tv Bloomberg Markets Asia Bloomberg May 17, 2017 9:30pm-10:01pm EDT
was a blip and whether we will see this resumption of price declines across major cities. breaking news and australia come are strained numbers coming out imminently. seen australia and other economies like the u.s. is this phenomenon of that mixed when it comes to jobs numbers, ,ull-time job numbers declining skewing those numbers, so let's get to paul looking at these latest numbers, a bit of a roller coaster ride. yes, april 1 not disappoint. dramatic reduction in employment rates. the expectation was for 5000 jobs created. 37,400, there is an issue with jobsorkforce, full-time
falling away, part-time jobs 11,600, 49,000n part-time jobs created. the participation rate rising to 64.8%, but another weird set of numbers. intact,nd seems to be the part-time job creation still same strong. the figure argument is where is the wage growth. paul: we have those numbers as well. still stagnant at 1.9% on year, heroicat below the assumptions for wage growth that underpinned the austrian budget. are to beumbers believed, the employment picture adline figure better
than expected, andy aussie dollar popping above 74.39. thanks, paul. breaking news out of china. property prices for april. tom mackenzie is in china. these are not going down. it. it does not look like we are waiting for the overall number. we are still waiting for the price rises. details from beijing, shanghai, and shenzhen. beijing, house prices of 22 point 5% in april, year on year. for april, house prices in shanghai of 14.2% year on year for april. shenzhen, house prices for april up 6.7% year on year. monthly basis, house prices unchanged, so cooling in shenzhen, but beijing
strong indeed. the overall number, prices in china in april rose in 58 cities of the 70 monitored, down from the 62 we saw in march. really that march number surprised many, much stronger. so prices rising and slightly fewer cities than the month before, but still showing relative strength. has been number explained because people said a rush as people sought to block him before more cap's were put into place. cities, the major cities come have put in regulations to make it more difficult, bigger deposits, harder to buy a second home. if you don't live in the city or
are from the city, it becomes more difficult as well. on the flipside in the smaller cities and towns in the heartland of china, they are trying to move some of the glut of housing there. this still shows there is strength. itomberg intelligence saying is the property price on the property sector that helped to power that surprised q1 gdp point 9%, china, six that surprised as to men's. the property sector here makes up 6% of gdp. indirectly, if you take into account the other sectors, that accounts for 20% of gdp, some very significant. is about getting the balance between cooling the property getting them to follow so rapid that you end up dragging down gdp growth. you don't won a huge rush to the exits on the house prices, just want to edge them down, and that has been the difficult balance
for policy as they have been trying to strike it within the context of weaker overall macro numbers, whether retail sales, fixed asset investment, industrial profits, which all came in below estimates. tie that into the real estate sector because that involves things like steel prices, cement prices. this is a relatively strong , prices rose in 50 out of 70 cities monitored. i have to get reaction to this data. thank you so much. let's get the soapy. mainlandtocks on the tumbling, shanghai composite down .5%. h-shares lower by .8%. i will get to the property segment shortly. the broader region, the tumble continuing in tokyo and sydney. we did get that surprisedi willy
segment shortly. upside when it came to the jobless data out of australia, a pop in the aussie dollar, but the asx falling over 1%. japanese shares sliding the most in five weeks as volatility picks up, banks they are tracking the most in tokyo and the region. check it out. financials falling 1.5 percent amid concerns about the fed policy normalization path, spurred by the trump and drama. checking in on chinese property players, we do have an index of .his space falling this is following the april home price data, the sector a significant part of china's economy, and that was a surprise when it came to the april data given that we were anticipating a slowdown from the march number , fewer citiessing
seeing price gains in april compared to march. j.p. morgan tsonga short-term weakness offers good buying opportunity. fromuld see some impact the halting of approval of some commercial projects. , toppinghares estimates for first-quarter earnings with that gain in revenue. several brokers have raised their price target for the stock. shares rising .5% for tencent. you for that. let's get first word news with stephen engle and hong kong. >> the stakes are rising for president trump. the department of justice has appointed a special counsel to oversee the fbi investigation of russia's alleged attempt to influence last year's election. a former fbi director robert mueller has been named.
the independent inquiry is in the public's interest. the bond market seems to be saying that the upheaval in washington could throw the fed off rate hike path this year. the chance the fed raises rates next month are now 60% taste on the current fed funds rate. that is down from 80% a week ago. the chances of a boost in september are also falling. the market is not pricing in a full hike until november. apple shares fell the most in six months as the controversy surrounding the trump prompted concerns about the likelihood of being passed. apple has $240 billion in cash abroad. trump has proposed a tax cut to repatriate offshore holdings. most sinceell the november, while the s&p 500 fell 1.5%. isnka's clothing brand
facing backlash. it is investigating to producers for the lineup, saying employees are forced to work more than 12 hours a week a day, six days a week, for about $360 a month. the group is also investigating apple suppliers in china. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: we have the simmering dispute threatening to boil over. we have asian suppliers being dragged into all this. who has been ensnared in the dispute? what can they do? there are four suppliers in this controversy. they have been sued by qualcomm. a rough calculation of how much
they contribute indicates it is about 33%. hai 21% -- this essentially creates a lot thencertainty on not just four suppliers sued by qualcomm, but also qualcomm's earnings itself. suit against the company. fallen 13%.tock has analysts are expecting it may fall further given more uncertainty. qualcomm sayss none of the suppliers are actually paying the royalties it uses contractle
manufactures, and that is how these companies are coming into the picture. haidi: what is qualcomm's problem with apple? and how can this play out? when theretarted were a couple of antitrust .ssues with qualcomm .hen apple sued analysts expect this will be a long drawn out legal battle. if you look from the contract manufactures point of view, apple is a big contributor to their revenues. foxconn, it actually gets more than 50% of revenue from apple. try and get 60% from apple -- on getsrawn -- pegatr more than 60% from apple.
transfer effort to google into an ai first company. google's plans may threaten and nvidia. intel rishaad: singapore airlines may recruit pilots to be trained on boeing. is hiring first officers with 750 hours of flight time to work on its airbus aircraft. the kerry made by or lease wide-body jets and may use boeing triple sevens. the producer of the willful wall street is talking department to settle a lawsuit.
it was called funded by the stepson of the malaysian prime minister. its lawyers are asking a judge and los angeles to extend the deadline so they can carry out further negotiations. rishaad: we have just been reporting china home sales rising and fewer cities after the government impose curbs. let's look at the data with black rock. you saw the numbers as they crossed. what was your first impression? one month of data come even though they are cumulative and you can compare year on year, so it is important not depend too much on one said, but there has been a slow trend in home prices. you are still posting fairly strong growth, so the rate of change is lower, but the base effect has gone up, so overall, not a bad set of numbers. rishaad: are they managing to slow things down?
22% year on year in beijing to is not seem like slow growth to me. >> that's right. when you talk about china as a country over all, it is important to remember that what is happening in shanghai and beijing is not happening everywhere. rishaad: let's bring up this chart. there we are. shenzhen was going nuts, wasn't it? last year in particular. 60% year on year growth. this is all slowing down. we are probably plateauing at this point, aren't we? that is what gives, i suppose, but can it be manage that will? take could all end in tears as well. >> it always has the potential to do that of course, but it is hard for governments whether you are in china, the u.k., europe, hard to manageis pricing because all you can do increasedmore curbs,
stamp duties, etc., and sometimes it is the unintended consequence of that the can caused the problem. i would say the management curbing of pricing actually seems to be going reasonably well so far. there is still growth, but the rate of growth has slowed, and overall that is probably pretty much what the desired outcome is. being in australia, you certainly understand the difficulty of addressing a multispeed property market, certainly not limited to beijing, but their problem is the fact they have a closed capital account. until that changes, i we likely to see the cyclical ups and downs across these limited asset, including property? >> i think it adds to the issue. there isn't a hugely wide range of opportunities for people to invest in. it is very much an asian
sentiment to use your real estate come use property, as a store of wealth in countries and isn't theere there same formulae sense of retirement schemes, so that is likely to continue. where we are seeing more and practice outside of presidential. there has been a noticeable pickup in the office and retail investment from foreign direct investment, particularly after what might be called the combing of the fears over a trade war with the u.s.. certainly we are seeing evidence of that. haidi: on the residential front, i want to pick up on what rish pointed out earlier. beijing up another 16%, 22% year on year growth, but these are the cities that you guys still like. do.es, we i have to say that we tend to
invest less because we do direct investment on behalf of funds. we tended to invest less in residential or our focus has also inoffice and retail, but it is a big city focus, the shanghai and to a lesser degree beijing, so we are still buyers of the market, and so far that strategy has seen some good rewards. rishaad: property firms have been doing very well. i guess this run-up, how long can that run-up last four? if we look at property stocks though, and i have this chart, i saw this in the u.k. as well. quite often you see property stocks below book value. why is that the case, but why so far below value? >> it is a long time since i have been a stock analyst. assets. mostly on hard betweenhe difference
hard assets in stocks is that if you own the physical real estate, you control the cash flows. if you own the stock, you might have a vote over certain matters, but you are not in control of the entity or the particularly in real estate stocks, that is sometimes why they traded discounts. the other reason is that within , real estatetocks values can be volatile, so there is a little bit of discounting. rishaad: you say you deal with the real property itself. carpark.n for a >> more than one carpark. 419 per it works out to square foot when the thing is built. who is going to pay that sort of rent? are you going to get any yield on this? >> that is one of the most important questions.
where we are investing, we are not focused on hong kong at the moment. we do, so maybe right, maybe wrong. yes, it is record pricing. the news of it went around the world. the question or concern we have is that if you had a time where you had great growth out of china and therefore imported a lot of gdp with a low u.s. interest rate, what happens when the gdp is lower and the rates are going up? rishaad: that is the concern. thank you so much for that. tencent scoring heavily with a couple of breakout hits. we look at their strategy and what is on the horizon. ♪
kong. it is a declining market. profit did top estimates. look att to lulu for a the results. impressive growth. of course everything is being sold off. >> quite a volatile share price this morning. the share prices are up again. as soon as you say that. >> if you look at what tencent is becoming, another record for them. as soon as you say that. >>they are becoming quite the hybrid of netflix, marvel, facebook, amazon, a lot of new business parts coming in, and all this is growing nicely to give them more time to drive into cloud, finance, hollywood content. where they are growing for this quarter and pass quarter was mobile game revenue, specifically their top downloaded app.
analysts are expecting this could contribute more than 50% of revenue for mobile games this year. you outlined some of the company's ambitions, but what are tencent's priorities right now? >> for them, the future, cloud and payments and finance and infrastructure service that will support all of the business fronts. they want to monetize more advertisement revenue from we to do that, order they have to be better able to target users so they don't spam users and disrupt the user experience, so they need a high technology to help them understand who the users are before they increase those at inventories. rishaad: of course up 2.4% now. haidi: can't keep up. lulu, thank you so much for that. lulu chen and hong kong.
>> from our studios in new york city, this is charlie rose. charlie: we begin this evening with politics. the new york times reports this evening that president trump asked former fbi director james comey in february to terminate the investigation of michael flynn. the white house has denied any wrongdoing. the president technologist and defended the position as his absolute right in a series of tweets early tuesday morning. the news has intensified criticism of the trump administ