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tv   Trending Business  Bloomberg  March 27, 2016 8:00pm-10:01pm EDT

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♪ yvonne: taking action, shinzo abe finalizing new measures to kickstart japan's economy. , not to promote the ceo son to the top job for seven and i. sharp once a deal as soon as possible as the hom hai board prepares to me. -- to meet. , standing in for
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angie lau. index futures pointing to modest yen,, but it is the weaker the dollar heading for the longest rally since january ahead of the u.s. jobs report later this week. thes head over to korea, kospi pretty much flat with the korean yuan seeing weakness today. closed,kets are australia, new zealand, and hong kong. let's head back to japan. looks set for a fresh round of economic stimulus. local reports say the plan to supplement the boj's efforts are a done deal with some minor details needing to be worked out. david has more. david: what will happen tomorrow
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is the existing budget is expected to become law. , shinzo abe ise expected to outline some details of this new deal. a lot of which is basically frontloading that existing budget. it opens up room this time next year for japan to introduce new public works projects. farm infrastructure, building facilities for trains, upgrading the ports to welcome large cruise ships, and trying to get ahead of inconsistent growth. ,ome other specific measures shopping vouchers and gift certificates, of 4% monthly wage increase for nursery school mon.ers per
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there has been growing public support for the government to step in and spend more. we heard last week that what japan needs is not more liquidity, what it needs his final demand. this was a poll taken by tv tokyo that showed an increase from february to march, 8%. political issue as well. big the zoo cut, if you will, is expected to be unveiled gdp reported in time for the g-7 summit. what about the plan to sales tax increase? that: he told parliament they are basically on tack to raise -- on track to raise the sales tax.
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said it is ae have bad idea to do so. of local reports in japan over the weekend saying that chances are that he is going to announce laying the sales tax by 1-2 years, and that announcement could come in time for the g-7 and after the gdp report. like what weems have heard is weighing on the prime minister. , japan's ipoapan poor, more6 has been than 24% have open below their offer price. haidi to take ahe look at this. ester investors have been in a
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funk, but let me backtrack. this is a story we are watching. japan ipo so far in 2016, the latest company to go public is a car dealership, opening below its offer price on its debut last week h. it certainly does not compare very favorably from previous years. if you look at the numbers in in 2014 the percentage, we had 22% of these offerings trading below their ipo price on , but we did015 8% have that stand out companies listing like the japan post-ipo. surged in the first two days of trading.
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that's not what we are seeing this year. mid-march,s of almost 30% of those offerings and below their ipo trading price. this is according to data from japan exchange. it's not a sector specific malaise. we had the car dealership, a mobile game maker, a biotech name also opening 2.1% below its offer price. part of this is to do with this decline in the broader equities market in japan. we had that terrible start to 2016, the topix had its worst start on record. that selloff so aggressively essentially, analysts saying investors could not free up the funding to buy into these ipos, hence these
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terrible numbers. yvonne: thank you. let's check other headlines. foxconn technologies flagship hai holds a meeting as negotiations over a rescue deal for sharp drag on. banks will sharks push back the deadline for a $4.5 billion in loans to help facilitate a deal. is hoping to reach a deal as soon as possible and will disclose news promptly when a decision is reached. shares of surging 6.4% in tokyo. chinese industrial profit snap a losing streak. the gains were led by oil processing, electric machinery, and food companies. groups postedtry a profit, but the industrial sector faces many difficulties. capedn of steel and the
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crusader have given warner bros. the best ever domestic opening, superman versus batman, don of justice, took $170 million in north american theaters, topping estimates. china was included, pushing global takings to $224 million, the first of 10 films planned by the end of the decade. loebist investor daniel has urged seven and i to avoid letting nepotism to determine the next ceo. what is third point saying now? already saying he is suffering from health problems, so investors are worried that the ceo will try to appoint his japan the next ceo of 711 and eventually of seven and i
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holdings. explained that the criteria used to determine the next ceo should be competence and the ability to run the company successfully, not family ties or preserving the suzuki family dynasty. , third point,ink should be a leading candidate? the current president of 711 japan, and they think he should be a leading candidate for the top post. they are worried instead that he will be demoted. when it comes to a business strategy, third point had some views, they think seven and i should read shrink and restructure businesses and focus on operating convenience stores, which generated 45% of its revenue in 2015. third point has already started to take action.
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loeb has spoken to other investors who shared their view about management and the business in japan. yvonne: what about corporate performance. b saying about that? and i holdings is his fifth investment in japan in the , so he isears dependent on what happens in seemsate japan, but loeb to be happy with what shinzo obvious doing, praising the prime minister for the flowing cash for investors. he says his company's goals are with shareholder interest and returns and engagement and japanese corporate culture that will eventually lead to japanese companies being more competitive in the global environment. yvonne: thank you.
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coming up, is the fed bark worse than its bite? mark matthews think so. we will hear from him after the short break. you're watching "first up". good morning. ♪
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>> it is a: 13 a.m. in hong kong , and these are the stories making headlines. the taliby faction of and says it carried out the bombing of an easter sunday party, 65 killed. it was aimeds specifically at the christian community. pakistan has announced three days of mourning and schools and businesses remain close. more than 300 wounded, and police say the number of dead is likely to rise. malaysia's former prime minister has stepped up his campaign against the current leader. he says the financial scandal means the country cannot wait
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two years for the next election. he was cleared by the attorney general of wrongdoing. he says the cash in his account came from political supporters in the gulf and most of it was paid back. nominal china have held talks in hanoi in the hope of easing tensions over disputed waters. the defense ministers met amid growing arguments about the oil and gas rich south china sea. two years ago, beijing moved a drilling rig into waters claimed by annoyed, sparking attacks on factories in vietnam. the two sides say they are determined to solve their differences in a peaceful way. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. yvonne: let's take a look at markets trading in the asia-pacific. japan and south korea trading on this monday easter holiday, but the nikkei 225 up 7/10 of 1%.
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--kospi up, but australia and new zealand still closed for easter today. let's look at the markets with mark matthews. he joins us now. great to see you. stocks have been pretty much zombie-like, very light volumes, the dollar weighing on stocks and currencies here. is that story going to continue this week? mark: i have a feeling it will. you are right to identify the dollar as one of the major barometers for global risk. the other one is oil. moved in the have other direction we would have wanted in the last week. we just have to watch them. the more the dollar goes up, the more pressure that puts on risk assets and more the oil price goes down. yvonne: the dollar going up
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given the hawkish comments we have heard from a range of fed officials. you are saying the bark is worse than the bite. what he you make of these comments? is it all talk? mark: we will find out in april. i suspect there is some talk. at keeping usrs on our toes, the federal reserve , and they want to be in control of the markets rather than the other way around, and they do that by constantly coming out with one thing than another thing, and so that is what they are doing. if you back it up two weeks ago, the statement they came out in janet yellen's q&a, they were shockingly dovish. people have come in and talk hawkish, but my sense is they will -- they are saying april is a live meeting, but i really
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doubt they will raise rates in april. yvonne: the markets seem to signal that as well. , an it comes to u.s. stocks sharp contraction in corporate and .5% year on year drop, the worst since the great recession. is this an economic warning signal to you? mark: no, i think that was very much to do with the energy sector. if you look at the reasons for that, drawdown in profits in the fourth quarter last year, there were other things, but it was the collapse in the earnings of the energy complex, so i don't think so. federalook at the reserve's survey of business activity and the empire state ,nd the philadelphia fed actually i think they are pmi, 54-55,f an ism
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which is up from 50 in february. i don't think things are that bad there. yvonne: with the dollar strength we are seeing emerging markets taking a dip. when it comes to china, we see the small caps inter-into a bull market last week. thisou call it that at point? or is it a dead cat bounce? mark: i wascan't -- interested that the hang seng index was unable to break its 100-day average. notmove in the dollar is really dramatic. it has been up for five consecutive days, but actually the cumulative increases are , so thell, barely 1%
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direction has changed, but the absolute change in the value of the dollar is still very small. i don't know. i wish i could give you a strong directional view on this week. i don't have one. we will have to watch the dollar and oil price. indexook at the hang seng and those european banks like ,eutsche bank and credit suisse their credit spreads are rising again. i'd since it could be a softer week. what you're looking for right now in terms of quality? mark: i never gravitated towards sectors as much as companies. i feel if the company is good, you'd like to own the best companies in every sector kind of thing, but i do think the oil price and commodities have essentially bottom.
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you would not want to not like oil. let's put it that way. the chances are higher of good stories coming out of the coodities and oil patch rather than bad stories over the next 12 months. the that takes you into emerging markets, because they correlate strongly with the commodities sector, and we all know they are deeply oversold and very undervalued. the price book ratio of emerging markets is about 1.1x. been that takes you into hong kong and singapore, which are also very cheap. hong kong is the cheaper. i told you the hang seng could not get above the 100-day moving average. i like hong kong stocks. yvonne: thank you so much. next, talks of bread is it -- brexit have weighed
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heavily, but maybe further to fall. that is coming up in your fx headlines. ♪
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>> welcome back. it is monday the 28th of march and these are your fx headlines. driven by dollar strength, falling. media reports suggesting the imf is putting pressure on china for more transparency on its currency intervention methods. 1% fore yuan fell almost the week against the dollar on friday. s sure yuan weekend -- on hore rishaad: is set to into the basket on october 1. the pound extending is declined, the biggest among g 10
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currencies. sterling down 2% against g 10 counterparts this year, prices suggesting that will fall further against every single over the next three months, the pounds losses extend beyond the chin -- the june 23 vote. the premium for options protecting against losses over contracts betting on games when it comes to every g 10 currency. the dollar has its work cut out for it to convince traders that its first weekly gain was not a fluke. a gauge of the u.s. come are and sete rose the most since november after fed reserve officials figured -- signaled interest rate increases may not be that far off. payrolls will help determine whether the greenback can sustain its rebound. fallen more than 4% since the end of january, u.s.y on speculation that
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policymakers will not be able to tighten policy as economic conditions worsen. let's take a look at how fx is doing. markets close, but still trading. a seventh day of declines when it comes to the japanese yen. this is driving gains across the equity space. we were down 4/10 of 1% on friday, finishing off the week at 113.07, already extending declines, still at that 113 handle. that is helping out exporters in particular, reaction to rumors of a budget overhaul and more fiscal stimulus coming out of the government in japan. the aussie dollar, expecting to see a little bounce given that we had an improvement in chinese industrial profits, snapping that seven-month losing streak is. we are seeing a bit more
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weakness today for the aussie dollar, trading at .70 497, down a 10th of 1%. streak ofen a losing five days for the aussie dollar after strength earlier this year. also, how the yuan is doing. on that pboccusing announcement in about an hour. we are seeing offshore holding steady at that 6.5 to handle. trading alongside south korean equities. at that at yvonne: time for a look at stories in asia. disastersa china's numbers, results from other oil
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giants will be closely watched on tuesday. the estimates aren't pretty. expected to announce a slump in profit of 40% for the full year 2015, the second straight year of declining net income. banks are expected to make their trading debuts on wednesday. the lenders were the first companies to attempt major hong kong ipos this year, with 2016 off to the slowest start for new listing since 2011. we'll get the official take on how the chinese economy is doing with the release of march manufacturing pmi data on friday, expecting an eighth month of contraction, 49.5 after the weakest in seven years. friday, a snapshot of japan inc.'s investment plans. its move tong negative interest rates has translated into growing business confidence despite gains in the yen.
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lots coming up in the next couple of days. coming up, business is not booming. the solar stock trading on the new -- only stock trading on the new myanmar exchange.
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yvonne: happy monday. it is a 30 and singapore. we are have an hour away from the trading there. you are watching "first up". shinzo abe preparing new stimulus. says it mayews include shopping vouchers and pay rises for public works projects. separately, announced he will delay the sales tax. daniel loeb has encouraged seven
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, i to avoid nepotism responding to speculation that the current ceo will name his son as chief executive. said the decision should not be based on family. he says the current president should be a leading candidate. the myanmar stock exchange entered its first week of business after one company sort soared by limit -- a s the daily limit. more companies are expected to join later this year, but foreign investors are barred from trading for the time being. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. trading in tokyo and seoul underway. here is the state of play. it is a bit of a lonely session in asia with just two markets trading. , honglia, new zealand
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kong, also off today. these two markets are trading, and looking good. nikkei 225 is up. is up by the same. the recovering rebound taking place. the kospi flatter. ,hen it comes to the nikkei 225 a seventh day of weakness for the japanese currency on the back of dollar strength. that is benefiting a number of exporter related names. some downside when it comes to the industrials, but few and far between. every sector and the japanese market in the green today. , mixed,regionally financials lower compared to the but in the sector, particular consumer goods and consumer services, telecoms
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seeing some strength. ,ome stocks we are watching reported a rumor plans that shinzo all day will be arrow tog another abenomics, shopping vouchers and fiscal stimulus, efforts to get the message consumption going again in japan. we are seeing that play out for a number of retail names. a double bounty for some of these exporter-consumer names. gainslso seeing strong across the rest of the exporter ,pace, mitsubishi up electronics and cosmetics also seeing upside. yvonne: thank you.
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india is the hottest market in the world for high-speed trades. high-speed account for 40% of volumes. authorities are now considering dampening things down. what is behind this? high-frequency transactions have become a dominant force, now 40% of total volume. what's happening is people are starting to pay attention to this. they have reduced the average transaction time from 300 milliseconds to six microseconds . having a closer look at the issues, critics are saying that sometimes these are high-speed trades, strategies disadvantaging regular
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investors, because sometimes the high-speed traders can see the orders put in. there are people pointing out be getting more the stockaders into market instead of focusing on fees from these high-speed traders. the last thing is the concern that their art not enough risk management systems in place for these high-speed trades. bse, there are some concerns about this. says they are doing a lot of high-frequency traits in comparison to the market. the national stock exchange is considering higher fees for traders who flood the market with unfilled orders. they say they want to welcome all traders. that these high-frequency traits
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have also brought benefits, smaller spreads and higher trading volumes. issues, aware of the but so far have not done anything about it. yvonne: we hear from the brokerages saying things need to cool down. what have the regulators done? >> they issued broad guidelines in 2012. in december, they said they were considering some restrictions on high-speed trades, but there hasn't been any steps in that direction. there is a lock in to prevent traders from canceling, also creating separate trades for micro trades, and a auction system that will take the edge off the faster speeds. that are the things possibly up for discussion, but so far no steps taken towards blunting this high-speed trade
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going on in india. yvonne: it is part of a natural fit. india has some of the world's biggest tech companies and engineering universities. thank you so much. let's take a look at what were following on the bloomberg. novartis order to hand over records, the whistleblower case wining andm of dining doctors so they would favor its cardiovascular drugs. washington wants details on what was provided at the events, who attended, and whether they took lace at all. the u.s. has exploded the size of the case. apple says it may not need to help the fbi unlock an iphone link to a case in new york and has asked a judge to delay the deadline for submissions.
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the company says if a third-party manages to access data from the san bernardino gunman's phone the same can happen in the new york case. apple says it will continue its privacy battle with the government. metosoft is said to have possible bidders for yahoo! who may seek the backing for the offer. sources tell bloomberg that the meetings were initiated by bidders and that microsoft is not committed to funding. microsoft has a partnership with yahoo! and told bidders that it is eager to continue the relationship. with microsoft, the company has apologized after its experiment with artificial intelligence took a turn for the worse. botntroduced a chat messaging platforms. users quickly found ways to exploit the program.
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in less than one day, she was tweeting holocaust denials, cancer, feminism with and backing donald trump the is on building a border wall. that's a look at some stories making headlines this morning. yvonne: myanmar is now officially open for business. the stock exchange is entering its first full trading week after a historic first session on friday. juliet has the story force. slim pickings out there with just one company listed. juliette: that is right. just one company listed on friday, first myanmar. it can see by the fact that rose 19% on the day of listing by the daily limit. that theretherefore is so much interest in a stock market in myanmar. it has been a long time coming. you are seeing pictures of the
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official opening. the idea of the stock exchange was first floated in the 1990's when officials met with brokerages from japan's institute, but then we had the financial crisis in the late 1990's, and that was it off, then military rule, and myanmar as an undeveloped financial system, so it has taken more than 20 years to get its own stock exchange, but there does seem to be quite a lot of interest in a stock market. you can see by the fact that first myanmar climbed by 19% on friday to that daily limit, more than 112,000 shares exchanging hands. other companies have applied for listing, financial firms, myanmar citizens bank, another company listing shortly before the end of the year. clvmis the so-called nations. you can see this is official imf
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purchasing capita power parity and current u.s. dollar prices. ,o doubt vietnam is in front represented by the orange line. cambodia is the blue line, but have a look at laos and myanmar. we are starting to see myanmar start to catch up in terms of per capita data, per capita spending per person. terms, 5000 164, so starting to see that there is a lot more purchasing power. -- 5001 hundred 64, so starting to see that there is a lot more purchasing power. the fact that we have two thirds of the population also in rural areas means there is a lot of room for development in these countries, so certainly myanmar perhaps getting back to the days pre-1960's when it was actually one of the richest of southeast nations, and the stock market
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will be trading in full this week. yvonne: thank you. topet more on all the days stories at our digital destination, bloomberg business, the best of bloomberg news, business week, television, and new digital content and one address. also on it has been really a month since investors started betting on a on a how sri lanka hopes to turn itself into a wi-fi paradise with the help of google. that is check it out. should china increase its currency flexibility? more from goldman sachs after the break. ♪
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>> it is 8:44 a.m. in hong kong. these are the stories making headlines. north korea has threatened a preemptive nuclear strike on the u.s., releasing a propaganda chance."itled "last
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it depicts a nuclear missile destroying washington. north korea has issued several threats and five missiles after being hit by tougher sanctions. the party of taiwan's outgoing president is elected the first female leader in its history. the chinese president congratulated her. she was the original candidate for january's presidential elections, but was cut due to low poll numbers. bernie sanders says he sees momentum in the race for the democratic residential nomination after sweeping three caucuses at the weekend. wins,s had landslide nehring hillary clinton's lead.
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the senator is pinning his hopes on upcoming primaries on the west coast. analysts said his path remains an uphill battle. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. economichina's rebalancing may be working according to new data from australia. let's go to paul allen in sydney. this china-driven commodities boom is winding down, all about that shift to consumption. what are some other austrian products that the chinese are picking up? my colleagues have been busy compiling a series of charts, beef demand and groping, sale of vitamins. tourism,e a look at there is something of a boom going on courtesy of china. million surpassing one
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and will soon overtake those arrivals from hong kong. chinese tourists arriving on chinese airlines, china's southern and china southern and chinese team, the main to sources, and they spend $5.7 billion, so big spenders as well. if we take a look at another chart, education, an influx of chinese students studying in australia. gainingsee the line steadily year on year, reaching 93,000 last year. universities love these students because they pay full fees. many also by apartments to live in, backed up by their wealthy parents back home. is aof these industries replacement for the void left by the mining boot, but encouraging to see some diversity in the austrian economy. yvonne: what about the dollar and chinese demand? how has that helped in terms of
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turning around services in australia? paul: the weaker dollar propelling these industries. services, a look at services plotted against mining, services used to be a dragon australia, subtracting .5 -- a drag on austrian economy, subtracting .5%. impact by the low australian dollar as well. we will look deeper into this issue of how the chinese rebalancing is affecting things here in australia. yvonne: look forward to that. inant to remind our viewers australia that markets are closed for easter monday. let's stay with china, growing worries about rising debt. stephen engle spoke to goldman
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if beijingsk him should lower its expectations. china is at least 6.5%, but according to our forecast that kind of growth is high, because it will imply a rapid increase in china's debt to gdp ratio. that's the highest in the developing world. >> what is tolerable and what is not? up the gdpl push ratio over 300%. some people say this to japan, is we know household wealth higher in china. that is quite dangerous. >> what are the biggest risks? you also have a bubble forming again and properties and currency risks. >> a lot of things are
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interrelated. that currency is facing downward pressure, but the problem is when you maintain exchange rate stability at a time when the exchange rate is weakening, you will have a much sharper decline in the future. at the same time, i think china households to buy property. that is also risky. i can give you some numbers. in hong kong, people talk about high property price because income ratio is 13 times, but in china almost 30 times. >> the policy to get the oversupply, excess inventories, down in the third and fourth tier cities is not working because the money is pouring into tier one cities. >> it will create new problems.
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you may see inventory go down, risinga cost of leverage among households. >> they are willing to make that risk because the other pillars of growth are crumbling. >> china is trying to strike a very difficult balance, short term slowdown or long-term slowdown. china wants to maintain short-term stability. >> how much do you think they , andd revalue -- devalue should it be a one off? >> it is a sensible option, but the government is not going for that. >> how much would be a sensible option? >> i think the exchange rate should go to seven. the next couple of years, another 10% to 20% devaluation. up, japaneseg
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gaming manufacture cut its profit forecast. retail investors are reacting when "first up" is back. stay with us. ♪
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the dollar headed for ane:
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gain. korea, a weaker yuan. thees up 3/10 of 1% on kospi. are pointing to a higher open today. welcome to stock exchange. trading underway in asia. how are we doing today? plan and produce dvds. falling 3%. >> keep talking. >> they cut their full-year outlook. i'm waiting to see what happens.
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>> if we had played this game five minutes ago, i would have one. a semiconductor company, profit rose 29%'s, $2.9 billion. i came second. , they cut their profit forecast 11%. i'm guessing the bad news has been priced in. your point, there you go. >> it is a wrap. >> thank goodness. >> more humble bragging. >> things changed by the second now. then trading vines today.
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big moves with a small amount of investors. are you confident for the rest of the week? >> there you go. there is this reason to believe otherwise. we could bottle the confidence and sell it on the stock exchange. >> i'm on the market for underwriters if any bankers are listening. >> david does take it. close one. that is the verdict from the stock exchange. our reporters picks are based on news events. that is it for "first up". "trending business" is next. pmi,ad: we look at china, looking at that one. that is out on friday. there's no reform happening in
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china, nor any meaningful financial reform taking place, saying we were promised more. i'll be talking to him and an hour or so. the embattled prime minister of malaysia visiting our bureau campaign being led after months of this funding scandal, trying to bring down his support. , looking at that and more. "trending business" for the next two hours. ♪
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rishaad: it is monday the 28th of march. i am rishaad salamat and this is "trending business". ♪ rishaad: heading to tokyo, kuala lumpur, and sydney. taking action, shinzo abe preparing more stimulus to kickstart japan's economy. reports suggest he makes an announcement tomorrow. the yen weakening, the longest streak of decline since october, push down by news that the u.s. is growing faster than thought. facebook's false alarm, the
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safety check feature kicking in, but there was a hitch. know what you think of our top stories. follow me at twitter @rishaadtv, use @rishaadtv. -- use #trendingbusiness. thailand and malaysia coming online. thei: a quiet start to trading week, markets coming back online from good friday, but others still on holiday. new zealand, australia, and hong kong. all still on holidays. southeast asia joining the fray, weakness coming through from malaysia. it's pretty flat at the moment. strong gains from the japanese markets. , more fiscal stimulus , the announcement of further measures to boost mastic -- to
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boost domestic consumption. economy fairly stagnant so far, but seeing a substantially straightn, a seventh day of weakness when it comes to the japanese currency, largely on u.s. dollar strength. x up by 8%. , theghtly weaker yuan kospi extending gains. a bounce in oil prices on u.s. rig count, falling, so the biggest jump for wti and about a week, up 1% in the asian session. brent up by .5%. the yen driving a number of exporters around the region. adding to that story, chinese
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industrial profits coming out with a surprise upside number, so that driving the regional positive sentiment in a holiday-thin, low-point trading day. japan looking set for a fresh round of economic stimulus. they will provide a first glimpse as early as tomorrow. here's david with a look. david: perhaps a teaser. we could be looking at some details of japan's new deal as early as this time tuesday when the current budget, passed by the house, gets passed into law. ,ccording to this news report shinzo abe expected to announce some details of this package, a press conference likely, including the announcement that japan will be frontloading the budget. forwardy do bring
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spending on some public works room nextthis creates year for new projects to be put into place and possibly funded by an additional budget, which throughaybe pushes towards the end of summer. apart from infrastructure spending, we could be looking at wage hikes for nursery school , anders and a 4% increase vouchers. , gift certificates on top of cash -- gift certificates on top of cash. there is an eight percentage point increase from february into march, a majority here now supporting more government spending. tomorrow,ls will be
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but the details that do matter will be announced in may, including the size of the package, which it highest priority, and how the government increase scheduled tax for 2017. a lot of people are saying they should not do it. looking at this chart tells you why. the big dip was when they rails -- raise the sales tax in 2008. if any of these local reports are anything to go by, shinzo abe seen to be pushing that back 1-2 years. this is after they consider the first quarter gdp reports and in time for the g-7 summit. rishaad: more detailed look at that story later in the show. tweet this your thoughts at @rishaadtv, include #trendingbusiness. daniel loeb is urging seven & i
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to avoid letting nepotism decide its chief executive. what's the understanding of the secession plan? has issued a letter to seven & i raising concerns about secession planning. you have a ceo who is 83 years old, and according to the letter that mr. loeb has sent to seven & i, raising concerns with health concerns and the seo naming a new head of 711 japan the leading candidate for the next ceo. instead, he may be demoted according to loeb and a new executive put into group suzuki's son.
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lays out his concerns with that state of play and says he has several investors in seven & i who agree with his views. rishaad: you saw the link with abenomics, how? invokes abenomics directly in his letter, and this is not the first time. in august, wheaton he announced a position in suzuki through third point, he praised shinzo abe and loud at him -- and without it in this letter dated sunday, freshly sent to seven & i's board, loeb says his goals are consistent with abenomics and governance focused on shareholder returns and making companies more competitive. he emphasizes that essentially
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positioning for your son to be the next ceo instead of promoting the most competent , so he is the wrong move is urging management to reconsider and the board to reconsider this plan. rishaad: i think it goes further than this. daniel loeb is urging the board to make other changes, isn't he? >> he is. he wants the company to focus on its core competency, which is convenience stores. that was 45% of the revenue for the 2015 fiscal year, so he's urging the vested chairs of other units and restructuring of others -- urging the vested chairs urging the restructuring of several companies. that loebr of moves is urging the company to make to
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improve profitability and returns. rishaad: let's have a look at other stories we are watching. , he keeps on japan going, a saga. we have the details on that and some other ones. a saga that has been going on for over a month, sharp and foxconn saying they are pushing to close that deal that has been held up by disagreement. will hold a it board meeting on wednesday as scheduled, where it could discuss the deal. sources said sharks banks are ready to push back the deadline for the $4.5 billion -- sharp 's banks are ready to push back the deadline for the $4.5 billion. that would give sharp more time to reach a renegotiated deal.
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sharp with the banks is aiming for a final proposal. 2016, not turning out to be the best for japan's ipo market. quarter of debutantes have opened below their offer price, and that has been compounded by the stock rout at the start of the year. at of 21 ipo's below offering price in 2016, compared to only eight of 98 for the whole of 2015. it comes as a rout in japanese equities sent the benchmark tpoi x to the worst year on record. this weighs on investor's ability to free up funding to buy new offerings. at 204 ino peaked 2000 during the tech bubble, and then slumped to 19 in 2009 after the global financial crisis. they have been rising steadily ever since. analysts say you can't blame it all on the market route.
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-- market route. beenge of the dollar has climbing for the seventh day, the longest winning streak since january. this is the head of u.s. employment data that could back speculation that the economy is strong enough to handle higher interest rates. the greenback remained stronger against most of its major counterparts following its biggest weekly gain since november. it is now rising for a seven today against the yen amid bets that u.s. payroll data on friday will persuade authorities to widened policy divergence with japan. march jobs report's forecasted to show a gain of 200-8000 jobs. 800,000xpecting -- 2000 -- 200-8000 looking at the indian cricketer tournament in a financial league of its own. it is a great read at
9:12 pm coming up, myanmar stocks trading on the new stock exchange. we have a look at the response. right after the short break, bio techs here to discuss market action and more. andnding business" returns two. ♪
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rishaad: you are back with "trending business". japanese equities on the ol up. -- on the up. let's start off with what happened this year. you are writing that we were at the precipice, facing armageddon but took a step back. >> i would talk later about the volatility aspects, but let's go
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back to mid february when it seemed the central banks were out of everything they could be doing. deutsche bank was seen on the verge, and everything looked dire. fast-forward a couple of weeks, now 10% higher. rishaad: what changed. thing it a be a sentiment , that people overreacted to begin with? nobody can find a clear catalyst except for the fact that everything seemed to be turning out all right. rishaad: people took a step back and said were not going to -- in a handbasket. >> that's where the volatility aspects are interesting. if you look at august, volatility indicators, popped all the way up. last january, february, far less of an effect. that then behind it is
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overall positioning of investors in volatility related products was somewhat negative in august, so people had to buy back, and the net small positive in january, so many people were expecting it. if you don't see a big ratcheting up in volatility, there is not the level of inherent panic you would have seen in august. maybe -- rishaad: is there an inherent distrust by western investors now? >> everybody is very negative if you look at the rhetoric. u.s., you seehe people very negative about the prospects of china. reasons that the bond markets are looking cheap. rishaad: they are just shy of 10 times earnings, 9.8. they are historically cheap.
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why do we still have this huge diversions, this premium of asia ? that, butwould expect it just got started. a could be on one side general lack of trust, but also some difficulties in the market on the chinese side of the -- sellinge showing short is difficult. peoplehere is a lack of selling on the chinese side. that is maybe a level of sophistication. management,n asset you own a huge amount of a shares. to's move abenomicsou making of
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, what is priced into the topix? >> japan is interesting. which likensrticle it to a mississippi bubble, fueled by monetary expansion value. i don't take a directional bet on the market itself, but we do have positions in volatility. what you see in japan is that kuroda does all the heavy lifting. abe just -- he breaks it. what's the difference between japan and greece? -- your metrics start to become ugly. rishaad: thank you very much
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indeed for joining us. true partner capital. >> these of the stories making headlines around the world. a breakaway faction of the talib and says it carried out the bombing of an easter sunday party in pakistan, 65 killed. the group says it was aimed specifically at the christian community. pakistan has announced three days of mourning, and schools and businesses will remain closed. 300 wounded and police say the number of dead is likely to rise. malaysia's former prime minister has stepped up his campaign against the current leader. he says the financial scandal means theg him country cannot wait to bring years for the next election. he was cleared by the attorney general over wrongdoing. vietnam and china have held talks in hanoi in the hope of
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easing tensions over disputed waters. the defense ministers met amid arguments about the south china sea. two years ago, beijing moved to drilling break into waters claimed by hanoi, sparking conflicts. the two sides say they are determined to solve their differences in a peaceful way. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. right, coming up, china's shift towards consumption. more when "trending business" returns. ♪
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rishaad: the head of the rockefeller fund management company says china is overblown. about china's growth targets. 6.5% economic growth, by any
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absolute international measure, that is robust economic growth. certainly from the high of above-average levels the chinese experienced for many years, but still quite substantial. his thewatch it sustainability growing -- going forward. they have a new five-year plan that offers economic and other reforms. we and other investors will be watching the implementation of those, but the overall thrust from a conceptual and policy standpoint is very much in the right direction. >> you see an opportunity for increasing investment in china? >> sure.
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there are always opportunities to invest in china. the world arend looking for investment opportunities in china, if for no other reason than the market is so vast. it is the second largest economy in the world, largest population center in the world, and while it has experienced tremendous growth, there is runway ahead. if you pick any sector, it's hard to see any sector that wouldn't be ripe for external investment in partnership with or on the sole basis by a u.s. company or any other company. concerns?n can somebod assure ourselves of transparency, fairness, level playing field treatment, when it comes to making investments in a particular economy. i'm talking about direct
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investment. when it comes to the capital markets, we at rockefeller are investors in the international capital markets. if the financials are transparent, a fair amount of liquidity in the shares, we will look at the shares of a chinese company just like we would eight u.s. are japanese company, based on the economic merits of the business as we perceive it. china's economic rebalancing may be working according to data from australia. a drivena commodity boom is winding down, but other demand is picking up. paul: this is a theme we will be's flooring -- we will be exploring. we've seen evidence and the growth for demand for beef,
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milk, and vitamins. example,ism for chinese rivals australia, a record for the first time in 2015, and it won't be long before they surpass those arriving from hong kong. as well, $5.7ge billion in 2014. chart,look at a second student enrollment, climbing steadily gear on year, finally reaching 93,000 this year. universities like them because they pay full fees. neither of these things are a replacement for the void left by the end of the mining investment boom, but the government and reserve bank will be encouraged to see diversity of emerging in the australian economy, and both of these passed along by a weaker or strain dollar. -- a weaker australian dollar. the former malaysian
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leaders stepping up his campaign to oust the current prime minister. we had to kuala lumpur and get the details on that after the short break. ♪
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look at our top stories , shares on the up and tokyo, the seven straight day of gains , raisinghe yen expectations the fed may hike interest rates as soon as next month. the u.s. expanded faster than anticipated, chinese industrial profits snapping a losing trade. preparing new stimulus to shore up the japanese economy. the plan may include pay rises for public works projects and'
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shopping coupons. delay to thatce a next hike in the sales tax in may. had fudge manager daniel loeb urging the parent of 7-eleven to avoid nepotism. in seven &vestments i. speculation that the current ceo will name his son as chief executive. company's current president should be a leading candidate. trading in hong kong, easter monday, but trading in shanghai. i pretty -- a pretty thin session, but a lot of conviction coming through from japanese markets on account of the lower yen.
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shanghaio seeing opening to the upside, 3/10 of 1%, positive industrial profits number coming through, snapping a seven-month losing streak. a lot of stuff happening at the end of this week, nonfarm payrolls, determining whether the dollar strength story has further to go. as well as industrial data out of japan. were seeing some good gains from singapore, in particular energy names, oil up. taking a look, and upside close into the indian
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market, renewal bowls in india. today, downoutside 30% over the past year. some other movers in the asian session. japanese retailers and consumer names doing well. where expecting further fiscal stimulus and measures to get domestic consumers spending again in japan. to 5%,ng gains, up close j. front retailing up by 3%, asahi breweries seeing a positive session as well. dayaker yen, seven straight , dollar strength, but we are seeing upside for exporters in terms of that projected positive bond up for their repatriated earnings. up,eido up, pioneer
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mitsubishi motors one of the winners up by 1%. one of our top stories, japan set for a fresh round of economic stimulus. why is shinzo abe said to be thinking of this new package? >> good morning. the economy here is feeling the headwinds from a slowing global economy, partly consumption is weak, the yen the strengthening, so japan needs to do something and the bank of japan is at the limits of what it can do, so the government is bringing out additional spending and measures in the realm of what it can do. what do the thing is, we know of the details? the actual 2016 budget from
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april will be announced, and finalized in parliament tomorrow. it is expected that's and's or of the will talk to the public and give a press briefing on that, and he may give some indication of the kind of stimulus they are looking at, vouchers for families, investment infrastructure, may be pay increase for nursery school workers, who are very poorly paid. we have to remember that japan is a hugely indebted nation, so there are limits as to what it can do. some lawmakers are saying ¥5 trillion, the scale of the type of budget that is needed. there is politics involved, i'm sure. the government meeting to hold an election later this year for the upper house of parliament. how does that figure into thinking? >> politics is playing a big part. there is speculation the
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government may hold a double election in july, the upper house expected in july, but shinzo abe, speculation he make call a double election for the upper house in lower house, giving him moments complete control of both houses. so a little extra spending, people are hurting from higher prices, but not higher wages, so that is good in an election year. rishaad: thank you very much indeed. joining us from tokyo. let's have a look at some other stories. apple says it may not need to help the fbi unlock an iphone linked to a drug case in new york and asked the judge to delay the deadline. partiesany says third able to access data from the san bernardino case, and the same could happen in the new york case, but if it fails, apple will continue its privacy battle with the government.
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backing fory seek ando!, initiated by bidders microsoft is not committed to funding. it isoft told bidders eager to continue the relationship with yahoo! whoever owns the company. order to hand over the records of 80,000 so-called speaker events. accusinggovernment novartis of wining and dining doctors. washington wants details on what material was provided at the events, who attended them, and whether they took place at all. novartis says the u.s. has exploded the size of the case. officially open for business, at least the stock exchange is, entering its first full trading week after a historic first session on friday. there is only one equity listed. >> that is right.
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just one company started trading on friday, but what historic day for myanmar. it has been more than 20 years in the making, an idea of a stock market first loaded in early 1990's, then the asian financial crisis put a halt to that. we also had military government rule and the fact that myanmar is an underdeveloped financial system. the first doc that listed, you can see the opening pictures was first myanmar, an investment company. debut, a very solid rising 19% are the daily limit to 31,000. there were 113,000 shares exchanging hands. that gives you an indication of how much demand there is for a stock market in myanmar. another group of companies are due to list by the end of the year, financial firms including
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myanmar citizens bank, have been approved for listing. no foreign investors can get into the myanmar stock market, but that could change when we see the laws passed by the new government. , this ish noting showing that myanmar is very much and high gear when it comes to development of its economy. this is imf dated showcasing the per capita income of the four major southeast asian nations, cambodia, laos, vietnam, and myanmar. the at non-represented by the orange line in front, $6,000 in per capita income. we are seeing laos is close behind, but look at myanmar, the white line, really closing in on the purple line of laos. in fact, per capita income is $5,164, so not far off at
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$6,000 mark we are seeing in vietnam. the fact that there is so much development and myanmar, two thirds of the population living in rural areas, showcasing a lot more room for development, but the per capita spending, people will be able to invest into the stock market and really have a chance to grassroots showcase myanmar's economic move forward. cambodia their lagging behind on the blue line, but very much a .trong rise in per capita data rishaad: thank you very much. critics of the malaysian prime minister stepping up to remove him from power, rolling out a campaign called save malaysia. let's get more from our kuala
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lumpur bureau chief. what's new about this particular campaign? mahathir mohamad led opposition leaders in a new campaign to get najib razak to step down. they had the message that najib razak has to go now. they will go across the country from city to city collecting signatures by the end of this year. at the moment, about 100,000, so still a ways to go. rishaad: this group is a fairly motley bunch, many of them were imprisoned by mahathir mohamad, so how can this alliance last? >> definitely. it is strange. allies inow temporary
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a bid to topple najib razak. they just want to bring him down as prime minister. havee moment, they don't any candidates to replace najib razak. they will decide on who replaces him later. they are probably not going to agree who will replace najib razak if they managed to get him out. rishaad: watch this space. thank you so much. some of the look at data that could influence the markets this week. do stay with us. ♪
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.> it is 9:43 a.m. in hong kong
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these of the stories making headlines. north korea has threatened a preemptive nuclear strike against the u.s.. north korea has issued threats and fired missiles into the sea after being hit by tougher sanctions. the party of taiwan's outgoing the firsthas selected female leader in its 104 year history. president xi jinping congratulated her, saying he hopes she will continue to support independence for taiwan. bernie sanders sees the momentum
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in the race for the democratic presidential nomination after sweeping three caucuses. landslide wins nearing hurry clinton's narrowing hillary clinton's lead. tolysts say the quest receive the nomination remains an uphill battle. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. let's have a look at some of the stories watching in asia over the next five days, petro china disasters numbers, other oil giant on tuesday, estimates not looking pretty. expected to announce a slump and profit for 40%, the second straight year of declines. tension -- tianjin
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ipo this week.o china, the latest official take on how the chinese economy is doing. many indices on friday, economists expect an eight month of contraction. weakest iner the seven years. on friday, snapshot of japan inc.'s investment plan. ratesj hopes negative translate into confidence despite the yen and the slowdown in china. our next guest says china's growth will continue to remain weak. he joins us now from singapore. thank you for joining us. c., where expecting
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shinzo be to come out with abe to comeshinzo out with stimulus measures, and you think that package will work? i would not be surprised to see bits and pieces rather than something -- some huge a sweeping measures that would make everyone set up and notice. the problem is that so minutes -- so much has been thrown at this economy, and even though we know part of abenomics was to push to structural reform, i that we will see anything really makes the market that excited. is safe to say that the markets will be underwhelmed by what we see tomorrow. that still keeps that inevitable
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pressure of monetary policy to do the heavy lifting, and that means the boj is forced down this path and do what ever it possibly can, including experiencing with negative interest rate to help growth. yearad: it is an election for the upper house, so he has to keep his powder dry to some extent and do more controversial structural reforms afterwards. what is your view? david: that is the problem. the things that excite us are the more difficult things to do. for example, to dramatically increase available day care to enable more women to be able to go back to work, raising the participation rate, having a major impact given the gap that there is in japan. other things, shorter-term at thes, may help, but end of the day, nothing is going to change the fact that the
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pressure is on monetary policy rather than fiscal stimulus of any kind. rishaad: one of the problems is the economy is not getting any ,ailwinds from a global economy which is firing on all cylinders. china, the slowdown there, for example. even with this target of minimal growth of 6.5% that that would not be enough to really engender investor confidence. why do you say that? david: that's what they managed to do last year, six point and rate wasand that run not enough to make the market happy. forecasts,t our about 6.8% growth this year, the difference is that the parts of the economy that people are to gog at will continue against that number and to look like the numbers that are diverting with what people are saying from indicators.
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a few good examples would be rail freight or electricity consumption, where they are dominated by industries in a structural decline. they are not the big growth drivers in china anymore, and that will not change. even with the growth rate better, we won't necessarily be able to say the markets will stop worrying about the weakness underlying china's growth if it continues to look at the old indicators that made up the index that was from 2007. we need to look at the services indicator, a new proxy for services growth in china, telling us that were growing at 8% today. rishaad: also promising and vowing that the yuan would not be devalued and they would not devalued to boost exports. do you think that is a hollow promise? david: i would be shocked if we were to see at dramatic weakening of the renminbi anytime soon.
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markets have been burdened by trying to position for that. implied options volatility did get dramatic earlier in the year, and part of the problems is that there is a misinterpretation of what china wants. have been communication problems, but they are dealing with it. the main thing they do to help growth is to stabilize expectations on the currency and get rid of this expected depreciation, because that is hurting them. as outflows continue, that has been a key source of having to act as stabilized the domestic money supply, causing a bigger headache for driving growth. china accounts for a world growth of one third, so how can it be leaning on the rest of the world to devalue its currency to boost growth really to us feels like an nonstarter, and that's before you get on to the idea that the renminbi were to move dramatically, everybody would overreact to the exchange rate
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and china might end up going up, so there's multiple reasons why we don't see any good case for a devaluation anytime soon from china. rishaad: thanks, david. break. to take a facebook saying sorry after its safety check tools part concerning confusion around the world. ♪
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safety: facebook and check feature was rolled out after sunday's deadly bomb attack in pakistan. ,he system suffered a glitch alerts sent to london and los angeles. what is facebook saying about this? >> facebook has apologized and said they resolved the issue. was helpful toit
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those in the area of the bomb attack. many people not affected received a notification. they said this bug is counter to our intent, according to facebook. facebook thought they were in the vicinity when they clearly warrant. twitter people took to to make comments about it, some saying that they were alerted to a danger they did not know about. the safety check was rolled out in 2014, and this is the eighth has initiatedbook it. usersok says 950 million received notifications last year. usedso says it has been for natural disasters. rishaad: facebook originally had this feature for when there is a
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natural disaster, but rolled it out after the paris attacks. >> that's right. decisionse its controversial because users are asking why they are activating it for some attacks and not others. it has become quite controversial. facebook has called the feature a work in progress. it was used in brussels for example, that people are saying you did not use it for suicide attacks in the middle east. is saying that it still needs to look at how it functions. rishaad: thank you. we will have a look at the man of steel, giving warner bros. its best domestic opening. --erman versus doubt been batman, 170 million dollars, slightly ahead of a estimates.
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of 10 d.c.irst comics superhero films land by the end of the decade. ♪
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♪ rishaad: it is monday, march the 28th. i'm rishaad salamat, and this is "trending business." ♪ rishaad: we are going to be live in tokyo, kuala lumpur, and not by. the yen weakening for the seventh day, but a lot of october.itline since has been pushed down by news that the u.s. dollar is growing faster than thought. deal from the new
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shinzo abe could be announced tuesday. the latest leaders setting up the campaign against the for current -- the current prime minister. today's top stories, follow me on twitter. on i look at what is going in the trading day. monday. here is heidi. heidi: things are notable winter -- winners on this easter holiday. a truncated session. new zealand, australia and hong day.have another southeast asia, driving the rest of the region early touchdown. jakarta, opening down. said, strong gains from


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