tv Charlie Rose Bloomberg November 22, 2017 6:00pm-7:00pm EST
♪ >> 7:00 a.m. in hong kong. we are live from bloomberg's asia headquarters. this is "daybreak asia." stocks fell, the dollars saw its biggest decline in eight months as the fed indicates reduced dovish in us. miness.ovish >> it is just after 6:00 p.m. in new york. jamie dimon can't wait to return to china and will pay more taxes if necessary.
♪ >> even though we saw stocks lower today, it seems like this run is still intact, particularly if tax reform moves forward by the end of this year. not so great for one particular asset, 8240, this chart i want to show you, gold. week,rd this earlier this if we get tax reform through and interest rates rise, which they look set to do, that was also pointing to the fed minutes, gold will suffer. we have seen gold slip from a one-year high in september. , it though it is choppy
looks like that down trend is in place. don't buy gold. >> some people would beg to differ thing gold has reached a bottom and you still have to find a decent return in this situation. given fed minutes and inflation coming you have to wonder how much higher these rates can move and the dollar move. >> exactly. if there is no inflation, or very little inflation, that is the same case for gold. let's pull up the chart for the u.s. markets and show you how we , particularly after those fed minutes. the dow, s&p, and nasdaq closing to the downside for the most part. lead in for us. we are seeing futures go nowhere. the dollar looking soft ahead of
thanksgiving. take a look at how things are faring in new zealand, up .1% on the index. for retail sales this morning, the smallest increase in two years thanks to automobiles and hospitality sectors. australia down, taking a breather this morning. pretty flat at the morning on the asx. it will be a quite open the next hour. japan is closed for labor thanksgiving. they are starting earlier. south korea a one hour delay. take a look at the dollar-yen, 111.23 right now, it's best day in six months with a 1% gain overnight for the yen. we are below the 112 handle, but it has been trading all around. when it comes to you
for that thanksgiving holiday. i hope you don't get stuck in holiday traffic tonight. >> i will be getting out of here as quick as possible. a closer look at the u.s. market, mixed. we have more. stocks down and the dollar as well. >> yes, what got lost in the mix of the down close is the nasdaq did hit a record. closing lower. it is the market going on positive investors take a break for the holiday with no trading on thursday. the big focus of the day was the fed signaling the december rate hike, dovish--ish is the way a lot of people on the street are taking it. green light, the and the december rate hike signaled here. let's go back into the market
snapshot. the dollar the klein the biggest in eight months, lowest level since october. some are saying that even though there is a great review on where the fed is going short-term, 20 18 is still a wildcard. 2018 is still a wildcard. keep an eye on that. of big movers, sandridge energy jumped and is moving big-time after hours on report that carl icahn has taken a 13% stake. tivo wins a big patent infringement case against comcast. at&t moving higher. we saw time warner moving higher despite the negative news for both companies on the justice on strong coming about antitrust and perhaps blocking the merger.
perhaps aimistic the positive judge will be hearing the case. that is the latest there. i also want to get to the latest on oil. wti also climbing on that inventory data. >> we are well into the high 50's now. we were hovering around that mark. the inventory data was more bullish than expected with some optimism going into the opec meetings. at westhere is a look texas intermediate, the new york-traded oil, entering contango. that is being viewed as bullish, at least locking us out of the range we had been in for some time. >> thank you. su keenan live from new york there. let's get to first word news with courtney collins. uber is facing at least three
investigations abroad and calls to testify before congress. in reaction to the covered up data breach. private watchdogs in italy, the of. are looking into a lack adequate security, while the federal trade commission in washington is being urged to state in. -- to weigh in. the chances of a new grand coalition in germany seem to be rising with senior members of the social democrats thinking they could name their price for rejoining chancellor merkel's team. others are adamantly opposed and prepared to face a new election. the chancellor has ruled out trying to form a minority government and indicated she would prefer to go back to the voter. inruption suspects held saudi arabia are said to be paying to avoid trial. bloomberg has been told that
some have signed agreements to transfer a portion of assets in exchange for freedom. some of then netted kingdom's wealthiest people, including members of the royal family. authorities say they may recover up to $100 billion in the purge. billionaire investor mark cuban has a question for president trump, asking if he knows how big an impact alibaba has had on the stock market. 5% of the increase in stock market by you, $250 billion come at 7.5 times are monthly trade gone towith china has one company. alibaba shares have almost tripled since its ipo. there has been no response from the white house. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you.
the latest minutes from the fed moved markets, renewed concern inflation will remain sluggish. there is a renewed whiting to divide.- widening kathleen hays has been looking through those minutes. it has been brewing all year. janet yellen now showing more concerned. you could even say finally worried about inflation because inflation has fallen farther from target. what is interesting about the november minutes is that it does show that even if we are worried about inflation and the future, they are still on board for the december rate hike, but the question is what happens next. this is chart 6897. white linetarget, a
headline inflation at 1.6%, but the core rate is 1.3%. it only hit the inflation target once in five years for one month. some of the key phrases. many ready to hike rates in the near term. december rate hike is done. march rate hike, pace of rates in question -- pace of rate hikes in question. the does say inflation must rise before they hike again, but they all agreed on a very important sentence and that is the fed will monitor inflation developments closely. that means they are putting more recognition on the failure of the inflation to reach its target and it will be an important deal as janet yellen leads the fed. last night, she to open the door to the dangers of low inflation although she still seems pretty be is is going to move higher, but she is at least expressing got out more than she has in the past. >> that was an interesting
comment, the most salient point out of the conversation. stay with us. cofounderbring in the and chairman of wayland global advisors p or good to have you here on this thanksgiving eve. -- global advisors. good to have you here on this thanksgiving he. i wanted to play a comment from a guest we had in the last hour who says there seems to be more debate on inflation and puts into doubt the interest rate hikes for the following year. on the aboutainly inflation. i think this signaling that the december rate rise will happened, but it would not surprise me if it is not unanimous. the big question is what happens in 2018. i'm not sure we will see enough inflation for the three rate as the plots are suggesting for 2018. >> are you doubtful too. >> this whole process is quite
surreal because the fomc is wedded to a very old policy mix in their minds. when they think about households, inflation, this whole fixation with the 2% inflation target, but what is really going on here is they are having to admit that inflation inquite high and it is assets, the stock market, real estate, and some very large asset classes moving very quickly. there was a misunderstanding over what quantitative easing would do. they thought it would impact statistical inflation, wages, that sort of thing. according to you, where should inflation effectively be? know is that they have managed to cause a bull market in global equities, not just the fed, the other central banks too, and they have
double-digit price increases for residential and multifamily housing, which is not helping the consumers at all. privately if you sit down and talk to people in the fed as i do occasionally, believe it or not, they admit there has been a reaction, but not the one they were looking for. >> the bond market, a lot of people, and the bond market represents people looking at the economy and saying there is no reason. the yield curve is flat. you want to raise long-term rates, then you will hurt people trying to buy a house they can't afford. the financial stability argument is interesting, but if the fed focuses on too much does it potentially create a problem by moving when they don't need to move? >> if you not going 175 miles per hour down the runway, you can't pull back on the stick. there is not that kind of demand for credit, and inflationary
consumer demand out there. what you have is a scarcity of assets, which is a different matter entirely, institutional investors who are still having a hard time finding the duration they want to put in their portfolios. >> do think the central banks are buying too much >>? they are continuing to buy. >> the fed should to the mortgage-backed portfolios as quickly as they can. we are down 30%. be selling 50-100 a month. until you do that, you can't interest price. they got this backwards. they went into qe after the drop in price. how do reverse that? you'd like to know the portfolio and see if the market can sustain any kind of price increase. what is this all about? it is about how much risk of the street is willing to support. if i am the fed and i see this bull market in the bonds, i should be taking advantage of
this. they want bullets for the next downturn. it should be get those securities into private hands in case we have buy them later. i think they got it wrong, innocently enough. the funny thing is that the bond market is the mechanism for policy, and they don't really understand it. it is striking to see them talking about inflation. talking about that yield curve kathleen just mentioned, i have a chart 7207. we are inching closer to that's zero line mark. how does chair yellen interpret this right now? is the fed willing to see her out the yield curve or an inverted one? >> i call this the yellen put. she is wedded to this narrative they have created about raising short-term rates. if they stick to that, you will have an inverted curve by next year.
in thefast it has moved past month. it has taken a lot of people by surprise. you raise a very important question. >> hang on as we will continue with you. chris whalen, wayland global advisors. we will be talking banking in a few moments and jamie dimon's rambunctious talk. plenty more ahead on "daybreak asia" as we head into black --day higher for friday-cyber monday spree, we talk about the state of retail 8:45 hong kong time. >> looking at the future of health care, the university of melbourne's david grade and explains how paralyzed patients could walk again. you don't want to miss that one. this is bloomberg. ♪
♪ this is "daybreak asia." and jamie dimon welcomes china's decision to relax the rules on foreign ownership and is eager to go and wide ranging comments at the economic club of chicago. he said he felt better about the banks treatment following the financial crisis and said he would never trust the government again. for a competitive tax system in the u.s. and if he has to pay more, so be it. >> we should get rid of carried interest, deferrals for hedge funds, and if you want to raise so bee comes -- my rate, it, but don't have an uncompetitive tax system in a competitive world. that is a mistake for america. whalens bring back chris
still with us. dimon.y fired up jamie the one line, he's willing to pay higher taxes to get a corporate tax rate of 20%. is he a lone wolf in this camp right now? >> there are a lot of responsible people on wall street who feel the same way. i am delighted to hear him talk about carried interest. is wrong for financial professionals to pretend they are taking risk when they are not. overall i have always liked jamie dimon's take on public policy. he is right about the crisis. the government's behavior was shameful. the way they strong the bondholders was wrong. they did the government of favor, but there you are. >> talking about how he once to get rid of carried interest in deferrals for hedge funds, which
the house and senate bill currently does not completely do, even despite the fact that king the campaign president trump said he wanted to drain the swamp so to speak, so do you think these loopholes will derail the tax reform getting done this year? >> it is a strange calculus in washington. you never know how and why anything happens because it is all done at the last minute. we have not had a budget for most major departments in the government for years, but they will have to buy enough votes to get them over the line. look at susan collins for example. it is unclear whether she will support the bill. ultimately they all want something because that is why the process take so long. >> who can be bought and who can't be bought? >> it is a negotiation, a commercial transaction. differentto go in a direction. there was news out of j.p.
morgan about them possibly considering setting up or brokerage business for bitcoin and allowing their institutional clients to access these futures that will be traded on the cme. jamie dimon on one hand thinks it's a bunch tulips, but on the other hand a brokerage business. >> that is what their customers want. there is a mass delusion abroad and in in the nation. this is a fraud decorated with technology. that is what bitcoin is. >> a fraud? >> i give you a legal tender dollar and you give me nothing. you give me a number. it is a gaming instrument at best. we have a lot of people fascinated by the technological aspects of this come also it is not connected to a government and subject to the kind of manipulation. it is a very interesting phenomenon. the government has had a
monopoly on money for 150 years in this country. bitcoin challenges that. >> you think this is a bubble that will burst? >> it is a fascinating social experiment. ,t will be extremely volatile putting it on balance sheets and buying it for customers. how are you going to value it? >> that there's a buyer, then there will be a seller. >> it is a collectible. it looks like a security, but all these ico's have had to pretend they? are charitable endeavors, so who knows i've put this next to elon musk and tesla. are stories of overtime and shows you how confused we are and how difficult it is. >> tesla has product. >> he will never make money in that industry. >> good to see you. >> happy thanksgiving. >> happy thanksgiving.
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berkshire hathaway is the biggest show holder just under 10%. >> the agreement to make films with sony has ended after one year. the collaboration ended after the poorly received in emoji movie. it now faces government scrutiny of overseas investments. sony has described the partnership open ended and an opportunity to highlight chinese elements in films. managingn sachs toshiba's emergency share sale. tohiba needs the money reverse negative equity and avoid being delisted. greenlight capital and third point are planning to invest. it almost equals the local goldman sachs unit entire profit for last year. >> bloomberg has been told chinese regulators have asked an bang insurance to lower its
>> sunny skies, looks pretty good on this thursday. inhave seen a one-hour delay south korea as students take their exams. difference --r i'm sure the kids just one a day off. wednesday in new york, markets have closed mixed, but there was some selling after the fomc minutes ahead of thanksgiving tomorrow. put theushing home to turkey in the oven. i'm betty liu in new york. >> i am it yvonne man in hong
kong. this is "daybreak asia." the latest fed minutes show many fomc members are ready to hike rates in the near term. that is being taken as a clear signal that december will go ahead as planned. the pace of hikes for 2018 is an open question. remains worried that it will take longer for inflation to reach of the 2% target and asset bubbles are concerned. zimbabwe's into room president promised a new unfolding democracy. he will be sworn in on friday and will be the ruling party candidate. he is a former spy chief and it is his sacking that led to the downfall of robert mugabe. unemployment is said to be above 90% in zimbabwe.
the spanish judge investigating the catalan separatist government says a she wants them grouped together in a single entity. the suspects were part of a complex conspiracy and the best solution is a combined investigation in state supreme court. observers say that increases the chances of the group being freed on bail ahead of regional elections in catalonia next month. the united nations hague tribunal has sentenced the former bosnian serbian commander to life in prison for genocide and crimes against humanity. that includes the massacre of a rate of 8000 muslim men and boys in 1995. europe's worst atrocity since world war ii, the verdict is the last for the tribunal, which has convicted 88 people for war crimes committed in the former yugoslavia. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.
>> thank you. things giving is just around the corner and japan is on the korean trading kicks off an hour later than usual. let's get the latest with sophie cameroon in. what is in store today? there is plenty more ingredients driving the rally at this stage in the cycle. taking a look at the currency space, we have a softer dollar. it is trading near an october low. the yen is holding near a nine week high. we do have gold giving up gains, but holding on to levels after
popping on inflation concerns. near little weakness, but two-year highs. oil producers and gold miners among the best performers. materials and energy stocks climbing with industrials. amazon prepares to launch in australia. on line travel player web jet has fallen to a january low. giveners are focus amazon's prepared entry into all strata. web jet was downgraded to neutral at credit suisse, but holdingse
increasing seven points. >> we will get the final numbers for the third quarter out of singapore and less than an hour. we saw that blowout number of week ago. it looks like it could be revised higher, so are we in for a policy shift? ablee economy looks to be to withstand rising global interest rates and gdp could top this could puto singapore's monetary authority on the path towards tightening. this is 1916 on the terminal. this shows you singapore's interest rate markets been pricing in the tightening for some time as the two-year swap continues to fall below u.s. rates, sending it to the lowest level since september. there are different views on when they could move. ig expects a move in april,
while another best cases for october. with monetary policy coming down to inflation developments, cpi do later today expected to tick higher, but as long this inflation holds below 2%, there might not be urgency for tightening. the stronger singapore and dollar has appreciated 5% over the past 12 months, and more appreciation is anticipated as indicated by the negative swap spreads. >> thank you so much. some of the things to watch in the market. philip hammond has knowledge the economic outlook is deteriorating. his budget confirms lower growth forecast for 2018. the chancellor also set out a number of policies promising to do more to encourage business investment in britain. the big headlines out of the chancellor's budget in
the 90 kingdom surrounded the housing sector. 44 billion pounds will be spent on housing over the next five years to try and address the lack of affordability in the housing market. a tax on housing transactions will be charged to first-time buyers up to a set value. we also got some new measures on brexit come a 3 million pound exited contingency fund is being set aside. all that is being overshadowed by a downgrade to expectations for the u.k. economy. at no point in the next four years are they expecting the u.k. economy will grow at more than 2%. mind, philip bymond with his hands tied his own party and lack of a mandate, brexit overrides all of this, hangs behind all of this
we heard in westminster on the subject of the budget. the big question is whether negotiations will move on at the heads of state meeting in december in brussels. we also move onto the future trading relationship, having self with the three priority issues, and that we don't yet know, so we wait to get more details over the weeks ahead. could there be another offer of more money on the table from the u.k.? switching gears now to china, the corporate want market is starting to feel the bite from the debt deleveraging campaign. yields on the top rated five-year notes rose to a three-year high. this is 1910. we have seen those yields and jumping 26 basis points since the start of the month. some analysts are saying yields will keep climbing and corporate defaults could reach record levels. let's bring in our chief asia correspondent to tell us more
about this and what the bond market is really signaling. is stress among the corporate spirit we have seen global bond yields spike. spread intoee it company barring come a five-year yields at a three-year high. we have one trillion in notes maturing. refinancing more expensive then anticipated will lead to defaults and pressure some parts of the economy to fail. allowing defaults is not a bad thing. it puts the china sovereign bond market on level with its peers. , these yields are signaling higher borrowing costs that will have some impact on their own profit and margins.
>> they certainly need some type of reality check given they have not seen any losses for three years. deleveragingthis campaign spread from shadow banking, asset management asducts, to micro-lenders well. >> it seems to be a concerted effort by the authorities. we know the authorities were serious about debt and flagged risks associated with the asset management sector, but now they are really moving on it. pboc governorhe with a warning during the party congress, and now the asset management crackdown. definitelyent is putting their foot down to rein in risks around the edges, but that they question is how far will they go. >> what does this mean? were not only talking about
china, but the world. china it itself is forecast to contribute more than 30% of global growth this year according to the imf. the chinese authorities are going hard on the deleveraging campaign for taking risk out of the system, that would apply in a slower economy. feeling that the authorities while they go hard on certain areas will ensure the macro settings are stable and growth remains on track. world, that of the probably means that even if china is slowing, it should not fall off a cliff or hit a hard landing. what is interesting here and what goldman sachs said is that the deleveraging campaign in china is one of the most important issues for the world economy in the year ahead in
i am yvonne man in hong kong. >> i am betty liu in new york. we have focused all week on entrepreneurs planning to connect nine cities in guangzhou province to create a hub of innovation and technology rivaling silicon valley. tom mackenzie has been following this and is now in beijing. you have been speaking to the region's largest drugmaker. so tell us where the opportunities are for this company. >> this is guangzhou pharmaceuticals, one of the largest drug companies in china aed in guangzhou and they see number of opportunities based around key areas. they are heavily automating their factories and production lines. they have teamed up with madea group and are starting to put factories to in
automate production of drugs. they are also teaming up with a company around artificial intelligence. the other area they are excited about is china's demographics. the large numbers of people now with cancer and diabetes, a strange thing to be excited about, but that does provide some opportunities. there is a push by china's policy makers to allow some drug companies to get involved in the private sector around things like private health care, hospitals, and nursing homes. pharma once to create this ecosystem to create a disconnected system of health care products. that is something i started by asking the chairman of the company about. take a listen. the sales of guangzhou from a suitable group are said to exceed 100 billion yuan. 150 billion yuan by 2020.
as an industry with great importance, china's health care sector shows huge growth potential. we must seize this opportunity to cash in from a robust market in supporting policies. our goal is to join the fortune 500 within three years. one issue is the bottlenecks when it comes to approvals for new drugs. that chinese customers and patients don't have access to drugs that many people in other parts of the world do. how much of an issue is this? there has been extensive reform in the drug approving system. the approved process has been sped up under policies. the amount of approvals on new drugs we received in the first three quarters this year is the same as the past three years combined. will bring more new drugs to
the market and give consumers more options. the government has raised the regulation standard, but on the other hand further open the market. the market has been playing the dominant role in setting drug prices. as result, the retail price limit has been scrapped. another area of interest increasingly is private hospitals, something that is being supported by beijing. forhis an area of focus you. how much of an opportunity is there? >> china is now facing an aging population and a severe shortage of medical resources. based on the social reality, guangzhou pharmaceutical has made up its mind to combine and an ecosystem that combines facilities providing medical and health services and open special hospitals, maternity centers, rehabilitation clubs come and
nursing homes to meet the ever-growing demands. the chairman of guangzhou pharmaceutical laying out an ambitious plan there. they health care sector in china has not caught up with a lot of the development you have seen across china in terms of the hospital's still state owned, including guangzhou, and there has been this backlog in terms of drug approvals in that interview. that is starting to speed up and this focus on provision of private health care in partnership with the state is something that is increasingly a key area that policy makers in beijing are looking at. many investors and companies see health care as a serious opportunity now in china. >> what about globally? pharma haveangzhou in terms of plans on the global stage? >> domestically policymakers are starting to lower the barriers
for foreign pharmaceutical companies to enter china, which will be potentially good news. face greatermay competition. he talked about a partnership they were trying to line up with an israeli company that specializes in generic drugs. they were going to try to work with them to supply some of those generics into the chinese market, so that is the domestic side of it. on the international front, he told us that he was looking to buy an indonesian listed company. he would not give us the name, but said he was looking to build up factories and production lines in southeast asia as part of that, so southeast asia is a key area for them, but primarily it is about building this ecosystem the messed agree and fending off competition from foreign drugmakers in the but does have his eye on international expansion.
>> great interview there. , we discuss the future of health care with david great grayden, the innovation that could help paralyzed people move again. >> you can get around a for that story and many more in today's edition of daybreak at dayb on your terminal and on the bloomberg mobile app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪
follow or like by year end that are connected to russia. it will let users see if they were affected by postings from the internet research agency that created divisive posts from fake accounts. google and twitter should also do the same a committee member says. weighing whether to let clients bit on the prices of bitcoin fire futures contracts. j.p. morgan boss jamie dimon has called bitcoin a fraud and buyer stupid, but the bank is open-minded on digital currencies. aston martin says its new vantage has sold out almost all of its production run next year days after the model went on sale. 80% of private buyers offer the chance to order have done so in the first deliveries are expected in spring.
it is central to aston martin's effort to establish profitability ahead of an ipo. delivery of 48 new planes through 2022 and has multiple aircraft from airbus. says growth increasing capacity climbed. fuel hedging ratio is climbing next year. >> tomorrow is thanksgiving in the u.s.. an interesting story on the bloomberg. how you each are turkey depends on where you live. three main ways to cook your turkey, frying, roasting, or smoking. if i was running for public office, i would be considered disconnected from the majority
of americans. i rest my turkey. i have never even thought about smoking it, but a majority of americans smoked turkeys. >> what is the difference? i have always wanted to try fried as well. i have seen the videos. it is quite scary. i always want to see if it is like fried chicken. sense the fried because it is all and states that are in warm weather. he certainly don't want to be frying it in your kitchen, putting a 20 pound turkey in a big pot in your kitchen. i might try it next year. >> i am hungry already. we are missing out in hong kong. some places serve turkey dinners, but it's not the same which you have over there. plenty more to come. the market open as well, so going given the japan is closed opens one hour later
given students will take entrance exams today for college. lot of activity here in asia as well. >> looking forward, our next to guests, in this environment, it has been hard for macro hedge funds to make any money, but we have to get macro hedge fund , who has thet lee world's best performing macro , which is pretty incredible given these macro funds have done nothing more than pretty much flat this year. this is bloomberg. ♪
♪ are live from bloomberg's asian headquarters. welcome to "daybreak asia." the fred admitted policymakers remain concern about stubbornly low inflation. fomc is divided on strategy for the coming years. welcome to bloomberg's global headquarters. just after 7:00 p.m. on wednesday. jamie dimon cannot wait to return to china and said they will take more taxes in the u.s. if necessary. is the pboc a poison challenge? they face a string of headaches, not least of which