tv Trending Business Bloomberg December 3, 2015 9:00pm-10:01pm EST
, the takeover means drinkers will pay more for less. do follow me on twitter. let's have a look at what is going on market wise. the final trading day of the week. serious and negativity, haven't we? >> yes. ready for the weekend. day todaygative in asia. taking on the worries of europe. ofkets falling on the back not as much as expected from mario draghi in terms of how much the q e program has expanded. look at how things are faring in this part of the world. indices close to
session lows. off by 8/10 of a percent. hong kong shedding over 1%. eye ahead of an that opec meeting in the unit -- indian appeared commodities and oil related plunging for another day. -- expectations that saudi arabia will not cut production. we also have janet yellen reiterating her view that the u.s. economy is starting to gear up and be ready for that first rate hike come december. the market now pricing in a 74% chance of that happening. almost a certainty. stocks, a plunge when it
comes to these oil services and oil-related ahead of the opec meeting. rishaad: legal problems after a judge ruled that consumers can sue over defective airbags. honda,es this mean for akata?l as to cu >> honda has been very aggressive to settle claims with the victims, but this is a setback for honda and the others. classill continue to face action claims filed by millions of honda owners and other owners of either carmakers using their airbags. will affect resale value for
their vehicles. has beentakata questioning its own survival and all of this. what does it mean, the final nail in takata's coffin? >> the survival for takata is a big question, especially facing the possibility of huge cuts -- class-action penalties. ceo told the japanese media that he reiterated that honda won't bail out takata, even if they cannot survive on their own. carmakers the other -madelso announcing takata products in future models. rishaad: thank you very much.
joining us there from tokyo. a look at's have other stories we are following today, starting off with a $400 billion disappointment. >> that's right. , failed to meet market expectations. 390 $3 billion stimulus boost and interest-rate cut. bonds tumbled on the ecb tepid reaction to intervention. mario draghi taking heat for what some are calling his stimulus stumble. a bruising day, forcing others saying thatitions inflation is too low. he sought to defend that position. >> the question then was, had they been effective enough for us to be confident that we would
reach our objectives about inflation within the horizon that we have planned. the answer we gave ourselves was, not enough. so we have to do more. clearly, wehis very are doing more because it works, not because it fails. something consolidate that has been a success. the ecb also said qe will extend until march 2017 at the current great of $65 billion a month. mario draghi also announcing a 10 basis point cut in the deposit great. the economists we surveyed had forecast a rise in the amount of quantitative easing. the oil market rising for a second day as opec prepares to meet in vienna. crude futures adding just under
$.20 a barrel. west texas intermediate trading at $41.25. opec appears on track to maintain status quo after members clashed over policy. they held an unusual informal gathering ahead of the official meeting later today. its lineabia holding is calling on other big producers outside opec, for example russia, to join any cuts if opec takes the decision to do so. -- prices are new sixers low 86 year low in the brent markets. -- a six-year low in the brent market. uber said to seek to point $1 billion funding. -- $2.1 billion in funding. group plans to begin
introducing joint products in the first quarter of next year, according to a combined statement. is seeking to raise more than $2 billion in the second fund raising round, valuing the company at $63 billion, more than general motors. paperwork detailed as fundraising plans in delaware. it has seen regulatory push back in france, and a renewed alliance by major competitors in the asia-pacific. a friday trade for you if you are a beer drinker, listen up. parent company, miller, budweiser, rolling rock, a group of beer drinkers are suing to takeover $110 billion of sab miller. this acquisition would create the largest brewer, a monopoly in the beer market, according to this lawsuit.
the lawsuit has been filed in san francisco on behalf of 23 consumers. that federal court filing was in oregon, but the san francisco-based group of consumers say they have bought products made by both companies, as well as craft beers, and they seek to permanently barred the sale because beer prices will go up and competition will armed. enjoy a friday drink it for this deal proceeds. pick up on something you were talking about their, these international ridesharing companies taking on uber. they are going to team up in partnership to make it easier for drivers to use their mobile apps overseas. let's get more. partnerships these . how is it all going to work? right, it's really a
large-scale thing we are talking teaming upcompanies together, i enough to reach half the world's population. to uses it really easy the same mobile app they were ,oing to use in any region u.s., india, southeast asia, and china. if i amf that, it means in china and have the chinese up, i can use it in the united states to get a cab. why.s it is a great strategy for them to come together and block uber in this part of the world where uber has not established itself yet. not be happy will about this or take it lying down, surely? >> no. what we heard is they will be funds, $2.1 billion in valuing the company above $62
billion, larger than general motors. what they are doing in china, their main focus these days, is that they will be operating in 100 cities by next year, and so that would have them reaching out to the population here in china. saying that china is going to be the biggest market probably by the end of this year, and in other markets, uber will be going all out to gain commuters all over the world. back to you. rishaad: thank you for that. website,st look at our the challenge facing chinese policymakers now that the yuan has qualified for reserve status. , why ag of take off multibillion dollar bail out has failed. we are live in mumbai with the details. under 40 entre
going head-to-head against microsoft, was that easy? what finally clicked for you? >> we never took microsoft as a competitor. windows was the most popular platform at the time. for a's, the most important us,g we realized was -- for the most important thing is that you cannot build a large conglomerate, so we offered 40% off of everything that we make. that was never heard of. i gave a part of my business and became a part of their business. they were benefiting as much as we were. that is what changed. >> you call them partners, not even distributors. now into everything,
natural resources, retail, telecom. what sectors and markets are you most excited about? in themarkets now incific region, and a big way africa. what we have realized is that -- the people who were part turning -- partnering -- me on software it was a natural progression for us. you need start investing on things that you can touch and feel. advice of your father, things that come from the earth. rowdoes this commodities
affect you. ? >> i want to invest, not run away. oil and gas is phenomenal to get into. it is a necessity of life. it helps you in every fashion. >> when are we going to see this upturn? >> you need to go on the long run. in and getust go out. if you are in for the long run, you can do what ever you want to achieve. if you are patient enough, anything is possible. >> what time frame? my opinion would be less than a year for things to turn around. you can't sustain this type of price for very long.
our innovation goes into every sector. we bring technology to bring down the costs. of --say the production >> your plans for the future? we do have plans to go public. up the products into different companies. now we have more than $70 billion in assets and are bringing it all together. slowly but surely, we are working towards going public. i like the way things are. if everything is right, why break it? >> you almost lost everything, didn't you? >> yes.
i've built from nothing. scooters. fixing accidentalcall me an billionaire. -- my mothert called me after reading about me in the news. said, this talk about prime minister modi -- so my mother said that he became a billionaire. it's everything when your parents appreciate what you do. >> what is your take on what prime minister modi is doing. ? >> the numbers talk. i don't care what people are talking about. i feel my prime minister is
representing me properly. that makes a lot of difference. one person can make a lot of difference. i know that. inspiration changes people. they will put their life on the line just to make your dreams come true. also looking into the future, innovation, more innovation than what you have done already. you are thinking of going into the internet of things. >> yes, exactly. this is what we are working on. it's more about building value, market capitalization the internet of things is the future . it is already part of the future. platform.create a i want to be able to take dumb
things like a toothbrush or hairbrush, and then you can contact your doctor if there are signs of health problems with you. it is already part of your life. robots will not take over the world. it is doing phenomenally. -- last year we did $8.6 billion. this year we have crossed $10 billion in business. --t is a phenomenal gobbler number for a guy who was doing zero billion dollars in 2006. i'm looking at $20 billion in turnover. that is the next 2-3 years. then we are looking for that ipo. >> thank you very much. back you. rishaad: thank you.
are at oddsmembers with official policy. opec ministers gathering in vienna ahead of their official meeting, something very unusual and indicative of how much disagreement there is. venezuela says he would like to see opec cut production by 5%. iran says a majority of opec countries agreed that there should be a production cut. , no one thinks that when the time comes, opec will cut production. that is thatr saudi arabia, the single most influential member in opec, has suggested it would only cut if other countries inside and outside of the cartel were to join in the cuts. pressure for one said that it has no intention of cutting. ran's oil minister says he wants to ramp up production. it may be that this is a bluff
that they won't be called out on, an offer they want have to make good on. riyadh's tactics work to some extent, but it has also put the currency and economy under pressure. oils and slide, saudi arabia has continued to flood the markets. over the past eight months, the kingdom has churned out more aan 10 billion barrels of oil day, every day. they continue to keep pumping to put rivals out of business. however, the strategy comes at a cost. saudi's income has plummeted. the international energy agency says annual revenues may drop to $550 billion, almost passed -- half the recent average. that has forced them to tap in to savings and burned through
foreign reserves. year high in a 16 november, a sign that traders are betting against it. the question is, how far will open top producer go to maintain its position. rishaad: we will keep this thing going. challenges.ency we will discuss all of that. i will be joined by the indonesian finance minister. plus, a day where we are seeing declines across the board when it comes to markets in the asia-pacific. more when "trending business" returns. ♪ the only way to get better is to challenge yourself,
it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. looking at our top stories. asia joining the global selloff after the ecb's latest stimulus disappointed. janet yellen signaled liftoff is coming. paring theirs weekly advance. drivingodity slump investors away from riskier assets. meeting indiana vienna, saudi arabia holding its line, that it hasports been wavering basis.
talk --ds to shares taking a dip after they must face lawsuits over defective airbags that led to recalls. canderal judge says buyers pursue class actions under buyer and racketeering. turkey heading towards lunch break. i look at what is moving these markets. -- a look at what is moving these markets. >> we are seeing quite a reaction to the this appointment from mario draghi. he failed to deliver what markets. had been promised -- what markets thought had been promised. a steeper cut of rates. the nikkei heading into lunch, down by 2%. session lows at the moment.
lows, 8/10t intraday of 1%. will stay with the downward trend. the first day in four days for a decline. in shanghai tanking today, down by 2%. we have had five days of gaze for financials and banks -- of gains for financials and banks. 10 companies beginning subscriptions this week. that is weighing on some of those liquidity concerns. the chinese yuan, the midpoint today was set, the highest in a month. we're seeing it had to the highest level gains in six weeks. it has come off a little bit, 6/10 of a percent at the
moment. opec with the meeting indiana, , oil pricesenna picking up. back to you for now. rishaad: thank you. stay tuned. correspondentasia , over to you. >> good morning. the worst-performing asian 10%any -- currency, down by because investors are concerned with growth of the rupiah. good morning. with the fed likely to raise rates this month, do you expect
the rupiah? to drop further , ashere will be pressure well as for other currencies. better thanrupiah let's say in the middle of this year, because once the rupiah 13,700,wo currently at i believe that is the fundamental value of the rupiah. both central bank and government i think have a similar rhythm interns of dealing, not only with the politics, but the slowing down of economic growth. in terms of economic growth, we better growth in the third quarter, and we expect even better in the fourth quarter, so --elieve that in the year
probably around 5%. this year will be 4.8% overall. at least our economic growth is still better than many other economies. >> are you quite comfortable with the state of the economy? >> given the condition, you know. past, when we had the high economic growth, it is because of the high commodity price. it is not sustainable growth. now we are trying to come up -- not only dealing with the slowdown, but more importantly, we are trying to shift our economy from commodity-based into more manufacturing base. >> we've seen quite a number of measures in indonesia. what is next? what can we expect? .> two things first, to maintain the purchasing power of the indonesian people.
second, to promote investment in the manufacturing sector. announce are going to a second package. it will be related to the manufacturing, but more on the labor. >> will that turn the economy around? >> we need to pay attention to the labor intensive, because it creates jobs and make sure unemployment is lower. more importantly, the packages we have set up trying to set up the fundamentals for our immediate future in terms of the economic growth. we need to find a new source of economic growth. commodities is over. we need to look for work. i believe labor-intensive manufacturing, as well as
subsidies, will be the answer. >> we spoke to the vice president just this week. he a limited to the need for a rate cut -- alluded to the need for a rate cut? >> the policy right. ate. we have a good outlook for appellation, less than 3%, this year. i think from our macroeconomic perspective point of view, we need to focus first on the stability. it is a key of the macroeconomic stability. once we 10 ensure the stability thence we can ensure stability, we can talk about stimulus after the adjustment. >> there seems to be increasing pressure for -- -- think there
is pressure. we cannot interfere. i think it is a healthy discussion. >> are you for it? >> stability is number one. tax collection has been below target. how can that be reversed? >> we can still do many things. first of all, trying to improve our personal income tax collection, and secondly, -- but more importantly we are starting a parliament for a tax amnesty, which i think is important. taxfully, if we have this amnesty with other measures, we will have bigger tax base, meaning that we will have more
sustainable and higher tax revenue in the future. targets beentax too ambitious? >> it depends. this year, it might be too ambitious, but simply because the slowdown had some effect. secondly, of course, there are some measures which we cannot carry out in 2015. go through we can with the tax amnesty as well as other reforms, i think we still have a chance to get to the target. of course, government will be very realistic, so when the time comes and we feel that the target is too high, you know, we do theave any problem to adjustment in the budget spending. has there been a cabinet have you been
satisfied with the changes made by the cabinet reshuffling? >> just after the reshuffle, all ministries have similar ambitions. how can they contribute to economic growth? which i think is important. so i hope that in the near similar perception regarding something that will make growth will be spreading across all ministries. >> we are here talking about a single market. asia is still a sense that -- indonesia is still nationalistic and its policies. they cite auto production, for instance. what is being done to liberalize the sectors? >> our economy is very open, open for investment and trade,
and somehow the nationalistic view is somehow exaggerated. why? what we do is just doing the so-called protection like other .ountries whenever they feel they have the capability to produce certain goods and commodities, then of accept what is appropriate to the level of production. at the same time, it won't violate the wto regulation. developments been in indonesia, now back to being an opec member country. how do you see yourself playing that role given that you are importing? , we are still exporting as well. we need to get better access to gettingbers in terms of
imported oil, in order to do more refining in our country. we need to add refineries, but at the same time we need to have more good oil. member,ecome an opec the access to the good oil will be easier and cheaper. >> what are your thoughts on where oil prices are now? >> it is very low. it affects us. >> what is fair value? maybe $70 condition, $80. $100 might be too high for certain conditions. thank you so much for your insights this morning. there you have it. back to you. rishaad: thanks.
rishaad: let's have a look at some of those stories making headlines around the world. , an appealsius court found him guilty for the murder of his girlfriend three years ago. arrest.een under house he could face 15 years in prison when he is resentenced next year. his girlfriend's family welcome the verdict. he can only now appeal to a constitutional court. for ant putin has called
united fight against terrorism, accusing the west of creating a zone of chaos in the middle east. putin demanded an end to the double standard in western policy. u.s., he said the it is instability that threatens the entire world. world football can expect more arrests after two executives detained in zürich. 16 more officials were indicted as the u.s. widened its crackdown on corruption. there is evidence of long running schemes involving enormous sums. >> between 1991 and the o generations conspired to solicit and receive well over 200 million u.s. dollars, an alliance to sports
marketing executives who sought lucrative contracts and shut out competitors through the systematic payment of bribes and kickbacks. a look at thetake oil prices rebounding from six-year lows in london ahead of the opec meeting. theave a look at what numbers are saying about production policy and if there is any indication in a change in strategy. >> the word on the street is conduction cups coming from the same all -- cuts coming from the same old place. they are essentially talking saudi arabia. they are the biggest producer, producing more than the next three players, over 10 million barrels a day, but saudi arabia is willing to cut only if others are willing to cut, citing russia. russia is a non-opec member. about if russia
getting involved, then they are happy to cut it russia says it will not cut at the moment. >> it would be strange to cut anywhere. to drive these shale oil producers out of business, but they would only be halfway through the job. you cut now, you provide an opportunity for those people to come back into the market. what are market participants looking at? >> the commentary from opec members on whether the current working, future strategy, and how they might accommodate iran back into the fold. iran is looking to increase their production once engines are removed. rishaad: we were hearing from the indonesian finance minister, sking him about indonesia
joining opec. he fudged a little bit about it. what are other people telling you? >> indonesia is an old one, a net oil importer. line from the governor that is if they are with opec, they are more aligned to indonesian interests. rishaad: that is what he was referring to there as well. >> yeah. they are looking to expand, and the logical place is middle east. you introduce competitive tension and you might get some of the to finance your refineries. rishaad: thank you very much for that. having a look at this crucial opec winter meeting taking place in vienna. let's take a look at what we have coming next. despite a multibillion dollar bailout, it's failing to take off.
rishaad: this is bloomberg, and this is "trending business" rishaad salamat. i am rishaad salamat. to groundhas had airliners because the state can't pay for spare parts. this is despite a bailout. we are joined from mumbai with the details. what is going on here? in indiaiation market is a difficult one.
taxes and fuel are among the highest in the world. indiar carrier is -- air -- is a feeling it especially because bureaucracy is hitting the airlines. it has massive accu related losses. -- massive accumulated losses. ispite a bailout, it struggling to pay for spare parts, forcing it to ground two dreamliner's. procurea has failed to credit because of the financial crunch. it has lost money from operations on one hand come
spending money, but not getting -- on one hand, spending money, but not getting any returns. abouts remain unimpreed the turnaround plans, so there does not seem like there will be a pick up soon. air india has made this announcement about these dreamliner's. to come outping it of the losses, but that does not seem to be happening. rishaad: thanks a lot for that. right, here's a look at the stories we are following for you. toshiba is considering integrating its personal computer operations with other companies. it involves two other companies. --y are trying to reach on a agreement on a start date by april. the nikkei expects it to be the lone surviving brand. , not comingut sharp
up with eight new hit product before money runs out. it is struggling to find investors. surged, making them the risk is in japan. sharp has suffered after lower-cost rivals undercut its business. fort sales tripled tripled.4 it has maintained its outlook, raising forecast. in the declining market at 2.7% declining market. robot world in tokyo this week. engineers showcase the latest in artificial intelligence. we have this from the expo floor. ♪
>> a record 446 companies on display here at tokyo robot expo. the buzz word is machines that can learn. that meant throwing more software engineers at the problem, but there is one company doing it differently. it used to take highly skilled engineers a few days to teach robots a new tasks. learningnew the algorithm, it only takes eight hours to learn the same tasks with more than 90% accuracy. deep learning algorithms mimic the way living things process information, they are already helping google and facebook server advertising. companies, or yoda,
announcer: from our studios in new york city, this is "charlie rose." charlie rose: brian moynihan is here. he is chairman and ceo of bank of america. the company has completed a turnaround after eight years of costly litigation. it came from the financial crisis. the firm has repaired its balance sheet. it has reduced non-core assets like private equity and real estate businesses. the financial success remains closely connected to the u.s. economy. i'm pleased to have brian moynihan back at this table. brian: thank you for having me. charlie rose: you were hoping the fed would raise interest