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tv   Trending Business  Bloomberg  October 5, 2015 10:00pm-11:01pm EDT

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deferred growth and new ties, already lining up for the deal. into reverse b.w. sales slump in japan while the regulator gets tough in taiwan. we have the very latest on volkswagen's widening emissions scandal. do let us know what you think of today's top stories. follow me on twitter. don't forget the hashtag there as well. the equities are following that lead from the streets -- china still closed for the holiday there. golden week holiday. glenco shares in hong kong continue to be in focus. >> yes. exactly. we are seeing another big pickup coming through from glencorp and basically i guess really following the very solid session we have seen across the asian region today. in london yesterday glencorp hitting that record high up by another 21% and in early trade here you can see on your screen glencorp up by another 9.5%.
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also in focus once again in hong kong seeing the likes of samsung galaxy entertainment continuing a very strong rally and petro china doing very well as well because we had that rally in the oil prices, energy stocks looking very solid across the region. in korea samsung is one the best performers. .6%. g the kospi up by japan looking very solid as well following on from those gains yesterday. up by another 1.3%. australia a number of stocks that are going to really benefit from the ttp deal, a very solid session, the biggest gain since 2008 up by over 12%. we've been looking at the likes of grandcore in australia and a number of the dairy companies. metals trading looking good too on the back of that rally. in base metals in london overnight. generally rish a very positive session once again here in asia. asian markets on track for the
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fifth session of gains, the longest winning streak we've had since april. >> also coming from sealing the deal with the trans pacific partnership coffing about 40% of world trade. it'll also of course lower tariffs on a range of products from rice to drugs. however, well, a lot of people don't like this one, do they, steve? >> of course. when you have a multi lateral trade deal like this there's give and take and some people are not going to be med. this is the biggest u.s. brokered trade deal since nafta that took effect in 1994. five years in the making. the trans pacific partnership includes 12 countries led of course by the united states, japan, and australia but does not include this big country right here, china. nor does it include south korea or thailand for that matter or indonesia or the philippines but a few other southeast asian countries and of course australia, new zealand, and the latin america countries including peru, chile, and mexico. china says the tpp is an important trade deal for the asia pacific and it holds an
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open attitude toward such deals. south korea also has signaled it may join later. the deal may be signed but it is far from a sure thing of course at least in the united states. it will have to pass a divided congress in a highly charged election year. critics say it threatens american jobs. the labor unions say that. also failed to give u.s. companies enough protection. in particular in biological pharmaceuticals. u.s. drug companies wanted a longer period of exclusivity internationally before bioalternative generics can hit the market. dairy was a stumbling block. canada agreed to increase foreign quota slightly but the industry remains intact. new zealand is the world's biggest dairy exporter. the u.s. will get a bigger access to the japanese rice market. japan's concessions were considered fairly minimal while japan will have even lower barriers to entry into the u.s. auto market. ford motor has complained the t.p.p. does not do enough to
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counter currency manipulators. some u.s. lawmakers wanted stronger and enforcible language in the t.p.p. on currency that wasn't in the final signed document. that will have to be negotiated separately outside the t.p.p. nevertheless, president obama will try to sell this one hard in his last year in the oval office as a cornerstone of his legacy as u.s. president. >> well, naturally we'll be covering the t.p.p. deal through the program. we do value your opinion. tweet us your thoughts at rishaad and include that hashtag trending business. australia out with a worse than expected trade deficit, more than $3 billion for august. let's get the view from sydney. we'll get a look at what is ehind this weak result here. >> it was, rish and is a story about imports really off 1% and the aussie dollar has been
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weakening recently as well so the exports more expensive. we have a trade deficit for august of 3.09 billion dollars. much, much worse than the $2.4 billion that was expected and the july figure was revised in the wrong direction as well out now to 2.79 billion dollars. the export picture was a curious one even though the price of iron ore and coal has been going down. export revenues from both those commodities increased. there's been improvements in the tourism sector as well all set by beef and wheat and overall the export picture for august was flat. the markets waiting for the big one today in a little under an hour and a half time. the reserve bank of australia will hand down the cash rate for october. noy change expected. we expect to stay at a record low 2% but we really are watching the language around this decision as to where we might go in the future particularly around the chinese growth story. >> thanks a lot for that.
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some of the other stories making headlines, here's ed. >> twitter is going back to its roots. cofounder jack dorsey has agreed to take the c.e.o. job permanently having held it op an interim basis since summer. he's also c.e.o. of another company. the 38-year-old received the board's blessing for the unorthodox dual c.e.o. posting. twitter's user group slowed dramatically while rivals like facebook have seen their users go. analysts say dorsey needs to redefine twitter's brand proposition with consumers, advertisers, and investors and it may come easier given the fact that dorsey is one of the inventors of twitter. shares surged 7% on wall street. the stock has tumbled 22% this year. let's turn to samsung because investors in samsung electronics are wondering of course what the company will be doing with its cash pile here. also investors closely watching
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what's happening with volkswagen. let's take volkswagen first. recalling nearly 18,000 vehicles in taiwan that are equipped with emissions cheating software. this software of course the subject of this investigation in the united states as well as regulatory inquiries in germany. now, volkswagen as we understand it says 16 v.w., audi, models were fitted with the software. the b.w. chairman fears the issue could threaten the existence of the company and says the solution may vary from country to country. meantime volkswagen's credibility crisis appears to be hurting sales in japan. the company says sales there fell more than 9% in september. don't forget volkswagen exploring its options over the millions of cars that carry this software. sources say the solution could be anything as simple as an upgrade to offering completely new cars. so we'll continue to follow
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that, and of course the latest developments with samsung and its $# 5 billion cash pile. we'll have more on that a little bit later. >> well, another story we're following on bloomberg business is why the haze in singapore is starting a debate on rain forest standards. later on the program, india's plan to go green could get a helping hand from germany. we'll go to mumbai with details on that. coming up next shrinking maryannins. find out how china's slowdown is affecting the bottom line of one of hong kong's biggest jewelers.
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rishaad: getting back to the bloomberg market's most influential summit it is golden week of course and that typically means a sales boost for local retailers but the weaker yuan makes it more expensive for the chinese
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tourists heading abroadest specially here to hong kong. we'll go to the summit with a look at hong kong's third biggest jewelry chain. david? >> yeah. thanks, rish. it is one of the few weeks of the year you have chinese new year, lunar new year, and of course golden week right in the middle of it. i think just a quick backdrop retail sales haven't been ideal and certainly news that the pvoc did devalue the currency may have made a lot of high level executives at some of the high end brands here perhaps say something in their heads not suitable for tv. that means of course we're kathy chan. now by thanks for joining us here. we talked about the currency on the chinese mainland. how do you know -- have you noticed any apparent impact perhaps on sales here in hong kong? >> not really because when the violation happened, it's a time
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of a rush in hong kong so i think the impact may have been diluted so we cannot see any real impact on that yet. >> is it something you're worried about? was there a conversation perhaps that took place within your company about this? is it something that worries management? >> yes, a little bit because we used to hold quite a lot and so we may have some hiccups at that time but i think it's soft already so it is fine now. of s far as the breakdown your stores, the majority, the clear majority of your stores licensed, wholly on or otherwise are on the chinese mainland, at least 1300. is that a source of growth for you? because at the percentage of revenue it is still outside the chinese mainland. >> yes, yes. actually because we are a much younger brand than other major stores that's why we used
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licensing model as a fast expansion model for us. and with the human resources -- this's why we would like to use the licensing motto for quite some while as well. and then because of the economy slowing down in mainland china we still want to focus our expansion in mainland china in the medium term. >> as far as product breakdown certainly we've been talking about this for years, the gold price has come down substantially and with it the appetite for holding things like jewelry. you do have a product segment that is doing quite well and perhaps offsetting the drop? >> sure. also the various views for education since that mainland more are now more --
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likely to buy jewelry so that's why we can see an improvement or kind of a rising trend for gems and resales in mainland china. i think you will be helpful to offset the downturn in gold sales. >> that is roughly if i'm not mistaken about 40% of total sales, gems and jewelry. do you expect that to become half or even more as a portion of your revenue than 2016? >> not so fast but then you go back to the year 2008 the gross revenue has actually a 53% jump. at that time the majority of our revenue was coming from hong kong, local hong kong people. that's why right now we've got only around 20 something that live in mainland china for our retail arm. it is really very quick room for improvement from the 20 something percent to 53%. we should expect eventually
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the group in mainland china business to be more than half in coming years. >> now, we're right in the middle of golden more or less. i know you still don't have the exact figures of how much store traffic is right now but give us a rough idea. is it more or less as you the ed to sort of, customer traffic in your stores in hong kong? >> well, in fact we're going to have an announcement about that next wednesday so i can't talk too much about that. although we've seen kind of a rising number of visitors during the first few days of golden week, i don't think we should be optimistic about the figures this soon in golden week. >> generally speaking, how are you coping with the decline in tourist traffic? i mean, certainly hong kong has become a very expensive place to come relative to other places like japan or basically because of the currency effect.
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how has your company been trying to cope with that? >> in fact, because of the rising trend in mainland china, that's why we are really focusing very much in boosting sales in mainland china to offset the kind of downturn of business here in hong kong. >> about 1400 stores overall. i think you have one or two in south korea. the bulk in greater china. what is the plan? >> we will still focus on the expansion in mainland china in the near term and mid term as well. i think we'll expand what may be around a hundred in this physical year in mainland china. >> let's talk quickly about your cost base, rent in hong kong. have they been coming down? >> in fact, i think for this financial year because we have our multiple renewal already we can still see a rising trend or those residential areas
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because now businesses are now coming to the residential areas more than the prime locations so that we can still see very good sales performance in those residential areas. we kind of see a downturn of the rentals in the renewals. therefore, we should expect kind of a mild increment in this physical year. then going back to three years ago or four years ago we talk about the renewal of increments . therefore we should expect kind of a decline in rental renewal maybe in the coming to the physical years. >> for all our sake who live here, everyone, let's hope it goes down a little bit. thank you for your time, kathy. rish, you heard it. hopefully at some point our rental bill for everyone's sake really goes down. back to you in the studio. rishaad: thanks, david. just getting to this breaking news out of the currency
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markets, indonesian rupe of course has been on this downward trajectory against the dollar but we do have this move to the upside at the moment for it actually up, what, 2% at the moment. this is the biggest one-day gain since april of 2009. one state a 2.3% gain for the currency there, the indonesian rupiah biggest one-day gain since april, 2009. let's have a look at the stories making headlines around the world now and the u.s. commander in afghanistan has confirmed that an american gun ship carried out the attack that destroyed a hospital. 22 people including 12 aide workers died in what general john campbell called a very serious and tragic event. he also said the attack was called in by afghan forces. it was said the you us was attempting to pass responsibility on to the afghan overnment.
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they've warned they'll protect their air space at any cost after russian jets scattered f-16's along the syrian border last week. nato called on russia to stop the provocation while john kerry said turkey would have been within its rights to shoot the planes down. to ntists from japan trying come down to their work on paradise fighting treatments. they developed a drug that nearly eradicated river blindness while also a medicine that significantly reduced the death rate from mall area was discovered. the committee said they reduced human suffering. reepings a familiar ill yar reframe when looking for -- repeating a familiar ill yar reframe when look forgue clarity from the fed. ♪
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rishaad: trending business the big question still dominating investors' minds will be when will the fed move? she says she is expecting lift off this year but markets are increasingly betting against that. the timing behind it is crucial. hong kong finance secretary says more clarity is needed. >> we are concerned about the
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rate hike. i think the businessmen in hong kong would like to have a certain degree of certainty going up or not going up. that.t's be clear about i think that the businessmen can make their own decision as to how they want to manage their business situation. so we look forward to a decision at some stage. >> would you like more clarity out of the federal reserve? >> definitely. i think more clarity would be better for the businessmen to make their commercial decisions. >> everyone wants more clarity, right? the fed keeps giving they say more clarity but it never seems to be enough. okay. but do you expect, though, to have real world impact on hong kong? you have analysts saying a fed raise hike could cause interest rates to spike in hong kong and it may mean property markets could call 10%, 30%. who knows? >> the property market in hong kong has been going up quite in a big way for sometime.
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>> incredible run. yeah. >> and i think a rate hike is going to send a different message. but initially the rate hike is going to be quite small. i don't think the impact would be huge but in the longer term people would take that into consideration and not to assume that the rate will stay at zero forever. >> what do you worry about then? what's on your mind? what is the biggest worry? >> the biggest worry now is really the demand in terms of demand for goods in the world. the whole of europe is in recession. japan is not growing much. the u.s. is growing albeit lowly. i think a lot of the emerging economies will suffer and as they suffer the whole world is going to get into a bad situation so what we look for is to get over this recession
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hum and then the whole world is going to go back into overgrowth. >> you believe it is going to get worse before it gets better? >> i am more optimistic. i think we are going -- i think in terms of the u.s. it is going at the right rate, moving p, and that's a good sign. >> plus wherever you are, download the bloomberg app to our mobile device. well, would you believe we're already into week three at the rugby world cup? the quarterfinalists will soon be confirmed. two matches today. canada faces romania. the big games coming up this week australia facing wales to decide who will top it. the world cup draw saw
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australia and england fighting for two places. japan is preparing for the u.s.a., a match that could see the team win three group games yet still be knocked out of the tournament the u.s.a. facing south africa before the japan game. coming up next, could be about to offer share holders some consolation. shares have been on the longest losing streak in more than three decades. maybe they'll do something about it. we've got the details coming up. ♪
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rishaad: look at our top stories. the global rally continues asian shares gaining for a fifth straight session the longest rally since april. this is often during the worst quarter in four years. equity markets getting a boost on speculation that economic uncertainty will force the federal reserve to push back the action on interest rates until next year. five years of talks ending finally with agreement on the trans pacific partnership the accord covering 40% of the world's trade and lowers tariffs on a range of products from rice to drugs. critics say it threatens
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domestic jobs. in washington alone both sides of congress have denounced the deal. south korea says this morning it will actively consider joining the t.p.p. but china does remain outside. investors at samsung could be in line for a boost having seen almost a quarter of the company's value, maybe a share byback consolation and expecting the world's biggest smartphone make tower use some of the $# 5 billion cash reserves to buy back shares as early as this month in an effort to return perhaps some value to stock holders. the company's range of new phones hasn't fared well against apple and cheaper chinese competitors. let's have a look at what's happening as we go to the asia pacific heading for the biggest five-day rise since 2011. just getting the close for japan for their lunch break. >> rish, japan going into the lunch break very strong on the back of this trans pacific partnership seeing the nikkei up by 1.5%. we've also heard from the finance minister of south korea
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today saying that perhaps korea will join the t.p.p. as well. we are seeing a big pickup in the kospi index and one also 5%.her the kospi up by 0. the hang seng has come off a little from the earlier session high still a big pickup in glencore shares and the casinos. malaysia and singapore and gentleman carta looking jakarta looking strong. australia getting a boost from the tpp. this is a picture on the asia pacific index at the moment. you can see ev sector is green. oil and gas leading the charge on that rebound in the oil price that sector up by over 2%. well, here are some of the stocks in australia that will really benefit from the tpp. wurley parsons having a solid rally up 10%. in korea of course samsung
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announcing that share buy back. the share price up by almost 3.5% in japan. one of the best performers on the regional benchmark index today up almost 6% and as i mentioned casino stocks in japan doing well for a third session. we have the hang seng index extending the four-day advance the longest winning streak, rish, since june 24 here in hong kong. rishaad: this tuesday, this trans pacific partnership deal and what it means for this part of the world and the wider world as well. japan's prime minister is pretty much clear that he is a great supporter of the deal. >> this is the dawn of a new asia pacific sanctuary led by japan and america the tpp nations have come to an agreement on a pact to bolster freedom and prosperity in the asia pacific. we must ensure the tpp turns into an opportunity not a crisis for japan's farmers. it must spark a new era for the
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agriculture sector. >> what do the comments mean for the tpp deal? the news japan and korea -- you're saying it is a new era. of course the platitudes come up but the critics have been lining up haven't they to some extent here? what have we got in terms of all of this? >> that's right, rish. so we just saw a report that the japan agricultural rep in hokkaido has slammed the deal worried about the impact on dairy farmers. but i think beyond that we're not going to see a ground flow of opposition in japan. first of all, prime minister abe, his coalition is way too strong in parliament so we aren't going to get any sort of push back there. and beyond that, i think you have to say this is a pretty good deal for japan. the auto industry which accounts for about 30% of exports to the u.s. comes out ahead and then food.
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japan imports about 60% of its food and food prices have been rising lately because of the weak yen. this is going to cap those rises in prices and i think it's going to make households happy which should make voters happy. rishaad: brian, what about prime minister abe here? how does he come out, he's got this huge farm lobby very powerful, has he been seen as giving in? >> yeah, you know, it was interesting to see the way he was trying to sell this message, this deal in his televised remarks a little while ago. he had three main points. the first was he said he was able to protect the most sensitive areas. that's rice, wheat, sugar cane. he also said japan retains the right to kind of pull back from the deal if they see the volumes of imports shoot up too suddenly. didn't say exactly how sudden is too sudden. and then the other thing is he said that the government would try to put together a support package to aid those who are
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adversely affected by this deal. so he's kind of covered all the bases there. and also keep in mind that the farming community in japan is aging at a faster clip even than the overall population. so i think this is a deal that japan really needed and abe is going to keep making that point. >> okay. does this do anything to try which has abe-nomics looked a bit forlorn of late? >> i think it does. it sends a message about reform so the agriculture industry that's been affected by this, they're going to have to become much more efficient and that is really something japan's economy overall needs to do. it is probably going to set back efforts to stir inflation, however. we've been expecting the b.o.j. to sort of pull back on its time line for 2% inflation. and if anything this is going to make that even harder to achieve. so we expect that to come in the next few weeks.
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rishaad: thanks very much indeed for that. that of course is brian fowler there in seoul. this deal, this tpp deal of course causing a healthy debate online. from australia to china and all the places in between. we're having a look at what's being said on social media. >> rish, i've just taken a tour of various presidents and prime ministers in asia. their twitter sites, comments, and it is interesting to see the countries left out of the trade deal, no comment as you would expect but those included, well, some glowing comments. let's look first at singapore. very pleased with the deal on the tpp has been reached. the prime minister writes many benefits for local businesses. as we carry on this is what we see from australia posting a link to a statement the australian government has put out saying the 12 tpp countries make up about 40% of global gdp and last year one-third of
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australia's total goods and services exports, $109 billion australian were sent to those countries. clearly a vote of confidence. we do have some countries of course excluded. china namely and southeast asian players including indonesia, thailand, as well as the philippines. south korea by the way says it may join. business leaders are commenting as well. mike smith in sydney the c.e.o. there saying the biggest trade deal for 20 years. he sees it as a huge boost for the asia pacific and certainly for those farmers and commodity producers as well. let's look at what some are saying in china. because china of course excluded from this deal and this deal seen as a counterweight to china's influence. these are comments on the chinese instant messaging similar to twitter. we've wasted 15 years to join the w.t.o. this person writes and our population and resources contributed to the short-term economic glory. so certainly not necessarily approving of the deal there.
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and another comment here w.t.o., a circle of friends. tpp is circle of friends and the main leaders of the groups the americans. that's the view from some users in china there commenting on this. certainly a mixed reaction to this tpp. no doubt it is undeniable, rish, this is a landmark deal that will rewrite trade rules for years to come. rishaad: thanks. let's move to some of the other stories we're following. we got blackstone the latest to come out in support of china. the chief executive says despite the obvious slowdown, consumer demand remains strong among the middle class. blackstone owns shopping malls in china and has stakes in real estate and the consumer side of things. >> i think there's been almost a panic regarding china, you know, whether it was hard landing, whether it was recession. i don't think that's going to happen. >> tenants getting the upper
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hand in singapore as rental rates there posted their first quarterly drop since 2012. average monthly gross trends in the central business district fell around 4.1% per square foot at least quarter on quarter to the end of september expecting rents to fall as much as 7% this year. any further 8% in 2016. apple has bought a startup that specializes in image recognition. terms of the deal have not been disclosed but it is developing echnology that runs artificial intelligence applications without user data. the government may buy back its shares after sales of new smart phones and the loss of almost a quart ev samsung's market value since march the company may buy back its shares. rob, things have been going wrong for sometime. what is actually going wrong? >> part of samsung's problem are the challenges it produces in so many different price
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points in this smartphone market. they put a lot of effort into the galaxy s6 which they unveiled in april. they thought this was going to be the flagship device that was going to perhaps get back the initiative from apple but it hasn't turned out that way. rishaad: also the suppliers there as well. >> yes. rishaad: and the edge. they didn't make enough of them did they? >> they got the market estimate wrong. they thought people would go 50/50 for the flat swing and the curve screen. turns out it is more like 70/30 and they didn't produce enough. the one hit they had they couldn't produce enough to sell. they had excess of the other one and a couple months ago they announced they'll cut the price of both of them. that is getting into the one product they really count on to boost profit margins in the mobile business because the higher up you are in the price scale the more profit margin there is. that's why apple is so profitable because it sells its devices at the premium market and doesn't get involved in discounting and that is the best way to drop the bottom line. samsung is struggling to get
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that strategy right. rishaad: they do have the share buyback, what does it actually mean for the ordinary share holder? >> for a start it depends on how big the buy back is going to be. we spoke to some analysts who expect a 1% buy back so talking $1.5 billion u.s. you take that out of the market, take it out of the circulation and therefore you have a floating effect for the rest of the shares. some estimates are that based on previous buy backs, they've only done a couple in the past so not a whole lot, but previous buy backs have shown it is usually a rally afterwards. people start to expect more buybacks. samsung has got $55 billion of cash or equivalents on its balance sheet and can afford to buy back more stock. when the share price has suffered as much as it has for ordinary share holders this is a chance to sell into the buy back, get cash for the stock and also for samsung to shrink its base. rishaad: not just to help the ordinary shareholder. the founding family here as well which can strengthen their grip on the company.
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>> absolutely. the family typically don't sell their shares into buybacks for any of the samsung companies so while they control samsung with a minority stake overall across the samsung group which is some 70 companies we're talking about they've got less than 10% of the shares but they control it through the cross holdings. any time ordinary share holders sell out it increases the power of the lees so they can tighten the grip on what is south korea's biggest conglomerate. that works out well for them. they don't necessarily have to lay out cash because the samsung buy back will effectively do that for them. >> thank you very much indeed. up next more on the historic tpp, discussing winners and losers with the american chambers of commerce. ♪.
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rishaad: a look at some of the stories making headlines around the world with the former hong
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kong chief executive saying his conscience is clear after he was charged with misconduct, facing two counts related to his office and could face seven years in jail if convicted. one charge alleges that he failed to disclose his interest in a property leased to him by a businessman whose company was applying for government licenses. he is due back in court on november 13 and as he expects -- says he expects to be exonerated. continental southeast asia has reached thailand authorities in the south saying children, elderly, and those with respiratory diseases should stay indoors as air quality deteriorates to hazardous levels. banks reviewing their operations in order to make it harder for companies involved in slash-and-burn practices to access financing. singapore has some of the biggest vendors to indonesian plantations accused of causing those fires. air france executives fled with their clothes after workers
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protested at almost 3,000 planned job cuts. the airline's head of human resources scaled an eight-foot fence at the airport. tempers boiled over as the airline said it might have to make its first dismissals since the 1990's after talks with flight crews failed. the parent air france said it would take legal action over what it calls aggregated violence. well, back here negotiators have agreed the historic trans pacific partnership and while politicians welcome the news the critics are already sharpening their pens. there are issues on both sides. thank you very much indeed for joining us. well, first of all, what is your take on all of this? >> well, we're very excited. we congratulate the great negotiating team at the u.s. trade representative office together with the united states, 11 other countries negotiated over five years. this should be a great agreement to expand markets,
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level the playing field, and open markets for u.s. companies. we're very excited about the prospects of the t.p.p. being approved by congress in the next few months. >> you've been sounding out some of your members and what are they making of it? is it a broadly positive take alt the moment? >> it is. especially out here in the region. i'm chairman of the association of 29 american chambers of commerce throughout asia. we're on the front lines of opening markets in the region and this is a very dynamic region. this is the exact type of american leadership that we're -- we have been looking for. this is the pivot. and so we're very optimistic about the prospects that this t.p.p. agreement will bring to american companies but to all 12 economies in the agreement. >> well, the optimism you seem to have is not really shared by many people in congress. are you confident they can get, that president obama can get this through?
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what is the major gripe? do you have any sympathy with it? >> well, you know, the political dynamics will play out in the united states and it's a very difficult, as you know, with the election year coming and all of the dynamics inside of congress. i think there's a lot of attention focused on very specific sectors and i think what's important is to look at the big agreement, at the macro level. does this enhance america's competitive edge in this region? we've definitely believe that it does and i think if we keep the dialogue aimed at the opportunities here that the congress should be able to approve this agreement next year. >> you mentioned that this is the pivot of obama's famous pivot to asia. now, what about your members in asia? what opportunities does this actually bring up for them?
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>> well, one thing that it does is it sets a standard rules and it increases the rules by wish trade will take place among these 12 economies. i think those domestic reforms, the companies that are already here are definitely looking forward to greater protection of intellectual property. how you compete with enterprises, the protection and issues dealing with cross border data flows, the set of rules that's going to level the playing field for american companies that are already here. but it's also the expanding of access to companies that aren't here. and so it's -- there are two elements to this agreement that offer great potential. >> and last and certainly not least, china's while excluded, not in this, how much does that counter the influence china has in this part of the world? >> well, south korea is not in
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it. neither -- the philippines or taiwan, it is an open agreement. so what i'm excited about tpp is that we do think that this will trigger a race to the top where members who are not a part of tpp can join in the future including china. so this is not to exclude china. this is an open framework for other economies to join down the road. >> jackson, thank you very much indeed. from the american chambers of commerce, jackson cox. we have to take a break. coming up on the other side we'll is a look at what is happening in india where the prime minister is getting a helping hand in his plans to go green. we're headed to india coming up. ♪
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rishaad: this is how the nikkei
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managed to close out the morning session at 1.5% gain there. generally speaking asia pacific stocks heading for their fifth consecutive day of gains. it could be the longest winning streak that we've had since april. now, we do have of course the global policy remaining here at the moment bolstering the case to buy equities around the world. this is the situation when we look at australia. let's move to singapore and have a look at what's going on there and have a look at the haze. yes, pretty bad. 1.2%. here in hong kong in the absence of trading in china, of course it is still golden week for the mainland. hong kong is back to work. hang seng gains are a bit more muted than elsewhere. just shy of the psychologically important 22,000 level. germany has agreed to invest more than a billion dollars in dia so the project -- angela
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merkel offered a joint conference with prime minister modi in new delhi. what is the significance of all of this? very good morning to you. >> good morning, rish: germany's the most important trading partner in europe and bilateral trade worth nearly $18 billion in 2014, both sides yesterday signing the deal in the capital on global energy and approval for german companies to operate in india. the two sides also signed agreements worth nearly $2.5 billion as part of german investments in developing clean energy corridors and solar energy industry going ahead. this of course coming ahead of the crucial u.n. climate change talks which will be held in paris in december. the leaders also discussing esuming their free trade negotiations. trying to woo bilateral commerce on which talks began in 2007.
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amongst the deals signed yesterday, germany has agreed to lend india some of the educational expertise that has turned it really into an engineering giant with skilled workers crucial for prime minister modi's needs. the stumbling block so far have been the eu's unwarranted decision to suspend about 700 indian drugs, an issue which has caused india to approach the eu to look at that. that is something that came up and will continue to be in focus today. angela merkel heads to the southern capital where she will be meeting with tech giants as well as german corporations. back to you, rish. rishaad: thanks very much. up next, we've got asia edge coming up. going to be recapping the big stories of the day. so far. we'll be heading back to the bloomberg markets' most influential summit to discuss
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golden week prospects with miramar group's chief finance officer. we'll ask him how his visit is going. this is bloomberg's "asia edge" is next. ♪ .
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♪ mark: i am mark halperin. john: i am john heilemann. with all due respect to new york city, tonight, mark and i are at the center of the universe for real. ♪ it is the early-stage special, sports fans. i am here in iowa. these are two states that make up 1.4% of the entire population of the united states but have an outsized role in determining who will be the next president. let's start with the activity where you are in the granite state.


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