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tv   Trending Business  Bloomberg  December 10, 2015 9:00pm-10:01pm EST

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and the final climate talks and rather final day. -- final climate talks enter their final day. the eu climate commissioner said we cannot fail now. twitter.ollow me on indonesia is getting underway since wednesday. market, there the seems to be some trepidation despite a rally. >> they are, and you von, we are , we are seeing shocked here. kong, the hang seng
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index is down by around 4/10 of 1%. you can see some upside here on some of the stocks, but even the top performer on the index is only higher by 1%. to that publicup holiday yesterday, we are seeing it is pretty flat but look at japan. up to three very heavy sessions on losses, we are seeing a weaker yen. let's have a look at what is driving the gains on the index. shotu still see there is a at oil and we do see some bargain-hunting in the u.s. overnight. atestors are still looking that downturn of the crude oil pricing. australia is also being held off at the gas players in japan. and pharmaceuticals are really lifting that again, you can see the sox in japan are really stocks inher -- the
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japan are really moving higher. if we look very quickly at how the yen is faring this morning, we can see that it is weakening currencies.t other our top story this internationalh an fosun international is been suspended in hong kong. -- has moremore information. latest?t is the zeb: yes, people have not identified that the company has
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lost contact with the ceo. he is one of the most prominent billionaires in china. they have vast business entities. take a look at some of the companies it owns. it may not be aware, but owns club med, the vacation resort company that has vacation resort companies all over the world. canada's cirque du soleil and one chase manhattan plaza in new york city. that is interest here raging across groups. this is one that we watch very closely here. and thethe core company pharmaceutical division and we are seeing reports that there is some market activity to tell you about and that is the dollar bond here, because it is at 6.8 6.875%.n --
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that reflects investor concern about how the situation may play out. we caution that the company has refuted this report by the magazine that reported it. say thatxecutives operations are proceeding is normal. they say that the report is inaccurate. accordingcording -- to a report. we will have the back story to this. we're not saying and no one is speculating as to exactly what has happened here. this initial report came to us from a magazine or we are waiting for the details and further confirmation or a denial from the company. yvonne? yvonne: hoping for some kind of announcement. thank you so much.
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facing a new lawsuit in brazil after another disaster, so marco is hit with a $79 samarco civil lawsuit -- is hit with a $79 million civil lawsuit. filing is a prosecutor the claim, and it is one of the smaller lawsuits. is smaller but it is not exactly pocket change. it would be used to fund housing for those who survived the natural disaster. the prosecution is saying that samarco failedt to prevent this and that is why the lawsuit has been filed. take a look at the shares, they are at 1.3%, although there is a lot more playing at that besides just these losses.
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samarco is half owned by bhp. this is compensation for environmental and social impact. so now there is a number of .awsuits just this week in new york, there was a major suit from the brazilian government which is worth $5.2 billion. so themedia disaster -- immediate disaster may be over but the aftermath is just getting started. yvonne: paul allen joining us live from sydney. thank you. joining us shery ahn now. shery: we have the latest health check the economy. the numbers are expected to underscore the nature of the country's growth, and with , thereconsumer spending
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is a lean production numbers. industrial production is expected to have remained near a six year low, increasing 5.7% from a year earlier. investments through this year are expected to close through the week. mccrory security says that this is the phasing out of the old economy. you will continue to see weak growth in steel, coal, and power generation. brands has had its bond downgraded to junk by s&p the agency gave the debt a stable outlook.
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the company agreed to split off its chinese division back in october, and it said that two businesses could be better operated separately. economythe chinese being rocky, it does expect success there. it aims to test a taco bell there in 2016. company canays the survive the emission scandal and won't need to sell assets. the ceo says he is committed to keeping the company's 12 rands, suggesting that they have the financial means to pull itself out of the ongoing emission scandal. in the first tv interview since the scandal broke, saying that whistleblowers didn't reveal any new investigations.
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they will make their first official visit in january to the u.s. where vw's commission cheating first emerged. he now faces the complicated for of bringing in savings a company that is not really used to this and it has a powerful workforce the defends its privileges. ry.nne: thanks, she on her website, hong kong investors are pulling out all stocks on price deductions. that is at our website and we take a closer look at how the air carriers are planning to fix their problem after being blacklisted from the eu. and what does 2016 have in store? we are going to look at the 12 months ahead when "trending business" returns. good morning.
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yvonne: 10 to look into the crystal ball now at what we can expect in the asian markets in 2016. thank you so much for joining us now as we count down to the end of the year. what a year it has been. we going to see a christmas rally? >> it is hard to predict. right now, all eyes are what is going to happen next week with the fed rate. but as we look at asia, we are keeping positive. as we go into 2016, this is for a number of reasons. this is technical where we still and weeveloped market are looking at reform which year -- which we are very positive on and lastly, evaluation --
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lastly, valuation. given that we have seen broad liquidity in china and emerging markets. yvonne: emerging markets are one to watch. with account into the fed, is it pretty much a done deal that it is going to be happening, is this going to continue to support the dollar, or has that kind of peaked a little bit? are we going to see market assets take a break, finally? medha: what we're seen so far is that the feds will look at the rate hikes as long as the details hold and are good. the u.s. and china is an important part of the process, but for now, we will be in line with what the consensus is expecting. definitely, it is pointing to a rate hike. that will be up bit of a breather for the market. it is really what happens afterwards. we don't think that the fed is
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going to be aggressive about that. yvonne: is it good to buy with the dollar now than before the fed moves? dollar can a strong help out with emerging markets and you've got to be very sensitive and look at it from this perspective. ringket,the rig it -- what do you think? the asianfor now,currency exporters will continue to be out of favor. so if we look at singapore, hong kong, or other countries nearby, they will continue to be out of favor. we will continue to look at china over the long-term, and we like health care across the board. india stands out as an investment destination, especially considering commodity prices. so you have discussed to be very
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selective. yvonne: when you talk about china, you said you are still into the traditional stocks. economy, butpeed you still see some opportunity in traditional, why? medha: well, we see two types of interesting companies, one is a long-term training of the chinese consumer and the rise of the middle class. rebalancing the economy, but that is technically a long-term trend. economy,look at the there are pockets that we are starting to see, for example in property now, where this is happening read there are enterprises -- happening. are enterprises where we are seeing very good quantity assets, and even a small change would mean a big change in efficiencies. but you've got to be very, very selective. we are seeing efficiency
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approving, industrial upgrading, those kinds of things, so really, there is a mix of new economy and old economy. yvonne: in terms of 2016, what do you think about the policy and the applications there? -- the implications there? aerybody was hoping for fourth quarter rebound, but can the data confirm any of that so far? is a gritty be any future for that in 2016? medha: china is more important right now than the rest of asia. we see more fiscal stimulus coming in from asia, and that is what asia central banks are going to look towards. definitely it has the bullets are the ammunitions to move ahead, as at that is good to be very positive for asia. yvonne: all right, medha samant joining us from fidelity investment. thank you so much. >> syrian opposition groups
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agreed for the first time to hold opposition talks it however, they still insist that assad must step down as president of syria, something that he has refused to do. it is hoped that u.n.-sponsored peace talks could begin in january. and christian university has been handed -- university's angus deaton has been handed the nobel prize, saying that china and asia has lifted people out of poverty without getting much international help. by book was criticized philanthropist bill gates. and argentina has a new president, calling the country to unite to fight property, drug trafficking, and improve
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education. his predecessor didn't attend the minute -- didn't attend the inauguration. sources have told bloomberg argentina that argentina is in early talks with international banks with loans of up to $10 million. yvonne: coming up next, going down to the wire. decisions remain as the paris climate talks near its end. we will be right back. ♪
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yvonne: this is "trending business." welcome back. talks enteredate their last lap today. there is hope that they will see a deal. >> delegates have been working overnight in france to try and get closer to a graying to a climate deal -- to agreeing to a climate deal. there are literally hundreds of areas where delegates didn't agree, but now we are narrowing that down. there are areas where language aret agreed upon and there six areas where they need to come down to just one clause
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where there are multiple clauses, and that is down from 30. these areas are narrowing down. what are the obligations of wealthy countries versus less-wealthy countries? which countries should pay for contributions to climate-related damages? these are good questions. also, how best to reduce fossil fuel emissions and should countries disclose more or less about the efforts that there are making towards tackling climate change. they are still hoping to reach an agreement by the end of friday in france, so there are still several hours to go. this agreement would come into effect in 2020, and it could possibly help cap writes -- cap rising temperatures. it could also help reduce carbon emissions as well. this agreement would need
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classification for 55 countries were 70% of global greenhouse gas emissions are made. these are areas of where it needs to be divided. this could still mean that the agreement could go forward without some of the world's biggest polluters cover china, india, and the u.s., for example. what would wonder this do for change? yvonne: yes, this could cause a problem. in terms of leicester, what did this year have different this time around? there was a flexibility in the way that countries are a lot to set strategies, for example, reducing carbon emissions. countries are now allowed to set their own strategies and now have put forward voluntary contributions for it.
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so that was an area of controversy in 1997, but perhaps more countries are willing to in gauge in this, but of course, environment groups are saying that the targets aren't perhaps hard enough and maybe going forward, there won't be enough push towards achieving longer-term goals as well. there are issues were maybe you have to compromise in one area in order to achieve the first global deal on climate change at all in the first place. but of course, critics are saying that it is still not enough. yvonne: all right, plenty of people are talking about this. let's see how this is playing out on social media. shery, what do you see? shery: celebrities at the climate talks, for example, we had alec baldwin and arnold
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schwarzenegger at a meeting with government delegates. ofhad him tweet a picture himself with the foreign french minister, you can see him there. he had also tweeted out certain comments about the climate talks. "i of his tweets saying, love this, the deal has the rally of the century, and the u.s. should fight for this." he has been trending on twitter. we also have big organizations, ,ike greenpeace usa, tweeting "will the big climate agreement from #cop21 keep also fueled in the ground?" tweeted ,ef --ghting#climatechange
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so we have lots of people talking on social media about the ongoing climate talks in paris. back to you. yvonne: thanks so much. let's take a look at the markets in asia trading right now. that stock in hong kong has been suspended, but we have seen pressure on the hang seng right now. is 30anghai composite points down and the nikkei 225 have a strong selloff, up about 1% right now as a countdown to the fed next week. coming up next, let's talk about cash again. from modhihe visit will reap rewards for india? ♪
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yvonne: the top stories trending this hour -- a report said the group's chairman is an contactable. contact with lost them. sprawling conglomerate. property interests in and pharmaceuticals. the hp is down in sydney after it and partner valet will are
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sued -- were sued. it is to protect the ride of victims of the disaster after what is described as inefficient compliance. 13 people were killed when toxic sludge swamped villages. stocks are trading higher but heading for their biggest drop since september. they are on course for a third decline as the commodities route moves on. weighing-- they are production data due at the weekend. markets, japan is bucking the trend. >> yes. look at that. a nice pickup by 1% after a tough week for japanese investors.
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losses. had the days of nice to see a little bit of a rebound. quite a lot of selling going through. they are now down to a quarter of 1%, weighed down by losses in china. korea has also turned negative. you can see it coming in. .6 of 1% in hong kong. a hall be coming back online, joining in the downbeat tone we in new zealand australia sharemarket is flat. what we are seeing is good gains coming through from the health care stocks. the u.s. dollar is starting to rally ahead of the fed meeting. health care stocks looking good. .ou can still see oil and gas
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pressure,posts under a little bit of a rebound. >> economic data is likely going to see two different pictures. malcolm, tell us about what these figures are expecting. big reports, we are expecting strength in retail. the strongest reading this year. 11.1% increase. according to the median forecast . by contrast, we are looking for industrial output to remain sluggish. which was around that week is level since 2008.
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on the investment front which has been a key pillar, that slow down keeps going. we are looking to year to date figure of 10.1%. we have seen a slew of mixed data for sure. the soft trade report was a big thing. what is the health now of the economy as we wrap up? >> it doesn't look to healthy or two bad. any hope for a fourth quarter bounce seem to have been --. maybe the fiscal stimulus would start to kick in and we would see a pickup. that doesn't seem to be happening according to the data so far. the other one we are watching for, we are not sure yet. the credit aggregate. they was -- there was a surprising lack of lending last reading.
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a rebound in november is forecast by economists. that could be a good sign. economists are expecting this grind to continue, the views are mixed. will the stimulus pick up or will property overhang? it remains to be seen. yvonne: probably know hard landing. >> few were expecting that. there is still plenty of firepower. the government has plenty of room to spend if they want to. there should be plenty of policy options if they do that. china is hoping increased for investment may offer the currency that fell to a four-year low this week. our investors losing interest in buying chinese bonds? let's bring in one expert.
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what is going on here? debt appears to be losing its appeal. >> it is not going according to plan. we have seen closing at the four-year low over the past few advantage is at a 4-5-year low. that is faster, eroding the power of chinese debt. that will probably have capital flows from asia. >> we have seen the year in decline a fear of bit since that decision. is this a signal of policy change? >> i'm not sure that is what is happening. it is nine days since we have
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had the imf decision. propping up the currency, they are trying to have to relieve some pressure so there is no run on the yuan next week. yvonne: are they going to give then? >> one must understand that the prime minister has little option but to allow it to depreciate. exports are down. the economy is slowing. announced has economic growth over the next five years. to do that, one has little option but to allow a depreciation. the evaluations are a strong word. >> a soft weakening may be. thank you so much for joining us. on some other stories, three chinese nationals arrested
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in the u.s. accused of plotting to steal chips from the military. they were caught while trying to take delivery of chips met him for cover -- from an undercover agent. were investigating for trafficking in fake semi conductors. they face up to 20 years in prison. ceo,e lookout for a new open to internet and external candidates. they will oversee development of the international wing. they have resigned to pursue new endeavors. his deputy has stepped up. his chairman will be more involved in management. 20 seeking to recruit after bankers in the u.s.. to startrage plans covering the region's technology industry to build up a new client space.
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double he hopes to investment banking revenue over the next few years. japanese prime minister shinzo abe will assign deals on defense and high-speed rails during a three-day visit to india. now viais joining us skype. great to see you. he is helping to cash in on this personal friendship. >> this is a trap where we are expecting this incredible chemistry to pay off. a deal that everyone is going to be watching for, to build the first high-speed rail grade. it would be a coup for japan, for india it is important financially. it would link mumbai with a major city. another deal we are expecting to
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be announced is an agreement for greater defense equipment cooperation between the two nations. india and japan have already .een drawing closely together this would be an extension of that. yvonne: it seems the relationship has been the best it has ever been. what is drawn in the and japan closer? chemistry,om the there are two major reasons. one is china. both countries share apprehension. japan is barring the east china sea with china. they have a war along the northern border, and more recently the expansion into the indian ocean region, they help build ports in pakistan. that is the geopolitical reason. investmentery good
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partners. india has incredible needs. japanese countries are good at those projects. japan brings deep pockets. yvonne: there seem to be some parallels as well. what makes japan and attractive partner? india wanted to draw investment into infrastructure from the u.s., it would have to find that investment from american companies which japan is good at. getting the government to work closely together. the japanese government will open doors to get these companies to invest in india. another big reason, india is making made in india campaign. japanese companies are looking for new manufacturing bases.
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it offers a huge potential market as well. yvonne: a lot of deals to look out for. next, the spotlight over safety concerns in europe. we will have details when we return. ♪
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yvonne: welcome back. these are the stories making headlines around the world. they passed on american gun store. the semiautomatic was made by serbia and deliver to an online dealer in 2013. it is not clear how the gun ended up in france. several paris weapons were made. they were all delivered legally to customers.
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the climate talks in paris into their final day with a draft deal that leaves other issues unresolved. the draft includes an hundred places where decisions still have to be made including multiple options in brackets or blank spaces. 190 countries are trying to agree. requirescessful 1997 only rich nations to do so. north korea has hinted it has developed an atomic weapon and it is ready to use it. they have said the country is a powerful nuclear state, ready to decimate a -- detonate a hydrogen bomb. the united states and others say it is unlikely he has such a capability.
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thai airways has narrowly avoided being barred from flying into the eu but regulators have cap banks on noticed over the safety standards. for more let's head over to singapore. really great to see you. it seems like thailand has avoided being on this safety blacklist out of the eu. what is the major fallout that was averted? >> the impact might not have been as great. europeanave a large union. impacted.irs would be the impact if it does come down later will be minimal.
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hopefully if they are able to implement this from the plans they have been starting to implement they will be able to avoid it altogether. i don't think the impact is as big as people say it will be anyway. the eu and the u.s. regulators have singled out thailand, in terms of the issues , that is a serious issue. what does this mean in terms of credibility in thailand? >> it doesn't mean anything about the individual airlines. , itcivil aviation authority -- where the fleet in thailand nearly doubled in size. there was new airlines launched.
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forthe amount of resources inspectors didn't increase. that has been a major issue raised. what has happened is they have to bring in outside expertise to meet the international standard. the airlines themselves, it doesn't mean anything individually. it just means that the government doesn't have the infrastructure and resources in place. because of that these issues have been raised and are being dealt with. yvonne: some issues that may have fallen through the crack's. they talk about expert seeking how -- help. has this change your view? what reforms do you want to see out of this. wherwill there be enough? >> i think it is already in the
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works. it just takes time to implement. they have been bringing in people from the outside, starting to process. it takes time. but a lot of the inspectors actually that used to have -- they took jobs within the industry of the airlines. unfortunately the government was in offering to keep these people a few years ago. they are going to be enticed back or required to turn back to the government to help the industry overall. it sounds kind of like a backwards step but actually it is a positive step. if the industry has to deal with this, all the airlines will benefit. they are cooperating with this initiative. over time they will be able to resolve this. it just takes time. the eu is patient and will wait. in the meantime there is some
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impact for north asia expansion from the startup carriers, which is asia ex. they have been impacted by these issues because they were in the startup phase and were going to expand that were unable to do so. besides that, the impact has been minimal and thailand is starting to address these issues. hopefully next year this issue will be resolved and the airlines can go back to shredded jewsheir without this overhanging them. yvonne: we have 40 seconds. i wanted to get your outlook for these carriers. you talk about thai airways. or continue to see upside 2016. what about for the other ones, such as thai air asia and bangkok airways?
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>> both should see improvements. they are already profitable despite challenging markets. they have had one of the highest margins in southeast asia this year and last year. they have continued to be a strong performer. a lot of people don't know about them. they are benefiting from inbound growth from china. they are in a good position. they will see an improvement. fuel prices are down. it takes time for the restructuring to be implemented and cost reductions a are targeting to be implemented and achieved. a big question is how will the market from a demand perspective the next year? it has a lot of fluctuations year to year. it affects their ability to be profitable again. it will hinge on that.
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what the challenges in the market and the competition will be difficult. they nevertheless should see improvements in a cheer. the carriers are the domestic carriers. they are exposed to the domestic market. they have seen intense competition. yvonne: great. thank you. we appreciate it. that's all the time we have. thank you for joining us. paymentp next, problems. more reaction coming up. ♪
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yvonne: india's government has
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been accused of defaulting on debt to the airport authority. going 24 million dollars, saying it has not skipped any payment since january. he said she said. what is going on? the carriers shares can under stress after we heard the minister who told parliament to request the budget carries default it. $24 million is what is being offered. it was responsible for creating, updating several infrastructures. mode a cash and carry
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after the default. the cash flows remained suspect. [inaudible] in after theyg were forced to undertake restructuring on the back of severe financial losses, and it is failing to find an investor. you take a lot of that stock going on the tear there. thank you. that is it for us and chinese business. stay tuned for asia edge. we will discuss the key challenges in the global economy. , this isming year
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bloomberg television, stay with us. ♪
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>> from our studios in new york city, this is "charlie rose." charlie: we begin with an update on the san bernardino shooting. federal authorities have learned that the husband and wife the killed 14 people last week were radicalized two years ago. that is before crisis emerged as a major terrorist group your did here's what james comey told the senate judiciary committee during his appearance on capitol hill today. james comey: i can only say so much about it at this point. they were actually radicalized before they started dating online.


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