tv First Up With Angie Lau Bloomberg September 21, 2014 7:00pm-9:01pm EDT
did a 38% gain on its debut. enriching insiders and investors alike. this was huge. if that is ahuger, word. 230 billion. it is bigger than facebook, hsbc, jpmorgan. multiples at the timesice, $68 a share, 29 estimated earnings, that discount has been erased. it is now trading at 39 times earnings. it was erased in a matter of hours. short-term, one analyst says it will continue to outperform the market simply because of demand
from investors who were not able to get in. that will continue to push up the price. over the long-term, listen to jack ma on how he plans to grow the company and create longer-term shareholder value. >> the very important thing is that we want to build up a company, we want to make sure our ecosystem helps the small guys. anything that can help small business growth, we will consider. >> they want to be the backbone of how small business grows their business. you talk about the windfall, a lot of people made a lot of money. standslake, for example, to make more than 550% on that combined investment. the biggest one percentage wide is general atlantic.
the stake is worth $2 billion. >> what about yahoo!? yahoo! is tied into alibaba. what are the implications for yahoo!? >> they did sell about a quarter of their shares. they are still a big shareholder, obviously. the stock has benefited massively. to some extent, it was traded as a proxy to alibaba. what do you do with yahoo! shares? take a look at the valuation. the market cap is about $41 billion. it is less than the value of its stake in ali baba and yahoo! japan. the value of yahoo!'s underlying core business, it was laid bare. it is negative. that is another topic
altogether. it has lagged behind google and facebook. softbank, the biggest shareholder of alibaba. it is close to 800 million shares. 75 billion u.s. dollars. we also spoke with the chairman of softbank. he was also on the floor of the nyse. >> alibaba continues to grow grows china, but also [indiscernible] this ipo in new york makes a good entry to the growth or expansion. forecasting to book a $4.6 billion gain from the listing. they will be booking that for the six-month ending september 30. . windfall gain
shares open and 56 minutes from now. .> thank you so much for that singapore exchanges forecasting an end to a two-year hiatus for chinese listings. the optimism follows an agreement which makes it easier for chinese companies to sell shares in singapore. has, good to see you. what extent will singapore's ipo market change? >> i am tempted to say watch this space. there will be a significant change. difficultt, it was for mainland companies to list in singapore. they had to incorporate an overseas holding company. with the new agreement, they don't. the last one listed in singapore was way back in 2012. companies raised $2.2 billion from singapore ipos this year, down more than 50% from last year.
average trading volume down more than 30% from a year ago. it has not been pretty for singapore. singapore has been proactive in trying to revise all of that. the singapore exchange has helped across china to explain new rules. it does notkong, have a natural influx of ipos. china factory inside of and they are all going to hong kong. >> it isis always -- always singapore and hong kong locked in a battle. is it possible that singapore may pose a challenge to folks in hong kong? deal works out well, perhaps, but it will be tasked. a trade link between hong kong and shanghai expected to begin next month.
that would make hong kong a gateway to mainland china. the 30th percent rally we have seen -- the 38% rally we have seen this year. singapore is not giving up. in the past three years, singapore has introduced rules to allow the listing of resource companies without an earnings track record. it is also offering dual currency trading. it hopes to show that it is a bit more accommodative. hong kong lost ali baba's listing. singapore trying to be a bit -- give a little, so to speak. >> give a little, get a little. thank you so much. news, a warning for the group of 20 finance chiefs and central bankers. low interest rates could lead to an increase in financial market risk.
the message came in a communiqée delivered at the close of the gathering australia over the weekend. it outlined the potential risks for investors. indonesia's finance minister fears that stimulus could hurt asia's developing nations. some countries in the region may have to sacrifice growth to keep their economy stable when the fed raises rates. indonesian policy makers may have to tighten further to prevent funds from flowing of the country. chinese authorities are looking into galaxy securities. they save three staff are being investigated for personal reasons and they are cooperating. chinese brokerages have been under investigation for bribery, the galaxy securities with no link to those inquiries. new zealand's prime minister has one a resounding election victory over the weekend,
propelling his national party to a third term in government. let's head over to paula allen -- paul allen in sydney. he campaigned on his strong economic record, see you can expect more of the same in that regard. he is looking to progress a free-trade agreement with south korea. he aims to reduce the number of people on welfare by 25%. possibly tax cuts for low and middle income earners by 2017. it would be just in time for the next election. this means it is steady as she goes, morris the same -- more of the same. >> i stand here ready to lead our country and to work with like-minded parties to continue to provide the strong and stable government that is working for new zealand.
>> john t said he was -- john key said he was humbled by this result. new zealand has a proportional representation system that was designed to prevent any one party from holding a majority. he has managed to win 61 seats in the house. he will be able to govern alone. >> that is very significant, the first single majority -- single party majority since 1996. john key seems to be immune to voter fatigue. how did he get back with an increased majority? help got a good deal of from the opposition. -- laboure laboring and green parties. they do not work very well
together. into that fray walked another party, a new zealand first, which is centrist. they count much of their support out of the left and very little support out of john key. the leader of the labour party committed that his refusal to work with the greens was at stake. down.refusing to step you can imagine what will come next. possibly the worst miscalculation of the campaign -- they entered the political marriage of m dot com.e with ki he lost his seat. voters considering the sellout. down and key sits
looks at the rabble sitting opposite, he could be forgiven for dreaming up a fourth term. >> paul allen, thank you so much. let's take a look at the market reaction. there is conviction in the markets in new zealand today, up 1.25% on the heels of the john key victory, a record election victory. new zealand dollar spot is strengthening. we are counting down to the open in japan, korea, and australia in about 45 minutes. nikkei 225 last closed like this. it was the highest level in seven years. that is the level we are seeing it at right now. nikkei futures pointing to a slightly lower open this morning. the dollar-yen is strengthening. still to come, a head start on
>> ipo buzz continues in the u.s. this week, this time in the banking sector. su keenan gives us a head start into the key events. >> the week ahead on wall street kicks off on monday with the latest housing data. sales of previously owned homes likely rose for a fifth straight month in august underscore and what would be a gradually improvement in the housing market. that is according to a bloomberg survey of economists. on tuesday, barack obama begins a three-day visit to new york. he will participate in the new york nations climate summit. followed by a speech at the global -- clinton global
initiative. ipo is preparing to launch. isizens financial group pricing its shares in the largest initial offering of an american bank since goldman sachs went public in 1999. due out later in the week, orders for u.s. durable goods probably slumped in august. we will hear about that on thursday. friday, we will get the latest on gdp. the u.s. economy probably expanded in the second quarter since the third quarter of 2013. -- nikeings for reporting court early results in the week ahead. su keenan, bloomberg, new york. >> let's get a closer look of the other key events.
joining us live from sydney is equities economist at commonwealth bank. thank you so much for joining us. you had a big g 20 meeting there over the weekend. a warning that potentially we could see a lot more excessive risk in this global environment of cheap money. what are your thoughts? think there is risk, investors taking risks in this environment where you do have the money flowing in from the central banks. you have the u.s. winding up stimulus. is the riskry versus return. inflation. given that scenario, it means they can look at lifting rates off the flows -- off the flows
-- off these lows. even here in australia, the new norm is probably around 3.75% rather than 5%. overall, there is an improvement in risk appetite. confidence levels are listed. some of the uncertainty has been removed. the new zealand elections got done and dusted. it allows investors a little more certainty moving into that christmas spending. . -- spending period. >> santa claus is coming to town and let's see how investors like that. a win for john key in new zealand. news for overseas
investors? will this bolster confidence in new zealand? >> very much so. the economy has seen some strength over the last year and a half, driven by the housing recovery. the fact that you are seeing the certainty around political risk being removed is a key driver. in australia, we have held issues around -- had issues around political risks for years. the new zealand economy will see further strength going forward. investors are focusing more on returns rather than risks. that is something the central bank in australia has also commented on. but we have been focusing on is more of the risk profile and it .as been a risk-averse nature we are starting to see a turnaround in that metric. we are not expecting any significant rate hikes in australia any time soon.
it will support the growth story going forward. >> currency is doing some favors for japanese equities. the yen is continuing to be a catalyst to push stocks higher. walk about that a little bit -- talk about that a little bit. we are getting pbi data from japan on friday. we are seeing some big gains for japanese equities. how long will the sustain itself? clear boj has made it that they will continue this program and it is working finally after a number of years growth.flation, no you are starting to see the strength come through. inflation is nonexistent in japan at the moment. itt analysts uprising in --
is pretty much in line with targets. the yen is boosting the exports out of japan. probably very likely that you will see the tourism numbers continue to be strong. the japanese economy will continue to strengthen. >> diverging from all of this is the u.s. we will get a revised figure for the u.s. gdp for the second quarter. 4.2%.% of from the fed is going to go down the path of winding back the stimulus. expecting rate hikes around march or april next year. >> thank you so much for joining us from sydney. equities economist, commonwealth bank. we had to the front line in eastern ukraine, the latest on the crisis coming up after this
you could forgive the soldiers outside this town in eastern ukraine for failing to be friendly. last time strangers made an appearance, the local say they came with a hundred tanks. this front-line city was saved or the cease-fire. -- by the cease-fire. it is an ukraine's industrial heartland and this is steel country. that their plant is owned by ukraine's richest man. 50,000 people toil round-the-clock at just two of his plants. this one plant can produce a
quarter of all ukraine's steel exports, enough to make 100 aircraft carriers. halvedion has nearly thanks to shortages of the coal that comes from rebel held territories. his appeal to his workers not to join the rebels is credited with keeping at least some of the east under kiev's control. $500 amount pay for a steelworker is good money here. many of his factories on the other side of the front half shot. -- have shut. factory workers also take heart
in police patrols to maintain order. not equipped to stop an invading army. visit, oneshort checkpoint was shelled, three ukrainian soldiers wounded, another three suspected separatists arrested. more than anywhere, the city is keeping an eye on the city. what happens in this front-line town matters far beyond its borders. >> up next, cutting down carbon emissions, but his nuclear the way to go? lauren that went "first up -- more on
willis softbank follow the rally? alibaba's biggest investor opens at the top of the hour. china topped per capita pollution levels for the first time. and, game on. virtual reality comes to tokyo. morning to you, i am angie lau, let's check in on markets this morning. this is what it looks like in new zealand, 1.25% up as john key takes a new term. a decisive victory. at 8 --ar spot is $.81. let's head over to japan. it was a high close for the nikkei 225 on friday, the highest in two years. futures pointing to a lower open
as the yen strengthens today. chinesel know, many factories have a pollution problem. there is evidence that it is getting worse on a per capita basis. this is not something that china might be proud of. >> no, definitely not. this is a global problem, of course. the united states one of the biggest emitters as well. china has a big problem. it is a developing nation, and it is getting worse. chinaons during a 4.2% in last year, to surpass the european union in pollution levels per capita for the first time. coal use is the big culprit here, because of all the energy needs, and much of the generation is fed by coal. gases declining,
1.8% as a result of weaker economic growth. the u.s. saw a nearly 3% rise. in india, 5.1% increase last year. all of these combined accounted for almost two thirds of emission globally. more importantly, it shows that we as a human race, angie, has already is viewed into the atmosphere two thirds of the under scenarios that scientists say can avoid it reversible changes to the planet -- irreversible changes to the planet. if this continues, be reached in 30 years time. limit will be reached in 30 years time. must fall for several years to keep the world from warming more than two degrees celsius. ast is the level identified
the limit before dangerous to climate change really kick in. headed the wrong direction down what should be a two-way road. >> no doubt. not only choking you and me today, but joking the future. if things are so dire, are we closer to a packed to limit emissions -- pact to limit emissions? >> not at all. co2 growth is worse than it was in the 90's. ban ki-moon is trying to gather business leaders and environmentalists, anyone that will listen, starting tomorrow at a summit in new york to spur dialogue on a global agreement. barack obama will attend, but the top leaders of china, india, and germany will not. they are trying to get people to make pledges for the global [act that would kick in by 2020/ .
there are varying opinions between the developing world and to develop. >> trading these guys for quick growth. stephen engle's, thanks for that. other stories around the world. negotiation, a power-sharing agreement is reached in afghanistan after the election. the runner-up was appointed chief executive. both sides accused each other of fraud in the election, which began in april. the final tally of votes has not yet been released. shiite rebels in yemen to they have signed an agreement with government to end the country's political crisis. ais is after they seized number of strategically important buildings in the capital on sunday, including the defense ministry and central-bank. it is reported that a new prime
minister will be appointed in a unity government created within weeks. the yuan refugee agency says around 70,000 people crossed the syria and a 24-hour. --nd hundreds of thousand for our period, and hundreds of thousands more are expected. lyon has completed a three-day lockdown to try to stop the spread of ebola. has completed a three-day lockdown to try to stop the spread of ebola. 560 people inhan sierra leone have been killed by the virus. hundreds of thousands of people across the world took part in protests on sunday to raise awareness of climate change. they are calling for greater use of clean energy.
the global day of action comes ahead of the u.n. the climate summit the begins in new york on tuesday, and is due to be attended by 120 world leaders. china and india say they will not be attending. >> i hope that this voice will be truly reflected to the leaders when they meet on september 23. climate change is a defining issue of our times, and that is no time to lose. if we do not take action now, we will have to pay much more. >> for more on the meeting and the use of alternative energy sources, we have a bloomberg intelligence research analyst. jack joining us in the studio today. china and india have participating in these talks -- note u.n., that
participating in these talks with the u.n., but what about alternative energy? regards to china's producer patient, they do not -- india's per dissipation, they do not want the western tell them what to think. -- participation, they do not want the west to tell them what to think. in terms of china, they are building wind. even in india, it is accelerating as well. there is absolutely no question building are out there renewable energy as much as they possibly can. a little political spot, but they are doing something. china is about to have its first nuclear ipo.
what does that mean for the sector, and what doesn't mean for investors? >> we are expecting that towards the fourth quarter. in terms ofnk that raising funds it will be enough to even build one nuclear power plant, but what is important is transparency. a big perspective gives you a lot of information. >> a lot more to delve through. that is why it is good to talk to you as you analyze that information. but tell me this. how important is nuclear in asia to address the issue of climate change? >> globally, there are not a lot of countries building nuclear power at a fast rate. in asia, you have japan with 56 gigawatts, that a shutdown for now. for 2020.me back
south korea is building nuclear as we speak. not as accelerated as china, but still. taiwan, big? question over whether they will shut down. in china, right now, 18 gigawatts. that number is going to grow exponentially. day is at the end of the a base load. renewable energy helps, but you really need your base load, and is only one kind of baseload, which is zero carbon, which is nuclear. you have hydro, but that depends on the gods, so to speak. whereas with nuclear, if it is safe, if it is transparent, --le monitored, well-monitored, it is extremely useful.
if it replaced the number one source in china right now, coal, it has to be nuclear. thanks so much, joseph. in sports, the singapore grand prix. it was a big run for lewis. he led a comfortably, overcoming his teammate, retired with a technical failure. won- on -- by 15 seconds. it was also a good run for red bull. a little later, we will hear from the infinity red bull racing team principal. but coming up next, after frenzy at the new york
>> time for a look at some of the stories making headlines this morning. alibaba remains the top story. stellar debut has lost it into the ranks of the world's top 20 companies by market cap. they finished up 38% following the record-breaking u.s. ipo. alibaba is not valued at just , making abillion bigger then amazon, and facebook. one of their biggest stakeholders did not do as well.
yahoo! stock fell, making the company less soluble than its asian asset. about $40 cap is billion. yahoo! japan is worth about $45 billion. some say the decline will continue. softbank is in line for a windfall after the new york listing. they are forecasting a game of four $.5 billion -- $4.5 billion. they said the ipo is an important step for ali baba's step to go global. >> we continue to grow inside china, but also grow globally. makes a in new york good entry into the global expansion. >> those are the top corporate headlines this hour. >> my next guest says that
alibaba's decision to list in the u.s. is a wake-up call in asia. let's find out more. center ofctor for the asset management, research, and asset at business school. he joins us from singapore. thank you for joining us. evaluation currently stands at billion.lion -- $231 a 38% increase on the first day. is that just the beginning, or where do we go from here? >> the story of alibaba is really the story of the chinese e-commerce market. that, the chinese e-commerce market is only 9% of total industry consumption in china, and it is bound to grow. economists estimate that the chinese e-commerce market will soon surpass those of america,
britain, japan, france, and germany combined. --baba is personally vertically positioned to take full advantage of that. we heard from jack ma, he said it was an opportunity to be more transparent to the world's investors. does this mean that we could see a trend towards more transparency of for chinese companies that list and trade it right here in hong kong or asia? well, this is a very important step for the chinese economy. and it is a very important step for ali baba. fact that the company is being publicly traded at the new york stock exchange, it is subject to a lot of disclosures. we are certainly going to see some transparency. talking about transparency, i would like also to mention that
the transparency is the main variable when it comes to the share structure, because they are more valuable than comparable single structure stocks. >> that is a little bit of a controversy. that is why it did not list here in hong kong, that is why it listed in new york. is this a wake-up call to markets here in asia? if they are to woo the next alibaba? >> it is, indeed, a wake-up call, as i wrote recently. is that the happens dual structure is very common in the united states. in the last 30 years, about 600 companies went public using a dual class share structure, including nike, be stu -- these are, and manchester united.
popular among internet firms like facebook, google, and linkedin. i think it is finally time to start the debate and cost -- talk about the cost and benefits in the asian markets, especially hong kong and singapore. >> ok, and singapore, let's talk about the investors who have seen a big pickup. we are seeing the changes in the bloomberg leader index landscape. certainly, one of the early ,nvestors in ali baba, in 2011 how much did they gain in the alibaba ipo and the 38% surge? temasek invested 1.6 billion u.s. dollars in 2011. it is interesting that at that time alibaba was by you that 32
billion u.s. dollars. at its ipo price, it is invited billion -- valued at $168 billion. they have made more than a return on their investment in three years. >> thank you so much for joining us. jack ma is already china's richest man, but the ipo has given his net worth an even bigger boost. how much is jack ma worth now? >> more than $4 billion before the ipo, now $26.5 billion. which is not a bad some. -- sum.
he did actually sell some shares in the ipo, he now holds 7.8% of the company. formally he held 8.8%. there is also joseph, the cofounder and vice-chairman. billion.th $6.1 , helso sold a few shares owns 3.2% of the company down to 2.6% of the company. >> instead of paper dragons, they are actually real life billionaires. >> that is right. jack ma has gone up the bloomberg billionaires with a new ranking, but he is not the richest. he is the fifth. he is worth $31.2 billion right now. the property billionaire is at
the tokyo game show wrapped up over the weekend, with more than 400 exhibitors showing off not only new games, but also new technology. once again, virtual reality had s -- headsets were the star of the show. tokyorecent years, the game show has been overshadowed by younger upstarts like e3, but this veteran is still going, attracting a record 431 companies. among its exhibitors, another veteran.
struggling,n a hoping for a revival in its games division. they offend their hopes on the morpheus, a competitor to the oculus rift. >> it is so strong and a lot of fun. what is most impressive is the quality graphics. i think compared to the oculus rift this is the. . i am curious -- this is superior. oculus was bought by facebook for a cool $2 million this year. device isony's targeted to use with the playstation 4, or device -- the oculus device can be connected to the pc. >> for those who like the gaming experience to be a little less hermit like, there are more sociable options.
google made their first appearance at the tokyo game , emphasizing the spread of gaming across mobile platforms. >> in the past, if you wanted to play a videogame, you had to go to the game. you had to go to a game center or your friends house and play in their living room. but now that the games are available on our devices, to everyone, people who, in the past, would never think of themselves as a videogame player are now playing games. >> for serious gaming, a phone or a tablet will never cut it, so also on display, new consuls. dell is trying to enter this competitive space. the relative safety of the exhibition circuit and hit the market at the end of the year. before we end this hour, three new releases top the north american box office this weekend. " maze runner" raced to the top.
markets in the asia pacific. to australia. infraction lee lower and in the aussie/dollar is strengthening. over in korea, the kospi is getting underway as well. how markets are trading. is strengthening. the u.s. dollar. japan is just opening. nikkei. seeing a bit are of a selloff of this market. analysts saying perhaps the market is technically overheating. outttle bit of that playing in japan. dollar/yen is strengthening. that is part of the thinking. we are waiting for shares of salt bank to open up and that is the first time will see the action phone alibaba's debut --
we will see the opening of alibaba's debut. and rich us with your knowledge on ali baba. >> i have 20 pages worth of stuff. the are so many angles. softbank is one of them. we are waiting for them to open up. they are said to open a lower. we are seeing weakness. after friday for the nikkei. a huge debut. at, north of $230 billion. more than facebook, more than hsbc. google areosoft, and the three tech companies of valued more than alibaba. if you look at multiples and compare them to the chinese stocks in hong kong, is it still a good buy? $68,they price the ipo at
that was basically a discount. a discount because of the surge has been raised. trading at 39 times the estimates. is in the region of $37. will we see more upside? yes. it will continue to outperform the market. simply because of demand. andre able to get in perhaps able to get in on the first day. longer-term? >> softbank is opening down. again, probably because the markets are seeing some downsides. nikkei 225 and we will get it off in a bit. a fairly big gain from the ipo. about --rm, he talks
so much stuff to talk about here. how does he plan to freeze longer-term value? >> i think the very important thing is we want a company, not a buying company but to make sure our ecosystem hasn't the mobile. anything that can help small businesses grow we will consider. >> an absolute windfall. injected about $825 million, more than a 500% of the combined investors according to one of our sources. , general atlantic, $75 million. billion, of $2 according to one of our sources. >> it is interesting because jack ma that we just played, on of emily chang who helped him -- who asked him what
would he by yahoo!. he said,, no, acquisitions are not our focus right now. what about a yahoo!? what happens to them? >> where does it leave them? lots of facets to yahoo!. beenme extent, it has [indiscernible] you would by the likes of yahoo! if you cannot buy alibaba. listed, alibaba is where does it leave yahoo!? ofyou look at the valuation a yahoo! in the u.s., it is worth about $41 billion and that is less than the asian assets. take an alibaba and a stake in google, after the listing, it was laid there. yahoo!'slying value of is virtually zero. it has remained a big
shareholder, the largest of alibaba. $75 billion is how much is at stake here. we spoke with the chairman and he was also on the floor one day when the opening cell. listen. >> alibaba continues to grow inside of china, but also rose out -- but also grows out. goodpo in new york makes a inkling into the mobile expansion. >> i mentioned earlier, the forecast, ¥500 billion. about $4.6 billion. they have yet to come out with exactly how much. withinll be booking that six months ending september 30. >> thank you for that, david. a lot of people look at big gains.
singapore exchange is for casting a two-year hiatus for chinese following an agreement which makes it easier for chinese companies to sell shares. let's get more from our correspondent. has, to what extent will the ipo market change here? >> we are hoping it will be a significant change. it was difficult for mainland companies to list in the lion city. befored to incorporate they can list here. now with the agreement, they do not need to. it is easier. it is a simpler process. they are expecting get to pick up. the last one listed in singapore was back in 2012. a long time coming. billions embrace 2.2 dollars from ipos this year down to more than 50% since last year. average trading volume down.
forward to a pick up. singapore has been proactive in trying to revise all of that. it has been wooing chinese companies. setting got across china to explain new rules to enterprises and private companies and it has to. unlike where you are, it is not a natural influx of ipo's. one a person told us a factory inside of china and they are all going to hong kong. >> the thing is we saw one of them between hong kong over to the new york stock exchange, faitha putting their ipo in a new york stock exchange. essentially because the government structure that is in place here that they wanted to try to figure out to do a class structure. is it possible that singapore may do something to lure these
type of ipo's to their shores? >> that is what singapore is trying to do. but, it will be difficult for singapore. remember a trading link between hong kong and forces expected to begin a next model will give hong kong a boost. hong kong will be a gateway to mainland companies and that is always the showing. back to rally we saw and the hang seng is the biggest. hong kong is not to giving up. introducing measures to boost the ipo market here in the past three years, singapore has used rules to allow the listing of companies without earnings strength wreckers and offering dual concentration. that there isow greater flexibility here in the
lion city. alibaba lost out and we want to gain. >> yep. that.you so much for let's check in on new zealand right now. extendingike it is the gains. a lot of conviction the cause of that is what the polls. conviction for the national party winning 48% of the vote securing the first single party centsty in the parliament 1996. this is after prime minister john was returned to power. result.ide 48% of the vote. he said he will boost economic growth by cutting red tape and cutting barriers to business. it fired ank said one of its currency traders after internal checks showed irregularities over how he
recorded trades. the employee base in dorchester -- deutsche bank's sydney office was suspended. it is reported he cost the bank more than $4.5 billion in losses. chinese authorities are looking to galaxy security. they said at three staff are being investigated for personal reasons and they are cooperating. the chinese brokerage has been under investigation for bribery. warning from a group of 20 cheeks. low interest rates could lead to financial risk. this came in a communique delivered at the closing of the and australia. let us had it to paul allen. what disorder risks are the g-20 leaders talking about? >> angie, the canada prime
minister said in a this environment of low yields, there is a search for yield and that it needs to increase risk-taking. if there was a real appraisal, there can be a lot of volatility and big losses would result. christine lagarde said they have the tool's to deal with it. tore was some debate as well include the g-20 communique a warning to investors to be vigilant about this sort of risk-taking. it was not included in the communique and of the end because that was concern about the market about leaking that. but, keeping stimulus in a place has its risks and withdrawing it has its risks. we have been seeing some of the impact as the u.s. wines down
the program. there's been a big impact on the emerging markets. suggestions that the rich role of stimulus will harm one of the g 20's other goals of lifting economic growth. >> that is something the australian treasurer said. he is the chair of the g-20 finance and central banks and governors meetings. growth toto add 2% the g-20 economies over the coming five years. of course, there's a big difference between saying doing that. if we take indonesia, the finest minister -- the finance minister said it could increase capital outflows and the benchmark is now 7.5%. 2009.ghest essence he said growth may have to be sacrificed to keep the economy stable.
it you would take the top job october 1? >> not really. a lot of things happens. i joined in india and i moved over to china. and now i am [indiscernible] >> what were you responsible for your first job? >> [indiscernible] is a global company. you are taking to the top spot from temp parker. what are your priorities? changing any of our strategies. we have rolled out our strategies and trying to transform the company from being primarily luggage to a bag company that has great luggage pieces. >> all right. how does india and china both
factor in? >> they are two of the biggest markets. both of them are equally important for us. >> how are you going to get that the growth? what is about the sensibility of the indian consumer with a lot a discretionary money? we know when it comes to traveling, that industry is expecting a large pop up. you cannot travel without luggage. >> exactly. even though we are decentralized kind of company, we try to do market strategies to the new markets. the indian consumer we know very well. and also the american or german or swedish consumer. the strategy that is really helping us to grow in emerging companies like india and china and many others. you said, you started in
india 18 years ago and got to know the region very well. how important is the growth in asia, india, china, and the rest and all of the discretionary dollars and people around to the region are aspiring to middle-class and beyond when it comes to travel? >> one of the biggest trends, there is a secular growth to mobile traveling growth. as you know, they are expecting 100 million chinese traveling. which ise-class blooming the demand for travel luggage. seen a slowdown in china and that has hurt luxury makers as well. has it impacting your growth forecast for samsonite? >> not really. we are really not luxury. you can say we have multiple price points. tourists in the
midmarket. what we have seen it some slowdown in samsonite growth. it is not [indiscernible] services areican midmarket brand which has been growing very rapidly. that is helped us to see a good growth in china. we will see the next couple of quarters, the momentum of china increases. >> how so? but cuts of their economy will grow? is that your optimism? refocus more to towards the midmarket. end oflooking at the top the market in china because there is more money is there. really focusing on the mid segment of the market and that is helping us. there is really good growth. >> you mention a lot of brands. and there are a
lot of acquisitions and you made. can we expect more of that in the next year and years to come? >> absolutely. it is a strategy. it is about trying to get at joining slices. a strong luggage brand. it is also by definition the potential to get extended. >> what are you looking at the right now? anything looking for that is kind of a joining space. exactly luggage but it could be opportunities for us. not necessarily but other brands that could be interested. >> not a just a luggage? >> no but similar space like handbags.packs,
>> we can see more from you. talk about the impact, the global economy on samsonite. equities have been on a take air this year. everybody is worried about what the next year will bring. any concerns for you? that concerned. we think traveling is human nature. .he secular growth it is down 4% or 5% and that is true for u.s. a european countries and asian countries. we believe that what is happening at the global level. >> you are a big bali would fan i was hearing. fan i wasod hearing. can we expect a sum of that? >> sure, why not.
weeks of games. the longest stretch since get this, the beatles were gearing up to release of their out about "sergeant peppers." i released growth number for the second quarter. some currencies have the potential for the u.s. dollars. one of the bigger losers is the taiwan dollar. the worst week in the six months. global investors are putting their holdings of taiwan shares. for 7.7 degrees in august will stem the outflows. finally to new zealand. the dollar is seeing a start the session early on monday. following selections all prime minister john key returning to power. securing the first single party majority in the
country since 1996. coming up, the dollar index. a little bit weak out of the gates. mentioned the kiwi/dollar. there we go. a little bit of agains. -- gains. taking a look at the euro/sterling cross. a two or three week low. coming off of the scottish vote. the stories driving in europe markets this morning. >> thank you, david. the dubious milestone for pollution. we will be in beijing for the latest when "first up" returns. ♪
alibaba's greatest investor. thanmeeting even more europe, china jumps to the top of new pollution data. could virtual reality provide the answer for sony's struggles? that is coming up. good morning to you. markets trading and the asian pacific. this what it looks like. a bit of a selloff in south korea and australia as well. new zealand surging. the nationalfter 48% of the vote over the weekend. it is going to be the first single party majority in new zealand a since 1990 six. let us head over to japan because this was the nikkei 225 looks like.
let's look at softbank. a little soft. alibaba's largest shareholder with a windfall after that new york listing. over $4 billion. shares of this morning are down 3.3%. not just softbank, other investors. rosalind has been breaking out of the calculator trying to figure it all out for us. about are talking softbank. other companies are selling to make the same amount into their investment. about 825 million dollars a few years ago and are set to make a profit. a substantial amount. just on ther the -- ipo. they hold onto a 2.2% stake. we will see how they are projected to do as alibaba
continues to trade. general atlantic, a private the 70firm, they put in $5 million back in november and now it is worth more than $2 billion. -- $75 million back in november and now it is worth more than $2 billion. thaner selling worth more $9 billion worth of shares in terms of revenue the last 2 years. if they hold on to a stake of but now 16%. the person who will gain the most is probably jack ma. he was already china's richest man and he sold shares. $26.5 billion. and of coarse, he cofounded -- and of course, he cofounded, joseph tsai.
there you go. jack ma is climbing the ladder. still not a number one but a number 2. the top person is worth over $30 billion. >> he only sold a percentage of his stake? >> a very small percentage. now he owns several .8%. >> 1%. -- now he on 7.8%. -- >> 1%. he sees the upside. >> he might still have the edge. >> absolutely. tropic enthusiasm this time around. ipo buzz continues and of the west this time and a banking -- and this time in the banking sector. onthe latest housing data
monday. sales of previously on the homes likely rose in august. underscore will be a gradual improvement in the housing a bloombergding to survey of economists. on tuesday, president barack obama starts a three-day visit to new york where he will participate in the climate summit followed by an afternoon speech on the first day of appointments. fresh on the heels of the ipo, aful alibaba financial ipo. citizens financial group which is the u.s. unit of royal scotland is pricing the shares and the largest offering of a u.s. bank since goldman sachs went public in 1999. for you was adorable girls probably slowed and we will hear about that on thursday. we'll get the latest on gdp. goodses for u.s. durable
probably slowed and we would hear about that on the first day. the earnings parade continues. nike is among companies reporting quarterly results in a the week ahead. su keenan, bloomberg, new york. >> a look of other stories we are tracking. over to sherry. the us how you in luxury brand reported a 21% drop in first-half groups. -- thee a italian luxury a italian luxury brand reporting a 21% drop in first-half drops. bloomberg.com -- [indiscernible] it can be used as a second
maps are expected sony. missable she -- mitsubishi is gaining. it will supply as more than 170, 000 pickup trucks for fiat. this will help fiat conserve cash. those are a look at the top corporate stories. of many chinese cities have a pollution problem but now there is evidence it is getting worse on a per capita basis. correspondent joining us from beijing with the details. to do isl you have bring in beijing a you know what the problem is. >> that is hazardous to your health. this summer has been pretty good. the power generation and of the winter starts kicking up
and the pollution gets much a worse. emissions are growing 4.2% in china. it will surpass the european union per capita for the first time ever. this according to the latest study. biggest hope for it. use declined client. the u.s. saw a nearly 3% rise in emissions in 2013. india saw a 5.1% rise. all of the few regions accounting for more than 2/3 of global emissions. 80% of the growth in global populations. not surprisingly, a coincidence, not. it shows the human race, that is us, we finally spewed into the atmosphere 2/3 of the carbon allowable in a the scenarios
that scientists say will avoid reversible changes to the planet where we live. if pollution continues at this or rate, the limit will be reached in a 30 years. we will likely be around then if we do not breathe the air here. we are heading into the wrong direction and scientists say emissions must follow by 5% or more every year for many decades. to keep the world from warming more than 2 degree celsius. that is the limit before changes to climate kicks and. i hate to be flip it on a desk but i have covered this so -- to be flip on this a i have covered this so much and we do not see much tangible movement on ss. and a you and i've not be here for the next decades to come but their kids and their
kids -- >> you will be. both of us.e for the future tenuous if we do not. thank you for that. hundreds of thousands of people across the world took place in a protest to raise awareness of climate change. they are calling for greater use of cleaner energy. u.n. summitof the that will be unattended by 120 world leaders leaders. china and india said that will not be unattended. >> such a strong power in energy and a voice of people. be trulyis voice will reflected to the leaders when in they meet on september 23. climate changes, the defining
issue of our time and there is no time to lose if we do not take action now. we will have to pay much more. more on the meeting and a use of alternative energy sources, we have our utilities are research analyst joining us. ands interesting that china india are not attending. what are they doing? >> they are doing and a norma's amount. at least china is. -- an enormous amount. a of zerointroduced carbon generation. of course. a lot of policies to regulate more strictly the coal so those power plants can be a little bit more environmentally friendly. a little bit. what you do not have today. cost efficient,, clean coal.
the cheapest energy source. if this is the country that test rated clear skies for incredible industrial growth. we have seen that over the past decade. could nuclear be the answer? be theear war not to only answer but it is the key of coal. it is the base of the power generation. what happens is you will have all of the wind and a solar you want but after the end of the day to replace the base load which is coming from coal and frequently gas, you cannot do it overnight. you need a lot of a very smart grids to have won a to percent total. at least -- to have a 100% total. it is the key tool china to
replace the base load which is whole. country'snt of the energy. kilowatts hours come from coal. the planshow clean of are, you will get emission. otherlear, of course, types of issue. china could see its first nuclear power ipo coming online soon. does that change the sector and what does it mean for investors? >> i think 2 points on china's , itear power companies, cgm will be another in shanghai. number one is more transparency. the ipo perspective which is in at the stock exchange website is hundreds of pages along and we have to read it. >> have you started? >> i have started. there will be increasing
transparency with investors relations as they hold meetings. the second one is more choice. inht now, you can invest power plants that are listed or opel companies. now, you have one more choice. critical when it comes to clearing the skies in china. thank you so much. joseph, bloomberg terminal subscribers out there. , how much a risk does china's slow down pose for the property sector? you are watching "first up." ♪
story. probablye declines, looking at it this with a dour faces. for everybody else, it could be lower rents or more access to the property market. what can we expect? of the day,city and it is proven in that prices will fall. at the the end of the day, it is proven that prices will fall. lehman's fell. washington setting almost a zero rate policy. until recently, we had a massive growth in china. what has happened now is you have slowing in china. you create it is a big asset price inflation and i hate to call it a bubble but it is close to it.
it turns the other way and suddenly you go very expensive and raising interest rates. >> china in effect is exported as properties slop into hong kong. is that the right play? because it is exporting and it is exacerbated by the fact you have to have the change in rates. it is almost not about the property market in its self. it is not a huge number of units being built. rich.vestors are cash the simple problem is you have to answer one question, do you think janet yellen will raise rates? there a very good chance. look at china,a it is slowing down right now. prices fell in 68 cities. the last a measure. whatdoes it mean all about we can expect from chinese
policy masters here -- it measures here? we got a little hint. can we see more of this trying to figure out how to put a cushion under the slop -- slump? >> icing so. you have seen a rolling back of a regional. -- >> i think so. what this kind of a structure for the banks to be a little bit more and they will try to stimulate of the market not in an aggressive or excessive away but they do not want to see a slump. they wanted the goldilocks scenario. they will be in a position where they are rolling things back. >> does it mean for the property could in china data we see it offset a little bit by this push towards urbanization?
>> that is always the big underpinning saying. if you want to be crass about china, if you take the long view, there is more than one billion people and if they all buy, you will be a billionaire. roadight have lumps in the to achieve that goal. the reality of what is happening, nothing wrong with the property market in china. we are focused on residential. there's also retail and commercial markets. in retail and commercial, is a little bit lucid because of the market. retail is still strong. a credit issue. the restriction on the bank lending and general concern about the changing growth is causing people to be very cautious with their capital and that is making the yields expand and cap x expand.
developersg property have seen some recovery after last year's dip. and others.erson will hong kong developers continue to do well? definitionds on your of if they will do well. will the stocks do well? my role within a black rock is private equity. there are some very smart people. what is going to happen to the developers are very robust and have strong balance sheets. there will be no wholesale panic. it are bit at adjustments in price and you have seen. very carefully and well managed. there need to be more management -- and adjustments. the new likely interest rate levels that will become from the u.s. >> they are certainly coming when?
>> the tokyo game show wrapped up over the weekend with the more than 400 exhibitors showing off no not -- not only new games but technology. and virtual reality handsets were the show. >> the game show has found itself overshadowed by younger upstarts like e3. this veteran has still got it attracting a record -- companies. sony has exhibitors, been struggling lately. it is penning its hopes on is
game division and in particular project morvious. impact that is so strong and so fun. what is the most impressive is the graphics if a compared to the headwear, it is much superior. i am curious if they can keep the quality when they put it out in the market. bymorpheous was a bought a facebook. they believe they have a superior product. >> it is targeted for use by the psr for. -- it canconnected to be used with a mobile phones. who like their gaming experience to be less hermit like, those are sociable options. made its first ever
appearance at the tokyo game show emphasizing the spread of gaming across all mobile platforms. >> where as in the past if you wanted to play a videogame, you had to go to the game. a game center or your friend's house and play in their living room. now that the games are available on our devices to everyone, people in the past would never think of themselves as a videogame player are now playing games. -- >>for series a gaming for serious gaming, consoles. dell is trying to enter dominated by xbox and playstation. it has a pc gaming crossover. it will hit the market at the year. the all allen, bloomberg. >> three new releases. runner" went to the