tv Bloomberg Markets Asia Bloomberg April 20, 2017 9:00pm-10:01pm EDT
>> it is 9:00 a.m. in hong kong. rishaad: we are coming to you from bloomberg's asia headquarters. this is bloomberg markets. heidi: asia-pacific markets climb among optimism president trump will push through tax reforms. rishaad: the bank of tokyo governor tells bloomberg he will maintain current monetary
policy. biggestnd the world's signess carrier subscribers and sees a return to profit. >> we are in the beating economic heart of this city. the president once to see it emulated in the northeast. we will bring you that story rishaad: taking a look at airline stocks. downgrades, china southern and china eastern, all getting the downgrades. the reason why, let's bring up this chart. it is morgenstern's contention china's international travel boom is over with. we will get steady growth, not
still are growth -- ste llar growth. passenger traffic trending down. that is the contention. we are looking at those stocks at the open and more. haidi: absolutely. the chinese carriers have been adding capacity. amp up competition with the carriers. we are about 30 minutes away from the open. what will be interesting is the resilient of the rally we are seeing. based on just one comment from the treasury secretary saying these reforms will come soon. no detail at all. the markets taking it and running with it. let's get it over to shery ahn. this is an interesting rally. french elections are
going to raise this issue of politics again. it is not surprising. we have seen little detail out of the trump administration, and yet the stock markets have reacted. not got many details. also the fact, as you mentioned, the french elections are coming up. market could be needed later on. most markets are in the green. south korea, up 0.7%. today isant to watch the japanese, up 0.7%. they will maintain qe despite -- even if the economy grows above average. right now, we are not seeing the yen.
right now, what we are seeing is the kiwi dollar leading the decline. iron or, surging. quarter production beating outputs. markets mostly in the red. treasuries continuing to fall in asia. trading yields continuing to rise. the fed futures, gaining ground. 56.7%, a steady rise. earlier,nd of a fall low 40%. now, we are above that. course, the pressure point this week and asian stock markets has been china. reachingseng index,
key levels. expectationsot of about this training system. flows into china. the shanghai market. averaged around $36 million a day. yuan.illion small compared to the expectations we got. the news we are getting now is traders make it additional days to trade into shanghai. because of the holidays, the difference between mainland holidays and hong kong, a lot of traders could not get into the markets. we are hearing they are looking into arrangements to keep the northbound link in shanghai and
shenzhen open. to 32 week days of the year. they are trying to improve these flows into china. rishaad: thank you for that. word take the first headlines. in central paris, it has been shotd off after a gunman three police officers, killing one and wounding the others. counterterrorism investigators are at the scene. the attacker seems to have been alone. the area has been cleared. metro stations shut down. ors in chinaatio will consider impacts as they introduce new rules and shadow beckoning. -- thinking.
bloomberg reported in february the pboc was drafting new rules. shares jumping in sydney. the austrian government approving the $5.6 billion takeover bid. it will give the billionaire access to an energy network. duet shareholders vote on the deal later friday. haidi: saudi arabia says several oil producers have reached an additional -- initial agreement. have months of production seen opec failed to stabilize the market. identifyter did not the countries in favor of an extension but says there is a commitment. >> there is initial agreement,
but we have not yet told oil producers we may be forced to extend the measures to reach our goal. haidi: global news, 24 hours a analysts andby reporters across 120 countries. this is bloomberg. rishaad: the bank of japan governor has told us he will continue with quote very policies.ive with inflation rising, whis providingng to keep stimulus? i have to ask you, what is the main takeaway here? >> i think that first of all, let's remember he is speaking one week ahead of the bank of japan meeting next week. what we are going to find when they conclude their meeting his they are not going to make any policy changes.
the question is if they will change their forecast, anything about their approach. the bank of japan, they probably figure -- as governor kuroda said, he is positive about the economy. move that had a whiff of being less accommodating, that could be bad for this national trend they have of rising inflation. he does expect inflation to get the 2% target sometime next year. let's look at the chart and see what a long road he has to ho e. the white line is the core rate the boj watches most closely good with the aligned, that includes everything. it has food, it has energy. the turquoise line takes out food and energy and you can see how it is starting to edged down, underscoring how much energy prices play into the bank
of japan to get inflation high and moving higher. governor kuroda, when asked if you are worried about the yen, that is another thing, a week yen can help boost inflation, he said a stronger yen can slow things down but not stop inflation from moving higher. the timingend uas -- could be slightly delayed. if the exchange rate depreciates, the timing could be earlier than otherwise thought. trend is towards 2% in a gradual manner, reflecting the improving outcome. it is true, the yen is up 7% against the dollar this year. we are going to keep buying
bonds, he made it clear. they are not getting any more stimulative. giving all they are doing, it would be tough to do that. nice,k they have a sloshing pool of liquidity and he is hoping it is going to translate into more inflation. haidi: you kind of got this central bank decoupling again. fed officials are insisting they are on track or three rate hikes this year. what is the latest we know? >> every fed official who speaks to bloomberg television is on board for at least three rate hikes. you can put kaplan in that group. i think rob has developed a position in his position in the dallas fed as someone who is a centrist. he reflects what the majority view is on the open market committee.
she has been known as a hawkish fed president. says three hikes, maybe four. but if the economy is not as strong as we think, it could be fewer. the fed is still data dependent. it is our baseline view. the onus is on the economy to prove it is not strong enough for that many hikes. ak inl sales were we march. first quarter gdp is often weak and it goes up. the cpi decelerated in march. just about 2%. it had been higher than that. let's look at a chart. it is a nice line. the odds of a june rate hike are
at 50%. you see how there is a steady decline. the fed could head toward this greater number of hikes. think, we are watching the numbers. the fed included. numbers have to prove they do not have to move rather than the other way around. haidi: a good point, kathleen. still ahead, we will be getting the story behind a returned to profit at china mobile, the world's largest wireless carrier. where to invest in these uncertain times?
little further along in so-called normalization of a rate before we let the balance sheet run up. that could be as soon as later this year. we should begin the process of letting the balance sheet roll off. >> we are encouraged to see stronger prospects after years of disappointing growth. countries need to continue with structural reforms. this is vital to sustaining growth. >> looking at the downside as we always do, there are risks to the downside, including political uncertainty. remember the green shoots of 2011 which did not last long. haidi: our next guest says his clients are adding exposure to gold and bond in uncertain times.
he joins us from singapore. great to have you. i'm going to put my glass half-full hat on. the imf up grading the global forecast. markets getting another leg up. what risks are you looking at? look at thef you markets as a whole, you have seen volatility creeping up. uncertainty being priced into the markets. level.ity was below that we have seen it pop above 14. above the 15 level. last night, we saw with a little index reflation talk, the dropped off 5%. as uncertainty creeps into the
market, we have seen our -- more money is going into the gold and u.s. treasury market. not so much the treasuries right now. they continue around the 220 level. as we have more uncertainty, i think i would look for more flows into gold and gold stocks. haidi: are you expecting a bit of a turning the markets going into the first round of elections in france? you can conversely see this reaction in sterling, going into the election that has been called. that has been a little surprising, perhaps? >> i would say a little bit surprising. a little bit of a knee-jerk reaction in terms of the moves come the sterling did pop up.
with the snap election and the we have threens, candidates going into it. epen, i think we are going to have a runoff. we look for a little bit more market clarity going forward. if we do continue to see strength in the pound, the sterling stays above that level which i think we are going to see that. we see large banks like deutsche bank kind of reader their forecast saying, we think the pound is going to head higher from here. if we do see a higher pound that on the ftseeadwinds going forward. 70% are created outside the u.k.. french elections, the snap election, a lot of uncertainty. i think we are going to get a
clear picture in the next few weeks. you describe your clients in march being polish. how are they in april? >> they have been relatively bullish. we haven't quite come out with final numbers for april. they have been actively trading in the financials ace and also in the consumer staples. earlier, a few weeks ago, we saw the highest in terms of home builders. outlooky, the highest for homebuilders going forward we have seen in more than a decade. rishaad: you clearly like oil, or you like certain companies. chesapeakeing
energy. tell us about them. the oil space,at we have been beat up for the past two years. continue to get that areement to come here later, lot of that short-term price is going to be driven out of the u.s.. there is talk refinery runs are picking up. we are going to get some sort of curve. even though opec and non-opec has stopped to their word. just in terms of a value play, i exonssome of the larger
and chevrons are good in terms of yield. relative value, marathon oil and chesapeake, if we do get an uptick, we could see some value in stocks and those two particular stocks. haidi: looking at your notes, you said there is nothing on the mentally wrong with the chinese markets. this is a liquidity stories. you imagine the only way is down from this point. basically, i would be very cautious in terms of where we are headed on the chinese stock market. it seems like there's a lot more volatility priced in. would dip my toe in, only one toe so far. in the next 1-2 months.
storybt that dilution playing out. communications down by 20% plus. haidi: we have been watching this story. they will many bit products, potential bill fraud. the largest private lender in beijing. the bank says this case is not related to bill financing, saying the subbranch had fabricated documents. up operations to deal with the people, the clients involved in this case. , clearly paramount is the
and to find out how to catch exclusive videos featuring rdma host jordan fisher. and the ardy goes to... watch disney channel presents the 2017 rdmas. april 30th on disney channel. the hong kong observatory wheel. it is 9:29 at the moment. coming to you from bloomberg's asia headquarters, i am rishaad. are seeing this tenuous rally in asia. the yen of fact, after kuroda said, no exit plan. it is too easy -- early to even talk about an exit strategy.
no details, but the markets just kind of running with it. fiscal reform is definitely there. tax reform on the agenda. the bank of japan policy remaining accommodative. i cable down 20.5% in the market. we do have the reopen in hong kong and also on the china markets. 300are seeing the csi pretty flat. it has not been a great week. the shanghai composite, also flat. we are seeing some good gains supported on the japanese equity market. hong kong opening as well.
as heidi mentioned, we did not get any firm details coming through but we are seeing that buying momentum. let's look at some of the movers. there is a fair bit of corporate news around today. the best gainer, up 9.5%. this deal has been approved by the government. it still needs shareholder approval. we are seeing shares up 9.5%. also, very much under pressure. technical showing it was in over scored -- oversold territory. buying comingive
through from travel related stocks. atwe switch it out and look the losers, toshiba shares under quite a lot of pressure. down 5%. there was a story saying some stakeholders are seeking ¥18.3 seekingworth of -- ¥18.3 billion from toshiba following the accounting scandal. also under pressure in sydney. down 10%. seeing flat sales growth. you.ad: thank a quick check on some of the first word headlines. sayinglas fed president things are on track for two rate hikes. his comments a bit of a shift
from the past. as the fed backed away from hikes in the face of unexpected obstacles. he went on to say there is no rush to unwind the balance sheet. gety own view is we need to a little further along in so-called normalization of rates before we begin to let the balance sheet run out. that could be as soon as later this year. we should begin the process of letting the balance sheet roll off. haidi: eu governors have brexited their stance on negotiations. the document obtained suggests theresa may will not have an easy ride, even if she convincingly wednesday june snap election. rishaad: the turnaround in
mattel has a long way to go. of $.32 a share, almost double what had been calculated. barbies comeoncern back is faltering. she is the biggest property. shares dropped 13%. haidi: a news report says china is prepared to halt oil exports. the claim comes as south korea, the south koreans and the u.s. hold more military exercises. they have announced the drill as a prelude to an invasion and threatened and attacked. news, 24 hours a day. this is bloomberg. let's have a look at
what has been going on with china mobile. profit for the first time in three quarters. up nearly 4%, millions of new subscribers signing up. when did you find interesting when he went through these numbers? >> pretty much in line with market consensus. it has strong profit growth. driven by strong demand for 4g data usage. that would be the growth driver for all carriers going forward. year,17, the rest of the profit growth will continue to slow down for three main reasons. first, as 4g matures, they have the highest 4g penetration. rishaad: 66% already.
it is much higher. rowre is room for them to g is less. second, intensified competition from rivals. as they improve their network quality significantly. that will pressure china mobile going forward. thirdly, the regulation. asked carriers to reduce prices. that will affect china mobile the most. they have the most high-end users. what about the competitive landscape? what are we expecting from china unicom? competition will
intensify. the quality of network and proved. also, share of 4g network. they can have more to spend on marketing to gain subscribers. we are going to bring this up. looking at how it stacks up. battling to become the most viable carrier in the world. at the moment, it is at&t. mobile, 220. the thing is, with the subscriber base, more than the european union and the u.s. put together, you would think they would have a better metric. a better market cap. >> it also depends on our price usere average revenue per
is lower than the u.s. that would pretty much explain why there market caps are slightly lower. iny do have dominance wireless carriers. it also depends on u.s. competitive landscape. haidi: michelle ma for us to read traders may have more time to sell mainland shares. hong kong exchange says they are working on arrangements to keep the links open on days running up to public holidays. benjamin robinson joins us. is this a very significant move? it has been a long time coming. at the moment, around 30 days a year. 30 days when the link between the hong kong exchange and the mainland exchange is closed.
of public holidays in one market or the other. this has been a source of concern for investors. initially, we are looking at the extra days a year which would come from the days before hong kong public holiday, they are going to keep that open. the suggestion a further eight days or so will be added. holiday,e is a public they will still be able to place orders through to the mainland. why does the currency system illicit complaints? also, concerns, really, from investors? >> because at the moment, if you look at public holidays in
you have situations like christmas or easter when it is a public holiday in hong kong but not in china. cannotns of why the link remain open. marketough the hong kong is closed. that is what the exchanges are working on. rishaad: benjamin robertson joining us. let's tell us about resident she's thinking -- the chinese aesident pledging to create new economic zone. we have a special report. ♪
"bloomberg markets: asia." fujifilm plunged at the ann, delaying results after accounting investigation. the company says they estimate in impact of $200 million on past earnings. no date has been set. a third-party committee is investigating. western digital says it is in talks with the government investment fund. they are wanting to sell that by next march to raise cash. participation may be key. it is also said to be among the potential bidders. analysts raised their
price targets on apple. morgan stanley is the latest, data --upply chain and apple has raised more than 30% over the last year. morgan stanley sees shares of 151 in 12 months. china's plans to build a vast new economic zone sparked off and investor frenzy. plans to transform a patch of northern china into the city of a future. tom mackenzie try to find out more. tom: she's thinking -- the chinese president envisions a modern metropolis rising from
the stretch of largely undeveloped farmland. it will cover some 2000 square kilometers. it could rival the lakes -- likes of shanghai. it will be home to business ranging from tech firms and others, as well as universities. speculators from across the country rushed here within hours. by dribbling house prices overnight. the government felt forced to step in. says,ropaganda sign cracking down on real estate speculation. they put it up next to a sealed off real estate agent. beijing says all land and property transactions have been blocked's june. every agent we saw had been shutdown. all construction stopped. it is not just property
speculators. he is one small businessman among many hoping to make it eight. >> i will open my restaurant very soon. tom: he moved here just four days before we arrived. away fromr a new life what he calls the dying northeast. andhe local economy conditions are very satisfying. with full support, it will take off. tom: they expect the population in 15p 5 million with years. it could also help soak up some of the excess capacity. the grand ambitions make many
locals anxious. farmers we spoke to said they fear they will be forced to relocate or have land seized. many small businesses have already been told to move out. xi has vowed to reduce pollution and build a economically friendly zone. live upclear if it will to lofty ambitions. what is clear is the strategy to leave a lasting legacy which could also boost the economy. haidi: tom is with us now from shanghai. what they are hoping will eventually look like. tom cole and that is right. that is why we came here, across the water. as you know, it was up until the early 1990's largely farmland
and marshland. this, as you say, is an area xi once to match. it is the framework that the president has put this that under pins optimism. fors going to be a legacy communist party members. a critical to be strategy for a millennium to calm. there are key challenges. this area is effectively landlocked. it is not near major ports or waterways. there's a complete lack of water. it is a dry area. the government says they are going to build a massive transport network. the role -- some say
of the private enterprises in the new development zone will be crucial to whether it succeeds or fails. the government says it is going to be another test bed for opening up and reform. in the past.d analysts say we are going to have to wait 15 years before we can see whether it can match the likes of the development behind me. what are the dangers? 15 years before we see whether it is a success or not. being one of those added to the list? tom: that clearly is a danger. they have come up with projects have floundered and not met
high expectations. for many, it is the fact this is being endorsed by president xi, and he is seen as being one of the most powerful leaders china has had in many generations. he wants this to be a lasting and concrete legacy for his leadership that underscores the optimism. clearly, there are skeptics because of the geography of the place. it is pretty much landlocked. there is a population of little under 100,000. they are going to have about 5 million people living there within a decade. the amount they are going to have to spend on infrastructure and building this place up is going to be key. jen benefited from hong kong. as well as the waterways and those economic links. have that but they
hope it will relieve some of the pressure in beijing. they are bringing in architects and designers that will help shape what they are describing as a city that will be at the top of its class in terms of modernity. green as well. they want it to be a green city. environmentally friendly. rishaad: coming up, casino operators looking for more loans this year in macau. you are watching lou burke. -- bloomberg. ♪
borrowing bigger wages. they have signed a $3 billion deal. they are hoping this is a little bit of the lid this test, the start of a revival for the market. >> the story here, macau is back in a sense. people are gambling again. what casinos are doing is targeting the mass-market. i think you are seeing maybe a little bit more confidence. >> i suppose the question is,
whether this says more about macau, the recovery we have seen in gaming. or what it means more generally for the loans market? i think the loans market, we have had a look. region as a-pacific whole, it is down about 35%. 88 billion dollars in terms of loans. are little bits anxious about borrowing. newoutlook, with the administration in the u.s.. thinkers are hoping they are companieset out soon, getting confident about a better global economy. rishaad: how his appetite across asia?
are banks getting a boost in lending? >> in terms of lending, even outside of japan, the chinese banks and taiwanese banks, they have lots of money and they want to lend it. we have seen margins have been coming down for banks as they grapple to get new business. aggressives are less in their borrowing appetite. we have been hearing the fourth quarter was not great. demand soseeing more they expect a better second quarter and second half as companies do more capital investment, etc.. doing us from tokyo. let's have a look at what we have coming up. on bloomberg markets: asia. having a look at where markets
>> from our studios in new york city, this is "charlie rose." charlie: elizabeth warren is here. she is a senior senator from massachusetts, a former harvard law school professor. she is also a long time champion of working-class families and the middle class. in she was rebuked by the senate february for quoting coretta scott king. here is a clip from cbs sunday morning. >> republicans voted to silence warren for impugning the character of alabama senator jeff sessions. sen. mcconnell: she was warned. she was given an explanation.