Skip to main content

tv   Trending Business  Bloomberg  April 17, 2016 9:00pm-11:01pm EDT

9:00 pm
yvonne: good morning. it is monday, the 18th of april. i am yvonne man. this is "trending business". ♪ we are going to be live in singapore and sydney, but after oil on the slide marathon talks ended in failure. nations said they would not cap production without iran. pulled stocks down from a four-month high.
9:01 pm
japanese stocks have lost $140 billion so far to date. brazilian lawmakers are voting on the impeachment of the president. campaignescribed the to topple her as a coup orchestrated by her deputy. , don'tme on twitter hashtag, include the e #trendingbusiness. the oil price plunging, asian stocks retreating. juliette: good morning. it is all about the oil price and the stronger yen. taiwan,, singapore, falling in the selling. the kospi now down by a tense of 1%. has come back a
9:02 pm
little from losses, over 3% in the early session. to earthquake adding concerns about how much the damage will cost the japanese economy, and we continue to see the yen surge playing on the export companies. is only downsx 200 half of 1% at the moment, so coming back from earlier losses. new zealand leading the charge, thana 10th of 1%, a better expected cpi number for the first quarter. we are seeing the oil plunge have an impact on energy players in the region. there has been a flight to the safe haven, gold price supporting, and the nation's largest carrier, qantas, has cut its expansion plans.
9:03 pm
a real estate company has just update, the share price down by 29%. the japanese yen is weighing into investor sentiment, continuing to strengthen against the dollar, 108.05 at the moment. prices china property coming on the bottom of the hour when hong kong and china open. yvonne: thank you. our top story, the pressure on, oil prices on the slide after the collapse of the output talks in doha. what now, david? no deal. if iranpec saying that is not going to play, we are not going to play.
9:04 pm
there was a reasonable amount of optimism built into those talks. the discussions took more than 10 hours longer than planned. the oil ministers walked away with nothing. the meeting was pushed back a to hours after the saudis the surprise of many present byered its position insisting iran be part of the deal. attend ated not to the last minute and had said it would not be part of any deal. russia's energy minister, not hiding his displeasure at the change. also the host minister, where do we go from here? think we have not reach
9:05 pm
those expectations we had when we prepared this meeting. how could a country that did not in the meeting be the result for no agreement? this is the position of the largest producer, saudi arabia, and they think all opec member should participate. that weeeting concluded for furthere from now untild opec alling of participating countries will consult amongst themselves and with others. >> very quickly. wait until new york takes their first go at this piece of news.
9:06 pm
thank you. we will take a more detailed look at that story later in the show. we want your opinion. some breaking news, brazilian lawmakers are on the verge of voting to him peach -- to him peach the president. privately says the end is near. the lower house of parliament is voting now. joining us now on the line, good to have you, is this the end of the road for the president? road ands the indo one the beginning of a long neck strode. this is the vote in the lower road.-- of a long next the lowere vote in house, and the upper house will
9:07 pm
probably go along with what the lower house it decides, but this is not the very into. yvonne: you mentioned what will happen in the sentence, which could happen during this motion going forward. the coup mongers were stronger, but there will be a fight, so what will happen next? it is expected that the government will try to of appeal raised on the merit of this impeachment request being heard. tricksased on accounting that the president used to hide a budget deficit. she is not being impeached for corruption or any of the news headlines about brazil. , and it isget issue likely the government will try to challenge that in court. yvonne: can you give us a glimpse, a description of, of what it is like in the streets
9:08 pm
of brazil right now? we have seen supporters from both camps point out onto the streets. give us a glimpse of that. , on one side sense you have the pro-impeachment protesters, on the other side, you have the pro-government protesters. , you have a lot of the opposition congressmen who are treating this as game over for the president, talking about the day after and what will come next for brazil. yvonne: thank you so much. thisntinued to watch coming out of brazil. opposition lawmakers hang onto that clearly to impeach the president. thank you so much. closer to home, china has accused international ratings agencies of biased after
9:09 pm
lowering their sovereign outlooks. speaking in washington after the , so theseng downgrades happened last month, and china has taken some time to respond here. of a delayedit reaction, an interesting given the initial reaction from china was that they did not care too much about the cuts because it had little impact, but stronger language coming through from the , takingfinance minister the opportunity to denounce the international ratings agencies for bias against china. he says the downgrades don't reflect the market performance of that debt and don't reflect the economic realities. he points to the high levels of gdp growth at 6.7 percent and the first quarter quarter in line with the government targets , despite, as you can see,
9:10 pm
topline gdp growth falling from double digits in 2010 to that 6.5% level that were seeing now. not actuallygdp is what the ratings agencies are only concerned about. when they cut their outlook on sovereign debt for china, they cited the debt burden which went from 164% to almost 250% of gdp between 2000 8-2015, and the cost of servicing that debt is the concern. that is already a significant drag on growth and will only be exacerbated going further. you can see the problem in the search and chinese bonds, at the same time this recovery being field by more debt, march aggregate financing, 360 billion dollars, one of the highest on record and comes on the back of that record lending that we saw at the beginning of this year, a lot of that going into the property market.
9:11 pm
that has been fueling the recovery. the finance minister says that ratings agencies and the imf, which has also warned of the rocky china rebalancing, he says they are not familiar with the reforms in the pipeline, including the controversy of to equity swap program. he said the supply-side measures are also in the works. counting downlso to those property prices at the bottom of the hour. some other stories we are watching for you today. morning. the world's finance chiefs and did spring talks in washington on an up the note but cautioned the financial calm may only be to liberate. they say risks have stabilize, but christine lagarde explaining that the talks were a bit of collective therapy to move from the negative situation to a more positive approach. still, christine lagarde was cautious. >> there was not exactly the
9:12 pm
same level of anxiety, but i think there was an equal level a collectived endeavor to identify the solution and the responses to the global economic situation. finance ministers and shanghai pledge to use all policy tools, monetary, fiscal, and structural, to stimulate growth and reiterated that monetary policy alone can't produced balanced growth. chancellorbrexit, osborne said the risks have risen and the universal view was that it would cause immediate short-term shock and instability , and that there would be a long-term cost to the world economy. japan companies continue to do with the aftermath of earthquakes. toyo to macy off rating profits macyed by -- toyota
9:13 pm
operating profits reduced after the earthquake disrupted supplies. extend to shifts will other assembly lines this week tour europe that stock is falling today. honda says it is suspending production at its motorcycle plant through monday, while nissan stopped output. today and tokyo trading after a stop in , keyction of camera chips components and iphones and digital cameras. the bankin washington, of japan governor said he was monitoring the economic impact of the disaster, which was hard estimate. the japanese prime minister has increased the number of rescue workers to 25,000 in the affected areas. mitsui looks to grab a
9:14 pm
bigger share of cross-border mergers and acquisitions, hiring a former barclays veteran to lead a team and will hire 10 more senior backers over the coming months. bank in fellow japanese expanding in the u.s., coming at a time when other competitors are cutting costs as market volatility prompted them from pulling back -- prompted them to pull back. is seeking toi boost income abroad by leveraging relationships with corporate clients. yvonne: thank you. storing data through flash memory. ofwill hear the secrets
9:15 pm
their customers. how low can crude go? the market is up next. ♪
9:16 pm
9:17 pm
plummeting.n stocks thank you for joining us. iran was not playing ball, but this conditional offer from the saudis led to the collapse in talks. were you surprised by the change in tone? difficult.t was commentaryajority of predicted the outcome.
9:18 pm
it really was not in the saudi interest politically or economically to tie its hands at this stage. think a more interesting aspect is to think about the implications. had there been an agreement, there would have been positive formalization of the big players. saudi was agreeing that it would non-opecto replace production, particularly lower u.s. production, so theoretically leaving that own that as ability -- possibility. i think iran's production
9:19 pm
increases will be slow going from here. they have done the easy part. from here on in, they have to infrastructure, so i don't think will need to increase production under that scenario. i think they will be happy to see production fall back and the market move towards a balance. yvonne: it seems like they're holding their ground, but what does it mean in terms of the overall rebalancing of the market. most people are saying that this deal that would have gone have seen the rebalancing speed up. how much is this delayed now? my feeling is that it probably has not delayed in that sense the agreement was about a contingency. if it had been adhered to, it would've put a cap on further production increases by the big
9:20 pm
opec producers outside the saudis, kuwait, and probably iraq. the chances are that they are unlikely to increase production much anyway. end whole in the game -- in game has been to increase production faster -- limit production faster than they did in the 1980's. they want to bleed out the higher cost producers, and so as long as that continues to progress, there's not a lot of point in increasing production, so we are going to move towards a balance. thise: we've seen production freeze come a very much baked into the prices of equities, and we've regained all the losses we saw at the start of this year. now, back tos mean
9:21 pm
a risk off until we see another meeting? i think this is very interesting today, because essentially the meeting created a bit of a conundrum for oil traders and the wider scenario in general. you had theand, majority of analysts saying that i did not think there would be an agreement, and even if there was, it would not make much of a difference. on the other hand, you had a stronger oil price. either the weight of money in the market is agreed with analysts, or possibly, and more likely, the market had not been about the doha meeting. it has been about an underlying improvement. the doha meeting was just a bit of a froth on the top. thatl be interested to see
9:22 pm
equity and oil markets have had a limited reaction today. we might see a little bit of a pullback today, but continued to wash around these high levels we have established in recent weeks. thank you so much. i appreciate your insight. >> these of the stories making headlines around the world. story at aping brazil, live pictures there as lawmakers are on the verge of impeaching the president. the lower house is voting now, and then the motion goes to the senate. made a last-ditch appeal for support a head of the vote, having lost most of her allies in several members of her coalition government. the number of people killed and 246.or has risen to strucknitude 7.8 tremor
9:23 pm
170 kilometers northwest of the capitol and was one of the strongest in decades. officials say there is considerable damage and the area was hit like dozens of aftershocks. the new president of myanmar says he will release more political prisoners amidst sweeping democratic changes under the new government. the first freely elected administration for more than 50 years. opponents of the old military backed regime were commonly arrested and jailed. it is not clear how many political prisoners there are. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. yvonne: an early election looming in australia, as turnbull looks to stamp his authority. you're watching #trendingbusiness. ♪
9:24 pm
9:25 pm
yvonne: australian senators have returned to duty to debate two
9:26 pm
bills that could give the term ball government a trigger for a -- turnbull a trigger for an early election. cross over to paul allen in sydney. what is the latest? the governor general spoke to both houses and then let them get to it. the debate dissented into political point scoring, so hopes are not high that either bill will get past. up withdon't, we end that double dissolution trigger that you describe. what that means is the entire senate would be up for grabs in an early poll, most likely on july 2. bills aref these two in the hands of 6-8 cross bench senators, who will likely lose the jobs if that early election is held. yvonne: paul allen watching that
9:27 pm
for us. thank you so much. more to come on bloomberg television. you are watching "trending business", china property prices just after the break. stay with us. ♪
9:28 pm
9:29 pm
yvonne: oil drops after talks in doha, no deal. japaneseeighing on equities, sharp losses across the board, smaller falls in sydney and singapore. the aussie dollar and kiwi dollar also lower today. president of brazil's said a vote in the lower house of parliament is wrong. but hert is continuing,
9:30 pm
opponents seem certain to secure the majority needed. the issue would move to the senate, where a simple majority would see the president suspended while an impeachment trial is held. the world's finance chiefs have finished talks in washington on an upbeat note. had stabilized after a rocky start to 2016, and concerns have eased since february 2 20 meeting in shanghai. they remain cautious about brazil's political crisis, a possible brexit, and china slowdown. china property data coming out in a couple of minutes. we are monitoring the market open in shanghai and hong kong. a similar selloff as in the rest of the region. the hang seng down by almost 1%. we've been seeing oil producers under significant pressure.
9:31 pm
having a look at the shanghai composite, opening lower by 1%, as well as waiting for the china property data coming through. we will be watching those china property producers and stocks after that is released. the kospi is down, and a come but in the nikkei 225, now only, the asx 200 down by a 10th of 1% despite the huge selloff in the oil producers. elsewhere, the philippines coming online, down by 2/10 of 1%. new zealand appears to be
9:32 pm
buffering this a little bit better. yvonne: thank you. breaking news, china released the latest property prices. unsurprisingly, gains across the board when it comes to china property prices, particularly the main cities. up and 62 cities month on month. existingng that across city prices. shanghai, up 6.2% on month. new home prices for shanghai up 6.3%, newing up by home prices in the chinese capital up by 3% on month. new home prices were down and 29 cities year on year, up in 62 cities month on month. cities surveyed by the government, so across the
9:33 pm
board arrives. this is about upward trajectory that we have had since the easing cycle began, six rate cut huge november 2014, and a amount of new financing, lending, leverage going into the economy, a lot of that going into the property sector and has driven these home prices, particularly across the major cities. we are still waiting on the nitty-gritty in terms of what the individual's at the individual safety breakdown is, but certainly expecting a 6% rise in home prices in the main cities. continue to see that recovery when it comes to smaller cities struggling to get rid of that inventory glut. the major cities continuing to see this overheated market that the authorities have been trying to clamp down on. prices ining home china continuing to increase in
9:34 pm
the month of march. yvonne: thank you so much. after talks dragged on for hours, 10 hours longer than planned, but produced no common ground. let's go to our bloomberg commodities managing editor joining us live from singapore. great to see you. why no deal? was it because of iran? it was theectively country that did not turn up the killed off any hope of a deal. and advance, iran said it was not ready to cap output until production had reached pre-sanction levels. it called the notion of freezing its oil production is ridiculous. the day before the meeting, the iranian oil minister said he was not going to attend. deal would amount to self imposes sanctions on the country. day before time, the
9:35 pm
the saudi arabians had said there would be no deal without consensus, without the presence of iran, so effectively any hopes of a deal was dead in the water. dead and the water, so what is next for oil? in june, also possible production free stocks, russians say possibly in october now, so what is next? these talks will not do much to affect supply and demand, two of the main champions of a potential freeze, russia and iraq, already producing close to record levels. for the time being, there is another issue that the markets may be overlooking, and this is the worker dispute in kuwait, opec's fourth biggest producer. production has declined by almost 60%, a significant drop in production, potentially a
9:36 pm
much bigger deal. at the moment, the market is focused on the failure to reach an accord in doha. it does send a clear message to the market, and that is that global oil producers are unable to reach consensus, unable to have a concerted effort to address the prices. it is each country itself. but does meet in june, until then, it is effectively each country for itself. less optimism heading into those meetings as well. thank you so much. clearly not the best day to are then oil, so where best bets piling up at the moment? david is standing by the bloomberg. looking at the oil market and how it is trading at the moment. these harris bets are piling up. whenll get a better idea
9:37 pm
new york updates later on, so back to this. the -- function. what this shows you is a 3-d is, at where the market tracking strike prices across the entire options market. a few things. this is very complex. let me move this around. , that is shows you his your strike price over this contract at the moment, which is basically trading at $38. as you move into the future, and let me shift to this around. this tracks strike prices all 24. way down up until 200 it shows you how the market is more inclined towards
9:38 pm
downtrends. when you have rising oil prices, that would turn a little bit higher. very cool function. let's have a look as far as the oil prices concern. it is a fibonacci retracement to win prices collapsed in 2014. if we did have a deal, that would have nudged the price above the next level. obviously, we are further than that at the moment. analysts are saying the price match the go, one of them thanks that we could see a knee-jerk reaction down to 30. that was one of the stories this morning as well.
9:39 pm
you see how divisive the talks are now, saudi in the middle, just really coming into play if you look at when the meetings will take place next on june 2. also, maybe late october, another possibility of talks. the relation between oil and stocks has been robust. that is when oil price bottomed in mid february. the green line is the energy index. if you want to break it down looking at the points gainers, the oil plays, and let's see where this goes next. it has been a barometer of risk appetite.
9:40 pm
past three hours, it has not given the best picture of where we go from here. a pretty reaction today in the markets. thank you so much. telecoms biggest , maytor may be vetoed be blocked within weeks. regulators are unconvinced that hutchinson's will create enough competition. they want the company to sell part of their network infrastructure to a new rival. the sunday telegraph said hutchinson would challenge any blocks in court. preparing for change at the top. the ceo plans to quit in two years, and the bank is compiling candidates to replace him. the bank will first appoint a new chairman to help pick the next chief executive.
9:41 pm
the current ceo took over in 2011 and has scaled back it hsbc operations, cutting 90,000 jobs under pressure from shareholders. its shares have fallen 16% this year. sources that tell bloomberg that china's second-biggest online retailer, jd.com, is looking to raise $1.5 billion and i bonded sale. the company has declined to comment. china's internet giants are providing a haven for bond investors. the chinese premier one cities to help drive growth through innovation and entrepreneurship. that is prompting them to look for ways to build the silicon valley of china. we really have seen a lot of money flooding into the start ups. builds china doing to these companies? >> economic growth has slowed
9:42 pm
down. we have seen china encouraged its provinces and cities to to set upvation, startups, and drive startups. hidden beneficiary of this trend has been the health care , younger new start ups entrepreneurs and scientists from all over the world coming back to china and investing in this. yvonne: we are seeing a big drive here. what does this mean for the health care industry? >> china's health care industry has not been at the forefront of isovation globally, so this a chance for the scientists to get money and attention for the first time. you have new entrepreneurs and scientists working on cutting edge science like 3-d bio printing.
9:43 pm
it is an indication of their expanding ambitions. yvonne: there is some question whether the chinese government will be backing entrepreneurship as well. lookinguld we be forward to from these health care companies? >> health and science research takes years to pay off. what we are looking at his long-term. are a lot of challenges and nothing is assured deal, but if it works at, we will see a lot of innovation from these companies. it is many years down the line still. yvonne: thank you so much. boysg up next, the flash of cloud computing, a company that claims to be shaking up data storage. stay with us. ♪
9:44 pm
9:45 pm
>> it is 9:45 a.m. in hong kong.
9:46 pm
these of the stories making headlines around the world. the leading candidate for the philippine presidential election says he regrets what he called his gutter language after joking about a woman who was raped and murdered. a video emerged over the weekend telling laughing supporters that he was angry that such a beautiful woman had been killed. leads the opinion polls ahead of next month's election, but rival candidates say his comments show he is not fit to hold office. china's second highest ranking military commander has visited the disputed islands in the south china sea. the general led a group of military and civilian officials to inspect construction projects . taiwan, thenes, non-, and brunei also claim all are part of the chain. announced the u.s.
9:47 pm
joint patrols with the philippines of the area. a british airways flight landed safely at heathrow after being struck by what is thought to be a drone. the pilot reported an object hitting the front of the aircraft, which had 137 passengers and crew on board. it is thought to be the fourth time that a drone has collided with a commercial airliner in the u k, although dozens of near misses have been reported. the national air transport association calls them a real and growing threat. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. data storage is not something discussed often, but it is an important part of the tech industry, worth $24 billion. pure storage saw the opportunity to innovate by moving away from traditional hard drives to flash , and this has led many
9:48 pm
companies to rethink how they approach the issue. joining me now is the ceo. glad to have you here in hong kong. what does this technology bring to the industry? the storage and use today was designed more than 20 years ago. that is unheard of in data center technology. like smartphones transition to flash memory, we see the whole of data center storage going that way. the technology is faster, but more dense, more power efficient, and more reliable, so there is every reason to switch, especially since we have brought the cost down to where it is cheaper to buy. disruptioncean -- allows us to play for the number one position in this $24 billion market in the years to come. faster, websites, application response, but it is
9:49 pm
still expensive and many companies eyes. you said the shift is changing, and you do see it, but what about the asia region? what is the demand like? the opportunity is fantastic all around the world. there is so much data that businesses need to get the job stunned. 80% of businesses felt they just grow the top line 20% by harvesting insights they already have in their existing data sets, but they can't get at that information fast enough because it is locked on these archaic, mechanical devices, so flash allows that transformation. costwe got started, flash four times as much as a mechanical disc, so we worked hard to shrink the amount you would need in duplication and compression, but the market has moved on. flash is cheaper than fast mechanical disk drives, so we
9:50 pm
are in a situation where we free up a lot of dollars that customers can turn to other problems by swapping out this archaic technology with flash. reaching $1.6rket billion last year in 2014i should say, but still fractional in terms of the broader data storage. where do see growth going in the next 5-10 years? >> its growing much quicker than the overall data market. gardner says it is 60% annual growth rate. pure storage is growing at 100 for 50% -- at 150%. that positions us to play for the number one position in this market, which is why we got into it. yvonne: asia, and china and particular, we see mobile penetration huge and the mainland, alibaba, tencent, by do, really putting a lot of r&d
9:51 pm
into this as well. are there some potential partnerships with these big players? >> absolutely. the technology has done well with cloud-oriented customers. into it, workday, linkedin, they all have substantial asian and chinese operations we participate in, but there are local companies that use us in their emperor structure. with many of the multinational investment banks that have production deployments a 24 billions dollar market that is rapidly tipping towards flash, crating opportunity across the board. yvonne: you went public in october last year, no prophet, dwindling cash, and stiff competition. you could be a latecomer in the industry, would you expect in terms of growth and how pure storage can turn around and make money for the company? the business iright where
9:52 pm
we wanted to be, the fastest-growing company and storage history, six and a main dollar revenue run rate -- $600 million revenue run rate. we were 32 million dollars cash flow positive, so we are generating cash from operations. we are not profitable yet because were putting those dollars into our business, hiring salespeople, support, professionals to take care of our customers. one other critical area of investment is encryption. we have very strong encryption technologies built into the product, guaranteeing the privacy of customer data, and that is important to our success and a huge differentiator from the other players in the space. is currently in merger talks with dell. you see some opportunities for consolidation in the market? >> we built the company to keep it independent.
9:53 pm
during the growth phase, it does not make sense for us to become part of another storage company. we want to disrupt and change the industry landscape. are talking about something that is 50 times more reliable, 100 times simpler to deploy at scale, 10-20 times faster, and they can save energy, cooling, space costs, so you have something that is growing at 150% year over year. we like our prospects as an independent. yvonne: thank you for joining us. plenty more to come on "trending business". stay with us. ♪
9:54 pm
9:55 pm
yvonne: some stories making headlines. shares in sydney real estate company the grass of plunge 34%. 55% since itsown
9:56 pm
ipo in december. revenue ending june 30 expected to be $104 million with operating proffered around $20 million, down from $24 million. brunt of aring the property slowdown in sydney, it's key market. auto home has trumped a bid to buy 48% of the company. shares in new york rose more than 6.5% on friday, closing at their highest since january 5. while disney could be in line for one of its best years ever after the jumble -- jungle book top box office on his debut. the retelling brought in more
9:57 pm
than $100 million. arbershop, the next cut, came distant second with just $20 million. some analysts say disney could save for $1 billion movies this year. ♪
9:58 pm
9:59 pm
>> good morning it is the 18th of april. this is trending business. ♪ we will be live in tokyo and singapore and brasilia this hour. asian stocks are sliding dragged down by japan and the family of oil -- a failure of oil nations to reach an agreement on oil production. one of the biggest losers is qantas. down 14% after planning to cut its domestic capacity expansion.
10:00 pm
it's biggest fallen more than two years. brazilian lawmakers have voted to impeach the president. achieve the to it two thirds majority in the lower house. the motion now goes to the senate. asian stocks are easing from four-month highs. theproducers leading decline. trading in indonesia is just getting underway. is not a great start to the trading week. we are seeing the regional index off those highs from last week. really led by losses coming through from japan. to prettylosses back much where they started this morning. down by 3%. we have seen a number of the earthquake affected companies come under pressure as well. price down byare
10:01 pm
almost 9%. weakness to on the share market around 9/10 of 1% in singapore. they are joining in that selling that we have been seeing across southeast asia. down one third of 1%. new zealand has held up quite well today. here are a few of the individual movers. the casinos in hong kong. the recovery in the casino theyr is now maturing but say you should be selective about what you buy. they have recommended galaxy. in australia we are seeing this big fall coming through. that is actually the biggest drop in two years. qantas cutting lists planned domestic capacity expansion. due to the federal election in australia and also a drop in consumer confidence is having an impact.
10:02 pm
iron or rally could search official out. -- physical out. fizzle out. here are some of the worst affected companies in japan after the earthquake. quite a lot of selling coming through in the region. yvonne: the meeting dragged on hours longer than planned but it still produce no common ground about oil production. why no deal? the country that didn't turn up that effectively killed off any hope of the deal. iran had made clear that it was not ready to cap production and
10:03 pm
sale had reached pre-sanction levels. it'd said that the idea of it joining a freeze was ridiculous. the day before the talks, the arabian oil minister said he would not attend. he said that a deal to freeze iran's production was tantamount to self-imposed sanctions. part, the saudi's head said there would be no deal if there was no consensus. namely if iran was not around the table. call it what you like. this was dead the water. yvonne: what is next for the oil markets? alex: the demise of these talks probably wouldn't do much to affect the supply and demand balance. two of the countries that have committed to a freeze, russia and iraq, are pumping at record levels. most analysts who have reported failure of the
10:04 pm
deal haven't really changed their outlook for oil prices. this year gradual recovery over the remainder of this year. is notise of these talks going to change things. it sent a very clear signal to the markets that the world's oil producers are unable to reach consensus in a concerted effort to address the collapsing prices. to berket appears ignoring a potentially much bigger story which is the wage disputes in kuwait than have cut production there. by almost 60%. that is opec's fourth biggest producer. that is a major decline in production. taken in june. until then it is business as usual. each country for itself.
10:05 pm
yvonne: we will take a more detailed look at that story later on in this show. new home prices in china accelerated last month. as accelerated credit and easing spurred demand. still apache recovery. haidi: we are seeing this to speed recovery play out. at least when it comes to the major chinese economy. new-home prices excluding the affordable housing option climbing across 62 over the 70 attracted by the government. 47 in february. a significant uptick. in beijing up 3%. in shanghai of 3.6%.
10:06 pm
in terms of existing homes we are also seeing major cities taking gains of more than 6%. this apache seeing recovery. now we have authorities in the cities tightening measures. in terms of calling these fairly monumental price levels. all this is being driven up by this massive ramp-up in credit. when it comes to lending new loans are hitting a record high. atregate financing coming in $360 billion. while the highest readings we have had recent years. certainly blowing out analysts expectations. a lot of it is going to the property market in china. that is on top of the current
10:07 pm
asian area that has had six rate cuts since late 2014. of course they're now doubts about how sustainable this recovery really is. shanghai may clamp down on the comes down to who is eligible to buy more homes. announcing new measures to try to curb what he calls speculative buying. continuing to struggle with the inventory glut. there still a lot of empty homes across china. for a more tailored approach to deal with the individual situations. yvonne: let's take a look at some other stories. the world's finance chiefs ended their talks in washington on an upbeat note. they said risks to the global recovery have stabilized but the imf managing director christine lagarde explained that the talks were a bit of collective therapy
10:08 pm
to move from a negative situation to a more positive one. aboutlagarde was cautious what lies ahead. christine lagarde: there was not exactly the same level of anxiety but i think there was equal level of concern and a collective endeavor to identify the solution. and the responses to the global situation. yvonne: the president of brazil has lost a key vote in the lower house on impeachment. according to a government leader in congress. live pictures at a brazilian right now. lawmakers are cheering and we have been waiting for this vote to come through. now the like president's allies concede their defeat in congress on this impeachment vote.
10:09 pm
as we can turn the game around in the senate. mongers were stronger, he said. we have been waiting for the tally. they needed a two thirds majority among the hundred 13 deputies. anna: we just reached the magic number of 342 members in favor of impeachment. this is what everyone was waiting for to see if they would reach this threshold. as late as yesterday they were saying they believed they could get 172 votes they needed against impeachment. now we definitely know that is not the case. we're looking to see the margin by which she will be defeated in the lower house.
10:10 pm
yvonne: can they turn the game around? some analysts saying that if she lost today it will be very hard for her to avoid being ousted. anna: it will be an uphill battle in the senate. they said the workers party definitely takes the fight to the senate and will not give up now. it is a long shot. yvonne: we have seen markets resurgence on the idea of the vice president stepping in and bringing about change in brazil. what are people saying about wood anna: it was put forward by his party last year. the markets have looked
10:11 pm
favorably on his program. his policy proposals. it will be tough for him as well. deeply divided. it looks like he has the support of the lower house. brazilian politics is clearly shifting. there's no guarantee. let's go back to actuall sherry. data out of singapore shows demand plunging. compares to 2% expansion in shipments along in february. electronics exports were hit hard in march contracting more than 9%. singapore's trade ministry said last week that economic growth was stagnant in the first
10:12 pm
quarter of an annualized basis compared with the previous three months. that would make the growth outlook prompted by monetary authorities to ease currency appreciation. japan, companies continue to do with the aftermath of those earthquakes. ana had tones and cancel flights to and from the area today. betweenadded 18 flights two other cities with the high-speed train halted. ana and flights as well. carmakers are also getting hit. toyota motors may see its operating profits reduced by about 200 $77 million for the quarter that ended in june. after the earthquake disrupted parts supplies. factory will extend to
10:13 pm
other assembly lines throughout the week. also sit was suspending production its motorcycle plant. sony is plunging today in tokyo trading. after stopping production at its plant in kumamoto. the stock is down almost 6%. the finance minister said he was monitoring the impact of the disaster. it was hard to estimate. yvonne: coming up is the need for speed. i get behind the wheel of a lamborghini. no agreement among major oil producers. will they recover later on in the year? we will have the details after the break. ♪
10:14 pm
10:15 pm
10:16 pm
yvonne: the much touted meeting of oil ministers ended with no agreement. we are seeing futures down about 4.6%. we will look at more on the oil markets with neil beveridge. there was so much optimism leading up to this opec meeting. now, no deal. what comes next? neil: it is very disappointing that we would not get a deal with rate cuts coming into this. will come next is obviously the meeting in june where they will try again. to see if they can agree to cap production.
10:17 pm
what else will happen in the oil markets is that we are moving toward a rebound of prices. demand is still relatively strong. is are in a natural rebound. yvonne: will we continue to see prices fall? if this rebalancing is now pushed a little bit longer, could we see more pressure on crude? neil: there could be a little bit more in the near term. i don't think we will retest to the level that we saw in february. where brent get down below 30. we are much closer than one worth the start of the year to this rebalancing. the pressure will take it down a bit.
10:18 pm
yvonne: how you think the saudi's are dealing with all this? they are not too disappointed. they are still pumping at record levels. will they be able to overcome the geopolitical issues with iran? neil: they are suffering from low oil prices. the foreign exchange reserves are being depleted. the budget deficit. they can't do this indefinitely. they were the engineer of this. of low prices. non-opec trying to get producers to cut their production to bring about the rebalancing the market. the strategy is working but it is just taking an awful lot longer. i think they will continue to do what they're doing. waiting for that market to rebalance. just the geopolitical tension between iran and saudi arabia.
10:19 pm
it does point to very deep divisions and will buy some people make "weaker. : is there an element of distrust year as well? he was not very confident that these non-opec members were going to follow the rules and cap production. we've seen history suggest that these talks don't always amount to much. the russians of raised production. that didn't really amount to much. if you look at who can really raise production, there is only saudi arabia and iran. as they continue to grow production in the near term. 10.5 million barrels a day, which is where they are today. you've been pretty bullish on several aspects of these
10:20 pm
markets. neil: when you are looking at a the oil price would be significantly higher than where it is today. term, it is clearly negative for the market. i think investors should use the pool santa positions. i think they will get a second bite at the cherry. yvonne: thank you. president has lost the first round of the impeachment battle. these are live pictures from the lower house of parliament in which voters overwhelmingly in favor of the notion of impeaching the president. the issue now goes to the senate. if she loses again, she would have to step down and face a
10:21 pm
trial in court. it a coup orchestrated by her deputies. for theing candidate philippine election says he regrets his gunner language after joking about a woman who was raped and murdered. video commercial the weekend , claiming he was angry that such a beautiful woman had been killed. rival candidates say his comments show he is not fit to hold office. china's second-highest ranking military commander has visited the disputed south china sea. theyefense ministry says led a group of military and civilian officials to the construction project on what china calls a notch islands. philippines and indonesia
10:22 pm
and brunei also claims some or all of the island. this is bloomberg news. yvonne: australia's parliament is debating a bill that could trigger an early election. details after the break. ♪
10:23 pm
10:24 pm
australian senators have returned to duty to debate to bills that could give the government at trigger for early election. failure to pass either bill would result in both houses of parliament being dissolved and an election in july. let's go to our reporter in sydney for more details.
10:25 pm
paul: the governor general spoke to both houses of parliament before they could get on with business. business seems to be trading insults at the moment. not a great deal of useful debate. ,f either of these two bills failed to get past that gives the prime minister the trigger he needs to call a double dissolution election. in a normal election only half the senate would be up for grabs. all tt solution election the senators would have to re-contest of their seats. will be of these bills in the hands of just six to eight cross bench senators who may well lose their jobs if they decide to reject the bills and they have an election. yvonne: how risky is this for the government?
10:26 pm
paul: it becomes riskier every day. had this happened a few months ago the prime minister would be in a much better position. it is really started to hurt him in the polls. you took of the latest poll the coalition of the government still has a lead. to 36% over the labour party. that is the second: a row where they have been leading. this kind of thing led them to oust the former prime minister from his job. prevailing 47% to 28% over his opponent. but he has seen his lead to cut in half since he took the job. the government has to get that budget out of the way on may 3 as well.
10:27 pm
next, what china's latest property numbers tell us about the world's second-biggest economy? you are watching trending business. ♪
10:28 pm
10:29 pm
♪ yvonne: wild scenes in the as the brazilian president lost impeachment vote. her campaign is suspended while she faces an impeachment trial. oil tumbling after talks on an output freeze without agreement.
10:30 pm
16 leading producers met in doha. they said they would not accept the deal unless all opec members join. will not agree to a freeze until it has boosted its output levels. the talks dragged on 10 hours longer than planned. rate house prices excel a as credit and easing measures boost demand. new home prices climbed and 62 47 in compared to february. let's get more on the moves in the markets with juliet as japan goes to a lunch break. i think investors will this lunch break, down 3% on the session.
10:31 pm
oil producers really weigh on sentiment, but also japan dealing with the stronger yen and fallout from another earthquake over the weekend. the shanghai composite down 1.5%, the biggest fall in three weeks. energy producers under significant pressure. in australia, the asx 200 down, energy producers also coming under pressure, and qantas falling the most anomalous two years. we have seen an acceleration in china home prices. a lot of property stocks under pressure, china's oversee property and reinsurance, both down 1.5% to 2%. it is a downbeat day, but were
10:32 pm
looking at some winners. new crest mining leading the charge. telstra also looking good in sydney. kia motors up by over 2%. a quick check on the oil price in asian trade, a significant , currently holding at 30 a dollars $.42. $38.42 thank you -- from tokyo.re good morning. reacting soks strongly to the failure of the opec talks in doha? >> good morning. there is disappointment across the globe today, but particularly for japan. japan is sensitive to both oil and the yen, and so what we are
10:33 pm
seeing is declines in oil sending the yen to a 17-month high, and that is really pressuring japanese stocks. it is a bit of a double whammy. it is not just energy down, but you are seeing all sectors. yeah, is this just a knee-jerk reaction? what can we expect, continuing to weigh on japanese stocks? is probably not what investors want to be seen. trying tohas been crawl back from declines earlier this year. while most other indexes across the globe are recovering from is stillnes, the topix down 14% because of the yen. while it is a story about oil, it's also so much about the yen,
10:34 pm
too. we are getting into earnings season and that could help turn things around, but with the problems with oil and the yen weighing on stocks, it may be a tough fight. and yen, a double win me, also a triple when me for japan with this earthquake. how much of a factor has this disaster been? >> that's right. that is a huge factor today. it is very hard to distinguish what it is, how much each of these things is affecting the market. if you take something like to yota, it is greatly affected by the movements in the yen. so the oil developments are affecting toyota, but also the closing of the plant. if you are talking about a double whammy, toyota also gets
10:35 pm
that. having to close the plant as well as honda, so it is having a widespread effect, not a good in japan for stocks. yvonne: thank you so much. clearly, not the best day to be long on oil, and the plunge in energy prices is having a much wider impact across asset classes. david's standing -- david standing by the bloomberg. center and everything else around. falls, people go into the yen, gold, and japanese bonds. i know this looks very confusing. what it shows you is have the options market is positioned across options and strike
10:36 pm
prices. 3-d surface visualizes the view and z axes., y, slope acrossat the xis. access -- a it can get confusing, but if you want a better idea of how the market's position and what sort of volatility we will see in the oil markets, specially when new york opens up and they react to this, that is a good function to follow. let's have a look at japanese government bonds, because that's one of the areas where we are seeing reaction. were also looking at a stronger again, a rally in the bond market, and everything from the 10 year, 15, 20, 30, now hitting
10:37 pm
record lows. don't be surprised. this is the 15 year japanese government bonds, if that actually falls below zero for the first time today, who knows. we are touching record lows for this market. another thing i want to point out is this rally in the equity market. we have a chart every hour on the bloomberg this is one of them. oil prices bottomed out on february of 11 or 12, depending on where you are in the world. more importantly, this is when we started to see the energy outperform and lift the overall index. inverse, yen, very nice chart shows you that, again, there on your bloomberg. fibonacci, simple
10:38 pm
going back to june 2014, when the price first collapsed, if you will, from where we are at the moment. if we did get a deal, easily that would have been support. whether or not you agreed with that excluding iran that a deal would have been helpful is not important. the important thing is that iran is needed for the deal, given what the saudis are saying. very stiff resistance levels of the moment. to supply and demand, with the russian energy minister said was that if we did get a deal, that would be pushed forward by six months, the correction in the supply glut we have. now that we don't, were looking at mid-2017 that the market corrects and we do see the market clear up supply and
10:39 pm
demand, equilibrium return. at the moment, $38.38. $41.19 for brent right now. malaysia's outgoing central bank governors says it she is confident the nation will meet 4% growth target of four -- to four and half percent this year. the ringgit should strengthen. the central bank had warned the government in 2014 that a debt ,idden investment firm, 1mdb posed a threat to the system. $14.5 billion bid for telefonica's u.k. mobile business may be blocked within weeks. regulators are said to be unconvinced that hutchison's offer sale will create enough competition. they want the companies to sell
10:40 pm
part of their network infrastructure to a new rival. the sunday telegraph said hutchinson will challenge any block in court. sources at bloomberg say china's second-biggest on dine -- online retailer, jd.com, looking to raise $1.5 billion in a bond sale. to company has declined comment. china's internet giants are providing a haven for bond investors fling mountain credit risks among state owned enterprises. face stronger headwinds if the boost from real estate pros unsustainable. property has been one of the key drivers of growth recently. let's ring in malcom scott. -- bring in malcom scott. werenk economists inspecting 1.5% growth, should we be worried? >> it does take some of that cross off the number we saw on friday, 6.7%, and match of economists expectations, a
10:41 pm
property-led stabilization, construction services in real estate services leading those industry breakdowns on saturday. of course, the property data was so solid, the rebound spreading , so theand more cities quarter on quarter numbers do take some gloss off the strong was thembers, but it strong credit strong industrial output and strong investment numbers that do seem to suggest the economy has more mentum -- more momentum that many people feared. yvonne: has the economy turned the corner? >> the focus is on property and whether these gains we have seen, big gains, shenzhen up 50% shanghai looking strong, if that filters through more and more cities, then you would have to say that the economy may have stabilize, if not picked up again. , a lot of debt
10:42 pm
is going into this. there has been a lot of fiscal stimulus, monetary stimulus, new credit numbers have been surging , and can that continue? that is the big open question. yvonne: still headwinds there. thank you so much. it hastick with china, accused international ratings agencies of biased after s&p and moody's lowered their sovereign outlook. we heard from the finance minister speaking at a press conference in washington after the weekend meeting of his g-20 counterparts and central bankers. we have the full story on this. what did the finance minister have to say? downgrades happen weeks ago, but now they are responding. >> initially the reaction was we don't care because the market impact is next to nothing, so it is interesting seeing the strong language coming through from the finance minister, taking the opportunity at the g-20 meeting
10:43 pm
to air his grievances, if you will, saying that this is bias in these downgrades to china sovereign debt outlook because he says china's sovereign debt has historically performed better than what s&p and moody's is giving it credit for. gdplso points to the strong growth numbers that have just come through on friday, saying 6.7% as well within the toernment's target of 6.5% 7%, and it is still strong growth. that topline number coming down as double-digit growth as recent as 2015, but is pointing to that saying 6.7% is nothing to be scoffed at. of course, that's not necessarily what the credit rating agencies are most worried about. they are worried about the structure drag of china's debt to ddp soared from 164% in 2008 two a must to 50% last year. servicing that debt is a third of gdp, and that is if principal
10:44 pm
and interest it paid on time. we have seen the drag of that on debt on growth. that has alarmed part of the market. we have also seen a huge surge in new lending, creating more leverage, record mending earlier the $5ar, wonders if billion of aggregate financing that march number coming through a couple of days ago one of those highs readings and blowing at expectations a lot of that momentum going into the property sector, so what happens when you , and was saying that begins to drag when china hits debt capacity. the finance minister did acknowledge that there is risk to growth as well, right? he said the aging population is going to be a downside risk,
10:45 pm
many concerns that china is facing the exact predicament that china has had in recent years, but also said that to be fair, s&p, moody's, , the rockyf transitioning if china keeps -- debt.rowth with on top of the demand-side measures, there are supply-side reforms underway, reforms in terms of how to restructure that debt. he said, look, things are in the pipeline, it's just that you guys may not know the details about it just yet. yvonne: thank you so much. coming up, production halts or big-name japanese companies after the earthquakes and the impact it is having on those businesses. we are live in tokyo after this short break. you are watching "trending business".
10:46 pm
10:47 pm
10:48 pm
>> welcome back it is 10:47 a.m. in hong kong. these of the stories making headlines. the number of people killed in a powerful earthquake in ecuador has risen to 246. the magnitude seven point eight tremor struck 170 kilometers northwest of the capital and was one of the strongest in decades. officials say there is considerable damage and the area was hit right dozens of aftershocks. the state oil company says no damage to refineries in the region. new president of myanmar says he will release more political prisoners amid sweeping democratic changes. the first freely elected administration for more than 60 years. opponents of the old military-backed regime were
10:49 pm
arrested and jailed. it is not clear how many prisoners there are. hundreds were freed by the previous government as they moved myanmar towards democracy. a british airways flight has landed safely at heathrow after being struck by what is thought to be a drone. the pilot reported an object hitting the front of the aircraft, which had 137 passengers and crew on board. it is thought to be the first time that a drone has collided with a commercial airliner in the u.k., although dozens of near misses have been reported. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. japanese prime minister helpo abe has sent more after a series of earthquakes
10:50 pm
and trimmers. several companies have suspended hope to operations. let's get more from tokyo. good to see you. tell us the latest on the plant closures. there is not a lot of clarity over how long these closures will extend for. the sony semiconductor plant is and they aree unable to check the extent of the damage because of threat of aftershocks. manufacturers have been affected as well, renaissance and other suppliers to automakers have been impacted. has halted production across assembly lines for much of the week, so it is unclear how long this will extend for.
10:51 pm
morgan stanley said today that the impact on sony could be ¥30 billion on operating profit, and the supply chain impact will be extensive. we are already seeing this economic impact reverberate in the markets. likely is the impact going to be? >> right now it is unclear. it will depend on the extent of the damage and what happens over the coming days. this is huge., it is the first time in many decades that there has been an earthquake or disaster of the size. for japan over all, it is difficult to say in the moment. and analyst is morning said the economy is worth about 8.7% of gdp, and the region that was most affected by the earthquake
10:52 pm
is worth 1.1%. how much damage to the overall economy depends on the supply how much that reverberates into the rest of the economy. in 2011, the damage was much and howere, how long deep those supply chain issues went, so i think it would depend on what we see the remainder of this week. so much fork you joining us live from tokyo. coming up, fast and furious. i take lamborghinis latest supercar for a spin. me for that test drive after the break. ♪
10:53 pm
10:54 pm
>> you are watching "trending business". i am yvonne man. newest supercar has landed, more than 600 , 100 kilometers an hour in over three seconds. lucky me. ♪ yvonne: all right.
10:55 pm
♪ yvonne: this is so scary. ♪ this one here is the 580 -- t-2. you have street, sport, in re settings. yvonne: how fast can it go? >> faster than you need. zero to 100 and 3.4 seconds. areepends on what mood you in, and the car will adapt to what you need. this car is catered towards the fun to drive market. yvonne: this is the first one that has officially landed in hong kong, right? >> true, this is the first one. yvonne: let's take it out for a spin. ♪ yvonne: watching out for the po
10:56 pm
-po. oh, come on, you're not going to pull me over, are you? that's what you pay for, respect on the road, right? ♪ i'm going to work really hard to get one of these now, man. you can't see it, but i was screaming inside. started. have that is it for us here on "trending business". china home prices and the oil market, j.p. morgan joining us. ♪
10:57 pm
10:58 pm
10:59 pm
yvonne: it is the middle of the asian trading day. this is "asia edge." the top stories this hour, japan leads asia down, the regional benchmark snapping and eight day winning streak and falling from a four-month high. oil is also on the slide.
11:00 pm
brazilian lawmakers have voted overwhelmingly against her. yahoo!, reports say verizon may be a suitor. >> keeping and i on the markets, a gloomy day -- keeping an eye on the markets, a gloomy day. a stronger yen as well as the earthquake in japan playing on investor sentiment. the nikkei off for a third 3%.ion, off by about the kiwi dollar and aussie dollar taking a beating. i will have more on today's stock movers shortly. yvonne: a quick check -- angie:

25 Views

info Stream Only

Uploaded by TV Archive on