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tv   Trending Business  Bloomberg  April 27, 2016 9:00pm-10:01pm EDT

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♪ it is thursday the 28th of april. i am rishaad salamat. you're watching "trending business". ♪ rishaad: right, we are headed to ,ingapore, shanghai asia-pacific on the rise today, the shares snapping their longest losing streak since february. rbnz kept rates on hold. the world's biggest asset
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,anager is betting on beijing 2016 will be good for china and investors will be sorry they are not there. do follow me on twitter @rishaadtv, and don't forget to include #trendingbusiness. china, hong kong markets underway in 30 minutes. let's have a look at what is happening. the day after the fed, and asian markets are liking the sense of patients conveyed in that policy announcement. snapping three days of declines for most of these markets, , i continued rebound in crude oil as well as basic materials. gains, the extending kiwi dollar surging since the fed left policy rates on hold.
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225, ahead of the boj announcement. 56% expect some form of additional stimulus coming be furtherether that cuts into negative rates, etf of lying, or potentially negative rates for loans, which means lenders will be paid by the central bank to lend. ,traight times index up malaysia adding negativity to the regional look at the moment. let's take a look at some earnings stock reactions. a 4.4% decline in first-quarter kuob.s for you
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and miners in australia, bhp billiton up 3%. , in japan inly particular, led by tech stocks. we had that plunge and apple suppliers yesterday, but now we are back. up by at least the highest since 2001, outside of 16% -- also up by alps electric also up by 16%. corporation, household chemical maker, seeing a surge of 5%. 73% and netsive
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income, 52% and operating costs, for the first quarter. we are seeing this tech stock driven rally, quite different than yesterday. rishaad: absolutely, looking at samsung, shares dipping. a share buyback worth $1.8 billion. it was mostly a beat, wasn't it? yvonne: the early release of off.y s7 paid s7 had a better performance than its predecessor. some say this phone will be the androidning an smartphone in 2016. net income rose, operating profit also above forecasts at $5.8 billion, and samsung
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announced it will buy back $1.7 billion of shares. this is the second round sent samsung made the announcement last year. $43.4 billion.o still off of what we saw in the fourth quarter, but still a beat, thanks to the weaker korean yuan at the beginning of the first quarter. that had ad that positive impact on profit. the korean yuan did we can quite the first two months, but has since strengthen. the company sees steady earnings and mobile and chips businesses, operating profit at both units beat estimates, but chips is still under some pressure. , a 10 percent drop from a year ago, and chip prices could be the culprit.
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that has not helped. other divisional businesses, samsung sees higher tv sales. that helped its consumer electronics business reversal loss. unit swung to a loss as demand declines. the stock is down 1.2% today. riseve seen samsung shares 3% this year, and that is after three straight years of annual declines on the stock. will havef course we a detailed look later in the program. do tweet us your thoughts at @rishaadtv, include #trendingbusiness. a big day for central banks, the fed pressing a pause button, but leaving the door open. rbnz said more easing may be necessary. boj,potlight turns to the
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an inflation target way out of reach. policy doesn't's seem to be working. the japanese economy is backtracking to the time before abenomics. felley gauge of prices 3/10 of 1% from a year earlier. the most since april 2013. that compares with forecasts of .2%. energy,, which excludes did grow by 7/10 of 1%, but did ms. estimates and is a slowdown from the previous month. the labor market does remain on solid ground with the jobless rate at 3.2% in march, and also
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130 job positions for every 100 jobseekers. the problem now is that the labor market is failing to an uptick in spending. retail sales fell 1.1% in march. household spending plunging 5.3%. both numbers reversing course from gains the previous month. is not surprising given that the preliminary results of the spring wage talks have shown the pace of increases to be slower than last year, so households may be reluctant to open their wallets. production did grow 3.6% in march from a month earlier, beating estimates, but analysts say this is a reflection of a rebound from a month earlier when auto production was affected because of a steel mill explosion. this yearndicators
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have been mixed at best, and mostly negative. haveanks stimulus measures not looked so ineffective as they do now. this is the measure of how much financial activity is spurred by cash from the central bank. it sank to the lowest lap month going back to 2003. has swelled the monetary base by 170% by 2013, but much of the funds are sitting idle as bank deposits exceed loans by close to a record amount. meeting, a close call now, a slight majority of economists with manyction, predicting an increase in etf purchases. rishaad: right, thanks a lot for that. let's take a look at some other stories we are watching for you today. , startingaround up
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off with that tech company going great guns at the moment. juliette: a bigot like from investors to send facebook shares soaring after sales and profits beat estimates thanks to a boom and mobile advertising, the socialver 9% network reported first-quarter sales under $5.4 billion, a 52% increase. lineook says the bottom was boosted by ads on instagram and video. new class creating a of nonvoting capital stock subject to voter approval. bek zuckerberg says he will able to pursue ambitious projects even if the existing businesses falter. sinceeturns like this facebook's ipo, you would think shareholders are likely to give approval for the company's plans. likendo shares looking this in tokyo this morning,
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slumping and u.s. and european trade, down all must .5% in tokyo after nintendo forecast profit and sales well below analysts expectations. plunging sales was behind the lower forecast with analyst and investors disappointed that there has been no announcement of a smartphone game. they are betting on two new titles to boost profit. income ofing that $315 million, double the prior-year. stake ints majority the mariners baseball team, and nintendo shares have fallen, down 25% over the past 12 months in japan trade. we are also watching mitsubishi motors in tokyo this morning. currently, on quite a bit of a despite revealing
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that vehicle orders in japan admitteded since it falsifying field data. mitsubishi says its finances remain strong despite losing more than half its market value since the scandal came out. can determine the scale until we complete our investigations accepted bylts the transport ministry. the president says the follow-up from the scandal poses a threat to its very existence. rishaad: thanks. were looking at why the united nations has issued a warning over north korea's dwindling food supply. is your
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digital destination. digital advertising and the rise of it, speaking to a cofounder and chief executive later on the show. plus, expect haitians ahead of the boj decision -- expectations ahead of the boj decision. that is all win "trending business" returns. ♪
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taking a look at japan consumer prices dropping more than did in march. session today to decide on expanding monetary stimulus. whether guest questions the boj will go deeper into negative terrain. thank you for joining us. let's start off indeed with what today,ppen, could happen this move towards negative interest rates has some
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criticism and praise, but the jury is out, isn't it? >> i think market expectations stimulus frommore the boj, but as you mentioned, there is a lot of criticism, a hostile response when the boj first introduced a negative interest rate on deposits. the question will be what else can they do. there are several things they could do. they could increase the etf purchases as many fellow economists think that could be the way to go, or increasing the qe program to 90 trillion a year, so there are several things they can do, and they are certainly in a tough spot because inflation is not meeting their target, week growth in japan, so all these things will weigh on their minds heavily at this meeting. rishaad: there is some evidence qe program and negative
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rate policy is actually counterproductive. what is your view? >> i think there are some views that it could affect the banks earnings, so we probably would need more time for them to because it isact, something new, unconventional monetary policy. in fact, when the program was introduced a few years ago, corroded -- kuroda waited more than a year before moving on rates again. this time we are just a few months into negative rates territory, so we probably need more time to assess the impact of negative rates and whether it will help the country to move -- boost growth and inflation higher. rishaad: could they do something else? could they come out of left field again? >> they could do something else. like i mentioned earlier, they
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could increase more purchases, but then there would be a problem whether they will corner the bonds market, and this also has its own repercussions, so they are really like i mentioned in a tough spot. probably the best thing for them outo actually is to wait the previous policy, give more time for them to start working through the economy. what did you make of the fed meeting taking place overnight? the fed officials are incrementally less dovish. they have removed concerns about the global development and global economies, especially further devaluation. while they are not preparing the markets for an increase in the interest rate in june, but i am sure in june the language will
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be more hawkish to prepare the eventual and just rate hike in the second half of this year. rishaad: what is their read for the dollar then? isthe risk for the dollar delay inhere is more terms of the interest rate hike cycle, we will probably see more weakness in the dollar, but a strong dollar itself used to represent a positive development for the global economy, but now -- a weakerly more and stable dollar will be better to ease funding pressure on emerging markets and ease fears on deflation, so delaying probably the interest rate hike could have some positive effect -- impact on the dollar, and that will help the global economy to pull out of its
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current slump. rishaad: thank you very much indeed. a check of some stories making headlines around the world. hisld trump laid out foreign policy, promising to shake up washington's view of the world. he revealed an isolationist plan called america first, saying the country has neither purpose or direction. 48% of remaining delegates to win the republican nomination. his rival ted cruz made his own headline announcement, saying carly fiorina will be his running mate if he wins the nomination. charged inect connection with the deadly attacks in paris last november. 130 people were killed at a series of targets, including a music hall. he was captured in belgium last month and extradited to france. prosecutors say he was instrumental in coordinating the attacks, which have been claimed
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by the so-called islamic state. he is accused of a terrorist conspiracy and possession of weapons, including explosives. the united nations is warning that north korea is facing a growing food crisis after harvests failed for the first time since 2010. the food and not a cultural organization said production fell 9% last year, worsening a situation where household's were already seen at borderline consumption levels. ricegency says harvests of fell by 26% last year due to poor rainfall and irrigation. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. i am yvonne man. coming up, malaysia naming a new central bank governor. we will have the reaction, coming up when "trending business" continues. ♪
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rishaad: you are watching "trending business". i am rishaad salamat. the hang seng up by six tens of 1%, positivity of across the asia-pacific. has posted a net loss, japan's biggest brokerage equity research and underwriting, scaling back its leveraged finance activities in the u.s.. losing $172 million in the the 209uarter, less and million dollars that analysts had been penciling in. the operator of the most popular instant messaging app in japan, operating profit coming in at $224 million in the first quarter, a 22% gain on the same time as a year ago. more than 70% of internet , shares and south korea
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looking like that. malaysia's outgoing central bank governor welcome the choice of her successor. the new central bank governor takes over. what were investors big concerns before this appointment was made? months there was speculation on who would be named as the next central bank governor. the announcement came yesterday and investors were mainly concerned that a governor would be named that was more politically aligned to the
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government and compromise the independence of the central bank. the investor is reaction to all this? has the governor said anything about what his focus will be? based on markets yesterday, the ringgit and stocks erased almost all gains, so stocks were relieved on the naming as the next governor. concerns earlier this week that the state fund had so that has debt, dampened sentiment a bit. -- pledged monetary stability. rishaad: thanks a lot for that. lumpur bureaua chief. coming up, china's biggest oil
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and gas producer taking a big hit and profits. we have it open proper in hong kong and shanghai, premarket in hong kong of 3/10 of 1%. the opening numbers are next. ♪
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show me movies with romance. show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. e.t. phone home. when you find something you love, you can never get enough of it.
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change the way you experience tv with xfinity x1. rishaad: a look at our top stories, samsung electronics it thing after announcing profits that smashed as to men's, a share buyback worth $1.8 billion, the release of its new smartphone is hoping to deliver steady earnings. the bank of new zealand and the fed oath leaving interest rates on hold, but the doj may be forced to act. data suggesting that central bank stimulus has never been less effective. consumer prices down, negative,
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3/10 of 1% in march, the most in moneyyears as the multi multiplier shrinks. mitsubishi shares climbing today after losing half of its fire after admitting to cheating on fuel economy testing. orders also down. straight to the markets, positive out there, the open in shanghai and hong kong. something of a sigh of relief across asian markets. the central bank activity, fed steady as she goes, not giving much of a timeline as to when tightening will begin again, and that's going down well with asian
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markets and emerging markets in particular. , the hang seng up by flat, but, shanghai in positive territory, a huge day for earnings, particular he financials. we have all of china's big five banks after bank of china reported earlier this week. we will be watching that. the rbnz keeping rates on hold. the kiwi dollar surging on that decision. we are seeing sydney stocks extend gains, up 7/10 of 1%, tracking that continued recovery we see in crude prices overnight, energy majors, material plays, doing well today, and the nikkei 225 am awaiting on the bank of japan, probably expecting something between noon and 1:00 tokyo
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time, nikkei 225 is currently up. it is those tech players dragging down that index. let's take a look at some of the movers we are watching. is the first of singapore's afterto report earnings the central bank adopted a new policy to deal with the worsening slowdown. thees extending gains in morning session despite a profit missf 4.4%, a decline -- a of 4.4%. vergrande continuing its spending spree. it is hoping for profitability coming out of its consumer finance division, getting regulatory approval on that
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earlier this year. pausingy is the fed rbnz and the. get you back to our top stories. samsung smashing first-quarter profit estimates. the s7 seemingly paying off. so, kind of stealing a march on apple. what samsung has done is andng advantage of a lull the iphone release cycle, releasing its premium smartphone a month early, but it is a strong phone. it revive some of the features that consumers wanted, like replaceable battery and memory so far it seems to be tracking will globally, but we will see. the iphone seven is coming in a few months. how well it can maintain momentum. rishaad: what is ahead now?
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>> i think beyond waiting for the iphone seven, which is where all the attention will shift, remember that half of samsung's revenue comes from beyond the smartphone arena. rishaad: people seem to forget that the mainstay of profits are from chips, etc., and making parts for other companies. look at this led deal with apple , supplying the screens. to be a samsung used major supplier to apple, still is, but there are some well known public disputes. our reporter in seoul, korea has reported that they may win an exclusive supply agreement for the next generation led's greens, but even that won't kick in until 2017, so were looking to generations ahead. does this signal a
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turnaround? that nobody is immune to the broader smart phone and pc downturn, as apple has shown. things turn on a dime in this market, and samsung's shares have fallen three straight years, so investors need some convincing. rishaad: we will quickly move to some other stories. predicting net income will be following as they struggle with china slowdown, falling 11%, $1.2 billion for the year through march, blaming declining sales in china and the alsoing economies, predicting a stronger yen may cause it 1.6 b and dollars in revenue. the world's biggest asset manager saying investors should be betting on china. black rock achieve says investors will regret if they hold back he goes china's
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aggressive policies will boost growth more than expected. couldr, the payoff be short-lived, as the measures create a bigger credit bubble in the long run. a plunge in crude prices, taking a chunk out of china's biggest oil and gas producer. how bad was it? >> they were in the cross hairs in the last year, so the slump in crude prices really hammering china's largest oil and gas producer. centerhey were front and in the reform agenda as well, earmark to be one of the largest data owned in a prizes to get sweeping reforms, whether that means pushed into a holding company or other spinouts, get to that in a bit. they also have exploration in politically sensitive areas like the sudan. they are a massive company, 1.5 2 million employees, mind-boggling.
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profit, we were expecting a sharp decline, a drop from 52% for the full year. this is the -- rishaad: just over 1% of the chinese population works for this company. it is mind-boggling absolutely. profit falling 52% to $12.7 billion, revenue down 26%, output rising 1.8%. we had already heard previously a few weeks ago that net income fell 67% at the listed company to the lowest level since 1999. they also announced a cutting of oil and gas output after this year for the first time in 17 years. what are they doing to weather the storm? you mentioned they are one of those companies which are being targeted for reform. there's probably a lot of fat they can cut out. >> they may spin off their oil services field unit, doing something with their engineering units. they could become part of a
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strategic holding company, but the weather the storm, let's bring up the quote from the chairman in the earning statement, basically putting a positive spin on it saying we properly dealt with the risks and challenges and steer the company from the model of chasing speedy expansion to a model focusing on quality growth. rishaad: we will have to see. rishaad:thank you very much indeed. taking a look at property kurds in china, because they have paid off for the country's biggest developer. profit surging, $120 million in thequarter, as a relax from -- benefited from the relaxin homebuying policies. the government trying to revive the real estate market amid this property glut we have in of the cities. home prices into your one cities jumped, but some of the other smaller cities trailed all that. let's get more on the property market in china. ?positives aren't there
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it's about these lower tiered cities at the moment. the government has relax to some of the measures. long in marchtest , numbers are positive. for the first tier cities, the prices are ready up a lot. rishaad: this is what we have. all right, some of these cities do need some help in reviving the property markets there, but what about shenzhen? up in a year the property prices there.
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shanghai on a tear as well. are the tightening measures going to work? is that thehe thing down payment is high, 70% down payment. it is very tough to buy. situatione that cooling down, and what the government wants to do is to channel the demand from those cities to smaller tear cities, a bit like hong kong and that the land supply is limited in those first tier cities. the price stabilize just like hong kong, the volume will dry out. rishaad: that's the thing. prices remainow
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on hold. thank you very much. coming up, 96% of people in hong kong are said to be on their mobile phones, tablets, or pcs, while watching tv. we're speaking to an ad agency looking to cash in on the multi-screen trend. ♪
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>> it is 9:43 a.m. in hong kong. these are the stories making headlines around the world. at refugee policy under pressure as pop in new guinea said it would close a camp housing asylum seekers. thesupreme court ruled center is unconstitutional for violating human rights. detaining policy of asylum seekers has been credited with stopping the flow of vote
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arrivals, but criticized for treating refugees inhumanely. been jailed for seven years on a gun charge, moving him closer to facing trial for a murder in 2000. he was arrested last year after new evidence about the killing of a woman was revealed in a documentary series. on wednesday, he told a louisiana court that he is not guilty of murder and wants to go to trial in los angeles as soon as possible. his lawyers say that he could be sent to california within weeks. thailand is sweltering through a record heatwave, the average -- 40 plus days is the longest and 65 years. el niño is being blamed, also causing the regions worst rout in decades. scattered storms may bring some relief in the next few days. and tell copy over
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monsoon or rain arrives in mid-may. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. i am yvonne man. , television is losing its grip on advertising budgets as digital advertising surges. is worthl ad market over $500 billion, with tv accounting for 38%. digital is expected to surpass television by the end of next year. let's discuss this landscape. digital is really important, but it is not just digital. there are so many nuances to how you advertise. of flavorshas a lot to it. on the base level, display advertising, mobile advertising, video, and search, and social media advertising. there are many different branches, each one of those have
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advertisers taking notice. asia has lagged behind the west in terms of adoption. what we have seen in the market the last two years is that it is starting to pick up. on the mobile phones, advertisers want to reach them there. rishaad: asia is way ahead when it comes to mobile phone penetration, digital advertising on mobile phones and smart phones. we often see a time lag between advertiser adoption and consumer adoption. most markets in asia have over 200% penetration and 90% mobile phone for dissipation. penetration. they are starting to put major investments in overall digital. where we are seeing the real growth is on the mobile phone and with online video. are talking about
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programmatic advertising as well. tell us about that. >> it is a way of automating an uy.b the idea is that the more relevant the ad is to the consumer, the more they will respond to it. are able to identify a user interested in travel because we have seen specific trends and behaviors in the past using digital, researching travel plans, hotels, and so on, so we are able to go back to an advertiser and say we have the consumer data that tells us that this user is likely going to be making travel plans. rishaad: do you have a real-life example of this? a lot ofk with different clients, so advertisers are saying i wanted people who are traveling on short-haul flights are long haul flights.
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we are able to go to the client and say that we have users who have shown interest in doing this and we are able to sell them advertising space against that particular user behavior. of narrowt is a form tasking, and the buzz word's relevance, and you have to be relevant in order for a campaign to be successful. >> yes, advertising is advertising when it is not relevant to a particular user. it is relevant when it's close to what i'm looking for. it becomes information. the industry as a whole is to make advertising as relevant to a particular user, and that's what programmatic is one step closer to. rishaad: this is not a new phenomenon. is there any way you have developed it differently from the rest of the crowd? >> there are a couple of things in terms of programmatic. done is we are
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trying to localize the product offering. it is part of being relevant. thery to make sure that content is local, hence that being relevant. the other thing is that we want to bring control back to advertisers in terms of how they do programmatic. there is a fair bit of confusion and technical jargon in the digital advertising space. what we are trying to do is break down those terms and make it as simple as possible to understand. at the end of the day, markets want results and reach their goals. that is where we are trying to be different in terms of bringing the control, the transparency, and relevant advertising means a better return for the investment. rishaad: this another aspect here. isevision advertising perhaps becoming less important and digital is overtaking it,
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but is that because the pie is so much bigger now? look at these as though they are completely separate, because we have a lot of evidence that you are watching evidence and on your smart phone at the same time. >> the rise of digital advertising has increased because advertisers are going where the consumers are. we are a firm believer that where advertising should be is on the 360 degree level. each media has a role to play. history has shown that the emergence of a new medium has not replaced an old medium, so just because television came up 50 years ago, it did not replace the radio, and every media has a role to play. the advertising market is in a transitional phase today.
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i think the art and science need to come together. video did not kill the radio star. there we go. right, let's tell you about what we have coming out. spacex maize start its mission to mars in a few years time. have a look at social media and the reaction. ♪
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rishaad: it's not just metals more.s get what is driving this cotton spike? >> good morning. a couple ofquite weeks for commodities in china. ,he latest one is carlton enough cotton traded on the
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busiest day last year to make 9 billion pairs of jeans, a enough for everyone on the planet. that follows a similar pattern to what we saw in the past week , wherel rebar, aluminum you have this big for him spike that is driving up prices, speculative trade piling in. rishaad: it does look a little bit like the stock market bubble we witnessed last year. our authorities concerned? yeah, it certainly looks that way. you have seen the exchanges over ,he last few trading days really every night there trying to calm trading, raising the cost of trading, raising the margins that traders need to buy an order to trade, and also
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limiting trading hours in some cases. it looks like there is a concern that this is going a bit too far and the authorities are stepping in early two dan from that down. rishaad: thanks for that. shanghai. from let's have a look at what is going on social media wise with spacex shooting for the stars, at least the nearest planet. >> the red planet. elon musk announcing on twitter that he plans to send a spacecraft, an unmanned spacecraft, to mars by 2018, a pretty aggressive strategy. he has said that space x is capsule's to resupply the international space station, but he wants to mars. this, whichncing has obvously gone viral. the tweet saying the plan to
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send dragon as soon as 2018. , quitesk tweeted himself of a plan for them, but he said that they would not recommend transporting astronauts beyond the earth and moon, so you would need a bigger version for that to come through, so he is saying that the internal file of the spacecraft is the size of an suv, so not for humans. he started to interact with a number of twitter users, people asking him questions, and he was replying. one person saying about what another planet? and he replied that it could land on venus, but would only last a few hours. rishaad: very high pressure and high temperatures there. thank you very much indeed. we take a break. in the next hour, we are heading
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to the latest energy company to list on the asx 200. they will discuss the range of projects and the outlook for commodities. ♪
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announcer: from our studios in new york city, this is "charlie rose." charlie: welcome to the program. tonight a conversation with president barack obama. the interview follows are set down at the white house last week area this took place in hanover, germany where the president attended and industrial fair with german chancellor angela merkel. this was the final leg of a trip that included stops in saudi arabia and the u.k. in london he had lunch with the queen, had dinner with a future king, and played golf with the prime minister and celebrated shakespeare.


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