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tv   First Up With Angie Lau  Bloomberg  October 5, 2014 7:00pm-9:01pm EDT

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>> no surrender, hong kong's campaign enters a second full week. quarter.e an ugly old sees its longest retreat since 2010. to yougie lau coming live from bloomberg station headquarters right here in hong kong, streaming on your mobile and bloomberg.com. let's check in on markets. to australia now where this is the picture right now. it just flipped into the red.
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we start a new trading week. the australian dollar is 86 u.s. cents. new zealand prime minister will need the support of allies to govern after losing his outright majority in the final vote of the september 20 elections. equity climbing just fractionally higher. 77 u.s.ar is weakening cents. this is what the picture looks like in japan on friday. between shares swinging gains and losses. the nikkei 25 ended the day up one third of a percent. this after we saw wall street gains on the heels of that better than expected jobs report. doj starting its
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meeting tomorrow. the dollar yen is weakening. 109.81. lots of close markets to tell you about. china remains shut for the national holiday. india, malaysia, philippines, and singapore are all closed for public holidays. hong kong's democracy campaigners say they are going to continue their sit in until talks with authorities produce real change. ro testers have pulled back from some parts of the city but are still camped outside of government -- protesters have pulled back from some parts of the city but are still camped outside of government offices. a lot of negotiations about whether or not talks will take place. what is the mood right now? right now one of the deadlines the executive has set over the weekend was that government workers should be allowed to access the buildings
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in order to get to work. foot bridge on a that goes across from the metro station into the government complexes. we have not encountered any obstruction trying to get here. it has been a quiet morning and we have seen a trickle of workers crossing to get into work. there is a road around the front that remains blocked. they refused to be moved. going in and out and i can tell you what kind of traffic there is. it is certainly not a normal cause. the road is actually closed to most traffic on that side of things. that side does remain blocked there.
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this this is actually go back to normal for hong kong. -- the streets are still blocked. say hundreds of protesters more than thousands of protesters camped out. they are living in tense out in the open. they seem to be far more settled in in the positions they have. certainly still holding their ground here. ands are still blocked there will be some destruction to traffic. the metro here says they will increase the frequency of services this morning and as necessary throughout the day. the government wants traffic will be bad. -- ofwere a couple of cup public holidays in hong kong last week. today may be the first day where
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we see hong kong that in full force in terms of number of people trying to get to work. to clears concession pathways requested by see why loan to get people who work at the central confident -- central government confidence? there are concerned -- concerns things could get violent there. >> there has been some progress made on the political front. one of the head of the student leaders came forward and said the house sees some reports in order to get ready for the major talks, which would be pursuing the students and the government. so it's a great meet with hong kong's number two. alice pulled up after saturday after there was some violence in one of the areas people are
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protesting. there has been some small progress getting ready. are three principles they want it to court talks probably go forward. they are they will be on an equal footing, there will be several rounds of talks, and they want the government to execute the outcome of any future negotiations. these are the three principles the midst raiders say they want principlested -- demonstrators say they want to be accepted. so far things remain peaceful here. there may be more word coming out of the government. we will have to see if the government actually comes into to work in a few hours from now. >> piece for now but watching very closely. roslyn chin is on the streets
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for us for occupy hong kong. the protests have now entered a second full week. group has remained bullish throughout. bullish in the face of this? >> to put this into context -- good morning, by the way. there was a massive drop in september. for various reasons people are getting in. whether they think the discount is too big, which is at 26% of the average, that is what you have for the six months in september. it was a drop you don't see every day. we have short-sellers producing your bets. we had investors and etf's. the start when things started to escalate, they started to buy into etf's tracking hong kong funds.
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i think we saw more than 200 million u.s. dollars getting into a lot of these hong kong tracking etf's. portion but a small it also tells you something, because if you buy into an etf it is not just a bet on one or there is an overall expectation the tide will be rising. 26% discount, it's too good to pass up. close on friday, a huge reversal in the afternoon. i think it was close to 400 points. we ended the day in the green on hong kong. this is a common argument that came up last week. 50 stocks. company's here actually make their money in hong kong. we prepared this earlier.
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128 -- 1 to 8. they are basically a 13%. >> name a company here that has the majority. the exposure. , none. were to guess >> you have the big chinese backed companies. but yes. that very hard to imagine even if the protests escalate cause any of that these guys to come up with a profit warning? maybe not. this was brought up, the macro outlook is not so good -- you strip everything out, there is a of de-rating the hong kong
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stock. what you see is beijing having a bigger inputs -- bigger influence on what is happening in hong kong. is not only stocks but investors in real estate seem phased as well. there was a big project that came on the market over the weekend and people seem to be excited about it. , let's put this into context. was by to projects, one henderson land, one was by new world properties. let me get to the details so i don't confuse things. 250 flats available. in the case of henderson you had 100 flats purchased within the first hour. these are only two properties but it shows you many people are unsafe. it is a long-term investment but
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keep in mind you have the agencies, the people that take you out and do everything. they are reporting a big decline. there was a big klein last week. i think it was mid land that had the largest publicly traded real tour here. down to other things. could be just hard to get around. >> it is hard to get around the city. that is absolutely true. whether or not that is a measure of the appetite, people got there and snapped up the apartments. thank you for that detail. you can get more on occupy hong anytime anywhere. download bloomberg to your mobile or tablets. of the other stories making headlines, u.s. unemployment fell to a six-year low in september. this was a surprisingly powerful surge in hiring that saw
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payrolls increase more than expected. president obama says the manufacturing sector is growing faster than the rest of the economy. >> united states has put more ,eople back to work than europe japan, and every other advanced economy combined. >> and it appears investors are falling out of well for with gold. speculators have paid their pets for a second consecutive week. that is the longest retreat since 2010. goldman sachs and security say they expect to see lower prices as the economy picks up and the --lar trades at his highest at its highest in four years. a massive selloff compared to the index. evolution mining down 2.8%. medusa mining down 3.8. -- down 2.5 percent.
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hewlett-packard is looking to split into two companies now. they may separate the pc and printing units from the corporate hardware and service operations. the move may be announced tomorrow as meg whitman looks at new products to cut costs. she is expected to head the enterprise business and become the chairman of the pcn printer company. -- pc and printer company. third-quarter profits may plunge 50%. we have a peek of what to expect. how bad could earnings be? some numbersecting out of analysts. they are cutting their profit estimates on a daily basis. they say profit could plunge to about 47%. sales could be down 15%. if the estimates are right it would be the weakest decline in five years in the second consecutive earning decline for the fourth quarter. we are expecting the earnings out today for tomorrow.
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>> what is hitting samsung sales here? , samsung is no longer having those golden day smartphone business competitions from cheap chinese rivals. manufacturers like xiaomi are selling more overseas. china mobile is taking steps to billion inbout $2 smartphone subsidies. that means customers will have to pay almost doubled to get a samsung device. that would of course help manufacturing company xiaomi, not so much for samsung. the high-end market is still whichdominated by apple, now offers bigger screens. my parents are opting for samsung just because they could look at the screen better. now they do not have that advantage anymore. investors are starting to factor in these challenges.
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samsung has lost about 17% of its market value this year, or approximately $32 billion. >> will they be able to recover next quarter? >> what does it take to recover? >> that is the big question. analysts will need a neustar device, like a successor to the start device, new like a successor to the galaxy s5. still come, putting the fallout of the hong kong protest into perspective.
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>> time now for a look at some of the stories we are going to be following for you right here in asia. japan host senior defense officials in yokohama on tuesday. due to discuss
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technology and security operations. it is likely territorial disputes with china will be brought up. we are expecting the latest productions on el niño. meteorology is due to release its latest read on the likelihood of it taking place. intoño brings sharp swings weather, including drought conditions in southeast asia and heavy rain in south america. and yum! brands reported earnings on wednesday. buildave been trying to consumer confidence following a food safety scandal. we will be watching fast retailing as it was report on thursday. na, kei nrs li arekori, and novak djokovic all represented by this durant
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-- by this brand. mark, we have had the privilege of speaking with you right at the start of occupy hong kong. you said then that you did not really see an impact on the economy. you saw a weaker selloff. do you still hold that view? pretty -- we are coolpproaching a pretty time with the standoff being broken a little bit in terms of allowing access to key government offices. we know secondary schools are open today. we will see how that potential negotiation goes. a critical week read we saw week numbers out of the euro -- a critical week. we saw week numbers out of the euro. the market had a good read on u.s. job numbers on friday. >> there is news happening
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elsewhere in the world. >> the g 20, imf world bank, a number of things going on this week. and work in hong kong. for your clients who are looking for the outside -- looking from the outside in, how do they perceive this story and how do they -- how does this impact their sentiment? >> we are in cosan communication with our clients. ,> what are they asking you? how much it is impacting the market, whether or not we see it as a disruption to business, how the general market is progressing. we are given a constant read. life picturesng of the protest. it's in the 11th day, second week. most people took the week off. is business as usual, at least from the perception of people wanting to get into work.
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if this goes any longer, do you think that will -- that impact will it infringe on your outlook? >> we have been focused -- that clearly has had a significant impact. we have done some projections suggesting it could be as much as 0.3% of growth. see a prolonged period of inability to access the retail sector, it will hit property prices as well because people cannot get to the new developments. at the same time we have seen a very significant move last week in mainland china. it moves to ease concerns in the property market, changes to the that we, conditions
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expect to see a very significant pickup. certainly saw the pickup and the reversal. let's look more broadly as well as he we have an extraordinary u.s. jobs picture with the unemployment rate dropping below 6%. we also have more than expected jobs figures coming in at another 248,000 plus. if that flows through to asia, how do we set ourselves up here? >> the markets in the u.s. took it as being positive. a strong rally in the dollar, as we saw. the equity market finished strongly on friday. if you look at the numbers, again it is a mixed picture. you see a number of people leaving the job market perfect -- the job market permanently. wage numbers not grow at all, and that drives consumption. relatively weak.
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although the headline was positive and it was seen as an almost rectification for the previously week august, i think we are going to see more from the fed in terms of two steps forward and one step back in the sense that they will put in measures to try to demonstrate their commitment to this interest. >> one word, the rest of the asian outlook for 2014, good or bad? we will see it triggered by the weaker yen and what is going on in the dollar. >> we will leave it there. mark conan joining us this morning. flights continue to be halted in japan. more on that when first up returns. ♪
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>> some of the stories making headlines around the world, the first person diagnosed with the ebola in the united states is said to be in critical condition. he is being treated in a hospital in dallas. people who came into contact with him are being monitored. the center for disease control says no one else has shown signs of the virus. the search for victims of last weeks volcanic eruption in japan has been suspended by bad weather. four more bodies were recovered on saturday, taking the total number of deaths to 51. dozens of people may still be missing, although it was not clear how many hikers were on it
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when it erupted. and japan's leading airline's says services will be disrupted again today as a powerful typhoon crosses the country. they have canceled more flights, taking the total to 257 and warning passengers to expect delays. rival japan airlines cut flights and rail companies are reporting delays and cancellations. there is a warning about tornadoes now in the tokyo region. the typhoon is expected to clear japan early morning. coming up we have a lot more as japan's sales tax hike
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good morning. it is 7:30 and day of 11 of the protests. we are waiting for the showdown to come to a head. thathief executive says protesters must clear a pass way and forget about daily business. they must let the city get back to business.
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you are watching first up. of the protest. the democracy campaigners keep up the pressure. reasonable conditions. they release the latest view of the economy. the higher sales tax affected spending. bloomberg has been crunching the numbers. good morning to you. we have breaking news. fore are inflation figures september. paul is joining us. we have this measure. >> there is a slight rise in inflation. up in september
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are fruit and vegetables. tobacco is up and travel and accommodation is up. false andffset by fuel. it is interesting. securities have revised their numbers to an increase and that is down flat, as well. there is the removal of the carbon tax. we have had flat reads and a slight rise. andof those see inflation it keeps the number towards the lower end of the reserve bank of the inflation bank. we have those figures now and securities expects the trend to continue. >> let's see how these work. but see how securities are
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going. are extending losses as we speak. they are down. the aussie dollar is weakening. in other markets to tell you loss of the outright majority. and it is less than the initial result. we are seeing equity markets shrugging that off. the dollar is weakening. we are also counting down. let's go over to japan. close of one third percent higher. futures are pointing to a higher open after better-than-expected jobs reports helped to boost confidence. that really helped boost equity markets on friday. is starting meetings
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tomorrow. the dollar yen is weakening right now. took a hit when tokyo raised sales tax. on the, how are consumers and businesses faring in. we are joined by the business team. let's talk about the impact of the increase. this impact retail? >> yes. we look at spending and it is down since the sales tax was implemented. it is down. we have supermarkets and convenience stores. immediately after, things improved. this is household spending and it is down and what we have seen down year by year.
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things are starting to improve. >> there is a greater impact on you haveindustry and annualized that number. it has been down year on year and there is quite a bit of difference. if you look at the stoxx, they have traded differently and global auto companies and the u.s. market have been doing well. are they dealing with this question mark have they come out with science and luring the consumers in? >> there has not been a lot of incentives in the japanese auto markets and i think what the automakers are trying to do is offset that.
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products oute new and they are try to offset the japanese markets? the market share .s >> what about the stocks that depend on the economy? they added products. running in excess of that. have dealt with that for more than a decade and it is a bit of a shock. offerivate label products better margins than some and it gives them more leverage. pricere pushing through
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increases and we are seeing them more aggressively go after overseas tourists. if you think about chinese tourists, they are up and they are doing a number of things to attract those. delivery services with hotels and we think about next year with consumers having the opportunity to buy in the stores. >> the weaker yen makes traveling to japan so attractive. it increases the power. what could help the recovery? the sales tax increase, right? >> it is supposed to be 20% of
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that. she it is rather vague. with the impending sales tax coming up next year, the automakers are hesitant because they do not know what it will be like when the next tax increase comes into play. it is hard to say. will hold up. >> thank you for the insight. thomas and stephen, thank you so much. let's go to china now. the central bank says they will maintain a prudent monetary policy and egg knowledge is complications in the economy. stephen engle joins us now from beijing. what are they saying?
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if you are ifying you are out there tuning in from vacation, thinking that something is happening in china, not a lot is happening. you can go back to your vacation. nothing major on the statement. this stability in the economy. complications cannot be underestimated. iny cited a diversion's international economic situations and out it included positive signs for monetary aging in the euro zone and difficulty in the emerging economies. those are the diversion things working together right now. ae chinese economy remains in reasonable range.
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problem. is not a it keeps appropriate liquidity and realizes the reasonable croak -- growth. they haven't taken targeting measures. .e saw this last week they cut mortgage rates and the down payment requirements for property to give a target stimulus for the property market . nothing major like liquidity injections that we got a few weeks ago in the main banks that could have staved off a -- an interest rate cut. some economists believe that the interest rate cut is likely to be in the cards by the end of the year. they is no indication that will enter any type of cycle anytime soon.
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they went on to say the bank will push forward rates and reform to keep the exchange rate steady and on a reasonable level. it seems that they were filling out the words of the statement and had to find some words to say. the have their hands on the tiller. no icebergs on the way. go back to sleep. we have it covered. >> it is an all nighter to squeeze out 500 words. thank you. time for a look at corporate stories making headlines. here it is. plunge ins predict a third-quarter operating profits. the competitors gain more and they may boost results. described it as a great. that is about $32 billion.
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snapchat.investing in they may be trying to emulate what they did a decade ago with alibaba and get more than $9 billion by selling part. time warnerh reporting better-than-expected earnings. smartphone makers sales have fallen every quarter since 2011 and missed estimates 13 consecutive times. those the top corporate news the this hour. >> let's bring you live pictures from central hong kong. this is the scene. day of 11 of occupy hong kong.
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we will be joined by joseph chang. he admits that china is unlikely to respond to the demands of demonstrators. we talk with him.
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>> they will continue the sit ins until they produce real change. fromsters have pulled back several parts of the city. they say they will allow employees to get to work after being warned by a chief executive that failure to do so would trigger police action. let's get more on the developing story. we are joined by joseph.
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is a supporter of occupy hong kong. why do you support it? our basic political rights and i think the enjoyment of these rights are essential. >> you came to the studio after a break. you were there until three hours ago. what is the concern from protesters. -- protesters? >> we are prepared for a crackdown at any time. have wave after wave of campaigns. a democratican system. worried that it will
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be just another big city in china. ourre here to fight for dignity. say that we are not going to give up and continue to fight. >> dissent is reacted upon harshly. been?s it you are a dissenter and you .isagree how have you been treated? >> there is a lot of pressure. it is essential for the development. >> have people contacted you?
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>> they have targeted me. there have been campaigns against the protest leaders and students. and, so on. a lot of contact from beijing asking me to leave. >> they are asking you to leave. a lot of people are thinking about that. thisat an offshoot of growing political movement and awareness? >> i believe so. people feel that hong kong is changing and is no longer the hong kong that we cherish. therefore, we see a lot of fighting to ensure the maintenance and spirit of hong kong. >> our negotiations between students and government leaders. >> we do not expect much. the positions are very much a
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part. we do not think that beijing will agree to the demands of the resignation of the chief executive or the granting of a democratic electoral system. >> why be on the streets? why? why impose on people who are trying to get about their daily lives who may support you? that may wane. >> we want to say that we are .ot going to give up we are going to fight on. this is a political struggle. we want to minimize disturbances that affect people. after all, the economy and financial markets are still in full operation. traffic has been affected. we admit. want to go to work
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can still go to work. >> you walk among the students and protesters. a number of them are students. what are your thoughts? professor. as a more senior member of the community. how do you? be hoped fors to hong kong. they are idealistic and dedicated. they tell people the truth. at the same time, they suffer from the existing social jobstice and the decline in prospects with upward social mobility. it has been difficult. >> what did you think of the violence that a ruptured over the weekend. -- weekend? on theseto be attacks
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students. >> we want the campaign to be peaceful and nonviolent. as you can see, without provocation, when they take place, the campaign was 100% peaceful and nonviolent. you think the perception of police right now is? >> there is an increasing fear others servece and the political interest of the government rather than acting as neutral law enforcement agencies. opiniondegradation of is serious. a lot of people support what police are doing and are trying to sit on the fence when it comes to this. those in your camp feel the line has been eroded.
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i want to thank you for being here and making it here, despite being in the middle of things three hours ago. next, one of the biggest winemakers goes local. china's growing taste for bubbles.
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>> china's growing taste for wine has prompted a business to set up shop. bottles,an sending they are producing wine on the spot. it is hoped it could be the start of something. the french luxury wine has established in the americas and australia and wants to write its name on the landscape.
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>> in my opinion, as an international brand, this is what chinese customers taste. the market is developing. the demand for sparkling wine is growing and this is why we have built this. >> part of the challenge is what happened. international research trained its way through one last year, only one million for sparkling stop >> our style has to be made. in australia and the united states, we have to make it attractive. we stress that the aroma and texture is balanced and it is easier to accept. the governments are keen to
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encourage foreign vineyards to grow. service, ourf government enact a policy to protect foreign companies. the policy includes legal interest. years --rotects for 70 seven years. >> they anticipate that they irresistible.wine they plan to boost production. paul allen. go, women help drive the box office in north america. drew femaler audiences and took $38 million. the movie stars ben affleck and tells the story of a man whose wife goes missing.
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workers.t -- will government workers get to their
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hong kong campaigners vowed to maintain pressure. grim reading. analysts say it will be an ugly quarter. on a losing streak. gold sees a retreat since 2010. good morning to you. welcome to the first trading day of the week. we are coming to you live and streaming to you on mobile. say they campaigners
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will continue the citizens until talks produce real change. protesters have pulled back and are seeking government offices. they say that they will allow employees to get to work today. would triggerso police action. we are going to live there right now. walking about the protesters today. what are they telling you? do they feel that something is about to happen? well, right now, this morning, it seems to be a sleepy on the walkway that i am on. you can see the protesters are down to several hundred, rather than several thousand. they are in a morning routine.
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it means many of them going home and preparing for the day. we are seeing government workers getting to work. there have not been impediments. this is from the metro and behind me. all the way to a government complex in front. we have seen this since about 7:00 this morning. says thatexecutive government workers should the a loud access this morning. needwas the most pressing for the government. the road is in front of the executive office. it is still blocked and there are protesters there. there are a few cars and vehicles. definitely not the normal traffic as usual.
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now, in terms of travel, in general, the chief executive says that one of his demand's after theng as normal holidays last week. many were away for the whole week and life is beginning to get back to normal after a week of holidays. he wants the roads to be not blocked. it blocks off and there are key roads away from here. they are not able to get through in vehicles and are able to get through public transport systems. so, some of the demands have been met. if he wants all of them to be met, that has not happened.
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>> protesters conceded and let workers go to work. conceded inink they the first place. >> there are for mary meetings with the government. there have been some and there were talks that were arranged for saturday. they would speak to the number two in the government. on the other side of hong kong harbor, there was definitely and anti-democracy protesters. one came out and said there were preparatory meetings.
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they are going on with a third-party. they say that there will be andher meeting to be held the time or date has not been set. there is not a timetable. it looks like there are steps taken. i have three demands that they want met. they want them in equal footing and the second was that they want to have the outcome of the talks that happen. but i want several rounds of talks. protestingontinue and hold firm until there is real progress towards political reform. they will make measures to allow talks to happen. they are not ready from that
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completely. >> where are the police? any signs of the police? see any now, i cannot police from the position i am seeing. road. seen them on the if you are wondering if there is a strong presence, the answer is no. >> thank you for that. over to that, tokyo is being battered this morning with localized tornadoes in places and bringing heavy winds and sustained wind. hundreds of flight seven canceled. rail services were disrupted. is going to dump rain in tokyo.
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and they are extending the boj making the rate decision tomorrow. the dollar-yen is holding flat right now. markets.ck in on coffee is getting underway. starting a new trading day. we are seeing it weaken. haveng in south korea, we the most heavily weighted stock in focus today and it is facing the roughest quarter in years. third quarter profits may plunge. we are being joined with a peak at what to expect. how bad could they be?
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>> the pressure is on for the company. another worse than expected quarter. profits that operating are expected to plunge and sales are expected to fall. if the estimates are right, those of be the biggest declines in almost five years. the second consecutive learning will decline and we expect those numbers to be out tomorrow. >> what is behind the disappointing performance here? is it apple? is it china? >> it is all together. and the golden days seem to be over. you have a manufacturer in china that is starting to sell more.
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mobile is starting to cut $2 billion of smartphone subsidies. customers will have to pay almost double. market isnd controlled by apple. , those are starting to be a competition that used to have a competitive edge. what does it take for them to regain some ground? analysts are saying that they and to see a neustar innovation could be the savior. >> thank you so much. let's take a look at other stories we are following. let's take a look at how they are trading. we have a drop in net income and
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they say the discount strategy failed to stimulate sales as much as expected. they plan to buy shares and sprint is cutting an unspecified number of jobs. the ceo looks to trim down the andany to tackle reductions it will include management and non-management. it is expected to be completed by the end of october. let's check in. it appears that investors are falling out. this the longest retreat since 2010. expect lower prices as the economy picks up.
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let's see how they are faring today. we are seeing a massive selloff. it is a drop in the reducing of mining. we are extending those losses and apologize for that. and this is what it looks like. the inflation index rose. this is close to the inflation target. lots of markets to tell you about today. india, malaysia, the
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philippines, and singapore are all closed. next, our next guest says he favors japanese exporters for a little longer.
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>> other stories making headlines. unemployment fell and this is a payrollsat saw increased more than expected. obama said manufacturing is growing faster than the rest of the economy. >> united states has put more people back to work in europe, japan, and every other advanced economy combined. this is what it looks like -- looks like.
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this is after a market holiday on friday. seeing the some gains. shirking and the rest of asia today. australian equities are dragged down. the foreign investor sentiment is seeing a extension of losses. let's stick with the markets. we are joined now. gold is down. let's start with that. how much does optimism about the economy and labor market have to do with that? >> it has a lot to do with that. gold stays for now numbered with the data of the u.s. and we could see more downside on gold. >> ri. what about the downside not for
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the u.s., obviously. they see there were economy recover. what about the rest of the world and asia? >> it is a good sign for asia. those who are tilted towards exporters and countries like korea and taiwan pulls up they will benefit. -- and taiwan. they will benefit. it will be felt. in those two countries, those economies are more domestically oriented. the impact might be last. our favorite is those north asian economies. they are preferred right now. >> what about emerging markets and the strong u.s. dollar.
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there is more concern there are, isn't there? >> there is. especially if you look at the commodity producers in latin america and eastern europe. that puts a bit of lead on the growth beyond the political situation we are seeing already. >> all right. where do you put your dollars in the basket of goods? investors look around the landscape. the first place we put the money is in the u.s. and has been for a wild. specifically high yielding bonds. and, you look at the discrepancy of where the u.s. is going. mentioning going
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the other way. and other strong call is currency and the euro dollar. the euro weakness is not finished yet. u.s. connects the stories i we have aand distinguished domestic story for a reason. >> let's not forget about japan. where do you stand on japan here? what are your thoughts? even.h, it will not be it is too early to act. look at the reports and there is a bit for everybody and it is not so good. boj -- bojthat the want to see more data and wants
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to make a call on extending the purchasing program that will run out. on top of that, they have to make a call. it is to early. most of the numbers are firm and have a better grip on the data situations. >> all right. they have time. thank you for joining us out of singapore. next, the top of the range. the cars will know you that are then you know yourself.
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>> it is monday. these are the headlines. the u.s. dollar is on a tear. we are going for eight straight weeks. people may be dropping out of the labor force. jobs number00 new of working hours climbed. one market to watch closely is indonesia and the stocks tumbling at the fastest pace worldwide. investors pulled off
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millions of dollars from the stock market. the rupiah falls. news out of brazil this morning with the presidential elections. the incumbent will face a runoff. he is a favorite to win and the banks say will see markets rally in brazil. a lot to consider this week with jobs data and the movements with politics and and anisha is a developing story. the dollar index. it is a little weak right now. so, what are we seeing? where are we right now? at 125.16. we have inflation out earlier.
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8670 is what we have. let's end with the dollar-yen strengthening right now. driving the stories your markets this monday morning. >> the chinese car rental company has filed for an initial public offering in the u.s.. they hope to raise $200 million. and sales did rise. life is increasingly busy. help may be at hand. take a look at the smart car of the future. the loaner car.
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>> search and technology. into areas.ng one is how we can customize and personalize the car to make it more for its user. the driver approaches the car and, with a smart phone or other identification feature, the car knows who is coming there and it can prepare. the car, when you open it, you will get the music you prefer and the ambient lighting in the color you prefer. everybody has a diary. discussion and it takes longer than expected. signal to your next
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meeting partner that you will be late. it will tell you how long it will take. you are driving your car and it is friday afternoon. intend toows that you go to the countryside and don't have enough fuel. the cartels you to go to the fuel station. it navigates you to the fuel station. we are looking at what we can do in the future. it is hitting in the next months. 3-5 years, we will get into the cars. >> women are helping to drive the box office. thriller brought it tells thece and
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story of a new york writer whose wife goes missing. you can stay on that story and it is easy. it is even easier to stay in touch with oz. our whole team is on this story and a whole lot of others. , the latest from the democracy protests in hong kong. the campaigners vowed to keep the pressure as they remain in place. they are allowing the government workers to get to work today. day 11 of occupy hong kong.
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blockingters remain that connect the business district to the rest of the island. walkway, the protesters are allowing government workers to get to work. you are watching "first up."
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sticking with a sit in. entering a new we. a powerful typhoon makes landfall. how has the sales tax affected spending? bloomberg is crunching the numbers. tokyo is gearing up. a powerful typhoon nears the city. flights have been delayed or canceled. the typhoon approaches. tokyo.s in did you have trouble getting into work? that is really rare and dish you an idea of how strong the storm is already.
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it is not reached to tokyo and it is a full impact. >> what sort of impact have you seen? ? nothing all that bad. i can tell you that in the islands of a canal -- oki was an airman reported dead and they were swept in to see at an airbase. at an airbase. >> i want to put that into context. into context the images you are not seeing because of the aphoon that is really casting gaze across the city and it is
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pitch dark outside, as you can see. you are saying there are fatalities right now as the typhoon bears down on the mainland there. >> that is right. thefatalities were in southern islands and you are right that, at 8:00 a.m., the at a made landfall prefecture close to tokyo. northt is making its way to the japanese coast. >> markets are open. about people being told to continue to make their way back into work or stay put? >> you know, i am personally not about what companies are telling workers to do. >> all right. jacob made omen.
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edleman. let's the latest on the top story. democracy campaigners say they will continue the sit in until talks with authorities produce. campaigners have promised to allow employees to return to work. is that what you are seeing? >> certainly. people trying to get into work is turning into a steady stream of people. some of these people are starting to get mobbed as they approach the workplace. there are quite a few people trying to get in at the top of the next hour. they want to allow government workers in and it has been described as the most pressing task for the government.
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it has not impeded the passage of people coming across this bridge. there were no one trying to stop us and no barriers. there was a distinct lack of protesters on the bridge. many protesters are down to several hundred now. numbers are starting to dwindle in the early hours and they may increase earlier today. in terms of the traffic coming travel, it seems to be working normally. there is business behind me. they have said they will increase services as necessary. they expect more to be using the system today. today is monday. many people may have taken time off last week. there were public holidays and
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many took the whole week off. they expect a lot more people today. one thing asked for was for roads to be unblocked. they are taking the area on the road and have not unblocked the road. they have allowed traffic for the central government sites. >> thank you so much for that. the latest on occupy hong kong. you can get more on this anytime or anywhere. watch this coverage anywhere in the world. it is time for the corporate headlines. here are the details. >> she would packer is splitting into two companies. hewlett-packard is splitting into two companies.
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theexpects to have chairman. close to investing in an app where messages can be read once and automatically deleted. they may be trying to do what they did with alibaba off. billion -- reaped 9 billion dollars when alibaba went public. better-than-expected earnings this quarter. lifting a net income under two -- two $2 million. shells best sales have fallen. -- sales have fallen. those of the top company news.
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japan took a hit when tokyo race dales tax and shrank. how are consumers and businesses faring? we are joined i steve to talk about the impact of the increase. decreasee not seen a in household consumption and it has been down since the tax increase has been implemented. sales have held of. department sales declines year on year in the month of august. we are starting to see signs that unseasonably cool weather is boosting. >> we are talking about a typhoon hitting land right now. impact in be an
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retail sales. the sales tax increase has a similar effect. things in advance of the increase. one was inflation that consumers were not used to. japanese consumers have had no inflation or deflation for over a decade. ,ou put that in front of them they will react negatively. >> what about auto sales. in your research, how was this impacted? than the rest of the retail injure street. salest retail and auto prior to april 1. it was up. after, it has been down 3% and will go down further because the comparison gets more
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collocated and difficult as we move towards the end of the year in two january and february. february. january and >> they rely on overseas markets. that and the majority of sales are in the u.s.. the u.s. market is doing well. >> ok. yeah. absolutely. can you count on overseas markets talking about the domestic retail us to mark what are they doing to incentivize people to shop more. providing more private label products that are lower priced, compared to national or global. >> this is their version of a generic brand? regionalre trying to
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allies. to connecte a chip with a local consumer. thannds to be larger national brands and gives them negotiations against price increases. >> what could accelerate the recovery and what could be the most important setback? >> for the auto sector, it is really what we are going to see in the next sales tax hike in october. a lot of consumers are in a mode. there may be a bump. we do not know. look at history and we saw a big bump. we may see another. you look at the main factoring industry and the auto industry
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is about 20%. a lot of automakers are holding out on investment and is not only impacting the auto industry. it impacts the peripheral. >> absolutely. it is wait and see. inflation is supposed to stoke "by, five, by, by now. buy, buy, buy now." the number of jobs for applicants has increased. one of the factors that is driving that is that everybody knows a lot about japan and their aging society. there is an employee shortage. the wage growth is below inflation and if it picked up,
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that would make more. is whether companies have become aggressive. unless you give the same employees raises and they can just buy a way -- away. >> thank you for joining us. for some scribal -- subscribers, -- we're going to take a look at what drives demand after the short break.
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bestis year will be the since 2010. younger with asia-pacific joins us in the studio. this must've been stoked by alibaba. >> it was interesting.
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because theyause knew the juggernaut was in the market. august was slack. was it coming? when was it coming? then, it came. remove alibaba, ipos is a sentiment for and activity. optimism really seems to provide a floor for this. >> absolutely. ofre has been a number activities out there. there is a focus on equity markets and hitting highs and low volatilities until a week ago. it has been a really good market. companies love a marketplace where they have good certainty about putting stock into the market to see a good pop.
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>> the third quarter was there a good for ipos, you said. volatility is going to intrude on sentiment and weigh it down? -- >> it is uncertain is uncertain. in andket has priced it people will be back. if you look around the region, the chinese markets show great direction in shanghai. 30 stocks to come in the market. london and new york are in the same place. we have jobs data out and pushing momentum back. there has been a lot of volatility. we still have months ahead.
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>> is this the kind of activity that we should expect to see for the rest of the year? the sentiment for chinese stocks and the warm feeling that jack communicated to global investors. investmentsslate to in other chinese companies? >> there are companies going to the market in china and the focus on market methods will see more chinese companies coming to the hong kong market. yeah, it looks good on the china front. discussion kong vote as to whether or not the rules
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could, mike, or maybe not change. there is a discussion about that after losing alibaba. do you think the discussions and possibilities for reform could little or more ipo activity? >> there is a big picture to this. you stand back and the u.s. legal system supports minority shareholders. shareholders in the u.s. have a way to get back at management if they don't like what they are doing. markets,ong and many we have a system based on principles. we have shareholders having a voice and it is more important. i will be interested to see change. if we do, will it bring people to the market? probably. it would have put hong kong at
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the top of the tables for the market and people will bear that in mind. will we see a change? i am not sure. >> the change would delude investor control and it would be interesting there. good to talk to you. thank you for joining us. time for a look at stories we are following in asia this week. defensests senior officials on tuesday to discuss maritime -- on tuesday, we expect predictions on el niño. they are releasing the latest read on the likelihood of the event taking place. southeastitions in asia and heavy rain for south
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america. on wednesday.ings hutowner of kfc and pizza has been trying to rebuild consumer confidence after -- next, getting chinese customers on their own doorstep.
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>> hong kong democracy campaigners have pulled back. they are picketing and say they will continue until talks with authorities produce a real change. they have agreed to let employees get into work after being warned that failure to do so would trigger police action.
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airlines have canceled flights and train services warned of delays. shifts.as halted day it will clear japan tomorrow. analysts predict results tomorrow will be ugly and a plunge in profit is expected. lost pressure under pressure -- neve the growing taste for line is prompting one to set up shop there. instead of sending bottles to china, they are producing wine on the spot. >> it is hoped this harvest could be the start of something big for the french luxury wine. they are established in the americas and want to write their
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name on the chinese landscape. they will become the first to produce sparkling wine inside of china. >> as an international brand, they need to let customers taste the wine. the chinese market is developing and the demand for wine is wewing rapidly, which is why have built this in china. >> part of the challenge will be introducing consumers to the bubbles. red wine enjoys the shelf space in china. throughank its way cases of wine last year and only one million that were sparkling. >> our style has to be made by the same standards in australia and the united states. we stress the aroma and texture that it and balanced so is easier for our customers to
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accept that. >> the government is keen to encourage foreign vineyards to grow grapes in china. >> in terms of service, our government and that to policies to protect foreign companies and the policy includes legal interest to build. the policy also protects it for seven years. anticipate the chinese consumers will find sparkling wine irresistible and plan to boost production. paul allen, bloomberg. we take you back right now to the top story. live pictures from hong kong. this is a district where protesters remain on the streets, blocking the highway centrald separating business districts from the rest
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of hong kong, in terms of traffic. the ultimatum was issued and protesters responded by allowing employees to walk to work. you are watching first up.
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♪ and a very good morning to you. i am john dawson, and we are "on the move." ♪ campaign concession. democracy protesters allowed access to government buildings. force of nature, tokyo is battered by 200 kilometer per hour wind. samsung reading sprint faces what is being called an ugly quarter. now, tokyo is being battered by

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