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tv   Asia Edge  Bloomberg  October 19, 2014 11:00pm-12:01am EDT

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this hour, we have had unprecedented access to the prime minister and of the inauguration. he is writing optimism but faces daunting challenge. as a ministere quits. what it means for the prime minister. in beijing tos plan policy for the coming year, an exclusive report for the fourth hardy plenum. -- party plenum. >> a rally today after a significant correction. the nikkei was down 10%. the asia-pacific index also down. look at today, a different picture. the u.s. figures are out, very encouraging. jobless claims that a 14 year low, that is very encouraging.
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you see the nikkei at the lunch break is up the most, by 3.5%. every single one of the stocks are rising, not one single decline. china is the worst performer. vietnam in jakarta has seen gains -- and jakarta habit seen gains. .aiwan you're seeing every major benchmark. japan was delayed by a few minutes, but it is well ahead. i will show you this very quickly, the performers on the nikkei today. you see how it has fallen 100.8%, but now it is above the 15,000 mark. technical traders will like it, because that is how they recouped below. -- recoupe the low. the question is, will it hold
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that at the closing level? we saw that at the lunch break, it is holding. the weak yen. there is not one decline are on the japanese benchmark. -- decline are on the japanese benchmark. >> political history being written in indonesia . jokowi taking the prime minister shipped today -- presidency today. but there are expectations. we are in jakarta for the inaugurations. as we have been discussing, it is a big, big moment for the country. >> indeed. as we speak, the inauguration .eremonies are ongoing there has been great optimism and excitement, some sense of disbelief that a new president will be put in power. a man, a common man, someone
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without military background or from the political elite. this is the former mayor of a small town. maker.former furniture he is about to be the seventh president of indonesia, a country of ordered 50 million 250 millions 17 -- people across 17 islands. here is why it is such a historic day for indonesia. today sees history being made in indonesia. marksauguration of jokowi the first time an elected president takes over from his elected predecessor. indonesia, he does not come from the traditional ruling class. he is not from the military, nor a psion of a political dynasty. >> i never dreamed of becoming president. but because the people want
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that, i will work the best i can for my people. seller,-time furniture it is his common touch that has made him so popular, especially among the poor. however, the appeal has great expectations for the presidency, and will not make the job of governing easier. to revive ana way economy growing at the lowest pace in five years, and tackle tricky political issues like indonesia's costly fuel subsidies. challenges,daunting he remains remarkably calm. the insists he can achieve a 7% weenh in three years, and people off fuel subsidies that they have enjoyed for years. >> it depends on the approach. if the approach is good and the reasons are explained, i am sure
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it will be accepted by the people. >> he faces tough opponents. but hisuly's election, rivals command a majority in parliament and hold the powerful positions of speaker in the upper and lower houses. he seems unconcerned, and points to his experience gained as a mayor and governor of jakarta. in thearty only had 30% assembly, and in jakarta, 11%. there was never a problem. >> it was a success as mayor and governor. indonesia waits to see if president jokowi can make it three out of three. me about the ceremony that is about to start. what are we looking at as well? >> security is very tight, as
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you can imagine. they do not want incidents, either in parliament or the presidential palace. andr to the process, jokowi the vice president will make their way to the presidential palace, where the current president will be showing him around. should be taking note of the celebrations along the way. there will be a parade, all roads will be shut. the top and in indonesia will be holding a band inin honor -- top indonesia will be holding a concert in his honor. they know that he is a heavy metal fan, so you can expect to see him playing on stage. >> thank you for that. you can get exclusive insights into the new president.
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haslinda. exclusive access, writing with him to markets in schools. she sat down with him for a lengthy discussion of his philosophy. you can see that at noon singapore time, repeated that 5:30 p.m. the new president faces major policy challenges off the bat, and cannot expect the opposition to cut him slack. the opposition is really going after him hard. they are not compromising or owiing to do deals with jok in the way that indonesia has in the past, in the 15 years of democracy they have behind him. it is a new phase for indonesian democracy, and it is not clear that he understands how, or is even able to, given the
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constraints of his own party, that does not want them to compromise. it is not clear that he will get the deals done to grow the economy. the hong kong authorities and their critics on the street are to discuss the democracy campaign tomorrow. the protests are in their fourth week. the chief executive says they are out of control. warning comes after a weekend of scuffles between protesters and police. we have our reporter there. vonn, any optimism about tomorrow's meeting? >> not too much, angie. lost hopeeople have as to what is to come from the
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government side of this. there are watching closely, because that will determine what they are doing next in the occupy movement. i want to show you the tone here right now. this area has been known for the flea market, and it is starting to feel like one here. this isnot the market, actually mason road, one of the major thorough ways. you can see protesters stockier pond supplies, hard helmets, water, supplies, umbrellas. you can see people coming out here in the mornings. some confrontations right now between passersby and protesters. along this way, they have taken back this part of the city. there are barricades that they build up over the weekend when they had those confrontations with the police. some of the worst scenes that we have seen in the last couple of weeks, and that was a major concern for the sheep executive,
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who told the local stations that it does not seem there is an end the movement that has gone out of control, beyond ers andat the protest organizers and the people that plan this. that there mentione may be external forces influencing the protest, the movement right now. a sinister tone there. he is looking forward to meeting with students face to face tomorrow afternoon. i did speak with protesters, who say that they are looking forward and hoping to hear what the government has to say. this it at the hong kong federation of students has pushed back their demands, they are hoping the government can do so as well to get some practical solutions. again, that meeting is happening tomorrow afternoon. we will look closely to see if there is any movement or development.
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yvonne, there is still a lot of tension on the street. you're seeing a face-off between the police and protesters still, accusing foreign intervention by see why long. is there an expectation that something will come out of it? i think the students are saying that there may not be a whole lot coming out of this, that it may be just informal meetings from both sides at this point. we will see what happens tomorrow. to talk aboutg broadening the spectrum in terms of the nominating process, so there will be more candidates for 2017. that is something we might look forward to with the talk starting tomorrow afternoon, angie. >> yvonne live for us in the middle of the hong kong district loon.ality -- kowoo
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we are seeing what that has meant for hong kong markets, raising up. >> the hang seng today, there got above. i will show you the today chart -- two-day chart. they are flat for the week. as you can see, the protests and damage. let's get a market subsidy chart as well. the protesters have some damage, they may damage the overall, most analysts say that the impact is minimal. the small andf medium-size businesses that suffer. they do not really sure on the radar of the hang seng composite. the property company still get paid rent on the financials.
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that is an overall market impact for all of asia as opposed to just the hang seng. this, the show you performance today of the hang you see all the sectors gaining it. nothing as dramatic as japan. they have gained significantly. every troop losses. health care is up. asia, a lott of the of good signs. if you want to pick out one area, it is retailers. we have seen automobiles up 2%. and, you see retailers in this. these are the ones who have been suffering because of the protests, as opposed to other areas. they are seeing a recovery
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today. that is the kind of reaction overall. they cannot get an impact from the protesters. only the retailers. only the high street. >> right. the parliament there, this is the scene that we have. -- being sworn in as a president. this is 14 minutes past 10:00 stop it would be the first without any deep roots to the former dictator. back came to an end in 1998. we have a slew of leaders around the world there. we just saw the malaysian prime minister. kerry, the u.s. secretary of state, attending. the ceremony is taking place in jakarta as we speak. festivities are expected to end
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with a heavy metal band. there is tony abbott, the prime minister of australia. everyone has been introduced there. -- may well be taking the stage there at these festivities. it would be a remarkable rise for a man who was brought up in a riverside slum and became a furniture salesman. that is the scene in the indonesian parliament. show, wehead on the look at what it means for the indian economy later on. choice aschinese occupy hong kong heads in to its third weight.
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it's a me and say. and in you call the tyranny. >> i think that if you run the economy by a businessman who wants to maximize profits, obviously, the issues will not be focused on. seeing. is what we're a zigging and sagging. is, the financial elites have built up hong kong to one of the biggest hubs. in terms of what they have done in the past and what is happening right now, is that over? hong kong had a huge advantage because of the window into china.
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they could charge a problem -- a premium for their services. hong kong is ramping up enterprises. you make more money and you are paying more. that model was running ok. now, china is basically open. >> of the protests, they are talking about universal suffrage and the ability to choose the leader they want. how much of it is down to frustration? ? at the property prices and you can see it. you are not going to have a normal life forever. that needs to happen. you look and the people say it is about democracy. i hope that it is.
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these people like singapore. they have a good housing program. it is spacious and affordable. >> public housing. or, like singapore, you want to charge higher prices. program forate local people. >> we see a lot of housing here. a lot of it has not been built yet. there are promises for it to be billed. there are tens of thousands of them. >> do you blame the developers or the addiction of property? havee business people here one model. you are in the stock markets and you want profits to go up.
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and that is why these people have not just debuted. they sell even fewer and hold on. they lend all the money to pay higher prices. >> all right. thank you for that. stick around for more. we have a lot of chinese data to talk about. all right. you are watching asia edge. plenty more to come.
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caphat is the scene parliament. the swearing-in of the president. this is taking place in front of people watching television around the world and the ingenious and people. we have various signatories. there is tony abbott and the secretary of state for the united states. a remarkable story here. he became a furniture salesman and the first indonesian president to not come from the general and his dictatorship which ended in 1998. >> checking some other stories
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which made headlines around the world. the trade and industry minister after supporths groups used it. accepted the resignation. the prime minister had been pushing for more women in the administration. the number of women killed has reached 40. -- people killed has reached 40. the other are confirmed dead by companions who were walking with them. it is the second disaster to hit nepal this year. an avalanche on ever instilled 16 sure bus who were -- sur herpas. sweden is on heightened levels.
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moscow denied any russian warships were in the area. >> ok. day is correct across the board. the global rebound is continuing after what we have seen in recent weeks. it is a big big week. as onene in hong kong third of 1% of stop after the break, we'll take a look at what is happening in tokyo.
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>> parliament is gathered in jakarta. joko assumes the presidency. every stock in the nikkei is higher. a broad rally for japan. a setback for the prime minister as the trade minister resigns. japan is returning from the lunch break. you are seeing the best performance since june of last year. >> i want to show you this
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today. as you can see, it is down 10%. that is the performance for the day. that is the best overall performance i can show you of the day. this is about 3.5%. 225 isingle stock of the showing a gain. if it holds above the 15,000 , that is really important. and regaining back all of the clients of last week. declines of last week. there was a correction of 10% as of friday. weekendversold and the is driving up exporters. that is the overall picture for the nikkei today. that is the plan.
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nikkei has gains of major benchmarks. if i can, quickly, here it is. jakarta is on a tear. >> here we go. this is the man of the hour. joko. the president-elect. there is a swearing-in ceremony taking place in the indonesian parliament in jakarta. that is what we have in the moment -- at the moment. festivities are planned for afterwards. he has seen as a refund -- reform-minded technocrat. ps2 make tough decisions and wants to realize grand ambitions.
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his plan is to improve infrastructure and lift up growth. it has taken a turn lower. this is the scene and we have this taking place. he is set to become the seventh president of indonesia. and, indeed, the first not connected with the business elite. slum andd off in a went on to become a furniture salesman, as well. that is what we have. o has been sworn in and we will have full coverage of this. japan returns from a lunch break. but have a look at what is going on with equity trading across the pacific stop japan, particularly. performancesst since last year. we leave the pictures of the indonesian parliament and get you pictures of john dawson will
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stop -- dawson. >> you can see the rupiah. , more of a ceremony, that anything else. the .8% difference is the strongest. asia, 18 currencies in and the u.s. driving it up. that is because of interest rates and performance regarding currency in indonesia. you can see jakarta. factor that is down. the biggest gain was in financials at 1.5%. improvement stocks and the manufacturing industry may benefit from the policies. there they are.
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i believe you see strong gains. tech stocks and financials. construction companies are driving higher on the first day of his presidency in jakarta. >> thank you. gettingvestor sentiment a snapshot. joko. let's head back to the inauguration of joko as president. we are there. important and memorable day. what is happening there? >> yes. it is. where im am is packed with dignitaries and parliament -- politicians. kowi will be the seventh indonesian president.
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it is the first time that one of elected president has handed power to another. include tonyries abbott. and john kerry. president will be welcomed by the outgoing president. they will give him a tour of the palace that has been his home for the last 10 years. this is a historic moment in indonesia because it is the first time a president has handed power to a successor. it will be joining supporters later today at the national monument for a party for the people. there'll be a concert and free food. there are people.
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and one of the big things we are watching for is the announcement of the cabinet that could come later today or tomorrow. back to you. for all of you. he is expecting a lot of challenges and a parliament controlled by his bitter opponents. -- was given exclusive access to him as he prepared to take office. 55-60% of the cabinet is professionals. the others are politicians. that is the reality of politics. there is no way that all of them will be professionals. and theretechnocrats are politicians. >> do you think it would be a cabinet that would help you achieve the growth? >> yes.
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ministers in the strategic economic areas are professionals. for example, finance. agricultural and energy ministers. they have to be professionals. >> have you had to barter? because had to give in you have the majority in parliament? will that take away some of the power you have as president? in parliament, it depends. there has to be a political approach and political communications. if we have that, there will be no problem. the party only had 38% in the assembly. it never had a problem. exclusive get some
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insights into the thinking of the president later on today. we got rear axis as he prepares to take power and were riding with them. we sat down for lengthy discussions about his philosophy and the challenges he faces. the greate expectations at 12:00 noon and at 5:30. for those of you in sydney, that is 3:00 and 8:00 tonight will stop >> the japanese prime minister accepted the resignation of his trade minister. ministers, and go and this was one of the few women. it is a blow to the administration's stated goal of putting more women in the administration. what exactly happened? five femalely members was entangled in the
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political funding scandal. she resides today and said that a will appoint a new successor. the supervision of expenditures was not enough and she will continue to investigate the allegations for ms. usage of political funds. >> she's not the only female cabinet minister. fire russia mark >> right now, the justice minister said that ava might replace or because of illegal campaigning. we have other women in the cabinet and they are under fire because they were with a former japanese leader. that is a big scandal right there. sevenpanese cabinet is
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percentage points down compared to september. >> we will show you the latest on the objectives. >> all right. the indian minister has strengthened his ability to introduce difficult policies with elections in two states. tell us what happened over the weekend. it has been heavy and hectic. indian politics dominate the landscape. government to secure a status in two states. they are boosting the confidence in the prime minister and, what that does is get it rolling in india and the markets were getting skeptical. there has been regulation.
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as of now, diesel has been spared of state controls and that is significant, given the fact that almost 43% of all fuel consumption in india is coming subsidyeduced the burden. a is seen as something of point between industries and the government. the prices have been up over 5.6%. applicablenly be when the dispute is resolved. the markets are feeling more positive in the open. it is a big thumbs-up with the equity markets. benchmark to the index here. back to you. >> thank you. >> ok. we have live pictures coming through. the inauguration is taking place in the indonesian parliament. he is talking to his country and
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the world. and, indeed, to dignitaries who have come from abroad, including john kerry and tony abbott from austria. -- from malaysia, as well. he has it all to do and has an admission -- ambitious project. the economy has slowed down. he wants to improve the infrastructure and have a look of the health care system, alongside with the education system. fuel subsidies are something we are talking about this morning. first, the priorities. saying thaty was economy will be the true test of his political metal will politicalis -- mettle. jokowi, the first
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president not coming from the business elite. he is sworn in as president of indonesia.
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>> welcome back. joining me is john dawson and andy shay. top story has been indonesia. we would like to take you to live pictures now. resident. the seventh he is in front of the indonesian people and various dignitaries. tony abbott is there and john kerry. he has a lot to do. he has slowing growth and a creaking health-care system. other things, as well. that is the challenge. >> that is the challenge.
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the gdp, is it enough? can they create the kind of jobs for the indonesians who join the workforce? does the challenges. andhey have a tough job adjustment. and are in for a tough time indonesia needs to build infrastructure. they have not been able to do that. they have not done a good job on the competitiveness issue. i hope they can deal with that. >> that is happening right now and, indonesia has had a real problem with infrastructure. certainly not a problem that china has. >> they have overcapacity. >> they made it into a supertanker.
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everything. the economic adjustment is very different. >> they have in making more and building more. >> this is the communist party a lot of economists have been doing the same thing for 20 years. why not? all of these empty buildings may, one day, be occupied. so, that is what a lot of people are thinking. is that the story is different and china is maturing. there is an increased capacity and it is better to go outside and have a strategy of dealing with india and indonesia. both countries have big populations and a shortage of infrastructure. >> go ahead. china, of course, the economy is
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cooling and they are injecting periodic liquidity. what is your take on this? >> that is to keep it from reform. this is not reform boosting the economy. it is not making it stable will stop so, they should. >> you agree with the temporary measures? >> stability is important and it is more important to boost the economy for the long haul. the right policy is taxes and you need to get people to spend more money. the right thing to do is to cut taxes. you need to reform in a way that china can. it should be done within five years. i do not see the plan yet. >> a question. businesses and
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shouldsized businesses, there be more? the landlord can only raise rent in the happy valley chapel by 50%. >> in hong kong, everybody works for the landlord. >> there is no rule to stop it. >> they control the government. it is not far-fetched to say. the charity of a tycoon. >> basically. they have a strategy of attracting rich people and hoping that they want stability. if there is stability. >> it is temporary. singapore, doing something
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like that is destabilizing in the long-term. in theximize profits short term. >> other than the obverse -- suffrage,niversal what is china so afraid of? they have someone in place that they are not in control of and provide stability for hong kong. >> unless you want to overthrow the communist party, it is possible. 100 years from now, maybe. sitting on the street does not point to do it. >> they are not compromising. -- theecause the did significance is decreasing russian mark >> hong kong is not significant and china has a surplus. chinay for china is that is assessed with national unity
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and the central government always has the final say over everything. becausedom you have is beijing says you have freedom. they have the option to take it back in time will stop that is is how the system works in china. if you want to overthrow the system, you have to overthrow beijing. >> let's get back to business ideas. rent who cannot pay their have to close their businesses. all of that is really huge. businesses back home. there is a huge ripple effect. >> yeah. >> nothing is being done. thoseis no plan b to help sending money home. this is really bad. >> there have been business and the hongjing
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kong company is undercut by these people. i think they need to have a political system. thegovernment on top and business people going over the government. >> people have businesses losing and admire can see the peaceful protests of the students. the anger you are seeing is -- business. stop >> hong kong is heading towards a recession. >> you think what you mark >> -- you think? >> yes. >> really? >> i doubt it. >> are you saying that it is triggered by this. putting gdp and marginal value and you see not a whole lot of people. >> more challenges coming beyond
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politics. thank you for joining us. always good to see you here will stop stay with us. we have a lot more coming up. >> a recap of the top stories.
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>> let's take a look at the market open. green arrows. the hang seng is a racing the losses we saw didn't occupy hong kong. the composite is climbing. week ofn a fourth occupy hong kong. student leaders and them as traitors and the government are getting ready to talk tomorrow. let's take a look. japan is seeing huge gains today. >> i am not certain about that. down huge.
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there is political news. a little bit of a lightning strike for shinzo abe of stuff there is the resigning. and a seeing some gains global equity rally extending right here. 10:57. we have a look at what is going on. the market is swearing in the seventh president of indonesia. this is the scene in parliament. is being sworn in and he is the new president. hass reform-minded and several challenges ahead of him.
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it includes infrastructure and a heavy need for investment. course, there are challenges with economic growth, as well. but
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