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tv   Countdown  Bloomberg  December 9, 2013 2:00am-4:01am EST

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>> headwinds into japan as the aftery post slower growth shinzo abe says his door is always open to china. an exclusive sitdown with the prime minister. protest, thes of prime minister calls for new elections. we are live in bangkok. wto delivers a global deal that at one chilean dollars to the global economy. a $1 trillion to the global economy. >> welcome to "countdown." i am mark barton. >> i am anna edwards.
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is a bloomberg news exclusive. shinzo abe says there are no and to abenomics. he talks about how japanese companies can stay competitive under his policies. regarding the corporate tax starting next fiscal year, we decided to reduce by 2.4% and we will be moving forward with reviews and studies on how corporate tax should be in order for japanese companies to stay competitive. thee will have a more from exclusive interview throughout the program. >> ukraine. protesters have flooded the streets of the capital among speculation that the president is going to sign up to a russian trade bloc. david tweed is there. angela merkel must be keeping a close eye on that.
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>> i want to give you an idea on how much of the german media and political establishment -- i want to show the right side the newspaper. this is the picture on the front and is also on the front of several other national newspapers that the statue of lenin was toppled late last night. and then decapitated. this is a big issue for angela merkel. last week, the german foreign with the president will stop some of the opposition of the coalition is quite well known. he's a former world champion boxer. the interesting thing is angela merkel according to the spiegel has invited him to join the people's party. that is significant because the app groups together the central right leaders in europe and
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meats for summits. the fact he has been invited shows that angela is supporting the opposition here. at the same time, the president the presidenth yesterday and he is concerned it will put in place of martial law and this planning to dispatch the policy chief to try and mediate between the two sides. >> economically, the situation seems to be deteriorating. if the country facing a default? according to the prime minister who said, yes, the country is. can billion dollars. the country is facing its third recession. -- $10 billion. -- the country is facing its third recession since 2000 10. data may be why we saw the president in china last week.
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he met with vladimir putin. that is what gave rise to the rumor that he is preparing to sign some sort of trade -- russian trade bloc and has made these protests get quite heated yesterday. the question is, will the protest get even worse or will they start to move towards the presidential palace and demand elections? we will be watching. >> thank you. >> moving on. the world trade organization has itsailed is -- revealed trade agreements. they could release $1 trillion. >> that is the issue. it takes 19 years to negotiate your first deal and people wonder if it should be negotiated at all. you really have seen that recently. five years, a lot of regional trade pacts. the partnership for example is a
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big deal. negotiators who did the deal got on an airplane and went to singapore to work on the transpacific partnership. the issue is you have a 159 countries most of which have to agree and two thirds have to sign off. they have to be on board. it is easy for all of the countries to get held hostage. cuba created an 11 hour crisis. they wanted other countries to voice their opposition's to the embargo by the united states and they dropped in that demand and that was one of the reasons for the eu chief put that's to say -- >> the business implications. >> it comes down to trade. when you're moving goods it is the financial duties and bureaucracy. the deal is for the red tape. estimates that the cost of goods
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is two percent-15% depending on the goods. the red tape that comes down to the red tape. this goes along with addressing that. it supposed to lower the actual tariffs atop the chamber of commerce said it should drop shipping prices by 10%. three significant. as why you have ubs held this is a giant step forward. the entire global economy is estimate at $65 trillion. this would add another $1 trillion. it would step up two percent or three percent if they ratified. it has to be ratified by two thirds. >> what were the building blocks in this? >> crude is always the one because of that is what people care about. it was between the united states and india. end, they picked of the differences. india won a temporary waiver that would allow to subsidize
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its grain production as long as that is perceived as part of a food security program to make a grain accessible to poor people. market --long cigna" as long as it does not end on global markets and slash pri ces. hsbc might be looking to sell in the banking the unit. caroline hyde. talk us through the report. thomas could be worth? -- how much could be worth? could be worth 20 billion pounds. there is talk they can sell off 30% of that unit. the initial shares raising 6 billion pounds overall. hsbc going -- essentially, hsbc going to investors.
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the board level, we understand. putting the wheels in motion. >> is it a response to stricter u.k. regulation? >> that seems to be the reason. in the united kingdom, the commission has recommended the retail unit. the area of deposits that offer more business to separate from the investment banking unit. the areas like casino banking. that has come under fierce criticism from chief executives. threatens our means of competing against other big, global banks. they are saying the regulation is very tough in the u.k. and they are being told to hold more capital at this access. 20% ofld be made to hold your risk weighted assets. you have to set aside in terms of capital. it is at a disadvantage. some said that the next logical
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part of itsell off and spit it out. i seems to be the way it is visited. >> it is going on in the banking sector. >> they are like buses. they will did one and then a flurry. we have more than 6000 initial up one percent. the real increase as financial ipos. about 1/5 come from banks. $57 billion in shares. in september. the likes of deutsche bank. with the bc quite a lot coming from the u.k. -- we have quite a lot coming from the u.k. rbs could be looking in 2015 to sell shares. reviving. could besavings bank selling shares next year. really hsbc will be coming in a
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wave of initial shares in the next year. >> thank you. clamping down on tax evasion. toss banks are being asked voluntary have a disclosure program with the u.s. department of justice. manus cranny is here. will be the end of swiss banks? >> we have a turning point. from told thousand seven, the u.s. -- from 2007, the u.s. has pursued tax evaders by whistleblowers. we are entering a new spectrum with the u.s. justice department going after them. protecting you are and who you are trying to protect from taxing. with tax a little bit more leniently with you. you have anonymity.
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the germans are saying, no. the u.s. is going after identity, identity. that is the critical part for the u.s. authorities. invadedlion was being off taxation by u.s. citizens. this is the point. since the whistleblowers' admissions started, citizens are in swiss.have money they declared. you see the amount of money by 70%. 68 tax evaders have been charged. banks have been fined. >> what could be the penalties? >> 16 banks under investigation at the moment. no plea bargaining for them. could face up to $10 billion in administrative cost.
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she -- think about what that could do to dividends. 20% of the00 and 8, value could be up for a county. by8-2009, if you helped any ebay, 30% -- ebay, 30 -- evade, 30%. you take the burden of the costs. >> thank you very much. world mourns nelson mandela. our next guest says the former south african president has left a strong country with a solid foundation. ♪
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>> time for company news. acceptingstopped bitcoins. barred institutions for handling transactions of the virtual currency. the website hosting.
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haier electronics at to the highest level in 14 years and hong kong after alibaba agreed to the company. they make washing machines and distribute home appliances. walt disney's "frozen" was first in america and canadian theatres. 30 $2 million. it takes the number one spot from "the hunger games." welcome to "countdown." i am mark barton. >> i am anna edwards. nationwideans held a celebration for nelson mandela. his body will lie in state in pretoria. our next guest said he left a strong country with a solid foundation and we were dismissed the doomsday. expect little market reaction to the death of nelson mandela.
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peter joins us now. great to see you. thank you for coming in. give us your analysis as the globe to some extent mourns the loss of nelson mandela. what kind of it country have to left? >> the key decisions he made between 1989 and 1993 were to get a peaceful transition. he had advocated violence as a method of combating apartheid. a crucial moment before 19 in four that had -- 1994. during the constitutional assess a putting in place strong institutions to help to have an investment grade rating. under his tenure, most economic made by the man who later became president. it is hard to judge him on the specifics of economics. when he came out of prison, he rejected nationalization.
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originally a former policy. it has been rejected. he left the pragmatist policy. >> does it live on? >> this is really the big question. issues whereietal you can debate that. mandela campaigned vigorously not delegate a white domination of bud black domination of the country. that is where the risk is moving especially to lecture about the opposition and the language which is quite easy. underneath the surface, more worrying is that it will rule forever until jesus comes. i think that starts to move away. enrichment stuff of a black elite. also moving away from his vision. >> how dangerous this
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unemployment level -- how do you address this unemployment level? the highest in emerging markets. what is the best way of addressing that? >> a real unemployment is around 8%. the statistics are hard to get a hand on. the choice of economic model which is based on the link between the unions. they care much more about employee versus unemployed. productivityen levels and wage increases suppresses an employment level. wholesale change in the economic model toward unions and wage regulationnd labor which is not really possible once they have the linkage. it is breaking down slightly. the worries about the lack of job creation. a long way to go. -- >>ll we see further
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will we see for the protest? -- otests? pr last year was a record. 34 workers died. will we see a repeat? increase -- we saw an increase in violence. it is tied to elections next year. we expect a coordinated effort to occur, more action around election from civil servants. next year will be the one to watch more than this year. think asroadly, do you far as investors are concerned about the financial interest, is africa having a moment and define that how you will? there were press reports that the bob diamond showing an interest in increasing aided assets on the continent. jill o'neill -- jim o'neal
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jointed decades ago. if africa having a moment? is south africa a jumping off point? continent, a burgeoning middle class with consumption and services and that go with that in banking at the forefront. that spread across the continent. it is probably going to be around six percent, seven percent. it is hard for south africa given all the blockages of trading in africa to be that much of a hub. they can only access about 10 or so countries to its north as a hub. a certain amount of investment ku -- you can get. kenya to thego to east of africa. south africa is only partially true as the hub. the opportunities clearly and south africa. >> thank you. given us his thoughts. we will get further out of the
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ukraine as protesters demand a new government. what he has to say about the latest protest. ♪
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>> welcome back to "countdown." i am anna edwards. >> i am mark barton. hundreds of thousands of protesters and ukraine have taken to the streets that though president is going to sign up to a russian led trade bloc a
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greement. are we heading towards orange revolution territory are not quite there yet? >> the protest around 250,000 over the weekend. the difference with the orchard revolution if the opposition parties are far less coordinated. and lack of leadership that was more evident back then. the first trouble is the protesters mistrust the opposition leaders. opposite side of the coin is the current resident of the same elite separated. we see it as a timeline to get it through particular change in policy. it can be inflated by not increasing gas tariffs. the long run for us has been with russia and they will probably come back after winter to my after they secured gas -- winter, after the security gas
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at that time. >> you think they will sign a deal with europe at the beginning of next year and the deal with russia will not go on? >> some time through the next year, potentially. in the short run, they have to be sure in the good faith to russia and to move along the process. also get money for russia and china as well to secure. of imports.orth there is a need for funding. part of that is through russia and gas payments for example that is going on in the background. it is about survival and timing. timing and again between russia and the eu. >> peter, thank you. is 7:26 a.m.ndon behind the microscopic pill.
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more when "countdown" returns. ♪ ♪
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>> these are the bloomberg top headlines. they joined antigovernment protesters who converged on parliament. angry protesters in ukraine toward on a statue of vladimir lenin and demanded a new government. they want to keep rusher on the .resident speculation that the president will sign up for a russian trade block cost thousands to pour
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into the streets again this weekend. swiss authorities will decide whether they will join with expose taxes to help avoiders. >> i mark barton. it is 7:31. and wide-ranging interviewed with bloomberg news, shinzo abe says it is time to reset relations between the two nations. >> we need each other and we should understand that. we shouldn't let one issue control the entire relationship.
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also less have an understanding that will lead to a relationship based on, strategic interests. because there are issues, as all the more reason to have a meeting between heads of state. my doors are always open for dialogue and hope china will adopt the same stance. >> at least one international business publication has depicted you as superman. whatou be specific about nomics?t step is for abe onwe have placed the session one that will be based on the implementation of growth strategies. we seek dramatic improvement of profitability as well as a motion of start up businesses. we have decided to reduce by 2.4% and will be moving forward with reviews and studies as to
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how corporate tax should be for japanese companies to stay competitive in global markets. there is no and to abenomics. the cabinet will approve related policies based on growth strategy. >> and israeli maker of cameras is to be swallowed up in a near billion-dollar deal. the company is given imaging. has been on the block for a while, hasn't? at one point they hired barclays to advise it on a sale. they were disappointed over deal with pill cam. this is a camera that fits in a pill and people swallow, which means that you don't need to stick cameras via other means
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into people. why this deal is happening or this offer is come about is because of its controlling shareholder. it is an israeli conglomerate known as idb. it is undergoing restructuring now. it is run by a colorful tycoon. viaeeds the money and various subsidiaries that it controls. this deal, assuming it pans out will allow it to raise some money. israeli shares surged by more than 1/5 yesterday. the deal was $860 million in >> if this. particular deal goes nowhere, it looks like it has been a fairly -- year for israeli tax. >> google agreed to by the crowd
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source satellite navigation app for a billion dollars. facebook has made acquisitions well.ear as has apple as there are only three weeks left to the end of the year, but it would be surprising if there are is still some time for more deals. be goingem to reasonably well. the third quarter, according to israeli venture capital association, israeli stocks rose $660 million. also making up the best quarterly fundraising in about a decade. another big deal in israel. a bit less than $1 billion. but certainly the company itself seems quite happy with the offer. right now it is just an offer, we have to see if it pans out. >> thank you elliott. >> fiat is spending as much as 9 billion euros on new models in europe. we will have the details next.
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>> first, bloomberg. time for today's company news. goldman sachs and deutsche bank are among five firms whose practices in china are being investigated by u.s. regulators in addition to jpmorgan. that is according to "the new york times." gave themecently
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spreadsheets and e-mails detailing the funds sons and daughters hiring program. the world's largest carrier renamed american airlines group is poised to rise on confidence it can avoid the pitfalls that drags down other mergers. s say the stock rise as much as 50% by 2015. obvious says toyota and hitachi have promised to raise. >> we're 20 minutes away from the start of the european session. "> the anchor of "on the move. is here with us. >> futures actually rising.
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if you look at the cac 40 futures, they are gaining some 0.7%. basically investors are more focused on what we heard from china. two stocks to watch in continental europe. >> all things banking covered in "on the move" as well. >> you been talking about hsbc all morning. this is according to the ft. we will get the implication. this unit will be valued at 6 billion pounds. we will see -- we will do our own analysis and crunch numbers to see if that is indeed the case. asset sales as well? merrill lynch?
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,> this is in bahrain, lebanon and we will look at the rising wealth management business in the middle east. >> all right, francine. thank you. francine lacqua will be with you in "on the move." >> hsbc. >> could be looking to list about 30% to one third of its retail consumer banking unit here in the u k. worth 6 could be billion pounds according to the "financial times." it has a lot to do with u.k. regulation. recommendations that you protect the retail unit, the area that gives out the office deposit schemes that give out small
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banking and small business loans. they should be somehow independent from the banking unit. that is going to set up a disadvantage. interesting news. it has been called down one or two percent. we could be seeing shares to be sold as well. that would dilute things. holdings that are out there. those banks out for today. sterling chartered and hsbc. investing as much as 9 billion euros on new models in europe. let's bring in jonathan ferro who is watching this closely. give us a headlines. >> this is the modern a last 20 minutes. it is a big that a big turnaround in europe. market shares have come down 50% for deliveries.
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you have seen market shares come down from 9.3% to 6.3%. it is not just that the market is weak and, it is that this -- that fiat is getting a smaller chunk of the pie. a 9 billion euro investment on new models, but on the lecture site as well. the luxury maseratis seen on the corner of every street on knightsbridge here in london. also the alfa romeo is as well. >> is is about positioning fiat away from the lower end of the market and more towards the made in italy brand, more towards the lecture and the things? >> not necessarily. it is about putting the money where the success is right now. they're also putting a lot of money into this fiat 500 which is been an international success. this is a side of the car market as well.ngs are up you're looking at 20 new models by 2016. you've got to look the on diddley, beyond fiat to the
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broader italy as well. part ofy much is a italy's identity. a reinvestment in luxury brands is a big bet on europe. the will be good news for likes of their ceo. good for employment, considering it is 12% in italy. this is been a part of the reason why the car market in europe has been so weak. unemployment record high across much of the eurozone. if you don't have a job you can afford a car. is the big in europe not just for the year but for the decade. >> should be blow and a strumpet? >> really please. am i out by 2000? >> anna was pretty much on the money. >> and some fed officials are talking today. gentleman. could they possibly taper next
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week? >> have a look of the bloomberg taper poll. i have it somewhere here. you actually look at december, 34% indicating. that is double from last month's pulled third march am a 40% say march. that seems to be the consensus. that is down from 53%. remember it is not all about jobs and unemployment. inflation is still around one percent. how do they target back so they maintain stimulus or do they refine this thresholds for rate policies? look of the 30 year average. we're back to the highs of mid- september. >> that is why they didn't taper. >> home sales figures seem to be bearing well, holding up well. >> if you want to foster a robust recovering housing market do you cut treasuries instead of mortgage backed securities? >> we get retailers later this week.
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we'll see how the u.s. consumer is. >> the most luxurious hotels in london is selling about everything. its $30,000 night suites. furniture is for urge urgent redesign. >> feel like you need a touch of five star luxury in your home? now is your chance. london is in auctioning entire suites, beds, paintings, the entire lot. 19th-century interior is being stripped. the guestrooms and public areas are getting a new look, an update from its neoclassical feel. new technologies being installed, all being done with an eye to the building's history. among the auction highlights, to crystal chandeliers with a price of over $8,000. this oil painting which the
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hotel hopes will fetch over $65,000 or differs items are bit much for your flat, and how about silver cutlery, crystal champagne glasses and silver napkin holders? hotel closes next week and will reopen in autumn next year. angus bennett, bloomberg. >> i think i have all the crystal chandeliers i can pay for. >> quite cheap, actually, 8000. a hospital before? >> our next guest says tapering in the u.s. means the economy has well and truly arrived back in the bridal. stay with us. -- as well and truly arrived bridle. stay with
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us. ♪
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>> welcome back to "countdown." i mark barton. >> our next guest says the introduction of tapering in the u.s. could be bad for investors and probably worse for equities and bonds. let's caso minds back to the end of last week. we had some data on job creation in the u.s. that came in stronger than people anticipated or economists had forecast. did the market behave the way you thought they should have done? >> i think they did a first- class job of rubbishing my idea.
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they were absolutely stunner figures. the seven percent unemployment we haven't seen since 2005. 7000, we have averaged 200- in the last year, -- we have 7,000 in the last year. my fears are because you do not know the effect of tapering and nobody has really explained to me when we have a moribund wholesale money market, who is going to take this service? the money market stonework. the still do work. of going to have a queue people asking the government for support? usual expecting the
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thing. someone is going to go works, i'm not sure this. we might see in february march and april quite high levels of volatility. i'm not negative on it, i'm just saying for the first three months i think you need to have your tin hat on and hope santa -- forou a pair of christmas. we've had plenty of time to adjust. i think i was in duly worried about it because it that it was badly presented by bernanke. i think what he did was throw a pebble in the water, but more of a boulder. everyone said who, look out. they saw their rates and officially go up, cost of access to cheap dollars in money had gone. the recovery was still far away.
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of that we have had a little massaging on the back of the shoulders we're in better shape to take it. >> is a rally on the cards? is a smiling down on us from lapland e >> when you look at those key ratios for the s&p 500 , their quite rich. we're still not back to pre-2008 levels but we are very close to it. unfortunately, i don't believe the european story at all. i think it is rubbish. i think mario draghi has done a sensational job in papering over the cracks. i think the ecb has been prevailed upon and has delivered the goods in spades. i cannot understand how people think that france and spain particularly, their big countries with big economies, are going to write to the degree that people think they are. if that doesn't happen, there is a possibility that they could drag the rest of the world down.
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i don't see what other aces in the hole he has to play. germany, there's a touch of but when about them, you see 0.6% growth for greece, you go yeah? i'm not convinced. we need to similar data from them. more data on the inflation front? d ziegler headed for deflation in the eurozone? that encourage you. i come from the old school. i remember sitting in a and norman lamont said i should be hung from the tower bridge. he said you blasphemed for talking inflation. when there's competition there are margins. >> avenue international viewers worried that we still hang people from tower bridge, david.
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you love your cricket. is all over? >> when we have to go to the and to see johnson banging it in -- we played before, will play again. we have phil johnson's cup to overflowing with confidence. he't hit them too hard, might take it off. come on. we can come back. >> full him winning, manchester united losing. the world has turned. going to win a yet to be everybody. i don't like these 2000 mile journey's.
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s. >> not much cricket coming up >> stay with." us and we will see you tomorrow. ♪
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"oncountdown." welcome to the move." i'm francine lacqua. our markets team is everything covered from country -- from companies to currencies. our markets editor manus cranny. jonathan, we will start with you. >> we have conducted the lubeck taper poll post jobs. december, 40%y say march. that is down from 53%.
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i think a lot of people will say the consensus still around march time. can roulette january, either., thank caroline, and news, hsbc are the biggest corporate news. >> it could be spinning off its u.k. retail unit. we know that is high regulations in the u.k. kicking in. vickersy with recommendation that you separate retail banking. could this be worth 23 billion pounds e >> watch out for hsbc when the stock market opens in a few minutes. >> today's the day when 300 of them have to make up their minds. you cross the line and get into bed with the -- of justice? this is what the swiss authorities and regulators are encouraging the swiss banks to do, francine. if you don't do it, you face
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potential criminal litigation from the department of justice. noma whistleblowers. it is all about tell the truth now or pay the price later. >> we will have a big focus in the next couple of hours. john. watching fiat, >> how to turn on a shrinking market with falling deliveries? and infinitely popular -- the internationally popular fiat 500. >> we have a little bit of a carmaker theme. we're watching banks and swiss regulation, but also ages bc and news from the financial times. trade surplus, one of the widest we've seen in years. exports are rising. yes exports rose. the fed is running out of reasons why not to taper. a calling for higher
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wages. his overall structural reform within asia. equity markets indicated and trading higher, it is going to be a big day for fed speak. two key hawks speaking. in thewill speak later day. european equities for the moment rising. german exports expected to decline by half a percent. we will get that data. blackrock say that these equities are under owned. too much pessimism and a little bit of good news to produce an uptick in the numbers. we are also having and i on equities. .arclays going overweight underweight the united states of america. really setting up the overall trend for the start of the week. his last two trading weeks before christmas. let's take a look at commodities. the six-week high on crude oil.
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-- 97.82. gold $1230. tapering bets, that is the key thing. the number of people who are long cold, it is the lowest since 2007. it could offer value. at 7105. still, the taper debate weighing on the commodity complex. those are a few commodities. ?sbc the minor? they're selling assets $1.3 billion. all about capital expenditure control, reducing costs. you're seeing the short positions drop quite significantly on kazakhmys.
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six percent of the stock is out there in a sure position. see it rising on the back of that 9 billion potential -- potential 9 billion investment overall in new models by italian and by luxury. let's have another look at some of the current euro, virtually -- it's a look at currency. euro pretty flat. aussieve a look at the dollar. aussie dollar is declining. given up a little bit of value on the back of chinese trade data. >> manus, thank you so much. let's welcome stuart richardson. he is hard and are in chief executive officer at r and g wealth management. talk to me about 2014. we had the stellar job support of the u.s. and friday. is this what is going to dominate the markets for this for six months of the year?
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>> unfortunately, yes. be one of the keys to 2014. clearly the pay for number -- the payroll number on friday helped. the simple message here from our point of view is that tapering, qe 30 pushed market higher in our opinion. it is going to be a big support for equity markets taken away. then we can go to traditional analyses of equity markets, earnings ratios. on this fundamental valuations we think the market is pretty expensive. >> you are expecting a big correction? >> one of the big questions is what happens with corporate earnings. reversion to the top end of the range, then earnings could actually have a quite
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tough time. with the high prices well, there is certainly room for a correction. >> the corrections could be when tapering is announced? winner tapering is coming. we have always known it was coming in the qe was now forever and yet not fully priced in. >> a thing about qe is that every day you get a little bit of injection of cash into the markets. cash is like a hot potato. soon as a cash begins to reduce, at some point presumably before we get to the end of tapering, the market will begin to come under pressure. it might not be the first point thatut at some cash infusion begins to diminish to a certain level, markets will feel there's not enough money going in and it could be an
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interesting picture on fundamentals. the market is overvalued. sentiment is extreme a bullish on certain measures and the market, when you get to this type of background tends to be vulnerable to bad news. we haven't seen any bad news for a time. 2014 could be different. >> we haven't seen any great talk to mer, but -- a little bit about the banks. today we find out that hsbc might sell 30% of the u.k. retail banks. the next six months, our banking stores in regulation stories going to dominate the headlines? >> banks always generate headlines because of what happened in the last five years and we talk about banker bonuses. from our point of view, that would be regulation. we known the u.k. we spit things out. it is interesting to see how
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that will affect earnings and banks. i just think this whole regulatory pressure is going to be a headwind for the banks for. of time become. ourtuart richardson from and g wealth management. we will be talking to carmaker fiat next. ♪
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>> i'm francine lacqua in london. wheres "on the move." streaming on your phone, your tablet can also
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taper on the table? john, we have a pretty good employment figures on friday. >> we did hurt on the unemployment site is a big asterisk next to that. the option is certainly on the table for a december taper. the latest bloomberg poll conducted after the figures, while 34% now say december, that has doubled from november. 40% say march is down from 53%. views are shifting. payroll ate pay for 193,000. >> u.s. mortgage rates have started to rise again. how concerned with the fed be about this? >> after member the fed wants to encourage a robust housing market.
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if your consumer and you're spending more near mortgage, you are spending less elsewhere. when mortgage rates on the move in the u.s., the average 30 year mortgage rate is now back to the highs of mid-september. was this mean for quality? it could mean not moving at all. or it could justify moving --asuries as far as mortgage compared to mortgage backed securities. unknowns. the big question coming up to the end of december, what will the fed deliver for christmas? >> that is certainly what the markets will be asking themselves over the next three weeks. jonathan ferro there with the latest on the fed taper talk. matt winkler sat down with shinzo abe with an exclusive interview. for hisow what is next growth strategy for japan as well as his relationship with china. we need each other and we
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should understand that third we shouldn't let one issue control the entire relationship. what of us have an understanding that would lead to a mutually beneficial relationship a stunt, strategic interest. , iause there are issues think there's a need for meetings of heads of state. acute my doors open for dialogue and hope china will adopt the same stance. that is my hope. at least one international business publication has superman.u as can he be specific about what is the next up for our economics abenomics? >> have an active industrial competitive with germaniclaws improvements a profitability and restructuring as well as promotion of start up businesses. regarding corporate tax rate
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starting next year, we have decided to reduce by two .4% and we will be moving forward with reviews and studies as to how corporate tax should the in order for japanese companies to stay competitive in the global markets. there is no into abenomics. abenomics. no end to >> with us is stuart richardson. withr&g investment. it may not come in december, but q1 pretty much there. what do think about what the prime minister of japan told us? of rice to terms book value, japan has been cheap for an incredibly long time. the real drive from about a year is that expectations moving
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toward a more robust program. really it is depreciation. it is driving the equity market sense that there has been a gradual improvement in the economy. moveap how one of currency and expect everything to be fixed. it is incremental appreciation over time. it is not easy to implement. we are not holding our breath for massive changes on the reform side. it is all about keeping the currency weakening. japan is started on this new last april. the relative play between japan and the u.s. is actually good.
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>> we were hearing there prime minister singh there is no into abba nymex. saying there is no end to abenomics. economyroblem with the is how you get real growth in the economy when you're working age population is declining. denise the massive productivity growth. you need toreforms, keep changing the currency. currency goes down because people think there will be some inflation in some kind of growth. there's only a limited. of time that the markets will believe that if you don't see results very >> resulting about
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policy. the government is almost bankrupt. at the problems that the developed markets have had, the authorities have to keep talking about change and reform and growth. to do this to keep the ball rolling. if they don't, we stand still again and are back with steps. this whole process of abba n abenomics. it got a huge amount of debt which is probably not going to be served. there are any delicate position where we can't see any easy way out. is through ition rate their hoping it will leach lead to wage rises. companyre a dead mastic
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concerned about cost import increases, is very difficult. of currency and equity markets yes it is going to look like it is working. >> this is almost a direct play against the u.s.. when you start becoming short and japan? is it when u.s. valuations come down a bit? markets are going to give -- if the early storm come through next year, the u.s. needs to take a big breather. it has such a good 2-3 year. period. >> talk to me about carmakers, but not necessarily about carmakers. fiat says it will spend $12 billion in china revamp its
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models. in generalg to see more investment coming to european companies because the apparent such we growth? us an easy glimmer of hope people start spending. >> the data for the german economy has been pretty robust. outside of germany some of the major countries, france and italy, there's no growth. we can't see any major pickup in growth in the short term. investment is coming to the financial market in europe. that much is clear from price- performance. you can certainly talk about some of the automakers as a distressed sector given the last 12-24 months of performance. talking about europe, portugal and greece don't seem to be spending at all. this has to do with continued qe in u.s. which is encouraging
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people to look around to the developed world for opportunities. we are not having a problem. 2014, who knows what could come. with these more elevated financial markets, he could be called to do something if there is something bad going on. we don't think there is the fundamental growth. we need to see economic growth as well. >> stuart richardson the partner and chief investment officer at we wealth management area will have the latest on these stories next. ♪
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>> first, bloomberg. >> welcome back "on the move." him francine lacqua near some companies on the move. comes after ali baba agreed to invest more than $650 million in the company.
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decision to end a 15 month freeze on ipos may unleash at least $11 billion of share sales in the first half of next year. chinese companies are expected to be among the first to list. an 750 thousand mainland chinese companies are waiting to go public. sachs and deutsche bank are among five banks whose hiring practices in china are being investigated by u.s. regulators. that is according to the new york times. the fivet says recently gave authority spreadsheets and e-mails detailing the firm's sons and daughters hiring program. there are reports that europe's biggest bank may be looking to sell shares in its u.k. banking unit. business european correspondent caroline hyde. how much can the deal actually be worth? the financial times" is
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reporting that it could be worth some 20 billion pounds. the report is that there was sent a third of that to the to markets. a 30% stake could rake in some 6 billion pounds overall. they could help bring in next money from this department. responseeems to be in u.k. regulators. >> exactly. report as iticar's is named after john vickers, his view with the independent commission on banking recommends that you should start separating and therts of the bank retail unit. you want to detect the depositors, protect those are getting small business loans. one logical step is to spinoff this in its entirety. hsbc can lead the way and certainly stuart gulliver, the
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ceo of hsbc, has been very against some of these regulations in the united kingdom, threatening at times to put hsbc's headquarters in asia >>her than in the u.k. t this news comes within a flurry of other news about ipos in the banking sector. the like buses, they all, once in the u.k.. financial ipos have grown by about 10%. we had lloyds after september, with deutsche bank in april. we have such a list of them to come. lights could be floating its tsb unit. metro bancorp beverage and money.
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>> thank you so much, carolyn. tech titans are teaming up. they're calling on the u.s. for surveillance reform. details next. ♪ .
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>> welcome back to "on the move." i am francine lacqua. are 30 minutes into the trading day and let's see how things are shaping up. the picture. the focus on what we will be hearing from that speakers, max carney -- mark carney talking. the indices opened higher. a little bit of role reversal in the cac 40. a look at other currencies in terms of what we are seeing with the currencies, probably one of the most interesting ones.
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the dollar maintaining its again against the yen. these are the top headlines. the thai prime minister dissolved parliament and called for elections. this is antigovernment protesters began diverging on houses in bangkok to push for ouster. lawmakers quit parliament to join the protest. china's trade surplus widened to nearly $34 billion. the largest in four years. exports topped estimates and rows of more than 12% from a year earlier. a fourth-quarter slowdown suggests that economy is vulnerable. more thanowth slowed initially estimated in the third quarter. weaker than expected this is a speeded attribute it to the downward revision. to the downward
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revision. shinzo abe is saying it will promote growth. he was companies to increase wages faster than inflation. joining us now to weigh in on abenomics and his reaction to the gdb figures, let's welcome the director of the international group. great to have you. talk to me about the gdp figures. how disappointed were you? japan seems to have a cloud of good hope about it. a lot of investors alike it. does put a damper on it? >> i do not think. most of the revision was estimated we had the figures last week announced. rightill .1% is within -- in the middle of the estimates of by economists. i do not think it was a disappointment. as you pointed out, people are looking at going ahead and the next quarter and the gdp was revised. we have the bank loans which are at the highest level
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considering that japan has a heavy inclination toward financing. this indicates a short comeback of expenditure. you look at bankruptcy figures that were out today. it is a 23 year low. it basically connects to one of the things that mr. abe is trying to do to increase wages. they are slowly getting correlated. for that reason, it remains to be very good. we had a schooling interfere with the prime minister. you heard it and he is basically saying that the bigger companies will increase wages. had in schools of interview with the prime minister. -- you heard it a he is basically saying that the bigger companies will increase wages. >> is ahead of capital expenditure. the corporate activities are moving out first and then wages increase. this summer, it is going ahead.
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expenditure, we are expecting it to turn around next year after there has been policies announced. a lot of the details of the second and zero -- third arrows will be announced next year. not a true revival but it is a fact that many of the japanese companies were holding capital expenditure because it has been prolonged due to the aftershock of the crisis. >> at the same time, with the waiting for the second arrow for quite some time. i know reforms take a long time. we are used to this in europe. when into the markets given time until to actually see concrete benefits? >> will not see the revised lace and -- we will not see the revitalization until next year it is the second arrow will concentrate to the capital formation of government spending. more than half will be spent in
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that area which i low multiplier. that is not necessarily a good thing. it will bridge the growth toward the third arrow. it is not been announced with a more focused on the growth side. that is where the expenditure and the timing will be coming back around june time next year. needst reforms that japan a little bit more than the others? the reforms that we are expecting -- deregulation and corporate tax reforms. what are the top two things that are the most important? >> we are looking at it and painful policies in transition. is one big key where japan will be opening quite a bit of market and deregulating vested interest in both areas in japan. -- that ship good
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and a good jab and arms. without a doubt, it is captured spending. getery unlikely you will two percent inflation. what will you get? >> the bank of japan a nose that as well. they have not changed their targets will stop the good thing is that have announced their target. -- target. -- the good thing is that they have announced their targets. they never used to come out the numbers. it shows there hope of a methodology. the attitude changed toward changing. it should be taken positively. no one in the markets believe that 2% is possible at this point. between themake political tensions between china and japan? the prime minister talked about this as something we think -- and the tensions have eased somewhat. do you believe in that?
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i think that third party of the united states has to mitigate the situation cuts while china and japan as far as political, it is a gridlock. iso believe personally china to in the old imperial methodology that made the country adopted back in the 19th century which does not work right now. it is not only hindering our relationship but with other countries stop that are realizing the negative consequences. japanese corporations have declined considerably knowing the risks in china. that would have a profound negative long-term relationship for china. for that reason, gradually, they are backing off and waiting for mitigation like the united states. >> thank you so much for all of that analysis. turning to technology. technology countries have called on president obama and congress -- onose greater
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surveillance. >> they want to governments not just the u.s. government to change the way they carry out their electronic surveillance programs. of theiggest -- eight biggest companies have signed a letter to president obama and congress that will go in the papers today. they have done this before. the difference is they are more angry. it is a populist tone. that are more specific. one thing they want is to limit the government authority to collect user information stop we heard the google ceo and he is quoted in the letter and he said, we have been tried to off our game with encryption to protect user data. whenever government is taking a information, that is not worth a whole lot. he is talking about a program called muscular when we had the smiley face emoticon under the
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nsa slide that indicated exactly how the nsa is collecting data from google and yahoo! where their internal servers meet the public internet and how they are taking tens of millions of records every day. he is saying all of these companies -- this whole soul and gathering of metadata and records has to come to an end. >> this whole cell is not the only way the nsa collect data. >> that is where it all began with the snowden leaking the documents about the prism program. i run it is the u.s. as i write is theu.s. -- ironic u.s. have access and they can go to the companies and say, i want francine lacqua's data and get it. what the companies want is when that happened, we want to disclose to our users, more information about the fact it
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was requested of us. and they are quite a limited right now about what they can andand how many data report how many requests. they want an end to the whole cell taking of data -- wholes ale taking of data. >> ryan, thank you so much on the technology letter. fiat investing. more on its investment to what it means for the global economy. that is next. ♪
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>> i am francine lacqua. this is "on the move." u.s. is clamping down on offshore tax evasion. swiss banks are urged by regulators to participate in a disclosure program with the u.s. department of justice. manus it here. this end of swiss banking secrecy. we knew this was always not a safe place like they used to be. >> it reached a turning point which is that they have gone from a series of whistleblowers
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to provocation against ubs and that kind of institution. the center believes a $100 billion is being evaded. this is turn for whistleblowing to saying, enough. timeout. join in, join the justice department program and sign a non-presentation a great -- nonprosecution agreement and tell us the names animal avoided it. this is a done deal with the u.k.. of thetell us the names people who are avoided it. -- this a done deal with the u.k. they have gone after bankers and individuals. swiss wants to remain active and present in the u.s. the regulator in switzerland is saying, it is 300 of them get over it. get over the motion. get on board. if you do not, the worse case is one the oldest bank paid a fine
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and had to close the doors. >> is what at stake -- huge fines. >> it is. we'll see the effect. switzerlandaving an . 70%. $40 billion. the categorization of the ball -- bulk of the people who join in the voluntary program or category 2 will have to say what they've managed and how they did things and breached av -- the rules and could face 20% of the value. 30% of the value after 2009. if you have a u.s. citizen evade after 2009, you are facing a 50% fine. quite substantial fines. in the legal calls as well. >> a very big numbers. -- the legal costs as well.
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-- >> very big numbers stop my uy johnson. to thatng forward conversation. an interesting one. and not to deliver. the fed information. we'll be talking a lot about -- always a winner. what fiat will be doing. on will be covering that. we'll be talking by jobs in britain. the boston start up. michael will be joining us on his take of what should happen next. what can drive jobs in the u.k. a significant torsion and what can we do -- portion and what can we do to get a foot on the ladder. the story we will be talking about. a fascinating show and fascinating guest.
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and if abenomics can deliver. see you in a few minutes. >> thank you, guy johnson. some companies on the move. they plan to add commodities. in asia. finance and business is expanding as china increases consumption of energy. the lowestcut it to level in at least four years. disney's animated film is first in the u.s. and canadian theater's. the film took in almost $44 million. it took over the number one spot "catching fire." revive thesses to factories. they hope to boost the maserati in new models. more on that story, unless burden jonathan ferro.
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-- let's break and jonathan ferro. --te a bit of money was up let's bring in jonathan ferro. -- quite a bit of money. >> down almost 60%. european car sales are getting smaller. we have went from a market share of 9.3% to 6.3%. what did you do to turn things around? we know with the new launch can do. a kick in sales. that's according to people with familiar. what the model will be? guy touched on it. this is the upscale fiat. the luxury maserati and leveraging the success of the cs 500. it's about premium. it is about to where the market
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is right now. fiat przybilla -- people are not ple, people are not buying it anymore. >> it could be a great ubiles. >> absolutely. you think about italy. is good. that will make the government is very, very happy. especially this sector in the market. a premium brand strategy. guess where the margins are? the higher end. they will get the margins and hopefully the italian government , to do something for the whole of italy. do something about the unemployment rate. that's reason why car sells are so low. record unemployment. nobody can afford to buy a car. >> one the most cold from carmakers. -- colorful carmakers. was interesting turnaround
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up thank you. the very latest. flocking to nigeria foot up thanks to petrodollars. -- nigeria. -- thanks to petrodollars. watches are not in london. , the largestgeria city. the wealthy elite used to have to go to a broader for luxury staples. big brands now come to them. >> a huge opportunity for luxury to be here. it is going well. not only at the highest in butas at the middle -- end, the middle-class who wants access to luxury brands from around the world. >> independent since 1960, crude oil has been pumped out. the black gold economy is thisted to grow by 6% year. that is according to a bloomberg
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survey. unsurprisingly, international brands gain a quick old. one of these is porsche which opened a showroom in victoria island. the base of the company's headquarters. >> the middle is an african region is the fourth largest .lobally for porsche the merging markets are more keen on with china with that personnel. >> with more nigerians able to afford a wonder 50,000 dollar car, you'd expect more unveilings. >> staying on luxury. find out which landmark london hotel is auctioning contents and what is up for grabs. ♪
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>> one of london's most luxurious hotels is selling about everything. 30,000 a nightly suites is auctioning furniture for a major refurbishment. the report. a partou feel you need of five cell lecture in your home -- five star luxury in your home? here is your chance. everything.tioning
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the interior is being stripped. 93 guest rooms and public areas are getting a new look at an neoclassical feel. new technology is being installed. it's been done with an eye for the history of the building. among the highlights is to crystal chandeliers with a price of over $8,000 and this oil painting that they hope will 60 $5,000.tch over if a bit much for your black, andabout silver cutlery napkin holders. the hotel closes next week and will reopen next year. recap for the vujacic -- recap. we will check the back in. is what we have to look out for.
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we have good numbers. >> it looks that way. if you look at one of our recent polls, you see the amount of economists who think it is in december hasn't dealt with. 40% for march. edge in december has doubled. has doubled.ber nobody knows what the fed will do. >> a lot of focus on hsbc. >> they could be spending their retail unit and getting 6 billion pounds. it could be a step ahead of the competition. andr banks analyze this sending ipos. >> well quite a lot. what about china? exports moving the aussie dollar. in terms of commodities. do play the taper game or recovery?
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>> thank you. stay with bloomberg. guy johnson and i are next. ♪
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on italian luxury. carmakers expect to spend nine billion dollars on new models. >> tech titans google and apple urged the u.s. government to stop it is spying. japanese economy slows. exclusive interview with the prime minister tells us there is no end to abenomics. good morning, everybody. i am guy johnson.


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