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tv   Bloomberg Markets Asia  Bloomberg  January 24, 2017 8:00pm-10:01pm EST

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>> this is bloomberg markets asia. ♪ >> president trump urges autoakers to boost production. ore jumping.iron close to quitting cold.
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and, political scandals hitting korea. just under 30 minutes to go before we get underway here in hong kong. them markets. no trading in taiwan, we normally would have at the start of the session because it is the lunar nor year -- new year. the nasdaq, hitting the record highs. regionrong start to the with stocks extending the global rally overnight. over 1% with copper, aluminum and iron ore jumping there. it is green across asia, looking at this thing equity markets here. the nikkei up 1% here with a
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weaker yen. for, stellar numbers december. this is the picture. i want to mention quickly today., falling .6% one of the worst performers so far. looking at what is going on with the cost, given that gdp figures , despite the economy growing at the slowest rate in over a year. up a quarter of a percent, giving the rising the hp, and the like. a look at the aussie dollar. we did get australia's fourth-quarter inflation coming in lower than forecasted. after the announcement, we did get a drop.
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unable to break the 76 u.s. u.s. level.6 buying ander says demand is keeping the nikkei -- the again support up. japan financee ministry saying the again will break through 100 to the dollar. rish: thank you so much. let's find out what else is going on out there with the first word news. secretary has said supported china's entry into the wto because they would play by the rules. that is incorrect.
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gary cohn heads to the white house with just over $18 million in bearable compensation and $8 million in salary. the u.s. consumer protection agency wants smartphone producers to step up safety. they say they will conduct a industryighting flawed standards. see -- cfbc says they are continuing their investigation. imports ined falling december thanks to a global pickup in japan. -- rts increased 5.4% exports increased 5.4%. the increase in exports helps japan byt to revive
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feeding consumer profit. australian dollar fell in the final quarter of 2016. annual inflation came in 1.5%. however, a governor has signaled that he may tolerate price prevent price cuts. global news, 24 hours a day, powered by more than 2400 journalists in more than 120 countries. this is bloomberg. let's have a look at one of these movers. bhp. the share price at an 18 month high. this is the second quarter. paul allen is looking at all of this. it looks like they are broadly in line. a couple of big disappointments. where we getting the optimism from?
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: the call for results was not entirely called for. see the weaker result on that front. a big drop in bhp. elsewhere, a pretty good picture. iron ore driving all the good feelings at the moment. on thebeat estimates year. of course, we all know that -- what has been happening to iron noore. the cold estimates pretty much in line. rishaad: let's have a look at the other big miners, gaining
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about 2.5%. they will be selling off coal. this is getting out of the industry here. what are the details overall? paul: the thurmond coal -- thermal coal industry. the company will buy almost all assets.into they will hold on to only two mines in australia. neither are thermal minds. the-- ill make yang gel money will come in cash payments. this is the first major transaction we have seen from the new ceo. there is speculation around the market at the moment. the dividend could be quiet
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healthy. it must be said, the deal still fromhe seal of approval shareholders. rishaad: thank you for that. donald trump is off. best the indy auto industry. this is after spending months in the campaign attacking automakers for sending jobs overseas. ramy: mr. trump has been hammering companies to get the businesses to stay in the united states. there is a bit of a u-turn here, pardon the pun. they are shaking hands, smiling, and it was a very simple happenstance today. basically what mr. trump is telling automakers is he will support them and give them
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increasing -- decreasing regulations. take a listen to what he has to say. president trump: we will make the process much more simple for the auto industry and anyone who wants to do business in the united states. mr. trump's support translated into higher investment confidence. 5% or so today. also, we did get some, i guess the word is excitement, or cheeriness. mark field of ford had this to say. to worke excited together with the president and his administration on tax policies, regulation, and trade
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to really create a renaissance in american manufacturing. gm saidry borrow of this is a good opportunity for the industry. mr. trump said he wants to roll back environmental organizations. an interesting thing on that. i want you to hop into the bloomberg. i want to show you this cool terminal function. what does it show? it shows basically the number of auto jobs that have happened over the last few administrations. blue. there is the past clinton administration, the bush administration, and all the way to the right, mr. obama. john's rose about 50% up to about930,000 -- jobs rose 50% up to about 930,000.
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it will be interesting to see if increase, given on the rest is doing. rishaad: under george h bush, we manufacturingtry brought, and under his son as well. under the two democratic ,dministrations, payrolls rose substantially great two major pipeline projects reversing, again. right.hat's two major projects we're talking about here. a correction. we happened talking about -- and said itcame out is member around the. more on that in terms of the
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keystone pipeline and the dakota access pipeline, mr. trump is reviving the possibility to go ahead with them. he is not actually green lighting those projects. we can see him signing one of them there. he says he wants to renegotiate the deal for something better .or the united states of course, mr. obama rejected keystone back in 2015 and the dakota pipeline back in september. of course, with all of those protests we saw. trump: we will renegotiate some of the terms. if they like, we will eat if we can get the pipeline built. 28,000 jobs. ramy: 28,000 jobs is what he is talking about there. the positivity on that, similar with the auto industry, a little related to the
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project. transcanada, up, the highest since january last year. the a firm related to dakota access pipeline up this november or so. mr. trump was also talking about not just the construction of the pipeline, but also the construction of the pipes for those pipeline and other projects. sticking to mr. trump's own theme, he says, build in america. build thewe will highest like we used to with steel, like the old days." rishaad: still ahead, consumer prices in australia pricing -- rising less than anticipated. will the slow growth spurt the central bank into action?
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next, the year of the rooster is that for a fiery time with federal reserve, possibly hiking rates, increasing protectionist policies. how will they fare? we will put that to andrew gibson. ♪
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rishaad: 15 minutes into the trading day. this is what we have at the moment. it looks like a nice starts to the day there in singapore. a look at the other markets in this part of the world. no trading in taiwan. after what we saw in new york, re.ns the the nikkei doing very well, leading the charge when it comes to the asia-pacific at the moment.
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overall, not so much from the yen, which usually where others go. stephen engle. america firstmp's policy mean for growth in this part of the world? stephen: obviously, the ramifications go wide and far. china,se, including taiwan, a number of these company -- countries coming out with gdp growth numbers today and this week. we want to get a little more .erspective from andrew gibson we heard from your calling this morning. he is saying that overwhelmingly what is on people's minds is
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trade, when it comes to trunk. he already scrapped tpp. what will be the lasting ramifications? trade: the question about frome of the most frequent our clients. ofhink there is a lot interest in liberalizing trade around the region. the could be more negotiations that take place. treaty with china could be taking place. stephen: could tpp and -- survive without the u.s.? could australia or china take the lead? andrew: it is much less important without the u.s. something could still happen, but the economic impact would be small. stephen: japan fell the first pick up in exports in 14 months,
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i believe it was. belowkorea, a little bit expectations. taiwan also out better than expected. how do you read the numbers? andrew: globally and regionally we are seeing a pickup, even before the election. the fed tightening less than expected last year. some of the fallout from decline prices trading off. we're seeing a pickup in activity. i think that is coming through. will that pick up in industrial activity be maintained? stephen: what about china? you see them defending the
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currency. you also see a pickup in inflation where you could see tightening. what is your outlook for china? there wasst year, huge concern over depreciation. increase.en a large , as you hinted, if we continue this level of stimulus, we could see pressures on the upside. we are already in that on the commodity sector. there is some risk of that in a broader sense in 2017. their tightening up on administrative controls and trying to signal that they don't want a lot of depreciation in 2017.
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stephen: off-camera, we kind of laughed about the procedures and projections for the you want -- yuan. you are calling it 7.3. i don't know if that is bullish or bearish. which is it? andrew cuomo last year, we thought they would and the year at seven. that was close to the mark. aboutf it is just thought as broad dollar strength. we think the fed will raise rates more than most people in the markets expect. stephen: 7.3? andrew: the broadcast for the end of this year. stephen: sending it back to you. up, theresaing .ay's plan
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politics as well as the economy. ♪
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rishaad: another british government may have to rethink it brexit draghi. courts after losing the appeal. kathleen is here with the ramifications. kathleen: this is a resounding decision from the uk's supreme court. vote.3 theresa may said -- must have a vote from parliament. they have spoken this is what she has to do. she did win on one issue. ireland cannot vote on article .0 now, the bill that has to be put
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together must go through five stages in both chambers of parliament. they will move quickly, but nonetheless, it will probably slow things down. the delay is hanging over the market. and, there is in march deadline. can she make it? we were listening to david davis, who made it very clear, there is no going back, only moving ahead, and it must be quick. we will move swiftly to do just that. casting: you were just pointing out to me that david davis is hartline. it is also interesting, another story just popped up on the terminal of what was brewing after the brexit vote. theresa may battling brewing from her own party. i demand that she published an
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official document detailing her negotiating goals. rishaad: very quickly, let's get to the chart. it tells us what has been going on with sterling and how brexit has been affecting. pound down, the pound up. nothing surprising. what we're looking at now is the question of the impact on the economy. i love this chart. bloomberg intelligence has an index that includes inflation, labor market indicators, the uncertainty gauge. you can see, while the pound has been declined, so have these with index. in other words, the uk's economy has held up so far. there are some prices to be paid, and certainly for what this means for the bank of england, some uncertainty. the blitz index, you
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were telling me, kind of like the misery index in the u.s.. strongup, alibaba, results. we look beyond the bottom line. ♪
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rishaad: this is bloomberg markets: asia. the shanghai market opened up a little while ago. let's have a look at what is going on here. we have this backdrop of the inflation rate, arguably, coming back to some extent. 225.e moment, the nikkei, helping things along quiet nicely. the movement it there at 1.5%. data out of us to well. the economy the growth, a little more anemic. the dollar, at the moment,
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having a check. seeing the yen, a tad bit weaker at the moment. up 130, pretty much where was yesterday. there is a rally at the moment in place. let's get to the open, when it comes to shanghai, and indeed, right here in hong kong. of broad picture first of what is going on in asia. following the u.s. benchmark higher, thanks to the list in producers. up about one quarter of a percent there. on withat is going japan's data, we are seeing the nikkei up 1.4%. somewhat making gains despite growth in the fourth quarter. we have other movement going on in the region. openhanghai expected to later.
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this perhaps is going to be a bit of a shift when we see that market open here. what we are seeing in the area -- elsewhere in the region, green in new zealand, as well as out that -- southwest asia. perhaps getting a list there. elsewhere, not getting the numbers through, but from what i saw in the terminal, again. something to highlight on the shanghai stock market, we have falling of a stock. we will have more details later on that stock. i would like to get a look at what is going on with some of .he currency in focus
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we do have the aussie dollar with the weaker than expected inflation data for the fourth quarter. aussie falling as much as .6% to just around $.75. it has not been able to break the $.76 level. weakeste yuan is the since january 9. i want to end with what is happening in the buying because of what we saw overnight, take a look at what is happening with japan 10 year. it rose as much as 0.8 percent. bond get aaussie list from the numbers. the deal jockeying back after rising around this level. treasuriesck at u.s.
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, if i can pull that up here. we have seen that move a bit in the past few days. the 10 year yield dropping about 2.4% earlier. not quiet working there. that is the picture we got. rishaad: thank you very much for that. now, we go to the first word headlights. rosalind: president trump has laid out incentives. meeting the ceos of general motors, chrysler, and ford, he said he would reduce taxes and regulations. the three companies have not built factories in the u.s. and 2006. he also moved to resume construction of the t-storm xl
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and dakota access pipelines. fbi director james comey has been asked to remain in his post, does right angry republicans and democrats during the presidential campaign. present -- president trump could have replaced him, but it could have been considered controversial. with the u.s.ttle government over access to imo could be going to the supreme court. that is after a lower court decision. give a prosecutors say they are becauseing an appeal ruling in favor of microsoft could create a loophole. a company plans to pay $1
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company.or a mobile it says there are more than 300 million active users. global news, 24 hours a day, powered by more than 2400 journalists in more than 120 countries. i am haslinda amin rishaad:. this is bloomberg. rishaad: let's have a look at alibaba now. this boils down to beating estimates in the latest quarter. indeed, at the same time, quiet bullish for the future, the near-term future, as well. a look at where the growth is coming from. >> there were concerns that slowdowns what effect spending. it seems that spending remains strong. they're getting more revenue
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from areas. raise the forecast growth.2017 revenue sales and net income up. all of that helping to lift alibaba shares before the close. it actually has not changed much. a november of that is huge for alibaba. really, the cloud computing is huge. one of the fastest revenue drivers for alibaba. rishaad: they will expand sales by moving abroad. it was all in chinese. are they really serious about
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this? if they were, they would do something about that. rosalind: last year, he said he 8 millionaba to serve overseas. rishaad: what about the jobs in the u.s. as well? rosalind: absolutely. he is thinking about that as well. yes.e moment, most of it is made in china. success internationally will rest on good marketing. people are understanding what it does and the services it provides as well. it will provide online computing
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services, data, and analytics. it will develop an online video panel for users. olympics, lots of eyeballs, i huge event. this should at least help on the international market cipher alibaba. rishaad: arguably, you say. if you're watching, sort it. let's get to what is going on in the u.s. big losers and winners, as ever. look at what happened on tuesday. alcoa, texas instruments, movers. >> alcoa, interestingly enough, the first time they are reporting numbers separately. also, aluminum, which is the main business, big in the regular session. the commodity was up the highest in 20 months.
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that was reflected, the rise in prices. up 13% last year. it's all pricing picking up in the back half of the quarter. tobeat on revenue, another pushshares up -- enough to shares up. the stock has seen a rise since november 5 63%. texaserent story with instruments. the first quarter forecast, everybody focused on where the company is going. if they that they were likely to rise. even though it did well in fourth quarter numbers, analysts say they are looking for may be more robust growth from the company. session,in the regular
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verizon rising, johnson & johnson, they managed to disappoint. >> these are two company specific stories. verizon down. when you see the slow down in the core business with a company that is trying to reinvent itself as a media company to compete with facebook and google, that is not seen as a good sign. johnson & johnson, that may be a sign of the times. the new president has put new device makers under pressure. the company dropped mixed earnings. a week forecast -- weak forecast. the head of the company spoke with president trump on monday and called the call productive. rishaad: let's tell you what we
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have coming up. inflation still off target. .sbc joining us ♪
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rishaad: let's take a look at what is going on in south korea. that is the theme from the there.rg bureau it is minus seven degrees celsius at the moment there in the south korean capital. a day when we are seeing equity markets, generally speaking, upside.o the part of it could be the country feeling the impact of political and corporate scandal. the economy not helping either.
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start out with the politics here. give us an update on the ongoing impeachment, or coming impeachment of the president. >> right. we are just getting lines. to give you an update on the legality ruling, if you will. he was impeached by lawmakers. now, it is up to the courts to decide if it holds are not -- or not. what the court is saying is the date is moved up, where they 13. make a ruling by march initially they had 180 days from the time he was impeached in december. we were looking at a timeline of may or june. that being said, the ruling, based on what the court that, must come before march 13. that is the update there. we will be following the story
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very closely. he has been in peach, it will be up to the court rather -- whether the move by lawmakers will hold, or not. rishaad: take us to the gdp numbers. what is the take away? david: he were just mentioning, it is negative seven in seoul. it is a cooling economy, if you will. slightly above estimates when .ou look at the year in year private consumption was basically flat. infrastructure investment is what kept things afloat. construction investment with a drag of 1.7%. the drug was three percentage points. the other thing, when you look at it in the larger context, it has met expectations for the year.
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moving forward, next year, the and 2.8%.between 2.5% we might need a bit more support. that may come in the form of exports. take a look at the bloomberg chart right now. it is here, behind me. to describe what you're seeing, you have gdp growth. the line is export growth, change in exports. the south korean economy is very reliant on outbound shipments. the down take is from the issis, it -- down tick from the crisis, it picked up. down below 20%. it changed, dropping year and year. we are positive here. rishaad: it looks more like an ecg. nevermind. will they have any read from it?
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david: if they can. let me quickly take you through this chart. how do support growth? take a look at the car. -- the chart. inflation is above the key rate for south korea. it does seem that the vast of korea once them to spend more money. rishaad: we will move from korea to the australian economy where consumer price growth is well below expectations, a bit anemic. the idea that growth is growing. what is your main take away from this? the key thing is not focusing on the inflation.
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the true meaning and median. they were slightly above what the market expected and in line with what the iba has been saying, running at 1.55, collecting the two together. 2-2 .5%.targeted it has been that he. it looks as though the inflation is stabilizing. if you dig a bit deeper, produced inflation has been lifting. it is up from a low point of 1.6. i argue that inflation is eadying. -- st ?ishaad: what good would it do the former governor would have
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argued that. the point being, part of this is down to commodity pricing and how the commodity complex is evolving. is it not? paul: a big part of her story is not what we have got in terms of stability and the domestic inflation numbers, which i did ride, but have we seen a big change in recent times? has lifted, coal. typically, when commodity prices rise, that boosts wages and inflation in australia. tax revenue, and some of that seep seem through to -- through to growth and inflation. that is why the iba may hold off for a while and why the next move would be up, rather than down. rishaad: when you get the recovery taking place, is it, in
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in the, and ?ifferent reform the need to do it disappears. rebalancing is almost done now. paul: that's right. the big story for australia in the last few years is we have been dealing with big headwinds of falling commodity prices and mining investment. move towards the housing construction boom and education.s them, what we're arguing is in 2017, the resources drag will disappear. commodity prices have already stopped falling. you have to also keep in mind, with the currency where it is, which is still a whole lot more competitive than where was previously, sitting at $.75,
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australia still have a lot of prospect for growth in tourism and education, supported by the currency. rishaad: would you say there are a lot of factors supporting interest rate where they are now? if it ain't broke, don't fix it. paul: that's right. our case is the iba will be on hold through 2017. we think the next move for rates will be up, arriving sometime in 2018. we think that inflation is dropping and this to my the commodity story is important frustrating. -- for australia. rishaad: thank you for that. risking the wraths of god. this is bloomberg.
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rishaad: donald trump making other headlines out there as well. inns for his six star resort bali may well be facing strong local opposition. they say that any building their taller than the coconut trees .ill anger the god what is this all about? haslinda: the balinese are saying no to trump's tower. votto motel 6 years ago, and they now want to ask and it, even adding a golf course. the locals are crying foul, saying it will anger the hindu
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gods. it is a unesco heritage site. largest resort in bali. even though trump has said he will stay away from his visit and projects after becoming president, he may still end up being at the center of this anger from the balinese people. the people bali tend to keep their emotions inside. they tend to not speak up, but sensitive and have the potential to blow up. rishaad: absolutely. an amazing place. the construction may also involve the purchase of farmland nearby. that is never easy there. haslinda: that's right. land issues in indonesia, india, very tricky. they will have to buy nearby
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farmland. this is a company of trump's indonesian partner. no details on how much extra the it needs to buy to meet target size. the thing is, there's already issues with the locals on the existing property. some early signs of potential backlash even before construction begins next year. rishaad: thank you very much. what has been happening with donald trump's companies, and the hazards at the moment. the plans for the hotel in bali look to be facing a lot of local protest. a look at what we have coming up on bloomberg markets: asia. donald trump driving investment, offering a tariff, when it comes to the motor industry.
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of course, a full market check on the way. that and more. this is bloomberg. ♪
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♪ almost 10:00 a.m. in singapore, 1:00 p.m. in sydney, and none :00 in the evening on tuesday on the eastern seaboard of the nine it states. tom rishaad salamat coming you from bloomberg's asian headquarters here in hong kong. this is "bloomberg markets: asia." ♪ president trump urging automakers to boost production and jobs. toyota says it will invest. jumping as china list prices to towo-year high, rio close
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quitting cold. phoneight for smart supremacy in india. a heat of economic data, let's we arelook at at what wiser about today. south korea seeing the fallout from its widening political and corporate scandal. on consumer confidence and spending. by 2.6% for the fourth quarter, below forecast, but the fastest growth we have seen since the first month of 2015. australian dollar down after consumer prices rose less than expected. annual inflation remains below the 2% to 3% target. export snapping a 14 month decline, a global pickup and surge demand from china contributing to a fourth consecutive monthly trade
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surplus. , let's seether ado how it is playing out. sophie kamaruddin looking at, well, taiwan is not open, but everywhere else is. sophie: thank you for the set up. up 1.4top, nikkei 225 percent after the surprise upside and export growth for december, exporters getting support there on the nikkei. you have the likes of cement and thedings maker leading gains, and parts for computers and car electronics, and nissan electric up 4.5%. toshiba heading in the other direction, falling as much as 6.6%. we will have more details on that shortly. ?lsewhere, how is the kospi
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the latest gdp numbers from south korea, a slight grain, but i.t. stocks higher on the kospi. we have some son and others leading -- samsung and others leading the charge. this comes after u.s. players saying it predicts better first-quarter numbers. with ans of samsung sdi upswing with its batteries likely to be installed in the next generation of samsung --nes it on the honk saying samsung phones. , galaxy up, macau media reporting the former president and ceoo will join galaxy. on the shanghai composite, snapping a three day rise with energy and telcos the biggest drag. the big theme today given the
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overnight rally on wall street, materials producers leading gains, helping the asx 200 rise .4%. alumina, 6.5% after the overnight rise in aluminum prices hitting a 20 month high given the china story and updates from alcoa. rishaad: thank you, sophie. right, let's look at those first word news headlines. rosalind: toshiba making moreines, the stock down than 4% on news the company has uncovered more mishandled data. it concerns the hydroelectric dam project and was found last november. shares plunged 6% after toshiba said it would put a figure on the right down at its u.s. nuclear unit on february 14. qantas enjoying a lift as it resumes flights to beijing,
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shares up 1.7%. capitalize time to on the millions trying to get away for the lunar new year. the ceo launch the flight says he sees "amazing growth in thailand in the coming years." he would on a 30on thursday wednesday evening in new york. alibaba added $7.5 billion of market value after beating last quarter and raising its full-year sales forecast. china's biggest e-commerce company benefited from a record november singles' day spending spree, doubling sales of cloud computing in the quarter. the company raised revenue growth to 53%, up from 48%. the u.k. government has to rethink its strategy for leaving the eu after the country's highest court ruled parliament must be consulted.
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prime minister theresa may argued she had the power to trigger brexit them up at the supreme court disagreed. the decision is unlikely to derail the plan, but may delay it. no then irish lawmakers do not need to be consulted. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: now, donald trump has offered a range of incentives to theact new investment into motor industry, having spent months on the campaign trail for attacking manufacturers. ramy inocencio chains us -- joins us now to tell us more. been hearing donald trump hammer at u.s. automakers to get manufacturing back into the nine it states, but today, it was a u-turn when it came to these u.s. automakers
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, including gm, fiat chrysler, and afford. -- and ford. he shook hands, they smiled, and they said that donald trump with support and actually take down regulations that he says are holding them back. let's take a listen to what he had to say. >> we will make the process much more simple for the auto companies and everyone else who wants to do business in the united states. i think you will find this to be from very in-hospital to extremely hospitable. that support translated into investor confidence on the stock market today. rose, andhares all interesting the, mr. mark fields, the head of ford and theirar, both expressed excitement and the opportunity for working with the government in terms of the president's tax policies, and in terms of mary barras said, even though donald
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trump said he will roll back environmental regulations. switching to something else, mr. trump also signed a memo around the -- memorandum on two pipeline deals, with regards to the dakota pipeline, dakota access pipeline, as well as the keystone pipeline. it does not exactly green like those projects. the obamaemember that administration had blocked those the keystone as well as the dakota access last september. you can see mr. trump signing those men around him, but it move forward with possible construction work, mr. trump saying he wants to renegotiate these deals and order to get a better deal for the u.s. government. take a listen. >> we are going to renegotiate some of the terms, and if they would like, we will see if we
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can get the pipeline built. a lot of jobs, 28,000 jobs. both transcanada and etp rose, up 3.5%. it is notsting thing, just about construction of the pipeline, but the making of the pipes that mr. trump is also going after, saying he will make american pipes again, 100%. rishaad: well, you know, his choices for the have rarely been out of the headlines, two making headlines, wilbur ross attacking china on trade. ramy: basically these are really fighting words. that he was saying here doesn't believe that china "is a market economy." that is a huge swipe across a 180 from the
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obama administration. no surprise here, but mr. ross said as long as the chinese have massive overcapacity, they will continue to. he also said state owned enterprises aren't required to make a profit because state-owned banks continue to prop them up. he also said the basic premise, rubbing with the most searing thing, the most basic or miss behind the u.s. government sessionfor china's the to the wto was that china would play by the rules. he said that premise was incorrect and stronger enforcement is the key to obtaining compliance. tryooks like mr. ross will to sink some teeth into china to make them play by the so-called rulebook there. other person one making headlines, gary cohen, trumps big to be director of the national economic council. overis making headlines
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because of his payout from goldman sachs. goldman itself lifted restrictions or accelerated delivery of payouts on about 120 $4 million in stock and cash rewards. it means that he gets $20 million in pay for all of 2016, including $18 million in variable compensation and $1.85 that totalary to get amount. it is interesting as we move ahead with these picks that continue to get confirmed here, mr. trump rose on a wave of populism, and when you hear more and more about this goldman sachs executive, and three total and his, it will be interesting to see if there is any backlash against the populist fervor he rode to power. rishaad: thank you very much. still ahead this hour, revolt from within, theresa may with the new stumbling block in her brexit battle.
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plus, can commodities continue their gains? ubs certainly think so. we will be finding out why. ♪
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a look at bhp billiton shares, 18 month highs after releasing production numbers for the second quarter. paul allen has the details. buter was a disappointment, it was going to be a disappointment? paul: not a huge surprise. there were some severe storms in australia towards the end of 2016 that knocked out power. we are seeing the impact of that pounds result, 357,000 of copper, down 7% on the year. full-year copper output downgraded by 2%.
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that is pretty much where the ends.ews or, 60 million tons, beating expectations, up 9%. iron ore has had that impressive run-up in prices, so boding well for earnings. coming in line with expectations, the market rewarding bhp, currently up 2%. right, let's take a look at rio tinto shares on the way up. china, people are suggesting there are pressures to get out of coal altogether. paul: a chinese coal mine is buying all assets for $2.45
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billion. rio will hang onto two mines, both metallurgical coal mines for steel production. they will pay rio $1.95 billion another $100 million per year for the next five years, so a significant deal. the rio stock price climbing, three point -- 3.41%. be ators feel there could healthy dividend in the offering in february. this is the first major transaction from the new ceo. he will still have to take it to shareholders for approval, and the government will have to give the seal of approval as well. rishaad: thanks, right, let's get to our next guest. he believes there's quite a bit of juice left for commodities. good to see you. give us your take on these two
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stories, rio getting out of coal , and billiton moving to the upside. >> there are a couple of stories. the first one is short-term. look better for mining companies over the next couple of quarters because they reflect on 2016, pretty bloody bat, so consequently we think that over all we will see some good results being released. the move out of coal for rio tinto is clear movement to a longer term trend, which they see as cleaner energy, taking a greater proportion of the total energy mix. for rio tinto, there is a domestic story. some of these coal lines are getting long in the tooth, some significant repatriation costs that will come with closing down these mines in the future, so in the price they are paying, it is computed into the price come
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some of these repatriation costs, environmental issues and so forth that come with it, but not only that, it is a clear focus on the key commodities, base metals, and iron ore as the pillars of their business which thermal coal no longer has a place in. generally speaking comes some of the results will be very good over the next few months tiered -- next few months. something, i me think what you just said cohen --es with what my colleague said coincides with what my colleague said. had a great 2016, but still the pets. -- pits. >> from the chinese perspective, they still need coal.
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if you're going to bring down emissions, they will need to burn cleaner coal, so to speak, which of course they can procure from australia relative to their own minds, so it makes sense from that perspective, but if we look at what is happening across the whole space, even metallurgical coal with prices above $300 a ton towards october and november last year, but it has not capitulated. it is still trading around $180 a ton, which is higher than what it was this time last year, but nonetheless, clearly this supply side is starting to respond, and also we are seeing curtailment s for china with some of the less productive steel mills. the key themes are still in -- capacitytitive constraint, move towards higher coal and iron
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ore, which chinese deal mills will be looking to replace that supply. rishaad: let's have a look at the wider picture. with had this big run up the dollar as part of that reflation trade. what happens next will be key when it comes to base metals. >> completely agree. at ubs, we have a negative u.s. dollar view. we think the key levels for the dollar, we believe the dollar has peaked. we think it rolls over here. -dollard-dollar -- euro is around 115. you see real interest rates going deeper into negative territory. we think the more debt donald trump promises through infrastructure and lower taxes
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tends to lead its out to a twin deficit situation in the u.s., which is clearly negative for the currency. just factors will not support base metals for the next leg up, but precious metals going forward. rishaad: a weak dollar means a stronger gold price, does it not? , moreare you looking fiscal spending coming through as we move away from monetary policy, how does that affect things? does it mean more capital expenditure discipline or more capital expenditure? what about its infrastructure spend, that will be helping industrial production, so who does it benefit and how long does it last in how much is already factored in? >> i think we can still get further pick up on the base metals side, but that is largely
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a factor of the supply side starting to disappoint a little bit. we have seen the copper run rates and a number of mines is coming down, so we are seeing pressure from the fact that prices have been low for quite capitale, that reduces expenditure to operational expenditure only, and now we see the fruits of that coming to bear, particularly for the base metals over the next couple of years. we think that can lift copper,, lead, nickel has taken a backseat because of the additional supply out of indonesia, but we think the lows are pretty close and we would then start to look to allocate nickel again. we are seeing a strong rebalance in the industrial production sector. we are seeing a pickup on a which will also
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link into the extra infrastructure in the u.s.. when you are thinking about infrastructure, the steel plays are the better bets, relative to that in europe. over all when you think about the total amount of infrastructure the u.s. will do, it still pales relative to what china is doing, so china will still be a fundamental driver of these commodity prices going forward, while the u.s. in many ways is like the cream on top of the cake. rishaad: have a great lunar new year. ubs wealth management. the political turmoil and south korea taking its toil. we will look at the growth numbers and how that has all been affected. ♪
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rishaad: let's have a quick check of the business flash headlines. after anin shenzhen
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attempt to buy the maker of talking tom. than 300as more million monthly active users. sent to be exploring the sale with goldman sachs. risk,edit rating at according to fitch. the insurer has been placed on watch negative, this is having been called out for nine years at what are they looking at and blaming here, fitch? they say aig's history of underestimating claims costs affected setting aside funding for future disbursements. they sent research will not be covering expenses. les at fitch, and aig is also out on valentine's day, february 14 with its latest
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figures. the u.s. consumer cracking agency warning smart phone makers to step up battery safety. this is because of samsung's overheating note 7. it says it will conduct a review into battery technology, and pointing to flawed industry standards. million saying the 1.9 note 7 funds recalled in the , a 97 percent response rate among users. the consumer protection agency saying it will continue its investigation. american bank regulators the finding $65 million for improper foreclosures in the aftermath of the 2008 financial crisis. company is of the said to be paying that fine. facing accusations of filing
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fraudulent documents and signing ofobo foreclosure papers. a mixed bag, essentially higher, but giving up earlier gains. ♪
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in hong kong,a.m. nine 20 9 a.m. tuesday evening an washington, d.c., and these are the first word headlines, donald trump laying out incentives he will offer carmakers to attract new plans to the u.s.. taxessaid he would reduce and regulation, the three companies have not built factories in the u.s. since 2006. trumping to resume construction of the keystone and dakota access pipe lines, while demanding a better deal for the government. the fbi director james comey has been asked to remain in his post despite angering republicans and
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democrats during the election campaign. could havehe replaced him, but that would have been controversial as the bureau is investigating ties between the president and russia. microsoft's battle with the u.s. government over access to emails may be heading to the supreme court after a lower court refusing to hear a decision again on data in his drug investigation. they are considering an appeal because of the ruling in favor of microsoft would create legal loopholes to be exploited. right, 2600 journalists in 120 countries. we have the world covered. right, let's have a look at what is going on market wise. let's begin with sophie kamaruddin. i want to check in with
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commodities, ubs saying commodity prices will likely extend in 2017. looking at cold, holdings declined, retreating from a but bullion is set for a monthly gain of 5%, it's first monthly rise in four months. holding below, the $53 a barrel mark for new york crude after u.s. stockpiles were said to have expanded last week. ubs said earlier that it sees precious metals and energy with the highest returns in the commodities complex. in the currency's face, the taiwanese dollar, the best performer in the region, followed by the yen and the singaporean dollar. data showing taiwan's economy ended 2016 on strong footing and him two years thanks to trade, but one economist says the
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recovery will likely run out of steam soon. strengthened had over the past four days. checking on the aussie dollar, some weakness they are. just pull that over here, this given what we saw with the latest inflation numbers coming in weaker than forecast, the worst g-10 currency to date, and j.p. morgan putting its hat in the ring for an rba rate cut. you, sophie.k right, let's find out what's happening with alibaba in the new york session, seven point $5 billion added to its market value down to its earnings and indeed because of its full-year sales forecast as well, beating estimates when it came to the former. where having a look at where the growth is coming from.
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rosalind: there were concerns by some that any slowdown in china's economy would impact consumer spending, which is what is key for alibaba's main business. stayer, spending did strong, but they are getting more revenue from new areas like cloud computing and entertainment, so you can see group sales increased 54% to 7.8 billion dollars, net income up 38%, and raised its forecast for 2017, revenue growth, 52% from 48%, all things helping investors feel a lot happier and lifting alibaba shares more than 3% by the close. event, buty, at huge it also has been in coaching on
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other areas, getting a bigger share of the online advertising by, generating revenue selling merchants more services to get more people to buy their product. theof the key things, and biggest revenue driver for alibaba, has been cloud computing, an important part of alibaba in this last quarter. rishaad: what about the company's efforts to move beyond its home market. still makes most of its revenue in its home market, because this is where it started and it is a huge market on its .oorstep a lot of their customers are savvy, buying things on the internet, and financial technology, using some services that aren't even available in other countries yet, but jack ma of their this is one
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key initiatives and focuses for the future. how will they do that? peopleng, getting outside the country understanding what they do, because shopping is only part of the things that alibaba has, and perhaps part of that will feed back into things like this deal recently signed, to sponsor the 800pics through 2028, worth million dollars, but alibaba sang the numbers have not been correct so far. for will create marketplace official merchandise and develop video channels for viewers in china, so this kind of thing will help alibaba boost its presence and people's awareness of it outside its home market to further drive earnings in the future. hope, isn'tt is the it? thank you very much indeed.
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growth numbers earlier, they were stronger than expected, but were still showing the economy expanding at the slowest pace in more than a year , and perhaps after these political and corporate scandals engulfing society there. let's start off with politics, david in glasses watching all of this. david: right. ascould get a ruling as soon march 13. , andresident of the court the constitutional court's ruling on this motion of this impeachment should be made before that date. consequently, that is also the date when one of the justices term ends, and the president of the court cited in that story, -- his term's jim
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ins on january 30 first. it is a cooling economy, but we could see this heat up, as far as the political backdrop is concerned. from a business point, this has caused uncertainty. if we get resolution, this could open up the potential for more money coming back into south korea. are the highlights of the numbers in more detail? 2%, a slowdown from the third quarter. even take private consumption out of the equation and the numbers will not change a lot because private consumption fell two point -- fell .2%. investment which was played down as the biggest , a low base, don't worry about in the future.
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it did not meet expectations for the full year. of korea also revise their forecast lower for this 2.8%.2.5% to that may bring up a bloomberg chart for you. let me shift that, here we go. growth and export growth, i think you would be hard-pressed to find an economy this closely tied to what they shipped to the world. have a look at this it right here -- this bit right here. days -- 20 days rather of january, we understand exports have picked up a lot, 25%. so if you do some simple math, it does leave the growth numbers
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for the economy, so that looks to be settled. theaad: tell me about what bank of korea does here as well. what are the implications for them? right, the key rate is already quite low. it is just north of 1%. can they ease? of course they can. should they ease? inflation has picked up. inflation has picked up. there's a reason why the bank of korea is looking at the government to spend more and support growth. 2.3 percent for the fourth quarter. they want to .5%. how do you get there? is there scope to ease or spend? it does seem the government has room to spend. it does not seem they have room to ease if you look at this chart. rishaad: they have all that
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household debt, but they have this fine balancing act. right, thank you for that. let's move to europe and look at the british government as it may rethink its brexit strategy, down to failing to win its court of appeal. apparently the brexit war goes on. kathleen, where are we now? we have theresa may leading the charge. she shows no signs of giving up. rule 8-3 court did that theresa may can not just trigger brexit without the u.k. the billt on board they have signed. their logic is that this fundamentally changes british law. there has to be some kind of vote from legislators to move this ahead. scotland, wales, northern ireland cannot vote on article 50. would surely have voted
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not to trigger. now the bill must go through five stages in both chambers of parliament. you see some possibility that it could threaten theresa may's deadline. davidk. brexit secretary davis spoke to parliament and made it clear that there is no going back. there is only one path towards >> it, and he said as quick as possible. >> this government is determined to deliver on a decision made by the people of the united kingdom to leave the european union. we will move swiftly to do just that. is interesting because even before the court decision came down, members of their opposingrty have 10 of hard brexit, afraid u.k. businesses will pay higher tariffs if they lose the protection of the eu. since the vote, there are six conservative lawmakers who are forming a coalition with them and want a written report from theresa may on exactly what she
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will do. this will be the interesting part to watch now. rishaad: it looks like traders are betting on theresa may getting this done and perhaps parliament acquiescing to some extent. >> yes, the pound has taken a bit of up and down. rishaad: i will bring it up in a second. do we have that? there we go. >> it does it all. the pound down, but now back up. they willsaid introduce the bill to trigger article 50 within days. he is also stressing keeping the march timetable helps reduce uncertainty. if this drags on and on, you will see business uncertainty, and that will be an issue for the u.k. economy. ,ishaad: i asked you earlier
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it's like the u.s. misery index, at i guess were looking at bit more optimistic calling it a bliss index. >> let's give our audience a number for it if you want to follow along at home. pound.e line is the rishaad: that is sterling. >> thank you. and the white line is the blessed index. ,ur own measure of uncertainty and this is a bloomberg intelligence thing, this bliss index. isk pound under pressure something that over all potentially is a negative force for the u.k. of economy. earlier, i showed you a chart from bloomberg intelligence. to 1999 i've gone back
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with this as well. you can see how the bliss index lags what happens with sterling. >> isn't it amazing? consumer and the pound weakens, you have to pay more for imported goods. means all those british exporters can sell all that stuff, so complicated, but a start. very muchhank you indeed. right, coming up, china calling, the world's fastest growing major phone market is lapping up handsets. we will tell you why. ♪
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let's have a look at the latest business flash headlines. toy yoda reacting -- toy yoda 600ng it is investing million dollars in creating new jobs at its factory in indiana.
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toyota increasing production of its highlander. it is part of a $10 million spending plan announced earlier this month. india's biggest telco is crying foul over the competition after posting a $.55 drop in profit. saying predatory pricing is hurting the industry. manindustry's rich and launched the business in september that offers free voice calls for life. paid byection fees are carriers and well below cost. apple to start from production in wednesday, executives will meet officials to ask for waivers and the removal of some import restrictions, also seeking concessions on setting up production. apple said it was ready to start making iphones in india with the government's help.
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mobileet back to telephones in india, and it is the chinese pushing out rivals in india, and challenging samsung in the world's fastest-growing major market. tech reporter has more now. how have chinese brands been able to make these inroads? did they get this opportunity when 4g became available? >> plus, they have the advantage of getting their training wheels in the home market of china. they got hold of high quality components, fast processors. they have a big market at home in china. a lot of them have targeted india for expansion, so they can bring the smartphones onto a market, selling where most carriers don't subsidize. you have to buy it outright, so price is a critical factor here. they are selling them under $200
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and dominating the market. rishaad: has there been any fight back from indian vendors? >> you have micromax, the big one. they are challenging samsung for top spot not long ago. they have to fight back. rishaad: they actually make phones as well. >> some of the smart phone micromax actually puts them together, but the challenge they have got is they are relying on the indian market, where as the chinese vendors have their home market builtl, where they have up technical expertise, sales, profitability to attack india, and that gives indian vendors a challenge to fight back with. rishaad: i was just reading what is going on in india, well, the press is saying india versus china on the 4g battleground, this make in india drive, making
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chinese companies dumped phones here, so accusations of dumping. >> that happens very much in all sorts of industries when you have a strong home market and push towards export markets like the chinese are doing. whether that is true or not is not for me to say, but xiaomi has strong markets and strong sales come so they can subsidize selling phones at a low price in india to build market share. rishaad: before we started with the interview, we were listening , freet reliance story voice calls for life proposition, and apple we talked about here. what is the reach of apple? saypple does not have a big in the indian market overall. was theyt data point were 10th in the market. where it does dominate, it has 62% of the over $450 handset
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market. apple is trying to create a retail chain in india in the future. they are hoping they can build on that and move up the rankings, but it will have to produce locally and avoid punitive taxes to do that. rishaad: thank you. coming up, why donald trump plans to held a towering six star hotel and bali, and why could be a tall order. ♪
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trump's plan for as six star resort near a hindu temple in bali may be facing local opposition. they said buildings taller than the local coconut trees will anger gods that inhabit the islands. let's bring in haslinda a president already managing to ruffle feathers and peaceloving bali. the balinese are upset, trump's hotel and tower in bali yet to be constructed will overlook the famous temple. according to the balinese, this will anger the hindu gods. partnerd his indonesian , they bought the hotel and now they want to make it bigger and taller with a power and golf course to boot.
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it will be the biggest luxury hotel in holly when completed. we see how trump has been under pressure to divorce himself from his businesses, and even though he says he wants stay away, it will still be at the center of this anger in bali. this is one of two trump hotels to be built in indonesia, costing up to $1 billion. the local people will tell you they are pretty on easy about it. they worry about it. it's probably best for them to consider the sensitivities of the land. rishaad: absolutely. if the gods are that powerful, they will knock it down for themselves so there's no need for the local people to get involved. construction will require the purchase of farmland near by. that will be a tricky one, won't it? to make the hotel
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bigger, they will have to buy nearby farmland. there is an offer from the company of trumps indonesian partner, saying the resort area will be expanded from 106 a heck acres the thing is that there were already issues with the locals over the existing property, even two years ago when it was bought over, so there we are, early signs of potential backlash. the risk is that it will be derailed. rishaad: thank you so much. min in singapore share it on hasn't update to what is in store? look at south korea, because it's the economy expanded at the slowest pace in more than a year, and now we have this update from the south korean constitutional court
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saying that the ruling of the impeachment may come early before march 13. we will have the details and ongoing scandal and south korea hit consumer confidence and the economy there. we will also be hearing about india's largest carrier, saying that predatory pricing in india's mobile phone services market is hurting the industry. they recorded a 55% drop in profit. we will also discuss the latest on brexit with an independent strategy president and global strategist about the latest court ruling on treating brexit. this is bloomberg. ♪
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♪ announcer: from our studios in new york city, this is "charlie rose." charlie: today was a much anticipated meeting between the trump administration and the working press. white house press secretary held his first official briefing this afternoon. he addressed a range of policy issues as well as the new administration's relationship with the press and intelligence community. this comes two days after spicer was widely criticized statement on saturday in which he disparaged media outlets for what he called deliberately false reporting. joining me now is the white house bureau chief for the washington post and a white house reporter for though washington journal.


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