tv Trending Business Bloomberg August 15, 2016 9:00pm-10:01pm EDT
any liquidity crunch will be temporary. follow me on twitter. we have singapore, taipei, kuala lumpur. we have the first trading of the day and the week after a holiday yesterday. south korea. david: seoul, korea, is the only market outperforming at the moment. really, we are not feeling the love out of wall street in terms of valuations. that itpointing out might be pushing the upper limits. for the meantime, we appear to have consolidation for a few days and then tested new highs. markets opening up
right now. i expected a bigger pop in big move uper the overnight. south korea up .4%. it was not open yesterday. after an eight day win streak, high, back to a 12 month longest win streak for south korea since 2011. theact, south korea has most amount of inflow after taiwan. $5 billion net portfolio. up sincebeen driven early february. oneghai composite, perhaps of the most exciting parts of the market. time, trading
above its 200 day moving average. that seems aket little overheated -- have a look at this graphic. it's the most overbought levels going back to the rally in april of 2014. 95 percent of stocks above the 100 day moving average. that market opens 25 minutes from now. gaining pace in australia today but expect it to be -- whatat it may may be its worst result ever. how bad are be the numbers for ? what are people saying? >> they are expected to be pretty bad. the green, butin it is down 90% on the year. attributable to the loss
of $8 billion, saying this is going to be "very, very ugly" from bhp. the dividend will be $.32, down from $.62 in the year previous. this has all been flagged well in advance. for example, there are the write-downs to do with the terrible tragedy in brazil. the operation that killed a number of people. cole, of course, has been taking big losses. oil prices down. the one bright spot for bhp is iron ore, up on the year, that makes up a third of their revenue, but that will not be enough to save what is going to be a horror show. consider expectations well and truly managed. >> also, today we have the
minutes of the august meeting. how is that likely to affect the aussie dollar, if at all? >> it could go either way if we look back of the past month. the australian dollar has appreciated about 3% during that time. minutes may not very wildly from the statement that came out -- they often don't. have heard the last be just governor before the governor steps down in the middle of september. his lastvernor give speech as governor before he steps down in the middle of september. the cash rate in australia is looking pretty attractive when you have a look around at the rest of the world. rishaad: we will have more on that when we get those numbers.
those minutes, i should say. moody's downgrading singapore's listings by two notches, saying it expects the commodity trade to be squeezed. -- ifad news for those there are any -- who are long in this stock. >> chairs already down over 50% this year. -- commodity that shares shares already down over 50% this year. tody's lowering its outlook a rating of be too. noble -- b2. noble has weaker than expected profitability. that, plus a squeeze on its cash flow could hinder its ability to meet financial agreements. noble lost its blue-chip status.
in may.quit days later, an emergency issue was announced. tax onas been a accounting. they are cutting jobs and selling in some markets. it is perhaps not surprising that moody has done this downgrade. contrasts quite starkly with fitch, doesn't it? >> it does. fitch released a statement saying noble will probably generate $900 million in the coming months. said the crunch of the second order won't persist and noble should have liquidity by autumn. liquidity rate was five times its inventory, down 1.3 times at the end of the first
quarter. fitch expects it to return to a e.vel of on just checking noble shares in early singapore trade, they were down about 3% yesterday. unchanged at the moment. rishaad: thanks for that. let's have a look at some of the stories we are watching for you today. shopping, isn't it? >> that's right. the filings are in. fundsore state investment bought up shares in ici bank. two .55 million adrs of india's private sector lender by assets according to a filing with the u.s. security and exchange commission. acquired a stake in aerospace and revealed shares in back in may.
in addition, the singapore fund has holdings in alibaba, three point $4 billion as of the end of june. of$3.4 billion as of the end june. it was battered by last year's market turmoil. hathaway, warren's very well scrutinized fund is increasing its that on apple bet onsharply -- apple quite sharply. apple was down 12 percent in the since quarter, but has rebounded about 20%, and that is something buffett says appeals to the value investor. buffett has had a reticence in investing in tech. berkshire cut its holdings in walmart by 27% as well as its stake in john deere, the farm equipment maker.
ims at plans to raise around a billion aussie dollars to shore zed plans to raise about plans to raise about a billion aussie dollars to refinance preferential shares and for general corporate purposes. comes after a series of similar moves by australia's four banks. rishaad: a $35 billion stock halted by the sec. have a look at it. , find out how western union is dealing with challenges ranging from brexit to new technology.
rishaad: gravitating toward equities, betting that lackluster data from the world's biggest economies will loosen monetary policy further. as an asset manager globally.400 billion these are to mulch was times. have you ever known anything like this? >> no is the answer. i have certainly been through tumultuous times.
crisis, the more recent crisis. this time around, it's really the length of the crisis. of course, central-bank action worldwide has arguably prolonged the crisis. it has distorted markets for a longer time and to a greater extent than ever before. negative interest rates have caused confusion and made life very difficult. the recovery has been eight years in the coming and there is ofll precious little sign any strength and the recovery. rishaad: is it because the economy is molly called in a way with qe and with recovery -- coddled and away
with qe and with recovery? >> that was the medicine the west prescribed to the east in the asian crisis in the late 1990's. it was a very short, sharp shock medicine. i think many good things happened, although it was extremely painful for a couple but a lot of good things resulted from that in the late 1990's. better governance, far more respect as to what people should do with debt, for example. and of course, the west hasn't really been able to accept the same medicine because of the consequences it would have from a political point of view. so, we have had this agonizing death, lo slow recovery.
rishaad: what is your visibility like running death, low comes t? look in your crystal ball, as it were. ?- when it comes to this look in your crystal ball, as it were. >> we have all been looking in crystal balls, and i think most commentators have gotten it wrong. i would not claim to have got it right either. we have all been expecting a normalization of interest rates in the next 6-9 months. it seems like the governments are wedded to these policies and we have yet to see any policy that would encourage them to risk door interest rates fresh to restore-- interest rates or unwind qe. it is difficult. rishaad: looking here strategy
and what you have been doing -- we had a story about you looking at what has happened with singer banks like singapore bbs, you have been buying that and other singapore banks. do you think all the bad news is part of the share price? they have lost something like $2 billion in market value. it creates a bargain, perhaps. is it a bargain? a brave man would say all the bad news is in the price. one never knows. i am sure there will be more bad , although notut necessarily for the other banks. some of the other banks did not have any of both are -- any exposure to swiger, and i think we were all understandably surprised at the extent of the
exposure bbs had to swiger. that was definitely a disappointment. as he say, the share price has generally. it is related to the oil and gas sector at the moment, which is worrying. book is of the performing quite well across the banking sector. capital ratios are fairly strong. -- a sensible regulator, which gives little valuations across the banking center have dropped a fair bit. you are getting some bargains, i think, for those prepared to take a long view. bbs'sis good value in the of this world.
rishaad: also pretty decent dividend yields. can they maintain paying them? think that is key. and as of today, i think the answer is clearly yes, they can. you saw that in the recent results, notwithstanding swiger, dent,was not a big given the extent of previous provisioning. there is an ability to pay dividends as of today. of course, one should always be cautious about banks. gearing, somendous things could really take a dive in the broader economy -- and i think it would have to be a lot broader than that -- then, of course, dividends would not be
assured. the rest of the economy out side along. gas still ticking and not under stress. rishaad: outside of the banks, you take a long-term view. over the next five years, what is going to be the next big thing? you have 20 seconds. >> i don't think there is going to be a new next best thing we can clearly see. we are concentrating on them of the old best things we know and like -- the old best things we know and like. some conglomerates, for example. and there is still growth in places like india. rishaad: always great talking to you. we will have the latest business dropbox said with
to be in discussions for a possible ipo next year. will talk about valuations and listing in 2017. conversations are at an early stage. no final decisions have been made. the ceo said he had no plans to go public anytime soon. worthapital is in a deal $3.4 billion that includes $2.2 billion in securities. plans are to simplify the company and return capital to shareholders. based inny nero mama, mexico, saw a jump in price even though the company has not
rishaad: the rally that started with hong kong spread to mainland markets. the shanghai composite posting its best today climb since march. >> we are minutes away from the open as well. we will have to's if this see if this two continues. the rally started with the chinese related shares here in hong kong. they have then up. -- been up.
on the shanghai composite for every one that fell. speculation rife in the market that the hong kong connect could be announced this week and launched this year. we have had these rumors before. shanghai composite likely up because of these rumors. property subthe index, the biggest two-day rally in a year. tot is what is continuing drive this. rishaad: the composite index was down at a time when it had been writing -- riding high. what about the rest of the market? is it overvalued?
>> we are talking mainly about stocks listed in the u.s.. in hong kong, they are getting a take bump>> up. there seem to be increased -- i wouldn't say enthusiasm, but confidence in the hong kong economy. the yuan has stabilized and there seems to be more confidence. and then the relative strength -- x rishaad: overbought? >> overbought. the relative strength index is 70. that is the marker that tells traders it might be time to get a little bit frothy. rishaad: frothy. all right. thank you. , his penultimate meeting as governor.
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♪ brand new apps, shows to go, ♪ ♪ awesome internet that's super whoa... ♪ ♪ everything is awesome xfinity. the future of awesome. rishaad: is moving higher in sydney. suggest we've spoken to $5.9 billion of net losses, the first since 2001. the biggest mind of raw materials prices hitting a 25 year low. ever since the dam disaster in brazil.
many brokers including goldman sachs offers bullish initial ratings. j said they had coverage with positive ratings. second quarter smartphone sales from this company tumbled. would shipping 10.5 million handsets. without from more than 17 million euro. now holds fourth place in that market. looking for those royal bank of japan minutes they should be crossing the ticker any minute now. there is considerable uncertainty about what happens next when it comes to momentum and when it comes to inflation. it was pretty much in line with the forecast that had place.
the rates could remain low for some time. there may be enhanced that they have room for more stimulus and lower interest rates. we are at the start of the trading day in shanghai and hong kong. just to put all of these minutes into context, that was the meeting where they stood pat. it was basically the same thing. inflation may remain low. markets are looking like this right now. looking much much better than at the start about hour ago. you have these three markets on the way down. the rest of the markets that have opened since then are actually pointing into the positive.
these are the top wanted to markets as far as the night inflows they've actually been able to obtain. talking $12 billion. one stock we're watching very i think we are up about 5% last i checked. we're going for a third straight day of limited action. shanghai composite is massively on the mainland. still a decent bid. 3130 is your level right now. there are lots of things considered. we might see them raise the rates further. for morethe occasion
stimulus given the horrible set of data that came out of china in recent days. on that note, the people's bank gave us the slowest credit growth in china in more than two years. putting that into context. what they are saying is that it might just be a one off. they're also trying to alleviate some of these concerns that china may be trapped in eight liquidity trap. between thehe gap m2.th in m1 and you're looking at 25% growth in m1. that seems to indicate that the money that the bank of china is injecting is basically the same it comes to savings rates. it's not going for more productive uses. that is not an indication or a measure of the liquidity trap.
that's just something to keep in mind as we make our way through the trading week. the shanghai composite has a decent bid at the moment. we have entered overbought terrain yesterday. rishaad: were talking about what is gone with the reserve bank of australia. they had their meeting where they cut the cost of borrowing. they sit inflation would remain low. economy could grow faster. that is the expiration that we had for the move the beginning of this month. let's get to what is happening with the gathering pace in australia. it is prepared to announce what might be its worst ever results. what sort of numbers are we looking at here.
>> it will be a bad vote with a not unexpected results. later today. it is expected to post a net sincet the lowest level the company in its current form was created in the 2001 merger. are quiteying profits low. not unexpected because of that route in commodities prices that we've seen. that is what sapped away those underlying profits. regarding -- recording charges against its shale assets.
the numbers don't look good. they're hoping it will draw the line in the sand and from here on in things will start to improve. rishaad: should we expect more bad news from here or they trying to get all the bad news out at this point? david: this should be as bad as it gets for bhp. competitors like glaxo america post fairly dire results. things like asset sales and share sales. not something that they contemplated before. cuts and dividends. the things from here on in should improve. all prices are stabilizing.
the outlook from here on it is more positive. in subsequent years to the end of this decade. this should be the lowest point. for bhp. rishaad: where does future demand come from? they can't rely on another demand boom from china. david: that's exactly right. it'll be interesting to hear some more of that from the company this afternoon. previously bhp analysts had spoken about the rebound coming first in gasoline and oil. and then leading to other commodities. looking at the u.s. energy market for demand as well as renewable energy. are right, there is no other channel on the horizon. they reported their own decline in profits earlier. they remain very cautious and
very wary on the outlook for china. rishaad: ask a lot for that. thanks a lot for that. colony capital chairman of the long-time friend of donald trump told bloomberg that the tycoon is better than that. >> let's move on from all the negativism and find the little degrees that we can move as a group. i think everybody is ready to do that. that is what we are advising donald to do. he is better than all the negativity of same. that is the message we are trying to get out. rishaad: at least seven people were hurt when overhead camera at the rio olympics fell to the ground.
the official broadcasting service has operated olympic service. one person was taken to the hospital. an investigation is underway. newroom released information said it failed to designate a flawed ignition switch as a safety concern. told theotors ceo investigators that they listed it as a it was a customer satisfaction issue and not a safety issue. the testimony is only now being released. the defect has been linked to 124 deaths. the strategy has led the company to become the fifth biggest carmaker in the world. euro this piece about what you call hyundai's fortress. how unique has this strategy been until recently?
craig: the auto industry these days is really a tangled mess. anything that is low volume and high cost and they tend to want to work with a partner. in hyundai's case, they are rare and in the industry nowadays. they do have an in-house brother company that they can turn to. for the most part, they have avoided any sort of joint ventures. hyundai's taking a different approach now as you alluded to. they do feel that so much is safety technology and connected car offerings. rishaad: they have to change the mentality.
craig: the person we sat down with was an executive who joined the company from samsung. before working for samsung, he worked for a sad -- start up in silicon valley. he was one of the contributors who invented hdmi technology. he has a background in the technology community. at samsung he was working in that community as well. ofis taking this approach googling to be samir bouzid we can all keep going on. we compete with the rest of the industry. we also need to look outside to the collaborations with others. startups in silicon valley and they are also working with the israeli company that is playing a big role in the imaging and sensor technology that is necessary for thomas driving. you talk even with hyundais parts suppliers and they to
recognize that while they are competitive in a lot of areas they need to look outside for help and really keep up with all of the changes that are going on in the industry. rishaad: thank you for joining us. the challenges of moving money in a globalized world. western union's business position. identifying the problems and what can be done about them. this is bloomberg. ♪
more like 620 million tro china shares. the state own giant said the swap is in effect. it is a strategic active cooperation. the indian firm is defending the decision to merge its company and says the proposal to create a $9 billion firm will have to cut costs. they are combining at that level. it has stakes in everything from mobile phones to life insurance agreements. hit thee shares took a merger was questioned on that recommendation. bridgestone has been made the first supplier of the olympic tv channel. it is the first founding partner of the 11 channel. it launches on august 21. for the closing day of the rio games. increaseing to
exposure of olympic sports between the games. they set up on the day that the real explosives. -- the rio olympics closes. western union has launched a platform aimed at small transactions. i spoke to the press -- president of western union. tell us the challenges you faced at the moment. ours an organization primary focus is to help out and largely small to medium enterprises. businessesy those are having to look internationally for growth. the domestic economies are challenged around the world. we are trying to help them grow their businesses internationally. we got an organization here in hong kong that is a fantastic
business that has been a customer of ours and has been a real exporter of industrial machines. it exports into china. this organization has to worry about things like brexit. it is a hong kong business importing machinery but it has to worry that macroeconomic issues. these are some of the challenges. they always have had to worry about it but they are increasingly trying to find growth. it is part of that business that does become international. it will become a stronger business. the rate of small businesses much higher when they do become international. rishaad: what problems to they face to their bottom line? >> imagine running a business in
the cost of your growth varies by five to 10% in a way that is outside of your control. managedare not well they are not acting immediately. we have done is to invent the technology. we've added the platform coupled with a high-tech service to help them navigate the challenges of foreign exchange rates. with the platform does is give them a range of tools to upload their transactions in foreign currencies. it gives the real certainty of the value of that invoice. >> we are supporting them doing that. they can use any other counterparty that is to software we provided. we've got a high-tech service that can provide a broader range
of activities. rishaad: this is part of your reaction to what going on to this index. western union has been a company that has been moving money around the world for years. what we are doing is in the same way moving money for individuals. preventedology we cross-border in minutes. rishaad: what is the biggest challenge their facing? i wish i had a dollar for every time up and asked that question. though he knows the answer. wecan talk directionally, can talk about macroeconomic trends in with the need to the currency. this is got to stop gambling with the prophets.
they have to be more actively manage. about 85% ofrexit corporate heads of strategies had volatility. about a quarter of them were really strange when you think about it. rishaad: you think they be involved in this part of the world. talk about brexit and one of the shockwaves from that. anytime there is anything that increases economic uncertainty is going to affect volatility and it will affect markets. you could be a business in asia that has nothing to do with that part of the world and you're going to have an implication is the result of that. rishaad: you are here in hong kong but you're not in china. yet capital controls in place. you must have a plan to get into china. >> china is a very important economy.
the vast majority of our beneficiaries are in china. we have more than a hundred thousand customers that estate more than $2 million as an advisor in the world. it definitely is part of our plan to be in that market and to provide services so that we can do that. thousands of them of state hong kong. we're going to be doing that the future. rishaad: thank you for being here. up, he boasts a big check names on his tv and has been a big help in assisting china onto the global stage. ♪
the chinese technology sector. apple google and microsoft. seven years ago he founded innovation works. this is an incubator for tech startups. we asked emily chang about the difficulties facing u.s. companies trying to break into the u.s. market. >> he will get even harder because 10 years ago at least to the playing field was similar. you have a similar search engine, you had similar browsers. nowadays the entire mobile stac is different. learning to play is very different today. it is getting much tougher than ever before. i would make one exception and that pure technology american companies can and should find a chinese partnership. so the technology can at least be used. for the benefit of the users. that is more licensing and technology. not running to consumer products.
emily: you see google ever coming back to the country. >> google will have to work harder than the other companies because of the way that it chose to leave. it has an opportunity to pick the least sensitive products. maybe something that is hardware related and doesn't have to do with social networks and user data or censorship. what about the search engine? >> the search engine will be a little difficult. to do pledged not censorship so that will make it difficult to answer for that country for the time being. chat has had great
success in china but great difficulty in entering the u.s. market. what is the likelihood that they will be able to make the reverse happen and break into the united states? the chances are pretty low. i would view them as exceptions. i think the best path for chinese companies that want to go abroad are to go to the countries that are similar to china. those that areas becoming wealthier and developing countries with large populations. highly dense cities. younger people who want to try new things. countries like india and indonesia and brazil. i believe even the middle east. if i were a chinese entrepreneur deciding to go abroad those the countries i would focus on. not the united states.
announcer: from our studios in new york city, this is "charlie rose." charlie: scott anderson is here, he is a novelist and war correspondent covering the middle east. he has a five part issue coming up in new york magazine. it is called "fractured land, how the arab land came apart." he tracks the current crisis in the middle east. he does it by looking at the lives of six people. it is a fascinating look into the region's history, the forces of tribalism and the global implications of the arab world in revolt. i am pleased to have him at this table. welcome.