tv Bloomberg Markets Asia Bloomberg November 9, 2017 8:00pm-9:00pm EST
washington, concerns the plan faces an uphill battle. taking his trade and security message to aipac. singaporel be live in as commodity traders seek to survive another day. rishaad: a few days ago, we were saying what volatility? and then incomes and smacks you in the head. traders in tokyo, investors, battered and bruised after the 800 point delta. sending volatility through the roof. can we expect more of the same today? looking at that, investors appearing to be growing pessimistic for u.s. tax laws.
a headwind for asian investors and asian markets. some falls in sydney and so overnight -- seoul overnight. let's have a look at what else is going on. that surge,ve concerns about the senate version of the tax plan, differences with the house version. we are not going to get this done by christmas. that is looking like an ambitious timeline. looking ahead to aipac. as president trump departs beijing with a bag of deals, but are they really -- some of them were decided beforehand. not a lot agreed on when it comes to north korea or the trade deficit. settlement,g some also contribute to the downside picture we are seeing korea
japan leading -- seeing. japan leading losses. sophie: the weekend cannot come soon enough for asian traders. the dollar is selling on u.s. tax refund concerns. the nikkei, 1% after a wild swing. a wake-up call after the incredible gains we have seen. japanese stocks remain in overbought territory on the relative strength index. coasterlize the roller ride, check this out. you can see the spike in volatility for the nikkei. surging to april highs. today's swings are looking steady. is question remains, if this a long overdue correction. for now, at least, the risk is spilling over into the rest of asia. firstspi heading for the
loss. the index on its best annual performance since 2012, singaporean equities during any most cash. lou chip banks. it leading that rally in singapore, accounting for almost 40%. aussie shares, halting a three-day rise in the aussie dollar. 0.1%, recovering from the drop triggered by the rba trimming its inflation forecast. check out the ringgit. around theng 420 mark. nomura interprets this as a possible signal for a rate hike in malaysia in 2018. a quick word on oil, we are seeing it slightly softer.
as the saudi political upheaval counters concerns of rising u.s. output. this would be the longest line of weekly gains since 2016. tech shares, on the radar to . softer than reported income for the third quarter. htc, wider than expected. rishaad: thanks for that. first word news, we will turn it over to sydney. >> thank you. saudi arabia planning to cut oil exports to all the regions next month. press on withs efforts to clear the global glut. the minister says shipments will barrels a day. deliveries to the u.s. will
decrease by 10% in december. told wealthy people in saudi arabia are moving assets abroad to escape the anticorruption drive. we are told investors are liquidating holdings and some talking to banks about moving their wealth overseas. saudi authorities show investigations show $100 billion has gone missing through corruption. senate republicans released their plan of a tax cut plan corporate lower the rate to 20%. key provisions include retaining seven income tax brackets, but the rates would change slightly. the full text of the bill was not initially available, but was outlined in a memo to gop senators. economy is in the best shape in 20 years or so.
expansion is increasingly balanced and robust, but more structural reforms are needed to build defenses against crises. he is taking says a bleak view. >> that would be a very personal view. encouraged by the way the economy continues to grow. the soft nature indicates growth could be stronger. that would not surprise me. >> global news, 24 hours a day, powered by 2700 journalists and analysts. i am paul allen. this is bloomberg. president trump continuing a trip through asia, heading to the apec summit. first, our chief north asia correspondent is back. having a look at how the trip is going.
$250 billion worth of deals here. cynics saying, most of them were old and some of them are mo u's >> as well. with the boeing one -- as well. >> with the boeing one, many of these are done before state visits. there were $253 billion total worth of agreements. let's put it that way, instead of deals. they were signed or committed to buy the chinese and the u.s.. it plays well for donald trump as the dealmaker. was it all for show? 15 agreements were unveiled yesterday. another 9 billion wednesday, with commerce secretary wilbur ross. shale, gas, and chemicals deal with west virginia.
also, the big joint venture in alaska with cytotec. $11 million in long-term supplies with another company. also, turbines with ge. next-generation nuclear reactors westinghouse. most of them were nonbinding agreements that could take years to fulfill. andaad: you were in seoul tokyo. you could see the pop and ceremony. a lot of people saying, could he be line and by the way he was treated? -- blind-sided by the way he was treated? >> donald was flattered to the and degree. -- nth degree. praiseshed him with and pomp and ceremony. instead of having to get down to the nitty-gritty.
xi did not make any pledges on north korea and did not commit with actual contracts, sign contracts. withad: contrast that tokyu lanand seoul. >> tokyo was easy. city $9to draw down the billion trade deficit the u.s. $69 billionan -- trade deficit the u.s. has with japan. korea, president moon did not necessarily address this. instead, focusing on things that play to his constituency, the threat from north korea. china, calling him out about it. was there any real progress? agreements or anything that was done on that front? even with japan and south korea?
japan did make one move. they said they were going to increase the unilateral sanctions by freezing the assets of 35 north koreans. wanted moreea, they reassurances they will be there, by their side, if push comes to shove. also, we will not necessarily go to war. he said, we are open to dialogue. with china, no new commitments from the chinese, at least not made publicly. reaffirming his commitment the existing security council resolutions. nothing dramatic such as oil exports. cutting off north korean economy. mixed bag when a it comes to the takeaways donald trump leaves with. thank you so much.
highs, although a little bit of a lapse. what are you feeling? haslinda: seems to be more optimism compared to a year ago. trade, coming along at 3.5%. not bad but not good enough. oecd, they at the will tell you trade needs to go at double the pace. let's get some perspective from mark. up feet. food is there is a sense we are working a new paradigm. with the u.s. pulling back from the global agreements, tending to deal in a bilateral way. at the rest of the world is getting on with it. speeches, tppe
continuing, other nations realize it is a new environment. nonetheless, they will need to work through it. working in a new way. be subainly is going to optimal without the biggest economy being an active participant. but that does not mean trade stalls. it is not just about manufactured goods. it is about multilateral agreements. intellectual property rights across borders. that is where this region is going to focus on getting the productivity, the economy that is required. particularly those economies emerging. haslinda: high expectations when it comes to trump's speech. how closely is the market watching? mark: i don't want to say it is a nonevent.
haslinda: you can say that. mark: enthusiastic with the visit. a issue of damage limitation. everybody will be relieved if there are no unexpected out bursts, new issues about sanctions. they tread very carefully. haslinda: if you track trump tweets, he has tweeted more than eight times -- he says he should be credited with the market rally. >> politicians always take credit for a good market rally. we did see that. election, itce the
does not stack up that favorably among the first year of presidential terms. haidi: he was -- haslinda: he was referring to the first hundred days. mark: that was exceptional. that trade has reversed. right through the market. haslinda: we are seeing a nine-year bull run. some kind of crash, something. mark: we are looking at an environment where the central banks will be pulling back. dealing with the unwinding of their overextended balance sheet. equal,er things being corporate earnings have been driving the market enthusiasm, particularly in this region. 20 17 withe into
high expectations. been expectations have adjusted upwards. the market has not been disappointed. we have seen a good environment. low inflation. corporate profits. in the u.s., where you have financial engineering, that is somewhat of a concern. are a concern. a lot of that chief money will start to evaporate. supported share prices through share buybacks. a lot of that activity will desist. we will be looking closely and trying to eke out a value. you must be watching the vix. it touched below 10. you must be concerned.
mark: i think what you are seeing are a number of credit trades. if there is something unexpected. there will be a lot of investors on the same side of those. that is where we come in and provide stability in the market. looking for value as markets do lose momentum. haslinda: has there been a shift? we know billions of dollars have moved to the side of the world. will it stay that way? >> it has been a great year for emerging markets. a lot of those have gone into etf's and passive investments. in previous cycles, you would have seen almost a feeding frenzy. you have not seen it but tremendous flows. they are staying put in the region and we believe they will continue to expand. haslinda: trends, what will they be? rates potentially
globally. moving away from equities. building their position on higher yields. it is really the long-term perspective we are focused on. rates are tight read we are watching that closely. watching sovereigns, high credit ratings. we see a fairly benign environment. we have got coordinated the growth globally. haslinda: there you have it, a perspective on the market. rishaad: let's have a look at some of the business flash headlines. twitter, a system of verifying user identity. criticism for verifying the account of the person credited with a white supremacist rally. some sought as a stamp of
approval for trolls, racists, and extremists. s it stillhiba say sees opportunities after the sale of its flash memory unit. it is increasing investment by 50%. underscoring how much of the value is wrapped up in something that is supposed to be sold. deal stilllion needs antitrust approval. boosting its stake in alibaba by 50%. a regulatory filing says the hedge fund at its shares. that makes them the second-largest u.s. equity holding. coming up, does though week of trading have a happy ending? this is bloomberg.
haidi: -- rishaad: counting down to the end of the session in hong kong. eight minutes away. by 0.2ng, falling back 5%. the futures contract suggesting more declines. watching, a strong start to the session for this company. starting its first day on the market, down about 2%, but that is nothing. share prices up in those days. tencent, the majority owner in itna literature, has decided will get its green shoe option ticked off. it is an allotment exercised by
thislobal coordinators of ipo. 22 million china literature shares. it dids tencent shares, have 60% there as well. beingn shoe option exercised. anything that tencent turn to gold.to i'm looking at technologies, one of the apple supplies. miniature electronic components to the likes of apple, also some of these chinese handset suppliers. preview of third-quarter earnings, a bit of decline when it comes to revenue growth. this is due to the delay for the fourth quarter of the iphone x. watching out for that, clearly.
a glorious day in hong kong as we get set for the last trading day. shenzhen and shanghai. time of it for the topix in particular, the nikkei in tokyo. huge volatility. some of that has new york session. to tax that was back cuts for corporate. meaningful fiscal reform in the u.s., prospects are dimming.
donald trump and another on saudi arabia. always something brewing in the background. we are taking a look at japan in particular, a wild, one day swing. carrying through to the u.s.. concerned about the timing, but also the shape of potential tax reform or tax cuts. donald trump still in asia. ng.is on his way to dana what i would see is a successful trip to beijing, $250 billion worth of agreements, if you will, or potential deals. questionable how many are binding. we are taking a look at this friday session, which leaves a lot to be desired.
not much exuberance with trump's dealmaking. large caps, down 0.2%. the hang seng is set to rise for a second week. to get a sense of the move we are looking at, we have seen it higher after hitting the low. 12% since then. include a technology company. pretty good rally for that mobile software firm. when it comes to the action today, on the decline. shares are snapping. onare keeping a close eye consumer stocks, giving that we ore waiting for alibaba t kick off.
the biggest shopping event of the year. it has not only drawn other e-commerce operators, but jack ma has a plan to include these. embraced market liberalization, they are planning to ease access to the banking sector. when it comes to earnings watch, we are watching retail. bloomberg intelligence expects third-quarter revenue growth likely slowed with other apple suppliers. it could look beyond the iphone x. taking a last look at what is going on. we are seeing consumer stops in hong kong. leadinglayers are gainers. that weree deals struck during the trump visit, petrochina was among them. $11 billion deal.
supportwhat is helping gains for the energy segment. think you very much. it is a wheels up for donald trump. let's go to first word news with paul allen. asia rolls on.of the white house has called -- other world leaders will be in da and there is speculation trump will meet president clinton. more than $250 billion worth of deals were announced. the headline was the borrowing deal. it is largelyold
for planes included in other orders since 2013. most of the deals are nonbinding which may take years to materialize. , known for guiding economic policy, seems destined to step into the spotlight. the technocrat is said to be the key aid. the newhas announced committee overseeing regulators originally led by the vice premier. however, he is set to retire. catalogratist lawmakers.- catalan prisonce heavy sentences if convicted of rebellion and sedation. the court has already ruled illegal the ousted
parliament possible to declare the region independent. i am paul allen. this is bloomberg. haidi: thank you. bad news for noble group. that stock, down almost 90%, off by about 7%. commodities trading, houses shing again to survive career losses above 3 billion for the year. let's get it over to james paul from singapore. we have been watching for a couple years whether this company is going to earnings,hird-quarter what did we get that was new? out ofkey thing coming the earnings, as you mentioned, the losses, a lot of those were down to a reevaluation of the long-term contracts. the interesting thing, with the
shrinking cash available. it fell more than half to 340 million u.s. dollars. liquidity headroom. 40%, to 800ore than million. there is a genuine question over can generate enough to manage the debt. is there a strategy, a master plan, to deal with the situation? they are pursuing a very specific plan to manage it. announceds, they have a couple big ones. also, trying to turn around and make more money out of it.
they are in the process of deal.g a there is a lot of variation on how much that is going to raise. that is still uncertain how much money they are going to get. they want to sell more assets. that is a strategy at the moment. rishaad: i am going to start. what are the chances of this? what are people saying? >> one has to remember this company has $3.7 billion of outstanding debt. it has $380 million of notes coming next year. a bank loan of $1.1 billion in may. there are bonds coming due in 2020 and 2022.
jb bourdon, -- jpmorgan, have flagged the possibility of restructuring. they closeg sure that deal. the story goes from here. it continues. we will see what happens in 2018. you very much. let's take a look at saudi arabia as it plans to cut oil exports. to tourdom, attempting the global supply cut. -- glut. what effect is the saudi crackdown having on the oil market? >> you talking about the
political upheaval? rishaad: attaining of princes, others.nessmen and >> it seems like a good thing for the market. over 3%. threat the week, we have seen those gains have not been paid back. u.s. out put rose. it seems to be supporting the prices at the moment. -- future of those cuts what does that mean for market supply? looking forward to the vienna meeting at the end of the month? whereseems to be the case
it is declining slower than expected. we are getting to this meeting toward that end of the month. be consensuso there will be an extension. the only question at the moment is the duration, whether it is three months, six months, or nine months. what will happen there. whether the market will be -- itointed or the cuts will be a key meeting. it will be interesting to see how prices react. haidi: thank you for that. we are going to drill down into commodities later with the special on shell. we will be examining the history, the players, the al issues.t o that airs on saturday, 4:00 p.m. here in sydney. we will be speaking to the head ec one china's leading synt
rishaad: this is "bloomberg markets asia are called -- asia are pro- .: haidi: better prices signaling the turnaround is gaining traction. adjusted profit, $1.42 per share. that is better than the average. -- hertz ceowarned warned earnings will be dragged. rishaad: macy's is optimistic about christmas. shares up the most in more than a year, the company reaffirming
its for your guidance. same-store sales fell more than anticipated, but macy's says e-commerce and the loyalty program is fueling sales. rishaad: -- tracy: -- there will be an investment in a crane company in singapore. the potential investment shows they are still trying to make money from high risk, high return private equity. the u.k. treasuries can from the government agreed to a $2 billion loan guarantee for saudi aramco. critics say it is an affront to the idea of free market. main financial
regulator is under fire for proposing relaxed rules to lower aramco to london. head says the company needs a credit company. the ceo says that is because the growth potential of china's financial services, that sector is huge. >> in the coming decades, chinese investors will become more long-term oriented. they will start to understand and appreciate the importance of asset allocation. creditease is doing a lot of investment education at this time. >> how do you think you will be able to read thp the benefits of that? we utilize technology.
for example, investors can learn complex things like asset allocation. through a 3-5-minute video. finance can be very complicated for people to understand. once they understand the concepts, they can change their mindset. we give them a lot of help. growth in thisus business, 50-100%. haslinda: the expectations of phenomenal growth, is there need for a credit scoring system in china? >> very much necessary. when we talk about china, fintech, online lending. market place lending. credit bureau infrastructure. that is where we can learn from the u.s..
from our counterparts in the u.s. where there is a more established credit bureau infrastructure. in china, more and more marketplace lenders come to the space to be potentially over borrowing. how to avoid that. we need to have data sharing, information sharing to prevent hours from over borrowing -- borrowers from over borrowing? g. haslinda: what is your assessment of the risk in china now? household, consumer is still relatively low. for market leaders, like establishedwe have credit risk management systems in the past decade. we utilize big data technology
to assess consumer and the small business credit worthiness. on the other hand, without credit bureau infrastructure, the cost associated with risk management is high. i very much hope that in the coming 2-3 years, we will be that creditblish bureau infrastructure. expectationsot of china will further open up its financial industry. you envision greater competition for your business? >> i believe opening up is happening. there will be more and more collaboration, or competition, between chinese financial services institutions, fintech andanies, and their u.s.
from other parts of the world peers. on the other hand, i believe there is like more cooperation. learning from each other than competition. the market is huge. for example, we talked about creditina's infrastructure still being underdeveloped. we are talking about chinese investors, still been in the theess of understanding concepts of asset allocation. long-term investing. huge room for growth. even in the u.s., it is the most u.s.e corporate vc in the fintech space. we see a lot of growth area and the u.s. fintech industry, like payment. like market place lending. like insurance tax. wealth management. a lot of new growth areas. creditease founder.
for needed good weather orlando, disney world. instead, they got a hurricane. in terms of movies, they did not get anything. at sales, those were pretty bad. let's look at what is happening in terms of parks and resorts. this is the financial analysis. revenue actually beat on the dollars.4.6 billion year on year, up. that was where the good news ended. in terms of operating income, that was a miss. they expected a jump of 30%, but only got 6.5%. that is just the first lack of any magical spells disney was counting on. andher function, revenue operating income for studio entertainment. this was a miss both in terms of
revenue and operating income. third question, did you see a disney movie in the past quarter? really youered no, would have had to because there were no movies coming out. "e last one was made, guardians of the galaxy two." thor" butt, there is " further ahead, "star wars the next jedi." this definitely was a miss. finally, my last chart, also financial analysis, looking at the revenue growth on a percentage. the past three quarters in a row, it has been attracting. q4, continuing this trend. all in all, a perfect storm working against disney. back to you.
trouble in the magic kingdom. let's take a look at markets. we are seeing a subdued end to what has been at times a record-breaking week. tokyo, the start. a stark turnaround to the topics , sitting at the highest levels in a quarter of a century. a spike in volatility. down from about 1%. weaknesses.ng onto closer to home, in sydney, subdued trade. currently looking like it is holding off losses. a dip in the aussie dollar. quarterly statement, reiterating growth on track but inflation looking subdued. 76.79.ssie dollar is at singaporeet's look at
. there we go. a pretty good run. one of the best runs since 2011, if memory serves correctly. looking at the hong kong market, declines across the board. consumer sentiment, we are looking at that falling back in november. the highest levels since early 2004. all according to the university of michigan. they came out with this number. thailand foreign reserves. gdp in hong kong. industrial production out of india. donald trump is arriving in d anang and participating in his first apec summit. thes no longer just called asia-pacific, it is called the indo pacific. this is new state department
♪ american energy will power this region. we have become an energy exporter for the first time ever. oil at homee more than we have in 15 years. we produce more natural gas than nearlyfore, and everybody's energy bills are lower because of it. alix: these were the images that rocked the u.s., now from energy crisis to energy success. >> powered by innovation and technology, we are on the cut a true energy revolution. alix: and it is all thanks to shale. >> our base case