tv Bloomberg West Bloomberg August 24, 2015 8:30pm-9:01pm EDT
angie: it is 830 a.m. in hong kong are you it is a bright day ,utside the dark in the offices on the trading floor. the hong kong stock exchange. that is because this global rout continues. it is extending today. you're watching "first up." and the top stories this hour. stock markets in asia are falling rather this morning as the global rout goes on.
plunging moreom than numeral percent. isning in this rout, the asx lower. kodpi also -- lower. and if you are difficult day. another official mentioned failing to prevent stock angie the most since two dozen seven. the shanghai composite tumbles it by 5% erasing its gains for the year along the way. lowestg seng fell to its in more than a year. futures on the csi 300 decline by their daily limits. all street has offered refuge. it was a roller coaster session. stocks is 7% of the open.
it did not last ending with a first direction 2011. 30 minutes into the session in japan, australia and korea, damages. david is standing by with an update. this fundss down to in the japanese session. -- there is a rally and i will break that down for you. me can you the levels right now. 118.5 or youyen and down for the seventh straight session. if with the lusts together monday and tuesday. you should he down 7% rate percent. you do understand how the index went from the peak two weeks back to a correction necessity.
that market is also on. is trayvon c4 the japanese session. volumes easily double we're seeing this time of the day. we are seeing heavy selling pressure at this point. losses, if you want to put a number two it. 100 --tes of the trade, $200 billion. of cash that has been wiped out. financials are getting a bit of above the, point eight of 1%. 5000 first time since 20. notice how is it looks and we're down .5%. the worst day in four years that is how we're look out. you don't want when 5%.
it is still a sea of red if you include everything together. oil and gas will more in just a moment you 5%. and down 4%. and mines are getting hit. let's see how this plays out. requires will definitely hearing more from regulators. central-bank right before you hear came out there to wrap up 82 stabilize markets. asia-pacific down 1.5%. back to. angie: japan's economy minister
has been digging in parliament. let's go over to yvonne man. you and monitoring the headlines. fun: reporters say you see in the safe asset. evaluation towards the japanese economy he did say is correct the safety little price drop makes the price for japan's much more difficult. he did answer some questions about the health -- hopes of using. that is what members are linked administratione is going to prevent this economy. he said the economy is continuing on recovery trend overall. he said the fundamentals are still seen as sound as is the u.s. right now. he said when it comes to the routehop for this market
that we have seen their needs to -- and the response boj will decide what is next in the privateng sector moving fed by bit. the yen strengthening and we did see some weakness up to the opening. anti-: thanks for that. a lot of central bank's' hands are being forced hereby this. sentence.the the selling pressure is escalating especially malaysia and indonesia. the crossover to our selfies asia correspondent. how is it looking? china -- concerned by
is prompting investors to pull their money out of emerging markets. nowhere is it more evident when it comes to indonesia. investors are selling out. feverfew have getting smacked. getting smacked. -- intory in equity for the equity market. it lost 9% in the last five days. global funds pulling out in a big way. almost 1.5 and dollars floated so far this year. the leisure also sold off to stocks getting down to the seven-year low. within $2 billion for outer malaysia equities. the rink it at a 17 year low. ringgit at a 17 year low.
one investor said he could not see last night. >> i think you are right. a lot of people cannot sleep. over in the philippines perhaps things are a little bit calmer there. it is turning out to be a regional start relatively speaking. even that market has not been spared. the philippines seen as a relative safe haven. low levels of investment in its bond. also because it is susceptible to weakening commodity prices. that vote of confidence came from the imf. it's a the philippines is most insulated from a slowing china. it is hard to think of a country in a better position. investors through the baby out with the bathwater closing stocks at a seven-year low. trading was halted yesterday.
authority said it was because of a technical glitch, denying speculation the hold was intentional to losses and however you look at it, it is wrist shot. money off the table in times of market turmoil. angie: risk off indeed. thanks for that. time will stories on terminal. : analysts are expecting underlying profits to fall by nearly because of the slumping commodities. iron or saint to its lowest price in six years. nearly 70%have: by credityota is production. a decision is based on slowing sales terror with local authorities and shares fell four
years yesterday on news is closed for another he is a veteran west. to cut capacity at its plant. afters is cutting prices a production slowdown failed demand. the world the producer has as much as microsoft. it is allowing some customers to defer is its four-year target. those were the top corporate and you: here is how far can on you the world eating ipo, alibaba shares have limited to a record low. stephen engle is joining us from work. how much of all is to the market route and how much because of worries about alibaba?
someen: alibaba was seeing weakness even before this global route and sentiment turned negative on the chinese stocks because there are a number of concerns. there were concerns about counterfeits goal -- counterfeit goods being sold on the website. growth in the most recent order was at a three-year low. jack ma has been diversifying roseg to find new areas of . he invested in india, brazil, russia. he has invested in the big electronics brick-and-mortar retailer. he is trying to find ways to go beyond the online sales. thatber of analysts says has saturated to a certain point. where do you find new avenues of growth? we can see since it was september 19, day one that the world eating ipo opened at $68.
by november 10 it had reason to $119 $.15. now intraday it went as low as $58 overnight. down as much percent in one session. closing at 65.80. since that aegon november 10. it has lost $120 billion in market value. this is a company that is having some problems with its own business model. also the slowing chinese economy . because when you consider if you targets. stephen: you want to catch a falling knife or something that is on the way back up? i -- analyst' recommendations have updated so they are not
stale. there is alibaba. the average one-year target price $97 19. midt of these updates were august or so. around the time when alibaba was trading at $70. it is down to $65.80 it is pertinent here because this is factoring on all the pressures. you have to decide. the big competitor also 23 buys and one cell. not as of an upside on the price target this stock still trading above its ipo price. at 23.9are now trading three which is where they had that secondary listing december of last year. angie: plenty more to come. you're watching "first up" as we
angie: police in thailand say they do not know if they suspect in last bombing is in the country. the investigation has been hampered i broken cctv cameras in the center of the city. 20 people were killed in more than -- and more than 100 wounded. police have no motive for the attack saying it could be anything from politics to religious beliefs. some evidence has been sent abroad for analysis. canadian police say like mailers have begun using the ashley madison website hack to make extortion attempts with unconfirmed reports linking the least twoh to at suicides. hackers exposed information
users36 million worldwide of the site which encourages married people to have an affair. owner is canadian offering a $378,000 reward for information leading to the hackers. has awardedllande the highest honor to three americans and a briton who foiled a gunman on a crowded paris-bound trade. -- trains. president's day they risk their own lives to -- the president saying they risk their own lives. one man who was shot in the neck will also be honored. a moroccan man is the questioned over that incident. a standoff over the korean peninsula is over for the time being. after marathon talks, the north agreed to lift its semi-state of war and the subsidy would hope
-- called propaganda broadcasts across their ritual quarter. -- mutual quarter. is this going to hold? for the timeelp being. thatems to be a dance these two nations go through along that border. it was very tense this time. there was actual shelling which is pretty unusual. theyseem to have decided should ratchet down the tensions. has beeneryone watching him. there is a lot of uncertainty as to what he means for the regime and what he means for the relationship internationally. any clarity from this recent incident? can have a hopeful reading out of this because there was a lot of concern as this thing began to escalate that this guy is not tested, we do not know if he will all of the same pattern of his father and grandfather, pushing things to the brink and then stepping
back. very unpredictable. there was a lot of nervousness that maybe things would go different this time, that he would not use the same playbook. it does appear that he is following the same playbook. pushing things as far as he can go in and getting concessions. he did get concessions. there will be further talks and he got them to stop the propaganda broadcasts which is what he was after. he comes out a winner on one level. angie: they both come out looking fine. is that the good that is coming out of this? >> both can claim victory. the fact is they are talking to each other. they are talking about further negotiations, about reviving reunions of the family members who have an separated by the war. if the style of discontinue it is only for the good. angie: he has purged a lot of his inner circle and has made questionable investments into
north korea, whether it helps the real economy or helps its people. >> we will see. he is very young guy. he has been in power for 3.5 years and this is one of his biggest tests. there is some fear that he is planning another nuclear test with the annual anniversary of the workers party which is next month. angie: thank you. how does this compare with those of the past the clock and ask when this -- when does a rout become a crisis? stay with us. ♪
of commodity related shares hitting declines -- leading declines after closing at the lowest level since 1999. over in seoul, the north and south looted talks. apologizing -- concluded talks and apologized. no compromise today, extending the rout in the equity markets. futures pointing to a lower open. stock selloff is continuing in asia this morning with chinese markets get to open . should we be calling this a full-blown crisis here? it kind of feels like one but yvonne man has been taking a look at the numbers and the details of all of this area to feels like one but is it one? yvonne: what is in a name like crisis? quite a lot. quite loaded. we were seeing what is a good
measure of this? crisis, wefinancial are still far away from seeing dramatic levels like that. let's take a look at the southeast asian currencies. that will be a better gauge of how we see market sentiment. the current -- currency is what will be messy on the economic side. it will be affecting countries impact on balance of payment, dollar debt. also affecting the prices of imports. take a look at the malaysia ringgit. compared to what happened 30 years ago it was 68% up. still quite a ways away if you ppiyah. the ru someully this will calm nerves. the snowballing effect that we
have seen. there is no rationale anymore. this is an event driven selloff. the vix could not handle the volatility. that is 2007. we have got a 45% overnight that is a four year low. nothing from what we saw back in the global financial crisis. in hong kong, let's take a look at that. we saw the hang seng further into a bear market, sinking 5%. the relative strength index groep -- went to 15. this is very similar to what we saw in 1987. about 30 years ago. that prompted the four-day
trading halt. that looks a little bit similar in those days but if you see the momentum still very much down. look at the volatility in the hang seng index rising 39% on monday. compare it to the european debt crisis and the global financial crisis. those are 200, 250% up on those periods. throughhanks for going all of those charts for us. it certainly feels like a crisis and it continues to look like one. trending business is is coming up next. rishaad salamat is here. is it possible to ask you what we are looking at without already knowing the answer? saying a .5%, will that be repeated? trading getting under way at the bottom of the hour. looking at rebranding,
rishaad: it is tuesday, the 25th of august. i am rishaad salamat. this is "trending business." ♪ sydney and singapore this hour. what we are watching. the rout rolls on. a flash of optimism in new york and heading for a follow, the lowest since 2012. in a hole, dropping the most since of the crisis.