Skip to main content

tv   Bloomberg Daybreak Australia  Bloomberg  November 5, 2017 5:00pm-6:00pm EST

5:00 pm
♪ >> after gold and dinner in japan, president trump phases of the first of many meetings with north korea high on the agenda. >> the new warnings about getting china, joe shaw trend says the system is significantly more honorable. for your earnings had a record of that debt charge and drop. the final dividend will be 94 of share. >> the crackdown puts prince mohammed on the cusp of the throne. billionaire investor out the need is among those.
5:01 pm
hello from sydney, we're just past 9:00 a.m. this is "bloomberg daybreak: australia." we are an hour away from the opening of the major market. >> it's just after 5:00 p.m. in new york, i'm betty liu. over the weekend, the incredible news out of saudi arabia, the -- 11 of 11 ministers princes, for ministers, dozens of current senior officials. it was prince al believe in so all and his arrest that stunned the markets and pretty much every single senior head of state. he was arrested at his desert kevin. making seen this prince a huge investment all around the world, particularly here in the u.s.. by investorss about what might happen when the
5:02 pm
markets open, given this breaking news over the weekend. , the 50the him richest person in the world. these are some of the companies that he owns, at least a 5% stake in. apple, list, he is worth about $19 billion, but this seems to be consolidation of power by prince mohammad bin salman as he , orntially takes the throne consolidate his power ahead of to essentially consolidate his vision of saudi arabia going forward. top kind oft to the clearing the way. this isn't the first time it's happened, a lot of analysts are saying by his standards, he's going for the shock and all approach. an extraordinary story, we are taking a deeper look at this and the implications for foreign investors, particularly as he is preparing the kingdom for this
5:03 pm
post oil era and opening up more for foreign investment. we are speaking to emily, stratford meetings analyst talking about things -- the implications for foreign investors as we get towards the aramco listing. what a means to international investors looking for that region. >> president trump has told the prince that he would love for saudi aramco to be listing its ipo in new york. what leader wouldn't want a piece of that pie? we also just showed kingdom molding and that stock down about 8%. a lot of market jitters. very few jitters in the u.s. stock market on friday the job report came in showing a nice rebound after it was taken down by the hurricanes in the prior months. that left a pretty nice taste in friday.s on
5:04 pm
the s&p up about 3/10 of 1%, the dow and nasdaq higher. a lot of demand for the iphone x, which started selling on friday. >> a lot of that across social media. people were lucky enough to get their preorders failed. we are setting up -- failed. we are setting up higher, japanese equities pent-up demand. take a look at the set up as we get trading underway. have essential bank decision out of australia on tuesday. before that meeting tomorrow to decide on monetary policy. pictures ahead of the open in sydney are looking positive. sydney, as well as japanese pictures looking positive. the aussie dollar leading declines as the u.s. dollar
5:05 pm
index continues to climb on the back of those nonfarm payrolls. a string of weekly gains for u.s. equities since 2013. it continues. betty: it does continue, but one deal that could not continue was the deal between sprint and t-mobile, called off on friday. we are getting some headlines out on softbank. softbank reporting their intention to boost their stake in sprint. it viae going to boost open market transaction, in the public market. softbank, after failing to put these two communications giants together to boost the stake in sprint. the other big story we are tracking today, president trump beginning his tour of asia facing a busy day in japan, including meeting emperor akihito, and also a state dinner.
5:06 pm
our chief north asia correspondent stephen in tokyo with more. what is on the agenda? on the play, that's the most important thing. dinner outn informal in the golf course. they have had a lot of time to get to know each other even better. donald trump and shinzo abe as they did a round of golf. after donald trump visited the troops at the are based in western tokyo, where he gave a campaign like rally, talking a lot of rhetoric against north korea. i will give you a few highlights. he said the united states dominates the sky, the sea, the land, and space. no dictators, no regime, no nation should underestimate our american resolve. cominga lot of rhetoric
5:07 pm
-- targeting north korea, he did not necessarily name them. north korea is going to dominate at least the security side of the talks as donald trump takes the official side of this 12 day trip around asia. this is what he had to say about his japanese host. he said they are a treasure partner and a crucial ally. he said that speaking, and also he told the press about the relationship between him and abe. >> the relationship is extraordinary. we like each other, and our countries like each other. i don't think we've ever been closer to japan than we are right now. interestingly, he also had some kind words for the north korean people, not necessarily kim jong-un. he called them great, and warm, and also industrious.
5:08 pm
interesting, the president obviously campaign on his reputation on being able to get a deal done. what have you heard -- what does he have to achieve on this trip? >> he wants to get china on board with tougher sanctions against north korea. he wants to get a better relationship with president moon in south korea. he has already laid back -- that groundwork with shinzo abe. he wants free, fair, and reciprocal trade. is still veryent much of the forefront, even though north korea might dominate the headlines. even some americans were out in tokyo, mixed in with a few japanese, criticizing the american president. calling that they want a more ethical person in the white house. yesterday,shipley at
5:09 pm
in one of the biggest shopping areas of tokyo. that is something he might face in numerous places, probably not beijing, but some places around asia, as well. big trip for president trump, his first out to asia, some crucial meetings taking place. analysis, are former u.s. ambassador joins us now. great to have you with us. we have been talking about this high-stakes trip for a president who politically, domestically, has taken some hits lately. he needs a win, doesn't he? >> i think this is unimportant trip for the president. i think it's important for the united states. and many south korea, of our allies and friends in asia are anxious because of these threats from north korea.
5:10 pm
i think they are looking for reassurance from the president that the united states will be there if there is a difficult moment. i think that's the thing the president can do for the relationship that will have the greatest effect more than anything else. just to say that we will be there if there is a problem. >> do you expect him to follow that playbook? there was a sense after he came into the administration that there was a tearing up of postwar alliances. it had lot of people -- a lot of people in asia stretching their heads wondering if they needed to look for other alliances. >> that's exactly right. -- cost a lotost of angst in asia, it cost a lot of angst -- cost a lot of angst in asia. a good jobf a did coming to establish a relationship quickly.
5:11 pm
that has. be laid a lot of fears. having said that, this is a very dangerous neighborhood. i think americans are really just coming to the realization of how dangerous it is. i think the president can go a long way with both the american people and the japanese people if he reassures everyone about the importance of the alliance that he recognizes that, and he understands it's the linchpin of our foreign policy in asia. that alliance enables so many good things to happen, and it deters potential aggression. it has done that for over 70 years, it's important for the president to say that. >> what would be considered a big win, or a win that he needs out of this trip? >> i don't know that you can keep score on the win or not. asia is important to the future of the united states. the american people need to know that.
5:12 pm
and the american people need to be reassured that we are going to stay in asia, as do the people in asia. no one wants the united states to abandon asia, with possible exception of the north koreans and the chinese. we don't want to do that. the 21st century is going to be the century for asia. we need to be a vital part of that. we can continue to be that, so long as we maintain the alliances that we have, and that we tell people we are not going anywhere. earlier, we had michael froman, the former u.s. trade wasnistration, the chief the u.s. leaving the transpacific partnership. was that a strategic mistake that is irreversible, that will allow china to take the more center stage in asia? >> i hope not. i think it was a mistake to withdraw. i think the japanese have taken
5:13 pm
the position with regard to the 11 members that remain in the transpacific partnership that the best medicine for everybody would be for those 11 nations to ratify and hope the united states would reconsider and join. frankly, that's what i hope will happen. i think the japanese have done a good job of stepping up to that and encouraging people to do that. hopefully the president will one day weat and will figure out a way to get back in the transpacific partnership. it is not only important for the united states and japan to set the rules for trade, it's also important from a security standpoint. we don't want any vacuums to be created in asia that the chinese attempt to fail. that is not in our long-term interests. >> going from japan to asia, we know he will -- japan to china, trump will be in china on wednesday. how do you think history to jump
5:14 pm
van -- how do you think his trip to japan will be different? >> i don't know. andever the united states japan are perceived in asia as close and tight allies, when there is no link between us, that strengthens our hand. theways want to speak to chinese from a position of strength, not one of weakness. if there -- if we became isolated from the rest of asia and tried to withdraw, i think we would actually be weakening our hand. we don't want to do that. the chinese are not a nation that needs to be confronted, but they are a nation that needs to understand that this is a world big enough or all of us to have success and be a part of a peaceful international order. i think when you have a strong u.s.-japan alliance, that becomes apparent to everyone. thehank you for joining us, former u.s. ambassador to japan on trump lost it to asia.
5:15 pm
we are going --. trumps trip to asia. now, we will be joined by the former japanese , and at 10e minister past 11, we will talk about the indications for stocks with japan.n sachs' you are watching in new york. >> let's get you up to date with the first word news. leaked documents from an offshore law firm reportedly stakes in a ross shipping company under the u.s. sections. giant russian energy companies called fiber. ross has never met cyber and didn't know the relationship with the kremlin.
5:16 pm
renewed his warnings about the dangers of corporate debt, saying international system is becoming significantly more vulnerable. elated riskse, were regulating, including some complex southern contagious and hazardous. even as the overall health of the economy remains good. at least 20 people are reported to have been killed in a mass shooting at a church in texas. officials say a man walked into the baptist service and opened fire. it's not a case of who shot the attacker, or if he died. global news 24 hours a day powered by over 2700 journalists and analysts in over 120 countries. i'm rosalind chin, this is bloomberg. still ahead, a big day for saudi arabia's crackdown on billionaires and officials and ask what it remains -- what remains for investors. >> leaked documents show wilber
5:17 pm
ross has business links to president vladimir putin. we will discuss that with a former senior adviser to planet -- president clinton. this is bloomberg. ♪
5:18 pm
5:19 pm
♪ betty: there are some brand-new revelations on ties between president trump's administration and high-level officials in russia. from an offshore law firm reportedly show commerce secretary wilbur ross still has a stake in a shipping company with ties to the russian businessmen. clinton's son-in-law -- president clinton's son-in-law as well -- president vladimir putin son-in-law's well. there's an investment or private equity. the continuing cloud over the trump administration and its officials. >> it's a drip, drip, drip,
5:20 pm
about russia everywhere you look. it's the last headline from an unexpected place that the trump administration wanted. most americans reading this news -- the first thing they will think is -- betty: will they understand what this means? >> they will understand what the city u.s. secretary of commerce has hidden offshore interests that emanate from the cayman islands in which you can have the company and not fully disclose what the investments are. most americans will be surprised that if you are the sitting u.s. commerce secretary that you can have secret offshore investments. that doesn't sound right. even worse than that, is the fact that these are connected directly to vladimir putin. the evidence comes out every day that he tried to influence, if not fix the u.s. election in favor of donald trump and that it should be happening right before donald trump meets with vladimir putin makes for a very
5:21 pm
uncomfortable moment. arey: these ties, which we getting more details on through the molar investigation, last week all of the news that broke on papadopoulos. in terms of affecting policy, do you see any of this having an impact -- or get about the trump officials -- forget about the trump officials, what are the impacts on things like trying to pass tax reform? >> it's hard to know. republicans i think feel like they have to do something. the have not been able to repeal obamacare, they have not been able to move on immigration. they haven't been able to move -- the election happened one year ago, and nothing really has happened. they have done a lot by regulation in the background, but none of the major things -- betty: nothing through congress. >> none of the major accomplishments that they promised in the first 100 days
5:22 pm
have been done. i think the republicans feel a lot of pressure to get something through on tax reform. getink they will probably something through, it's hard to know what that will look like. what is surprising to me on tax republicans talk about tax signification and making everything easier for the regular taxpayers and not favoring anybody. there is none of that in this plan. it does jumble things around, but it is really a giveaway to big companies. big companies are the big winners. and the super rich. there's been a lot of these reports, rumors, exposes surrounding this administration ever since before he came into the presidency. do you think there's going to be a legal washed up that something is going to stick?
5:23 pm
the molar investigation has been more of -- the robert mueller investigation has been more thorough than anticipated. >> it's hard to know, everything at this point is conjecture. that robert mueller is going at this aggressively, he has assembled a team, which would suggest they are going straight to the top. the way this investigation has unfolded, getting a guilty plea from someone who is lower down in hopesain of command that a witness would turn and you can start to move up the chain. this has all of the hallmarks as something that is aiming for the not the president himself, people very close to him. betty: i want to bring up these poll numbers out from abc news it's a good time for
5:24 pm
trump to leave the country, his approval rating down to 37%. 56% of americans say he have a contest has accomplished little. the interesting thing is that numbers, heese would still be in a dead heap. what do you say to that? it accurately reflects the fact that the american people are pretty much fed up with everybody in washington. i think that anybody, either from the democratic side or the republican side, or from an independent side, there is an opening for new leadership in this country. the american people are fed up with politics and are blaming everybody. opportunity for the president to really change the narrative, let's see if it
5:25 pm
works. betty: he has several days to do that. thank you so much, richard. ceo adviser during the clinton administration. much more ahead on daybreak australia. this is bloomberg. ♪
5:26 pm
5:27 pm
♪ a quick check on the latest business flash headlines. softbank is preparing to boost its done with sprint after the collapse of its deal with t-mobile. they ultimately failed to agree how to share control of the combined operation. they had welcomed merging the carriers. earnings rose to a record. cash profit grew 3%, almost 6.2 billion u.s. dollars. the banks net interest margin 2.13%, while to
5:28 pm
debt charges fell almost a quarter. on saudi ahead arabia's anticorruption campaign. this is bloomberg.
5:29 pm
5:30 pm
♪ a rainy dreary day in sydney. markets open in about 30 minutes. of sunshine, positive the ahead of the sydney open. a busy week for traders. have the rba decision on tuesday. i am haidi lun in sydney. betty: a little gray there. as well in newy york. i am betty liu, it is 5:30 p.m. "daybreak: australiaand you are watching "daybreak: australia -- and you are watching "daybreak: australia." rosalind: saudi arabia's crackdown on officials.
5:31 pm
prince has the crown -- ched a dutch president trump faces a busy day emperor, meeting the shinzo abe and having a important dinner. new analysis in washington says ground invasion of the north would be the only way to eliminate its nuclear weapons. lan n separatist -- cata separatists leader surrounded -- surrendered in belgium.
5:32 pm
the belgians have until monday morning to decide if they will keep him and attention. mark carney says the bank of england may be able to cut interest rates to boost growth if the brexit deal is worth -- is worse than expected. the decision is already hitting supply and expansion. the u.k. can probably only grow about 1.5% per year without stoking inflation. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ thank you so much. in the early session in new zealand, they are looking at a decision this week, we are seeing the upside thing pared back, the market trading flat at the moment, the kiwi dollar at 69 .12.
5:33 pm
the aussie dollar looking a little more positive, it is leading the decliners the g10 space, the dollar adding to gains. let's get more, we should be watching as trading gets underway in asia for the day in the week. our equity markets editor is joining us. let's talk about why the pboc governor is talking again about high levels of debt and the vulnerability of the companies to this. >> good morning. like you said, this is a bit of a repetition about warning about debt levels. had, not the pboc we have we had the imf talk about levels of debt in china, movies cut the sovereign rating earlier this year. basically, it is literally the size of the debt, which is almost three times the size of
5:34 pm
the economy by some estimates. the pboc governor is saying that needs to be reined in and needs to be accompanied with higher regulations, he said that china is lagging behind other countries. what it seems to be, this talk about that seems to be a talk toward -- a push toward equity financing. do well, aty will least earlier in the session, they had a tough week last week. betty: this is an extraordinary story of study or -- haidi: this is the ordinary story about saudi arabia. in the markete from this? most immediate effect was one of the princes companies down in riyadh yesterday. his holdingsr what are, it is hard to clean that.
5:35 pm
i think overall, i think what people will be looking at is what this does to the kingdom's plans for the aramco ipo. that hethe princess wants to wean saudi arabia off of oil. -- the print has said he wants to wean saudi arabia off of oil. haidi: we also had president trump on twitter cording for aramco to be listed on the new york stock exchange. our asianvery much, equities reported. let's take a deeper look at the sweeping crackdown in saudi arabia. joining us is an analyst, emily hawthorne. aside, we are wondering what the implications are when it comes to foreign investors, international investors demand particularly ahead of this highly anticipated aramco listing. you look atnk when
5:36 pm
really, as you mentioned, the surprising scope and beat of this anti-corruption hurt that occurred last night -- anticorruption purge that happened last night, we have look at the priorities of the crown prince. he is moving toward aggressive reforms, he is trying to weigh on a different economic vision for the kingdom for decades to come. that is one of his top priorities. this ties in in a big way. he also is consolidating his power and acting on the power he has consolidated, by really achieving the place he has in .he succession path there is a political aspect, as well, when you look at the anticorruption purges. and there is establishing the place for saudi arabia regionally. we have seen this week in some moves in lebanon, really trying to position saudi arabia as a firm sunni power in the region. i think these are all connected.
5:37 pm
i think you have a lot of people saying, it is sort of undeniable a shakeup needs to occur in order to set up the kingdom of for this post oil era , but is there a danger or concern the shakeup is not going in the direction international investors and watchers were expecting? emily: i think it is interesting when you look at the difference between the domestic response to what mohammad bin salman is doing, and i think the uncertainty outside of the kingdom is warranted. this is new for saudi arabia, a new era for the kingdom. this young crown prince, who is deservedly sent to be king, is acting in ways the kingdom and they have not seen before. we are firmly in the third-generation of these princes, and he is acting and radically new ways. at the same time, when you look at the domestic reaction, the
5:38 pm
poll he has in saudi's, and people who say they support this, we support being put on equal footing. ,ith this anticorruption purge i think he is trying to bring about a greater amount of trust between the people of saudi arabia and himself. with the burgeoning population come i think he is trying to make sure he has their trust before he starts making even deeper changes to the social contract in the kingdom. right, they are cheered by a number of saudis on the ground. how much is this going to affect the future vision of the prince? it is everything from building this new economic zone to the saudi aramco ipo. do you think it might have an effect on any of these plans? emily: i think the kingdom needs an incredible amount of
5:39 pm
international investments into gnome, i think projects that has been on hold for a couple of years, but the kingdom is starting to pay some of the government contracts again and trying to get the work moving again on big projects. they need a lot of capital. there is a concern that if companies look, the drop in the stock for kingdom holdings as a result of one of these big arrests, yes there is a concern they are shooting themselves in the foot somewhat by creating and stirring the waters of uncertainty themselves. it think he is taking the long view and i think he is looking ahead and saying i want to be any nobody's hands are in cookie jars and i have firm control and buck stops with me as crown prince and the future king. i think he is kind of doing some of this messy work that could have some negative affect, he is
5:40 pm
really banking on it long-term, positioning the kingdom to be quite economically strong in the years and decades to come. but really, the jury is still out. we will have to see how it plays out in the years to come. betty: have you think this will be viewed by the leadership in iraq and iran? emily: mrs. anderson, if we look at the resignation of the prime minister of lebanon. he is from saudi arabia and he has deep political ties there. not too surprising. he directly blamed iran's interference in the region. he was coming from a firm place of saudi support. i think iran is looking at everything that saudi arabia's doing and the new crown prince is doing, and i think they're probably reading this is a new effort to redouble saudi arabia's willingness to challenge iran and a lot of includingy zones,
5:41 pm
lebanon and places like iraq. --hink we are interesting we're entering an interesting era. i think mohammad bin salman on wants to put a strong face-off for the kingdom and what iran is doing in the region. i think there is some added instability to come, especially in places that are traditional battlegrounds where we see saudi and iran challenging each other. to theif we go back events of the last few days, is it being seen more of an economic purge than a strategic purge in that way, how much more is there to come? emily: i think by removing people like the minister of when he was summoned close to the crown prince, i think there is an effort to lay out this common ground, trying to say that no one is above the
5:42 pm
law. of course there is a political aspect of this, as well, there is an effort to make sure it are no detractors, no dissent, nobody pushing, nobody else will enough to push against what the ground princes doing. there is anticorruption side and the political side, making sure he is the ultimate power in the kingdom. it is a monarchy, and that is not entirely surprising, especially when we know that by winning his place in the secession -- succession line in a somewhat scandalous way, it has been shocking in the kingdom. i think we are really going to -- and look at and read make sure we remember his priorities, and one of those is economic reform. there is of course political motivation and political pools, but it is about economic reform,
5:43 pm
especially in the coming few years. haidi: thank you so much, emily. talking through these latest developments and saudi arabia. you can get around up of the stories you need to get your day and week going, today's edition of daybreak, the events in saudi arabia, the reshuffle is at the top of the agenda. bloomberg subscribers can go to the terminals, it is also available on mobile on the bloomberg app. you can tweak your settings so you just get the news on the industries and asset classes that are relevant to you. this is bloomberg. ♪
5:44 pm
5:45 pm
♪ i am haidi lun in sydney. betty: i am betty liu in new york. you are watching "daybreak: australia." mother nature took aim at berkshire hathaway in the third quarter. natural disasters hitting warren buffett's insurance focused
5:46 pm
conglomerate hard in the last quarter, dragging down earnings by a must $2 billion and overshadowing some positive results elsewhere. let's discuss this with gardner russo. berkshire hathaway is the biggest holding in the managers for december. good to see you again. hathaway, howire disappointed were you, or were you disappointed by the last quarter results? >> those results for a beautifully against the national disasters. one of the things which are has proven -- things berkshire , they wills proven write checks and they will go straight back to business joining -- business. they stand for principle of looking for businesses that have
5:47 pm
pricing meeting demand. they have shown that recently. describe the chance to an american view about berkshire hathaway to the start of asian trading today, we celebrate here --ause of so few agencies they underwrite when the rates are compelling. the reason why berkshire hathaway does anything is it increases the value of each share of the longest term. they will come back stronger because of the capital that has been seated -- seeding in the industry. berkshire hathaway will have more underwriting.
5:48 pm
abundant capital with which to underwrite and move forward. betty: hang on for one moment, we have some breaking news, you know that trump is in asia and japan right now. some headlines coming out, north korea big on the agenda. south korea blacklisting 18 north korean banking officials, no more details than that. south korea is going to be blacklisting 18 north korean banking officials. earlier, we had another headline cannot from nhk saying japan will tell u.s. it will strengthen north korean sanctions. that sort of struggle hold on north korea continuing to tighten as president trump made his way through japan and korea and china and other countries in asia. buffett.arren -- not easy, but
5:49 pm
reasonable to say, this is one quarter, these are natural disasters and they do happen for an insurance company. i think what also surprised investors with -- investors were the other parts of his business, like the railroad or dairy queen, any number of businesses he has his hand in. they were not hot moneymakers either during the quarter. they turned in solid results but nothing to really write home about. thomas: this was not the best quarter berkshire hathaway has ever had. this will set them up, however, for terrific business down the road. think about the acme brick business, the gypsum sales, the structural beams, the clayton holmes. there is so much that will be troubled areas, they will perform well there. what has done -- what has been
5:50 pm
done recently, they underwrote some of the risks businesses face with the shifting nature of the digital world. they have a small investment in the digital world. apple has grown considerably in market value. they underwrote the nervous ownership of something called flying j this last quarter. they are truckstop company, one of the great franchises, 750 locations around the country. they are nervous about the autonomous vehicles replacing truck drivers. in an effort to underwrite your nervousness, rupture have to wait was able to buy a must 40% of their -- berkshire was able to buy almost 45 -- 40% of the business. to shift then able risk to technology down the road. they say it is unlikely the business will change such a
5:51 pm
medically we cannot make money on it. the sellers believe they have reduced some of the personal risks. the technology world, which is changing so quickly, concerns berkshire hathaway more broadly with business challenges that have the recent hurricanes. i think they're working hard to confront the burdens optimistic companies -- burdens on domestic companies we see in the relatively slow economy and the threat of the margin that the technology world offers traditional businesses. everyone is looking at the war chest, it has had a struggle on the from this year. are you anxious to see what he does next? thomas: i am so confident he will do something that reports shareholders immensely with that money. i do not worry about that. i love that they have the funds it will spend -- just a good
5:52 pm
what they did with $6 billion in the midst of the last crisis when the invested in preferred stock in a good america. for $6 billion, they are paid 6% of year, quite considerable at the time. they also have $730 million to buy the stock. andexercise those warrants have 730 million shares of bank of america, nearly $20 billion gain. they issued the $6 billion in the midst of the worst crisis and made $20 billion as a result of their capacity to act at that time. they are the best company for this, there is no agency cost. the objective is what they want to a composition -- is what they want to accomplish. warren buffett is empowered to do this.
5:53 pm
is perfectlyhaway secure in the money. haidi: great to have you come thomas russo talking about berkshire hathaway earnings. following,debts are but will it satisfy the market? we will have the details next. this is bloomberg. ♪
5:54 pm
5:55 pm
♪ i am thatd morning, he liu in new york. haidi: i'm haidi lun in city -- in sydney. a story is markets open the week, record mornings announced -- record earnings announced this morning. let's look at the numbers. another record profit, but still a mess. >> a tough audience.
5:56 pm
the audience surveyed by bloomberg were expecting a $.16 billion, we are about $100 billion short. --ll a record office of 3% record up 3%. it contracted by four basis points to 2.09. that debt is falling, 24%, $853 million, and the ratio looking healthy. it is ahead of what the regulator wants the bank to hold to meet the #of being unquestionably strong. there was some calling from westpac about the housing market. the ceo overall calling the results "solid." betty: do they have anything to say about their ongoing court case, the allegations about the ink swap -- bank swap rate?
5:57 pm
paul: they are leaving that to the lawyers. both the national australia bank and another bank settled. that is leaving westpac to settle -- to go to court alone. a number of colorful conversations have been presented to the court, many of them profane. issuing a mature audience morning before playing some of them. the conversations sound ning,mely damming -- dam but the lawyer argued they were taken out of context. the regulator says it is not accounting for the use of jargon and shorthand and there was no attempt by the westech traders to manipulate the rate. that core case is continuing. the other banks involved settled. it will be interesting to see if westpac's gamble pays off.
5:58 pm
betty: that is it from "daybreak: australia," we will continue all of the action in "daybreak: asia," continuing to focus on trump in asia. this is bloomberg.
5:59 pm
6:00 pm
♪ >> it is 7:00 a.m. in hong kong, we are live from bloomberg's asian headquarters. welcome to "daybreak: asia." the top stories this monday, president trump faces the first of many meetings with north korea plan the agenda. he has made a clear warning to opponents to not challenge the united states. betty: and it is just after 6:00 p.m. on this sunday evening in new york. elsewhere, storm clouds over berkshire hathaway, mother nature rained on warren buffett's insurance-based parade in the last quarter. and saudi arabia's crackdown.


info Stream Only

Uploaded by TV Archive on