tv Charlie Rose Bloomberg November 22, 2017 10:00pm-11:00pm EST
and how a tax break could delhihings much worse in on it comes to smog. the dollar has been a massive downtrend this week. wcrs, just every extended currency has gained against the -- with thewhich exception of the turkish lira. that means it has been a down dollars story so far. checking market, seen in go the function of bloomberg.
lateruld join us a little talk about all of the moves. here.bout the industries long first game for rookie record. since 1988, that was the most it started recording so we are seeing that overall, but less conviction because you are seeing red across the board. the 31,600 mark is the record high in 2007. we are waiting to see at what point we will breach that. i want to talk about some chinese automakers because that
is really moving. take a look right now worried notable here because credit these are both outperform. in fact, they have ranked automakers. large brands will -- nextut or next year year. yearll likely out of next -- will likely outperform next year. right now, it is a little bit off. with a littlee bit of next sentiment.
>> thank you so much. let's give it over to first word news. i always are resident blue home from south africa, promising a new democracy. he will be sworn in right a in will be the ruling candidate before presidential candidate -- presidential elections next year. unemployment is said to be above 90%. jpmorgan boss welcome china's decision to relax the rules on or and ownership instead he is raring to go. he also said he felt that are about the banks treatment and said he would never trust the government again.
he said if he has to pay more, then so be it. up interest and had lunch -- hedge fund. whatever you do, don't have an uncompetitive tax system in a very competitive world. that is the mistake. threes facing at least investigations abroad and is called to testify in front of congress. u.k. are looking into what they call an obvious lack of adequate security while the federal trade commission is being urge to step in. corruption suspects held in saudi arabia sets and avoiding file.
bloomberg several of them signed agreement in exchange for freedom. will authorities say may recover -- wo $100 million >> this is bloomberg. >> let's turn to the fx market bring out. be one is continuing to defy expectations. morehas been winning in ways than one. over to singapore now. patricia standing by. thettle bit of pressure on dollar. hike --sing the rate guessing the rate hikes anyway.
>> that is a question out there and traders have focused a lot on the flattening of the treasury curve. quite nervous this could be a sign of recession. the two by 10 curve is now the lattice since 2008. she was joined by the fed , but we haveimate -- it iser trading is quite early to say if there is a change in sentiment. we have seen that in the market. fact, the chance of a fed hike is about 35%.
it doesn't look like the rate market. this is what you call a temporarily -- temporary thanksgiving correction. >> the weak u.s. dollar is certainly under pending what we are seeing in the grave. a lot of analysts did not see that. think you are talking about the support levels there bouncing around. in the south on korean space? what is it so hot -- why is it so hot? quite that is a good question out there. range from the fact there is quite a bit of unwinding from
those who are not in. quite a bit of influence over the bond as well as we saw in the rest of the region. mostly, any -- they have warned that they are monitoring the market, but that does not seem to be as aggressive as they would have expected to read you're right that analyst have taken out almost all of them. a two-yearady at high this morning. authorities get a little more concerned because this morning when they gave, the markets reacted and it stabilized. gore are still five weeks to
so we'll have to see if this actually continues for authorities could step in. -- his time next week >> let me pivot to malaysia. a lot of people did not see this coming. probably the was bank of malaysia mentioned they policy. you monetary of course, the complicated story of elections involved, that is not quite a popular move to hike rates just the or an election
calling get it is calling when the election is going to the. coming intoactually the bond market and into the stock market as well. calling forreally malaysia to be among the ones to raise interest rates after the feds. >> you can follow more on this story and all the days trading on our live blog. can get a market run down with just one click. his commentary, analysis and the rest bloomberg. >> we will talk more about markets later on. we will be asking you about all of these positive earnings reports and also, stronger currencies. feelso, why the filthiest
next year just days after the model went on sale. the first deliveries are expected in the spring. ahead vantage is central of a central ipo. ontoe region clinging record highs. asianxt yes believe equities will perform. equities have done extremely well. my question is how much further than the market allocate? is there still unused money out there? >> equities have done well for a couple of reasons. it is also driven by a strong earnings cycle. the kind of companies you want to be invested in -- if you take
a step back, the one risk is that market is too fast. underpinned and i think there is a combination of both. has always that continues, we can see people wanting to allocate. >> people have been punished and waiting to see if there's going to be a dip. risk?s the we not only have jim lyrical concerns, but also you can't discount what is going to happen in the fed. >> that is right.
it may look different in three to six months time. what is more important is focusing on the data and the growth. i expect that continue the next quarter. stronge taking a really holiday up, so that suggest that the economy is in well. some of those effects start stabilize so -- gradual, but happening over a few months. >> that is a narrative that has been around. inflation is going to come to her. do you start positioning for it? it is probably cheaper. certain people have been talking about it for months.
there's a difference between a steady kind of inflation and a pass that really hillary. what you do is you buy sectors which benefit from rising prices companies that have contracts and then you buy inflation protection. i want to touch back on those because it issues has been quite here on the eastern. >> what about north korea? people havesks that basically ignored right now? >> i think trump's trip to china was quite successful. seems to be a convergence on how to handle north korea going forward.
installing of the relationship to then a desire to agree sanctions on north korea so the --ean peninsula unfortunately, there's another part in the middle east that this battle is a growing concern. if you look at what is happening and who is participating in the missiles and you look at what is going on, there are concerns that they have consolidated power. >> does that affect the momentum? let's turn the table here. case that has been in in a violations
basis.h on the mobile that is the valuations close to again, the central bank what to watch for here. >> we have seen money growth, credit growth, very fast over the last couple of years. 11%s now slowed to about -- about 11%. >> let's take into that a little deeper. martin franklin stays with us or it plenty more to discuss year. this is bloomberg.
♪ this is bloomberg markets asia. mark, want to talk about your or polio. one of the points you made his companies with multi-year growth. there are some names that satisfy both. how do i differentiate the two? i think it can be defined. it could be risk. generally speaking, you want to have the full part of your portfolio exposed. then you have to have a
violation of how much growth is price today. be energy, and very much the devil being in the detail. what is the biggest team in driving your investment strategy today? >> there is a couple of things. financials.w of on the credit side, we look at the u.s. banks. ms. an increasingly present -- pragmatic approach. there's less of a need to issue debt. that is one of the things. u.s. banks play that.
there's a second thing, industrials. some of the things we like our business models so transportation, happy delivery services group we think the top line growth should really surprised. >> you mentioned the valuation discipline. have any of your internal red been takes over the last pickedths or so -- been over the last few months or so? as i said earlier, overall market is supported by the fact we have easy liquidity conditions, but certainly in marketd there are position -- markets there are positions that are overvalued.
>> and quickly, u.s. equities --do tax reforms matter to you? -- the reason i think u.s. banks are interesting are now is it you look at the shares prices, i don't believe relative to earnings, they are pricing in any form. it is a larger discount for current valuation. taxa from getting past it could add 5% to 8% extra. >> interesting. especially people are thinking about it right now. thank you so much for that.
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>> this is bloomberg markets: asia. we have some breaking news across the bloomberg terminal. broadcomome called -- breaking up qualcomm deal according to the new york post. sticking points will we will price follow this and get you more as soon as we get them across the bloomberg terminal. the other thing here is the feel-good factor.
singapore company will grow. bloomberg --reat that is the rate bloomberg charges. philippines, malaysia, and singapore. >> it basically is evidence of what were talking about in the global macro picture. earnings are good as a result. people are feeling robust about buying, so for a lot of these export driven economy's here in bolsterat has helped their gdp as well, especially out of singapore. marketst more on the with sophie.
a little bit of a different picture today than yesterday, for sure. >> we do have a mixed session, given that japan is off-line and thanksgiving is sending u.s. traders packing for the holidays. southeast asian stocks are bright spot on a tepid trading day. continuing to climb further above 30,000. chinese stocks on the mainland are getting better. consumer i.t. in health care shares dropping over 2% in shanghai. stocks mixed while bonds are climbing and the dollar is steady after tumbling on dovish fed minutes. interbank rates have slid in hong kong after jumping on wednesday. the winning streak continued fueled by hawkish central banks
trading at a 14 month high. it helped the malaysian state oil giant deliver stronger third quarter earnings. for the yen, it has been a morning upswings, the one is a little changed at a two-year high. officials more investors they are underestimating the government's currency markets. gdp was aquarter meat. chinese material firms are killing it today. the china bank heading for the best close since march in hong kong. china amid reports that soaringook cosmetics
insult group that affect the korean shares, closing the gap spih the coffee 200 -- ko 200. >> here's the first word news and were talking the fed minutes. >> the latest fed minutes show members ready to hike rates in the near term. that's been taken is a clear signal that december is the plan, barring any late economic shop. is an open7 question. back.price bubbles are even hague tribunal has mladic to life in prison for crimes against humidity and genocide, for
massacre in 1995, europe's worst atrocity since 1992. the verdict is the last for the convicted 89h has people for war crimes committed in the former yugoslavia. please have stormed at attention center in new guinea to forcibly remove about 400 asylum seekers who have refused to leave despite australia cutting off food and water three weeks ago, telling the group to move to new residential facility. this on seeger say they are not safe in the community and the u.n. says the new center is unfinished. has a question for president trump, asking if he knows how big an impact alibaba has had on the stock market. he tweeted, 5% of the increase in stock market value and 7.5 times are monthly trade deficit with china has gone to one chinese company. alibaba shares have almost tripled to about $190 since the
2014 ipo. there has been no response from the white house. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm stephen engle. this is bloomberg. singapore has raised its growth forecast for the year after a third order gdp beat estimates. haslinda amin right now. and encouraging performance. >> strong quarter and the strongest in more than three years. 6.3%. an estimate of you're on year, beating 5% estimates. outperforming,d services up 3%. you get a sense that the recovery is broad-based and enough for the government to raise its growth forecast for the year two as much as 3.5%. sayinga hint of that
growth for the year might be at the top end of forecast. david alluded to this. the singapore economy relies on the health of the global economy. it's highly export dependent, rising a lift from global trade. we saw evidence of that this morning. is set to pick up next year. so interesting to note that the whole region is posting strong growth on the back of this. from malaysia and thailand, all reporting the strongest growth in years. against the backdrop of tightening by the fed. most of it has boosted infrastructure spending, counting on the young and growing population to continue to build on that growth. david: the question surrounds inflation and we get the latest read out of singapore, just to 83 minutes and 13
seconds. what are we expecting out of singapore? issue,a: potential inflation expected to come in at 1.5% year on year. it has been well below the historical average. there could be price pressures if the economy picks up stronger than expected. when we spoke to the federal bank chief just last month he sounded a note of caution, saying inflation will climb at some point. it has to be forward-looking. zero appreciation, given that inflation has been muted. but that may change. there are expectations out there that a slight appreciation in the exchange rate may happen sometime next year. haslinda amin thank you
so much for that. from singapore, we go to india. the biggest tax overhaul in decades is making use of a highly polluting fuel. it's more financially appealing, while pushing up levees tied to cleaner natural gas. david: are anyone who breeds, for that matter. reporting,d trading what is the problem, and help us understand what this has to do with attacks reform that's being put through. for those living in the capital, they are struggling with extremely poor quality of air. the new tax regime that was rolled out in july is so lopsided in favor of polluting
, like the one that is 60% imported into the country. this is discouraging to industries to use better, cleaner fuel at natural gas compared to [indiscernible] this is at odds with the government's initiative to clean up india. how bad is the problem of pollution? level, to go back ofone study, india is 14 out 30 most polluted countries in the world. it is extremely that. last month we had a week where schools were shut and people
could not go to offices, the air was so bad in the capital. so just to recap, and maybe for our viewers are just honest, were talking about petroleum coke and what the government is doing by having a tax reform in place encouraging by making it cheaper. can we compare how bad it is compared to others, just for those who may have missed it? coke is under the new tax regime and there's a new income tax of 18% whereas natural gas is not included. which means that it is subject to various levees across the state which can increase the prices like almost 30% for natural gas. so obviously because of the disparity, people are discouraged from using cleaner fuels like natural gas and they offer cheaper substitutes like petco. petcoke.
angie: are they doing anything to reverse it? what has the backlash been among the populist? distributors, there is a council that looks at all these issues. in coming days they may includinge subject of natural gas that will make it more competitive for fuels like petcoke and coal that will give a level playing fuel -- playing field for natural gas. coming up on the program -- look at pharma plans to
cities with hong kong and macau to create a hub of innovation and technology rivaling silicon valley. david: our china correspondent joins us now from beijing. you been speaking with the head of one of china's largest pharma companies. where do they see opportunities? >> a major player in the i wasceutical sector, speaking to the chairman about the changing strategy. the opportunity around a number of areas, one is automation and how they supply and dispense their drugs. and china's demographics, the aging population, and as result of that, there's a push by policymakers for more joint ventures around hospital building. those are the areas he sees as the opportunities. his company is
something of a poster child in terms of what's going on in the greater bay area. he's teamed up with a private company to use their robotics to help with the atomization of their production lines and dispensing. they want to see robo dispensers of some of their drugs. he wants to create an ecosystem, he said. also telling hospitals and nursing homes as well. started the conversation by asking about his prediction for sales. take a listen. >> the cells are set to exceed 100 billion yuan by the end of the year. by 2020, our sales are expected to reach 150 billion yuan. china's health care sector shows huge growth potential. we must seize this opportunity to cash in from the robust market and government supporting policies. our goal is to join the club of fortune global 500 in three years.
>> one issue is the bottlenecks when it comes to approvals for new drugs. it means 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? >> we carried out extensive reform in approving. sped upess has been under new policies. the amount of approvals received in the first three quarters this year is the same as the past three years combined. there are big drives to put more new drugs on the market and give consumers more options. the government has on one had raised the regulation standard, but on the other hand, further open up the market. in these years, the market has been playing the dominant role in setting drug prices. as a result, the retail price limit has been down. >> another area of interest,
increasingly, is private hospitals, and again, this is something being thwarted by beijing. this is an area of focus for you and how much of an opportunity is that? >> china is facing an aging population and a severe shortage of medical resources. ,ased on the social reality guangzhou pharmaceutical has made up its mind to build up a health care ecosystem that ,ombines drug manufacturing pharmacy retail chains and facilities providing medical and health services. we have rehabilitation clubs and nursing homes to meet the ever-growing demand. this,the broader story is they are overburdened, chronically chaotic often, and there is a need for this sector to be transformed and they want to play a part in that.
angie: what about global aspirations for wenzhou pharmaceutical? what are their plans for the global stage? >> they said they were looking to buy an indonesian drug company and they would not name it. help ine hoping to get expansion in southeast asia. that's part of their plan internationally. domestically they are looking at expanding by teaming up with an israeli company that produced generic drugs. they want to be able to supply some of those israeli generic drugs into the chinese market. there are discussions around what happening in terms of lowering the trade barriers that could pose a competitive challenge, but the chairman says he is not concerned about that. he thinks they will be able to fend them off. what the landscape is changing and providing rich opportunities for both foreign and domestic
angie: this is bloomberg markets asia. reportedlyon will begin selling products in australia on thursday afternoon local time. loosely, it's a soft launch, going live in time for black friday. angie: our consumer analyst joins us now. we think about australia e-commerce, you would assume there would be a lot more penetration in that market. fact they are way behind the u.s. and the u.k.. number one, why is that? you would think that in a country that is so large, it would be a good thing for australians. >> it is driven by lack of investment in e-commerce. you look at all the other western markets you mentioned, in those markets you have a few
dominant large platforms that are driving innovation and investing in that area. you compare that to australia, it doesn't really exist. that is one issue. because of that, a lot of e-commercetailers -- is a bit of a back burner issue for them. get bighey are about to footed, big time, with amazon. david: does that change anything? >> it will force investment to come through. probably turbocharged because of that. the other issue that arose is it will force australian retailers to innovate. because it's a better shopping experience. off-line retail needs to create
a bit of shopping experience -- a better shopping experience. from the perspective of whether they need it closed source or reduce the average store sizes. are retailer and looking at amazon, you are extremely nervous, especially if you didn't have a strategy in place. number two, you will probably start mining for information. what do you think the retailers will look for? >> what categories they are given ango into, understanding of where they will potentially go to next. secondly, the amazon prime program, where consumers pay an upfront fee and get free delivery and a bunch of other goodies such as movies, books, and all these other things. if they were to introduce that, that would be a game changer to the australian environment and would force retailers to innovate.
angie: do have friends and family in australia? >> yes. angie: what is the on the street buzz from the consumer level? >> they are excited, but especially in the financial services industry, they feel like it will be a bit of a letdown. sure whether they will actually deliver. they had better deliver. david: thank you so much for coming. have a look at this, online shopping took often climb sky high yesterday. just in case your christmas tree is this and fits to jumbo jetliners, this is an option for you.
a chinese logistics company bought the plane. value this is the highest but by nofor taobao, means is it the most expensive in history. that means a super got that went on sale and ebay that went for $85 million, is proof that you can buy almost anything online. david: i wonder how they deliver that plane. , tracyt person coming up is standing by. was that you? >> i buy all my yachts in dubai at the marina and i buy my planes at the dubai air show. that me tell you what we have coming up, david fernandez is barclays chief asia-pacific economist. there's so much confusion about that inflation outlook, we will
see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. washington. you are watching bloomberg technology. congressional members from both sides of the aisle will meet with president trump to head off the looming government shutdown. funding ends december 8 and with congress so focused on the tax bill, little work has been done on issues surrounding funding. three military personnel that traveled with president trump to asia have reportedly been reassigned from their jobs. the washington post says they had improper contact with foreign women during the vietnam leg of the trip. it work for the white house communications agency.