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tv   First Up With Angie Lau  Bloomberg  July 19, 2015 7:00pm-9:01pm EDT

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angie: wait in line. greek banks are set to reopen today as the great hints at some sort of debt relief. china's property prices strengthen again driven by rate cuts. the feds optimism about the economy makes investors the least bullish on record. coming to you live from bloomberg division headquarters right here in hong kong.
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let's s check in on markets in asia. the kiwi dollar is at 65 u.s. cents. we haven't seen that since july of 2009. it is at a six year low. indonesia is marking a drop. it is a public holiday in japan. it's all eyes on greece right now. debt relief could be in the cards but not just yet. the german chancellor held out the prospect of such a thing but only after athens agreed to take action on the bailout terms. what it angela merkel have to say? shery: she said she is prepared to discuss the matter which is a big deal because it ignores that debt relief -- it signals debt
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relief could be coming. greece has to successfully complete the first round of the new bailout deal. take a listen to what exactly she said. >> greece has been granted relief. private creditors were allowed a voluntary debt cut. we can consider such measures again and they are part of the mandate. once the program has been reviewed successfully, we will address that question. shery: only after the assessment of this first round of the bailout deal will they talk about debt relief. what that means is that these talks could come within the year. haircuts ons to great debt relief, that will not happen. not according to merkel. that would mean forgiving debt of about 30% or 40% and would violate european law. that's probably a big
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relief to investors and everybody with a bank deposit in greece. what about those banks? they are set to reopen today, later today. is life back to normal? shery: not even close. banks are due to reopen which is a big deal. capital controls are in place, limits on withdrawals are in place. even before, you could only withdraw about 65 u.s. dollars from atms. now you have a weekly limit of 455 u.s. dollars which is not much. you can also not spend money abroad. the athens stock exchange is also closed. tsipras i understand is shoring up support. what is he doing? shery: when we saw that vote on the bailout deal, half of the 64
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members of parliament voted against a bailout package. thatsts have been saying he now runs the risk of losing control of this party. they are saying they are seeing this cabinet reshuffle in order for tsipras to cement. he has replaced some ministers in this cabinet, re-shuffled after almost a quarter of his lawmakers rejected those bailout measures. you have many high profile cabinet members being replaced. this willre saying of cement his coalition and we could probably see snap elections in early fall. that: you can get more on and all of today's top stories on our digital destination am a bloomberg business. destination, bloomberg
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business. the alarming findings of an annual climate report. plus, more controversy from donald trump. you can find all of that on all you have to do is check it out. checking some other headlines for you this morning, the wto have tentatively agreed to cut a tariffs. u.n.-u.s. officials are hopeful the deal could come in force as soon as july of next year. is indian prime minister facing dissension within as he tried to overhaul labor laws. groups are calling for a nationwide strike in december.
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he plans to merge 44 labor laws into just for. -- four. toshiba will release a first report from accounting review today. local media say the initial findings may suggest irregularities may have been intentional. toshiba has lost nearly $4 billion in market value. in president may step down september or it they will hold -- september. the property market in china has long been a favorite of local investors. it was one of the few ways people could score high returns. ,mid the recent stock market property appears to be swinging back to firmer foundations. we have that at her joining us now. -- zeb joining us now. it shows it's the priority
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of the government. amid this stock market, the values are staying strong. this is closely watched by the market. latest numbers show that prices declined in 33 of 70 cities in june. it was 41 cities the month before. that shows that prices are actually increasing. the pace of price increasing is encouraging and it also shows that that government to mail us curbsmulus and property are having an impact on the market. really fascinating to see the property market sustained amid this volatility in stocks. it has been breathtaking in its own right. dramatic drop we saw in chinese shares in recent weeks. i understand the government is now looking to clamp down on a new source of easy cash for investors.
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that's right, online lenders. 3 trillion were water -- wiped off of the market he -- margaret equity value -- market equity value. it will make it more difficult for that cash to be doled out essentially. these online lenders will have to register, provide statements of risk, and make sure those who are accessing their services know what they are getting into. this is a lot of risky business if you will. angie: this is a very fascinating issue. craighead. in tim that thene lending chinese regulators are clamping down on, this is a serious issue.
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tim: if you take it in the of margin debt being one of those items that clearly helps spur the momentum frenzy with chinese retail investors, the overall margin number got to be as large as about 360 billion u.s. dollars. at the a lot of money. the good news is, that is now down to something along 30 -- $230 billion. compared to the overall market market, aboutnese 2.5%, but compared to the free float because so much is closely 7%,, it's something about especially if you take into consideration that a lot of stocks are not trading still. the numbers get very big. they calmed it down in these measures.
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it is still an issue at hand. but it's a welcome relief in the stock market. zeb: what trends are emerging here? tim: small caps led on the way up, then on the way down, and now they are back up again here it -- again. the smaller cap part of the shanghai composite was up 25% since the market bottomed a couple weeks ago. is only up 12%. that is still a lot, but there has definitely been a smaller cap skew to the market rent. angie: we have often talked of correlation but certainly the premium that
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people can arbitrage here. what's the latest on this? : we still see a disconnect. within that context, the average share is 110%.a if you look at the bellwethers specifically, it really stands out. there is a group of nine or 10 hpe,s we track where the -- themes, this game same stocks trading on mainland 18.3 times. that divergence is still quite wide. way back to the property market once again. we are seeing a little bit of a recovery and maybe people are feeling safer once again when they look at homes. tim: the property market has
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always been the investment vehicle of choice for chinese because there are so few other options that promise the most lucrative returns. it is an investment option for them where i still think the stock market is a bit of a speculation and eight punt -- a punt. we still want to get this transition to a core sustainable basis. i am not sure we have seen the measures yet to spur that. angie: thank you so much for that. thank you both for the outlook on china. up, expecting the dollar to strengthen even further against asian currencies in the coming months. we will hear from the bank's head of global market research. ♪
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angie: checking some stories making headlines around the world. president obama has sent the iran deal to congress. the u.s. security council will meet later today to vote on lifting the sanctions that were -- that would force iran to reduce its nuclear program. taiwan is said to have its first female leader after both major parties nominated women to run for president. np handed over half of its municipalities.
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former vice president jeffrey webb has pleaded not guilty to corruption charges in new york. millioneleased on $10 bond and will live under house arrest. he is one of 17 officials indicted for corruption. time for a look at the big event. the company has had success with its digital banking platform. selling to client like verizon and microsoft. two thirds of brokers surveyed by bloomberg rates the stock a buy. the feds, the bank of england, and others want to raise but new zealand is expected to cut. some analysts are forecasting
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three reductions in the coming month. they cited weakening economy in new zealand offering room to move. we are expecting south korea to announce it flow -- slows growth in more than two years on thursday. the economy is struggling from a stronger one falling exports and the recent merge outbreak. shin -- k we get cai developments. for more on the week ahead, here -- desenga.o zynga china is still slowing. there is question about that 7% gdp growth rate. how are you feeling about it? richard: it's definitely better.
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you can argue about whether seven is the reality or not, but what we can say is that in the last three or four months, policy has shifted to a very easy stance which is being enhanced by the recent polls in the equity market. we know that the china credit market has been very stable and rallied a bit further the last couple of months. the market which has a lot of international participation should be giving a pretty good signals. fiscal revenue has been ok. that is usually not ok in an economy that is going south. indicateose things may that the number is around seven. that's good enough for me. angie: do you think it is good enough to prop up the floor for commodities? we saw commodity prices continued to plummet, forcing the bank of canada last week to
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cut. and the commodity currencies here that are so dependent on china? the commodity story, clearly it is still in play. canada and new zealand are a little bit different from australia. faced negative oil price shocks over the past year. the shock for new zealand have been even more recent. china has had a bit more easing than the other two economies. i don't think there are many parallels there. the strong folding commodities last year were certainly due to physical development but also due to a rising u.s. dollar or and yen, it has been very stable. you are also taking that dollar
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story out of the equation when you are thinking about commodities. at least price declines should be more modest than we saw last year. angie: but we are still expected to see strength in the u.s. dollar, especially as the u.s. continues to recover. how is that going to play out for asian currencies? richard: i think agent -- asian currencies are still quite vulnerable within the currency complex. if you were to pick one area where you wanted to benefit position for a stronger dollar, i think asia is the place. not only is the fed tightening up setting the liquidity dynamic in the region, but you also have this uncomfortable situation where global trade is not recovering so that export dynamic is not recovering to offset. that is leaving asian asset markets in a very precarious position. angie: finally, what is the key thing to look out for when it comes to currencies of this week? the key -- richard:
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thing i think is still the fed. we are inside two months time rim -- timeframe. the fed is definitely going around a september or october timeframe. i think that rather than the chinese equity market are going to be the key to our refractive process. angie: thank you so much for focusing on that for us. good to keep an eye on for this week. coming up next, they won the y asia trophy.rcla
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angie: welcome back. english's football's top teams have been in singapore these last few days for the annual barclays asia trophy. >> it's important to reach out and connect with the enormous fan base we have in asia. it a priority for our football club. we need to be a club that competes at the top level of
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world football and in order to do that we have to continue to encourage and grow the fan base that we have. >>xit i would like to say -- i would like to see their -- say there is greater pressure to feed the frenzy. >> or is that we have limited resources. it is getting tighter and tighter in the summer window. the windows in which to come to visit all the locations we would love to visit is a real challenge. >> it has become a very expensive business. you need deep pockets to be a successful football club. new income streams are needed. do you see any coming our way? >> we are always a club that looks forward. we did that when we developed our new stadium. our gamet the top of
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when we started that project which we knew would be very difficult. it was incredibly ambitious. we are doing now is looking at what we are going to need to do to be relevant and at the top of the world's game 10, 15, 20 years from now. a critical part of that is how we engage with that global audience. it is challenging for us because as a football club, our revenues are relatively meager. 350 millionround pounds. most of that money is used on our players. the resources we have to really connect out there, it's impossible in a region of this size for us to be able to do that on our own. critical for us in that mission our partnerships we can develop with people like amrita.
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these types of ways of connecting with the fan base, which are mutually beneficial, are going to be the way forward for us. short before we take a break, a tiny superhero is making big news. man -- ant mand took in $58 million over the weekend. man" features paul rudd. likerned less than movies "captainthor" and america." mom has always been one of those people who needs to keep busy. if she's not working in her garden, she's probably on one of her long walks with bailey. she was recently diagnosed with a heart condition. i know she's okay, but it concerned me she's alone so often.
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so i encouraged her to get a medical alert button. philips lifeline offers the best options to keep her doing the things she loves in the home she loves. if she ever falls, or needs help, i know we can get to her quickly, and with her condition that can be critical. and even though she doesn't typically go far from home, the button always goes with her. these days, she's still as busy as ever. just the way she likes it. innovation and you. philips lifeline. lifeline is america's #1 medical alert service. visit today or call this number for your free brochure and ask about free activation. angie: it is 7:30 here in hong
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kong but the view we are showing you is tokyo. it is a long weekend. closed forts are marine day. the yen will be trading so we are will still -- so we will still be watching it. up."re watching "first ♪ the top story this hour. new home prices in china
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continue to show signs of a pickup. declines were reported for the first time in months in less than half of that 70 cities monitored. -- price rises were reported. this comes after several interest rate cuts and the rack they -- relaxation of property curbs. limits onightening online lenders. number ofeleases a new rules on saturday which they say are aimed at promoting healthy industry growth. they must now be part of established banks and internet finance rooms will need approval from both financial and cyberspace regulators. great banks will be open today three weeks after being closed to prevent a bankruptcy. -- restrictions on withdrawal rates remain in greece.
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prime minister alexis tsipras announced a new cabinet before the terms of a new bailout. said debt relief may be possible. has been granted relief. private creditors were allowed a voluntary debt cut and we extended credit terms and lowered interest rate. we can consider such measures again as they are part of the mandate. once the program has been agreed upon successfully, we will discuss the question. shows that the smart money is avoiding gold and indeed most things precious right now. david has been taking a look. gold has lost its shine. david: a little less precious.
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the price has been falling all of last week. it is falling further now a little bit. prices were really falling last week. if you take a look at this two days chart, things really fell on friday. inflation, mostly pointing to either a strong dollar and or less need. net long positions at the lowest on record as we kick off a new trading week. if you put it all together, net long positions on gold, silver, platinum, i think we are at five-year lows. how speculators are positioned, they are basically positioned to benefit from a further drop in oil prices. going into the weekend, the five most traded contracts on gold
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would pay out if prices dropped further. we are just looking at the chart that i put together which is quite boring. i'm sorry for this on a monday morning. it's a bit technical. something the traders would like to take a look at, especially when you have fairly extreme are pusheden prices to fresh lows or highs. it is more about the mathematical relationships between the ratios. to point out that it is the light blue line, 38.2% retracement level. erasureven rager -- right there. -- that level has essentially held strong over the past two or three years. we had a clean break last week and we are below that right now.
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watch out for the next level which would be 1124. we are about six blocks above that right now. angie: china releasedata last .eek david: china and india are big buyers of gold. central bank gave us an update. gold reserves they had. the last time they gave us an update was in 2009. we were at just over 1000 metric tons. people were expecting to see a doubling or tripling. that's not what we got. over the past five years, we essentially saw an increase of about 100 metric tons per year.
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happened, iwhat haven't seen my nephew in six years, and he's not very tall. i was expected him -- i was expecting him to be a lot taller than that. people were questioning whether or not the pictures -- figures the pboc put out were accurate, but some people asked what the incentive would be to understate. obviously negative for gold. speaking of which, let's check other commodities right now. copper is seeing a little bit of a recovery. -- that recovery in property could be helping. oil continues to fall. that.crude oil is below that forced bank of canada last
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week to make a surprise cut. standard chartered p/e -- saidard chartered ceo has they need to kickstart the performance and speed up decision-making. iniette: when he took office june, he said he wanted to eliminate waste and excess. this is one of the first big moves we have seen from him. he wants to develop a plan by year end. restructuringegin and simplifying how the divisions are. this is how it will work. of winters, you have the deputy ceo.
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you have the head of the three client businesses. then you also have the regional and operational chief. a way to simplify this a little bit for the bank, winters says he will take responsibility for all three of the firm's client businesses from the deputy ceo by then. rees has really been the architect of corporate banking. here, a big overall because you have seen what has happened the last two years. peter really failed to reverse the drop in earnings. it dropped 30%. we have also seen the stock sliding quite a bit, wiping out a third of the bank's market value over two calendar years. they are trying to do more moves. asia being the biggest market for them, they are cutting about 4000 jobs over two years. about -- this year is
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is up about 5%. another struggling bank, barclays, said to be cutting 30,000 jobs over two years. it seems like they are speeding up the cost cuts as well after letting go there ceo, antony jenkins, just as month. these numbers of possibly falling below the 100,000 local workforce by the end of 2017 for barclays. angie: thanks for that. time now for a look at the top corporate story this hour. martin hasheed agreed to buy the world's biggest maker of military helicopters for more than $8 billion. they are expected to announce a buyout of united technologies today in what would be the largest aerospace acquisition in three years. seall for sikorsky would
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him as the world's largest contractor. alibaba is dividing into the -- into another company. it will hold about 15% of alibaba's shares. google investors have enjoyed the weekend after the company added $65 billion in market capital on friday. that is more than the value of hp. this came after google beat earnings estimates. it boosted the wealth of cofounders. they pocketed $4 billion each and their fortunes have now grown 24% this year. those are your top corporate headlines this hour. angie: a new report from
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bif sees arecasters, housing glut in new zealand. bank recently called sydney's housing market crazy. does a glut mean that sanity is coming back? >> if it was only that simple. you could argue that sanity has already returned in most of australia but it is likely to remain elusive here in sydney. entitledeport was building australia 2015-2030. new stats on0,000 homes. declining until we have a 12,000 home oversupply by the year 2018.
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population growth is slowing as well. it has been running at about 2% in australia. the report sees that slowing to closer to 1.5%, particularly in those states where the resources boom is winding down. angie: i guess that old adage, in realate -- adage estate, location, location, location. varying prices city to city. we arecould argue approaching a surplus situation. if you had south from here to you can and melbourne, already argue a case that there are too many apartments in the market. bis see there is likely to be some downward pressure on the price there. it causes and easing by single digits. not a double-digit collapse.
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recession in home building, just a correction from the unsustainably high levels. sydney could be the exception. the economy is continuing to grow very strongly. sees the undersupply problem taking five or more years to clear. angie: thanks so much. moves up next, china again to support the stock market and the slowing economy. we are going to assess the chances of success. ♪
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angie: checking some other stories around the world. mitsubishi has become the first japanese company to formerly apologize for using pows as forced labor during world war ii. this is in los angeles.
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campaigners say it is an important gesture ahead of the 70th anniversary of the end of the war. pows recognize that the who worked at plants at miss you mining camesubishi not just from the united states, but britain, australia, the netherlands, and other countries. i have the opportunity to meet with the son of a former pow today. we want to extend our apologies to others as well. dozens of cuban protesters have been arrested in aheadnna ahead -- havana of the reopening of the u.s. embassy. known as the u.s. intersection will be the first american diplomatic presence in havana for 54 years.
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won't be and stripes flown at the building until an official ceremony in august. -- surferian poster survived a terrifying encounter with a shark. ning was competing when the shark came too close for comfort. he was knocked off his board but was not hurt. safety beforeto organizers ordered everyone out of the water and abandoned the finals. kept pounding at my board and i just kept kicking and screaming. i just softens. i didn't see -- i just saw fins. i didn't see steve. i punched it in the back. let's turn back to china and the latest signs of a warming property market. ronald.t more with
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what does this tell us? we know some cities have been coming back, but now more prices are rising in cities. does this mean that people can breathe a sigh of relief when it comes to property values? i think this comes as a result of a u-turn in property policies. basically, we are seeing the property market in big cities as stabilized somehow. we have yet to see whether or not this is sustainable. timing is very sensitive because the market has been performing poorly. the housing market is very important to china's government to maintain and sustain the economy growth. angie: when we talk about a turnaround, it's really incredible to see what has driven that rise in equity markets was the slump.
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now, the property slump seems to be recovering a little bit and now we are seeing the inverse where equity markets are dropping. also now, it moves from the pboc and more importantly putting a -- csfcom the cfs the with billions of dollars to support stocks. are creatingment measures and policies to support the market. basically, we have seen the stabilization of the asian market now. but, the market confidence has yet to restore. we expect to know further policies which have yet to be announced.
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you need a healthy, strong market. you need to have strong public earnings. angie: what do your sources tell you in china as to what policies we can expect? government is trying to stabilize the economy. i think that more liquidity measures will be on their way. infrastructure and property markets. and support amote high-value industry to support .he next wave online banking. angie: consumers are not necessarily well versed to how volatile or risky that might be. they take these online banks at their word.
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9% annual return. ok, my money is safe. but what is reality? >> their money is not safe. it is very high risk. we have seen some tightening in the policy over the past three weeks. over the weekend, the government tried to tighten up the internet as well. angie: the last time they tried to shake out risky banks was due in 2013. that's when we saw rates surge to close to 13% up for the interbank lending rate. could we see something like that happen again? >> i think the government this time will be very cautious. we are already seeing a collapse in the stock market for a few weeks. basically, i think the
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government will take a cautious and patient and sometimes harder approach. they will crack down on those areas which are high risk. at the same time, the government will give some time to improve. we shall see slow reform in the next few months. angie: how do they crackdown will be the question and how it will affect the general market. thank you so much. find out why a south korean chemical maker could be the day's biggest market mover. ♪
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angie: we are taking a look at
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the open for south korea and australia. new week, new winner. [laughter] lg camera, the chemical manufacturer in south korea offering profit coming out on friday, earnings looking really good. 491 million dollars which beat estimates as well. miss.were a slight buy.thinking it's a strong angie: greece and china have calmed down. we have been tracking samsung over the past few days. these shipbuilders in south korea have really had a tough run.
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it big in the middle east and perhaps i can sustain the business. but still, the shares are down significantly. there is a trillion yuan potential second-quarter loss. we could see extended decline. we are seeing the auto samsung down. the upgraded it and then seven --s later downloaded it undid that. 11% lastless than week. we could see extended downward pressure. angie: that's the verdict from
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the stock exchange. back in one hour to see how those stocks are shaping up. greek banks set to be angie: withdrawal symptoms.
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greek banks are set to open as germany hint that some sort of debt relief is coming. credit crackdown. china moves against online lenders who are seen as influencing the recent stock market dropped. growing optimism at the fed makes speculators the least bullish on record. welcome to "first up." coming to you live from our studios in hong kong.
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australian equities are unchanged. the aussie dollar is at 73 u.s. cents. let's get to it to start the session in korea. japan is closed for a market holiday so no markets trading there today. over in south korea, we are seeing pretty much a flat market. conviction right at the start of the session this morning in asia. greece has reached the make or break reimbursement deadline to the ecd and it finally has some money to pay the bill. that is after the new bailout was approved last week and things could get a little bit easier later in the year. everybody?u tell shery: july 20 was the dreaded deadline.
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that's today and greece may have some money to pay the ecb. because credit according to a you law, it bans the ecb from financing government. if you see a default, that means the ecb would probably have to pull support from greek lenders. billion payment to the ecb, including interest. now that we have the bailout package approved, they have the on thursday the ecb oh -- ecb. today, butet to open still, capital controls are in place. they cannot transfer money overseas. their weekly limit of u.s. dollars. 455 still, capital controls are in place. things could get a bit better later in the year. we are hearing that debt relief
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could be in the cards. german chancellor angela merkel has signaled this could happen, just not now. --would happen after the ss after greece's successful completion of the first round of the bailout. greece has been granted relief. private creditors were allowed a voluntary debt cut. we can consider such measures again as they are part of the mandate. once the program has been reviewed successfully, we will discuss that very question. she is saying that after assessing the progress that greece has made, the debt relief could be possible. this is a very controversial point. debt relief better than a debt haircut. is that option still on the table? shery: it doesn't look like it at the moment. basicallyrcut would
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be a reduction in the nominal value. people are saying that's not possible because of european law itself. the german finance ministers -- debtter has said that a -- does not work with european law. there could be so workable solutions in those forms but not a debt haircut. half of the people who voted no against this deal came from within that dominant party. how is tsipras shoring that up? 64 lawmakersf the
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voted against the bailout. now he has to -- shery: now he has to deal with the repercussions. he is replacing some of them. analysts are saying that is a way to cement his coalition and will probably get him some more support. angie: thanks for that. china is tightening its grip on online lenders following criticism they might have contributed to the recent stock market throughout. -- drought. let's bring in tim craighead. a lot of challenges ahead for china. indeed. the discussion you have mentioned about online finance and regulations, you have those types of mechanisms being put in place to try to put a handle on the market.
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you have obviously mass support measures that are in place. bloomberg news folks broke a story at the end of last week about more than $450 billion in total support essentially being in place. it's a tremendous amount of support to see in place. angie: it at least brought them welcome relief to china stocks. a lot of volatility there. are there any trends that jump out at you at this point in the roller coaster ride? there are several. it's interesting looking at that support issue. we will come back to it. one of the most clear trends through this whole market volatility has been small caps. they laid on the way up, they plummeted on the way down, and now they have led on the way back up. this chart is showing the white
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line of the shanghai stock exchange 180 larger cap index. the yellow line is the 380 index. you can clearly observe the higher degree of volatility since the market bottomed in early july. the 180 is up about 12%, the 380 is up 24%. that aspect is part of it. if you look at the shanghai composite, the bellwether index, take the top hundred of those stocks, you now have a group of at 17.5hat are trading times forward earnings. if you look at the rest of the shanghai composite, another thousand stocks, trading at 33 times forward earnings. you can see the disconnect of occurring between the large and small caps. small caps continue to be highly valued. angie: what about the disconnect between a and h shares?
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tim: that is another significant phenomena within this market lace. we are continuing to see a shares trading higher. h shares continue to be more muted. there are a group of bellwethers , since the support measures went into place at the end of june, the a shares have outperformed by 15% of this bellwether grew. , 11 timesle on h forward. on a, 18 times. that divergence is another one of these disconnects. craighead. always a pleasure. quick check on some other stories making headlines. home prices in china continue to so shines -- show signs of a pickup in june.
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27 cities recorded price rises. this comes after several interest rate cuts. steps closer to a deal on cutting tariffs funds. trade negotiators have limitively agreed to funds on a range of products. to the will now go back member of nations for approval. they hope it could come into force as soon as july of next year. the u.s. economy has made gold speculators the last -- least bullish on record. managers are holding smallest net bullish bets on gold. combined net long wagers on
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gold, silver, platinum, and palladium are the lowest ever. gold features dropped to their lowest level since 2010. let's take a quick look right now at some of the gold miners trading in australia this morning. sentiment isllish having impact on australian gold miners. down close to 3%. evolution mining down close to 4.5%. standard chartered ceo bill winters has installed a new management team to develop a new plan by the end of the year. needs tohat new team kick performance and speed up decision-making. even on have been following this for us. forstors have been waiting this moment. the question is if it will work. : at the start of june when winters took over, he did say it was time to eliminate waste and excess. this is part of the overhaul we are seeing.
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they want to develop a plan by the end of the year. formalized possibly in october. by winters to be led and the deputy ceo. it also tends to simple if i some of the geographic divisions. he will have the head of the three client businesses. you have the regional and operational chiefs. takers said he would responsibility of all three of the firm's client businesses from the deputy ceo by october 1. rees was the architect of the corporate bank. he weathered a lot of the changes when a lot of people left the firm. we have seen some moves already. they cut 4000 jobs through 2017 which will save about $1.8 billion.
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they are generating most earnings from asia. the last two years have failed to reverse that drop in earnings. you talk about the stock slide as well. less than a third of the market value, a lot of it was what was going on. the stock slide has been the big focus here. the pretext profit was mostly heard by the legal bill. angie: let's take a look at another financial firm, barclays. word is now massive cuts. times said they are cut -- they are set to cut another 30,000 jobs in the next two years. that would mean the global workforce for the bank would be under 100,000 i the end of 2017. angie: thanks for looking into that for us. losing credibility. regressedhy china has into a frontier market.
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angie: checking some of the stories making headlines around the world now. mitsubishi has become the first japanese company to formally apologize for using pows as forced labor during world war ii. speaking in los angeles, the senior executive offered a statement of regret. aheadn important gesture of the 70th anniversary of the end of the war next month. pows recognize that the who worked at plants at mitsubishi mining came not just from the united states, but britain, the netherlands, australia, and other countries. i had an opportunity to meet with the son of a former british pow today.
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we want to extend our apologies to others as well. taiwan is to have its first female leader after both major parties nominated women to run for president. party nominations inlowed a huge defeat november. dozens of cuban protesters have been arrested in havana ahead of the monday opening of the u.s. embassy. office will be the first american diplomatic presence in havana since -- in 54 years. the flag will not be flown at the building until eighth -- an
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official ceremony in august. let's check in on market ranging here in the asia-pacific. south korea is down. it is close to a fifth of 1% lower. australian equities are also down, led mostly by gold miners. that is the sentiment among most investors. let's get more on the markets. managerder and fund joins us now from singapore. let's start with china here. over the weekend, there were some big moves in terms of support-- shoring up for the drop in equity prices or shanghai mainland equities but also the move to restrict online banks from questionable lending. do you think this is enough? china is taking all
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the wrong measures. china's set of rules on online banks is quite unheard of. big shareholders are being punished in this case. they seem like they are in panic mode. i know markets are going up, but that is not a fundamental factor. fundamentally, markets will probably regressed. it is probably on the verge of becoming a frontier market. i think this is probably ill-advised. pretty -- that is
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a pretty harsh statement that china is regressing to frontier markets. do you think it is because of all of those interventions that it imposed on the markets that really left a lot of people scratching their head as to just how flexible are these markets anyway? not fully currency is available. access is limited. a lot of large hedge funds are being forced to suspend. -- forced to suspend redemptions. suspend companies to shares for noneconomic reasons that are not related to any company plans but they just didn't want the stock prices to fall, that is not actually a reason. that is assigned china had regressed and they are not willing to accept the up and
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downs of the market which is based on sentiment and moving prices. it shows a very immature attitude to the capital market. they should spend more time on researching those hedge fund companies and taking action on the stock. it is kind of pointless in a way. currency. very risky you can't really trade in and out easily. those are all frontier market characteristics. these need to be addressed. china will learn and react and fix these measures. currently, the current set of panic. reek of angie: what do you think is going to happen this week? we saw some price recovery in
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chinese market last week. it seems to have combed down. is it the calm ahead of another storm? what do you think will drive markets this week? we are already seeing some sellouts. week to week, it's hard to predict. foreign large investors now know what china's policies are. they will seek to reduce their exposure. i don't have a week by week preview but it is kind of putting a lot of people off china and they will -- a lot of people started buying into china . now they will start moving out as soon as they can and will head pulling had shares -- shares.
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it will take weeks and months to move acquisitions. it will not be immediate. angie: we will keep an eye on those foreign outflows. it is an important marker to be sure. thank you so much for joining us. next, we're going to have the details about the headlines after this short break.
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david: welcome back. it's monday. july 20. as we kick off a fresh trading week, analysts are saying the dollar will continue to be in favor. index is at a three month high. inflation out of the u.s. on friday came to match expectations. the big disagreement was construction of new homes, topping the second highest reading there in two years. near 2007 highs. one of the other currencies which looks to be out of favor is the kiwi dollar. it's pushing closer to 65 u.s. cents.
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the rb and the became the first central bank to start jacking up rate early last year -- rbnz it is completely undoing and reversing all those rate hikes. similar thinking in europe. analysts are calling for the euro to fall further. 28% or 29% i think. i have a two-year chart for you on the kiwi dollar right here. 2014, 2015, that's where they
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jacked up the rates. we are at 3% right now and we are expecting it to fall further simply because of what economists are saying about them undoing everything that happened last year. angie: before we take a short break, a tiny superhero making big news in the theaters. -man" tookew film "ant $58 million in american box office is this weekend. rudd.tures paul read -- it earned less than other marvel movies but it showed that marvel can promote lesser-known heroes. ♪
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angie: the market is closed in japan today for a national holiday. we will be tracking all of the other markets as they open on this monday. you are watching "first up." the top story this hour, greek banks will be open today three weeks after being closed to prevent a bank run. asvices will return such
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depositing checks but there will still be restrictions on how much money you can take out. tsiprasnister alexis announced a new cabinet ahead of a second parliamentary vote on the terms of the bailout. said debt relief may be possible. >> greece has been granted relief. private creditors were allowed in voluntary that cuts. we can consider such measures again as they are part of the mandate. once the program has been reviewed successfully we will discuss that very question. china is tightening its grip on online lenders thinking they may have contributed to the recent stock market drop. they are promoting healthy industry growth. they must all be parts of and internetanks
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financing firms will need approval from both financial and cyberspace regulators. we are getting reports of more big job losses at barclays. more than 30,000 staff will be cut over the next two years. the possible cuts come just days after the new chairman forced out ceo antony jenkins and replaced him. investors who still think gold is a good investment at the moment, it is probably a little lonely out there. data shows that the smart money is actually avoiding gold and indeed most things precious right now. we have david tracking this story for us on the doubling -- dulling of gold. obviously we will see if these price declines continue. we may need to rethink the concept of precious metals.
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before i get to the gold price, let me show you what's happening right now in asia. the south korean index and australia. down about a quarter of 1% each for both markets. i have mentioned this, gold prices. i will show you how things break down. basic materials. one and a quarter of 1%. mostly the gold miners are leading the declines. not a very good day or start to the week.
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we are now pushing towards fresh five-year lows. you're looking at the least -- were basically back to levels of 2006 since we .tarted keeping records we look at the contract cable there. is it where the interest was going right now. it will be in focus much of this week. my apologies for this. it is monday and very early. it is important to look at this now.
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the short of it is that is where it was detailed quite strongly. this next thing you're looking at right now was really what traders are hoping to provide some support for the gold price. people were expecting it to double or even triple off that level. 1658 metric tons. not supportive of goal. back to you. let's take a look at stories making corporate headlines.
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>> the initial findings may suggest the irregularities may have been intentional. he may step down in september to take responsibility. yahoo! will spin off its stake in alibaba. the move is expected to happen in the fourth quarter. investors enjoy the weekend after the company added market capital on friday. as more than the value of hp.
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they pocketed $4 billion each. those are your top headlines at this hour. australia will require the weakest lenders to hold billions in extra capital from july of next year to protect them from future shocks make them the most secure in the world. what do these changes mean. it is no huge surprise this was foreshadowed. now the authority is following through on this recommendation. banks will go to 25%.
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they will have to hold a lot more capital. goldman sachs estimates $12 billion in extra capital. one,u break it down one by the largest in australia will probably require something in the order of $3 billion extra capital. galatians come in july of next year -- regulations will come in july of next year. the query bank is the other bank that falls under these new requirements. a little in the green this morning. after the unveiling of these announcements today, the
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resilience of the banks and the financial system in the goal to have australia's thanks ranked in the top 25%. >> you mentioned the mortgage market. is it likely to settle down soon viewed they suggested a housing oversupply is on the horizon. case.t is potentially the it notes an incredible boom in housing and construction. it is a record. a 12,000 house glut in australia. for mortgages, it depends on where you are. argue itrne, you could
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hasn't oversupply issue. see a recession other than a correction from unsustainable high levels. they estimate it will take five years to address the undersupply problem. crazy.ike it will remain >> ok. thank you so much for that, paul allen. let's turn to china. the property market their has been a long favorite. it was one of the few ways people could score high returns. theed the recent -- amidst recent stock working -- market -- 70 city showed rises declined.
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fewer cities are showing price declines. these are the main cities that they track. now just 33 have posted a decline. shanghai leading the rebound. we are seeing a property revival. the government in china has taken any pains to make sure the property market holds up despite the volatility that was in the stock market. wild swings. the trend is encouraging. this price rebound trend is solid. it is measurable. that is important. so many chinese have put so much of their savings into the property market. >> ok. thanks for that. coming up next, the gunners
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turned their sights on asia. we ask a ceo of the arsenal tactics for this part of the world. up."re watching "first ♪
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angie: checking stories making headlines around the world. triggering a 60 day review and intense lobbying by advocates and critics pick the you and meet to look at sanctions that were aimed at forcing around to reduce its nuclear program could the council is expected to improve the move. and the world of formula one has paid tribute to james who died nine months after suffering severe head injuries. his family confirms the depth at a hospital in nice where he grew up. use injured when his car slid
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off the track. he hit a rescue vehicle and used. the team says that they are devastated by his death. in laying out reform plans for the world cup. him he also announced the announcement of his successor. bond and will live under house arrest. top of english football teams -- the annual barclays trophy. linda asked how important asia is to the club.
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>> an absolute priority. if we ignore that, we would be .ery foolish we need to compete at the top level of football. we have to continue to encourage and grow the fan base that we have out here. >> it has become a very expensive business. you need deep pockets to sustain excess sex will -- to sustain a successful football club. >> the club looks ahead. we did that when we developed a new stadium. we know it would be difficult project. it is incredibly ambitious and forward-looking. we are looking at what we need to do to be relevant at the top of the world game 10, 20, 30 years for now.
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how do we engage with that? it is challenging. as a football club, we'll be --und 350 million fans dollars. in real terms -- and most of that money is used on our squad. the resources that we have to really connect that is it is impossible to be able to do that on our own. it is critical for us in that mission in the partnerships we can develop with people like emirates. we did a launch. these are times in ways that are connecting with the fan base. about how it may do more competitive. they're coming up with their own
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stadium. >> we always feel the pressure. it never goes away and it never will. [laughter] glad the other clubs are building their own stadiums. i think it is fantastic for the league. we built our stadium. now we are looking ahead. we are building our digital presence. we can engage globally and connect with people personally. >> you talked about how you spend a lot on your players. the golden glove winner -- will he be a game changer? >> i think he adds belief to the squad. he is a leader. here -- he is a winner. everybody stands a little bit taller. that is fantastic to have.
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never forget our philosophy is built around giving junk layers a chance and having them come through for us has been the young-- giving these players a chance and having them come through for us has been the story. >> back in school -- >> i did. i had the privilege to play a couple of times. did youanding viewed ever imagine you would be the ceo of an outstanding football club one day? >> i really didn't. it has been a fantastic joy and privilege. it is a way of acting. and more importantly, how you are looking forward. these are things that connect with me deeply. .t gives young people a chance
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earning your success. it makes it meaningful and personal to me. >> time for a look at the big events we are falling for you this week. the company has had success with its digital banking platform. including verizon and deutsche bank. thursday, we underline emerging central-bank policies around the world. .ew zealand is expected to cut indeed analysts are forecasting reductions in the coming months. thursday, we are expecting south korea to announce its slowest growth in more than two years.
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struggling and slowing exports in the recent murders outbreak -- mers outbreak. expected to rise from the june albeit from at -- snail pace. coming up, big losses from samsung. a blow to the ship making industry. we check on market movers when "first up" returns. ♪
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angie: ok. a quick check on the markets. there were just watching the yen
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for any market news. down, seeing gold miners but making a bit of a rebound this morning. it is bouncing back from a down start. , starting the day in the red. but now we are seeing some recovery. we're seeing a little bit of a reversal act into positive territory. futures are pointing to a higher open. welcome to the stock exchange. let's check in on what reporters are watching this morning. >> i have a good feeling about this.
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profits is higher than a year ago. it also beat estimates. sales were a bit of a mess. stop.ales on the >> they're not selling as much. i thought it would be a big mover. [laughter] >> it's ok. you get a chance. samsung -- he is brewing in -- the company is not confirming that. the stock continues to sell off as a result. down about 8%.
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it is really interesting. there upgraded less than a week ago. last week they lost about 11%. all right. thank you everybody. ♪ trending business coming up next. what are you watching? >> the week ahead. the focus has really gone on to the fed now. we will be discussing that about an hour later. >> are they to be believed? >> exactly.
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>> exactly the goal. >> interesting. that is it for us. trending business coming up next. ♪
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>> it's monday, the 20th of july. this is "trending business." ♪ >> this is what we're watching. the rate cuts and the relaxed regulations seems to be working. lawmakers debate rea -- bailout reforms.


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