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tv   Trending Business  Bloomberg  February 2, 2016 9:00pm-10:01pm EST

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not wanting to do with it, and nintendo with a super mario gaming debut. it will be the biggest shakeup since the 1970's. for our top stories, follow us on twitter. and i am at rishaadtv. it has a look at what else is going on, and here he is. i will give you an update, the best performer today , year-to-date in the asia-pacific, which i guess that the glassu really is has full. -- half full. here is what is happening today. obviously, a complete turnaround from what we saw on monday, with broader risk aversion. have a look at the nikkei, up
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23%. that is the biggest single-day all ofthis index, going the way back to what happened in the summer. it has a calming effect, if you will, from the boj. yields are on the way down. into when it gets back safe haven, like the yen, six basis points, and why not? it is better than losing money. a lot of these forecasters, if they are correct, that could be 80 quite soon. as for the best-performing market in asia this year, down losses of of 1%, so just about 1% from the start of january. looking back, the nikkei two to five down, the hang seng down over 3%, and let me break this down for you. long story short, every single isck on the hang seng index
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falling. , that beingucers said, let me give you an update. this is the ticker. -- it is right here not working. ok. ok. there we go. that should be the biggest drop in just over four years here. there is news here. with thisightly down report from bloomberg. sources have told bloomberg that china is way more measures to plug the different holes that people used to get their money out of china, and one of those buying overseas interests, and front and center one of the biggest insurers if not the biggest in hong kong, and we saw a spike from mainland china with the insurance product in hong kong since september of last year, a big source of revenue there.
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a bright spot though, the silver lining, at least, is it is off behind of the day. we were off as much as 10%. 1/5 ofntributes about the decline we are seeing in hong kong at the moment. all yours. rishaad: let's take a look. huge. sherry: yes, they say china is nearing an agreement to buy a swiss pesticide maker for nearly $43 billion. the deal could be released once they release earnings. they are said to have offered a premium to the last close. transformould help into the biggest supplier of pesticides and agrochemicals.
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ae state-backed company is on buying spree, boosted by xi jinping's efforts to maintain self-sufficiency. they are consuming more grain intensive meat, and more farmland is being converted to housing and golf courses. and over in japan, nomura is plunging the most in more than four years after posting and 49% drop in third-quarter profit. the company was dragged down by its money-losing business outside japan and set and earnings goal for overseas operations that will be reached later than initially targeted. net income declined to $294 million in the three months ended december, and fees slumped. to stem losses overseas has cast doubts on his strategy of expanding and company such as the u.s. at a time when global market volatility is rising. nomura has retained its global
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ambitions despite standard chartered pulling back. yahoo! says it is exploring strategic alternatives and giving in to demands of shareholders displeased. the company said it is cutting about 15% of its staff, existing product lines, focusing resources to increasing engagement with users. activists have an calling for leadership changes war for an outright sale of the yahoo! web unit. last you, marissa mayer abandoned a plan to spin off items to shareholders and said she would consider a reverse spin off. this heightened criticism of her strategy. analystsprofit exceed estimates, the yahoo! stock has slumped more than 30% in the past year. i will leave it there for now.
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rishaad: yvonne man is at a conference with our next guest. : yes, we are joined by the intonation finance minister joining us today, and i want to thank you for joining us, finance minister. we have to start off with gdp, expected to slow last year, expected to be below 5%. we continue to see exports driven down by oil, but we do see one bright spot in the currency among emerging markets right now. boost you see ways to growth this year? >> yes. right year -- last year, our growth was slowing down probably to around 4.8%, but at least last year, we can see that
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despite these slowing down of our exports, we still have, you know, a good and stable growth from household consumption, although not so much bright but at least investment growth is also promising, so this year in 2016, supported by good monetary policy from our central bank, we hope that we can find another source of growth with a focus on investment. that is why from the middle of 2015, the government is emphasizing on improving the to cut items to make sure more comes to indonesia, and on the other side, we are still trying to spend more from the government to do the capital expenditure in order to boost investment as well as the growth. yvonne: you are talking about
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spending and infrastructure. how much do you think that will add to gdp? and what about delays in some of the projects, such as the high-speed rail and the power station? our project in general has been performing much better in terms of finalizing and progressing the project itself through the previous period, and last year, for example, we can .ee 45% increase this year, of course, aside from -- not just the infrastructure, project to spin up the as well as from a sector. we are trying to bring more private sector involvement in. projects, there are that might have experienced delay or some problems, but in
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general, there are more projects compared to the very few problematic projects. yvonne: we have seen such a volatile market, but the currency has been on this rally since the fed rate hike. see at strengthening more? we are near 13,700, and i think back when we spoke to you, you said that was a fair value. >> yes, below inspected around 3.55%ich is last year, then the central bank has the room to cut the policy and by cutting 25 basis points, so i think it is a sign that our economic growth is trying to catch up, you know? and then on the other side, of course we are still maintaining stability. although we already see some growth, weeeding up
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still put the emphasis on the although itecause has happened in december, the fed rate hike, it may happen again sometime this year, but we already see part of the, you know, the hysteria about the fed rate hike before, so that is why i think the currency has been well performing, because then during the hike in december, everything was ok. there was not much problem with that, so in 2016 come we expect the currency to be quite strong thatrobably still around rate, but, of course, it depends on the situation. fact --how much in
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impact are you going to be seeing in 2016? how have you factored that in? we have some kind of markup from 2013. i think the market has priced in the possibility of the fed rate than the real hike that happened in december. it means the stability in the , andt might still be there although there might be another hike, but looking at what is happening in the u.s., for i cannot makeugh any good prediction, but at least they are still worried about the sustainability of the recovery, so they might still need time to do another hike. even on: we have seen tax revenues in indonesia have fallen the low target, and you have tax amnesty laws coming out
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this year. see them bring offshore funds back to indonesia? happening?that what signals do you see there? >> last year, tax revenues were at a new record because non-island guests -- the revenue breaking the 1000 mark. , despite the slowing down of the economy in 2015. it means the tax potential is there, and you know that our tax ratio is 11%. still so much is room to improve. yvonne: is that not the problem of tax evasion though? low becauseion is there is so much tax evasion, so as a result, there are a lot of
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money residing somewhere outside and it is quite clear. i'll ratio is close to 100% in most of the banks in indonesia, but elsewhere, it is only 50%. -- the thee problem community, the problem is the supply after the liquidity is not because the money staying in indonesia. it is staying outside, and it happens with our exports. they used to do the export area we had a good statistic of export, a good statistic of growth, but the money is still not here. and to answer your question about bringing the money back to indonesia, in 2008, globally, they had the information implemented all over the world. that means, according to the
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secretary-general, nowhere to hide. so if you have the money or assets unreported to our tax authority, then you have to the normalt but with tax rate, which now is 25%. it is just money for the tycoons. so it is better for them to participate in tax amnesty, depends on rate their intention to bring the money back or just declaring, so the area will be much lower than the 25%, so it is the best time in earth to bring the money back to indonesia after declaring your assets somewhere in the global. yvonne: thank you. i appreciate your insights, and let's hope things look better for indonesia in 2016. thank you very much, finance minister, and i will send it
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back to you from the conference in asia. sending it back to you, plenty more to come. show, a look at the maneuvering going on and how it could signal big changes to come. cause a has been told there is a problem in its culture. and takata has been told there is a problem in its culture. that is when "trending business" returns. ♪
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anchor: stories making headlines around the world. moving towards a compromise. two of talks ended a proposal before a summit later this month. wanting to be more amenable to changes.
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as soon asnow be june. north korea has told the united nations said it plans to launch a satellite, possibly within the next two weeks. the u.s. says that validates the need for more sanctions following nuclear tests. pyongyang says the satellite is for earth observation and will operate for about four years. and tens of thousands of people were stranded in southern china after the lunar new year about 50,000 people forced to wait outside. airport wasat the closed. the spring festival is expected to see nearly 3 billion this year, most of them around the start of the year of the monkey. 150 bureaussts with around the world, this is
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bloomberg news. i am rosalind chin. takata has been told to step up controls if it is to they talkedis, and about the recommendations. reporter: this was a panel of both public sector and private sector folks, so you had the former secretary of the transportation department, in the u.s., sam skinner, two former heads of the end tsa -- agency, and you also at some former executives from like ford and eaten and abbott laboratories, so a good mix of folks on this panel, and what they were looking at was the current state of quality , related totakata manufacturing and particularly looking into the airbag side of
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their business, so this was a ,anel that was not looking into you know, what was at the sort of source of the airbag issue. there are several investigations into the root cause. this panel was looking at what is going on today and what recommendations, you know, should takata receive going forward to improve its quality controls. report: well, how have they reacted to the report then? >> right, so the company has been receptive. it did not have a choice. , labeleded this panel it an outside panel, did not off one ability to sign this report in advance, and they really set this up in the same sort of mold the way toyota handled their sudden acceleration issues of a few years ago, so you bring in some
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experts, you know, open up the doors, and this is something dot takata really needed to to be more transparent, because the way they handled this airbag crisis, particularly in the early stages of this crisis, was kind of closed doors and were not really receptive to pressure to really take this airbag and expand it.y only recently have they even admitted that there was a defect with their devices. and the american enduring love of cars and trucks have made one carmaker their best january in a decade. a snowy january did not stop american car buyers who really were out in force, were today? david: they were, and given the snowy weather we saw across much of the united states, and the sales numbers tell the story.
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we saw better-than-expected gains for carmakers like nissan, general motors. they reported surprised sales gains where in some cases declines were expected, and declines at ford and torreon and honda not as bad as expected, so generally, this one surpassed expectations, but the concern is, and one of the reasons why you are seeing the automaker shares down, is the fact that analysts leave shares might be peaking. what about the rest of the year? did it: we may see another record year. this year, it is expected to be nearly 18 million, some estimates higher than that, so another record year despite concerns about near-term sales. pressure, down for a third straight month. thank you very much coming up, nintendo asking
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investors to stay on board for their next game debut. are they listening? we will head over to tokyo right after this. ♪
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you are watching "trending business." i am rishaad salamat. the late morning session, a company trying to convince investors that its mobile gaming debut in march is worth waiting for. this after profit in the last quarter fell by a third. let's get more and get over to tokyo, where our reporter is. slumping. how bad are things for the hardware business, at least, at nintendo? report: well, it was a very rough carter -- quarter-point
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play without a hit title for it drags downrs, sales 8%, and nintendo is still sticking to their full-year flat, reaching about 7.6 by the end of the year, but that means selling 5 million units between a few months, which is looking a little bit unlikely at this point. things are even worse for one , and aich saw a 28% drop device at the end of its lifecycle, but, again, the market reaction today had a lot more to do with the outlook for the company's mobile business. very quickly. when will we see mario on the iphone? reporter: that is a question everybody asks, and the short answer is we do not know. that thedent told us
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second game will feature a character that everyone knows and loves but would not say anything more. thank you very much, indeed. profits fell, and we talked to a cfo. ♪
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♪ rishaad: out of stories, u.s. crude continuing its dive below $70 a barrel, japanese shares down more than 3%. it is the most in two weeks, with similar losses in hong kong, as well pick crude wiping out last week's rebound, and stockpiling gains. time, having a terrible down the most in years, profit shrinking nearly 50% in the third quarter. japan's biggest broker says there are money losing
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operations outside the country. hoped the boj moved with a negative interest rate boost business. shares also feeling the heat in tokyo. there is an independent panel telling it to prioritize quality control over the safety defects. it was told to track data from incident reports. the panel was formed last year to identify the cause of the arab a crisis which is now linked to 11 deaths and the recall of millions of vehicles. warning that are a lot of investors would like to forget, and david is taking a look at that and the other market action. .avid: yes, worth forgetting for the bears to their hats on. the shanghai composite doing this, 1.1%. the reason i am showing you this is late last night after the markets gold, the pboc came out entice markets,
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and hopefully they can get through all of the excess inventory in the system. at least for today, that is providing some kind of list. chinese real estate. having a look at what is happening across asia. every single sector though is down. asia,roperty space in that is doing little. we are down 2.4%. there is a lot of risk aversion out there. you know, you look at the damage this is at the very least not given the losses. i was just talking about risk. at these yields permit you cannot imagine them getting any lower. constantly grinding lower and lower still, challenging the
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can weion that how low get, right? so this is across the curve in japan, and this is a very crude illustration of that. 2, 5, and 10 year. 30, above zero, less than one, and i guess it shows you that investors would rather store their money into something that does not yield anything rather than lose it, so that is what is happening there. what else? energy stocks leading the declines in hong kong, not surprising given the drop in oil prices, and that is one of the main drags in hong kong, but every main stock on the hang seng is lower. look at these property stocks. the reason i bring this up is everything is cheap in hong kong right now. cheap, but these are the cheapest of the cheapest of the cheapest white five price
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to book that someone called this stress levels. again, the outlook for the property sector here -- have a look at these declines. i am sure these valuations are getting pushed more and more, and sharp declines in tokyo. long story short, earnings are quite bad. revisions expected for forecasts, and they will likely not push through a dividend. it could be third time lucky for kim china. a deal could be announced today. just give us an idea of how big this is? na constituteshi the largest ever overseas acquisition by a chinese firm, so quite large. well, who is upfront here? who is at the helm? >> the
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chairman is a guy who started the company in 1984 with 10,000 and has since then led the company through a series of investments, mergers, acquisitions to where it is today. it bills itself as china's largest chemicals company. ok, then this has to figure into a grand design, as they often do in china. how does this fit into the big picture? >> last year was china's largest ever for about 124cquisitions, billion dollars, said this acquisition would, if it goes through, fit squarely into that, both for the company -- the thought one company last year and made a series of impressive acquisitions, and for china as a whole, going abroad and by companies that give them
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technology but allow them to move up the value chain and give them access to some of those markets as the economy in china softens a bit. how is the regulator going to take that, the regulator in the european union? reported,, as we there is a question about the states and what will happen there. u.s.,is interest in the and, of course, question of chinese firms buying assets that connect to the u.s. is always a subject of conversation, so i think of those three, that is where we will look to see if the deal goes through, if it will be approved by all concerned. thank you, joining us from new delhi, having a look at syngenta, being taken over by chemchina.
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other stories.he national australia bank, tumbling the most in five months after it sealed if exit from a troubled investment. it is focusing on its own market. about 500 $70 million in an ipo, and another ofl trade at the lower range the listings in london and sydney, and issuing more gambling licenses outside of manila with a minimum investment of $300 million to assure world-class standards. and more being built in the manila complex, an investment of $1 billion each, and revenue is expected to more than double. $2.8 billion. with achnology stocks magic lead with a round led by alibaba. this valued the company at $4.5 billion. a so-called mixed reality.
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virtual images superimposed over real world views. they say the extra cash will speed up the process of bringing the product to market. it also wants to use the alibaba site to sell the headsets in china. looke're going to have a at a communications company, lastse it fell 80% from year, but the company says it is seeing strong demand and it comes to data services, and the chief joins us from mumbai using skype. thank you for joining us. let's start off with the 80% fall. that is quite a decline. >> good morning, and thank you for having me on your show. i am not going to stress too much on the 80% decline, because our core business revenue, that , and if you look
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at what is driving that revenue, this is on the back of strong performance of our data services. our data services have grown by 17%, and we have been seeing sequential quarter on quarter growth. i am going to put some perspective to this data. at the start of the year, we thought we would see some sort of softness in our voice business, but we had been working and investing and growing our data services, and that strategy has panned out very well for us. ebitda you look at the margins, we have seen an expansion, which are over 20%. again, at the start of the year, there was some kind of speculation about the 20% margin levels, and in q3 itself, we have been able to achieve that. data services --
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sorry. go ahead. just looking at where you are getting that demand from, about three quarters of your demand is coming from overseas. which markets are very strong for you, and which ones are found to be a bit wanting? tata to isuld know, a global player. good growth coming across markets, and this is primarily from our enterprise business, which has grown by 21% year on year. i would just like to add a little flavor of what is driving this demand. this is on the back of some of the new service offerings that we have provided. for example, a collaboration and indication service. these have been growing by 16%, 17% year over year on the back
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of some recent product launches that we have done. services,our global like 80%. we have seen growth. others have grown by $.50 it and as i mentioned earlier, we have a composition of both global and indian enterprise customers. we are actually leaders in the indian enterprise market, so both growth is coming not only from demand coming from customers but because of the excellent service offerings that we are providing with the continued investments that we are doing in our product and the backportfolio on of our excellent global network. absolutely, but let's just look at 2016, the year ahead of us right now. how are you seeing things? inwe did see some volatility
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2015, but despite that, we have been growing. 2016, all is well. we are continuing to see technology demand. as a matter of fact, we are or ana field trial offering on connected services technology,ed on and this is a connectivity platform that is going to connect all the internet of things, and it is expected that these devices by 2020 are going to be twice the number of human beings on this earth. now, given the kind of investments that we are doing, we think that we are well-positioned to show steadfast, predictable, and healthy growth in 2016, and this will again be on the back of our data services offering. how do you see things going in india? it is still a quarter of your
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market. the economic outlook there, and how does the weakness in the currency play into this? market, it will still be one of the highest growth markets, and given that our revenue shares were 26% and it offers hugenk opportunities for us. we are continuing to invest in this market. when it comes to the currency, we do get some kind of benefit, but it does not have an overall impact only because we mentioned we are a global company, and our people and assets reside -- 76%y, and our revenue of our revenue is outside of 26% comes from inside india, so we are well ahead, but nothing really that flows in. thank you very much,
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chief finance officer of talked a communications. communications. we will hear from a chief equity strategist from goldman sachs when "trending business is back in two. ♪
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rosalind: the next stop in the race for the white house, and hillary clinton has won and lost in iowa over the years and that winning is better after she beat bernie sanders by a fraction. donald trump used twitter of accusing the media of unfair coverage of what he called his some arefinish, and threatening to pull out of peace talks in geneva, accusing bashar
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al-assad of increasing attacks. they say they will walk out by the end of this week unless this is stopped and military and eight is allowed in. talk started on monday with the two sides discussing it. and the zika virus has forced the renaming of a car which has an abbreviation. the world health organization labeled zika virus and world threat due to it being widespread and causing birth defects. and a new name for the car will be announced in a few weeks. powered by over 2400 journalists in over 100 bureaus around the world, this is bloomberg news. i am rosalind chin. yvonne is at an event
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with our next guest. stocks we are seeing down, the dow falling 300 points overnight and oil back down to $30 a barrel. who better to talk to than peter oppenheimer? peter, thank you for joining us. it seems that we are heading back to levels or the volatility of like january 4 once again. what have we lost, and about this premium? peter: well, most of the qe premium has disappeared, and europe is a case in point. things are back to where they were. i think the markets are grouped in fear about a global economic situation and the consequences of that, and that is really what is creating this volatility. : yes, but this is against they said.rd
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the rally lasted two days. our investors putting less faith into central banks in terms of guiding the markets? peter: i think there is more the central banks can do. i think investors are worried that the urgency to do more is just a reflection of the concern about a lack of growth. ultimately, i think growth will be more solid than the markets are currently pricing it at, and opportunities,e but until then, until we really get a stabilization in things like the oil price, in the rate of growth in places like china, people will be unconvinced that it is time to really take advantage of those potential growth opportunities. : so as we go into february, do you think it will ramp up even more? peter: well, i think there is a bit of a vacuum, as you say, in terms of policy support. really, the support from here has to come from the data,
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confirmation that the jobs market made strong in the u.s., for example, would be important here. some stabilization in oil prices that we do expect to get, albeit later this year, and some stability in china growth or at least the momentum of growth i think would be pretty crucial, but without obvious near term policies, i think that is really going to be where the market will be. you talk about momentum in china. we just got this disastrous week with pmi coming out from the mainland. services, we did see continued expansion, but is that going to offset the old drivers of the economy, or do you still see there is going to be this really big tug-of-war and transition phase for china? peter: well, i think what is reflective with china is global. there is a big split between the opportunities for consumers generally, where conditions are improving but real incomes are
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beginning to rise, low commodity prices, and in many places, fiscal policy is finally easing, and by contrast, the manufacturing and industrial economy, like the structural headwinds are really very intense because of the fourth capex, butng cuts in also cuts in capital spending in emerging economies, so that is put between the relatively strong consumer and the weaker industrial economy. i think it still has to play out. some sectors are we would need to of work, but what about possible strength and green shoots in 2016? peter: are our markets where we still have our preferences. we do have this towards domestic consumers, and labor markets are improving. wages are finally picking up after a long time of austerity, and you are getting the benefits
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of lower commodity prices feeding through, and there are opportunities in this segment of the market that would generally be much more skeptical, particularly around industrial capex and commodities, and it played out last year, but still, i think it is ongoing, and the valuations still really have not got down to stress levels because of the underlying earnings, which continued to weaken. yvonne: in your notes, you mentioned this crisis that went from the u.s. to europe and now to emerging markets and the falling oil commodity prices. in this last wave, how do you see things playing through? are two scenarios. stagnation or normalization. how far away from normalization are we? peter: let's be clear. the wave started with the u.s. housing market but but on with the zero rates and kiwi and then
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went to europe and the banking sector and ultimately through a complex process, you got through zero rates and qe. the focus has shifted to emerging markets principally to because of commodity prices but stretching out to focus on leverage and debts. you probably need to see a policy adjustment that will ultimately convince markets that a mores a potential for sustainable and stable period of economic growth to come. in our view, the markets focusing on the deflationary growth shocks that may come from the weakness in the yen, we think they are probably exaggerating that, but it will take some time, just as it did in europe and in the u.s. in the generatephases, to that stability after a period of policy and adjustment. yvonne: meanwhile, we are just going to storm through the volatility. peter oppenheimer joining us from goldman sachs, a global
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equities strategist. more from the conference. back to you. yvonne, right. coming up, the life and soul of the party. elevated be given status. you are watching "trending business." ♪
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there appeared to be
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attempts to elevate the status of the chinese leader, i'm referring to him as the .arty's core leader how is this emerging? what does it do? reporter: it started from the local level. they are pushing to call xi jinping the core of the party, and the first is from january 8, and then in subsequent days, we have seen at least seven trying to push the same status for him, but now, as you know, there are only three leaders in the party history that have gotten this kind of status.
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if xi jinping is sufficiently designated as core of the party -- rishaad: what does that mean? >> it means he would have in the congress in 2017, to put his allies and his colleagues to the key party posts in the politburo standing committees. essentially solidifying his power base. thank you, having a look at what is going on in china with the leadership. stay tuned. "asia edge" is next as we recap the big stories. ♪
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>> from our studios in new york city, this is "charlie rose" charlie: senator bernie sanders is here. he is, as you know, a candidate for the democratic candidate for president. he refers to himself as a democratic socialist. former secretary of state hillary clinton currently leads him in the polls but sanders has continued to draw huge crowds. he and clinton spoke at the jefferson-jackson dinner on sunday in iowa. bernie: today some are trying to rewrite history by saying they


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