tv First Up With Angie Lau Bloomberg August 24, 2014 7:00pm-9:01pm EDT
dollar spot is weakening. down to the open in japan, korea, and australia. let's head over. the snapping of the winning streak. the figures point to a higher week in foure best months last week. the dollar yen is weakening you. this is the dollar strength. it reached an 11 month high. thet yellen talked about economic recovery and holding steady with support. one market is closed. it is a public holiday. no trading there. toagement and unions meet discuss growing losses.
we have the latest in a long line of strikes. >> the third straight year. at a different time than previous years. they have to deal with currency said that they have the optics are not good. this. again, you have you had a partial strike and, over the weekend, they lost shifts whena day of workers refuse to take on the work in the weekends. it is important to note that they are going to work and doing a regular shift. what they refuse to do at the moment while these talks are ongoing is taking on extra work. labor action.f a
is technical. you are looking at fixed costs and variable costs and it is foldingge demand's and a regular bonus under base pay. to reach a compromise. we know they will be presenting a proposal to the union. we do not know what the proposals are and they are not commenting at this point, as i mentioned. they will not be taking extra shifts until they get these. >> to have a sense of how much this costs? >> there was a report from a news agency that got the information and we are talking about 69 million u.s. dollars. so, that is roughly double the amounts. compare that to the one last
year. said, the being impact is likely to be limited, compared to previous years. >> why is that? it depends on the strikes. we are on a partial strike. what is important to note is that it is only happening in korea. there is global production. is 1.5gest factory million. anyways, that is what we know so far. it is not as big in the bigger scheme of things. it continues. that is the thing they do not want to see. >> ri. they are meeting today. -- all right. they are meeting today.
drugmaker has been considering buying pharmaceuticals that they do not already own for $10 billion. in the face of opposition, they a u.s.fered to buy biotech firm. japan should consider opening two more foreign workers. -- kuroda says that immigration could help the society. use chinese rival will help ibm software. this is after the chinese company tried to luer away customers amid cyber-spying allegations. they are looking for new customers.
china has warned the united states to ground surveillance near the coastline after a high altitude encounter. our correspondent, stephen engle, is in beijing and is on the story. china is not happy here. >> yeah. this is an interesting case. it looks as though this is another encounter over an island. .t could spark something or make somebody do something stupid. there could be an accident and that is why we have to follow this closely. china is urging the u.s. to stop these reconnaissance flights to airspace after the chinese fighter jet had an encounter. within 220
kilometers of the island. china says that a u.s. navy airplane and a new surveillance aircraft,a patrol conducted the flights on august 19. china sent a fighter jet to carry out a routine identification and verification of american planes. china says that the fighter maintained a safe distance and that the actions of its pilot were professional. that is not the story we have gotten from the u.s.. they say that the chinese fighter did a provocative move and flew within 20 feet of the surveillance aircraft, doing a barrel over it. the u.s. says that the chinese flu at a 90 degree angle to show off the weaponry and the belly of the aircraft to the surveillance plane.
the allegation has been dismissed as groundless and it is a bit troubling. there has been a few more encounters as of late as china is in the south china sea. not an isolated case. there has been an escalation in encounters. >> yeah. with the encounters between the chinese navy and japan and the united states pivoting towards the pacific. encounters have been on the rise since march. is asserting their claims to these energy and fish-rich waters. they comes 13 years after the most serious encounter. the surveillance plane clipped and collided, forcing the plane
to make an emergency landing. that avoided catastrophe and bush's one of george w. diplomatic rows which china and -- with china and they to had to -- had toe problem unravel the problem. you have the oil companies of offa establishing oil rigs of the coast, to the angst of vietnam. that -- thank for you for that. thisere was a tv theme weekend -- if there was a keith -- key theme this week and at jackson hole, it was the labor market. erect isin different
with different messages for their colleagues and the markets. , a knowledge meant that the u.s. economy picks up faster than expected which puts interest rates on the table, even if timing is uncertain. it could short circuit the recovery. especially if investors react. acting too late would threaten growth. as a consequence, monetary policy must be conducted in a pragmatic manner that does not rely on indicators or models. it must reflect an ongoing assessment of information. it is not a question of when. ease in thecting to eurozone and is prepared to do more. growth is slowing and inflation is falling. they say they stand ready to
adjust the policy stance further. he did not mention qe. he did say that they are ready to use unconventional strategies if needed. he says he cannot do it alone. he attacked eurozone austerity policies and called for more flexibility. he wanted labor market liberalization and a large public investment program. for the third major central bank banker, there are no uncertainties. committed. what's we will continue our monetary stance until the target and inflation is maintained. none broke new ground here. there can be little question about global monetary policy in 2015 and the need to adopt
an eye stories to keep on. we were sent this from new york will stop >> a big question is the s&p 500 continuing a record rise and breaking above the level for the first time in history. stocks began within eight points of that level and failed to break new ground. a new round of economic reports. we will get the latest.
reports that consumer business spending and investment combined to help the economy grow. we will get the latest. there are sales of homes that rebounded last night. increased at a slower price. increasing tensions. merkel will be visiting with the presence -- presidents of russia and the ukraine. big companies are reporting. in new york, keenan. storiesfor a look at that we are following for you in asia. beijing thiss in week to discuss funding for projects.
$160 billionops annually. we expect thousands to begin the protest against the big casino operators. workingbetter conditions. we have malaysia airlines reporting one of the last quarters as a listed company. the company will be taken private after two disasters. there have been quarterly losses and there are no estimates this time around. second-quarter earnings will be reported and net income is expected to reach a record. than $12 million. so, you can see a busy week. check out the key of events in asia this week. our next guest joins us live
from singapore. it is a busy week. nations countries and are coming through with data. talk about the highlights. japan coming out with inflation data. >> sure. like it will be quite strong. the first bit of good news out of the economy for a long time. it may be a tough higher. the rebound in industrial vehicle sales. how peoplen is excited about india are going. we will look for more action from him later in the year they
are trying to get momentum going. >> that is the thing. the first 100 days seem to be a little underwhelming here. worryinga sense of about the reform and the direction of them. what do you think he needs to do to step up the measure to regain confidence amongst constituents and globally? we need to seek some big statements on what he likes to do with the economy. he has madeeal and changes to labor reforms. we want to see the labor laws. they make the manufacturing sector. we want to see some announcements on subsidies. it is not an efficient way to spend money. it is not so much what he does.
it is the message he is putting up. it is early and we cannot expect too much. enthusiasm forng reform and there are questions about how much they want to do? to do. want there may be optimism with the changes from the predecessor rather than his record. we are looking at the markets. >> all right. markets get excited in jackson hole. we have central bankers there. fedmarkets reacted to the coming out and saying that they support recovery's. mario came out with pointed and -- and criticisms
about the austerity measures that exist and that there needs to be more flexibility. does this data be part of the solution for europe? >> there is austerityhat fiscal has been a huge weights on the economy. it has not been entirely necessary. that theygovernments need to address. and more solid countries, finances look better. the ecb needs to do more, as well. there is so much better capacity. it looks like inflation is going down further unless they do more work.
end ofct this around the the year. >> all right. what about japan? you expect more stimulus? >> not this year. they will extend she we for qre foryear -- she we -- another year. drop in shows a small inflation. that reflects last year and there was a straight increase in inflation. it is because of that and there is a lot of spare capacity in the japanese economy, even more so with the data that has come out. this will always on inflation will think the boj about a more aggressive plan for qe. >> we will leave it there.
25 years. earthquake hit southwest of sacramento. reports say that 100 20 were injured and three were injured critically. train services have been suspended until the tracks and bridges can be inspected. in number of people killed landslides has risen to 50. days of torrential rain. 217 meters fell on the area and more is forecasted. the self-defense force has been drafted to help with the search and rescue efforts and the prime minister is overseeing the operation. value to assigns everything they can. a new study is valuing working
dogs. paul allen explains. is a fixture of farm life and it can heard sheep and cow. it is a skill that farmers find valuable. dogs bring the cows. >> a study has put a price on this work. tlay ofypical ou $7,500, the value is tackle it at $37,000. >> i could not put a figure on it. it saves a lot of money. done and they work all day. they put a smile on your face. >> he is worth more than anything to us. he saves us money and we do not have to employ people.
what's the research team placed a value on the farm dog and is now going to collect and analyze dna to find out what characteristics the best dogs share. imagine the value of working tirelessly for food. creating a navigation system to rival gps. he was threatened by satellites putting in the wrong orbit. the european space agency says they ended up in the wrong place. it is not known if the mistake can be rectified an
>> good monday morning to you here in asia. sunday night still for your u.s. folks. it is 7:30 here in hong kong. we are 30 minutes away from the opening of trading in japan. it is looking like the start of a fine, fine day. the trading week as well. we have futures pointing to a higher open. you are watching "first up." meeting in the mountains. rates and jobs top the agenda at
jackson hole. denial of service. and bumps in the road ahead. india's new credit card rules put the brakes on uber. good morning to you. i am angie lau. let's check on markets. new zealand climbing, extending those gains we saw at the start of the session. 0.5% higher, new zealand dollar spot is weakening. japan, nikkei to turn to 25 snap 89-day winning streak on friday. a nine day25 snapped winning streak on friday. 104.19 to the u.s. dollar. uber may be facing a bumpy ride in india.
the r.b.i. titans credit card rules. it is another roadblock for the taxi app maker which has been described as a legal by city authorities in seoul. haslinda amin is following the story for us. what has india done to put the brakes on uber? >> india has close a loophole. the r.b.i. now requires all transactions made on credit cards issued in india to have a similar payment system. what that means is one additional step to the authentication system. for uber to comply with the new rules, it would have to change its app or adopt a different model. what it also means is that its card management system is no longer free. it will be on par with local rivals. they have repeatedly cried foul. payment system
violates india's foreign exchange laws. customers have reported both dollar and rupee payments. this is what the r.b.i. is trying to do with a new measure. address those concerns. resistance isn't something new to uber. how difficult has it been for uber to penetrate asian markets? >> to be sure, uber has been expanding. operations in 150 cities across 42 countries including asia. it has sparked protests. i want to show you the extent of this in europe. in paris, london, berlin, protest across the city. no difference in asia. it is posing competition to local taxi companies. it is a taxi war. in india, uber is in six cities. as war against uber there
you can see is more sophisticated. it is still unclear how uber will respond to the issues. we have tried to get in touch with its asian spokesperson but no comment so far. looks like, as you said, another bumpy ride for uber. it is a tough war. in the end, customers win. more choices and lower prices. some say uber services in india could go as low as writing an autorickshaw. >> wow. riding in an autorickshaw or in luxury. the choice for consumers is there. buying luxury in china is fast becoming a hunting ground for the bargain hunters. the enormous appetite remains. the internet is muscling in on the high street with heavy discounts. if you don't want to buy, you can also rent.
john dawson doing some shopping for us this morning. >> we are aware of this. haven't as you can see, fashion. for the government in china, the campaign to get all these really big pressures on the industry, therefore you are going to see heavy discounting. e-retailery here, an website. are on bags,ts clutches, hats. example, as you are about to see in my special package is alexander mcqueen. as you can see, this is fairly significant. about a 25% discount. that shows a dramatic difference. >> in u.s. dollars, what is that? like $1200? >> yes.
i think that is about right. through steep import consumption taxes, there is a campaign and luxury spending was 30% increase in 2011. this year it is only 2%. that is a dramatic difference. the economy is slowing down. pressures are on. either you have discounts or you go for the renting option which is cheaper. if you don't want to pay but still want to dazzle on the big night, you can always rent. a new company is targeting china's huge passion for fashion. with higherstartup missions. i went to meet the cofounders. >> a celebrated model, unlikelyt banker, an
trio to forge a business focusing on the fashion conscious. yet opposites attract. this fashion show is strutting its stuff. it is designed on a u.s. model. instead of spending the big bucks, you can hire the latest and best brands at a fraction of the price. flex tnt is the first of its kind in asia. the focus is china. while luxury sales are falling, the passion for fashion is not. that is the gap in the market. it is all down to social media. >> we have to leverage the social media. i get in touch with my friends and they are out and about using luxtnt. people are aware. we bring a lot of customer awareness through social media. media is a very large
part of this. >> indeed. >> so you have been sourcing in paris? >> i got back from france a couple weeks ago. i wanted to bring other designers to the table too. a lot of people are attracted by the brand name but there are also powerful designers in europe that can use luxtnt as a platform to launch themselves as well. >> there is no man bag here. -- much does it cost to buy pick anything. one -- [indiscernible] >> raising money in this environment is tough. >> if you have a good product -- >> there is a lot of money floating around.
too worried about funding. we are worried about growing the product more. >> luxury sales are down. how do you make money? want the luxury goods. that is why we are cutting into the market. >> red carpets, a night on the town, luxtnt is betting that china's appetite for luxury will stand any economic slowdown. john dawson, bloomberg. a look now at some of the other stories we are following this morning. restore theo playstation network after users were affected by a denial of service. attempt tot had an overload the system with artificially high traffic. users couldn't log onto the
system after what appears to have been a hack attack. sony says no personal information was compromised. two banks raising funds. a $300e arranging million loan. icbc has been expanding in the region. tata motors can thank china's appreciation of land rovers for lowering its bond risk. demand helpednese tata motors report its biggest profit jump since 2010. still, as its jaguar unit soared in india. those are the top corporate headlines for this morning. i am david ingles. weeks, new zealand will hold a general election. be an easy path back to
power for john key? it has become more unpredictable. let's get over to paul allen in sydney. be throwing ato spanner in the works for john key. >> he does. he never seems to go away. not just him but a few other fringe players as well. om will talk about kim dotc first. he has been known ever since that dramatic raid on his house to do with accusations of copyright fraud over mega upload. anyway, he has now founded a political party. the internet party. he is not allowed to stand himself. while he is a resident, he is not a citizen. but he is campaigning for this candidate. he has formed a we are alliance, a marriage of convenience, with a left-wing radical party. leader could get 2, 3, 5
seats in the new parliament based on polling at the moment. dotcom is trying to appeal to the youth folks with things like digital economy, faster internet, free social education. here is a taste of one of their rallies. >> are you ready to take down the government? [applause] are you ready to extradite john key? [applause] >> as you can see, he has found a base. >> it looks almost like a bit of a joke, but it is in fact very serious.
it could actually mean an alliance for one of the minority parties in terms of finding some support there, right? >> well, it is still a long way to go for new zealand's opposition to unseat the government. if we take a look at one of the latest polls, the national party of the government still well in front at about 48%. labor-green's coalition trailing quite heavily. it would need the assistance of some of their enemies to unseat the government. it certainly made what was looking like a victory parade for john key into something much more curious. it is going to be an interesting election to watch. >> indeed. thanks for watching it all for us. very interesting indeed. thank you so much, paul allen out of sydney. still to come, a look ahead to this week's u.s. business
business council has released its recommendations to help small and midsized companies to be more competitive. for more, we are joined by sam cam. atis vice president of asean proctor and gamble. sam joins us exclusively from singapore. sam, as those economic ministers meet in myanmar this week, part howhe agenda is going to be cooperation is going to build the wealth of asean nations. talk about what challenges still lie ahead. >> good morning.
communityeconomic , economic equity development for all. enterprisesdium make up over 90% of all commercial enterprises. it is imperative that we work for the sme's to be successful. in order to do that, we have to ask against barriers such eliminating trade registration complexities, regulatory standardization. we need better access to financing as well as some breakthroughs in technology. me countries better at it than others? give me an example of a bright spot in asean. >> certainly there are challenges in different contexts given the diversity of economic development across countries from singapore all the way to
myanmar, one of the later entrants. but we share a similar problem. particularly the area of trade regulations. for instance, when a company registers a product in one country for goods and services, that doesn't necessarily mean it is harmonized across all countries. therefore, they have to go around registering their products in every single country, which creates an economic barrier for growth. >> also, free trade is a huge issue here with the trade barriers knocked down. recently, we have heard from another report that in fact, pactse those free-trade in place, it is this lack of understanding and fear and intimidation. how did policymakers help their
manufacturers as well? talk about that support. fact, despite the fact that the intra-asean trade has gotten to be $50 million, there are a lot of levels at which our autonomous were recognized. that is one of the reasons why u.s. companies such as p&g, hp, ups and others have decided orumork on creating a f to help those sme's cover these complexities. as i mentioned, regulatory complexities and so forth. the challenges are that we need to bring capabilities and knowledge transfer so they can do a much better job understanding how to go about thriving in this new economy. >> give us a macro sense of it. with the challenges in place
right now, if they were all removed, how big could the asean cooperation be for all the economies in that region? is alreadynow, asean the second fastest growing economy in asia with over $2.4 trillion. certainly, the economic development is in many different places across 10 nations. i can't put a specific number to it but there is a huge potential. the asean economic ministers and participants recognize the potential and the vision of making it come true. particularly for the sme's which are the backbone of asean. given that the economy has grown over 300% since 2001, if all divisions can come true, the growth rate will continue and
continue to thrive. it is an paradigm that sme's continue to be the backbone of our economy and grow with us. >> ok, so policymakers need to take note of that and help with the effort there. also, financing is a challenge. technologyccess to seems to be one of the big obstacles as well. >> right. in fact, we have been working very closely with the asean secretary and all the member states to bring more knowledge and experience from around the world, particularly from the u.s., to show them the importance of free data flow across borders. understanding how they can leverage technology to run their countriesn multiple as well as understanding how we can turn this into a clear, single market. thatat regard, it is great
we have partners such as microsoft, hp, google and others from the u.s. working with us in small andof creating medium enterprise competitiveness across asean. >> unleashing those opportunities. sam kim, proctor and gamble, thanks for joining us today out of singapore. coming up next, why japan's chu gai could be one of the diggers moved -- one of the biggest movers today. join us as we count down after this break. ♪
i am going to put on my best accent here for johnny. putting bronco billy on the board. not very good. >> the fastest gun in the west. an american-style steakhouse chain restaurant in japan. just to clear that up. shares have rocketed. they are going to public share sales in at least 3.1 billion japanese yen. so far, the shares have doubled. -- i can't think of the word. >> a little bit well done. >> the fastest share price in the east. >> ok. [laughter] >> moving on. >> david, what have you got? you got chugai. it looks like roche is going somewhere else. roche wasn --
considering a bid, now roche is looking somewhere else. management basically said, we don't like it. to's see if shares fall back 3000. that is where we basically were before. speculation in the market. >> ok, let's leave it there. that is the verdict from the guys. the stocks are highlighted based on -- we will be back in an hour to see how the stocks we have got here have done. galaxyrdians of the continue to rule at the box office. the group of marvel misfits not only held onto the number one spot this weekend, the film also became the highest grossing summer hit in north america, surpassing transformers. internationally, the transformers rained supreme with one third of ticket sales coming from china.
>> the u.s. dollar is extending its rally, pushing the yen toward its low for the year. coming to the table, hyundai to meet with striking workers today. and, not a citizen, not a problem. the politics and influence of kim dotcom. welcome to "first up." i am angie lau. coming to you live from our headquarters here in cannes,. hyundai -- in hong kong. hyundai meets today to discuss
pay demands that could see growing losses. david ingles is here with the latest in a long line of strikes at hyundai. >> three straight years already. as we just talked about, it is the 23rd since 1988. >> oh my gosh. album, "bad."the anyway, we had a warning. we had another two days of strikes on extra weekend shifts after workers refused to take an additional workday. they are still coming to work as far as the regular shift is concerned. what they are refusing is extra shifts. as you mentioned, we have a meeting which starts today. the pictures you are looking at is their factory in korea which i think has a capacity of 1.5 million cars a year. they are meeting today.
hopefully they will reach some sort of agreement. they are presenting a set of proposals. they declined to comment on what the offer will be. of course, what is key here is whether or not we see any sort fold theeement to regular bonus under the base pay. >> ok, so we also know that hyundai has been dealing with that currency situation. won continues to strengthen against rival competitors in japan. does that give them a competitive edge? that is one cost. do we know just collectively how much impact this strike action is going to have on hyundai? >> i think when you look at the cost, i am sure there are lots of numbers out there. the last number they did see
reported based on speaking with the company that we are talking 17 billion won so far. that is basically in the form of lost production. we still don't know how much salesre losing based on that should have been there but weren't there because you don't have the inventory. we are talking to factories in south korea right now. 60 9 million, how much is that compared to the latest strikes? last year was 39 million u.s. dollars for a four hour walk out. >> two hours? >> four hours. the analysts talking about, first of all the negative impact on the stock. as you have this overhang of -- it is still not done yet. the other thing is, he thinks the financial impact will be limited.
again, it simply depends on the scale and duration of the strike. they start meeting today. two-day meeting. they will be offering something. we will see if the union at saps. >> david ingles, thanks for that. other markets open. let's head over to australia where the asx 200 is slipping. it is starting the day off and the red. zero point 1% down -- 0.1% down. nikkei, futures have been pointing to a higher open. that is what we have to start the session here on monday morning in asia. -- 0.2%.imbing 0.75% at 104.17 as the u.s. dollar reaches an 11 month high against major peers. chosenr news, roche has
california over japan for its latest acquisitions. the drugmaker had been considering buying the almost 40% stake in chugai pharmaceuticals for around $10 billion. in the face of opposition from opted, roche has intermune instead. working tot is restore the playstation network after users were affected by a denial of service. sony says it has detected an attempt to overload the system with artificially high traffic. playstation users could not log on to the system after what appears to have been a hack attack. sony says no personal information was compromised. ibm is tying up with a chinese rival which will now use ibm software and chips. this after the chinese company tried to lure away chinese customers amid spying
allegations between washington and beijing. the deal may help ibm turnaround sales in china. beijing has warned the u.s. to halt surveillance flights near its coastline after a close encounter in the south china sea. stephen engle joins us with more on this. china can't be happy about this. >> no, and this sounds like a bad scene from a top gun sequel. if you look at the incident, it really is one bad maneuver away from escalating into an international incident like we saw back in 2001. also over hainan island, when an american spy plane had to make an emergency landing on that island. china is urging the u.s. to stop these close reconnaissance flights after a chinese fighter
had an encounter with two american surveillance planes within 220 kilometers of hainan island in the south china sea last week. china said the u.s. anti-submarine plane and one of america's newest surveillance planes conducted the flights august 19 when china sent a fighter jet to carry out what it says was a routine identification and verification. china claims the fighter maintain a safe distance from the american plane and the actions of its pilot were professional. that is not the story we are getting from the pentagon. the u.s. says the chinese fighter did a provocative move by flying within 20 feet of the surveillance aircraft, even reportedly doing a barrel roll over it. the u.s. says the chinese jet flew at a 90 degree angle to show its weaponry to the american spy plane.
china dismissed the accusation from washington as being "totally groundless." high-stakes he said she said incident that could risk a bigger incident if one side does something stupid. angie. >> that is the thing about these encounters. anything could happen. is this an isolated case? have seen or reported an escalation or a rise of encounters in the south china sea since about march. that is on top of the naval maneuvers we have seen in the east china sea between china and japan over those territorial claims. 13 years after that most serious encounter that i mentioned earlier when a chinese fighter jet and u.s. navy surveillance plane collided. that forced the american plane to make an emergency landing on hainan island. one of the first diplomatic test
for the george w. bush administration in 2001. hainan is a strategic ace for the people's liberation army am a home to a large submarine base. then we have the oil platforms that china erected just off the southern coast of hainan island. escalating region right now. >> stephen engle, thank you for that. japan should consider opening the door to more foreign workers, that is what the head of the central bank is saying. joining us now from tokyo, good to see you. why is kuroda talking about the need to use workers from overseas? >> good morning, angie. this is basically japan's great economic dilemma. how do you keep an economy growing when the economy is shrinking and the population declined last year? this is a long-term game and he
is weighing into this discussion to see if you can bring more foreign workers, if you consider that as a means to do this. comments making those dst theson hole ami theme of labor. he has got close to full employment. what does the japanese government think about this? immigration is still a very controversial issue there. >> that is right. it is controversial. the foreign population here is still quite small, under 1%. you have this consciousness in japan as a very homogeneous nation. you have to accept the economy is declining at a rapid rate and the government, even shinzo abe, has accepted the fact that you have to bring in foreign workers. you could increase productivity
by more women working, more elderly working. foreign workers are one of the ways of keeping the economy going. >> is this part of abenomics? >> it is in a sense. alreadysee that construction is beginning around the tokyo army base. a lot of these workers are skilled workers. there are unskilled workers here. has embraced this on a limited extent. his preference is to see more women workers in the workforce. right, we are going to leave it there. thanks for joining us from tokyo. immigration wasn't the only thing kuroda spoke about at jackson hole. he and other top central bankers talked about the future of extraordinary measures. find out what they said after this short break. ♪
>> japan's chugai pharma tumbling at the open. than nine more percent right now on news that an anticipated investment not going to come through. a person familiar with the situation says roche has decided against bidding for the percent of chugai that it does not already own. bloomberg reported on roche last week, sending chugai shares soaring. if there was one key theme at this weekend's meeting in jackson hole, it was jobs. they may have had differing views on policy, but they all agree that the labor market is central to decision-making. mike mckee was there. >> two central bankers with economies going in two different directions with different messages for colleagues and markets. for janet yellen, and embellishment that the u.s. economy is growing faster than expected. riskoo soon and
short-circuiting the recovery. especially as investors overreact and push market rates up. act too late and risk accelerating inflation which would force the fed to push interest rates up faster, threatening growth. as a consequence, she said, monetary policy must be conducted in a pragmatic manner an ongoing on assessment of a wide range of information. for mario draghi, it is not a question of when. the ecb is acting now to ease monetary policy in the eurozone. it is prepared to do more, with growth slowing and inflation falling. "we stand ready to adjust our policy stance further." he didn't mention quantitative easing. he did say the bank was ready to use unconventional policy if needed. draghi also warned the ecb can't do it alone. one of his sharpest attacks on
eurozone austerity policy. flexibilityr more in eu fiscal rules, tax cuts, liberalization and a large public investment program. centralthird major banker here, there are no uncertainties. is bank of japan's kuroda committed to unconventional policies. >> we will continue our accommodative monetary stance until the inflation target is achieved and the 2% inflation is maintained. >> none of the three broke new ground here but after this jackson hole, there can be little question about the direction of monetary policy next year. bloomberg,ee, jackson hole, wyoming. >> one market closed in the asia-pacific to tell you about. a holiday in the philippines. no trading there today.
let's look at all of those markets that are trading. highers climbing 0.25% as that yen continues to drop. in fact, falling for six days. touching his lowest since january. in australia, we are seeing a bit of a selloff. a mixed market here in asia. is donald williams, chief investment officer at platypus asset management. good to see you. when you take a look at the calendar this week and what the markets are telling you at the start of the session this morning, what are you anticipating for investors? anothernk it will be reasonable week for australian investors. the reporting has been quite benign. we don't see that changing for the handful of results that we have this week. i think it has been quite a good reporting period.
overall, the results are pretty solid. >> one of the highlights includes qantas and virgin, those airline battles continue to be felt in the skies. what are the expectations? >> the expectations aren't high. neither company is profitable at the moment. issue ine a structural the airline industry in asia, then anything else. they are not the types of investments that we would get involved in. your sense of the outlook for the australian economy, especially as you take a look at these earnings coming through? >> i think we went through a very tough patch in the june quarter. the economy really sank during that quarter.
i think what we have seen subsequent to that is a gradual improvement. , andcked up a little bit business confidence has risen and is holding at quite elevated levels. i guess the other thing that has happened is the consumer confidence data has picked up a bit. we are quite optimistic for the last quarter of the year. andd on those sentiments how the economy is holding together. >> donald, you and many others have been taking a close look at jackson hole as the central bankers and did their meeting. the focus is on labor, but of course coming through is what we can expect in terms of continued qe and/or anticipated stimulus coming out of japan and perhaps europe as well. what are your thoughts there as things agitate this coming month?
>> i think it is just confirmation that the environment for equities is still very good. some point,ise at but i don't think anybody can put a date on that. if you take the u.s. as an example, despite some of the comments over the weekend, i think it is unlikely that rates rise for another year or so. it is a very benign environment, ,specially for equity markets and investors will likely get positive returns for another year. >> we know china is australia's largest trading partner. also, japan is significant as well. we are getting data out of that nation on friday. will you be watching closely? >> we will. i guess for australia, with , japan hasn'ttter
really been performing well for another -- for a number of years. having japan increasing their is a marginal policy for australia. in terms of china, we think china is broadly neutral for the australian economy. we still have prices at very healthy levels from a profitability point of view. as long as those volumes continue, they will probably grow more from here. that is still a good news item for the australian economy. >> ok, donna williams. we are going to leave it there. thanks so much for joining us out of sydney. coming up, dance party politics. we take a look at how internet tycoon kim dotcom is weighing in on new zealand's upcoming election after the break. ♪
some breaking news to tell you about right now. cme, the chicago mercantile exchange in chicago basically halting all electronic trading for all markets except malaysia due to technical glitches. that according to information posted on their website. this affects all contracts from u.s. stock indexes to gold to
copper, all that being traded on the globex platform of the cme group. halting electronic trading for all markets except malaysia due to technical issues. watch for more on that. in four weeks, new zealand will hold a general election. what looked like an easy path back to power for prime minister john key has become all whole lot more unpredictable thanks to one of his old phones. let's head over to paul allen in sydney. kim dotcom, you met the fellow. he seems to be throwing a wrench in the works for john key. is basically doing everything he can to avoid extradition, which is at the key of his entity on john ever since that raid on his house to do with copper right -- copyright infringement. now he has formed the internet party.
he is not allowed to stand himself because he is not a citizens. he has been campaigning very hard for his candidates. he has formed an alliance with the mana party, which is a left-wing party led by, i guess you could all him a firebrand. he has made an alliance with him. with his political clout and dotcom's cash, they could take two to five seats at parliament. kim dotcom is trying to reach out to the youth vote with policies ranging from faster internet speeds to a digital economy. here is a little taste of one of their recent rallies. are you ready for a revolution? [applause] are you ready to take down the government? [applause]
>> it is 8:30 here in hong kong and the sun is shining bright on what is going to be a very busy day. we have more than two dozen companies reporting earnings today. we are an hour from the opening today. you are watching "first up." the dollar is extending its rally, pushing the yen toward its low for the year. chugai pharma falls the most in three years as roche may walk away.
bumps in the road ahead. india's new credit card rules put the brakes on uber. good morning to you. i am angie lau. uber may be facing a bumpy ride in india at the r.b.i. titans credit card rules. broadly in the region, it is another bump in the road for the taxi app maker which has been described by illegal in korea. haslinda amin is following the story for us. what is india doing to put the brakes on uber? r.b.i., looks like the the bank of india, is the one stepping on the brakes. it has closed a loophole. it now requires all transactions made on india-issued credit cards to go through a similar procedure. for uber users, that means one additional step to the payment system. if uber wants to comply with the rules, it would have to either
change its app or adopt a different model. uber transactions are no longer fast free. pretty much on par with its rivals have to do. there has been up roar among rural taxi companies. they say uber payments are collected in rupees and translated to a dutch bank and it is a u.s. bank that eventually pays the indian cabbie. all that goes against india's constraints. this is what the r.b.i. is trying to do with a new measure. a consistent patent system. resistance isn't something new to uber. how difficult has it been for uber to penetrate asian markets here? >> you know what, no matter how you look at it, uber has been expanding. asia,r it is in europe, 150 cities and counting.
korea, china, india among those. local taxi companies have not been happy. look at what happened across europe. protests in paris, london, berlin to name a few. what is interesting is that for india, the taxi war against uber is more sophisticated. it has taken the form of a foreign exchange complaint. not clear how uber will respond. what we know is that uber has changed the landscape for taxi users completely. more efficient rides, cheaper rides. hard to imagine that uber services cost as little as a ride in an auto rickshaw. you and i know, it is a no-brainer. the choice is obvious. >> thank you for that. more on that breaking news to tell you about. chicago mercantile exchange halting electronic futures trading due to technical issues. cme group saying that these
technical issues are affecting its globex platform and affecting all trading contracts from u.s. stock indexes to gold and copper. as you know, dozens of commodities are traded on the all electronic globex platform as well, including copper. everything from copper to natural gas. all of that being held up right now as cme group halts all electronic trading for all markets except malaysia on its globex platform. a phone call and voicemail to the chicago based press officer not immediately returned. we are trying to get the most immediate information for you. we do have technical issues being reported at the cme group harsh globex platform. all electronic trading for all markets has been halted except for malaysia.
markets trading here in the asia-pacific. japan's nikkei 225 is continuing to see gains on yen weakness, really helping boost the outlook for exporters today. kospi is now flipping into green territory. australia right now is unchanged. this after starting the day off in negative territory. close eye ong a the s&p 500 later today. the benchmark just a few points away from an all-time high. it is one of the stories we are watching from the u.s. su keenan sends us this news. >> one of the big questions heading into this week on wall street, will the s&p 500 resume its record rise and break above the 2000 level for the first time in history? dayriday, stocks began the within eight points of that level but failed to break new ground. this week, a new round of
economic reports could play a role in setting new records. we will get the latest on gdp. economists are predicting that u.s. consumer spending and business investment, and to help the economy -- combined to help the economy grow last quarter. what do analysts forecast? sales of new u.s. homes rebounded in july but home prices in 20 cities increased at a slower pace. u.s. investors are continuing to monitor geopolitical eve nts and increasing tensions. angela merkel will be visiting the presidents of russia and ukraine this week. as for the latest parade of earnings, hermes, tiffany and vivendi are among the big companies reporting. in new york, su keenan. of theok now at some other stories we are following. david ingles is here with the
details. >> tata motors can thank china's love of land rovers for lowering its bond risk. demand helped tata report its biggest profit jump since 2010. shares of the land rover soared last month. it is a beat for sinopec. by a-half profit rising more than expected 7.5%. sinopec is at the forefront of china's restructured state-controlled companies. raisempany is seeking to $17 billion by selling about one third of its retail unit. this test of the shanghai and hong kong stock index has passed smoothly. the hong kong exchange says around 80% of market turnover took part in the trial. the market reversal is scheduled
for this weekend with the tie up scheduled for lunch in october. that is a wrap of your top corporate headlines. >> buying luxury in china is fast becoming a hunting ground for the bargain hunters. the enormous appetite remains yet the internet is muscling in on the high street with heavy discounts. if you don't want to buy, you can always rent for a fraction of the price. john dawson has been doing some clicking for us. >> let's go with the discounts first. first of all, taxes have had the campaign from the government, import consumption taxes, all this leads to a strained economy. people wanting to spend less. what do they do? xiu.coms like this one, , up to 40% for example.
leather pumps 40% cheaper than retail price. almost half price of what it costs to buy. >> isn't dying luxury goods in china, there is already a 40% luxury tax? >> the problem is that taxes, what do they do? they discount on these websites. >> basically, the discount pays for the tax and the money stays in china rather than going abroad to hong kong or elsewhere. >> they are competing against these guys for the shop. all these different goods, pick out this alexander mcqueen. you can see all these different -- alexander mcqueen, this is about $1200 now reduced to $920. that shows you the impact of that one clutch, which you would
know about. i don't really carry a clutch. that is certainly one of the areas. luxury spending in china in 2011 rose 30%. this year, forecast to rise only 2%. that shows you the dramatic disparity. >> you did some shopping for us outside the studio. you visited this very interesting business where if you don't want to buy and you don't have a couple hundred dollars or $1200, whatever it is, for a clutch, you can rent. >> 30 u.s. dollars for the weekend. the three founders, it is a u.s. model they brought to asia. they work across hong kong. they are really targeting china. here they are, all three of them from very different backgrounds. a very interesting company. >> a celebrity model, an
investment banker and a mining analyst. an unlikely trio to form a business focusing on the fashion conscious, yet opposite attract. this fashion show is strutting its stuff. luxtnt is designed on a u.s. model where instead of spending the big bucks, you can hire the latest and best brands at a fraction of the price. luxtnt is the first of its kind in asia. its focus is china. while luxury sales are falling, but passion for fashion is not. that is luxtnt's gap in the market and it is all down to social media. >> i get in touch with my friends, and they are in the scene, out and about using luxtnt. people are aware. we bring a lot of customer awareness through social media.
>> social media is a very large part. >> indeed. it goes a lot into working in china right now. >> you have been sourcing in paris? >> i got back from paris a couple weeks ago. i wanted to bring another designer to the table. a lot of people are attracted by the normal brand names but there are also very talented designers aseurope that can use luxtnt a platform to launch themselves as well. >> there is no man bag here. how much does it cost to buy -- take anything. one, it is from alexander mcqueen. this is priced around $20,000. >> raising money in this environment is tough. if you have a good product,
banks will give you money. >> there is a lot of money going around. we are not too worried about funding. we are worried about growing the product more. >> luxury sales are down. -- how do you make money out of it? >> they want to use luxury goods. that is why we are cutting into the market. >> the red carpet, a night on the town or the races. china'ss betting on appetite for luxury. john dawson, bloomberg, hong kong. just threep next, months ago india's new prime minister was to build bridges with pakistan. suddenly, the frothy atmosphere is back. we will take a look at all the reasons why. ♪
>> checking some stories making headlines around the world. hithern california has been by its strongest earthquake in a quarter of a century. the 6.1 magnitude tremor hit the nsps winegrowing region -- napa winegrowing region. 120 people were injured, three critically. power was cut in some areas. gas leaks caused several fires. local train services have been suspended. people killed by last week's landslides in hiroshima has risen to 50. 38 still unaccounted for. hillsides collapsed on wednesday after days of torrential rain. a record 217 millimeters fell in the area. more is forecast for today. japan's defense force has been drafted in to help with this search-and-rescue effort.
prime minister shinzo abe is overseeing the operation. the u.s. military has bombed islamic state fighters in iraq. the exact location of the tax hasn't been released. they follow the murder of journalist james foley last week. a video of his death was posted online. the murderer appears to have a british accent. london sayficials in they are close to identifying him. diplomats from india and pakistan were supposed to meet today after prime minister dgedndra modi ple to improve relations. -- his us now is research covers foreign policy in asia including india and pakistan. thank you so much for joining us. when narendra modi came into power, it was notable that he -- the pakistani
, to hisip, the pm inauguration. that seemed to have stoked up a lot of interest in warming relations. has that cooled somewhat? >> i don't think it is necessarily a negative thing. the cancellation of this round of talks. i don't think it is a signal that india and the modi government are not interested in talking to pakistan or improving relations with pakistan in the long run. it was a very innovative and welcome sign that mr. modi was willing to invite mr. sharif, his pakistani counterpart, the delhi for his ceremony. it was really a good first step. what we have seen right now is the level of foreign secretary, vice minister, a bureaucratic
dialogue. those talks that were supposed to happen this weekend were called off. the indian government's rationale was that the pakistani embassy in new delhi had engaged in talks with a group of separatists as they had done in the past. the modi government was trying to signal that this was no longer part of the terms of engagement between india and pakistan. if pakistan was interested in building bridges, they wouldn't be participating in this dialogue with the separatist leaders. >> so does that close the door on any future talks? >> absolutely not. india and pakistan have evenained diplomatic ties during some extremely rough moments in their history. i think what this is in some ways is modi setting the terms of engagement. , talks of these talks
some kind will continue in the future. i think a lot of this depends on what happens on the pakistani side. pakistan's prime minister is himself facing a lot of opposition at home for reasons completely unrelated to engagement with india. it has to do with protests taking place in the capital. the other thing is, he is having trouble delivering on what the indians consider a basic promise, which was to normalize trade relations between india and pakistan. why theynother reason have expressed disappointment. that was probably part of the reason why they decided not to hold this round of talks. >> it goes to show how tenuous things are. if you look at trade with pakistan, it only accounts for less than 0.5%.
if you take a look at the combined total of commerce with other nations -- yet these are two neighbors. kashmirs like the territory that they both claimed and fought over in military engagements with each other. >> you are absolutely right in the sense that trade relations between the two countries really are and what they should be. a lot of trade is going to dubai , sri lanka, not directly across the land border. some of this has to do with the recognitions. as theecognizes pakistan most-favored-nation. it was really hoping that pakistan would reciprocate. it has not done that for over 15 years. so that is part of the reason. there is also growing constituencies on both sides. i wouldn't say necessarily that
it is all because of the kashmir dispute. there are problems related to terrorism amongst other things. it is a very complex relationship. it should be a much deeper trade relationship. >> thanks for putting it into context for us. thank you for joining us today. coming up next, a rally last week. what is going on with one of the largest drugmakers in japan? all that when "first up" returns. ♪
>> [indiscernible] >> a joint study between the university of sydney and research groups reprised on this work. the value of the work they perform has been calculated at just over $37,000. >> i couldn't put a figure on it but it does save you a lot of money. day and they put a smile on your face. >> there is no way i could put a value on them. we don't employ anybody to do stock work or anything. >> the research team that placed a value on the farm dogs' work is going to collect and analyze their dna to find out what characteristics the best dogs share. one can only imagine the value of a genetic code for
cheerfulness, and the desire to work tirelessly for food. >> welcome to the stock exchange. let's check in on trading under way in asia. not to bebilly, confused with the clint eastwood movies. this is a chain of american-style steak houses in japan. up about 3.1%. >> diluting the current value. all right, chugai pharma. big downside today. >> we are basically back to levels before this talk of the deal became public. we know now that roche is siding against bidding for the company. according to the management, chugai's management said, we don't like it.