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tv   Bloomberg Markets Asia  Bloomberg  June 21, 2017 9:30pm-10:01pm EDT

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talking, and we also have initial jobless claims data out later on. haidi: that's right. focus as weak in look for signs of inflation in the u.s.. the doe, comments from the chief economist really highlighting this divide when it comes to policy makers. let's get it over to sophie for shanghai and hong kong. sophie: we are seeing chinese stocks on the back foot. sx 300 game. weakness once more. hung saying down .2% -- hang seng down .2%. is rebound in energy prices helping oil players in sydney, trading higher by .4%. helping to also support gains across the region here.
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take a look at the currency drop, the yuan snapping a .3%, and the yen trading at 111.14. the yuan steady after the pboc said the daily fix slightly weaker. asian bonds looking mixed as treasury yields tick slightly lower. as our mliv opines, the bearish turn is not enough to bring back global deflation. that could provide some and the test for stocks. industrial metals in white outperforming. i want to pull up some market ,overs this morning, tencent
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rising over 1% after a drop on wednesday. as kate telecom gaining 3.5%, the most in three months, after samsung security said the stock is undervalued given it is the biggest shareholder in sk hynix. rishaad: thank you very much indeed. let's get over to paul allen in sydney for first word news headlines. paul: thanks. china has rejected president trump should view that it has failed to rein in north korea. trump told a rally that he still hopes for more from beijing. s behind the scenes moves have been indispensable. north korea says it might halt weapons test if the u.s. stops were game's with the south. ta plunged 53% in tokyo.
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it is expected to file for bankruptcy friday or monday with its debt and obligations morphing cash holdings. 's potentially lethal airbags are linked to 17 desk around the world and triggered a recall of 100 million vehicles. lowestdit rating is the since before the fall. chairman wang shi quits china vanke. motor vehicle sales and australia surged to a high in may, defined worries about weak consumer spending at a time of record low wage growth and
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record high household debt. sales rose for a third straight month and top 100,000. suv's and commercial vehicles were strong. luxury sales growth was at a five year low. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: now, curious as it sounds, bad debt is rapidly becoming the latest hot commodity in china, prices surging 30% this year, but there may be a limited supply of nonperforming loans to go around. ? what is going on here exactly hot investment for domestic and foreign investors right now. chinese banks still have a big number of nonperforming loans on their balance sheet that they are eager to offload. 1.6 trillion yuan of
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loans, a 12 year high. rishaad: we can bring up this chart showing that, #313. of 61% from two years earlier. have of global investors raised money to years ago and now they don't have places to invest in. investors, they don't really have a lot of places to invest. equities and bonds not doing well. distressed investment can still provide them with double-digit returns. this is essentially another way of looking at this close capital account situation? ofyeah, we have seen a lot players in this market, which is pushing up the prices. if you look at the prices, 30%
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increase in this year alone. right nowction price is $.50 on the dollar, up from $.30 on the dollar two years earlier, and some investors have told me in an open auction that some people are bidding $.95 on the dollar or close to par for those distressed assets. as you can see, the market is getting really hot. tended to expect anything that happens in china when it comes to investment classes to turn into a bit of a bubble because of the limited availability of what investors can do with their money. i love this quote saying the new bad debt management companies, can be more brave. does brave translate to careless, inexperience? >> in a sense, yes. very experience global investors going into the market, then they cannot get
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their hands on some portfolios because local money is braver. this is quite interesting because some of them are chasing yields and trying to get market share and don't necessarily have the experience. i also heard anecdotally that some local investors bid a little bit more than the global investors because they know the global ones have done their due diligence and have gotten the price right, so if the global ones paid a little bit more, they could still get that return without doing a lot of due diligence. haidi: thank you so much for that. thailand is sinking $40 billion of investment to develop the eastern economic corridor involving major upgrades of airports and other transport links. haslinda amin is that the thai stock exchange in bangkok. where does this money come from? whole point is to
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position thailand's economy for the future. we are talking about not just upgrading come but a third international airport, and a port that will be one of the top 10 in the world. we got some perspective from thailand's energy minister who joins us this morning. good to have you with us. huge and perhaps a very ambitious roger goodell it be a game changer and why? that is our expectation. the eastern economic corridor is a flagship project of this government. basically we have designed it so as ant can serve investment-led transformation tool for thailand. a majorndertaking wide-ranging reform, economic as well as social. represents a carrier
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where thailand has made good progress in terms of industrialization. weay, it is the time that again make major investments, major transformation in that area, so it will be a game changer. haslinda: what will it translate to in terms of growth? 7% growth, for instance? >> that is not our goal. our goal is to be able to achieve sustainable growth and is aboutnt, so the eec industrial transformation, industrial upgrading of target industries. that is not it only. we are also talking about upgrading the environment, building new facilities that are up to international standards because we want to accommodate not just the local population, but also the international
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ex-pats, communities that will be growing within the eec, so it is a comprehensive package. 4.0, there island an education and skills gap. how will you narrow that cap? >> that is very critical. in fact, the people aspect of thailand 4.0 is the most crucial thing in my view, because if we talk about transformation come industrial or otherwise, it always ins up at people, so a lot of things are ongoing. , but inn reform particular, we talk about industrial and eec, so we are of theg on the upgrading vocational education at that level of training because we have received feedback and input from the industry, industrial sectors, that is needed in thailand. haslinda: have any of the
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projects taken off? are you on track? >> we are pretty much on track. this year has been the year has been a your preparation for the eec, meaning we have put in place the overall plans where we know what would happen within the eec. for example, the airport, the rail system, the industries, and so on. we are expecting to see actual investment taking place. this year is a year of communicating with investors, with the people in the area, so that they understand what will be happening, and we are getting the inputs as well. a 44 billionis dollar project. where will the money come from? towards china, one belt, one road, canned that play a part? >> yes. first of all, the investment money come we are expecting the majority will come from the
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private sector. there utilizing private-public partnership concepts to drive for the funding for the eec, so overall, within the five year period, $40 billion, 80% we are expecting from the private sector. the rest from the government and public sector. the regionalto initiatives like the one belt, one road, it is very natural and thecal and beneficial for eec to link up with one belt, one road, and also other regional initiatives like the rcep and tpp. do you see as the risks and benefits from linking up with china under the one belt, one road initiative? >> today, any country cannot afford to just think about
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itself in terms of sustainable development. we need to work together and think about the region as a whole, and because the world has opened up, that technology has enabled unprecedented ,onnectivity in many dimensions so if we think like that, then a project like the eec initiative one not only serve thailand, but also the region as well, at least in terms of our neighboring countries, china, countries to the south, in fact that the entire asean as well. haslinda: i want to look at the baht, pretty strong right now. how do you think that is affecting business? number of aspects depending on what business you are income import or export, so both sides of the equation. haslinda: are you comfortable
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with where it is? where itk it is reflects the market, and of course the ministry of finance will keep a close watch on things, and we receive inputs from the industry. so far, so good. people know how to adjust. it depends on where you are. spaceda: in the political as thailand move towards an election next year, are you concerned investors may be on the politicaliven uncertainty that the country went through as it moves to democracy? , what we haveence been doing, focusing on communicating with investors, both local and international, that things are moving forward in a steady manner, like the eec
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for example. we get questions all the time, what would happen after the election? a new government comes in come up with the eec continue? my answer is definitely. why? we are putting in place measures, initiatives, that would ensure that a major project like the eec would be able to go forward. for example, the eec act is .ending before the parliament it will be reported to the national assembly soon. ensuret would basically that the eec project is institutionalized, has a legal basis for it to be carried forward, so that is very important to us that we put the foundation in place so that the initiatives can continue. haslinda: you're saying the rule of law will be upheld, contracts
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will be respected? important, it is necessary for us to show results , that the eec will proceed according to plan, as you were asking earlier, so that in the future as we move forward, people can see the benefits, can experience the benefits, of the eec. plus, the force of law that will thensupport it together, people can see the commitment and feel confident that a project like eec and others of this government will move forward. haslinda: we have to leave it there. .oining us here live back to you guys. rishaad: thank you a lot for that. let's tell you what we have got coming up. i look at china, we hear from the standard chartered chairman up next. this is bloomberg. ♪
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haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. rishaad: i am rishaad salamat in hong kong. the slowdown in growth is taking , policyholders clamp down on financial risks. one person who remains optimistic is the standard chartered bank chairman. he gave us his take on the economy there. >> the chinese economy is doing well. the forecasts for chinese growth this year has the upgraded higher than 6.5%, and this is good. china is managing to rebalance its economy in terms of external, internal, consumption, investment, etc. in a way that leads to a more sustainable growth pattern, so growth rates are slower than a few years ago, but much more sustainable.
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what china needs to do is make sure it continues to rebalance economically and develop financially, while safeguarding financial stability, and that is critical for china and the rest of the world, so china is going to continue being a very important part of the world economy, and i hope it can continue to contribute positively to it. stabilityrd financial , i want to pick up on that point. the government is on this deleveraging campaign removing excess liquidity in the system. rocking this some and people and institutions are adjusting. how does this play out? if it starts to hurt growth and it will be questions over how committed china is. >> sure. it is important that china continues to rebalance the policy mix, so there is less monetary stimulus and more fiscal stimulus, so that
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rebalancing is healthy for the economy. needs to china continue raining in the growth of credit, because the leverage in china is very high. the corporate leverage is very high, and this is a situation that needs to be managed. i think the situation is manag able. >> the growth in credit rates and gdp, saying the growth and credit is outstripping by a good margin, basically buying growth through borrowing. until they turn that around, are we going to be comfortable with the chinese economy? >> that is an issue. every country that has had a growth in credit in due time has had some issues with the financial system in the future. so this is why it is important the chinese authorities recognize there is an issue, and that is a major difference with
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authoritieses where did not recognize that. they are taking measures to deal with that. was the standard chartered bank chairman speaking to bloomberg. james packard's crown seems to be slipping in asia, and the casino operator is increasingly hard to find. we are live in sydney, next. this is bloomberg. ♪
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crown james packer's resorts may be dismantling its operations overseas. the presidents from account to indonesia has been increasingly hard to find. how far-reaching is this offshore retreat? >> it looks to be comprehensive.
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crown formerly ran nine representative offices across asia, and hong kong appears to wethe only survivor because have placed calls to those offices and they are either closed or no longer work for aown. it seems to indicate host cell withdrawal from an office network in the wake of detentions in china. wholesale with draw from an office network in the wake of detentions in china. not a chatty company at the best of times, and today, we are not seeing anything. what we do know is that those dresses were listed on their as recently as may, and they disappeared by the end of the month, and these closures seem to have taken place in the last 1-6 months. it is not clear why or what the staff are doing if they have employees in those countries anymore. this,d: i have to ask you
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over all, what are the implications for this company then? there are a few questions which these closures raise. thoseis, what happens to big gamblers and vips if you like who crown attracted from across the region to its is thep resorts, which bulk of crown's business, and how will it attract and if it does not have marketing offices there anymore? we know offshore visitors generated more than a third of revenue in melbourne, so there could be a hole to fill there. the other question is what is this going to do to the business model of its flagship sydney resort? that is focused on high roller gamblers here it is not licensed so macaulot machines,
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is the world's biggest scam in center and it is not clear what will prop up sydney. rishaad: good stuff as ever. we will be talking to wells fargo global economist. ♪
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♪ anchor: from our studios in new york city, this is "charlie rose." jeffrey: good evening. charlie is traveling and i'm jeffrey goldberg of "the atlantic." we begin this evening with politics. president trump's approval numbers continue to drift downward even among the previous loyal base that won him the election. according to a new cbs news poll, only 36% of americans support his performance so far. the trump administration continues to endure heightened scrutiny over ties with russia as robert mueller's investigation begins to ramp up. voters have gone to the polls today in georgia's nationally watched special election in the


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