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tv   Bloomberg Daybreak Asia  Bloomberg  August 15, 2017 7:00pm-9:00pm EDT

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♪ president trump: there is blame on both sides. you look at both sides, i think there is blame on both sides. president trump stoking the flames, repeating his view over the violence in charlottesville, blaming both sides. raised the growth forecast for china, but warns it comes at the cost of rising debts. betty: jeff bezos makes oh rare for a into the bond market.
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amazon raises cash to pay for whole foods. >> goldman sachs takes a game to silicon valley, roosting storage for top tech talent. betty: this is "daybreak asia," live from bloomberg's u.s. and asia headquarters. i am betty liu, it is just after 7:00 p.m. in new york. after 7:00 a.m. here in hong kong. i am shery ahn. volatility falling, the japanese yen, and gold retreating this week. it looks like geopolitical tensions over north korea are waning. but political tensions in the u.s. are on the rise. betty: you could not see that reflected in the equity markets by any means. that turmoil you are seeing engulfing the president and throughout the country, largely shrugged off by the equity markets. certainly no rally like we saw the day before. we had markets closing unchanged.
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ingestrs still trying to all the news and the impact at my -- it might have on business and the economy. shery: that economic data out of the u.s. good july retail sales, that probably helped. let's look at the markets in asia. we see a positive upside for new zealand stocks in the open. it is the third session of gains. we see the kiwi dollar holding steady. the aussie fell to the lowest level in a month, now holding at u.s. cents. 0.5%, gaining a second session. today we have premium wage prices coming in, keep an eye out for that. futures not doing much. pointing marginally lower. the japanese yen weakened, holding up the 110 level right now. at the nikkei rose more than 1/5
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of 1%, led by the tech firms. moving, 19,es not 735 is the level. they are taking in the jampacked events calendar. you do have the fomc releasing their minutes. and the u.s.-south korea joint military drills next week, not to mention mario draghi, a lot of the markets -- a lot the markets have to digest. betty: absolutely, you nailed it. we have a lot of events coming up. the fomc minutes will be released tomorrow in the u.s. investors perhaps hit the path button. i want to pull up where we ended the day in the markets. pretty much unchanged. 1%, theaq down 1/10 of dow adding any points, up five.
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the s&p trading flat and closing flat. theident trump stoking flames over charlottesville, repeating his controversial claim there was blame on both sides. he added that the liberal protesters also bear responsibility for what happens. his is what he said in dramatic press conference a trump tower. president trump: there was blame on both sides. you look at both sides -- i think there is blame on both sides. there is no doubt about it, and you don't have any doubt about it, either. betty: a former washington reporter for bloomberg joins us now. was just an incredible -- i managed to read the entire question and answer of this press conference, just an incredible back-and-forth with the press. what is going to be the fallout from here? it was quite an extraordinary press conference to read it was
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meant to be on infrastructure. of course, president trump has gotten into trouble again with comments, applying a moral equivalency to the violence in charlottesville over the weekend. the reaction across the board was pretty strong, even from republican lawmakers. they really drive -- they really drew the line at some of the comments he made. betty: indeed. this was about infrastructure, but he was asked about steve care., about health what are people saying about who has control here, or who has any influence on trump and what might this impact have on the legislative agenda? chelsea: the only people cheering his comments were the
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so-called all right group -- alt-right groups. comments about steve bannon, his chief strategist at the white house, who has come under a cloud. a lot of talk about what president trump will do with steve bannon. time will tell on what the future holds for steve bannon. that was one interesting point. steve bannon being aligned with these alt-right groups. if thee wondering president is fueling the concern about trump's alignment with these groups. in terms of the legislative agenda, lawmakers are not in washington. when they return in september, they do not have long to raise the debt ceiling, file the bills. we will see what kind of impact that will have in terms of the
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agenda. seen in the past few days corporate executives leaving his manufacturing counsel. who is left on his side to help out with his business vision? trump spoke quite ceo's thatabout the have departed the council after these comments. in the last few hours we had the afl-cio, the union representatives leave. it remains to be seen what the future holds for these councils and if other ceos are willing to align themselves with president trump to get any kind of value after being -- from being on these councils. shery: thank you for joining us with the latest on the president's comments. let's get the first word news. senior military officers of
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america and china have agreed to improve communications, especially on sensitive issues, such as north korea. chairman of the joint chiefs of staff called his counterpart in agreed between the pentagon and the chinese defense ministry. but the mechanism was never put in place. crown as reclaimed its the top owner of treasuries, increasing its holdings for a fifth straight month, $1.15 trillion in june, up from a month later -- month earlier. japan and china account for more than 1/3 of all foreign ownership of u.s. bonds. the imf admitting its growth forecast for china will cause at the -- will cost rising debt. an average pace of 6.4% from this year through 2020, compared with the 6% estimate a year ago. corporate and government debt
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will raise 300% of gdp by 2022. >> the actions of the government are very strong, controlling the e-government over the economy. a disadvantagebe in efficiency and growth, in situations of crisis, that comes in handily. that is an advantage china happens -- has. u.k. inflation weakened unexpectedly in july, making it tougher for mark carney to champion increases. prices rose last month, less than the 2.7% forecasted by economists. whenound fell in the news his hikes on rate hikes were drowned out. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. you, we have
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breaking news out of australia. fairfax media announcing for your earnings. 83.9 aussieme at $ dollars. their dividend per share, 0.2 aussie cents. is a large publication of newspapers, entertainment, magazines. they have analyst recommendation sells.ys holds, and, they are announcing the full-year dividend per share as .02. their net income came in at $ 83.9 aussie dollars. it is the earnings for fairfax media in australia. we are just about 50 minutes
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away from trading. we will get you a check of that stock price. it surged 18% this year already. as soon as the markets get trading. that is the latest from fairfax media. betty: we have quite a few earnings coming out from australia. a closer look at what moved the market today. in the u.s. it was a mixed session. a case of good news-bad news. su keenan has more. >> americans are spending, but what does that mean for the fed -- will they speed up the rate of fedpeed up the rate hikes? look at the close. day,oks like an eventful but all three benchmarks were up until we got to retail sales. let's go to the big movers. stocks moving in different ways, wynn resorts, positive results.
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macau is doing well. coach come a weaker than expected outlook because they have a hard time integrating the kate spade handbag purchase takeover. advance auto parts, weaker earnings. that is causing investors to get sell. , a lotgo to g #btv 5858 of these recent selloffs marked by the red line, to the volume below, have been on the low average volume. can you imagine what will happen in the full market where you have full participation with these kinds of headlines? news now bearing on the day-to-day trade. betty: let's get more details. why did so many retail stocks plunge on pretty good news? amazon, a lot of analysts are saying that is the overarching story.
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let's go into the data will quick. go into the bloomberg at g #btv 1649, if you have the bloomberg at home. u.s. retail sales have a bumpy ride. the white line is. tell sales, going straight up in july. the blue box below is auto and gas. what you see is a very strong story. in terms of the headlines weighing on the market, they were looking to find what retailers, what brick-and-mortar stores have an amazon free space. let's go into some of the headlines. the concern is, there are so few places out there outside of amazon's reach. where we saw the real declines in a lot of big box retailers was in the specialty stores. superlook at the s&p 500 composite specialty index, it had the biggest drop since early
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in the spring. that is an indication of the pressure of amazon. even on the best days of the year, the strong data on sales, there is concern for the likely -- livelihood of these retailers. wti,: we are seeing oil, reversing two sessions of losses, gaining 3/10 of 1%. all of this ahead of inventory data. what are we expecting? su: you are thing advanced reports as we get into the wednesday session. there could be a bullish report. what is interesting, we had a top global analyst from believes inll us he the race between opec, which is losing money as a cuts back, to boost price, and the show producers, who in the u.s. are able to hedge themselves and do well when prices are in the $40 range. take a listen. >> the markets are going to win,
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and it will be shale. position, even with russia, is not sustainable over a long period of time. they are losing revenue doing what they have done. you get the prices up, u.s. producers hedging through 2017 into 2018. they can survive at a lower price. su: back to you. betty: we have breaking news on uber. entering anber is agreement with four investors and they are identified as didi, softbank, general electric, dragoneer. billion, at the 2016 share price. also, tencent said to be exploring a potential investment in uber. the headline is uber said to be
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entering exclusivity agreements with four investors. we will keep following this story for you. a lot of headlines on uber. we will have more from san francisco. this is bloomberg. ♪
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shery: we have breaking news, four-year earnings come final dividend per share coming in at seek hires ands, matches job seekers. they are related to career opportunities and offer those related services. full-year net income coming in at $340.2 million aussie dollars. we are also sing dividend per share at $21 aussie.
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we have seen the stock take off this year. around 23%. when it comes to analysts's recommendations we see three buys and seven holds and five sells. aussiecome,$340.2 dollars. nafta,let's talk about negotiations on a revamp begin with more than trade deficits on the agenda. key points include inequality and labor mobility. we have a professor joining us from a vancouver. you are in the country that has the least problem in these negotiations. you are in theit is down south n mexico -- you have heard trump to, to say he is willing
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terror this agreement and pullout if the u.s. does not get what it wants. what can be done in these negotiations? it seems to me like there will not be that much of a change, given the document that was submitted by the trade representative a couple weeks ago. want to be intems conformity with the wto, or the international labour office. there are a couple points there want considerable change, like the elimination of the chapter 19 on the disputes resolution. certainly we have heard president trump talk about tariffs on automobiles coming back from mexico. what could be some of the levers that could be pulled in order to keep the u.s. in nafta and still
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be enough for mexico to swallow? i do not think of the tariffs idea will go far. ultimately, that would end up affecting consumers. i think that the u.s. business community is also going to fight against that, because the value change -- chains are so integrated now, among the three countries. anything that is done to hamper trade will be a problem. that is not the language contained in these initial documents. that seems to be what traders are thinking because if you take a look at the mexican its phenomenalee strength of this year. you the strength
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of the mexican peso, which has gained over 15%. we see volatility fading. there is always concern we could see pockets where negotiations to take place. any sectors of the nafta renegotiation where we could get surprises for the market? it seems like the is one thatector, has the greatest stake in the market. these companies are u.s. companies. if anyone gains in the north american free trade agreement it is the automobile sector. loopholest about the related to groups of origin in order to avoid manufacturing and job losses? labor unions have called for those loopholes in the groups of origin to be closed. could we see changes on this, as well? gerardo: yes, that seems to be
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one of the items where the u.s. government really wants to enhance enforcement of that. there is no figure given as to whether the rules of content or whether itsed, is primarily about enforcement. canada is also part of this negotiation. they have said the country won't take just any deal in nafta talks. when you take a look at their relationship, how balanced is it? right now it is pretty balanced, considering trading goods and services and investment. there is balance between canada and the united states, which is why i do not think canada has that much to worry about.
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except for some sectors and agriculture, where there is management in the production of dairy, poultry, and eggs. that was on the chopping block for the tpp. outcome of that was one of the first decisions of president trump. but that was one of the items the former government had given into. the will be something else government will request canada to do. shery: thank you so much for joining us this morning from simon fraser university. we will talk more about trump's policy later on "daybreak asia." in half an hour, we discuss immigration with a u.s. law firm focusing on that sector. betty: and more on nafta and what the negotiations mean of four asia. a former trade
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negotiator with the japan's foreign ministry and his perspective. this is bloomberg. ♪
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♪ shery: welcome back, let's get a quick check of the latest business flash headlines. they have rolled out a partnership with the yelp in four u.s. cities to tap into chinese travelers. tourists will be able to pay in yuan for those that acceptalipay. it is available in new york, los angeles, san francisco, las vegas. they can also shop at 4 million u.s. merchants. betty: apple selling almost $2 billion worth of bonds in canada to get dividends. a spread of 80 basis points
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over the benchmark yields. it would be apple's first canadian bond sale. on this storyd the just broke on uber getting investment. ♪ shery: it is 7:30 a.m. thursday
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here in hong kong. a clear day out there. and rainy,ly hazy but a beautiful day in the morning here in hong kong. i am shery ahn here in the city. betty: it is 7:30 p.m. tuesday here in new york where markets unchangedty much despite good retail sales number this morning. showing consumers are still spending. i am betty liu here in new york. shery: you are watching "daybreak asia."
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has stokedt trump the flames in charlottesville, blaine both sides -- blaming both sides for the violence. hadaid that liberals violently attacked of the right-wing side. third the president's attempted to address the controversy over his initial reaction. president trump: that was a horrible day. it very closely, much more closely than you people watched it. you had a group on one side that was there and a group on the other side that was also very violent. and nobody once to say it, but i will say it right now. press conference, president trump attacked business leaders leaving his advisory team, saying, there are plenty more where they came from. he accused them of grandstanding.
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it followed three other leading ceos after the -- out the door. another urged to quit the business council because of trump's comments over charlotte bill. the president of iran is warning the country's nuclear program could be ramped up if the u.s. continues to trenton sanction. rouhani said the most direct attack yet of the 2015 deal stuck with the world powers. president trump has said he wants to abandon the accord and congress imposed new sanctions on tehran this month. new analysis of chinese macroeconomic status showed steel will have up sharp decline. [indiscernible] rbc expects a slowing chinese property market to weigh on fundamentals. >> it is justtoo -- it is just
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too plentiful. the currency changes in those two countries, makes the production of iron ore cheaper. over time, chinese production of iron ore will taper off as they use more scrap. >> global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. it seems of the column has returned to the market. we see volatility fading after geopolitical tensions over president trump and north korea's war of words. take a look at the u.s. financial indications on 5038.erg, g #btv5038 --
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you can see the financial index tightening the most since may. if you look closely at this chart what is happening this week, you can see financial conditions are easing once again. with volatility sustained we could see a quieting down of the fed hawks. they have been a little worried about volatility not being there, and that unending market rally. let's get more and what is happening across markets and what is happening across asia with bloomberg's global market editor, adam haigh. we are seeingct these financial conditions easing, it is a fact that appetites for american equities have taken a hit. are now seeing this latest survey from the bank of america fund managers showing something interesting in the movement of global equities. tell us a little bit about this. this is the very closely watched bank of america survey,
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global money managers. they manage in the order of $600 billion, all of them together. it tells us a lot about positioning. in the latest survey it characterizes it as the anglo-saxon political angst. people wanting to pull money out of the u.k. over threat of brexit, and the u.s. over the sovereign risk associated with trump and his inability to carry through reforms. and instead, move their money toward europe, a more optimistic place in terms of economic recovery. this is largely an equity position. they bring that money into europe. interestingly, we have not seen that reflecting itself and prices. have a look at g #btv 4921. european equities are continuing to lag u.s. equities in recent months. despite the money moving into
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europe we have not yet seen an uptick in prices in the stocks, which may give indication there is further to run from the european equities perspective, if more of this money continues to come in. this is largely around profits. some of the worry in european equities is due to the surging euro, holding back profits for exporters. we spoke to the cio of state street, a well-regarded guy. he says they are in a good place. he expects further growth and higher equity prices. an interesting theme emerging, with more money coming into europe. said: a hedge fund manager he finds good trade being bearish on metals stocks. what is the thesis there? a very well-regarded hedge fund manager based in london, he has been under pressure of late.
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his hedge fund was down 50% last year. and in the first seven months under pressure. he is helping to rescue performance. that is around that shorting equities of equity producers. look at this chart, which shows you the run-up in these stocks, g #btv 4951. you can see you ramped up the june and july. the white line coming off in recent weeks, part of august. centeredhe thesis is around a slightly more bearish market position on chinese growth. he expects chinese growth to slow down in the second half of this year, and into 2018. he is pointing down expectations are fairly rosy for chinese growth, given that numbers across the board have been beating expectations this year. as we have been hearing, he is not alone. atre are folks at academic
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wanting to jump on the bearish side of some of these trades, using china as a proxy to shore metal stocks and underlying commodities. it is a tough place to be. it feels like if you are coming out of the woodwork. we want to watch these trades closely over the next few months, see if this trade plays out. betty: thank you, adam haigh looking ahead on calls from various investors, including hedge fund managers. uber is an exclusive funding from four big backers, a potential $7 billion deal hangs on the court case. eric newcomer broke this story for us. tell us about these four investors -- they come from asia. eric: softbank has investing a
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lot of ride hailing companies. didi is the second big player. general atlantic and dragoneer, and dragoneer may bring on tencent. major players looking to invest. the deal is very much in the works. they had an exclusive agreement with uber. they are doing due diligence to look into the investment. the terms are up in the air. this seems to be one of the major groups coming together. betty: tell us about the terms and how the legal case on uber is complicating it. eric: there is probably going to be $1 billion to $1.5 billion in direct investment to uber. that is small potatoes. the bigger deal will be the secondary, the money buying out existing shareholders.
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that could be $2 billion, but up to $10 billion. that high-end number could be softbank, with a lot of money to play with. between said, benchmark, and travis kalanick, there is a fight over travis's control over three board seats, including his own. that is worried everyone, especially investors. would like to see a resolution to that fight before the investment comes together. the big question mark holding over, an enormous investment. shery: kalanick always at the center of controversy. he is not alone. he has a small group of friends backing him up. an investor signaled support, talked about buying out benchmark. is this still pursuing that deal
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in tandem. some of the details are being figured out. some people i spoke with respect to -- skeptical, do not feel it treats investors equally. it will be interesting to see how that plays out. the softbank deal seems to be the larger prospective deal at the moment. shery: so important when it comes to appointing people to that board. eric newcomer, thank you so much for breaking this story on uber and potential investments. we are joined by the largest u.s. law firm that focuses on immigration issues to discuss president trump's america first policies. this is bloomberg. ♪
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♪ betty: this is "daybreak asia,"
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i am betty liu in new york. shery: i am shery ahn in hong kong. tensions rising in the u.s.. president trump's controversial comments, he blamed both sides for the violence in virginia. let's talk about president policies.erica first our next guest runs the largest u.s. law firm that focuses on immigration issues come a joining us from new york. thank you so much for joining us. a great time to have you on the program. the policies have been going on for the past six months. i wonder how much of a surge in business have you had since president trump took office? trump's arrival on the scene has generated a huge amount of interesting concern in the business community, as well as with our individual clients.
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it has had a tremendous impact. we have been involved in situations where we had to prepare statements for ceos of companies and the board of different companies. because they were so concerned about his policy. shery: we also have the renegotiation of nafta. do expect an impact to your clients and those businesses operating closely with mexico could get affected with more regulation? austin: i would say there are two aspects. nafta has mobility provisions in the trading. there has been very little said about the provisions, but they are extremely important to both canada and mexico in terms of moving people back-and-forth across the border. we are really not certain how
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those provisions will come out. we know canadians will push for expansion of the mobility provisions, whereas the u.s. is ordersunder fairly tight from congress not to expand those provisions. it will be interesting to see how this plays out. that will be a big part of it. betty: i think there is also talk about, if tariffs cannot be put on auto -- automobile exports from mexico, what about higher wages to bring back market share? with something like that work? austin: it would be very difficult to administer. the idea is to create a level playing field. at the same time, the u.s. government has been interested in that, as well as the canadians, in terms of trying to raise the level of employment and the salary level of the
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mexican workers. it is a worker's rights issue, and large part, as well. policies, of trump's what do you think is actually going to happen on the immigration front? and where is that going to be in relation to health care, tax reform? now we heard trump in this press conference trying to focus on infrastructure, but got distracted by what happened in charlottesville. where do think immigration will stand, eventually? trump hasthink expressed less interest in immigration recently than he did when he was campaigning. it seems as though it has dropped off somewhat. he is still very interested in the wall and enforcement issues. as far as immigration policy and erotecting u.s. workers, ther we will have to see action by
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congress. there is very little he can do directly himself. we are basically going to see whether congress actually moves some legislation. daysdorsed the bill of you ago that basically would cut u.s. immigration and half, and move employment-based immigration to a point system. and the h-1b visas will be a big deal. betty: exactly. shery: let's delve into those programs. they'd 20 visa is a program on the chopping board. also, the international entrepreneur visa program has been delayed for next year. what are the specific programs people are watching from here in asia, should be monitoring closely for changes? austin: the h-1b is most
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important. we have a system that is greatly oversubscribed, it has a cap of 85,000 people a year. the number of applicants far exceeds that. we have a lottery system. that will change to priority citizens, based on a combination of educational levels, and compensation level. everyone needs to be very aware of that. because what will happen is, persons and higher-paying jobs will get priority. and persons who have masters degrees and degrees from u.s. universities will get a priority. it will still benefit graduates of u.s. universities, particularly in stem fields, science, technology, education, math. but i think we can be fairly certain that will happen.
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as to the entrepreneur i think -- you could argue it exceeded the president's authority to create an entrepreneur program without legislation from congress. i am sure we're going to see that again. important for your personsis a program for who invest money in mainly real estate arrangements in the united states. eb5 program, we are likely to see major changes in raising twice as muchto as what it is currently. over one00 will go up million, certainly. 1,300,050.king at
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the budget reconciliation act is likely to pass. or, legislation. i think we will see some action there. austin fragomen, the chairman of one of the biggest law firms on immigration. much more ahead. bezos,move for jeff turning amazon into a grocery powerhouse. this is bloomberg. ♪
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♪ turning toon may be the debt market for the first time in three years, seeking $16 billion to fund its acquisition of whole foods. ,ur corporate finance reporter
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molly smith, has been reporting on this. amazon has more than $21 billion in cash and short-term investments, so why do they want to issue debt? molly: is a good question. foods was a big surprise to the industry. they want to reserve the cash they have right now. seen what is going to be probably a record pace, the $1 trillion mark is likely this week. amazon has been helping propel us to that point. interest rates are low. it has been an issuer's market. it makes sense to take advantage. betty: are tech companies generally active in the bond market? molly: yes, microsoft is one of the biggest issuers. apple, at&t, they have all been in the market recently. lead with theat&t biggest deals this year, as well
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as tobacco. this one from amazon comes in as fourth largest of the year. shery: what was the reaction from bond investors? molly: it was well-received. we have seen demand for this debt from amazon. they only have about a billion dollars of debt outstanding. today's offer triple that amount. they are trying to play the name, maybe not as comfortable getting in on the equity risk. the fixed income is pretty attractive in that sense. the rates on what amazon got, how does that compare to similar companies in their sector? molly: it has been playing to the theme we have seen a lot this year as far as a deal being marketed as a certain price initially. day,mes out throughout the
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and when the deal eventually prices, we see it come in a lot tighter. it has been really well-received. they do not have to pay as much as what was initially talked up for this deal. very opportune timing for them to take advantage of the credit market. betty: thank you so much on that story, and a quick check of the latest business headlines. air berlin has solved -- filed for insolvency after etihad withdrew support. yearsad losses over six but will continue flying, with the help of a government loan. it puts thousands of jobs at risk the german election. it is that second failure of the european airline. shery: we could be looking at the end of a fashion era. isure wear and athle are over.
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cut's sporting goods full-year profit forecast. ofgym year as street of gym gear asnd street ea -- wear is over. betty: uber said it will appeal the decision. the philippines it says that the company violated and ordered to stop accepting new driver applications. accreditation expires this month and is under review. first major market open minutes away. we are coming back from a holiday. futures, look at asian a mixed start after a tepid wall street session.
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have strong retail sales, we are looking ahead to earnings in asia with tencent, westfield. keep an eye on those stocks. this is bloomberg. ♪
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>> there is blame on both sides. sides.s blame on both >> president trump is soaking the flames of division. growth forecast comes at the cost of rising debt. track for back-to-back. chasing funding.
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on in this courtroom battle. >> this is the second hour of daybreak. 8:00.just past mentioned, korea is lack. off across shrugging hopingntry with what was in charlottesville. continues to sour relations, of which there are fewer and fewer. focusing on the strong economic data out of the u.s..
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coming back from the holiday >> do to discuss the easing and it remains focused with the economy still in focus. seeing little change in the wake of the retail. they could set up the second half of the year and boost the case for the rate hikes.
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later, they said that this could help the dollar yen push above this level. we are seeing treasury yields continuing to climb on the best info of the united states. copper remaining under a little bit of ground here. afterooking at that mark posting the biggest loss in five weeks. brent crude stays just below. that data overnight and the pound looking at little change. inflation kepthe
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euro in july and the trades slightly higher after the gdp data. the bank says that the ridge looks intact. just a further out study. let's get to the first alert news here. especially sensitive issues on north korea. accord inl signed the beijing.
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this was never put in place. the nucleararning program could face problems, if they continue the correct and sanctions. attack onmost direct the deal struck by world powers. said that hemp want to abandon the accord earlier this month. a new analysis with stock including rio tinto and u.s. steals. it was based on the chinese consumption trend. three discoveries in
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australia and brazil, even without. making that production cheaper and cheaper. the consumption will taper off. trying to tap the markets, in addition to getting directions. it is initially available in new york. >> by analysts in more than 120 countries. trump reported the
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controversial claim that he added that liberal protesters are responsible for what happened. there is blame on both sides. to resignations from his counsel. good morning. are these the real views of donald trump, the unfiltered and unscripted views? the quote is that there are on thedes and he took
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issue of white supremacists and now he says there are many sides. it is white supremacists and not see protests in virginia. what is interesting about this is that this event was supposed -- e yet, rather than that, it was supposed to be about issues. some of them are his own party. >> there is the confederate monuments and he said it is ill considered.
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this one is particularly interesting. virginia is a state where there are a lot of pieces and this is a heated issue. priorities that he pushes ahead and there is a part of his face that is very interested in this. >> he asked about steve bannon .n this press conference >> there have been recent
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articles, including one in the new york times. the comments were that he was a the commentsnd were not necessarily at the behest of steve bannon. his future may not be so certain in the white house. the president has said things about jeff sessions and his future. it doesn't necessarily move on right away. but it is hard to read what he said. >> what might you get out of this? criticisms a lot of on thehe globalization
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now astage and there is negotiation of assets. it is fascinating that there is so much criticism of it and they are coming to renegotiation. it starts right away. >> on with the comments today. the trump administration sets of january deadline for a new nasa. what toget a look at expect when the negotiations that.on >> will have a earning results. this is bloomberg.
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>> this is daybreak. >> a quick check of the headlines. theon is turning to acquisition of whole foods and the reports are of the longest 40 yield portions. that marks amazon returning to the bond markets. $2 billion selling worth of bonds in canada to pay on auybacks and dividends spread of 80 basis points over the benchmark yield. it will be the largest sale of debt. developer sold domestic bonds in july and restrictions offer highly
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leveraged development and they face a housing market in the coming months. policymakers could force default. estimates and the warning that it could come with debt and risk. this, let's look at the assessment. pretty mixed. >> the overall message is not different from what we heard in beijing. the debt is new. this is what we expect on cost of overall debt to gdp.
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estimate that in 2016.to what we saw as i said, the messaging is in line and they say that the reform is on track here in china with reigning in corporate debt capleverage and putting a on the borrowing. shift in the and thisn of capital is coming with the latest news in terms of china treasury holdings. flows andves trade
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the number ticked up the treasury holdings now and the increase is around 40 billion. btb 5179. up and they held that position to june. >> on to another subject with the data for china. what did that tell us about the credit expansion? belowe saw the number in estimates and suggesting that there is an effort by the policymakers to reduce liquidity
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in the system and there is aggregate financing and estimates suggesting they want to keep some of the lowest and withar loans that came in a focus on the households and new loans and aggregate financing. tv and shows a big pickup in both of the measures 2017 has the grant continuing a trend going forward with the drop-off in shadow downng and products are for the first time in about nine months. this is about getting a balance
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between reducing liquidity and ensuring the credit supply here in china. >> thank you. a feature we would like to bring to your attention is the interactive television function. interviews previous or bloomberg functions we talk about and become part of the conversation with instant messages during the show. this is bloomberg.
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>> this is daybreak in asia. this forecast is for more aan $150 million and
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breakdown of troubles in the café. is the function in isnge here and they revenue income. itenue has been falling and is in the negative for 2016. we expect a loss for 2017. if that is the case, it is on path for two consecutive years in the red. that is the financial analysis function here going into the next terminal. follow the blue line. this is the share price and it is up by about 14%. is against expecting
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a sea of red here. this little bar right here is about 55%. finally, looking at the backdrop of competitors in mainland china. they are down and you need to consider the concession -- the discussion. now ande joined right
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around 11 and you see the shares are overvalued. is especially relative to the performance that they are doing. they are not performing well at all. >> there are quite a few things and they are too big for their own good. they are making money for quite some time. it comes at huge costs and the
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fundamental thing they need to a number of with flights and aircraft's and that comes with cutting the number of employees. they are getting eaten up by market share in china eastern and southern. they are trying to capitalize on that more. there is the approaching of the carriers. sharesfight for market is a fools fight. if you want to go for market share, and do it. it is very painful.
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the market shares are secondary. >> right. how about using your affiliates to show you how low-cost carriers outperform the full-service airlines index. withan you use hong kong market passengers. they have a configuration that is pretty comfortable in carrier.ost
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costs. how you get lower the salaries are high in the cost of landing is on the top side of the world. chance that they should go down the path of the low-cost carrier. they will have focus in the premium segment and the reality is that the premium segment of the market is pretty small. we are seeing a little bit of with this and there is a possibility of one or two buying there. >> this is something we knew and and ithat we call bound
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would be -- >> thank you so much for joining us.
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>> it is a: 30. it is the wednesday of the trading week. we are arty in the middle of the week. >> here we are and you're watching daybreak asia. president trump has stoked the flames and blamed both sides. that he blames the protesters and says that the liberals violently attacked the right wing.
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he blamed many sides in his initial reaction. >> it was a horrible day. i watched those more closely aan you did and you have group on one side that was bad and on the other side that was also very violent. nobody wants to say it, but i will say it. >> he also attacked business leaders and said that there are plenty more where they came from and accused them of grandstanding, after three other ceos out the door. there is urged to quit the council because of the response. the tops claimed foreign owned treasury. to $.15 trillion in
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june and japan fell to second place, having overtaken china. growth is lifting the forecast with rising debt. the average case of 6.4% a 6% estimate from a year ago. rise byeholds will 2022. >> the actions of the government are strong and the control over the economy is strong and it could be a disadvantage in situations of crisis. advantage that china has her experiences elsewhere.
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officer in as. scheme. as the 18th person to admit guilt in a scam involving a singapore defense contractor. that that helped -- powered by 120 countries. this is bloomberg. >> thank you. calm seems to have returned to the market and we have seen the reporting that the leader has decided not to launch a missile attack. i'm what the minutes to be released, not to mention the bank of thailand.
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let's see how they are trading this year. it looks like another day of gains for the equity market. percent and/10 of a leaving asia higher. i want to highlight a mover today and that is the korean aerospace. posted the operating loss and have been following the stock around accounting issues. >> the stocks are swinging to dropand looking to snap a with little change this morning. looks fairly steady with energy stocks. it is $51 a barrel and
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rebounding from a low. showed supplies may differ. more have citigroup and saying that she'll will prevail in the markets. caution over the iron ore supply and chinese overd is seen dwindling iron or fundamentals with rio tinto looking to outperform. andstock fell in london they do remain positive on the sector. now, let's take a look at what gaining this morning. and we the property up have banks and health care
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leading a drop. it isake a look under and coming up shortly. especially in australia, they report to paul allen. estimates on the recovery for oil prices. probably 500 $50 and they beat estimates and get the earnings this year.
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loss,r, if we look at the it is three times higher and there are the write-downs. no dividends for origins. woods, there is have a billion dollars beating estimates as well. it looks like production will be they take shape in the words of the ceo. meeting estimates and there
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are some challenges ahead. what is the issue? >> yeah. ands deal with the numbers it is up a year earlier. there is the shopping center globally. that it iss interesting for the first time and there are some things weighing on this, globally. there is a question about the future the retail in australia looks like and it looks like it will remain in line with expectations.
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record revenue a jump. and there is a 10 said share. plus. it is such a big juggernaut and we chat with nearly one billion users. adaptation ofing league of legends has 200 million users and they will likely have a big revenue surge and it could be a record profit. they get the value added
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services and can prevent the revenue mix. down from the previous quarter. still, this is a company that needs to monetize other services better. the ad build is 14% of revenue. they have a lot of catching up content withvideo payment and cloud services and to bypass other apps on android and app stores. there is a lot being invested there is the value added services. let's bring in the estimates.
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estimate from we could hit and they could be investing in uber. what will be the reason why? keep in mind that they are all competing for the users in china. surprise to the
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downside and there could be some overvaluation concerns and concerns was cyber administration launches of news organizations. concernre is a growing about china and impact. children can play online in july and morgan stanley was saying that the impact on the stock release has been minimal and the since july 4 and it is up 60% today. up next, the largest --
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this is bloomberg.
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>> this is daybreak. revenue touches an all-time high after posting record first-half earnings and better than forecasted sales. the chairman spoke exclusively to our asia correspondent and he said that he is open to oversee deals, even if there is a crackdown on death. the chinese government supports the real economy and encourages companies like this to develop further.
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regulationw round of and control only affects financial institutions and should make the real economy bigger and stronger. >> a lot of companies have rushed to get overseas brands and assets and get around capital controls. you have these ambitions? overseasnt this to use brands? >> we focus on the chinese market. we have been looking for good opportunities, but we will only consider this in our business, rather than crossing into irrelevance industries. i believe there will be opportunities to make deals in the market. adidas,till trail nike,
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converse, fila, more well-known brands. years, theext 10 goal is to become an byernational company introducing products onto a wider market. the shares will be higher than present. over underjump armour? to.e have the opportunity i'm confident. >> you have a relationship with the houston rockets. your first endorsement contract was with steve francis and i have seen pictures of him for you. would you be interested in a chinese did for the houston rockets? >> a lot of people have asked and we are not allowed to buy a
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team because we are sponsors. we cannot own a team. >> do you think this is something that could happen down the road? there -- ainess businessman eventually own an mba team? .> it is possible i think they stand a chance. many have deep feelings for the mba, especially the rockets. >> mbahat fair push more teams don't have big profit margins. in fact, many of them are not making any money. it is hard to estimate the rockets. billionnot spend $1.5 to purchase a team. >> that was the chairman speaking with stephen engle.
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let's get a quick check of the latest business headlines. a government order in the philippines. they say they will operate in manila, despite the told to temporarily stop. the says they will appeal decision. the philippines says they have violated order for applications. uber says that it expires this month and is under review. they have exclusive talks for new backers of a deal that hangs on a benchmark. the money would come from softbank and equity firms. contribute to the resolve of the benchmarks. >> we could be looking at the
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end of an era. is over,that this following dick's sporting goods. we cut on profit forecast has sent shares tumbling. sales include nike, under armour , and lululemon. >> indeed. >> here are the stories you need to know on daybreak. terminals,able on mobile, and on the avenue. get the news on industries that you care about. this is bloomberg.
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>> there is a clear line they are going to be looking at and will the cost way what we would and they will move to something easier. >> the community is going to fight against that's because the integrated among the countries.
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trade isthat hampers going to be a problem. >> there has been very little said about the mobility provisions, but they are important to canada and mexico, in terms of moving people across the border and we are not really certain how this will come out. we know the canadians will push for the expansion of mobility and the u.s. is really under fairly tight orders from congress not to expand the provisions. coming of the views tomorrow and you can see some madexpectations being during the discussions. i want to bring up a chart that i thought was interesting. for those who want us to
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renegotiate nafta, very interesting here. you see exports to mexico lag further behind and you can see why that deficit has grown and that job killer that president trump mentioned in the slide hemisphere. in this slide was during the financial crisis. you can not entirely blame this on nafta. the manufacturing jobs are not recovering to levels you saw in 2000, but they are stabilizing, even as the imports continue to climb and that is a bit of a puzzle. what isreally correlate
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going on with the lasses that we have seen? >> exactly. what is happening with china and toopens up to the world illustrate the impact the china is having on these relationships deficits incomes to surplus, the u.s. is running a surplus with agricultural goods this and youabout have to focus in on the problem here, one of the key sticking points. chart and it shows these parts and products the exported and it has been andeasing exponentially
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shows you the is sector could be with theg point vehicles to the u.s. over the last five years. course, a lot of other countries take advantage of this with companies operating in taking advantage of the deal. >> this is what is happening and we will leave it there here for daybreak asia. let's get a quick check of all that is coming up. asia is next. a lot to talk about. we have china numbers. what are you watching. >> the top dog now. there is the forecast and they ben that, the debt could
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300% of gdp and they send out the alarm bell with that. capital and you will be talking about nafta and we have the trade talks in the renegotiated taking place here in about 45 minutes. earnings are real important. there we go. >> all right. thank you so much. that is it for daybreak. standby for bloomberg markets. this is bloomberg.
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♪ in theit is 11:00 a.m. here. -- here. rishaad: this is "bloomberg markets. ♪ >> there is blame on both sides. you look at both sides, i think there is blame on both sides. haidi: president trump fans the flames of division, repeating his view of the violence in charlottesville.

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