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tv   The David Rubenstein Show Peer to Peer Conversations  Bloomberg  January 11, 2017 8:00pm-8:31pm EST

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rishaad: 9:00 a.m. in singapore. on a wednesday evening in new york, from bloomberg's asia headquarters in hong kong, this is "bloomberg markets: asia." ♪ -- aad: a men's and power payments and power. the samsung heir apologizes to prosecutors as he is mocks as a proper suspect. donald trump attacks the news
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media in his first conference as president-elect. trump's pic for secretary of state says china must be warned off. 30 minutes away from trading day in hong kong. have japan data, the yen strengthened. we have equity markets in new york, all giving us clear indication where we should be going. we are looking at singapore, taipei -- it is all going on. >> asian markets set for the highest close since october. sharese have japanese lingering, the greenback held onto wednesday's losses.
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7%,iler family mart down giving us a preview what to expect from retailing later results tonight. materials supporting games a second day higher. the yuan strengthens the most against the dollar against emerging currencies. we have shipping rising as much as 29% after trading in shares was suspended on wednesday. sticking with the korean space, a quick check on samsung's shares in the wake of what went on with german lee. halting alding a -- 4 day rally. more with the latest on samsung
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in just a little bit. when it comes to the commodities sorry, looking with currencies, we have a weakness continuing in the dollar. ase yuan climbing as much 1.1%. we are seeing the yen coinue its price against the dollar. lending international pending an announcement on capital reorganization. more on that later. rishaad: thank you very much. let's have a look with the first word news. heidi.oin sorry about that. >> i forgive you.
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know many for secretary of state rex tillerson has faced questions in his hearing. he said moscow was a danger to america, but refused to call vladimir putin a for criminal for his actions in syria -- war criminal for his actions in syria. he said that the world wants to see a strong united states. >> to achieve the stability that is foundational to security, american leadership must not only be renewed, it must be asserted. we has many advantages on which to build. our alliances are durable, and our allies are looking for a return on our leadership. >> talks like and has taken a step toward resolving the emissions scandal, pleading guilty, playing a $3.4 billion
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fine. vw and that it to using -- admitted using false statements to the u.s. and obstructing inquiries about suspicions about emissions levels coming from the diesel engine. >> to be clear, volkswagen new about these problems. when regulators expressed concern, volkswagen of the skated and -- obfuscated and denied. >> india's central bank has refused to release details on the ban on high denominations. move hoursroved the before it was approved by the prime minister november 8. the bank has declined any more details, citing national security reaso. global news 24 hours a day, powered by journalist from over 120 countries. this is bloomberg. ♪
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leeaad: the samsung heir by has been questioned persecutors before, but this time it is as a suspect in a bribery investigation. the latest step in a scandal that has rocked down the south korean president. down the south korean president. there were quite a lot of people outside of that courtroom. prosecutors,and but it is a surprise that he has been asked to come in as a suspect. there is afor lee, possibility of him being arrested. he is the vice-chairman of samsung electronics, but also the de facto head of samsung group. he apologized to korean citizens when he arrived at the special prosecutor's office this morning. into whethers part
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samsung and other conglomerates made payments in exchange for political favors. samsung is asking questions, like -- did the south korean pro minister put pressure to support the controversial merger of 2 samsung units, which made it easier for lee to king influenced over samsung -- to influence gain over samsung as i hope? rishaad: this seems to be about succession. what does this change? ee is we know is that l groomed for this position. he is stepping up to run the group.
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if he is arrested and taken out of the picture, then what happens? he could still take over the job regardless. they could put in a caretaker or and it could be outside of the family temporarily. of -- we knowense that samsung revolves around him. in all of this, special prosecutors are looking for links with president parker hank -- they're looking for links to the chairman of samsung and the president. this could be only one of the people caught up in it. rishaad: the other big story today was donald trump, and how he has been confronting two of his biggest political challenges. this is one week before he becomes president. he says he will not divest from his companies.
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he also dismissed this claims -- dismissed claims that russia has damaging information about him. mr. trump: that should never have been written and never have been released. rishaad: i guess the question begs itself, what is the biggest headline coming out of this? >> the big headline was that donald trump's admission, his confession that russia may have hacked the democratic national emails toonss to === --age her ead what was released, and i think it is a disgrace. i think we get hacked by other countries and other people.
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was a surprise to many. concession, there was nothing else except the same bluster we have heard from donald trump against pushing back journalists. tweets donalde in terms ofous for, what he calls fighting the fake news establishment. saying that is a sorry state. he is pushing back against the intelligence agencies, saying that they should never have "llowed this fake news to "leak into the public, saying that we are living in nazi germany.
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he is using the bully pulpit of the presidency in order to push back against his critics. something we have seenver the past several months in his campaign. something we will see more of. rishaad: this government criticism for these ethical issues, the conflicts of interests, they tried to distance themselves from the. some saying that it is utterly meaningless. >> in terms of that statement, the head of government ethics came out saying that quote, which is very different from the -- normal d donaldo ahead to what trump said he would or would not do. chief among them, he said he would step down as being head
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from all of his positions at trump organization. he said that his sons, donald junior and eric, would manage trump organization. the number two point is the most contentious. he said that he will not divest ownership in the company. his attorney said that selling the company would exacerbate conflicts of interests. trump said he would not be informed on any new deals the trump organization goes ahead with. those will alleviate some ctics, but others are saying that is not enough. rishaad: thank you for that. still ahead, a swiss banker becoming the first foreigner convicted in an upcoming scandal. plus, what are the key investment seems -- investment themes in the trump presidency?
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we get some tips from ig markets. ♪
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singapore, it looks like a glorious day currently. the index following the asia-pacific trend. the bills have been unleashed. -- bulls have been unleashed. the nikkei, the strength of the yen playing habit. grabbing the nikkei by the scruff of his neck, down 1%. ord 1% up. let's have a look at these markets in more detail. off with anart acronym. the us about it and
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affected is having. >> that is the question, is this year about growth, or the old strategy? growth what people have been blogging since the trump presidency. since mid-july, even after brexit the question is, are you paying growth at any price? in 2017, this is one of the best times to ask that. we see president-elects being put into position. we are seeing earnings season. -- at look at the morning the money flow, people are buying at any price. that is why there is a question of whether or not equity markets are being stretched. we are likely to see eps growth. it is whether or not economic
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growth tailing away comes through to fruition in 2017. it is whether or not we can justify those prices people have been jumping in at. rishaad: i will digress for second. fomo,ar of missing out, people piling into stocks. this is what you get healed, you? you?-- yield, don't evan: there is a suggestion that 2017 would be a volatile year.
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one jump into yield will be part that will be keenly watched. a move into the was bond market market has bond been the backdrop of the site. seen u.s. 10 year do you look at yield on inequity side, were in a traditional manner with bonds? going forward with what will likely be an interesting year geopolitically, i think bonds will win out. the volatility people have experienced has influenced that transaction. they are looking into the u.s. bond market more than anything else. i think the bond markets will shake out a lot of people. that is why money is moving from
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bonds into equities. that will moderate out as we see what trump has to offer, what happens in europe geopolitically, and whether or not emerging markets get pressured by what comes out of the u.s. in their fiscal policy and possible tax policy. rishaad: in less than 15 seconds, if you had to pick one asset class for security, what would it be into this year? -- or security, what would it be into this year? evan: i believe the china story is strong. ppi that with the fact that inflation and pmi numbers justify that. they are still quite low historically. i am positive on the idea that infrastructure spending and growth will be the theme. rishaad: evan, great talking to you as ever.
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a look at some of the latest business flash headlines. a consortium for global and just ask properties. -- logistics properties. the singapore-based company has a market value of over $8 million. for first round offers by early next month. downtive consumers pulled 2 of japan's top retailers. stagnant wages prompting many to rein in spending. another take on japan's retail later. asia's most valuable startup has picked goldman sachs to leave its idea. the singapore in gaming -- e
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gaming commerce considering listing in the u.s. it would be the largest tech ipo out of south asia, and a boon for others. we are following which industry group will likely experience a bubble in china. ♪
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rishaad: after a bevy of bubbles smart money is betting in excess credit, leading to more essay deflation and 2017. in 2017.sset deflation where will all of that liquidity go?
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let's start where that money comes from, then where does it go? that is key. >> you already alluded to the bubbles that have ruled china's markets over the past few years. there is this gauge that the bank for international settlements has that looks for credit growth in the country relative to the economy overtime, and relative to its long-term trend. graph from at the the bank for international settlements, it shows the problems began in 2009, when china unleashed this massive amount of credit to short of the economy in the gulf crisis. what we have seen is that the amount of credit economy has gathered steam, has scattered ball, and issive
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trapped in the economy because of capital flight controls. what are people saying about where the money goes next? that is crucial, isn't it? it is as much welcome all t -- w time as it is any in china. christopher: we have a number of economists looking at the situation in china. we know that china recognizes there is a leverage problem. we know they have been taking steps to to rein in credit. but do you still see bubble risks this year? and only one of them of the more than dozen surveyed say there is a minimum risk of the level. -- risk of oa bubble.
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despite the recent measures to rein in the real estate market, half of them see property becoming a bubble. others see the corporate bond market as potential for a bubble. there are those looking at stocks. seean stanley strategists the potential for a 30% surge plus in chinese stocks this year. ashaad: do policymakers take dim view of all this? how do the deal with it? christopher: they have made it clear they want to address leverage. you have to look at where the action is. the latest lending data shows growth still strong in china. we are waiting for the december numbers. they are anticipated to be strong again. rishaad: thanks very much indeed chris, joining us from tokyo,
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looking at the various bubbles that are forming in china. we look at the agriculture in ar, bracing for a hit trade spat. ♪
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rishaad: you are back with "bloomberg markets: asia." lots to digest. donald trump coming up fighting of his news conference, his first proper sense july. -- since july. a look at its impact on the trading day in the u.s. itas not given a chill wind with the asia-pacific -- tailwind with the asia-pacific. 1.4 trillion yen undervalued imports compared to the year
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before. that is widening 38% from a year ago. much impact. we have -- not much impact. we are driving the overall indices in the session. in hongk not trading kong. weaker againsten a basket of currency. let's find out more. >> yen strength dragging down. health care is the biggest drag with declines of 3%. japanese pharma stocks not feeling the love after donald trump's remarks about the drug pricing in the industry. as'


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