come through on wednesday when they take a look at it. then we will know if they actually accept it. and there is a guilty plea on the park of -- on the part of volkswagen when it comes to this cheating emissions scandal that has enveloped a lot of its brands. as i said come up $4.3 billion at stake. but it raises the price of the 23ire scandal to more than
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billion dollars. this is significant between of $19.2agen only put aside billion in terms of how much it wanted to pay out, that it could pay out. so this is over and above what they were expecting. with that said, let's look at volkswagen shares created here in the united states. 1:45 p.m. newund york time, there is a pop. that is when the news crossed here on the bloomberg. it popped by as much as 1% to close up by 0.4%. but we are looking at a high not seen since june of last year. six or seven months or so. we are seeing something along the end of the road for the financial -- but the brand of volkswagen. rishaad: what about the legal side?
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vwt is the latest on whether executives could be indicted and charged? ramy: yes, they can be indicted and charged. one person has already been charged. he is the liaison to the environmental regulators here. he was actually vacationing in miami, florida. is in been arrested and prison. he has also been deemed a flight risk so he will not be going anywhere. but looking overseas from the u.s. to germany it turns out volkswagen has found its executives in germany and urged them to stay in germany. that is because u.s. prosecutors are already thinking about looking to charge more executives. there is not been any comment as to who specifically they want to talk about. but volkswagen did come out with a statement, saying it would not be appropriate to discuss personal matters. one interesting thing he forth in the back to you is, there is
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an issue over extradition. the u.s. can charge of volkswagen executives with a number of complaints. but whether they can get them to be extradited from germany to the u.s. is another question. based on germany's contribution, that will not happen unless berlin allows it to. because extradition only applies to other eu nations. they can charge them, but that does not mean they will get them. rishaad: thank you, ramy inocencio they're staying with legal things. three traders have been charged for rigging security rates. this has ensnared big banks. tell me something, what actually happened here? >> late in the day we know that all three of these currency traders who have been linked by the government to this chat room cartel were formally indicted on criminal charges. notably, all three are in the
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u.k. right now. according to the government, these three were part of one of the biggest rigs on record. as you recall, in 2015, 5 major banks were held accountable. and they went after the individuals, as well. all three out of the country and charged with rigging currency rates in a chat room that involved trading of u.s. dollars and a euro dollars. let's talk about the specific traders involved. chase's former trader, richard archer. pressure. -- richard usher. citigroup, with another trader charged. a trader at barclays.
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what is very clear here, comes from his attorney. who points out he was cleared by u.k. authorities and never given any legal advice or guidance or instructed by barclays as the u.s. law. the charges carry a maximum penalty here in the u.s. and 10 years in prison and a $1 million fine. and --ely, both usher were charged $5 million from eight separate regulator and banned from participating in u.s. industry. there will obviously be extradition and it could be quite some time, experts say months of not years, before it is brought back to the u.s., if that indeed occurs. this?d: how did they work
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late 2007 and 2013. there was a form of doing business that no longer exists. these three traders, according to the indictment and the charges within, met in online cartel chat rooms. it was limited to specific trading fixed prices. the goal is to eliminate competition. back to you. rishaad: thank you for that. emerging markets coming up. how much can this -- how long can this optimism last? china shifts to consumption-based economy. but they have a long way to go. ♪
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rishaad: let's look at asian
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markets, mostly in the green today. they have boosted metals and other economies to read what you making of all this? the economy, the global economy, has showed signs of stronger growth at the end of last year. going forward to this year, i would think that the growth momentum is likely to continue. because now there are a lot of expectations coming from the u.s., to increase optimism about the global economy. economy,ee china's starting to stabilize and show signs of stabilization. lastly, international demand is starting to pick up. all these things are positive for the global economy. rishaad: indeed, new york showing signs of recovery. ands looking at the euro
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manufacturing expected on january 24. it has been rising exponentially very quickly. what is the end of quantitative easing and the tapering of that in europe mean for this part of the world? , thishink in europe quantitative easing has helped support growth in the economy. especially on the manufacturing side of things. but there are many other as iols helping to -- mentioned earlier, china is stabilizing. you all see -- you also see international demand increasing. the recovery is sustainable. and when you withdraw the quantitative easing, i think it is likely to continue for the better part of this year. , thead: with that in mind
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6.923, veryte, different from yesterday. it is virtually the same. no change when it comes to the yuan's state. when we talk about what is going on with china with the yuan, with a recovering europe, it has been years for china. because europe is its biggest trading partner. this should help the manufacturing side of china. of aask over the crack's consumption-the lead engine of growth. >> squarely this will help china to continue to move toward a consumption-based economy target. aeryone knows it will take long while, a long process or such a large economy as china to make that move.
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i believe we are starting to see signs that china is moving towards it. it is a little bit slower than what people would like to see. private consumption has been growing quite slowly. but the good news, the manufacturing side of china has been stabilizing. this has helped to balance and boost the economy, to its best quarter in almost six years. to have to are going leave things there, but thank you for joining us. getting to business headlines now. china communications technology, said to be among the final bidders for asia's broadcast satellite. are in advanced
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talks with a parliamentary firm, about $1 billion for abs which they are ready purchase. satellites for mobile phone signals for europe, the middle east, and asia. shares in toronto, as little as $10.9 billion the fiscal year. a dismal christmas season, weig hing on the company's projections. vehicles -- they would pay tilde million dollars to shareholders on top of first quarter dividends. share,ll receive $.20 a and say it will rise in 2018.
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car sales accelerating 17% in december. but they could be bumped in the road ahead. ♪
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rishaad: this is "bloomberg markets: asia." car sales, in a moment. a growing market in china. but first, the dramatic downturn in india. let's look through these numbers. deliveries falling last month the most in 16 years. blamed on a government cash ban. while two2 million, wheelers fell to the biggest decline on record. china headed in the opposite direction, car sales rising of
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the fastest rate in three years. >> not a cash ban. good news for pollution, i suppose. >> the world largest car market, the world's most populous country. they are getting more engines, and that drove sales. up to 23.9 million units in the vehicles segment. that includes suvs, sedans, and all that purpose vehicles. but not commercial vehicles. a gain of 16%. advantagehing to take of the tax cut on small engine cars. and also whittle off excess inventory at the dealership. are working separate from the automakers. thinhey sometimes raise a margin. they often have to cut a lot of that inventory.
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it is the biggest sale jump in china since 2013. that was the year china was the first country ever at any time to pass 20 million vehicle sales. now they have 29.3 million. the chinese auto dealers association secretary had to say this about the figures, it is like a giant that needs medicine to sustain its health. which means the biggest -- world biggest auto market is not healthy enough to survive on its own. they need tax breaks. do, any human being would they rushed when they got half off on the tax. we have this tax coming in, is at the calm before the storm? increase in sales tax in china will take place, as well. globally, the u.s. is expected to dip after several years of breakneck-paced growth. there will be headwinds of the
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auto industry as a whole. who knows what will happen if there was a trade war, with so many cars being made in china. they are starting to export to the you -- united states. hangover, will affect the smaller because a lotrs of the people who would back them in 2017 rushed at the end of last year so they could see a sales dip. according to analysts, we could auto sales 5% increase. as opposed to the 16% gain we saw in 2016. rishaad: amazing. >> a lot of cars. it took me about an hour and a half to get to work to drive across aging. beijing. with no traffic it takes 22 minutes. rishaad: shares are unchanged at
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the minute. new zealand at selling a finance division, for 60 million u.s. dollars. let's get to sydney. themselves.esting particularly the ones in asia. >> potentially the new zealand market is that much smaller. of $460 million deal. gain of $73net million, that improves their capital ratio and basis points. set-asides -- satisfies quite a few needs. mentioned, they have been dialing back overseas interests, focusing on business. we saw another example just last
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pulled a stake in a shanghai commercial bank. this is a process of unwinding the treasury with the former ceo. opposite.s, quite the has made many deals in the last year. flat in australia, but a zealand. deal in new shares up 1.3% right now. rishaad: thank you for that in sydney. back to where it all began. president obama preparing his speech in chicago. bringing you that speech live, and asking how his legacy will against that of donald trump.
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and also looking to hong kong and shanghai, the asian stock markets rallying. a surgeon mining companies at the moment. we will have numbers after this. ♪
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rishaad: this is "bloomberg markets: asia." a day when we are seeing a bit of decoupling taking place. s&p 500 finished exactly where it started, no change there, 22.68. gains elsewhere across the asia-pacific. the asian market had an upside. the rate was fixed by the people's bank of china. it virtually no change, $.92. in theexactly as it was session this time yesterday, as
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well. we are also looking at mining stocks, and surging. we are taking a look at what is going on out there. what we have a width of the open right upon us? mine helping the rallyrs. the best since 2013. also we see shanghai come online down about 0.2%. hong kong opening up 0.33% higher. tuesday the house saying rose to gseng-month high -- han rising to a two-month high. have the likes of women's apparel maker leading decliners. and as we have been mentioning,
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a boost on one of the top gainers. taking a look at what else is moving in the mining space, they miners in the region. at of trump's media briefing tonight which is closely watched, we did have angela mackenzie and -- meet with the president in new york on tuesday. toshiba up about 4.9%. that is the second day of gains. and sony on the rise, adding to tuesday's 2.3% gain. morgan stanley analyst expects the company will beat the estimates thanks to the yen and the promise of its gaining. rishaad: thank you very much indeed for that.
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let's check first word news. let's go to sydney for that and join haidi lun. volkswagen says it is closing in on a deal with the u.s. to resolve civil and criminal allegations surrounding the emissions scandal. the $4.3 billion agreement has yet to be finalized. an expensive provision. it also includes pleading guilty to some criminal charges. compensation and were currently cap debt $19 billion. three traders over that -- accused ofing using online chat room they called the cartel to coordinate confidential customer information. the three are outside the u.s. and would have to be extradited and volunteer. questions over china's
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interference with city affairs. recent high-profile disappearance, such as the disappearance of a group of booksellers, that eventually turned up on the mainland. officetorted oaks of that disqualified some from the legislative council. >> the unwarranted disappearance of booksellers and the unfortunate preemptive interpretation of the basic law by the national people's congress with respect to official oath taking has contributed to a sense among many in hong kong that beijing may be losing sight of the importance of respecting hong kong's autonomy. haidi: president obama has criticized israel's settlement policies, saying it would lead to a worsening situation on the ground. question the he benefits of the u.s. backing benjamin netanyahu.
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is an outspoken settlement supporter. president obama: if the notion is that unfettered support for israel, or more specifically, support for the netanyahu's government policies, no matter no matter how inimical they may be to the prospects for peace, if that is what qualifies as a good friend, then i think that we will see a worsening situation. haidi: global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am haidi lun, this is bloomberg. let's go to u.s. president-elect donald trump. he wants a swift repeal of obamacare. while some senate republicans want any move delayed to march.
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tell us what is going on. ramy: it is interesting. donald trump has not yet been sworn into office. speed are releasing a two movement from both the executive and legislative branches. trump, hedent-elect thinks the aca should be repealed as early as next week. in one quote he said the replacement will be very quickly or simultaneously, very shortly thereafter. releasing a statement as you can see, in trump-speak. and moderate republicans want to delay the bill until march the third, specifically. those five include the people you see on your screen. bob corker, susan collins, bill cassidy of louisiana, and lisa of alaska. these five senators are all moderate.
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they want to buy time in order to give congress and the white house more time to figure out what they want to do in terms of repealing and replacing the affordable care act. with something that actually works. bob corker released a statement saying, as president-elect trump has stated, repeal and replace should take place simultaneously. pushed upendment is monday night, it will give the incoming administration more time to outline its priorities. but there definitely is no consensus right now in terms of republicans in congress. if you ask the 52 republican senators and the 241 house of representatives numbers, a lot of them would not be able to come up with the same idea of what an affordable care act replacement should be. all of the senators on what is happening in the senators first. right now they have a majority.
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if they lose more than one seat, one vote from the republican repealhis fast track to obama care is already out the window until inauguration. president obama will be busy today giving his farewell address. do you know what he is going to be saying? news spokebloomberg to an official in the white house that wishes to remain anonymous. he gave major themes. stress one thing, which is inclusiveness. especially after coming off a really heated campaign trail over the past few months, with democrat hillary clinton losing. he will also ask the american electorate to embrace tolerance. donald trump campaigned on platforms that did not push that. talking about building a wall with mexico. said he will recognize
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conflicting voter emotions coming out of the race over the past few months, as well. those are the three main points there. they may come out when mr. obama speaks to the nation in just about an hour's time or so. he will also be trying to defend his legacy. those include the affordable care act, financial regulation in terms of dodd-frank in 2010 and things like renewable energy and solar and wind energy. it'll be a reckoning in terms of the democrats future. now they're out in the wilderness. they will have to come together. president obama said he would try to work with them to figure out where to go. the midterm is in 2018. thank you very much, ramy inocencio. we have images coming through from chicago, where we will be visiting a bit later on.
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have are the images we come up people gathering to hear what the acting president has to say. as ramy inocencio said, talking about inclusiveness and conflicting feelings. wanting people to stand together and have a rallying cry to get behind the upcoming president. that is what we have come defending the legacy he has. and indeed come painting an optimistic vision for the country that some have argued has really seen more divided than it does at the moment. just as he is about to leave office. january 20 is when we had donald trump inaugurated as president of the united states. that is what we have at the moment. in chicago we will be seeing that in a while. and let's take a look at this. globally, commodities. specifically those in china.
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speculation the hind those moves. david is taking a look at those in singapore. let's take a look at what we are seeing today. what is going on? well we do wait for president obama to give that address, if you're interested in a party, there is one going on simultaneously, two. those are where the commodity exchanges are for the mainland. let's see how the contracts are trading. not so much of the levels of yesterday. but certainly these gains over the past six months, made many sat -- sit at attention and take notice. we have iron ore. take a look at iron ore. we are pushing toward 600 renminbi for metric ton. that takes gains to 10% or 11%.
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the peak was at 45 last year. and let's give you a sense of the magnitude of the price acting up. 9%, roughly speaking, since friday. or 5%, my mistake. $19,000. about 17,000 this time last week. rishaad: what here is under speculation? how much of it is down to speculation? david: it is all speculation. it really depends on whether it is blind to speculation. or if it comes in to support what we are seeing. china is a whole other level. the move in prices because of the dynamics of the market there, you have to be a bit more
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cautious. theset comes to steel, reinforced bars, you look at some of the news that has come out over the past week or so. steel projects, overcapacity cuts. at the example that we saw in coal last year, when they said you cannot run your mind -- mine, it is a fundamental shift in outlook for supply and demand. after november, 80%. it will be interesting to see, this is thanks to our colleagues here, i have to emphasize the volumes are still nowhere near levels we saw back in april last year in november of last year.
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once we get a pickup of their and open interest remains high, we can gauge what the holding period is for these contracts. april last year it was less than four hours. you would flip it before you went to lunch. it is a developing story here in china. it suggests that yes, the party might be getting started. rishaad: david, thank you very much. we have to go to break. talkingrtfolio manager about investments. we talk about some of those targets. this is bloomberg. ♪
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rishaad: our next guest says interest rates in asia should
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stay low the next couple years. i guess a lot of people got ahead of themselves with interest rate hikes. guess cooler heads prevail, i hope you're one of the cooler heads. thiseffectively tells us, economic euphoria might be misplaced. correct -- >> correct. things are running fairly strong in asia. but there will be people who are skeptical in terms of rate rises. with of the fed is saying there be three rate rises, it is better to come in slightly high. rishaad: be is that overpromisig and under delivering? you do not want to say there are only one or two in the
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market comes with three. that is a bad surprise. the price could come at a higher level. if they do not reach that level it is not the end of the world. in asia you expect the inflation to be fairly low. in places like china it is not needed. will beult, we think it fairly low for the next couple years. ppi numberhat yesterday muddied the waters a bit. what has been happening with monetary policy and fiscal policy, some have argued on this program that the market was priced to perfection. dynamic.s changed the six months ago, yield was expensive, risk was cheap. but it has leveled off a bit.
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>> u.s. equity markets are currently priced to perfection. .5 timesnow 17, 17 earnings, and when we look at places like japan and europe, only about 15 times earnings. emerging markets are much lower. we are talking about 12 times. ridiculous, 1.4. >> compared to the u.s.. factor,e is this trump and people have been pounding into the u.s. equities. as people start to realize things are not as choppy as they once were in emerging markets, this is where we think people equities. to get em em markets outperformed
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developed markets. tore is a lot of catch up go. this is a very good market environment. rishaad: in theory. the point being, they are notoriously difficult to predict. the risk is baked into them. if you do have to make a play on them, where do you go? what about india and indonesia? >> we saw that pie graph of return equities, the highest here in asia. be the highest in 2017. a couple marks we look at our china and korea. see a lot of we interest in both markets. as you mentioned with india and indonesia, a good opportunity. china and korea, there are a
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lot of opportunities within those sectors in those countries. i want to go to china before we start talking ppi numbers. it changes the rules and changes the game policy. this level of inflation in the pipeline, what other damage to the economy itself -- that is been a bit of a dilemma. >> ppi was negative for five years. rishaad: and he did not lead to inflation overall. >> exactly. it was quite negative for some time and that inventory got defeated. last year, people needed to see inventory rev up. as a result, it has gone up. whether or not that transcribes into cpi, not necessarily. it can help earnings for a lot of consumer companies.
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it has now gone up a bit, over 5%. what will happen is that these companies may be able to pass on potential higher costs, on to their clients and raise rices further, which helps markets. at the end of the day, some of these consumer staple companies in china could benefit. rishaad: but then you get a ramp-up in interest rates and titans policies. that makes a country highly leveraged into difficulties. ask potentially. it could be 6, 12, 18 months before that happens. at the moment, not too concerned. but you have to focus on cash flows. the ppi does stand to benefit consumer companies. rishaad: let's tell you about what we have on the way. the first chinese head of state
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at the economic forum in davos. ♪
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rishaad: president xi jinping will attend the world economic forum in davos next week, sizing a hackable business allegation. chinese -- the first chinese head of state to address this forum. most high profile at davos so far. leading a large delegation there, giving the address january 17th. investment andht infrastructure. cementing and carving out a deeper role for china on the world stage and politics. it does come during a time when there will be key meetings later
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this year. niches global credentials there. the theme this year is responsible leadership. to ag we're on the road geopolitical structure. show xi jinping in a responsive and responsible leadership role. davos, january, 20 is the day donald trump is inaugurated. another huge world power lingering in the corner of the room. rishaad: this is key here. who is going to go with him to death posts? -- who is going to go with him to davos?
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alibaba and others. businesses all over the world. and they are meeting business and global leaders. regulatorstock market of china and the chiefs -- chief of assets. they are putting out their opinions at davos. rishaad: thank you very much for that, indeed. let's get you to these live pictures coming here at the moment. city currently in new york . in chicago, 7:56 in the evening. president obama about to give his farewell address. it is not -- it is a call to action for the next generation
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of leaders. his daughter stepping down there. to draw a contrast with his successor. they will talk about what he achieved in the white house in the last eight years. ♪
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♪ is almost 10:00 a.m. in singapore, 1:00 p.m. in sydney, and 8:00 p.m. in chicago. i am rishaad salamat coming to you from bloomberg's asian headquarters in hong kong. this is "bloomberg markets: asia." ♪ main headlines this hour, toshiba among the winners on news it has secured financing. minors are leading the wider benchmark hirer. of guiltn admission
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and a $4 billion fine. that is the scene in chicago. barack obama obama about to get his farewell address, expected to look to the future, but admit that his vision for america will leave the white house with him. what is going on at the moment in chicago. market action, so let's have a look at what is going on, generally up arrow stories. so, anddefinitely elsewhere, asia getting a lift, given what is happening with material space up 2%, some event risks, trump ,iving his first press briefing and we have to see what else happens in asia. aussie shares taking pride of place in the region given that jump in miners.
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materials also leading the charge on the shanghai composite, up .1%. housing clocking a fifth day of gains. retailers herend a property developer on the advance. the hang seng property index is outperforming the benchmark, up 8% year to date. then that story around commodities complex, take a look at how that space is doing. copper saw the advance overnight , now subsiding somewhat, copper trading in london, down .25%, but japan's top smelters says it may break $6,000 a ton after posting its best quarter since 2010. golden somewhat steady, oil
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holding onto losses on expectations that u.s. output will rise. rishaad: sophie, thank you for that. sophie kamaruddin there. let's go to chicago, mccormick theater, barack obama has , where heo chicago accepted victory in grant park in 2008. amazing scenes that evening, i can testify to that personally. he is in his adopted hometown there to defend what some say is his imperiled legacy and his biz vision for the country. let's hear what the president has to say in his farewell address to the nation and indeed the world. [applause]
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pres. obama: thank you. thank you. [applause] thank you so much, thank you. thank you. thank you. [applause] pres. obama: thank you. thank you. [applause] pres. obama: thank you. thank you. we are on live tv here. i have got to -- [applause] pres. obama: i --
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[applause] pres. obama: you can tell, you thatell, you, you can tell -- [applause] you can tell that i am a lame-duck because nobody is following instructions. [laughter] pres. obama: everybody have a seat. [applause] americansa: my fellow -- [applause] michelle and i have wellso touched by all the wishes we have received over the past few weeks. tonight,, tonight, it is my turn to say thanks. [applause] pres. obama: whether we have eye or rarely agreed
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at all, my conversations with you, the american people, in living rooms, in schools, farms, , andctory floors, diners on distant military outposts, those conversations are what have kept me honest and kept me inspired and kept me going. and every day i have learned from you. you made me a better president, man.ou pai made me a better so i first came to chicago when i was in my early 20's, and i was still trying to figure out who i was, still searching for a purpose in my life, and it was the neighborhood not far from here where i began working with church groups in the shadows of closed steel mills.
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it was on the streets where i witnessed the power of faith, quiet dignity of working people in the face of struggle, and loss. >> four more years. four more years. pres. obama: i can't do that. [applause] pres. obama: now this is where i learned that change only happens when ordinary people get involved and get engaged, and they come together to demand it. years as your president, i still believe that. , itit is not just my belief is the beating heart of our american idea, our bold experiment in self-government. it is the conviction that we are
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all created equal, endowed by our creator with certain unalienable rights, among them life, liberty, and the pursuit of happiness. it is the insistence that these , have, while self evident never been self-executing. , through thepeople instrument of our democracy can form a more perfect union. what a radical idea. that our founders , the freedom to chase our individual dreams through our sweat and toil and imagination, and the imperative to strive together as well to achieve a common good, a greater good.
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years, our nation's call to citizenship has given work and purpose to each new generation. it is what led the patriots to choose republic over tyranny, pioneers to trek west, slaves to brave that makeshift where road , what pulled immigrants and refugees across oceans and the rio grande. it is what pushed women to reach for the ballots. it is what powered workers to organize. it is why gis gave their lives on omaha beach and you would jim afghanistan, and why men and women from selma to stonewall were prepared to give irs as well.
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[applause] so, so that is what we mean when we say america is exceptional. -- not that our nation has been flawless from the start, but we have shown the capacity to change and make life better for those who follow. progress has been uneven. the work of democracy has always been hard. it has always been contentious. sometimes it has been bloody. , itevery two steps forward often feels that we take one step back. but the long sweep of america has been defined by forward motion, a constant widening of our founding creed to embrace all, and not just some. [applause]
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pres. obama: if i told you eight years ago that america would reverse the great recession, reboot our auto industry, and unleashed the longest stretch of job creation in our history -- [applause] if i told you that we would open up a new chapter with the cuban people, shut down iran's nuclear weapons program without firing a shot, take out the mastermind of 9/11 -- [applause] pres. obama: if i had told you secure health insurance for another 20 million
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american citizens -- [applause] lles. obama: if i had told y'a that, you might have set our sights were set a little bit too high. but that is what we did. [applause] pres. obama: that is what you did. you were the change. the answer to people's hopes, and because of you, by almost every measure, america is a better, stronger place than it was when we started. [applause] pres. obama: in 10 days, the world will witness a hallmark of our democracy.
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no, no, no -- the peaceful transfer of power from one freely elected president to the next. [applause] i committed to president-elect trump that my administration would ensure the smooth as possible transition, just as president bush did for me. [applause] because it is up to all of us to make sure our government can help us to meet the many challenges we still face. we have what we need to do so. we have everything we need to meet those challenges. after all, we remain the wealthiest, most powerful, and most respected nation on earth. our youth, hard drive, our diversity, our boundless
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capacity for risk and reinvention means that the ours,e should be but that potential only be realized if our democracy works, only if our politics that reflects the decency of our people. [applause] pres. obama: only if all of us, regardless of party affiliation or interest, help to restore the sense of common purpose that we so badly need right now, and that is what i want to focus on tonight, the state of our democracy. understand that democracy does not require uniformity. our founders argued, they
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quarreled, eventually they compromised. they expected us to do the same. but they knew that democracy basic sense of solidarity. ouridea that for all outward differences, we are all in this together, that we rise or fall as one. [applause] there have been moments throughout our history solidarity.ns that in the beginning of the century, that has been one of those times, a shrinking world, growing inequality, demographic change and the specter of terrorism. these forces have not just
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tested our security and prosperity, but are testing our democracy as well. and how we meet these challenges to our democracy will determine our ability to educate our kids and create good jobs and protect our homeland. in other words, it will determine our future. to begin with, our democracy won't work without a sense that everybody has economic good newsy, and the is that today the economy is incomes,gain, wages, m come home plays, and retirement accounts are rising again. poverty is falling again. [applause] pres. obama: the wealthy are ,aying the fare share of taxes even as the stock market shatters records. the unemployed rate is near a 10 year low.
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the uninsured rate has never, ever been lower. [applause] health care costs are rising at the slowest rate and0 years, and i have said i mean it, if anyone can put together a plan that is demonstrably better than the improvements we have made that covers people at less cost, i will publicly supported. -- support it. [applause] pres. obama: because that after all is why we serve. not to score points or take credit, but to make people's lives better. for all the real progress that we have made, we know it is
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not enough. our economy does not work as well or grow as fast when a few prosper at the expense of a growing middle class, and opportunities for folks who want to get into the middle class. argument,e economic but start inequality is also corrosive to our credit ideas. while the top 1% has amassed a bigger share of wealth and income, too many of our families in inner cities and in rural counties have been left behind, the laid-off factory worker, the wages for a health care worker barely getting by and struggling to pay the bills, convinced of that the game is fixed against them, that the government only serves the interests of the powerful. that is a representative
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more polarization. there are no quick term fixes for this trend. i'll trade should be fair, but the next wave of economic dislocations won't come from overseas, it won't come from the relentless pace of automation that makes good middle-class jobs obsolete, so we will have to forge a new social compact to karen t all our kids the education they need guarantee all our kids the education they need, to empower our unions to organize for better wages, to update the social safety net to reflect the way we live now, and make more reforms to tax codes so that corporations and individuals who reap the most in this economy don't avoid their obligations to the country that has made their very success possible. [applause] we can argue about how to best achieve these goals,
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but we can't he complacent about the goals themselves. for if we do not create opportunity for all people, the disaffection and division that has stalled our progress will only sharpen in the years to come. there is a second threat to our democracy, and this one is as old as our nation itself. after my election, there was talk of a post-racial america, and such a vision, however well intended, was never realistic. oftenemains a potent and divisive force in our society. now i have lived long enough to know that race relations are better than they were 10 or 20 or 30 years ago, no matter what
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some folks say. [applause] pres. obama: you can see it not just in statistics, you see it in the attitudes of young americans across the political spectrum. but we are not where we need to be, and all of us have more work to do. every economic issue is framed as a struggle between a hard-working white middle class and an undeserving minority, then workers of all shades are going to be left fighting for scraps, while the wealthy with with the draw their private enclaves. [applause] pres. obama: if we are unwilling to invest in the children of immigrants just because they
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don't look like us, we will diminish the prospects of our own children, because those brown kids will represent a larger and larger share of america's workforce. [applause] pres. obama: and we have shown that our economy doesn't have to be a zero-sum game. last year, incomes rose for all races, all age groups, for men and for women. so if we are going to be serious weut race going forward, need to uphold laws against discrimination in hiring, housing, education, and in the criminal justice system. that is what our constitution and highest ideals require. [applause] aloneobama: but laws
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won't be enough. hearts must change. they won't change overnight, social attitudes often times take generations to change, but if our democracy is to work the way it should in this increasingly diverse nation, then each one of us needs to try to heed the advice of a great character in american fiction, , youus finch, who said never really understand a person until you consider things from his point of view, until you climb into his skin and walk around in it, for blacks and other minority groups, that means tying our own very real struggles for justice to the challenges that a lot of people in this country face. , thenly the refugee emigrant, the poor, or
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transgender american, but also the middle-aged white guy who from the outside may seem like he has got advantages, but has seen his world of ended by economic him cultural, and technological change. we have to pay attention and listen. [applause] pres. obama: for white americans, it means acknowledging that the effects of slavery and jim crow did not just banish in the 1960's -- and vannish in the 1960's. when they wage peaceful protest, they are not demanding special treatment, but the equal treatment that our founders promised. [applause]
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pres. obama: for nativeborn , for nativeborn americans, it means reminding ourselves that the stereotypes about immigrants today were said almost word for word about the pole, and italians, and s, who it was said would rather destroy the fundamental character of america, and as it turned out, america was not weakened by the presence of these newcomers. these newcomers embraced this nation's creed, and this nation was strengthened, so -- [applause] regardless of the station that we occupy, we all have to try harder.
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we all have to start with the premise that each of our fellow citizens loves this country just as much as we do, that they value hard-working family just , that their children are just as curious and hopeful and worthy of love as our own. [applause] pres. obama: and that is not easy to do. us, it hasy of become safer to retreat into our own bubble, whether in our neighborhoods or on college worship or places of especially our social media feed , surrounded by people who look sameus and share the political outlook and never , andenge our assumptions
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the rise of naked partisanship, increasing economic and regional stratification, the splintering of our meeting into a channel for every -- all this makes this great anting feel natural, even inevitable, and increasingly, we become so secure in our bubble that we start excepting only information, whether it is true opinion,hat fits our instead of basing our opinions on the evidence that is out there. [applause] pres. obama: and this trend represents a third threat to our democracy. look, politics is a battle of ideas. it is how our democracy was
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designed. in the course of healthy debate, we prioritize goals and the means of reaching them. but without some in common baseline, without a willingness to admit new information, and concede that your opponent might be making a fair point, and that science and reason matter, then we are going to keep talking past each other and will make common ground and compromise impossible. [applause] part obama: and isn't that of what so often makes politics dispiriting? can i elected officials rage about deficits when we propose to spend money on preschool for kids, but not cutting taxes for corporations? how do we excuse lapses in her
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own party when the other party does the same thing? , thisnot just dishonest selective sorting of the facts, it is self-defeating, because as my mom used to tell me, reality has a way of catching up with you. take the challenge of climate change. have cutight years, we our dependence on foreign oil by half, doubled our renewable energy, led the world to an agreement that has the promise to save this planet. [applause] pres. obama: but without bolder action, our children will not have time to debate the existence of climate change. they will be busy dealing with its effects, more environmental
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disasters, more economic disruption, waves of climate refugees seeking sanctuary. we can and should argue about the best approach to solve the problem, but to simply deny the problem, not only betrays future generations, it betrays the essential spirit of this country, the essential spirit of innovation and practical problem-solving that guided our founders. [applause] pres. obama: it is that spirit, it is that spirit born of the enlightenment that made us an economic powerhouse. the spirit that took flight at kitty hawk and cape canaveral, the spirit that cures disease and put a computer in every
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pocket. it is that spirit, a faith in and thend enterprise primacy of right over might that allowed us to resist the allure of fascism and tyranny during the great depression, that allowed us to build a post-world war ii order with other an order based not just on military power or national affiliation, but built on principles, the rule of law, human rights, freedom of religion, speech, assembly, and an independent press. [applause] pres. obama: that order is now , first bylenged violent fanatics who claim to islam,or his long --
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autocrats in foreign capitals who see civil society itself as a threat to their power. the peril each poses to our democracy is more far-reaching than a car bomb or a missile. they represent the fear of change, the fear of people who look or speak or pray differently, a contempt for the rule of law that holds leaders accountable, and intolerance of dissent and free thought, a belief that the sword or the gun with a bomb or the propaganda machine is the ultimate arbiter of what is true and what is right. because of the extraordinary courage of our men and women in
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uniform, because of our intelligence, law enforcement, and diplomats who support our troops -- [applause] no foreign: terrorist organization has successfully planned and on herd an attack homeland these past eight years. [applause] pres. obama: and although boston and orlando and san bernardino and fort hood remind us of how dangerous radicalization can be, our law enforcement agencies are more effective and vigilant than ever. we have taken out tens of thousands of terrorists, including bin laden. [applause] pres. obama: the global coalition we are leading against away halfaken their territory.
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and to all who serve or have served, it has been the honor of my lifetime to be your commander deepief, and we all ou a debt of -- owe you a debt of gratitude. [applause] , protecting our way of life, that is not just the job of our military. democracy can buckle when it gets into fear. citizens musthas remain vigilant against external aggression, we must guard
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against a weakening of the values that make us who we are. [applause] pres. obama: and that is why for the past eight years i have worked to put the fight against terrorism on a firmer legal footing. that is why we have worked to end torture, close gitmo, reform surveillance to protect privacy is whyil liberties, that i reject discrimination against muslim americans who are just as patriotic as we are. [applause] [applause] why -- that that is is why we cannot withdraw, that is why we cannot withdraw from the global fight to expand
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democracy and human rights, women's rights, lgbt rights. no matter how imperfect our expediento matter how ignoring such values may seem, that is part of defending america. for the fight against extremism and intolerance and sectarianism pieceauvinism are of a with fighting authoritarianism and nationalist aggression. if the scope of freedom and goesct for the rule of law around the world, the likelihood of war increases, and our own freedoms will eventually be threatened. so let's be vigilant, but not
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afraid. [applause] pres. obama: isil will try to theyinnocent people, but cannot defeat america unless we betray our constitution and our principles in the fight. [applause] pres. obama: rivals like russia or china can not match our influence around the world unless we give up what we stand for and turn ourselves into just another big country that bullies smaller neighbors. which brings me to my final , our, our democracy democracy is threatened when ever we take it for granted. [applause] us,. obama: all of regardless of party, should be working ourselves into the
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of rebuilding our democratic institutions. when voting rates in america are some of the lowest among advanced democracies, we should be making it easier, not harder, to vote. [applause] when, when trust in our institutions is low, we should reduce the corrosive influence of money in our politics and insist on the principles of transparency and ethics and public service -- in public service. when congress is dysfunctional, we should encourage politicians that cater to common sense and not extremes. [applause] , noneobama: but remember
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of this happens on its own. all of this depends on our participation, on each of us accepting the responsibility of citizenship, regardless of which way the pendulum of power happens to be swinging. remarkableution is a , beautiful gift, but it is really just a piece of parchment. it has no power on its own. power. people, give it we, the people, give it meaning. without participation, and with the choices that we make, and the alliances that we forge,
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whether or not we stand up for our freedoms, whether or not we respect and enforce the rule of law, that is up to us. thing, butno fragile the gains of our long journey to freedom are not assured. address,n farewell george washington wrote that, self-government is the underpinning of our safety, spirited, and the party. but, from different causes and from different quarters, much pains will be taken to weaken in , andminds the conviction so we have to preserve this truth with jealous anxieties, that we should reject the first dawning of every attempt to alienate any portion of our country from the rest, or two in feeble the sacred tides -- ties
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that make us one. [applause] america, we weaken those ties when we allow our political dialogue to become so corrosive that people of good character art even willing to enter into public service, so course with rancor that americans with whom we disagree are seen not just as misguided, but as malevolent. when we dohose ties find some of us has more american than others, when we write off the whole system as inevitably corrupt, and when we sit back and blame the leaders we elect without examining our own role in electing them. [applause]
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pres. obama: it falls to each of anxious, jealous guardians of our democracy. to embrace the joy of task we have been given to continually tried to improve this great nation of ours, because for all our outward differences, we, in fact, all share the same ties, the most important office in a democracy, citizen. citizen. [applause] so you see, that is what our democracy demands. it needs you.
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not just when there is an election, not just when your own narrow interest is at stake, but over the full span of a lifetime. if you are tired of arguing with strangers on the internet -- [laughter] try talking with one of them in real life. [applause] pres. obama: if something needs fixing, then lace up your shoes and do some organizing. [applause] pres. obama: if you are disappointed by your elected officials, grab a clipboard, get some signatures, and run for office yourself. [applause] pres. obama: show up, dieve
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in, stay at it. sometimes you will win. sometimes you will lose. presuming a reservoir of goodness and other people, that can be a risk, and there will be times when the process disappoints you, but for those of us fortunate enough to have been part of this work, and to see it up close, let me tell you, it can energize and inspire , and more often than not, your faith in america and in americans will be confirmed. mine sure has been. [applause] pres. obama: over the course of these eight years, i have seen the hopeful faces of young graduates and our newest military officers, i have
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mourned with grieving families searching for answers, and found grace in the charleston church. i have seen our scientists help a paralyzed man regain his sense of touch. whove seen wounded warriors at points were given up for dead walk again. i have seen our doctors and volunteers rebuild after earth earthquakes and stop pandemics in their tracks. i have seen young children remind us through their actions and generosity of our obligations to care for refugees or work for peace, and above all, to look out for each other. [applause] i placedma: that faith
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all those years ago not far from here in the power of ordinary americans to bring about change, that faith has been rewarded in ways i could not have possibly imagined, and i hope your faith has too. some of you here tonight or watching at home, you were there 2012 -- n 2004, 2008, [applause] maybe you still can't believe we pull this whole thing off. [laughter] me tell you,let you are not the only one. [laughter] pres. obama: michelle? [applause] [applause]
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robinson,a: michelle girl of the south side -- [applause] pres. obama: for the past 25 years, you have not only been my wife and mother of my children, you have been my best friend. [applause] you took on a role that you did not ask for, and you made it your own with grace, grit, and style. [applause]
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[applause] pres. obama: you made the white house a place that belongs to everybody, and a new generation sets its sights higher because it has you as a role model. [applause] pres. obama: so you have made me proud, and you have made the country proud. [applause] underobama: melia, sasha, the strangest of circumstances,
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you have become a two amazing young women. you are smart and you are beautiful, but more importantly, you are kind, thoughtful, and full of passion. [applause] pres. obama: you wore the burden of years in the spotlight so easily. of all that i have done in my life, i am most proud to be your dad. [applause] two joe biden -- to joe biden -- [applause] pres. obama: the scrappy kid
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from scranton, who became delaware's favorite son, you were the first decision i made as a nominee, and it was the best. [applause] pres. obama: not just because you have been a great vice president, but because in the bargain, i gained a brother, and we love you and jill like family, and your friendship has been one of the great joys of our lives. [applause] pres. obama: to my remarkable staff, for eight years, and for some of you a whole lot more, i have drawn from your energy, and every day i tried to reflect back on what you displayed, heart, and character, and
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idealism. i have watched you grow up, get married, have kids, starting credible new journeys of your when times got tough and frustrating, you never let washington get the better of you. you guarded against the cynicism. the only thing that makes me prouder than all the good that we have done is the thought of all the amazing things that you are going to achieve from here. [applause] pres. obama: and to all of you out there, every organizer who moved through an unfamiliar town , every kind family who welcomed them in, every volunteer who knocked on doors, every young person who cast a ballot for the first time, every american who
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lived and breathed the hard work of change, you are the best supporters and organizers anybody could ever hope for, and i will be forever grateful, because you did change the world , you did. [applause] and that is why i leave this stage tonight even more optimistic about this country than when we started, because i know our work has not only helped so many americans, it has inspired so many americans, especially so many young people out there to believe you can make a difference, to hitch your wagon to something bigger than yourself. let me tell you, this generation patriotic altruistic, , i have seen you in every corner of the country, you
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believe in a fair and just and inclusive america. you know that constant change has been america's hallmark, that it is not something to fear, but something to embrace. you are willing to carry the hard work of democracy forward. you will still outnumber all of us, and i believe that as a result, the future is in good hands. [laughter] [applause] pres. obama: my fellow americans , it has been the honor of my life to serve you. i won't stop. in fact, i will be right there with you as a citizen for all my remaining days. but for now, whether you are , i door young at heart have one final ask of you as
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your president, the same thing i asked when you took a chance on me eight years ago, i am asking you to believe, not in my ability to bring about change, but in yours. i am asking you to hold fast to that faith written into our , that spiritment sung by immigrants and homesteaders and those who marched for justice, that creed reaffirmed by those who planted flags from foreign battlefields to the surface of the moon, every american who story is not yet written. yes, we can. yes, we did. yes, we can. thank you. god bless you. may god continue to bless the united states of america. thank you.
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[applause] ♪ [applause] ♪ [applause] ♪
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rishaad: right, just coming up to 9:00 there in chicago. the outgoing 44th president of the united states delivering that emotional speech in chicago, across america and the wider world, talking about his legacy, foreign relations, not so much about that, but sending autocratsgs of in foreign capitals. talking about racism, saying jim crow has not vanished, but saying it is better than 20 years ago, and the whole idea of post-racial america was never a realistic one as well, what
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america meant, a common refrain by him, and talked about the partisan nature of what has been going on in congress, congressional dysfunction, and made a comment about and invoked george washington wind he said, political dialogue has become so corrosive that people are turned off. you were here with me the whole time. the overall view of this? >> well, he is speaking to his democratic followers, and he developed a movement that he wants to keep alive. it is under great stress. obviously, the loss of hillary --
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♪ announcer: from our studios in new york city, this is "charlie rose." charlie: 11 days. today is january ninth. january 20th, a new president takes over. when i say that, 11 days left in the obama administration, what do you think? denis: i think there's still a lot of work we have to get done in these 11 days. i think that i'm glad it's just about that and not many more. and i think that thank god we did as much as we did until now because i will tell you what --


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