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tv   First Up With Angie Lau  Bloomberg  May 31, 2015 7:00pm-9:01pm EDT

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angie: on the attack. andinvestigation of fifa, that the u.s. warns of more rest to come. and another greek deadline slips by. china's toughest rules against smoking. welcome to "first up." i am angie lau, coming to you from hong kong.
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a number of markets closed today. no trading for new zealand and thailand because of public holidays. we are counting down to the opens in australia, japan, and korea. japan, nikkei climbing for an 11th days straight. longest winning streak in 27 years. the last one was 1988. .1% higher. futures indicating that maybe we will snap the winning streak. dollar-yen holding steady. , the u.s. as today the investigation into corruption in world soccer is widening. more arrests are on the way. president insists the trail will not lead to his door. we take a look at the story that has really fascinated fans around the globe. reporter: the world's most popular sport.
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sepp blatter winning another term in the presidency and coming out swinging. he is trying to fight back against the allegations. he is saying individuals involved need to be responded -- responsible for their own actions. interesting to hear those comments from mr. blatter. a lot of strong words here. key insists he has nothing to fear from u.s. officials in what is likely to be a widening investigation. million bribery scheme according to the department of justice complaint, and it may get bigger according to an irs official we interviewed. he says criminal charges against individuals are sent to come. wasblatter over the weekend defending the sport against the allegations. >> we cannot let the reputation of football and fifa be dragged through the mud. ande who are behind this those who are truly at fault,
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especially if convicted and found guilty, these are individuals and not the entire organization. zeb: interesting to see how he targeted individuals, not the entire organization. it remains to be seen if prosecutors will extend that the case to mr. blatter himself. for his part, he insists he has nothing to fear. angie: one of the angles bloomberg is following is the part of major banks cooperating in this investigation. what do we know? zeb: standard chartered, hsbc and barclays have been looking into alleged transactions. this case centers around marketing activities, the rights to various world cups and how bribes were allegedly paid to secure rights. the are talking billions of dollars. so they are tracing the money. and the irs and fbi are going countries' financial
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records. it will take several years. angie: follow the money, as they say. it is make it or break it. debt repayments looming for greece this month. athens has to cough up nearly $1.8 billion to the imf and its bailout package is set to expire. you have shery ahn with the latest. shery: an ongoing saga, definitely. another deadline gone. so many others came and went. greek policymakers have said that they could reach an agreement by sunday on a deal with creditors. that did not happen. they are set to have a tough week. this week on friday, they faced the first payment to the imf of $329 million. they have four payments totaling
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over $1 billion. had the agree greece cash and options to avoid default. what happens next, we are not sure. but there has been finger-pointing as to why an agreement has not been achieved. alexis tsipras writing in le the lack of agreement is not their fault but because of the insistence of certain institutional actors of submitting certain proposals and displaying indifference to the recent democratic choice of the greek people. but creditors do not look like they are budging. a senior lawmaker saying it is up to greece to adhere to the terms of the agreed to terms before alexis tsipras came to power. alexis tsipras is hoping that the german chancellor and french president will help in forming a deal. they already held talks over the
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weekend over the phone. merkel and hollande are set to meet later today. what about creditors uniting? shery: sources tell us that officials representing credit institutions have gathered to agree on terms of the bailout. buyoutition would be a by european leaders, but this would come from the imf, the european commission. and we know that creditors are seeking concrete action from grace on pension systems, labor markets. angie: with so many deadlines that have passed, so many still to come, what is really the first solid step? shery: finance ministers in europe are saying that they need to achieve a technical agreement by the beginning of this month. if they do not get that done, the disbursement would be really
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hard to come. the greek economy minister is saying, we are going to get a technical agreement soon. they are saying in a few days. this deal would be followed by a meeting of eurozone finance ministers to free up resources. angie: shery ahn, thank you so much for that. you can get more on greece and all the latest top stories at our new digital destination, bloomberg business. we are bringing together the best of bloomberg news, business week, bloomberg television and digital content in one address. also on, john kerry cutting short his european trip after a bicycle accident. winehe $18,000 bottle of which may not be as sweet. check it out. stocks willnge fluctuate within a wider daily limit starting today. the increase will be lifted from 7% to 10%, the first change
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since 1989 in stock movement limit. the limit will allow prices to better reflect market fundamentals. hong kong has added six people to the list it is monitoring suffering middle east respiratory syndrome, bringing the total number of 62. contact with infected man, who flew to hong kong from seoul. it is china's first confirmed case of the virus. silk roado founded has been sentenced to life in prison. was convicted of drug trafficking through the online market where anonymous oin and fakebitc identification. million on silk road.
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six people died after using drugs bought through the website. has long been one of the most smoker friendly countries in the world. few restrictions and no taboos. but today, beijing is fighting back with the harshest anti-smoking rules ever seen in china. yvonne man has been looking at this for us. yvonne: china has 300 million smokers in the country, nearly a third of the world's population lighting up. you mentioned cultural norms in china when it comes to smoking. virtually no taboos. you can go to any bar or restaurant and see a cloud of smoke upon entering. beijing says that will change today, even offering a new acquaintance cigarette is considered polite. refusing is considered rude in china. this law is citywide and seen as for a movement in
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the works for a national law in china. ins will be a blanket ban public spaces, workspaces, hotels, public transport. even airports, which will no longer have smoking lounges. beijing makes his store places like the great wall and for good in city, 18 cities in china have similar bands. a little lighter in terms of regulation. but the biggest difference for beijing is that it is targeting businesses for the first time if they do not comply with the van. -- ban. up to $1600 in fines if they're caught. citizens toouraging take pictures and send tips hat to catch smokers in china. in beijing, 4.2 million smokers in total. they smoke an average of 14.6
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million cigarettes a day. angie: that is addition -- in addition to bringing in the hall that pollution. the law is only good as the enforcement. china has tried this before. i remember there was a smoking ban. right next to it was a non-smoking area, even ashtrays in the non-smoking area. it has failed before. how will it work? yvonne: there have been two failed attempts, one before the beijing olympic games. the difference this time is that there is top level support, including xi jinping saying no more smoking. it is party officials. they cannot light up in public or give cigarettes as gift. the finance minister also planned to up cigarette taxes from 5% to 11% soon. that is the plan.
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but it could set the stage for a new law. angie: interesting. thank you for that. no breakthrough for a great deal over the weekend. we will discuss the latest. ♪
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angie: checking headlines around the world, myanmar detained journalists trying to reach a remote island where migrants are being held. they demanded they sign an agreement not to make the journey again. 237 people were arrested from a boat. the navy denies they are muslims trying to leave myanmar but are from bangladesh. weekend thunderstorms brought little relief from the heat wave in india, which has killed 2000 people since april. intense heat likely to continue today.
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before the arrival of cooling monsoon rain. temperatures topped 45 degrees celsius. been laid to rest in mississippi after funeral services are attended by family, friends, and fans. andutes from stevie wonder president obama. the 89-year-old guitarist died in his sleep on may 14. police are carrying out an investigation after king's daughter accused his longtime business manager of killing him. we take a look at events we are following this week. on tuesday, we are expecting greek decisions from central banks. australia will decide if it needs another rate cut. we are also watching india. economists expect the
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interest rate to be cut for a third time this year. tuesday also sees the start of cyber security week in china, being billed as an attempt to educate people about potential online risk and comes as lawmakers consider a bill to protect cyber sovereignty. , the internetts security department and alibaba's jack ma. wednesday, insight into samsung's strategic vision. corporate governance concerns continue to plague the conglomerate as the lee family pushes for more control. we may hear about takeover plans for the world's biggest jeweler. thursday is when they are planned to released results at chow tai fook. let's bring in hayden brisco.
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thanks for joining us. what is top of mind for you this week as you look at this busy schedule? the market is not thinking about a rate cut. it is still around the currency that everyone is concerned. india, you just touched on that, they are thinking about a rate cut. it is getting tougher because most of their cpi has the risk of going up because of food inflation. that is weather-related and you cannot help it. angie: rba will be an interesting one. will we continue to get that guidance, perhaps that is still on the table? we are seeing in this commodity super cycle, trying to be controlled by the rba. guest: they have been very vocal
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about passing that to the government. it is less about the fiscal. it is structural. can dot think the rba much about this. the need to drive the currency down to get competitiveness back. commodities was the only thing driving the economy. angie: how about property in sydney? guest: that sort of has a short tail. it will eventually run out. angie: what is a good strategy as we take a look at global trends? especially with janet yellen. end of the week, critical data coming out of the u.s. i think janet yellen made the point that every meeting is live from no one. everyone is debating whether they will or they won't. that is getting a lot closer. will have to start
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talking about the runway into the rate hike. behink the market will triggered on every word she has to say from now on. angie: how do you think you will respond? honest, we think there is a rate hike coming. we start to see that this month. if you look at employment they probably look ok. the unemployment rate at 5.4%, potentially going lower. you are starting to get to the point where it should feed into wages. angie: how are you setting up your clients in this environment? guest: with that backdrop, we have been shorter in bond duration, thinking yields will rise. we also have strong u.s. dollar views which we are expressing through currency. we have had a recent rally and we think that is likely to continue. angie: the japanese yen is
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sinking lower, 12 year lows. at some point, that is not necessarily going to be a good thing for japan. guest: that is right. one point 24, roughly the cheapest it has been in 30 years. it is about 30% in the exchange rate. as you point out, it is probably not going to go much further. we think it will settle around this level. angie: bank of korea taking a look at the weekend -- weak yen and concerned about the state for exporters. their trade surpluses going through the roof, which attracts global investors. but unfortunately, that is making them less competitive relative to the yen. disastrous inook
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korea, so they will probably have to start cutting rates again and draw the currency down. we are sensing that as a common theme from nations across asia. hayden brisco, thank you for joining us, talking currency, fixed income, from asia-pacific. indonesia's at how central bankers are getting their hands dirty in an effort to tackle inflation. ♪
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angie: welcome back to "first up ." indonesia struggling with asia's highest rate of inflation, and worsening.t is commodity prices jumped 7% in may. they are trying to get the figures down to 5%. as rosalind chin reports, that sometimes means getting your hands to. this farmers group has been training to grow vegetables more productively. but she is not an agricultural specialist. she's had of the central bank's offices. mandate isonesia's to not only manage the market and demand side but manage
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agricultural groups from the supply side. we look at how goods are produced, how they are fertilized, and so on. rosalind: targeting food production is the first step to fixing inflation, which has been above 6% all year. it is an important goal for the president. price stability is a key focus. the central bank has teamed up with regional experts to develop programs aimed at ensuring steady supplies of rotors with the most efficient method. members of the farmers group have seen used gondola 20% -- use go up 20%. it also provides support to farmers who grow products which would normally be imported, like tomatoes, which can sell for a higher price than local varieties. farmersocal tomatoes,
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only get 4000 rupiah. these we can sell for upward of 12,000 rupiah per kilo. that means income is improved. rosalind: it also hopes the measures will help indonesia move closer to self-sufficiency, another one of the president's goals. more still needs to be done in the fight against inflation. >> it is not just how much you plan, how much you yield from crops, but how will it contributes. that depends on infrastructure. there is plenty left to do, but here in the fields of west java, some of the efforts are bearing fruit. rosalind chin, bloomberg. get more on that and all our top stories and
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watch us live wherever you are with the bloomberg app. film "sans. latest office, topped the box raking in a $53 million, far ahead of expectations and easily beating new releases this week. aloha" came in sixth. sea,ns in the south china we will have the latest when we return. ♪ [beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place
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♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight [baseball crowd noise] ♪ ♪ [x1 chime] ♪ ♪ [crowd cheers] oh! i can't believe it! [cheering] hi, grandma! ♪
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for local issue being watched is beijing officials ruling out compromise on proposed changes after electoral system thousands of protesters took to the street. there is a crucial vote coming up. they insist there could not be compromised. we are 30 minutes from the open of trading in japan, australia, and south korea. you are watching "first up."
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angie: top stories this hour, fifa president sepp blatter has accused the media of trying to force him out of office. he also refuses suggestions the investigation could ensnare him. officials have been arrested and more warrants are on the way. greece has failed to reach a deal with creditors. prime minister alexis tsipras is hoping germany and france will use their influence in a constructive conference call. greece has four payments due to the imf this month, the first this week.
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toughestnstalling the anti-smoking laws in china, banning smoking in indoor public spaces, offices, and public transport. new laws require businesses to discourage customers from lighting up and report anyone who refuses. $30.ules include fines up china's center for disease control says 1.5 million people die every year from smoking-related diseases. let's look ahead at the markets this morning. thailandnd, singapore, closed for public holidays. but we are counting down to open korea.n, australia, and japan, 11 straight days of gains. futures in chicago are pointing to a lower open after a selloff on wall street last week. weakening, 124.21.
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, china defended its claim to disputed islands but did not threaten other countries. the u.s. try to mobilize a consensus against china but avoided inflammatory rhetoric. stephen engle taking a look at the discussion stephen: cooler heads prevail in publicly, but behind the scenes, i'm sure they got down to brass tacks. that is china being much more assertive in the south china sea. sayinghe united states we are going to fly where we want to fly in international waters. at the backdrop is china's threat to potentially label the area defense identification zone, which amps up tension.
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was a bitl last year more terse in comments. so they dial back the rhetoric this time. ashton carter is relatively new as defense secretary. and the chinese admiral, they couched their words. but the message from both sides, including secretary carter, was clear. states is deeply concerned about the pace and scope of land reclamation in the south china sea. the prospect of further militarization and the potential for these activities to increase the risk of miscalculation or conflict among claimant states. stephen: i mentioned the airstrip. -- admirable sung address that. here are his words.
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justified, legitimate, and reasonable. i think the u.s. would disagree. the dialogue is trying to build a consensus, one-sided or the other. angie: any progress? stephen: that is a difficult one. it seems like both sides are sticking to their terms. they are playing a little nicer publicly. there has been no public comment to the contrary. carter maintained his warning the u.s. would fly where international law allows. china says it has the right to the air defense identification zone, even though the islands are being built for civilian use. there is a lot at stake. $5 trillion of annual maritime trade, shipping or the waters -- through the waters. also the 10th largest fishing
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waters with untapped oil reserves. angie: that is why china wants to be there. stephen: they claimed 80% of the island. angie: stephen, thanks. cash crunch time for china. june is typically a time when liquidity is tighter on the mainland. will this year be the same? we have david joining us with a look. david: this year maybe worst -- worse. are -- the season seasonal factors in june. liquidity typically gets tied up. rates and soet forth. what we have here is a five-year chart. these are the moves each june.
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2012, 2013. typically, we are approaching the end of the quarter. you're looking at banks trying to fill requirements. the most pronounced move was back in june 2013. the overnight purchase rate shot up to record levels because the pboc allowed it to happen. we are at about 1% right now. that one was almost 12%. a lot of nervousness surrounding the markets. why are we thinking it is going to be worse this june? you have a massive amount of ipo's in terms of numbers and money. angie: that drains liquidity. david: that is right. we have seen a lot of ipo's this year.
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, this is the median forecast from six analysts, that is about 60% higher than what we have seen so far. , one oflion, 23 ipo's which is going to be a big one. corporation, if i'm not mistaken. you're looking at 20 to 30 ipo's . but this would be the biggest 2012, china national nuclear power. we will get to see where the pboc wants the rates to go. they will be injecting. angie: david, thank you. let's take a look at corporate stories making headlines. shery ahn your. shery: a private equity fund buyed by jack ma is set to
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1.3 million new shares for $346 million. the company shares have been suspended its april 21 and are due to resume trading in hong kong this morning. another deal may be underway. intel is close to buying rival altera. a deal may be announced monday. the chipmakers have been in contact since earlier this year. offer rejected an initial in april. still not known what caused the death of the president of american express. ed gilligan was flying from tokyo to an orc when he fell ill. efforts to resuscitate him were unsuccessful. gilligan joined amex as an
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intern. he is survived by his wife and four children. woman,asia's richest mining billionaire gina rinehart, may be facing legal action by her son to remove her as director of their flagship mining company. just last week, she lost control of the family's $4 billion trust after a court battle. let's get over to paul allen for more. another chapter in this family feud. reporter: it just keeps on giving. the legal battle may not be over yet. with john hancock, gina rinehart's oldest son, seeking to have her removed as director of hancock prospecting. we need a little bit of a history lesson. the week, a judge appointed cacle rinehart -- bian
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rinehart as trustee of the family trust. billion trust was due to vest, but gina rinehart said if , it will be wiped out by capital gains tax. it turns out everyone knew that was not the case. push the vesting to 2068. so they went to court and the court found in favor of bianca and john. justices this the demonstrates she's prepared to go to extraordinary lengths to secure the trust and is capable of exerting enormous pressure.
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it is those words that seem to have emboldened john hancock to possibly push further with this case. he said the judgment raise the legal questions over whether gina rinehart can continue as director of hancock prospecting. he says the conduct exposed in the judgment may lead to further court action. so the saga may not be done yet. it just seems to keep rolling on. angie: it her family feud. family feud. next, we speak to the president of the taiwan stock exchange. why it is a market investors should not ignore. ♪
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angie: checking headlines, sepp blatter has attacked english-speaking media, accusing them of trying to force him out
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of office. he dismissed suggestions that the corruption investigation could ensnare him. fa officials have been detained, and the justice department insists more is on the way. more korea has confirmed cases of middle east respiratory system to 15. the health director discussed measures to tackle the disease. 1100 people have been identified with mers, and 460 of those died. most of the victims have been in saudi arabia. plane tried to circumnavigate the globe powered only by the sun is heading for hawaii. the 8000 kilometer flight over the pacific is expected to take six days. the journey began in march and included stops in india and china.
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after hawaii, solar impulse will head to the united states. we will see some big changes in taiwan when trading gets underway. the exchange will widen the daily stock limit to 10% in an attempt to attract more international investors. let's discuss this with exchange president michael lin, who joins us exclusively this morning on bloomberg. thank you for joining us. why 10%? because the taiwan market hasn't changed. investors have changed. investors are becoming more globalized. ,o their trading mechanism there is a need to align it with national practice. angie: a movement to align with international investors. what about widening the links
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between taiwan and, perhaps, shanghai and other exchanges? we are working on the trading connection with singapore exchange. the work is ongoing. we hope the infrastructure we implement can be replicated. -hongegarding the taipei kong, i cannot say anything more for now. angie: all right. wastell me why singapore first and what you hope to learn from the connect with singapore and perhaps the benefits you hope to glean from that. as i mentioned earlier, investors are becoming more globalized. they invest everywhere.
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from our point of view, if we can connect between exchanges, we can help investors and brokers reduce their cost and improve trading efficiency and transparency. angie: what do you hope to gain for your listed companies on the taiwan stock exchange with this link? as more international investors take a closer look at taiwan. we are working for many new majors. coming, we hope can be more attractive for international investors and companies, domestic and abroad. angie: when can we see the
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taiwan-singapore connect in action? actually, we already it, thend organized task force, each of us. we are working on the details. we hope that we can sign a formal agreement soon. these can we expect something in play this summer? maybe the fall? summer, maybe the cooperation between taiwan and japan will be the first. onrently, we are working production mutually. we hope that will be in the third quarter. angie: i know you did not want
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to talk too much about the connect, but why is it so important? why extend ties to hong kong? china could be a little controversial politically, but why extend ties? guest: from the taiwan point of establishould like to links with other exchanges. we are working on the infrastructure between taiwan and singapore. and we hope the infrastructure can be replicated. once we decided to have connectivity with other exchanges, the schedule can be shortened. angie: taiwan stock exchange joining a six week -- exclusively on bloomberg. japan's first quarter capital spending figures coming across 7.3% on aal, up
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year-to-year basis. economists were predicting a fall of .2%. that is an extraordinary beat. a quick check of the yen with capital expenditures coming in great guns. dollar-yen at the 124.33.vel, ♪
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angie: welcome to the stock exchange. we look ahead to the opens in japan and south korea. our reporters are telling us what they're keeping an eye on. shery: i am looking at rio tinto. foral could be on the way
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developing the coal mine in mongolia. this month has been abnormal. .1% down. rio tinto had the agreement last mine, thiselop the could be the second breakthrough months.t in two business.orean hotel it is not sheila today. hotel across korea, lotte. the news is that hotel lotte is
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buying the new york palace on 5th avenue across from rockefeller center. angie: have you stayed there? zeb: i walked through the lobby. blue memo.t the shery: you are all matching. onne?eve on -- yv yvonne: doing pretty well. they're operating profit will jump 48% for the full year. but they also expect net income to drop 22%. they also talked about an investigation, one of its workers that embezzled about $20 million from the company. they updated it in terms of learning impact -- earning impact, 2 million dollars impact on net income.
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angie: you know what i realized we're playing this morning? rock, paper, and hotels. [laughter] yvonne: we need to find a scissor company. angie: if they are renovating the lobby, there will be some cutting. zeb: they have renovated rooms if you are willing to pay top dollar. korea, everyone was walking around with lotte shopping bags. ok. we will watch that. thank you for that. rio tinto, paper. and lotte shopping as well.
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that is the verdict from the stock exchange. we will be back in an hour to see how they have done. in the next hour, fifa's
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>> clearing the air. beijing introduces the toughest controls ever seen in china. still no deal. greek announces a third debt proposal as other deadline slips by. blatter criticizes the investigation of fifa, but the u.s. warns more investigations to come. good morning.
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we are coming to live from our headquarters right here in hong kong. let's get straight to market here in asia-pacific. to australia, where australian equities look like this. .2% lower. japan is just a boring -- is just opening. snapping 11 days of gains, the longest winning streak since 1988. if it continues this trend we could very well see that today. the dollar-yen is weakening. we have got breaking news right now. south korea's trade balance coming in at a surplus of $6.3 billion. economists surveyed by bloomberg had estimated a figure of $6.2 billion. exports fell 10.9% compared to estimates of 10.7% so that is a bigger fall for exports as expected. of course, that weaker yen
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against the stronger korean y uan is wreaking havoc. -- korean won is wreaking havoc. that is a little bit better than expected. on the heels of that data we are seeing equities drop one third of 1%. a eager -- a weaker won. 1113.45. over to china. it has longingly -- it is long been known as one of the most smoker friendly countries in the world. today, that all changes. beijing attempting to change that with the harshest antismoking rules ever seen in china. it is going to affect a lot of
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smokers. reporter: a lot. -- if youlook, if you go to any restaurant or bar, you have a pretty good chance of seeing or smelling a cloud of smoke in a lot of places because it is a very common habit here in china. in cultural terms, even offering a cigarette to an acquaintance is considered to be polite. refusing a cigarette is actually considered to be rude. beijing says this needs to change and they need to take massive action. the citywide ban is seen as a trial run for a national law. what this blanket ban will include his public places such as work, school, hotels, public transport, airports even. inmore smoking lounges historic tourist spots as well. overall havechina lighter bands already.
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this is the strictest one. the biggest did -- the biggest difference they say is targeting businesses for the first time. about $1600. fined advertising will be much stricter. they say it is now banned from tv, radio, print. individual smokers now could be fined as much as $32. a very serious problem, smoking is, in chinak. when you have 300 million smokers in the country and the alone, that is nearly one third of china's population. 13.6 million cigarettes are smoked in beijing. the world health organization talking about how this could get worse and is leading to about one million deaths per year. they said if china doesn't do anything we could see up to 3
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million deaths per year. >> why do we think this time is going to work? the top-level support will be the big thing here because even the president was banning party officials from smoking in public. is a very big advocate of my anti--- advocate of anti-smoking. the ministry of finance announced plans that they may be raising the consumption tax from 5% to 11%. angie: yvonne man, thank you very much. you can get more on that and all the day's top stories in our new digital destination. bloomberg business, bringing together the best of bloomberg news, business television, and digital content. also on, how john kerry's broken leg could come to
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get things with iran. -- plus the latest entertainment news. this is a drama that is not necessarily in the movie make or breakt is debt repayments with $1.8 billion looming for greece. with no deal in sight, the greek prime minister has attacked creditors for insisting on absurd reforms. reporter: the prime minister going on the offensive now. no doubt line -- no deadlines having been met yet. the greek government said they would secure a deal by sunday, and that didn't happen and greece now has tough decisions to make. a lot of finger-pointing in the process. government -- prime minister monde" thatd in "le
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a lack of an agreement is not their fault but due to insistence of certain institutional actors on submitting a third proposal and -- some harsh words there in the newspaper. saying it is up to greece to reform -- to adhere to the reforms they agreed to. trying to get help from the german chancellor, the french president. he already talked on the phone on sunday. officials calling the talks constructive. nowel and hollande scheduled to meet later on monday. angie: as you said, creditors are firing back but also getting together and putting on a united front. shery: sources tell us that they worked over the weekend to agree
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on some key terms related to the bailout. the position will be but theyted to tsipras would come from the imf, ecb, and european commission. they had a lot of money to get back from greece, so they have four payments that are due this month worth $1.8 billion. the first payment is due on friday and that is $329 million to the imf. that greece has the cash and options to be that what happens in the next few weeks is anybody's guess. negotiation's are ongoing and creditors want to see some concrete details when it comes to the pension system, labor market. angie: what is the first step to a solution? shery: they say they need a technical solution at least by the beginning of this month to get a disbursement approved by the eurozone parliament and they
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are running out of time. they need to get that done by the beginning of this month. news, starting today, japanese companies are required to have at least two independent directors on their boards. it is prime minister shinzo abe move.est they said they deliver better returns. a wider daily limit starting today. lifted from 7%be to 10%. the wider limit will allow marketto better reflect moves. >> investors are becoming more and more globalized. to moveading mechanism
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in line with the best practice. has confirmed its claim to large parts of the south china sea, but also tried to portray itself as the country willing to cooperate with other nations. a regional defense forum in singapore saw the u.s. single out china as a source of instability. the general tone of speeches were less aggressive than in recent years although the u.s. said it would maintain surveillance of the area. on to the story we have been watching pretty much since it began. u.s. says that the embed -- that the investigation into world soccer is widening and more arrests are on the way. the fee for president says he is not -- the fifa president says he is not implicated. the stories shocked many
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fascinated sports fans around the globe. shery: 79-year-old set the bladder -- 79-year-old sepp blatter says he is firmly in control. he tried to reject the allegations put forth by u.s. attorney general look -- u.s. attorney general loretta lynch. $350.s. insists more than million in schemes for broadcast rights. we're hearing from irs officials that this case will widen. more criminal arrests are likely here. blatter narrowly won reelection to a new term as head of people over the weekend. he was coming out swinging saying he will not be held responsible. he said to look to those who should be accountable.
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we cannot let the reputation of football and fifa be dragged through the mud like that. we can't accept that because those who are behind this and truly at fault, especially if found guilty, these are individuals and not the entire organization. zeb: bladder has been speaking very bluntly. he says he was shocked by the allegations, saying he can't believe that the u.s. attorney general would make such a comment. it is the indictment that is alleging the justice department complaint. this is just getting started. the irs says it will take several years before this all works through the court system because of the very complex nature of these alleged schemes. angie: it is all about evidentiary support. i understand they are looking at major banks who are now
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cooperating with this investigation as well. is widening as well. we know that barclays, standard hsbc, have all taken a closer look at the financial transactions of certain individuals involved in this case. to "the sundayng times." but the number of nations involved is ever greater because we have 33 nations according to the irs that are participating. this is a federal probe from the united states and from the swiss authorities. angie: think you for watching that for us. coming up next, preparing for a pickup over the next few days? our next guest believes the correction in china won't last.
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angie: checking some of the stories making headlines around the world. journalists trying to reach an island where hundreds of inmates are held. hundreds of margaret's word pulled out of the bay of bengal. more cases of middle east respiratory syndrome taking the full amount of cases to 15. more than 1100 people have been identified with mers around the world and at least 460 people have the -- have died. blues legend bb king has been laid to rest in his home state of mississippi after a funeral service. tributes were read out from stevie wonder to president
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obama, who says there would be a killer blue session in heaven tonight. the 89-year-old guitarist died in his sleep on may 14. police are killing out -- are carrying out an investigation after two of his daughters accuses longtime business manager of killing him. cash crunch time for china. june is typically a month when liquidity is tighter and this year thinks maybe worse than usual. reporter: that the seasonal factor plus you have a lot of ipos coming to the market. june typically is what we really have a rise, rates go up. i'm talking about interbank lending rates. you see those red boxes. if you go all the way back to 2005, every june we did see a pickup in rates.
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said, take a look at another reason things might get worse. ipos. liquidity might get tied up early this month. the peak time that a lot of this his juneht get tied up 2, 3, 4. than whatbit higher we have seen so far this year. i think we're looking at about 3.5 billion u.s. dollars combined. of course you have the big were there which is the china national nuclear power. where do we go from here? the seven day is just a few basis points below 2%. forecast for this month, we're looking at 2.5%. for whate average
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people are thinking at this point in time. angie: let's get more on the markets. you. very good to see we saw a selloff on chinese markets last week. it looks like maybe the bubble had burst. has it? >> i don't think so. chinese bull market is in line with chinese authorities. have china opening up the rest of the world and developing capital markets. sponsorship from the government for these markets but also the pace of the gains reduceen dramatic so the d case is feasible.
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volatility, but this may as we saw last week, have marked the end of the chinese bull market. that mean foruld investors who felt they may have missed the boat a little bit. will you be adding to your high in terms of chinese equities trustmark -- equities? >> i think it is prudent to wait for a bigger decline in chinese shares as you mentioned in an earlier program. there is a significant amount of ipos coming to the market later in june. that is likely to pressure the market in the first half of june. a 15% correction is actually not much at all. and in fact, bull markets are characterized by price gains in very wild price declines. healthy decline will be
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and in fact, if we do see that, we will be adding to our position. there are a lot of investors, especially institutional investors, that have missed this rally. regional investors have , infited, so as they sell 2016. point, but is a good i have to ask you about what david had brought up. $790 million worth of ipos coming in to suck liquidity away from equities. are you concerned about that at all? >> that's big. , it has to-term
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market nervousness and jitters. i'm not worried about it in the broad scheme of the chinese bull market being intact, but if anything, that amount of liquidity will provide a by opportunity. we have had china in our portfolios. i do see a 15% decline. very quickly, it appears that you are also adding to your position in europe. you are not worried about greece? china. as a very strong possibility of a 15% correction in europe. if we do see that correction, fundamentally we prefer europe given very easy monetary
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conditions and improvements in earnings. my technical indicators tell me that we should probably have around an 8% decline in european shares. angie: amd capital live from sydney. china's manufacturing reading is due out next hour. we will take a look at what is expected after this very short break. ♪
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>> is monday, june 1. japanese yen, that is your train today, near the weakest level since 2000. as we start of this fresh trading week our latest survey shows analysts expect dollar-yen to reach $1.32 by the end of this much. -- the end of this month. let's take a look at south korea. it just released may trade figures. not good at all. expected, but still not good. andrts fell about 11% imports fell about 15%. overall, a sharp slowing down in trade activity. to china.
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the most important data point today. official tmi figures for may are due out in about 40 minutes. we're looking for a slight improvement here. 50.3 is the forecast but economists -- but of the economist we surveyed, only 2 thought they would. the me say what is happening with the japanese yen, firmly above 124. -43.lar, 76 - those of the stories driving your forex markets. ♪
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angie: you can hardly see the tip of the peak there because we have a bit of clouds. it is looking to be a little bit of a cloudy morning at least but we are giving you a live shot here in hong kong. the only way to get down to the central business district is the world's longest escalator. we are one hour from the open of trading here. you are watching "first up." ♪ the top stories this hour.
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toughestition of the anti-smoking laws in china. beijing is banning smoking in all indoor public spaces on the factories, offices, and on public transport. the new rules require businesses to discourage customers from lighting up and also requires them to report anyone who refuses. the new rule includes fines of about $30, but that is a 20 fold increase from the previous penalty. they say that more than one .5 million people die every year in china from smoking-related diseases. greece again fails to reach a deal with creditors. prime minister alexis tsipras is now hoping that germany and france will use their influence in what is being described as a constructive conference call. greece has four payments totaling nearly $2 billion to the imf this month, the first to do at the end of this week.
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s -- fifae president tter denounces bla a campaign to force them out of office. several fifa officials have been arrested by the department of justice in the united states and they say more are on the way. australia just out with its latest inflation data. rosendex showed inflation 0.3% from the previous month. that is far below the expectation and goal of inflation. we are getting that rate decision coming out of rba tomorrow. australian dollar is at .76 u.s. dollars. defended its claim to disputed islands and set it to
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threaten their other countries. the u.s., meanwhile, try to mobilize against china but avoided inflammatory rhetoric. keeping an eye of the discussions here. it looks like cooler heads prevailed. heads may beler publicly, but i have been reading a lot of analysis of these talks and there are some that saying that because they ratcheted back that it is more tense than before. they don't want to make a miscalculation here and say the wrong thing. definitely over the last year tension has been ramped up. we have seen what china has done on a number of these reefs in the south china sea. 80% of thes about south china sea, which is quite far south from the chinese coastline. they cite back to an old map that gives china's sovereignty from their claim. thenyear, chuck hagel,
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united states defense secretary, traded barbs at the same dialogue in singapore. they did ration -- they did ratchet it back this year with ashton carter and his counterpart, the chinese admiral. this is what secretary carter had to say. step withs out of both the international rules and norms that underscore the asia-pacific security architecture and the regional consensus that favors diplomacy and opposes coercion. these actions are spurring nations to respond together in ways. from the east asia summit to the g-7, countries are speaking up. reporter: china, in the last few years, has reclaimed about 2000 acres on a number of these reefs.
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of course, they are building that airstrip. the admiral defended china's actions by saying these actions are legitimate and reasonable. someone disagree. angie: a lot of rhetoric, but what about actual progress? reporter: that is hard to measure because a lot of what we're seeing is not what is happening behind the scenes. again, china always holds this thread of establishing this zonese authentication which the united states would not necessarily recognize. admiral's begin in front of the public. nice.aking >> we do not aim to pose a threat to another country nor affect the freedom of navigation. there are no changes in our claims in the south china sea nor changes on china's position of the peaceful resolution of
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disputes. reporter: of course, the chinese that zone in 2013 of in the east china sea. the u.s. sent bombers through it in defiance of that. worriednd everybody is about that minor accident that could trigger something more. time now for a look at the stories making headlines. sources say intel is close to buying smaller rival altera. they say the chipmakers have been in contact his earlier this year and altera rejected an initial offer in april. altera rose 4% on friday. yunfung financial will buy
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shares in the investment bank. money to use the support the development of its financial services operation. the company's shares have been suspended since april 21 and are expected to resume trading this morning in hong kong. skymark will get an investment of $145 million from three shareholder groups. the rest will come from an airline investment fund and ama holding. skymark says it plans to show an operating profit by july. that is a check of the company headlines today. toshiba says it won't be able to close the book on its and counting investigations -- on its accounting investigation or at least another month. they say the review may go on until july.
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we had been climbing 3%, the highest in a month. areounds like investors reacting positively to what toshiba said on friday. bring us up to speed here. sheila been investigating these accounting problems for a few months now and they had a press conference on friday where they made some small steps toward resolving this issue. on delay in being able to announce their earnings. the members of the committee who are going to investigate the accounting problems that they are trying to get to the bottom of. hadproblems they have had something to percentage of a completion accounting where they had long-term projects over several years and have to figure out how much profit they are going to get from those. one area is power plants where they had a power plant that may take 5-10 years to complete and
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they need to figure out how much revenue they are getting in each quarter but also each profit. angie: how deep are these accounting problems? reporter: they don't know if this point. they had said that in the areas that they investigated so far, they uncovered about ¥50 billion in problems, a little bit more than $400 million. if investors knew it was just that amount they would be pretty pleased with it but the investigation is ongoing. angie: it seems investors want to buy and today at least. talk about the dividends here. reporter: there was some interesting news about the dividends. when toshiba announced some of the details of the investigation, they decided to discontinue their dividends. they said from the very beginning that they would like to restore that dividend if they could. the latest news that we got is that the nikkei newspaper in japan said they are looking to restore the dividend. the shares are up.
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angie: look at that drop right there as these problems are ongoing. how deep do they go, how far down the rabbit hole, nobody knows, but at least recovering that dividend. and the ceo has been very involved in this personally . he has taken a 50% pay cut and many of his management team are taking pay cuts also. angie: indonesia is already struggling with asia's highest rate of inflation and some fear the situation may be worsening. economists are predicting inflation jumped 7% in may with figures out today. they are trying to get that down to 5% and that sometimes means getting their hands dirty. months, they six have been training to grow vegetables more productively. but, she has not -- but, she is specialists,lture
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but the head of the indonesian central banks office. managesia's mandates these agricultural groups from beginning to end on the supply side. areook at how goods produced, how they are fertilized, how seeds are planted, and so on. targeting food production is the first step to targeting indonesia's inflation which has been stuck above 6% all year. food make up about 1/5 of the consumer price index. price stability is a key focus. the central bank has teamed up with regional experts across the country to develop programs aimed at producing steady supplies of produce. members of the farmers group say things go up about 20%.
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the program also opens up access to markets, for example helping farmers sell directly to supermarkets. and, it's surprised -- it supplies support for products that would usually be imported like these tomatoes which can usually sell for a higher price than local varieties. >> for local tomatoes, farmers only get $.30 per kilo. these we can sell for much more. that is what it comes down to four us. , these measures will move indonesia closer to becoming self-sufficient, another one of the president's goals. still, they say much more needs to be done beyond the field in the fight against inflation. >> is not just how much you plan and how much you yield, but how condition. they has a lot to do with the
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shipping lanes and transport. reporter: there's plenty left on the to do list, but here, at least some of the efforts are bearing fruit. coming up next, arguing for change but telling sponsors they would be mad not to stick with it. our next guest gives his pr take on the fee for -- on the fifa corruption scandal. ♪
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angie: check and some of the stories making headlines around the world. thunderstorms let -- thunderstorms brought little relief to the heat wave in india. intense heat is likely to continue today. temperatures in the southern states topped 45 degrees celsius over the weekend, between three and seven degrees higher than average.
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the plane trying to circumnavigate the globe powered only by the sun is on its longest, most dangerous leg yet. solar impulse left china heading for hawaii. the 8000 kilometer flight over the pacific is expected to take six days. the plane journey began in abreu dobby in march. in president has attacked english-speaking media accusing them of a campaign to force him out of office. have beennior fifa detained and the department of justice says more arrests are on the way. theyading sponsors say are deeply concerned about the corruption allegations.
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visa even said it would reconsider its position if reforms are not considered immediately. joining us is a marketing consultant who has been very vocal on what sponsors have been doing to fee for. -- two fifa. reporter: i think what we're seeing at the moment is a bit of a witchhunt. role but i think really what is happening here is that people are zeroing in on the wrong folks. i think if you look where the money is in world sports, a lot of it comes from tv rights and media organizations, and a lot of it also comes from sponsors and governments. i think the assault on sponsors is somewhat unwarranted. angie: but at the end of the day, those tv rights represent
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the audience and it represents the fans and access to that. what are you going to do? with sponsorships, these are companies that want those fans business. dollars.t those fans' at what point does a bigger come lumbering -- at what point does a bigger company put pressure on fifa? i think we have to realize that the people world cup is one of the most lucrative sports events and if a sponsor dropped out it would be filled by another one. we have to give the public credit and all of this. they actually understand the role of sponsors. some people will jump on social media and say we all like what is happening in fee for and we think you should not sponsor them. they recognizee,
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where the corruption is in fifa, and at the end of the day, the public just want to see great football on the field. that is something they're getting more than ever before at this time. angie: are you saying that the fans are really focus more on the sport rather than the sponsors and even fifa itself. guest: absolutely. i think if you are to walk up to anyone on the streets of hong kong, new york, london, paris and asked if is corruption at the head of world football, they will say yes. therefore, will you attack sponsors or do you care or will it stop you watching football? and the answer is no. look what happened here in sydney just the other night. we had over 70,000 people turn up to watch city fc play tottenham hotspur and tomorrow
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night we have over 85,000 people coming to our city fc play chelsea. people thaten any don't want to go to those events. fifa will have to change as a result of what happened in the last week or two. i think a lot of people have said ok, we've had enough now, things are before the courts and there will have to be change in leadership, change in governance , and a whole host of areas. i think that through this process the fee for sponsorship -- through this process, the grow.ponsorship will imagine what it would be as a sponsorship property when it is cleaned up. nowe: the problem is, right when you are trying to capitalize on that you are not necessarily at the bottom of the you curve. urve. the u-c
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how deep is this going to go? realizee also have to that the world cup is not for three years. the majority of sponsors will not be associating themselves with the fifa for three more years -- with the fifa world cup for three years. is for companies to focus on their other sponsorships at this time. that is where they should be putting their efforts right now. angie: what about your former employer visa. they cannot pretty harsh. -- they came out pretty harsh. guest: i think the thing with visa is, they are the most conservative organization in the current club of people sponsors. at the end of the day, visa is a
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conservative financial firm based in the united states of america where there is a lot of hostile media and where there are some very hostile regulators , and at times there could be a hostile public. i think they are just trying to buy themselves a little bit of time. if i was there, i would not have come out as strongly as they did. we have to member that sponsors have long memories and if companies like visa and others want to get the most out of their sponsorship and the time to come, they should really pull their heads and at this time. companies like visa are probably and to walk away now order to criticize it is blowing $1 billion down the drain. you did -- angie: you don't want to score
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on euro net. -- your own net. coming up next, picking up a piece of the big apple. ♪
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angie: welcome to the stock exchange. trading is underway in asia. last week we had this breakthrough. we are hearing that there could be another breakthrough agreement in mongolia, this time .ith a coal mine
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this time it could affect the whole industry in general. latte shopping is down. lotte talking about hotels. it is buying the palace hotel on .th avenue for $800 million certainly a showpiece for the koreans. angie: they have been talking .bout they talked about this
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investigation to the worker who embezzled about $20 million. thanks guys, that's the stock exchange. "e are wrapping up "first up
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>> this is trending business. china brings in the official gauge of factory exports. the debt drama in greece turning another page but still no deal. yanis varoufakis insists that he has not resigned. the fallout in football.


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