Skip to main content

tv   Bloomberg Markets Asia  Bloomberg  November 6, 2017 8:00pm-10:00pm EST

8:00 pm
choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. >> let's get use some live pictures where trump is that too ofive part for his next part his trip. not a lot of deliverables have been announced or tweeted and he has been taught to hang about trade and it appears that the prime minister is standing firm on trade issues. pursuing free be
8:01 pm
trade deficit reduction. donald trump wants to renegotiate to bring the deficit down. visit is the closest to kim jong-un. and thel feature talks trade deal has hurt u.s. workers. theill be addressing parliament and it is a contrast to the warm relationship we have seen with shinzo abe. there he is. is seoul. >> it is almost like he is tackling visits in order of
8:02 pm
difficulty. the geopolitics are about to get a little harder and he talks about whether this alliance or pledge to provide military going to continue to be supported by the u.s.. visit to japan had nice words to shinzo abe. he has been talking about current affairs in saudi arabia and he says that the crown prince knows what they are doing. perhaps. up.prices have been going chart withat this futurest crude and the
8:03 pm
looking at a this for ae with singapore.ou know >> it is helping energy producers and is finding support. broad asianat the we are seeing and a little change for the first with the gains and equities heading for a second day of gains and you have
8:04 pm
to wonder what stocks will do with trump and you see the see ifrise and we may any restaurants get a pickup on the back of that. check out the gaining on the ground and providing a stable backdrop. the focus will be the aussie dollar and i want to focus on one of the stocks reported sliding on the back of that. and it jumping to a high rose as much as 11% thanks to
8:05 pm
the regional bank orders and we have the earnings on the radar in the focus today. >> thank you very much. markets, we have the first word. that he hass confidence in king solomon and the prince and says they know what they are doing. thel banks have frozen assets of the investor. snared $33wn has billion. negotiators planned to start their meeting two days ahead of schedule to go over issues covered by -- you on the talks will run to the 21st of this
8:06 pm
month and the lead negotiators will join on the 17. officials abandoned a target to revamp and said they needed until the end of march to clinch a new deal. forcountry remains open business and she wants a change of emphasis, saying that the country would benefit from the transpacific partnership. she says she wants foreign investor to focus to what she calls more productive areas. it is an outward-looking economyand a productive eatedher than an overh housing market. >> we will have more at 9:30.
8:07 pm
setting the ground for a lengthy and losing takeover fight. they want to build a chip powerhouse in the wireless electronics world and they are ready for a proxy battle. they are inclined to reject the offer and appealed directly to shareholders. by 2700ews car analysts. bloomberg. >> thank you. is heading onp the second leg of his tour and this is strengthened ties but no real results on trade. meantime, our correspondent has been on this for.
8:08 pm
what's do we expect in the next part of the visit? likes toate department talk about the deliverables from japan and they are talking about a unified runt in the face of you think youd are going to get a similar situation and they renegotiate the free trade agreement and the president is not necessarily as , but will show a unified front north of here and we are in front of the press center, which is the government office where trump will have
8:09 pm
laterals later and he will hours anda couple of have lunch with the troops and give a campaign-style rally and it is interesting to get a sense of the reception he will get here. we expect some protests against some protests in support. they would not call it protest. this newspaper gives you a sense that this is playing front and center here and the korean says that the trump state visit is welcome and there are pictures of protesters who say not to come and they do not want provocation and they see that as a possibility. the president says that he prefers dialogue with the north
8:10 pm
and the south will probably get more clarity on the u.s. position with trump coming near the heart of the fire and fury comments and it should be an interesting couple of days here in south korea. former u.s.s is a ambassador. thank you for joining us here. like this with a state department that talks isut deliverables and this weeks of planning. this?o you expect out of is there polarization in tokyo? is going to be difficult
8:11 pm
because there has been hugs and embraces between shinzo and donald. happy tomade the u.s. see that they have gotten a lot more and they are worried about what the pressure is all about and if the pressure will set the stage for the military action or if it will set the scene for a negotiated solution. they are hopeful they will leave the door open for negotiations policy trajectory of the is what they will not consult in in any other way more. this is a challenge to persuade that we need to take a tough line and that he is leaving a door open to negotiations down the road, if the north koreans
8:12 pm
are prepared to spend on some testing. >> we have seen everything on that spectrum of what foreign policy looks like with the fire dd the theory rhetoric and you think trump has gone into this with a coherent foreign policy? >> it could be more coherent and the key thing that causes the anxiety is south korea and that the u.s. has been ambiguous for military action and if it is attacking the u.s. or further progress with the acquisition of a capability that could reach the united states. program, the the south koreans will be worried
8:13 pm
about that. hopefully, the president will convince the president that we are trying to use pressure to give up the programs and he has more heavy lifting to do. discuss is a lot to with this visit by they sitting president. this is bloomberg.
8:14 pm
8:15 pm
>> this is bloomberg. we continue our conversation with the former ambassador. let's continue with what is
8:16 pm
going on and how much intel is ?here that trump has he does not have the assistant secretary of state for north asia right now. there is criticism about the state department getting hollowed out. what is your view on that? good embassy and an iserienced diplomat, but it a disadvantage not to have a person in the job for the visit and the same is true with the state department. thorton is capable and is a qualified senior director. thee is a brain trust, but
8:17 pm
halloween out of the state department is serious and it has worried me. >> indeed. north korea and that is only one part of this and there is a free trade agreement that donald trump has called horrible. you get a situation where they agree on the geopolitical and cannot get to grips on the free trade side of things and that is opaque. with are in a better place south korea because we have a free trade agreement. there was a bit of a breakthrough and the president has rejected that. he is right to criticize this agreement as not delivering as many benefits, but it has been a
8:18 pm
plus for the united states and there is a big surplus with agricultural trade and financial services. closed. market was now, we have the south korean market. grudging concession to renegotiate, but there will not be too much talk about this. some see if we can rectify of the weaknesses of this agreement. inma made a mistake renegotiating it, rather than putting it into a fact. we were dithering here on whether or not to put it into effect.
8:19 pm
>> i want to bring to the attention of our viewers the that shows you the trade relationships between the united states and these countries and you can see the trade volumes with south korea coming in and you can take a look at the deficit and the manufacturing goods that trump has been focusing on. we just heard about the immediate aftermath of his visit and he said we will not favor -- we will not renegotiate. do you think that is a little too much? >> you have to look at the bigger picture and many say that the president is a process with the issue, but you have to make
8:20 pm
an assessment on whether the benefits outweigh the dissident manages of this agreement and the free trade agreement is clear that it delivered a lot of it would be larger without the free trade agreement. we should see what we can do and recognize that this was called a old standard of free trade agreements and is good for us to emulate with other trading partners like japan. >> what do you make of the argument that this president has alliances?global in thiss soul-searching part of the world as to whether
8:21 pm
we should look at new alliances in the case of this united states. has the administration come around to honoring these alliances? >> i think that it has and the speech that we will hear from the president in vietnam will reflect a continuity with previous administrations working with ther allies and biggest democracy in the world to ensure that we defend our interests and china will grow more powerful in the region. that is why it is important to have common ground to enter into the next phase of this challenge
8:22 pm
and we are more likely to influence the chinese to put more pressure on the north and get this problem solved without using force. .> that is a difference werewould it be, if you down trump? would try to explain that we cannot tolerate a north korea within intercontinental missile that delivers a nuclear weapon thehe united states and purpose of pressure is to convince the north they should negotiate and you eliminate the nuclear capability in return for a peace agreement and other assurances to stabilize the
8:23 pm
peninsula. negotiations is the missing piece of this and that is what they are trying to persuade president trump. moveave hang seng on the and asian stocks are higher.
8:24 pm
8:25 pm
>> all right. more details on sanctions imposed by japan on north korean entities. that press conference with donald trump. nine groups linked with north korea. the cabinet has agreed to impose sanctions, according to the
8:26 pm
cabinet secretary. we are getting a little bit more detail on these sanctions that we were expecting after the press conference. >> absolutely. additionalhe sanctions and we await donald trump, who has just left tokyo. here is what you can expect. we are just a few days away from the latest earnings statements. this is been a big rally for the companiesand these are responsible for the broader hong kong market for falling into a deficit today. and the china
8:27 pm
literature unit has this at the moment. also, new zealand and the transpacific trade. this is ahead of the world stage debut and our interview with the prime minister.
8:28 pm
is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com.
8:29 pm
>> seconds to go before the start of this trading day. you are looking at donald trump in asia. talking north korea and trade. the market is dominated by this power play in saudi arabia. as new zealand government and we are looking at
8:30 pm
the consumer confidence. week fora jampacked investors to be focusing on and the markets are closing at that point. let's go over to shanghai and the markets are just opening up for the session. >> we are seeing stocks in hong kong and the mainland is gaining ground and we are seeing positive sentiment across the equity markets with a regulatory and it is a caution with highd management impact threats and this is a black swan with a rate gaining that handle.elow
8:31 pm
now, we have stocks that we are keeping our eyes on. an effort to reduce leveraging and helps the stock prices. the rate has fallen the most since the open. we are showing you the online reading for literature and the literature could raise more in the gray market ahead of this on wednesday. a last look at the chinese afterers on the radar posting a rise in october sales those stocks are on the move this morning. >> thank you. by the more on the trip
8:32 pm
president to asia. >> thank you. tosident trump is on his way south korea. the trip had delivered no results on what he called unfair trade." the leaders agreed on a hard-line approach with no new measures. roadblock as the house ways and means committee considers measures. the legislation supporters say for specialiminated interests and critics say that this is smoke and mirrors. >> this is not tax reform. this is indiscriminate
8:33 pm
willtting that i think increase the unfairness and cheat the future and not provide a significant benefit for growth. purchasing 21st century fox movie studios and other assets. the conversations are now dead. a included cable networks and stake in sky. shares jumped on the reports of discussions. the world's largest cinema ofrator may raise millions dollars. it is controlled by a chinese someonaire and is selling of the european arm to reduce the debt. the acquisitions word to railed
8:34 pm
by a crackdown on overseas spending. global news powered by 2700 journalists and analysts. this is bloomberg. >> thank you for that. the new prime minister says that she will pursue amendments to andtranspacific partnership leaders met in vietnam with trade at the top of the agenda. we spoke with -- >> there is no doubt that we are coming in light and it will pose issues. our view is that we have a responsibility regardless and many others have had domestic discussions and debate and many have taken similar positions to us in the past.
8:35 pm
>> there are a couple of countries that want to get this thing wrapped and this will slow things down. raisedissue has been that we are pursuing this as far as we are able to. plan toou say that you pursue it as far as you are able to and that this is not a dealbreaker. i will continue to do so by not preempting our negotiators around the table and we need to make sure that we are clear that there are benefits for our exporters and we are pursuing clauses.ome on other >> can you talk about those benefits. about it for the
8:36 pm
country? one of the most significant issues we took with our ability to manage foreign ownership in the land in new zealand and it was significant for us and allowed us to focus in on this and there has not been as much coverage because we wanted to make sure that we were pursuing this and it was clear that new zealand does not have what the australians do with the benefits to our thief industry and that is clear. >> the government moved quickly on the property ownership issue. what kind of message does that send? open andthe outward-looking economy and we would prefer this economy to be
8:37 pm
productive and not be overinflated. >> what does this mean for peter of newith the days zealand becoming a -- >> that is quite specific. a lot of people say, if you want to spend time in new zealand and contribute, this is something we have welcomed and we have had a case where someone who has hasly visited new zealand attempted to purchase citizenship and i think it has raised eyebrows. she promises to change many aspects of the government because of the way the central catherineolicy and
8:38 pm
hayes is with us now and wants the same mandate as the fed and to maintain the independence. thehat is important and reserve bank of new zealand has been a policy leader with with a focus on and how they do it. is that theening minister of finance and -- on thegned an agreement price target and we are going back to the new zealand act where they targeted price stability and the government was able to say what price targets whatwanted and this is robinson is saying and is served it provideswell and
8:39 pm
the most efficient and effective includingnew zealand, looking at maximum employment at they want to look theyttee decisions and the many levels that advise the of the central bank and central bank chief does that and it might get broader. and is an interesting time taking big step they are rates at seen as cash with this over here
8:40 pm
and this is where we are supposed to be. key rightee is the there and you can see the aslation rate and the range they try to keep it right there and they are succeeding with the policymakers with more spending and more boost to the economy and they say that businesses might hold back on the decisions now. later and comeet with the policy decision later. what can they really do? situation where they have to watch what is
8:41 pm
thisng on and you can see range. 1.8 and this on this plus side, the higher momentum remains and consumer withing has slowed a bit and wes about prices look at the one that i started and you will see a situation with home prices keeping themselves in the green and this is a another concern about seeehold debts and we will what they say about the aussie dollar. there you go. that chart is one of my favorites. not tos a lot of reasons
8:42 pm
think about lowering rates just yet. >> yes. you look at household debts at record levels. thank you for that. we are watching this. president trump is making his mark as he tours asia. we will talk about that more next. this is bloomberg.
8:43 pm
8:44 pm
markets.s bloomberg let's digest the crackdown on billionaires in saudi arabia. decisionhe upcoming
8:45 pm
withet's cut to it all asian equity portfolios. on andthe earnings going , out of all these things, where does that way? have a lot, as you stated that can have a big impact on the things. >> we are seeing a vast majority of these. wethere is also guidance and have to see if there close to that guidance and there will be a lot of geopolitical risk that will have an impact on the it is an opportunity,
8:46 pm
especially if markets correct and there are further intentions around the world. anytime there is a correction, that provides us an opportunity to get something cheaper without changing the company fundamentals. why not? >> indeed. where are the corrections? you take a look at volatility a week record low in with market-moving events. where do you find the opportunity for value in the market? >> the market correlation's are very high and it is difficult for managers to capture alpha. instead of focusing on the geopolitical risks, we have to find a diamond in the rough that the market might be missing, like corporate earnings or
8:47 pm
dividend payouts with cash flow to focus on this to identify companies. these can find some of quite keennd you are to asia. do you think the fundamentals of the market -- you still have the invisible hand that is going to stop anything from going too far wrong. >> what we have come to figure with the asian companies is that they are looking attractive, given the recent run-up that we have seen in the markets and
8:48 pm
with some of the suppliers with the apple suppliers and the valuations are becoming similar. year, it is becoming more expensive and a lot of these names are becoming more attractive and something for us to explore. >> indeed. but, with the iphone and the glitches,you get the etc., they are vulnerable. at some of the larger apple shares and they were up. >> it was a big tech come back yesterday. >> correct. markets havep and high expectations and corrected, to some extent, with some of
8:49 pm
these companies trading at a higher violation -- valuation and some of these asia tech companies could be the way to go. -- this isseem largely discounting the donald trump visit to asia. and theis strategic first stops are north korea related and the next visit will be china and it will be interesting to see if he and the president can agree on anything and his final spot will be vietnam. we will see if there is a potential escalation with the south china conference. expectedhat the market and, if there are surprises, it could make the markets be affected and lead to
8:50 pm
opportunities for investors. >> thank you so much. some of the at financial markets and move it to rideshare lines and apple responding to reports from the paradise papers that said that they moved there profits to jersey after the crack down on tax profits. apple said that it paid every dollar it owes and says that the effective tax rate they pay is 21%. >> apple is looking for buybacks and dividends and was sitting under $270 billion in cash parked at said the u.s.. wouldpublican tax plan
8:51 pm
charge them 12% on overseas profits. >> 38% of the hong kong market ahead of the debut and they expect the net proceeds to be in excess of -- now, that is the top end of the range and they said there is outsized retail demand. it will make its debut on thursday. >> coming up, silver linings in his playbook. he sees opportunity in the failure of the negotiations. this is bloomberg.
8:52 pm
8:53 pm
>> you are back with bloomberg markets.
8:54 pm
closings were down after the talks with the merger collapsed in the news came with the topic guesstimates. they sought to reassure investors over the prior year of american telecoms. management is the significant for our future of the group and the sprint share dropped after mergers fell apart and we can get more shares at a cheaper price. we would like them at our limit. >> our reporter joins us now from tokyo. how did the comments go down with investors? , going into this weekend, that the talks were on life-support and the question is why?
8:55 pm
was it valuation? the shares have fallen while the talks went on and there was another discussion about control and they addressed the first thing with the briefings and said it was about control and detailed the investments made saidrobotics and cars and that they will need a wireless network to rely on and the bank was not willing to give up that infrastructure. future is what the for sprint because there was a thought that this needed to get bigger to survive. >> it is the fourth wireless unenviable it was an
8:56 pm
comingn with half of it in the next four years and they that can be used and the technology is a few years away and it is not like they would have the money for the network buildup. andearnings are improving the company is cash t-mobile may with be revising in the future in a more advantageous position and there is cable companies that have agreed on a moratorium on wireless negotiations and they could wait until then, but they are going alone. great to talk to you there.
8:57 pm
coming up, we will talk about trump and his tour of asia and -- ect on
8:58 pm
8:59 pm
9:00 on monday evening on the eastern seaboard of the united states. benchmarks, decades high. nikkei 225 with the best close since 1992. president trump heading for s eoul. up, apple'scoming sixth straight revenue decline. is this the future? this is bloomberg markets asia.
9:00 pm
you do have a mostly positive session across asia. levels at what high since 1992. we are looking at australia, 6000 points. take a look at what is on the agenda. presidents between she jinping and president trump. trade continuing to dominate the agenda. ux of whate cr president trump has been getting at.
9:01 pm
taking a look at how much it is for china, $350 billion. is, you have seen how it has not worked, president trump talking about how the trade deficit is unacceptable, horrible, unfair. will he get a similar reception when he gets to beijing? trade in manufactured goods is what we are talking about here. if you broaden the definition of trade, it is a different story altogether. the deficit has been quite drastically reduced. it is semantics and what you
9:02 pm
want to focus on. >> any anxiety investors might have had have been cast aside. take a look at what is going on, the yen and gold on the back foot. benchmarks are on multiyear highs. is floatingenchmark at the 6000 level. the nikkei 225 is heading for its best since 1992. -- take a look at what is going on with chinese stocks with onshore and offshore. indices, check out what is
9:03 pm
moving the dial over in hong kong. aac tech, that has risen to a fresh all-time high. we also have china literature on the radar. it has priced its ipo. checking on the portrait to see china's property players. synnex rose as much after the rose after the ceo invested in the company. in.stors continuing to pile
9:04 pm
singapore, climbing to a record close. it was upgraded to a buy. the deposit rate, the lending rate. moving to some of the first word news headlines. >> president trump said he backed saudi arabia's crackdown on corruption. local banks are said to have frozen the assets of those implicated. crackdown has snared about $33 billion. negotiators plan to start their latest meeting in mexico city two days ahead of schedule to go over a myriad of issues.
9:05 pm
run from the 15-21 of this month. he extension comes after officials abandoned a target. new zealand's new pay minister says the country remains open for business but she wants a change of emphasis. she told bloomberg the country would benefit from a transpacific partnership. wants foreign investors to switch focus from new zealand's hot property market to what she calls more productive areas. it is an open outward looking economy. >> broadcom and qualcomm are setting the ground for what could be a takeover fight.
9:06 pm
qualcomm wants to build a chip powerhouse. it is said to be ready for a proxy battle. --global news 24 hours a day powered by over 2700 journalists and analysts in more than 120 countries. this is bloomberg. thanks. it is quite something, this rally continuing. let's see what has been happening with equities in this part of the world so far this year. we have a situation where the 225nese yen, the nikkei looking like we will have the highest close since 1992, a gain of 18% so far this year. nearly a 30% gain for the hang
9:07 pm
seng, a fabulous time of it. donald trump left tokyo just over an hour ago. he is heading to seoul, south korea. nothing concrete coming out of it. what he iso fix calling "unfair trade." stephen engle is already in seoul. a longorea is casting shadow over this trip, is it not? >> absolutely. twoill be similar to japan, tracks of dialogue. one about the security blanket over asia and the other about north korea. front and center. on the trade front, where donald trump and the south korean
9:08 pm
counterparts have agreed to at least try to renegotiate the free trade agreement that was an acted in 2012. it has seen a large of an balance -- a large imbalance grow. 86% of the deficit is in the audible deal sector. -- automobile sector. that is something that president trump will be pushing. korea is going to dominate the discussion. we have heard donald trump talking about how the area of strategic patients is over -- nce is over and they will stand in solidarity with japan. said theyster abe will stand 100% in solidarity.
9:09 pm
the blue house in south korea is the government offices and they were focusing on the meal tonight at the state dinner. they will have corn porridge and the top level korean beef. this will be the first official state visit from a u.s. president in 25 years. there are different levels of business. this is the first one since 1992 .hen the first bush came there have been 19 u.s. president of visits to south korea since dwight d. eisenhower did the first visit during the inght of the korean war 1952. haidi: i expected maybe trump's ktake to be on the menu -- stea to be on the menu. if we are talking about levels of difficulty on this trip.
9:10 pm
what can we expect from china? >> yeah, again, there will be that two-track dialogue. let's bring up north korea first. the two gentlemen yesterday talked about their concerted efforts, they will try to get beijing to do more to pressure north korea to abandon its nuclear program and its missile program. prime minister abe saying they welcome china to increase pressure. it is incumbent upon beijing. on trade, well, china has the largest trade surplus against any u.s. trade partner. obviously, they will push for more market access. this is what donald trump had to say about the overall pressure he will be exerting on these asian trading partners.
9:11 pm
>> you will be seeing the united states will take very, very strong action. it has already started. most of the foundation has already been done and you will see very big difference is because it will happen very soon because the united straight -- united states has been treated very, very unfairly when it comes to trade. >> we heard donald trump yesterday in the press conference, he said, i like him a lot but the deficit is a problem. i paraphrase. but he says he likes them a lot. rishaad: what sort of reception will he get when he lands? korea, it willh be a little bit more fiery. we are expecting some protesters down the road here. already we can see
9:12 pm
there are protests lining up. the main headline, it basically says, president trump state visit, you are welcome here but there is a photo that is not so flattering of donald trump saying, basically, don't come. there will be those who do not want the provocation that a truck -- a trump visit to the peninsula could cause. we will see. engle outsideen the blue house. still ahead, more on the trump asia tour. he talked it up but received little about trade. we will see if he does the same thing in south korea. us -- wilbur ross telling
9:13 pm
our one-on-one interview later. this is bloomberg. ♪
9:14 pm
9:15 pm
haidi: this is bloomberg markets asia. rishaad: we are looking at the latest business headlines, starting with sprint and t-mobile. share is taking a massive hit after the merger talks collapsed. softbank says there is an up side. it -- is the hope of a themerger -- it dashes hopes of a megamerger. >> maintaining the management on sprint is significant for our strategic future of the softbank
9:16 pm
group. shares at more sprint a cheaper price. we would like to buy them to our limit. haidi: the supreme court has declined to return to the smartphone battles. intact.apple's award some sense rejection comes after samsung's rejection comes after the trump administration urged them not to hear the case. changes taking affect on the first of january, days single day.ba's
9:17 pm
hard to believe a time where we did not have alibaba in china. president trump is on his way to south korea after a three-day trip to japan where he strengthen ties with prime minister abe. concessions when it comes to trade. the senior fellow at the center for american progress joining us from tokyo. we have been talking about the need for this administration to look at things in terms of deliverables. he has his reputation that he campaigned on as being a dealmaker. >> it is too early to call. prime minister abe had a successful meeting with the president. the president did make some advance with regard to actually
9:18 pm
persuading the japanese government that in return for the u.s. standing side-by-side, vis-a-vis north korea, he expects some economic concessions. for the first time for an american president, arms sales. from the president's point of view, he thinks he has made an opening. the trip to china is where he will be taking a lot of business executives and show that he can create deals. in japan, it was not so much deals but it was to create an understanding with the japanese. there was a grand bargain taking place. as the president said, he wants a fair and free and reciprocal relationship with japan. i thought it was
9:19 pm
interesting, some of these notes on what you have written about, the north korean issue -- saying that he is -- it is a convenient thing for tokyo to have. >> very much so. the fact that north korea is so belligerent is a very big plus. both for president trump and prime minister abe. -- japan is u.s. even more important to the united states on the security side so it strengthens the bond. there have been six set of meetings between the president and the prime minister and 16 telephone calls. with regard to u.s.-japan to abe's, with regard relationship with south korea
9:20 pm
and domestic politics, including the revision of the constitution -- it really helps the prime minister. rishaad: you are from the center of american progress. has there been real american progress on this visit? japan, thevisit with prime minister is very happy. having spent nine hours with the president, playing golf, having four meals with him. on the economic side, the president has given the signal that he has gotten the japanese side to understand that on the trade and economic side, he expects a fair and free and reciprocal relationship. he sees the beginning of trying to remedy what he believes is
9:21 pm
the huge trade imbalance. up issue of arms sales came repeatedly, both privately and publicly, with the president. rishaad: please stay with us. we have more to discuss. marketswhen bloomberg return. right after this. ♪
9:22 pm
9:23 pm
rishaad: we are back with the conversation with our guests. thanks for his thing with us. you have been talking to china watchers before you came to tokyo and they are -- they brought some interesting perspectives on this visit and you've been able to draw some conclusions from them.
9:24 pm
what are they? >> with regard to economic deals, the kind of concessions from the five countries he is visiting, china is the centerpiece. china is the only place he is taking a whole group of american business leaders and he will announce deals. this is when he went -- when he -- americanh companies that trump can say he has been successful in opening the chinese market to cut deals and to create american jobs. that will be the centerpiece. with japan, it was more along the lines of confirming the security relationship and in the future, assuring japan will open up on things like beef and with regard to buying more arms from the united states. there is this bargain that is
9:25 pm
emerging and the primus to is going -- the prime minister is faced with an interesting situation. that there is more expectation on japan in terms of security. appreciates that pressure. arms sales, some hesitation because it can be hot -- costly for japan. it is going to be interesting to see how this plays out. rishaad: is a trade war , is itely, economic more inevitable with china? >> i think war may be too strong a word. there will be intense competition and some conflict with regard to specific areas.
9:26 pm
u.s. isthink the prepared for a trade war in that sense. skirmishes in various areas in the economy. haidi: the tech ceo's are not going with them in beijing. >> i expect privately, there will be quite a bit discussed about economic issues and conflicts. market access issues as well as intellectual property rights protection. on the public level, i do not expect there will be a lot of conflict because donald trump and american companies want to cut deals. the president believes it is possible to have him be cooperative when it comes to north korea. the high-priority is to do
9:27 pm
something about north korea. bits willing to moderate a when it comes to the economic side with china. rishaad: bloomberg markets continues. ♪
9:28 pm
9:29 pm
>> president trump is on his way to south korea after a japan visit that delivered no concrete results on fixing what he calls unfair trade. won no concessions in tokyo on the trade deficit. the two leaders did agree on a hard-line approach with north korea although no new measures were announced. the house ways and means committee begins considering legislation. it could increase the federal debt. legislation supporters say it
9:30 pm
makes the system fair. critics say it is smoke and mirrors. >> fundamentally, this is not tax reform. this is tax cutting and it is a rather indiscriminate nonstrategic kind of tax cutting that i think is likely to increase unfairness, likely to cheat the future, and is not likely to provide significant benefit in terms of economic growth. >> nissan says production is yet to resume after an official check on measures. cars are being churned out at five other plants that were temporarily shut down last month . similar scandals that subaru. -- scandals at subaru.
9:31 pm
is weighingnment selling 25-33% of its european arm to help reduce its debt. derailedue streak was because of a weaker box office. global news 24 hours a day powered by over 2700 journalists and analysts in more than 120 countries. i am yvonne man. this is bloomberg. haidi: the political power-play ,ut of soured -- saudi arabia those gains are being held and it is playing out when it comes to the equity sessions in asia. at itskei 225 looking highest since 1992. here in australia, levels we have not seen since the financial crisis.
9:32 pm
quite a bit of uncertainty when it comes to geopolitics, as we do have this presidential trip to asia. the thing is, quite a few companies are yet to report. let's check on the markets. fort could be more fuel this beast. check out this rally. 225.ikkei the yen is weakening once more, down about two tents of a percent. shares in hong kong are leading the charge in the region. the five-year-old bilateral
9:33 pm
trade deal that hangs over the talks, there will likely be a heavy focus on the auto industry as trump is seeking to push more american-made cars to be sold in south korea. ahead of his sitdown, we are seeing the korean won gaining ground. korean authorities may tolerate the appreciation while trump visits. it is the best-performing this quarter and it could retest key highs. it has been a line in the sand for authorities all year. korean carmakers will be in focus. tokyo, rising to a nine-year high after tripling.
9:34 pm
earnings still in focus in asia. rishaad: we have got president trump touching down in china on wednesday. he will be the first head of state to visit after the communist party congress. he has been called king xi. does it change anything? >> i think there is a contrast this time around. president trump is going in very much bogged down in his domestic agenda. plans are very much in the air. his ground division for the dconomy has not -- has grante
9:35 pm
vision for the economy has not gotten anywhere. look at the contrast in that in i's vision. quite a bit -- commentary on of how president trump is going in there looking for short-term deals. backdent xi can fizsit and take a much longer view. haidi: part of this is based on his rejuvenation of the chinese nation. playing up national pride. right.rely -- he canafford
9:36 pm
afford to give some concessions to mr. trump. afford to perhaps open up some parts of the economy and to give more all of branches. -- olive branches. he does not want to be seen as weakening his stance. the u.s. economy needs china as much as the chinese economy needs the u.s. he knows he is in the driver seat. he knows that china is on the path of ascendancy right now. is the key focus of this 11 day trip for president trump. wilbur ross has denied any wrongdoing over the investment
9:37 pm
in the london-based shipping company navigator holdings. lawmakers have called for an investigation after navigator was found to have done business with a russian company. francine lacqua spoke with the u.s. commerce secretary. ties with russian individuals under sanctions. prior to me joining, they entered into some arrangements. i had nothing to do with the negotiations, never met the people. whatsoeverthing wrong with navigator having a deal with them. , much has beenre made that it was not disclosed. it was. form 278,laces on my
9:38 pm
which is a public document. 24.1.4.2 as well as the office , ogovernment ethics website ge.gov. hindsight, there are allegations about ethics, creating a conflict of interest. should you have by day -- should you have divested this? >> we do not regulate shipping. that is why they let me retain shipping interest. >> would you welcome an investigation into this? >> investigate what? >> is there not an ethical question?
9:39 pm
>> nothing even improper. came to an independent decision and before i meet with ogecorporate party, the and the extent to which i can participate in conversations. was there anything in proper? there was nothing improper in the way we have handled meetings or in the investment. >> will you keep the stake? >> probably not. that is not because of this. >> talk to me about your upcoming trip to china. what is your president stance on
9:40 pm
dealing with china? >> we are hoping for some specific deliverables. we are leading a trade mission, 29 u.s. companies over there. we ought to come away with some tangible and large deals for them. tohaad: wilbur ross speaking francine lacqua. where oil is going and the upheaval in saudi arabia. this is bloomberg. ♪
9:41 pm
9:42 pm
haidi: this is bloomberg markets asia. trading near two-year highs, unprecedented
9:43 pm
crackdown on saudi arabian officials. let's welcome barnabas gan. anywayces moving up before this happened. did this give this more of a leg up? where did -- where does it go from here? do to theery much improving fundamentals. there is somewhat of a political upheaval in saudi arabia. from now until the end of the $60. above rishaad: this has huge implications for politics in saudi arabia, religion and saudi
9:44 pm
arabia. could be the biggest ipo in history. dismissesharge who his relatives so quickly. thesell treated are investors going to be? >> the higher oil prices, very much because of the upheaval and we see saudi arabia and higher oil prices. forward to the opec meeting later this month. higher oil prices and the crown meeting.to the opec it reinforces the view that there could be a three-month extension of the production
9:45 pm
cuts. , he couldal itself have more say in trying to dictate. haidi: you are saying, it is a power-play going on and it is a net positive when it comes to the oil markets. you have a split set of views as to whether this is political purging or whether this is a positive thing for international investors. it signals the next step for economic reform. >> i guess higher oil prices will push the stocks higher. some of the key questions, is the rally sustainable?
9:46 pm
we are a little bit cautious from now until the end of the year. we know there is still the risk of higher oil production. time for the other countries to come in and start to push production higher. if that happens, it could mean the rally could be short-lived. on that note, we are little bit cautious. meeting, iting opec has been priced in even before the political upheaval. if the markets are rallying because of the political upheaval, i'm even more cautious. more technical buying. haidi: how is the u.s. shale
9:47 pm
story looking to you? >> right now, there is no sign signs as to any increase in oil production. if you look -- it has been falling quite a bit in recent weeks. it is a very good leading indicator. to u.s.uld be some risk all production in the next couple of months or so. rishaad: stick your neck out. where will prices -- where will oil prices be in six months?
9:48 pm
ow.w from now until the end of the year, we expect $60. reduction cuts could be announced at the upcoming opec meeting. for 2018case scenario is a multiple growth story. with global growth getting traction, we expect oil to rally june 2018. disappoints, expected to correct very sharply. rishaad: thank you, barnabas gan , joining us from singapore. it is apple's biggest overseas market yet. it is a conundrum for the
9:49 pm
world's most valuable listed company. ♪
9:50 pm
9:51 pm
haidi: the offer was said to have attracted retail demand. china literature expects to make its trading debut thursday. rishaad: it moved most of its large cash reserves to the channel island after a 2013 irish taxon its practices. apple says it made every dollar it owed. apple is also looking to fund buybacks and dividends through bond sales. ofwas sitting on a fraction $270 billion in cash and market
9:52 pm
securities. the republican tax plan would charge companies 12% on overseas profit. this down from 35% if the money came home now. joining the company in an improved quarter, snapping six straight declined. analysts see it as a temporary uptick. peter has the story. what is going on exactly? peter: tim cook called out china on the earnings call last week. he talked about how apple is beginning a comeback and they have seen improving sales. china has been very important to apple's fortunes over the year, driving growth for a few years. apple was at one time the number one in the market but they lost to domestic competitors.
9:53 pm
it looks like with the iphone x coming out, apple has high hopes for this phone to help drive the come back in the all-important china market. there are a lot of competitive devices that are coming into the market. local rivals are coming up with their own high-end phones and there are a few things they have to their advantage. they are available at price points well below where apple is. haidi: it was a joke on the streets of beijing. if they really want the iphone -- jokes aside, it is crucial. china is the potential next super cycle when it comes to the iphone.
9:54 pm
>> it is. it is a very competitive market these days. huawei has been successful in grabbing market share. that has beenpany effective. xiaomi has come back a bit. they have been selling more phones than apple in china. tim cook and his comeback still have quite a ways to go. rishaad: it is also not just apple. suppliers are watching this very closely. peter: that is right. apple's supply chain stretches through asia, in particular. there are hundreds of other suppliers in china, korea, taiwan, and japan. they are counting on apple.
9:55 pm
many supply competing phones. foxconn works with xiaomi. samsung is the big competitor in korea. the supply chain will supply whichever company is getting the most consumer demand. rishaad: peter, have a great day. joining us from tokyo. the trials and tribulations facing apple. david english will be taking over the reins. we have some huge stories. >> a lot of it comes together at half past. you have the rba coming out with its decision. everybody thinks they are not going to do anything. donald trump is scheduled to land in south korea. he is currently in the air.
9:56 pm
i'm am not sure what the code is for air force one. we have hiltons global co coming on the show -- ceo coming on the show. look at australia, had a breakout. you have a lot of these big movers in hong kong. a lot coming up in the next hour. ♪ retail.
9:57 pm
9:58 pm
9:59 pm
under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.
10:00 pm
announcer: from our studios in new york city, this is charlie rose. host: we begin with politics and the special counsel's role in investigating the russian involvement in the last election. the focus is on paul manafort and richard gates. both pled not guilty. george papadopoulos pled guilty to lying to the fbi about his relationship with the russians. with me is a reporter with the new york times. let's do the timeline. ul

22 Views

info Stream Only

Uploaded by TV Archive on