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tv   First Up With Angie Lau  Bloomberg  October 4, 2015 7:00pm-9:01pm EDT

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doing a deal. japan's trade minister says it's agreement on the long-running pcp is close. winning numbers. a rising chinese visitors providing some relief for stressed casinos. air quality worsens around kuala lumpur. welcome to first up. i'm angie lau coming to live from hong kong. in on markets in
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asia. first trading day of the week. new zealand in the green. the dollars at 64 usn. -- the timea difference means they are open. they're up a 10th of 1%. the us join dollar is at 7/10 of the -- of the u.s.. toare also coming down openings in japan and korea, let's head over to japan the nikkei 225 this was the field from friday. , waiting forhigher the jobs report that we got from the u.s. on friday area and it was disappointing that we saw the rebound on wall street. futures in chicago pointing to a higher open. the dollar yen right now weakening.
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just one market shuttered this week that's china. it remains closed for golden week. trading will resume on thursday. negotiators thrashing out the transpacific part -- partnerships say they are close to a deal. we'd expect hear from officials later on this morning. it on his been taking a look at this. have there been a breakthrough? yvonne: these are very advanced types of medicine that are dealing with living organisms the are believed to hold ability to treat cancer. it's a big issue. this is because of the data exclusivity and a lot of debate among nations because in the as. is a big grin manufacturer develop this, they have up to eight years to those exclusive data rights. the information cannot be released.
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nations such as australia and chile and new zealand say that timeframe is still too long. these nations laws are usually about five years or less. right now there seems to be a compromise to five years, including three years for the monitoring of safety laws. we are still not sure of the details right now, but that is what the issue is here. that would be significant for the pharma industry in the u.s.. points itlso sticking looks like perhaps this might be the last sticking point. yvonne: it might be the last one, but it is a big issue. the u.s. is negotiating with new zealand on that country's desire for greater access to the u.s. dairy market. auckland says it is still inefficient. that's insufficient.
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these two issues have been a long-standing sticking points and it seems like we've narrowed it down to one right now. sources say ongoing disputes could still possibly think this deal. we will see if there's any developments on the dairy issue. angie: got milk? not yet. be getting a to much-needed shot in the arm. touristsday has significantly higher than a year ago. we know that the casinos have been slumping. revenue down in september 30 3% year-over-year. we seen the stocks reflecting that over the last year. the junkets are down. crackdown inngoing china. macau is getting hurt. but the numbers for the golden week holiday were almost
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complete. it ends on october 7. for total chinese visitors on the first and second, the first couple days of the holiday of 21 point x percent year-over-year. october 3 alone on saturday up 8%. 150,000 visitors that day loans macau. hong kong that's a hundred 74,000. the cows are most equal to hong kong, hong kong may be losing a little and macau gaining. that is good. right now we had 16 consecutive months of decline for gaming revenue. ofve reports late last week them quoting the liaison officer from china saying made some stimulus support measures are in the works with the central government by the end of the year. mgmaw stocks like when an all surge. when was up 23%, the most in six years.
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also hong kong up considerably on friday. x gloomy tourism is not only important to maccallum hong kong, but also thailand. what happened since the bombing in bangkok and also the chinese slowdown? how that affected thailand tourism? has been looking for the chinese to develop that market because russia has fallen off a cliff. are downtravelers there really looking to china. but when the bombing happened, sentiment took a big hit. the slowdown in china sentiment took a big hit. what we're seeing is various numbers here that the tourism authority of thailand says about 6 million chinese tours this year are expected. coquette can that says 12. they're not quoting anybody but they are expecting a huge number. was justr in 2012 it two point 8 million. they're expecting a lot, but i was just there.
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operators some resort anecdotally, we don't have the official numbers anecdotally according to graham biddy, chinese numbers are not going to be as strong this year as they expected. >> china and coquette is having it tough. this year. the tourists that are here are but not in the numbers you would expect. >> chinese still going there but maybe not as many as they are were hoping. angie: thanks so much. headlines, saudi arabia has cut oil prices. it will sell its medium grade
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crude at a discount in november. saudi arabia and other opec members have raise production and supply to maintain market share. because crude to tumble about 50%. right now it's at 27 spot 85 per barrel. the discount to the u.s. is narrower. hong kong's richest man has been shopping again. he picked up a portuguese windfarm developer in a bid worth about $320 million. two of his companies will each by half of the venture. him 20%isition will get control of the portuguese wind power market. stocks tumbled to a seven-month low in september.
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the cross-border link allows mainland investors to buy hong kong stock and give foreigners more access to china. a similar type between hong kong and shenzhen is on the books. it may be delayed until next year. calling malaysia mal-haze-a today. this phase is choking parts of southeast asia and malaysia. it's not improving is it? is the air quality is hovering close to hazardous levels. all schools except those and some outlying areas will be shut today and tomorrow. a marathon involving 30,000 participants was canceled as well and three or words in the country were first -- forced to
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close temporarily over the weekend because of the thickening haze. as you can imagine the haze has tension, large parts of malaysia and all of singapore are affected. now it has spread to the philippines. singapore, the haze has improved somewhat but remains that unhealthy levels. bad enough for singapore to cancel the finals on the first day of the swimming world cup. remember outdoor activities and events have been canceled for weeks now including bloomberg's own square mile race. and no it is not getting any better. haze problem has persisted for years it seems it's just getting worse now. >> it is. it's on track to be the worst on record. nearly a thousand hotspots. doubled in number from last
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year, most of the fires are on people and. the cover very large areas making it even more difficult to fight the fires. more than a dozen soldiers have been deployed. some locations are just very difficult to get to and now they're estimating the damage will surpass nine billion dollars. tourism and business is all affected, don't hold your breath for solution anytime soon. the president says all he wants to resolve it, it's not a problem that can be resolved cleat. to put it may take years a complete stop to the slash and burn method adopted by the farmers. and they have to find help from singapore and malaysia to put up coming up, thee: rba is due to make a rate decision tomorrow.
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more on that when first up returns. ♪
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angie: flash floods killed at least 16 people and left another three missing in the south of rant. shut down much of the riviera, but the nice airport has reopened and has the highway. 20 centimeters of rain on saturday night leaving 27,000 homes without electricity. the town some more than two months of rain in just two hours. announce the new cabinet today. parliament begins a three-day debate which will end with a vote of confidence.
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meanwhile, exit polls say portugal's ruling coalition has been reelected in what was the first boat since they regained economic sovereignty. the flights to and from the paul are seeing fewer shortages. halted ticket has sales until next weekend. kathmandu airport said it has no fuel to offer. ethnic ties to india have blocked border protests and a new constitution they say gives them equal rights. the disappointing u.s. jobs numbers may have further lower the odds of the fed raising interest rate this year. in september,ons that is a long way below estimates. su keenan takes a look at that and the other events are watching for you this week. >> the week ahead on wall street will see u.s. investors continue
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to focus on the latest economic data as well as a parade of earnings as a whole round of companies released their latest results. reports, key economic the u.s. service industry, the largest part of the economy here probably grew at a slower pace in september. that's the second highest reading since 2005. ultimately we will see a widening in the u.s. trade deficit is august results are forecast to show sales overseas are weekend and imports picked up. the imf will also be releasing its world economic outlook midweek. on thursday the federal reserve publishes minutes of the september meeting. this will give everyone a clue as to what policymakers were thinking when they left the rate unchanged, a decision they now say was vindicated by friday pepsico month into an
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yum! brands will be out with her latest numbers. in new york su keenan. indeed. busy week for more on the week ahead here in asia, let's bring in daniel martin. he is the economist at capital economics. central-bankmuch action it's the name of the game this week. we are waiting for the minutes from the fact is we heard from keenan. but tomorrow is the rba. do you think we will see comments from stevens as to how he thinks about china as it relates to possible future cuts? >> we will definitely be looking for that. i don't think we'll get a cut on the basis of it. i don't think stevens is going to be too radical -- to rattle. he said last week he is surprised the u.s. talked about china when it decided not to hike rates. i think he will kobe be looking at the term relevance as well.
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seeing that a lot of it is just in the stock market. economy,k at the real some of the activity actually hasn't been that bad. it tries to measure the base of the economy a lot of unusual measures. it actually suggest that activity is picking up. think stevens will only try to look through -- i know australians have turned up quite a bit. but even there the probably won't seep through into australia's economy. reassuring on be the china affects. i don't expect to see cut. >> we have in recent days seen the bottoming and stabilization i guess some economic data may be onat china that path back up as you said, do you still think there is room
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for cuts at the rba? certainly further down the line. before, wethey said should not expect to cut now, but i also think the rba is looking how much the falls and commodity prices we party scene. they are expecting close to about two and a half percent next year in australia. we think it will be posted to 2%, so over the coming months, they'll start to show that. theill only start to see labor market considering -- if we do stick to the data, icy room for at least one more cup possibly to around december early next year. if they did cut as we expect, the australian dollar sore. >> interesting thoughts about
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the aussie dollar. what about the yen? what about the bank of japan? the japanese economy is very tepid incinerating shinzo abe a is trying to launches economics 2.0. >> sure. it looks like the japanese economy contracted again in the third quarter. inflation is obviously strongly low. if we look at where the output -- back in the economy, how much that'shere is an pointing to inflation maybe to about 1% of the next year. that's still going to be well below the 2% target that the bank of japan is trying to achieve. at some point it does need to launch a little more stimulus. i don't think it will be this week. the probably wait until later in the month mainly because that's on the governors are due to give their forecast.
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what we might see this week is a retreat from some of the more upbeat comments that they been making. it's looking really unrealistic now to talk about industrial production improving about when what weidence got last week was obviously quite negative. itkeep those statements in -- it looks a little bit unrealistic. wondering. >> later in the month. angie: i'm wondering what the credibility is here? >> that's the problem. the longer it goes missing its target, the less economists and more importantly the less as this is an households believe that the bank of japan says. and this is getting expectations up to around 2% is exactly what
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they want to do. at the moment they are not convincing everyone can get up to 2%. >> certainly not. doj and rba watching very closely. daniel martin asia economist capital economics. thank you so much for joining us. is not steadgland in the world cup.
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angie: it was a big weekend of the rugby world cup. england failed. south africa campaign on track with a win over scotland. japan delighted their growing number of fans by beating samoa. on sunday argentina took another towards the quarterfinal with a victory over tonga while ireland beat italy. italy becomes the first host while at the world cup. they're also the first cup winner to fail to make it out of the group stages. however two-time winners australia have proved they are a good bet for this tournament.
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mr. now faces wales to determine which nation. checking other headlines for you right now, ben bernanke says some wall street executives should have gone to jail for their roles in the global financial crisis. speaking to usa today he said that in addition to the corporations that were punished and find, individual should have been held more accountable. he did not name names. bernanke has been promoting a memoir he started after leaving the fed. alibaba may have a future in art. he started the business's -- a that fetched $5.4 million. 17 times more than expected.
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the piece titled paradise depict the earth last year. the proceeds go to charity. tops northy fox american box office this weekend coming the studio's biggest debut of the year. the matt damon film raked in $55 million and is a acted to double that in weekend ticket sales worldwide. coming up, the latest on the jobs report. ofwill last what sort fallout we might see in markets today. you're watching first up. ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...)
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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store.
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angie: breaking news out of australia. the securities inflation rose 0.3% month on month. year on year, that's a trajectory to the upside. that is good news for australia, better than expected inflation data coming out of there within striking distance of the two to 3% range. let's get a check on how markets in australia are reacting to that data. >> good morning. let's have a quick look at how
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the dollar has reacted. it was up by about 1/10 of 1%, not really moving at the moment. just a slight downturn there, but still holding at 70.5 u.s. ends. of course markets in australia reacting to that worst than expected u.s. jobs number. big moves coming through from the mining players. three months leading up by almost 7%. we had a 2% gain coming through in gold isis on friday. tinto has been ready to buy this over the weekend. also we had 80 yards in new york trade. very strong. on friday liked having a good pickup. certainly looking like a very positive start to the week, you can see there the ale x 200 oil and gas.
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a good pickup coming through from new zealand as well. an hour,pen in half will be watching tokyo pretty closely. --orting and 80% gain expected 80% gain in its first-half profit. retail sales down 5.4% year on year in august. embracing the likes of product in hong kong down around 36% year to date. china remaining closed today will not be open until thursday. angie it looks like we are having a pretty solid start to the new trading week here in asia. thanks juliet. the top stories were following for you this hour, there are signs that a deal is near in the transpacific partnership talks. the japanese trade minister says he is told his government they
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had agreed in principle today. the last hours in australia have come to terms on intellectual property rights for biologic drugs leaving gary and the final obstacle. zealand isl us new unhappy about the u.s. market. kuala lumpur reached a very unhealthy level on sunday. that's according to pollution readings from the department of the environment. malaysia closed three airports over hayes most schools will be closed today and tomorrow. singapore's air was rated unhealthy this morning in the haze caused by forest fires in indonesia. it is not expected to improve until next month. the winning month for casinos in macau. the numbers surged more than 16% in the first three days. more than foreign to 27,000 taurus last week along the national holiday.
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the latest u.s. jobs report did not do the fed any favors when it comes to rate decisions. year, manyance this are already looking forward to 2016. where we stand? it's basically the same. nothing much changed except that people are that we might i get in december, a lot have posted back to march now. the get go all the way back to august and july, the be lower. of the have an average year today's 12 months in 2014.
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that's the key thing -- the key take away their. there has been a deceleration in job growth from 2014 levels. that takes is below 200,000 your today. the unemployment rate fell by 5.1%. that was mainly because of 350,000 people dropping out of the labor force. so the shrinking labor force, work hours. here, the -- a rate hike this month is almost off the table. obviously that's been pushed back to maybe june of next year. time.l for the first the yield is below 2%. time now for look at some
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of the top corporate stories on the bloomberg terminal. here's the. the uk's biggest insurer is downplaying reports it may move day asia. however the insurers is only a fifth of its operations would be affected and london remains attractive. in rules come into effect january. the vw chairman has warned that the diesel emission scandal could threaten the company's very existence area he spoke as volkswagen checkouts ads in national newspapers. delta has same --
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reignited and all. with american airlines of the right to fly the tokyo. just months after delta one americans old slots. has called on u.s. regulators to take back -- take them back. us-based carriers only have four slots and business travelers over the other airport because it's much closer to tokyo. angie: samsung reports on wednesday. we could see profit growth year on year for the first time since 2014. they suffered dissent -- declining sales of they lose to the iphone and lower price competition from china. atfit is expected to come in 4.5 billion.
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team,retain most of his but the son of the former leader will be japan's youngest ever minister. japan's richest man has said his business is seeing absolutely no adverse impact or slowdown in china. plan toicking to his open 100 stores a year on the hear morerea you'll about that on thursday. on saturday we will see north korea celebrating the 70th anniversary of the founding of its all-powerful workers party. kim jong on has reportedly ordered the country's biggest ever parade. coming up, it's changing virtual
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currency. we will take a look at the chinese version of that coin.
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angie: other stories making headlines around the world, why issues of malaysia. , airls remain closed quality in six districts around: four remain in very unhealthy froms area that is all indonesian forest fires. things are getting a little bit better in singapore. the runways at three airports reopened yesterday after being forced closed due to the deteriorating hayes.
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other headlines making their way right now to you, the israeli prime minister has vowed what he calls a harsh offensive in response to separate attacks that killed four israelis. he will use detention without trial more widely. israeli police have also restricted access for palestinians to jerusalem. today syria of the middle east will be destroyed if the russian air campaign in his country fails. in its first interview since the russian intervention, assad conceded that his army has had to abandon parts of northern syria to be able to defend areas seen as more crucial to damascus. kia have refused to
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join the campaign calling for the presidents immediate exit. adidas and kia have remain more loyal. adidas calls for reform without mentioning bladder while kiera to find -- declined to comment. they insist that his departure would not be in the best interest of people. this week sees the bloomberg markets most influential summit right here in hong kong. this event brings together people who make headlines and move market. among them the head of international at ok coin, china's largest bitcoin exchange. he is here with us in the studio now. bitcoin's surviving. we saw that huge meltdown last year. what is the sentiment right now?
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>> in 2013 you had a big christlike. that's when the public was really excited. the prices come down 80%. but underneath all of that we seen an increasing pickup. it's actually been a good thing that the price came down so that entrepreneurs focus on solving consumer problems rather than increasing bitcoin prices. why the interests to getting to the market that has seen such a meltdown? >> i think where the early stages of bitcoin. the interest is on the technology. for the first time, any two people can make a transaction with each other.
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that has a lot of implications. this year using banks being interested in technology. kiev pc just approved bitcoin and other crypto currencies into some trading platforms here. what is your view on that? do you think is a good move? >> if the commodity. i think it's the exception. once a over bitcoin, you see them come towards startups. we will have a better ecosystem as a result. so what is the future of bitcoin? thea lot of people craziness of 2013 was really the headline. where you see bitcoin as a disruptive. for global markets? we started in exchange and we
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still operate the largest exchange in the world. basically there's one market. that does not help everything will person. bitcoin we can hide the technology in the background. angie: what is a super wallet? >> it's a mobile wallet but allows you to hold at value to transact over the bitcoin network. a chinese student using alli pay inchina can pay their friend the u.s. and paypal -- cannot. we see industry and appeared -- industry peers in the u.s. want to wallet in u.s. dollars, the
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transaction happens over the bitcoin network which means it's free, it's just like e-mail. but it is still predicated on the value of the big point that moment right? andou can buy a big point then sell a bitcoin. you're not actually affected by the price. so what you're talking about is beyond bitcoin? it's about how you and i were people all over the globe can exchange money so forget all of those everybody else. this could really be disruptive and certain sector killers. >> exactly it's a huge market. for the exchanges about 60%. ,f you look at china's economy the number of students going abroad. going to have a lot of cross-border uses. china is very used to a exchange on we chop alli pay for domestic
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payments. how far has the industry ghats and all of those scary headlines that surrounded bitcoin years ago. >> the exchanges themselves to the infrastructure, we've not seen the collapse of that. the people behind the industry, a to be very libertarian of you'real in nature, announcing the bitcoin players try to create a more harmonious system by integrating the traditional financial system. that will be much more powerful. only a very interesting financial ecosystem. think you so much. you will join us for bloomberg markets summit tomorrow there he happy to welcome you and preview
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that today ahead of thernational ok coin area bloomberg markets most influential summit starts tomorrow. october 6 on your calendar with events in new york, london, and of course right here in hong kong. bloomberg,ion with it brings together leading bankers policymakers economists and money managers for their perspectives on the coming year. you can watch it all on bloomberg up losing the stigma.
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angie: one in five americans now have a tattoo, but they are still stigmatized in asia as related to the criminal underworld.
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in japan, people can be banned from public baths. expect to one headline artist at the hong kong set to convention about overcoming the ingrained views about tattoos. >> tattooing is part of japanese tradition, so in that sense i was always interested is a kid. nowadays you have these conventions and whatnot but back in the day was there difficult to get information. there were hardly any magazines on tattoos 20 years ago, i imported them from america and europe. that's how it started. the tattoo industry has changed tremendously over the past 20 years. i can't keep track because there's so much change. my biggest goal is to understand the history and culture of japanese tattooing.
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there is a huge gap. the perception is just so different. that's where want to be part of these conventions and show japan that people actually enjoy them instead of trying to hide them. sure there's a boom and bust in tattooountry, but the industry's becoming more and more difficult in japan. and i want to change that. the type of customers usually depend on the artist style, i have many customers fly in from overseas. their ceos lawyers doctors craftsmen to. there's quite a range terms of type of customer. my style is quite different from what we call the cusa or gangster talk -- gangster style in japan. my customers tend to be more sophisticated. i'm going to get i love
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mom right here. >> let's go for it. that's a challenge. maybe the winner of the stock exchange will get tatted up. i'll get to. >> these are the makers of industrial products. machines that make chips. they've been down 35% this year, but the reporting of the operating profit for the first half may have risen 80%. they make equipment for smartphones, still analysts are missing estimates.
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earnings out on the 27th. >> i'm onward looking. fashion. ready to it -- where off the rack. we have here? they cut their operating profits 49%. but they're also buying back about 3.2% of their shares. >> onward from your bad month last month. angie: it's juliet's turn. she might shame the both of you. >> i think yvonne has the big one today. i'm looking at a japanese stock. sad we can't take australian stocks. i wouldn't take one of the mining players today. but anyway let's get back to
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japan. a very good year to date. up almost 20% area that this is a company that operates department stores but also sells food mainly in a couple of the regional areas in japan, that's is downyo area and it to one half billion yen operating profits cap by 11%. zero by on bloomberg. >> think long-term. that's the verdict from the stock exchange. thanks guys. stocks -- are highlighted based on these events. will be back in an hour to see who's getting a tatted up. all right looking at the next hour of the show, we have cosmetics giant estée lauder remaining very confident in china does slow down. the company's asian president joins us right now -- right here.
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we're counting down to the openings in japan and korea, whether you're watching the tv online on the phone this is percent. -- first up. ♪ ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...)
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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store.
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angie: the employment effect. markets rise on weak jobs data. still talking, trade ministers extend pbp discussions amid hopes that a deal can be reached. winning numbers, michalski is a rise in chinese visitors. welcome to first up this monday morning. we live from our asian
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headquarters hong kong. those of you joining us from bloomberg tv philippines. the lineup in australia's share market in early trade this morning. australia will open. ? >> good morning. without inflation data coming through on the aussie dollar. we just below the to 3% target that the central bank is looking we did see that coming through in the data was released. mentioned, there really is the mining stocks dragging the australian share market higher today. solid start on the asx 200. oil and gas up by almost 3%. strongeing some very
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gains coming through from the likes of the hp bill is in you west mining. that sector is up by over 9%. the hp bills and also looking strong by -- up by over three cap percent. pretty much all of the mining players in this space up. broker upgrade from societe generale over the weekend. that isth noting that no settlements in australia. it's a public holiday in new south wales area markets remain open but no settlements. korea is listing on the back of the week jobs numbers. no rate hike, particularly not in october, the korean index up by a 8/10 of the percents. jana just japan a promise 1%.
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3%.ks are up by around some of those leading the way. new zealand is also having the solid session up by .1%. also will be watching retailers in hong kong a lot. retail is down five point or percent year on year in august. casino stocks have a solid rally on friday. we saw chinese stocks trading in new york actually the biggest weekly rally since 2011. china also remaining closed until thursday. angie: thank you for that. to yvonne now. yvonne: negotiators working on the transpacific partnership has started. we haven't on taking a look at this. >> we're striking distance from a deal.
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this press conference could happen any minute now. we will see what happens. there are still two big sticking points. intellectual property rights for biologic drugs. advanced medicines derived from living organism which are believed to treat cancer. u.s., this from a companies have fought very hard to maintain exclusive rights if you develop a drug. allowing these kind of smaller companies to develop less costly generic drugs. minority cut that down from 12 years eight years, but nation such as australia more -- malaysia and peru and chile say that time is still too long. laws thatons have offer zero to five years of monopoly protection.
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this just allows for big pharma companies to deny generic competition and make prices higher. but there could be some possible five a year time frame for those exclusive rights for three years of that are for safety monitoring area did the details are still unclear. it may only be australia that has that option. what about other nations? also will be enforceable in australia? >> what about the issue of dairy? this seems to be the final hurdle. >> that is the final hurdle. the one thing that still remains at odds is the u.s. and new , the greater market access the new zealand wants. the government says it still insufficient what the u.s. allows for right now. again, you mentioned the two biggest sticking points out of 30 so they have narrowed it down to just one now possibly but ongoing disputes could still think this.
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they did already extend negotiations from october 2 two the fourth already's some say that could be a good sign. we'll get more information on a press conference starts. angie: they are waiting for a deal any minute now. thank you so much for that it on. >> checking other headlines right now the cut oil prices to asia and the u.s., sale crude at a three dollar 20% discount in november. that's the biggest discount in almost three years. saudi arabia and other opec members have raise production that is caused crude to tumble about 50% in the last year. studies discount to the u.s. is raisedr, and aramco has prices for northwest europe. the chairman has warned that the emissions scandal could threaten the company is very existence.
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took out ads in national newspapers pleading for public trust. civil engineer seven minute to installing cheating software and engines in 2008. it also says they manipulated software. uk's biggest insurer is downplaying reports that it may move to asia. sunday times says prudential has been weighing up hong kong or singapore to avoid upcoming eu regulations, however the insurer says only some of its operations would be affected in london remains very attractive. into effects come in january requiring all insurers to beef up their capital reserves. to be getting a much-needed shot in the arm this golden week holiday as tourist
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arrivals are significantly higher than a year ago. stephen joins us. >> they're coming. given the weakness of the tables theughout the enclave, numbers are up for the first two days of golden week holiday. up 21.6% year-over-year. very good. also october 3 was up 8% to the full. the we have numbers for so far october 1 to third key beginning of the golden week holiday which ends in a couple of days, up 16.4%. on october 3 alone they got 150,768 visitors. that's nearly as many as hong kong and hong kong is a bigger tourism destination. because getting a much-needed boost. september revenue for the gaming tables was down 33% year-over-year. huge blow. 14 alien dollars taken off the table from year ago.
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16 consecutive months now and gaming revenue decline, but late last week we got reports of macau putting the local chinese liaison officer saying that the central government is considering stimulus measures at least by the end of the year. we saw casino stocks rally significantly up 23% on friday in new york, up 7% here in asia big games on friday. >> what about thailand? hurtbangkok bombing really chinese vacationers plans. chinese have been moving in going to thailand in greater numbers. they are expecting upwards of 12 million this year. the numbers are little bit catchy. that's a according to the coquette does that. the tourism authority of thailand says about 6 million.
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however anecdotal evidence right now after the bombing in bangkok which is tied to chinese uighur separatists and maybe targeted the chinese and also combined with the chinese slowdown, anecdotal evidence points to maybe the numbers are not going to be as high as he bore opening. yesterday i spoke to the ceo of richmond asset management. this is what he has to say about chinese visitors? they're having quite a tough. this year. taurus that are here are chinese. but not in the numbers you would expect. that's what that says about their own economy. wrap uphe -- maybe as i here we can bring up the tourism sub index.
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however, golden very critical for chinese visitors. angie: thanks. coming up, disappointing numbers on the u.s. jobs front. this change the fed thinking? you're watching first up.
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killed atsh floods least 16 people with another three missing. schools remain shut down along much of the riviera, but the airport has reopened. weather don't thomas 20 centimeters of rain and con on saturday night leaving about 27,000 homes without electricity.
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worth about three months of rain in just two hours. the greek prime minister announced his new cabinet today. he began a three-day debate which will end with a vote of confidence. -- his campaign was to alleviate the effects of austerity. meanwhile exit polls say portugal's ruling coalition has the reelected in one wise first notes of lisbon regained its excellent -- economic sovereignty. the israeli prime minister vowed what he calls the harsh offensive in response to attacks that killed israelis. expect security forces to accelerate the destruction of homes of palestinians who attack israelis. israeli police have also restricted access to jerusalem. the markets are starting the week in a positive mood.
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look at the -- the latest jobs report this pushed back the chances of a rate hike this year area the summer seemed the best chance, but many are only looking forward to 2016. the david rust standing by right now. >> i can tell? you have the market is telling you there is more time to artie. theuse of the rate hike, other virtually off the table. one in december have actually come down from just under 15% to about a third. is the odds basically moving into the summer of next year. number 142,000. the number of jobs created in september, less than even the lowest estimate. that, it did not strengthen the case to increase
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rates this year. the big picture looks like this. if you strip away out the noise were looking in average this year, slowing jobs growth. about 260,000 jobs every month last year. were down to 230,000 with a 12 month average. that's the first nine months of the year. obviously between now and that december meeting, there are two more jobs reports. those upcoming reports better be spectacular. avoid that down to 5.1%. about 115.of jobs what's more worrying is that the labor force actually shrank three times to trainer 50,000. the number of people that left the labor force.
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i look at the 10 year u.s. yields. they're nowhere near 3% predicted by most last year. were back below 2% for the first time since april of this year. the sentiment there. take a closer look at those jobs numbers area joining us now from singapore the private bank equity strategist jason low. what you make of that's 142,000 job figure? >> wages actually only grow about 2.2%. if you look at the unemployment rate, look a little deeper the details were probably 5.1%. it actually felt yet again to about five.
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to us, i think that means october is off the table. high angie: is very one with the presupposed a massive volatility on the heels figure, but in fact buyers started coming to the market on wall street. here in asia, it looks like were picking up from where the u.s. left off, how do you suppose that asia is going to play out in terms of his jobs figure and what else looking for this week. >> i think in the very short term, given the strong market the asian market would see a short-term leap.
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it should be positive for asian equities. i think let's not lose sight of the longer-term picture. the rate hike will eventually come. especially given the statement coming from historic china. we don't roll out short-term rebound. short-liveduld be a one. still more or less neutral on asian equities. are you searching for off anywhere and where you looking for that? i think within the asian space we like japan. japanese equities are quite attractive given the -- japanese companies have been using their armies -- for 11 consecutive corners -- quarters.
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valuations are quite attractive. we think japanese equities could outperform. the compact to the u.s.. angie: what do you think of the chinese market? what are your thoughts on what is your advice for clients who might the china in the folio right now. markets we are neutral on chinese equities. we downgraded chinese gdp growth to 6.8% in 2015. equities,r chinese economic data continues to
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disappoint on the downsizing. but there seems to be some form of civilization. we will wait and see. the thing about chinese equities investors have less confidence in the chinese equity markets especially considering the failure to stem the slide of the last quarter. said, there trading about seven times stronger. below a tenure historical average. we are neutral. value perhapsr that could be an option. very quickly what sectors do you like? and theectors we like
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banks are trading about six times. i think is attractive. as well as environmental stocks. also valuations. it's all about searching for value. equity strategist joining us from singapore. coming up next, why the rba is having a tough time convincing investors of its intentions to keep interest rates at 2%.
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juliett: good morning it's monday the fifth of october and easier headlines. with the job reports we could see the greenbacks fall. one of the banks which correctly forecasted the raid. city says the dollar is now on the back push. the jobs report may have weakened the greenback, but it's given a boost to commodity trades.
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the aussie and he we strengthened against most of their major counterpart. the aussie dollar will be the focus this week is the rba rate decision is due tomorrow. the governor's having a tough time convincing the bond market the rate should stay at the record lows of 2%. market show rates are likely to be lower by march. norway's government is starting to worry about the instability country'srency, the prime minister says the rapid weakening of the kroner will only provide short-term relief. they believe-term the loss of liquidity and increased volatility pose a threat to local businesses struggling to plan investments. let's get a check of the kiwi this morning, it has a little bit of a downward slump. much stronger against the greenback as we were saying. up by 4/10 of 1% this morning.
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angie those of the stories driving us this morning. coming up, no smoke without fire. malaysia's air quality worsens. the latest in the long-running story, kuala lumpur remains closed as indonesian fires rage on when first up returns. we're back into.
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kong: it is 8:30 in hong and we are seeing the last vestiges of the typhoon. windy, stormy, now weakening to a tropical rainstorm moving through the area. we are and hour from the open of trading. you are watching "first up." the top stories this hour, when bad news is good news. asian markets are welcoming the weaker than expected jobs report from the united states.
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the regional benchmark heads for its longest winning streak in almost three months. this is on anticipation that the week payroll figures reduced the case for the federal reserve to raise interest rates. at the transpacific partnership talks have extended their discussions amid hopes that a deal can be reached. the japanese trade minister says being reachedord by today, but issues remain. that new zealand is unhappy about access to the u.s. market. october is looking like a winning month for casinos in macau. the number of chinese visitors to the city surged more than 16% in the first three days. more than 427,000 arrived for the national weeklong holiday. 16thg revenue fell for a straight month in september.
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let's check on markets in the asia-pacific. australia leading the way. 1.8% higher. we've got kospi, nikkei also following suit here as we take a happening at what is , including the rba decision tomorrow and boj decision as well. china's turbulent stock markets have make global headlines and taken investors from elation to depression this summer. we've got bloomberg intelligence director of research here with all the answers. thank you very much. nearly four months since markets reached that peak in june. where do things stand now in comparison with the rest of asia? >> it's fascinating. thee gone from china being most expensive market on a multiple basis to one of the lowest evaluation markets. you can see through this chart, we've got an interesting development, where the overall
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market cap relative to gdp has told all the way back from one time to about 2.5 times. it's fascinating to see this in comparison to other markets, where we've gotten over the world average. now, back close to that long-term average. it's a different perspective from what we were talking about four months ago. angie: is there anything that stands out to you in valuations? >> this aspect, this is that component that warren buffett likes to play with, market cap to gdp. another way to thing about this is small cap and large cap. we've got, this graphic shows it here, strange phenomena. we have state support of large-cap stocks, but yet they are underperforming.
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8, the biggest cap stocks down 9%. they are now trading at 13.2 times forward earnings. seesmallest cap, you can outperforming at a relatively high multiple. it's an interesting dynamic. we dug into the large-cap top 100 shanghai composite stocks. areultiple sectors, we seeing valuation on a median basis below that of msci world. angie: there are other approaches to valuation. >> there are. another way to think about this is taking these multiples and comparing to growth expectations. the overall china market is trading at about 1.2 times priced earnings to growth pay. the small cap side is actually
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trading at 1.2 times, because the growth expectation is much higher. that is lower than the msci at 1.8 times. there's lots of ways to cut this. that doesn't assume it stands heavily on those growth expectations. there is a lot of optimism that you have a little skepticism, but it goes to the issue that a of knee-jerk reactions about china, so expensive, in a lot of ways -- there's different ways to think about it. angie: thank you so much for that, tim craighead. right, the roller coaster ride in china's stock market has had implications much further afield. we asked a philippine billionaire how he's handling the slowdown. >> the growth picture of the global economy is not looking to
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zoo good. it hasn't been for the last couple years. seem toncial markets have a life of its own, no? the reality on the ground is, growth hasn't been that exciting in the last two or three years. our growth has been mainly driven by -- [indiscernible] you have some organic in the low single digits. very slow growth. >> [inaudible] growth, yes. i think the global economy is going to grow 2% to 3%. and 2016. >> [inaudible] >> like what we did 6-7 years
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capital,costs, save on manage our liabilities, which we've done very well. instruments have been mostly in the form of perpetual's. we have to be in a position to take advantage of some opportunities. >> [inaudible] >> absolutely. this is the time to make good moves that will make a lot of money down the road. >> [inaudible] >> absolutely. the problem with asset valuations is that they've driven asset prices through the roof. it makes buying things very expensive. we avoided that.
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>> [inaudible] 2010.8, 2009, and before that, in the 1990's. i don't know why so many people are surprised. >> [inaudible] >> of course. expansion, save on capital. >> [inaudible] yes, at the right opportunities, you have to make moves. >> [inaudible] >> the philippines continues to grow like this, then we should do pretty good. >> [inaudible] 6% in the world now is
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spectacular. angie: that was our exclusive interview with philippine billionaire enrique razon. time for a look at the top bloomberg stories. here's zeb eckert. zeb: hong kong's richest man has been shopping again. a deal worth about $320 million. li's power asset holdings will buy half of the venture. this will give him control of 15% of the portuguese wind power market. an american meat supplier have been charged in china over a food safety scandal. is accused of making and selling shoddy products. production was suspended in july last year after workers were allegedly caught recap aging -- repackaging and selling beef
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after their selly by date. delta has reunited an old feud with american airlines over the right to fly to tokyo. just months after american won delta's old spot at the airport, delta called on regulators to take them back because american has failed to file schedules. u.s.-based carriers only have four slots. check of the top corporate stories making headlines this morning. angie: the choking haze blanketing much of southeast asia will keep malaysian schools closed for at least two days this week, with air quality reaching levels deemed very unhealthy. let's begin with haslinda amin right now. is there any improvement on the horizon? improvement, and we're not expecting it to happen
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anytime soon. the government says the haze may persist through november, and countries here are still struggling. take a look at what's happening in malaysia. air quality is close to hazardous levels. schools are shut for the next two days. except those in outlying areas. more activities have been canceled, like a marathon involving 30,000 people, and three airports in malaysia were forced to close because of the haze. not surprising that the haze is causing tension among large parts of malaysia. all of singapore shrouded in haze. the city looks like beijing. people on the streets are wearing masks. on saturday, we had to cancel the finals on the first day of the swimming world cup. there is now another victim. the philippines has seen haze
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for a week now. no end insight. we are bracing for hazy or days. angie: this problem has persisted for years. is this the worst we've seen? first -- theis the worst on record. nearly 1000 hotspots, double the number from just last year. most of the fires are on peatlands. they are difficult to fight. indonesia says more than 1000 soldiers have been deployed. some locations are very difficult to get to. all this coming at a cost. haze was997, when the especially bad, it caused an estimated $9 billion in economic damage. it may cost even more this year. businesses are all affected. angie: haas haslinda amin, thank you for that.
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coming up next, cosmetics giant estee lauder remains confident in china, despite the slowdown. we talk about that and a whole lot more with the company's asia president for an exclusive chat. you're watching "first up." ♪
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checking some of the stories making headlines around the world, bashar al-assad says the middle east will be destroyed if the russian air campaign in his country fails. moscow's attacks on so-called islamic state and other groups have been criticized by the west. in his first interview since the russian intervention, assad cannotd that his army defend areas deemed more crucial to damascus. china has canceled flights to and from nepal, citing fuel shortages with supplies from india blocked. china southern has halted ticket
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sales until next weekend while china eastern offered free rescheduling or cancellations after kathmandu airport said it has no fuel to offer. but he does and kia have refused to join the campaign for corporate backers calling for sepp blatter's immediate exit. budweiser, coca-cola, and mcdonald's all demanded his removal. kia remained more loyal. ofdias called for reform fifa without mentioning bl atter. blatter insisting that his departure would not be in the best interest of fifa. the slowdown in china has been a major challenge for companies at home and abroad.
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estee lauder earned nearly one quarter of its revenue from this region and has a keen eye on where emerging markets are going. joining us now is estee lauder's asia-pacific president, who is also here for breast cancer awareness month. very important issue to your company and also -- we will talk about that later. it's all about china's slowdown when it comes to investors taking a look at estee lauder. how are you viewing it when it comes to profit? >> china is slowing down, it is a fact not just for the beauty industry, it is a reality. we look at it ultimately with a lot of positive confidence. we believe the fundamentals remain extremely strong for the andre of beauty in general prestige beauty in particular in china. we've been looking at this as a corrective moment. we see a lot of consumers from
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china shifting channels. therefore, we see consumption from those consumers sometimes in other places in china. speaking, i think while things are softening, the fundamentals and the future looks very bright. angie: u.s. dollar is very strong. it continues to hurt estee lauder when it comes to its rivals like l'oreal. how is that when it comes to market share and ability to compete? >> looking at market share, right now, we don't see any impact of the dollar. we are one quarter of the prestige market and we think it is currently very stable. what we do in china is slightly impacted by the strength of the dollar. nothing tangible. as a company, what we've been doing in recent history is to work hard on diversifying
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geography, channels, and brands. right now, all the other emerging markets around the world are actually bigger than china when it comes to their size. a great example of diversification. angie: are you looking to grow? are we looking at acquisitions soon? >> we're always looking for acquisitions. obviously i can't comment on that. not necessarily the most meaningful right now in asia, but they will be. diversifying in terms of price points? are these high-level, luxurious names, especially with the global slowdown we are experiencing? >> the global slowdown leads to a polarization of the market. we see the high-end growing faster than the middle of the
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market and we see the entry price growing. the prestige is a trend we have acknowledged. we are acquiring on both sides. means that.s. dollar your dollar also goes a long way. which ones could be more exciting? >> i can't comment on that. angie: are their local brands in china that impress you? >> there are a lot of very successful players in china. we believe that not unlike korea and japan, we will see that china will have brands in the prestige category. we look at luxury cosmetics only and we believe one day, they will be very significant players out of china. angie: you are certainly a leader when it comes to cosmetics and women's issues. none more so than evan lauter's
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campaign that designed that pink ribbon that we know so well around the world. i'm wearing accessories right now. going to be my accessories for the month. --l us a little more about the thing about breast cancer awareness here in asia, this is something that asian women still have yet to overcome. especially with all this knowledge that we have in the west, it still hasn't arrived in the east. >> you are very right. early detection saves lives. this is about creating awareness and investing our time, educating women to better understand. estee lauder cocreated this in 1993. the campaign has been going for a wild. we came out with some work in the summer to find out what women really know about breast cancer, what they think about it, and what they do about it.
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as usual, what we find is even in this region, it is incredibly polarizing. women's awareness is broadly speaking high. what they really don't measure is the risks. what they don't know is what can they do to ultimately act on the risk of breast cancer. this is about self-examination as an example. this is about going annually to the doctor. this is about talking about breast cancer and breast health. the more they act, the earlier we detect breast cancer, the more lives we save. angie: empowering women everywhere at every age. estee lauder does that with aplomb. fabrice weber, thank you for joining us. breast awareness month this october. these are the accessories to where right here. coming up next, speculation a japanese chipmaker may boost
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profit by 80%. ♪
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welcome to the stock exchange. let's check in on what our reporters are watching. even is back, but is she back? yvonne: not quite. i'll be back tomorrow. david: so close. yvonne: sorry, david. this is about tokyo. they make investor products, machine makers, chips. operating profit for the first half may have risen 80%. that is still missing estimates. those real results coming out the 27th. david: so it doesn't count. upwards and onwards, but
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not quite. david: not quite there. it's ok. i didn't really make a strong call this morning, unlike you. ready-made suits. yvonne: investors are pulling for me. david: let's go to break right now. operating profit forecast 49%. ¥2.46 billion. yvonne: i still have a chance. david: we're going to get there. juliette: i was -- >> welcome [indiscernible] cutting is forecast. we have no buys. stocks are going to come under pressure.
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down 2.3%. angie: wow. all right, thanks. that's the verdict from the stock exchange. our reporters' picks are based on news events. thank you for joining us on "first up" today. ♪ ♪
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rishaad: it's monday, october 5. i'm rishaad salamat. this is "trending business." here's a look at what we're watching this morning. positive thinking. asia starts a new week in the green. u.s. jobs numbers reduced the chance of a rate rise this year. some are looking to next year. schools remaining closed in malaysia as air quality worsens around kuala lumpur. india says it


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