tv Charlie Rose Bloomberg August 24, 2015 9:00pm-10:01pm EDT
rishaad: it is tuesday, the 25th of august. i am rishaad salamat. this is "trending business." ♪ sydney and singapore this hour. what we are watching. the rout rolls on. a flash of optimism in new york and heading for a follow, the lowest since 2012. in a hole, dropping the most since of the crisis.
the lowest we've seen in 16 years. brent crude below $45 a barrel. it is making headlines. is it a rout or crisis? remarkable hashtags. mortgage meltdown and a great fall of china. of us know what you think the stories. we will start with a look at commodities area shares, commodities, and the bloomberg commodities index the lowest since 1999. let's head over to sydney. paul allen with what is going on. what is bad for commodities is bad for australia, isn't it? paul: pretty much. it is a commodity currency. we are seeing data being hammered. miners, rio tinto back in positive territory. the hp -- bhp is down a little. a fewe are seeing are
savvy investors looking at this as a buying opportunity. the picture for commodities is a great one. a glut and growing glut. the bloomberg commodities index at a 22 year low. this is all thanks to china, the world's largest consumer of grains and metals. no surprise, a slide. copper, for example, supply exceeds demand by 151,000 tons. a glut in oil with iran trying to raise output as well. all bleak for the commodities picture. even gold is down. our guest last hour suggested it may be interesting to watch. , thank you.l allen we will kick it out with another dramatic day. singapore and taiwan and malaysia entering.
is positive. off of the lows of today. can it last? perhaps why we are tracking this minute by minute. japan and australia opened. -- i do not want to say paper profit. wiped out the damage down to $130 billion. a rally we are seeing in australia. the banks doing the heavy lifting. the rest of the region looks like this. malaysia hit 1.6%. taiwan is down. it was badly hit yesterday. volume very heavy especially in japan. look at at the 30 day average, we are double that. 225, the movers we have. 200 brands. that theyeason for
plan to resume. up 9%, a rally on the outlook for 2016. that is the story and australia. korea just turned positive. though the store you might want to follow is what central bankers are saying. india and taiwan, late yesterday basically saying they are ready to act. the currency markets. 1.11role, 1 -- in the euro 578. euro, the story here. 1/1578. we are down 0.4%. to the u.s. dollar and we are weaker by 0.4%. ,he economy minister, umm basically saying what everyone
else is that the yen as being bought as a safe haven and reflecting, he said, the economy fundamentals, the underlying fundamentals are quite sound. that being said, he is calling the timered to yesterday, things look a little better. perhaps not to the extent we saw this time yesterday. andese markets opened up about 20 or 25 minutes from now and we will get to the updates when they open in hong kong and the chinese mainland. rishaad: currencies, this what we are looking at. commodities, we have done it. we are looking at equities. front and center, we want your opinion. tweet to me. there are other stories also making headlines area let's find out what is going on.
morning.ood the japanese carmakers, toyota and honda, plunging to this morning. toyota is going to suspend production of the previous anti--- prius in thailand based on lower sales and the dispute with authorities. local parts they said were becoming an. the latest headline adding more headaches for the japanese carmaker. they fell the most in four years yesterday afternoon's the biggest plant in china will remain closed for another two weeks because of the deadly blast in tangent. honda is at half capacity at a plant in thailand. nearly a year after its record smashing ipo, shares plunging to a new low below the listing price.
just how bad market sentiment is now in china that has spread to wall street. adding to investors' concerns about the internet's giant slowing growth. tobaba fell 3% at the close $65.80. it made its debut at $68. traders say the ipo price is important psychologically and anything below is negative. remember when the share was $119 in november? it has plunged more than $120 billion on the china slow down. increase competition from the rival and government reports that alibaba was not doing enough to fight counterfeit goods on this site. talking about uber, if you still have spare change, it is looking to raise $100 million for wealthy chinese willing to put in a minimum ¥3 million.
that's about $470,000. it is called project u offer. putof the money will be into shares of closely held uber before an expected ipo and two years. the reminder -- and the remainder in stakes in china. it could come with a big risks especially in china where uber is far behind a leader backed by the country's biggest internet companies. uber planning to invest more than ¥7 billion to expand to 100 chinese cities up from 16 they currently operate now. business, theberg reaction to world leaders on the global market rout. what are they saying? have a look at bloomberg.com. only amount of
noeresting is it seems to be clear catalyst of how it happened. some people and some analysts probably blame it on the slower growth of the commodities slumped and aversion risk and china slow down. all of these things have been happening for a while now. it it gets sharper in the past few weeks or so. rishaad: clearly, there was a trigger. , theriday report, pmi data weakest since march 2009 and that is when the park geun-hye set -- rout sets in. bernard aw: on top of that, you probably have the devaluation triggering fears and possibly the devaluation across the globe. and with pmi numbers, there will be further slow down or weakness in a chinese economy.
probably take of that as an opportunity to sell off. i do not think it is a clear catalyst. is is a obvious reason for why we are seeing the global slowdown, global weakness in the equity markets now. that could be some other reasons ,f positioning in the market perhaps even high valuation such as in the u.s. market. rishaad: amazing valuations there. a little bit of a comeback today , off of the lows of the session. toyou see sanity returning things in the next few days? it is really think difficult to see if we'll see at a bottom especially from a technical perspective. it seems to suggest there could be a bounce. i think some markets numbers showing we could see a bounce as
long as the numbers of stocks in the index such as s&p 500 is below 10%. s&p 500 is hovering around 8%. i would not put too much emphasis on this kind of technical trading. it is on the downside. we go probably see how the asian markets perform today to have a better gauge of the overnight markets will perform tonight. i think it is a vicious cycle going on simply because the market is unsure of what clear catalyst of the slow down. we are seeing it happen again on monday and a last friday where the asian market is down. and risk aversion carried over to the u.s. market and european market and the same cycle. rishaad: how do you turn the vicious cycle into a virtuous
when one? can it be massive qe from authorities in china? theard aw: i think now question is how do we stop the stock market rout? sectors probably two could probably caused concern in the market. seeof which is we should some kind of policy response, especially from the asia side. european,en japan, and probably the u.s. markets. we should see more coordinator response in asia. china, a lot of people looking at china and pob see to be the -- pob see to be the leader. -- pobc. people are disappointed that pboc did not cut it. given the intensity all the stock market rout, a triple r
is probably insufficient. i think morning's to be done in terms of easing measures and probably -- i think more needs to be done in terms of easing measures and probably opening up space. rishaad: policy responses out of that pboc. china and jetting 150 billion yuan, a reverse repo setting the reference rate higher against the dollar from yesterday close at 3.987. pererday's close at -- dollar. the pboc did not intervene late in the session yesterday, allowing the currency to weaken by 0.25%. did not intervene heavily in the last 30 minutes and that was
influencing sentiments. this morning as we set the reference rate, there is an announcement there is going to be reverse repo of 150 billion yuan injection and the reference rate slightly stronger against the dollar. rishaad: getting back to bernard. what you make of that? does it make any difference? bernard aw: i seeing all of these measures the pboc putting out has been short-term in nature. a stronger policy response is probably needed and rrr rate cutting probably will be one of them. more nice to be done in terms of reform. we should seek coordinated response from some of the other asian countries. as in really pboc needs to take the lead in term of the global market now. rishaad: thank you. bernard aw from ig asia. the commodities have been taking
business." i am rishaad salamat. bank of china, good out with $23 billion worth of reverse -- coming out with $23 billion worth of re verse repo. commodities, we are recovering a bit. off of the lows of today. singapore more positively in positive terrain. will not seen that move. nikkei 225 up by 1.5%. carmakers driving things lower. those start of trading in hong kong. premarket session coming to an end. i look of what happens there and the prospects. and we will come to that in a second. 1.3%. new zealand, positive.
we get to the whole call the market. a look of what is happening. hang seng off of 5.2% decline yesterday in the session. the hang seng is down and premarket. julia sally at the -- juliette saly at the stock market. juliette: good morning. coming from the hong kong in ange, trading under way 10 minutes time. in pre-trading, the hang seng index falling. i am watching the futures on the bloomberg system calming the room and it is dramatically widened -- coming through a it is dramatically widened area the news that the pboc injected 150 billion yuan to prop up the rout we saw yesterday. 10 minutes ago, it looked like the hang seng what fall another 2%.
futures are quite narrow ring at the moment. at one point an adult black. we could see buying. -- at one point, in the black. ungeing into the red, the pl was the fastest on the hang seng index since the asian financial crisis in 1997. the only good news is when the market reopened following the crash in 1997, we saw markets .ise and having a big again hopefully we will see it is just on the radar and things will look better in the coming weeks and months. rishaad: thank you, juliet. one of the companies common guy with the numbers. shares on the upside. london later from today.
will follow byit nearly 50%. david in melbourne. what should we be looking out for? good morning. it will report four-year earnings later on today and looking at the consistent forecast on the bloomberg system , the average of 18 analysts' as the underlined profit will drop 45%. not do much of good news and prospect for investors as there. it follows a wider trend we saw yesterday. reported net income dropped 88% earlier this month, rio tinto reported first half underlined profit sell 43%. what we're seeing is the tumbling commodity prices from weaker demand growth in china. that is translating on the bottom line of the biggest
mining companies. that is what is in prospect later. i guess investors will look to see what bhp's outlook is on the china economy. is whether the miner confident in its biggest customer, china. rishaad: what about impairments? always look for impairments when it comes to commodities especially commodity prices slumping? : i am afraidr there is no vexing news is there either. isa their earnings outlook it bad enough, significant down to the company. it a slant last month it expects to take an impairment of as much as 2.8 billion u.s. chiefly on a shell gas in the u.s. more bad news there i am afraid. speakingdavid stringer
about bhp. the chief executive will be here 9:30 a.m. hong kong time. moments away from the start of the trading day here in hong kong. shanghai and we are seeing a big fall. the hang seng is down a fraction as well. yesterdaywhat we saw on the monday session, black monday, some called it. 8.5 percent. hang seng nearly 5.2% lower. we have the opening numbers when "trending business" returns and we are at the hong kong exchange as well. ♪
rishaad: our top stories. opening more than 6% lower in other asian stocks are opening lower after the global selloff on monday. drops of more than 4% on nowralian and taiwan and back to positive terrain. mining suffering. sinceities hit the lowest 1999. crude recovering below the $39 level. brent below $45. plagued by oversupply and
continuing weakness in demand from china. honda down on news of production cutbacks. it will stop making the prius because of slowing sales and a local dispute. a two-week closure at a plant explosion. honda is planning to have capacity at a plant. here we go again, david. not know howi do to describe what is happening. down 6.5%. barely at 3000. 3004. week,ast tuesday, about a 25% down for the shanghai composite. support't call mild measures announced a few minutes ago. pboc will inject 150 billion yuan, reverse deep post a lot of it will go to offset those
today. a net effect of of those. and have tona offset that as well. at some point, the currency has to give. lower, can we get it up so we could see the level? that, sticking with the yuan, breaking news as well and perhaps a byproduct of investors staying away. deposit rates in hong kong for all sure spiking -- offshore spiking -- record spike, i should say. 23% for one week. theds like a brazil in 1980's. that being said, that is what asia is doing. , reports ofngapore a bear market for both. 2.5%ppine stock exchange,
and down 7% yesterday. that one is picked up by foreign investors. shanghai composite, 3004. let me drag it in. 3036, doing a little better. levels, that is what. bear market. are now down 6% year to date. i will leave it there. rishaad: thank you. sallychange here, julia is there. -- juliette saly is there. what is happening? juliette: probably should've kept talking, we saw the losses pare back on the hang seng index and opened down 100 points. now, it just moved. nothing likets,
what we're seeing on the shanghai composite. when i look at the map, we are ns from financial stocks and looking pretty flat. consumer, where investors fly to when we are seeing downward pressure in equity markets. one opening up by as much as 7%. aia group doing well. of 7% in the financial space. looking at the overall index, utilities down by 0.3%. diversified stocks down by almost 2%. the biggest drag on the market right now. not looking like we was the 5.2% slump we saw yesterday. rishaad: never say never. i look of what is going on. here is yvonne.
the great fall of china. even bank one of many -- yvonne: one of many interesting hashtags. trendingday, a big one . all on monday. there are reports the stock market prices were pretty hard to search on the chinese search engine, baidu. overall, interesting to see the time lapse. i will show this later. you can see the #blood monday spread all of -- black monday spread all over the world. here's what users are saying when it comes to this crazy day of selloff. i keep going? some people down plane. one person saying -- here is was one user said --
finally, other people talking about the black monday saying the media seems to be hyping it up too much. one said -- back to you. rishaad: what is going on in singapore indeed and kuala lumpur. over to has london -- haslinda. a little bit better today. haslinda: not actually. market.n a bear from 2014 high. indonesia wanted to bear market on friday. not looking too great. the asia index falling further after posting its biggest drop in seven years. malaysia hard hit. more than $3 billion flowed out
of equities. down to percent this month. a 17 year low. the worst performer in asia. a plunge in oil prices not helping. concerns and exporter, about dwindling reserves. a selloff to indonesia. territoryark in bear down 20% from a high in april and lost 9% in the last five days. global funds pulled out almost 1.5 billion dollars this year. a dollar at that level for the first time in 17 years. not looking pretty, call it ugly. rishaad: talk to me about manila? some seeing it is a haven? islinda: the operative word relative. ,o level supporting investment
safe because it is less reliant on commodities. not susceptible to weakening prices. yesterday, the philippines most insulated from a slow in china and hard to think of a country in a better position. but investors are still settling and getting out of the philippines all the same, stocks at a seven-year low. authorities said it is due to a technical glitch. it was damaged control. the authorities have denied such allegations. a beating all around. rishaad: haslinda. flavor of what is going on with individual companies, high profile of how bad intimate has gotten their -- sentiment has gotten there.
it is nearly a year since we had the world beating with the initial public offering for alibaba. that psychologically is quite damaging. a couple of things going on. a company struggling and competition. to aue growth down two-year low in the latest quarter. some concerns by the government in china of the selling of counterfeit goods. ofre's been a number different pressures since the ipo nearly a year ago. september the 19th was day one and their record ipo. $93, up from the listing price of $68. it arose as high as $119. maybe we can bring of the chart. it rose as high as $119 on november 10. .own before the selloff
it tells you there were worries really about the market in china and growth potential and competition as well. billion and$120 trades at $65.80 below the ipo price. yesterday, it got caught up in the sentiment and was down as much as 15% midsession. a number of different pressures, trying to diversify growth areas and investing with online platforms into russia, brazil, india and bought a big stake in brick-and-mortar's. doing a lot of things. much, on suchg so an inquisitive streak. stephen: and bought back some of his own shares. rishaad: when the stock is beaten down like this, what are people saying, a buying opportunity? stephen: do you want to catch a
falling knife or a bounce up? according to a bloomberg survey, analysts saying most of these were updated and the last couple of weeks. the sentiment was already negative on the stock. of 12 month price target of $97 and now $65 and change. .ust 2 sells you have to the pair it to its main competitor who had an ipo -- you have to compare it to its main competitor who had an ipo in 2014. abovest jd.com is selling its price. rishaad: thank you very much. stephen engle and after the break away from the market. for second. changing times and changing names. what does it take to rebrand an
juliette: holies and thailand said they do not know if the main suspect and the bangkok bombing is still in the country. was shown in broken cameras. police have no motive for the attack saying it could be anywhere from politics to religious beliefs. be sentdence will abroad. canadian police said blackmailers are using the ashley madison website hack to make extortion attempts. linking the data breach to at least 2 suicides. last week, hackers exposed information about 30 million users.
ae canadian owner is offering 300 and 80,000 dollar reward -- 378,000 on reward leading to the hackers. >> the social impact behind this we're talkingk, about families and their children. it is not the fun and games presented in media outlets and radio stations. it is not fun and games anymore. juliette: france's president alone and has awarded the highs honor to three americans who spoiled -- foiled a gunman. they received the legion of honor with the president saying they risk their own lives to prevent a terrorist attack. two frenchmen will also be honored. a 25-year-old moroccan man is being questioned over the incident. rishaad: breaking news.
the trading floor on the hong kong exchange. positive on the hang seng. up at the moment. we do have shanghai composite recovering. we were down over 6%, nearly 7%. recover to a deficit of 5.3%. still adding to a huge drop. down by 6% year to date. yesterday. decline it being built upon. taking the market down even further. let's turn to some of the other news. today's traveler and business and tourism. a choice whether to stay or how to get there, great for consumers. an increasingly hectic market tracking -- tracking that traveling dollar. some are rebranding. tomorrow like a place -- langham cordis.ll become
who is better to answer than the seo? -- ceo? what was wrong with it being called langham? guest: nothing. we look at the markets and we saw tremendous opportunity for a theded hotel dax was after upscale arc it, the corporate traveler, the family traveler, the middle class. -- branded the hotel was after the upscale traveler, the corporate traveler, the family traveler, the middle class. heartfelt service to our guests and not spending as much money when we constructed a building, moore the software. rishaad: cordis means heart. robert warman: we went into the hotel and had incredible hotels for years. it was difficult to make the decision to change that because
love the place. we thought it will be a great opportunity to move it not only in china but around the world in re-creating a new branding giving it on identity from other langham hotels. rishaad: i was coming to that. langham resources not going away. robert warman: we signed our first langham hotel in dubai. we had one in hong kong. no, we will getting to grow langham hotels and resorts and the luxury sector. we saw tremendous opportunity and the luxury-- rishaad: you have three. cordis and eden. eden is part of the young millennial traveler who continues to use hotels in a different way than people in the past. rishaad: let me ask you a question. you had langham every branded
eden. robert warman: we are in the process of change over the eden brand. rishaad: have you seen any uptick in revenue per available room with eden as a consequence? robert warman: we have not a rebranded eden it yet. it will take place at the end of the year. we look at langham hospitality group and asked what does the future? industryllish on her and the long-term. which segments did we feel would be important to be into as a business? will focus on langham hotels and resorts and grow not only here in asia but europe, middle east, and north america. we then saw this incredible opportunity cordis. our initial focus was a lot on china and the growth of the middle class and the amount of travel.
we have had, tremendous reception from developers around the world. matter of fact, our current owner of our new hotel bali stayed at the langham place and called us and said i am building a hotel in bali and i want you guys to manage it. rishaad: people have moved towards it. are you in danger with a rebranding exercise of alienating the previous customers you had asking what is this cordis place? robert warman: over the past nine months, with renovated the hotel. every guest room has been redone. the restaurants and lobby has been redone. we focus on saying we will give you the same heartfelt service you always received when you stayed. we are giving you something new. we have gone in and renovated. will be our guests excited by that. we have invited 600 of them
tomorrow to join us in the celebration of launching this new brand based on what they may unsuccessful for. -- successful four. rishaad: thank you. robert warman, chief executive of langham. you are watching bloomberg. what is going on market white? chinese equities showing declines, 5.3%. that is extending the steepest rout in china and shanghai since 2007. concerns the government parent back. we saw an injection of 150 billion yuan in reverse repo. not quite as widespread as monday. 1.2% at the nikkei to 25 recovering quickly. -- 225 recovering quickly. a quick look at what is going on
rishaad: this is the scene in hong kong. far as the hang seng. we are recovering. reversing. -- 1.67%. we see at the moment equity markets and is part of the world recovering. the only decline for the nikkei to 25 -- 225. elsewhere, sydney is up. gains on monday. against the backdrop, the chinese stocks, the index. there we go. chinahave a market in
down a by 5%. caring back support, the fear for chinese investors with chinese regulators will be doing exactly that. the biggest two-day decline are since 2007 or the market route taking place there. stepping back from the brink. they have done it again. p pyongyang saying it is agree of a city state of war. it will halt propaganda across the border. east asia government. is with me. you were there last week. there the day they exchanged fire and people, all of my relatives were calling me. full and nonts are
one was paying attention. not the man in the street. they are very used to these kind of episodes. they happen from time to time. they do seem to find a way to pull back. not really have heard much at all from kim jong-un. does it tell us anything about the situation in pyongyang? andrew: it kind of does. he is young and untested and constant change under his regime. fearful generals are so as they might overstep this time as straight from the script. he seems to have played by the playbook. pushed to the brink and got concessions a re-engaging now and both sides are saving face and did not go beyond a few missiles with a no one injured thankfully.
rishaad: it is tuesday, the 25th of august. you are watching trending business. singapore and mumbai, what we are watching. crisis over? hong kong seizing the moment. that in the black. the middle of the morning trade. -- back in black. another attempt to prop up the currency market. governor has no sympathy for
investors and say rate cuts are not just goodies to be handed out and neither should the markets be boosted. you think. what follow me on twitter. do not forget to the hashtag there. the midpoint. we are in a recovery slow. china still, concerns and there. 4%.rter: down it was down as much as 6%. shanghai, 30 minutes into the close of the morning over in japan. down 0.2% and not a bad compared to where we were after the open. .ikkei 225 a quick look of what is moving up and down. about 4% each. australia, and hong