tv First Up With Angie Lau Bloomberg October 26, 2015 7:00pm-8:01pm EDT
convulsive sive syndrome. china says focus on the bigger picture. calls to beef up its acts as the latest grand casino opens its doors. and it's gross gym but not as much as we know it. it will be a far cry from last year's stellar numbers. welcome to "first up with angie lau" right here on hong kong
streaming on your mobile and bloomberg.com. let's see the markets in tuesday morning. the apex is pretty much flat ead of what could be a tepid trading day following what happened on wall street. over to knew zealand yesterday was a market holiday. today this is what we've got. .4% higher approximately speaking. w zealand is at .67 u.s. cents. let's head over to japan. any kay 225 last closed in the green. this as china's 13th five-year plan gets underway and we're expecting some reforms there. of course, we've got that over the weekend. any kay futures at 11%.
they have heard the case for both china's bulls and bears, the outlook for china's economy and what it means for the rest of the world will feature prominently in the discussion. >> there are two clear views at the semiannual meeting of the economic advisory panel. there's f. peter hooper who is a 26-year veteran who is now the chief economist at deutsche bank. he argues that china is successfully shifting ilts economy away from investments and as the resources to sustain growth. a difference story, a different point of view for marvin goodfriend. he says china is at risk offal ing into recession. he is a professor at carnegie university. he says there's a severe problem with this adjustment.
ou can't blame goodfriend with this assessment. he says that china's growth rate were overly exaggerated. he thinks that the economy there 3%growing at a rate of about to 4% and there are key risks to the economy. >> a credit bubble of epic pro portions. have a great economic history i have never seen in the economy drawing fast in china in the last seven years. angie: so with all these external uncertainties pointed to traders, i think that there is virtually no chance of a fed moving during this week's meeting. they do put the probability at around 35% when they meet in december. >> ok. but it's not all about the numbers, right? china's going through some
struck churel changes. how about factors some of that in? what are people saying? >> that's exactly the point. hooper is saying in the longer term support will come from migration for china's population from the rural area to the urban area. the former head is focusing on that saying you know what, don't obsess too much with those g.d.p. numbers and look at the bigger picture. take a listen. >> i think we have to separate this almost absurd focus on this rowth rate of 7% to 6.9 to 6.5%. ok, china in 1980 had $300 billion worth of g.d.p. 35 yeerls later it's 1 -- 35 years later at $11 trillion. there's no way they could have
maintained that growth. they would have consumed the world. the growth was going to slow anyway. >> basically what he's saying china's slowdown is natural especially from a manufacturing-led demoy a domestic consumer-driven economy. lee has heard the bayer and the bulls. e will be weighing all in when the policy-makers meet this week. angie: yep. fed.yes on the thank you so much for that sherry-ann. you can find the rest of the news on bloomberg.com/asia. it is our new destination from asia from australia to indian to southeast asia, china, and japan. sign up on the website and the app for all the breaking news and analysis. we have it all for you. investors eased the monetarily
moves. the s & p stalling a four-week stock rally. we have sue keenan. so it's running out of steam, it looks like? >> the interest rate has gone into stall mode officially and you could say it's kicked off a rate debate here for the u.s. because what they have done is shifted their focus from hey, we've got two central banks moving china cutting rates and the e.c.p. saying that they plan to or provide similar to that at least. there's a focus on what's behind that slower growth. so you have strategist talking about one bond strategist saying that we're facing the global economy with a slower growth profile. that is something we're -- they're being looked at. if you look at what the futures rate is telling us in terms of
how investors are positioning, they're not expecting a high rate until at least march. they have a two-day decline. and it looks like everything's going into wait mode for the u.s. no real move expected. but the question will be how much of a focus will the fed place on the china situation and the focus on when the meeting ends will be in a statement and in terms of the language and how that instructs us in the future. n terms of the big focus for investors, it is going to be earnings and fed and the wait is now a deal. one strategist says it will be interesting to see just what the fed's outlook is in terms of how it may have changeed what the central banks are doing because they certainly appear to be exerting greater control over the market. what the u.s. says after the
wednesday meeting is the latest piece of the puzzle. back to you. angie: indeed. thank you so much for that su keenan out of new york. checking other headlines. mark mo bimbings is still investing in china describing ilts growth rate as remarkable for a country that size. the chairman says a push into tech and service industrys will help china have more sustainable expansion. but still urges caution warning that a successful transition has already have price changes. >> the transition into it is definitely on its way and will be successful. it doesn't mean that all the companys will be successful. would say for every 10 new internet companies maybe only one or two will suck seed the rest will fall by the wayside -- will succeed and the rest will fall by the wayside.
we are facing a little bit of what we faced in 2000 in the sense some people getting too excited about certain kinds of economies, certain kinds of mandates and we have to be autious. angie: china, japan, and south korea will discuss a free trade agreement in their first summit in three years. the prime minister will travel to seoul for sunday's meeting. the visit will be the first by a chinese premier in five years. he, ave and president park are expected to discuss cooperation in education and the environment. indonesia's the latest country to join trans pacific trade deals. the president will make his decision after talks in the white house. the t.p.p. is seen as a count tore china's growing influence and indonesian participation will be welcomed in washington. however they point to the glacial case of reform.
why face business permit and its unpredictable judicial system? macau is being urged to be more active with a downturn in casino revenues. the executive director angela young says while the government has done a good job building up growth, it has not planned if for future. macau's growth sells more than 25% and crack down on excess hit casino traffic. well, melco crowns the new casino complex throws opens its doors today. studio city's meant to express what macau would like to become a resort not just for gamblers but for the entire family. we have david in macau. and david, what's it like there?
david: good morning, angie. well, first it's massive. like any casino this side of macau along the strip, i've never spent $3 billion in my life nor do i think i will be able to spend $3 billion. really walking around -- it's right behind me. it's a massive, massive struck chure. it does look they splashed out some serious cash to get this up and running. and you look at how much space they have dedicated to nongaming attraction goes show the commitment towards that direction. a few things they have, the world's highest ferris wheel. they have 4,000 square meters of a place for kids inside the warner bros. they have 35,000 square meters of retail space which is sort of like walking through new york times square and the other side is like beverly hills. standing guard outside the casino are these two giant
statues sort of like hercules looking flash. i'm not saying that as an adverse. it really goes to show how much melco is dedicated to turning this -- it's a more diversified revenue in the business. they totally spent a fair amount talking to executives, but staff, the security the detail all around the hotel. and really to them -- a lot of them have worked in different casinos here. they really think this is more about entertainment. so will they come? will the guests come? definitely. it's something that you're not going to get this side of macau. but also will they come and spend? that's another thing all together. >> yeah, looks like they're trying to put an oscar-winning per foreman mans for studio city. the launch is today. hat's on the agenda? >> well, a few things.
they have to get order some of these nuts and bolts. hey've been rehearsing for several weeks. they'll be meeting the media and everyone will be working at 5:00 g.m. here is the meet and greet. u have robert de niro, le yo dicaprio, martin scorsese and maybe brad pitt and maybe a musical performance by mariah carey. so a big day ahead. angie: all right. have fun for us, david. we're going to have a special interview with the chairman at 9:30 hong kong and singapore time. if you're in sydney that's half past the middle of the day. we are going check in with will nks smith and thomas actin
angie: at least 263 people are known to have been killed in the most powerful earthquake to hit afghanistan in six decades. the 7.5 magnitude quake hit the mountains of northern afghanistan an was felt in peshewa and as far north as deli. it lasted 45 seconds and they expect the number of wounded and death to rise. japan says 1/3 of rescuers of the fukushima rescue were exposed to radiation above limits. almost 3,000 troops, firefighters and police who were 2011. plant in march
38% got considerably more. cancers linked have been report nod the fukushima area. three palestinians have been shot dead after separate knife attacks in the west bank. a soldier was seriously injured when he was stabbed in the neck outside hebron. rumors that israel wants to change religious sights sacred do jews, muslims and christians. israel denies that and it accused leaders of inciting unrest. apple fell 3.2% after its best weekly rally. investors are concerned with its outlook in the holiday season and are expecting a growth of 3.1%. valiant farm sue cals pushed back accounting irregularities. shares falling another 5.3%.
it was good news for papal. 4% of shares ahead of its third quarter results. we saw the s & p retreating from .5% -month high closing at down. ayne will banks oversees the $2.75 million and joins us now from norfolk, virginia. thank you so much for joining us, wayne. what is it about this season that has you concerned? >> the numbers coming out so far suggested 75% of the companies have beat their stements but wal-mart, us is american express, hewlett-packard. what worries us are the job cuts. you'll see they're laying off
1,500, 2,000. hewlett-packard is lazing off 10,000. we're beginning to see what kind of ramifications that has for the market later on. and the companies that are outperforming like your google and amazon don't make as much of the economy as these other companies. angie: is that enough to off-set the confidence in the labor market for the fomc this week. >> you have unemployment that keeps coming down. remember that number we had last month, it was 50, 70,000 jobs under forecast. they'll continue to look at that and all these announcements that i'm talking about are going to contribute to their concerns about that as well. so -- angie: so do you think then the market's right for having priced in pretty much keeping powder -- the month for if
fmoc? >> i suspect you're going to get a good look what the markets will look like. that's a lot of chopiness and fed announcements. when you have a fully valued market based on ratios and whatever indicator you want to choose and with that high valuation it's going to make it hard for the market to move forward unless you get a real change in economic activity which we don't see right now. >> well, for a strategist like yourself how do you find value? w do you find growth in this choppiness? >> you want to under weigh things, things like energy. a lot of our tactical decisions have been around avoiding energy and shifting into the areas such as health care or considered discretionary to take advantage of it. also making sure that you don't way overpay for the stocks you're going to be in such as
high quality u.s. still looks good an even more importantly companies and strategies that have yield, current yield. so things like i.o. bonds things like that could be really important. angie: ok. you're not confident the housing market rebounds? why are you still negative on reets? >> it's a very low valuation measure. they're paying very low. there's no frex the housing market runs out of steam. we're bullish on the core housing market but there's a disconnect what reets looks like on their valuation and what you're seeing with the core housing starts you see every month. that remains the nice bright spots in the economy. ainge yeah, indeed. but that tease great point about reets there. we're going to leave it there. thank you so much for joinings us out of norfolk, virginia today on "first up." the not so merry christmas for
year. some analysts fear it may only see a small jump in sales this time. mark millian joins us from san francisco and what's causing the concern here, mark? mark: the main cause of the concern is who's going to buy the iphone come the holiday has come the season upon us? they had a big watch. they sold 13 million units when the device came out in september. and this fiscal fourth quarter is expected to produce some positive results for iphone sales. but -- i mean, finding a way to match last year's math of holiday season which is 30% sales growth compared to the year before, nobody's really expecting apple to do that. analysts are looking at about like a 3.4% sales jump in this
coming holiday quarter. and everyone's really interested see what apple projects for their holiday period. >> ok. i mean, china is still massive here. how about that for apple and growth? >> yeah, i mean, that's one of the interesting factors that really plays into the concerns about what happens in this upcoming holiday quarter which is why people are so curious about this forecast. last year, the iphone 6 was not available in china at launch and because it came out later that really helped juice the holiday sales quarter in 2014. now coming up in the next month, the iphone's already available. it was available in china at launch in september. so the chinese really bought a ton of them when it came out then. and so analysts are curious whether without that china bump apple will be able to produce
the same kind of results in this coming holiday season. angie: you might have to factor in lieu nar year. mark millian. thank you so much out of san francisco. trading high on tourism. two online travel giants team up to take the lead in china. we're going to have all the details for you when "first up" returns. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,
angie: it's k4r7b30 here in hong kong -- it's 7:30 here in hong kong. we are 20 minutes away from the trading in south korea. we're watching the action in macau as studio city opens. all that and more and online. you are watching "first up." the top story this is hour. central banks are back in focus this week. we are expecting the feds' latest policy update on wednesday and china is expected to weigh on the decision.
it follows a stiff great rise in the year from the cdoc and will dudley has been offering different views on china's prospect. one view is that it sustains growth while another says it is t risk of a recession. the oirm and c.e.o. -- chairman and c.e.o. says it should focus on the bigger picture. china's growth rate was the weakest since twain. gerstner says the slowdown is natural and there is a strategy behind it. >> i think we have to separate this almost absurd focus on this owth rate of 7% to 6.9% to 5.9%. look, china in 1980 had $300
billion worth of g.d.p. 15 years later they're at $11 trillion. they're grown at 10% compounded. there's now way -- no way they would have maintained that growth. the growth was going to slow anyway. angie: chinese travel sights sored. ctrip traded high and they were 17% higher. the companys will now control as much as 80% of china's hotel and air. ticket markets and the deal may help ease some of the competition. in ctrip.et a 25% they will gate 49% interest in sunar. let's head over to new zealand
where it looks like this really chasing the game and we saw yesterday's market's holiday for new zealand trying to play catch-up today. 67 zealand is weaker at cents. lower.ust fractionally 72 u.s. cents. we're counting down to japan and korea. let's head over to japan. this is view are -- from jay pan yesterday. we've got futured in chicago indicating that's going to extend the rally yesterday. let's see what happens because we did see that selloff yesterday. and the yen is 121.04. two companies are to merge and control a large majority of the
economy -- company. both of those shares rallied in new york on a deal that could squeeze the running. take a look at all the details and investors surely are looking very happy today. >> they're on their website booking their latest trip because this is going to control the online travel market in china. a record high in new york. look at that up by more than 22% in the u.s. also qunar up. that's the highest close in over two months and about 17 times the three month average. coldman sacks to buy on this deal. on - goldman sachs to buy this deal. it will own 25% of ctrip. they will have a 45% interest in
qunar. and it's a emergencied company at $7 billion. it's going to have a lot of -- lolts of -- lots of crew cra active -- lucrative. also ctrip featuring 39% of hotels booking some of certainly going to control as we look at the markets. that will be 17% to 18% of the market. >> wasn't it five months ago that qunar rejected an offer from ctrip? >> yes. absolutely. worth of $3.5 million chinese company. -- alibababack might 10 cents holding is offered a
buyout that doesn't already own. so we asked a huge tie-up isn't it? $6.2 million in the past year alone. but this is going to be huge news in the travel industry. companies are being seen there. profits -- now you pretty much knock the competition, american it together and they're going to control this luke cafive market where their expecting that china's online by trickling its way and be worth for $200 million. thank you so much for that juliette. >> it has been a roller closer year since its record-setting p.o. and that's reaching a higher i.q. and then seeing $150 million wiped away. however there are signs that the worst -- weighing up the evidence here. what are you seeing?
are >> we're seeing the analysts have great sales projections. the forkt though is 27%. revenue growth for the quarter. what have we learned ifer the past year in the ali sbs baba stock? it shot up to 294 billion. now about 144 billion, the biggest instructor of shareholder wealth during that period and you saw that well to 16% below it. we talk about the dough mystic company on china. winning a lot just how much influence is the stock itself. now to mention some because news for the economy. slams on the economy on how it handled face. it's prompted them how to soothe
their fears. he's been communicating more than he has in the past. he says there's too much growth in china. since that post, we've seen his third -- >> there's no denying i. when they went to new york, they really sold themselves as a approximately to china's growth. investors are surely concerned. but how does alibabba insure those investors. what we've learned -- 8 the% comes from china. but they're talking about how they really are try to to go behind e coms are. they talked about this new crowd reach. they're reaching a promotion -- how about a day of singles day which is one of the biggest shopping days of the year emple and they're focusing on data
second noming and oversee the expansion. you talk about soletting a presence in your update. to serve more as a european hub. jeremy as well as this cessions in football teams hollywood studios. not completely out of the wunds. company has nd the -- done. angie: it is about that global footprint. thank you so much for that. we've got breaking news. n.a.b. shares has halted in sydney halting the transaction that will be understood and the insurance unit for $220 building. and she says it expects to make
the announcement tomorrow. >> time now for for a look at the stories. full yearly lasted almost 70%. the economy can wants operating comes for the year and it is compared with previous pro-jegses. million yetd in $84 . japan has raised $12 million as its service goes public. e three homes says we're the biggest and ally babb back are going next year. they plan to get household to invest more of their savings. share start trading on november the 4th. the biggest u.s. bank is hoping
to over licenses some of the new branches aimed at services new climates. >> they only have one in money buy. and that in other thinks next? year. that's a look at the headlines today. ch indiana's hardest airline laurges its i.p.o. today. they hope to raise about a half a million dollars in what is meant to be the biggest shop rate. our correspondents have the details from mumbai. >> definite buzz here in the financial cap tail of india. as they gear up for the first -- and the owner of india's biggest car oris looking to raise about 150 and initial awesome marketer.
it will some share. i watch 700 to 700. this is why i feel a sense of september 2,000. citigroup are needing the offering. we enjoy the stop raking pong airlines with 30% buy. it really confirmed in order to it.250 airbus to ex-bpand 2 company -- the company essentially performs. and end this sends it to leasea. because of this model has gone and confounded a dozens trip of 22%. the last reported number of 1.12 roids is 1.
the big ends of this year. >> you can find more on that story and of course the rest of the day's news at bloomburg.com/asia. it is our new digital destination for bloomberg news from asia. from australia to irks independence ca. sign up for letters after the jake. all of the markets an analysis. -- we're next the going to talk to the man who designed the property. that's coming up next.
it's said to have been under taliban control. the associated press asked the doctors if the mill tans were there. and the answer was no. at least 30 people died in the attack on october 3rd. news asks the questions whether the bombing violated international law. a u.s. navy ship is about to enter waters around the disputed islands which china claims as its sonch territory. washington says the guided missile destroyer u.s.s. will pass in 12 nautical built by china accompanied by two aircrafts. the white house has not con firmed the operation but the obama administration says it will enforce the right to free navigation in international waters. japan has approved the resort of a third nuclear reactor since fukushima. the electric powers and the
reactor is about 320 kilometers southwest of osaka. it's likely to come back online. the company has started two reactors following the 2011 earthquake and tsunami. lco's hollywood theme casino opens today. we have david in studio city with the master mind of the new casino and resort. david? david: absolutely, angie, you work around this casino. you look around. you go through the actual casino floor. you walk through the entertainment sort of part of it and it's recall you full-on. it's a feast for the eyes. there's no better thing to talk about than the guy who created everything and designed everything himself. o we're joined by gary water
c.e.o. of goddard group. it's a massive struck chure. it's a massive project. how long did this snake >> well, from first concept -- little in a little june. it's fast track. >> let's talk about the process. melco? down with they obviously wanted something different. >> yes. us literal within a week. he had a vision for sin matically inspired resort. he really wanted to do something that would draw its inspiration from the motion picture, epic motion pictures, the pictures that stir the imagination. that's what we started with and
worked very closely with mr. hope. he and i share of love of movie. my background of movies helped too. although that's the inspiration for what we did here. >> it does look like a studio especially the ceiling. >> that was purposeful. we wanted the feeling of sound tages with hollywood boulevard and beverly hills. they have been in china. they know hollywood and they know new york. we thought they were good touch stones that went with the movie theme and the whole idea is to do something different. there are a lot of malls here, a lot of shopping. how can we make it a little different? and we went with the whole idea of hollywood and movie-making. >> talk to us about the space location. how much i guess of that came into it or melco for that
matter? >> i don't think it's smaller or larger. it's what you would require for a place of this size. there's much more space allocated to entertainment and shows and rides and attraction, you know, fun kind of things. lawrence was very clear that he felt the direction of macau needed to go in that way. the difference here is not the size of the casino, it's the proportionate use of other areas for entertainment. >> what we've seen in movies, theme parks as well bringing western culture, they worked very well in china. is that a strength that you see continuing well into the future especially in this part of the world? >> i think that china's becoming much more international anyway. and so yes sh that's true. but i think the homegrown elements can work too. there are things we are working on that have michigan more of a chinese feeling and yet bring a
western story-telling aspect. you'll see disney universal and the western piece with choi knees developers and producers ut you'll see more of a unique projects that are homegrown and will bring storytelling to it and projects to it. >> you talked a lot about these things. you designed projects in vegas. you did galaxy which is almost next door. you did this. what's the difference between vegas and macau? >> from our standpoint, what we did is we tried not to do what's in vegas. that doesn't mean we didn't take some of the rules but what we tried to do is take something that's unique to macau, unique to this part of the world. it's understanding your target market and what we try to do is create attractions that the chinese will embrace and that tourists from ever where will
embrace. we look for that balance. >> we could be here all day. that's all the time we have. we were just joined by the designer of this massive resort that's a full-on feast for the senses. gary goddard, c.e.o. and founder. angie: all right. designing success. thank you so much for that. coming up next, it took a hit in u.s. trade. will tokyo deliver a blow to one of our reporter's picks? we're after the stock exchange after this short break. ♪
their full year forecast after their third quarter profit missed estimates. they produce semiconductor devices. territory.ose to the but still the analysts' recommendations not so great. 10%. o a.b.r. sold at >> ono pharmaceutical has had a pretty good year. 11.7%. more than double its own forecast. so 11.9 billion than earlier forecasted. 6 billion yen were at 70 billion yen. ne of the drugs treats melanoma. so hopefully it will grow after that. >> i've got san rio.
>> hello. >> this is according to the any kay -- nikkei. down close to 16%. if you talk about the nikkei they're saying that earnings was a beat when it comes to net income in china as well as southeast asia. they say they are seing this declining on the u.s. and european licensing. they may be doing better in our part of the world. three by, seven hold on stock. >> i think because it's a little confusing there. >> what? >> all right. that's the verdict of the stock exchange. we're going to be back in an hour to see how they've done. before we take a break james bond is back. british royalty joins the red
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