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tv   First Up With Angie Lau  Bloomberg  August 23, 2015 7:00pm-9:01pm EDT

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♪ >> happy monday. asian markets start the week battered and bruised. production pledge. iran calls for opec talks and says it will defend market share at all costs. and it is less of a rich man's world as billionaires take a hit. welcome to "first up." i am angie lau.
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big-name interviews to tell you about today. we are going to hear from self ceo to talk about their first result two hours from now. thai that, we stay to the stock exchange president. 11:44 those of you watching in sydney. markets in in on asia monday morning. the selloff continues. extent to new zealand, down 2%. we have a weaker new zealand dollar, on the heels of china concerns. $.56 u.s..
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we are counting down to opens in japan, australia, and korea. friday, this was the view from japan. nikkei down almost 3%. check out chicago futures. big differential. it will be a big drop this morning according to futures. strengthening, safety hayden at play. it is the start of a new week of the markets. last week, we saw some of the most turbulent sessions in recent times. there is little to suggest that things have calmed down. david joins us with what you need to know. david: good morning. let's recap what happened on wall street. friday, what we are seeing in asia is reflective of the acceleration of selloff.
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worst single they dropped for the s&p 500 index. can we get back up? let's talk about this first. at highest since early july, looking at four-month lows. 46%.ix, 47%.iday, since 2011,st pop the height of the european debt crisis. on wall street, that is what you have -- a very bad day. 492 stocks were down, and there
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was selling pressure towards the close. that is what futures are telling us right now. there is a fair amount of risk aversion as we enter the morning. awayood thing we can take is that a lot of people are in touch. we can expect a few of these to pick up. at 15.7.&p, trading angie: i am grabbing some extranet -- extra notes here. supporting stocks -- tell us about that. asia, you have south korea and taiwan. in south korea, you have to consider what happened between the koreas. the rhetoric continued into early this morning. for south korea, the finance ministry said, without going into details, they will be
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acting preemptively. i would imagine to support the market. they are monitoring it closely. friday, 900 million u.s. dollars in outflow. the etf in the u.s. got absolutely hammered. biggest one-week outflow. can we get the defense stocks? that is one to watch today because these guys are usually in the backdrop when tensions increase. angie: absolutely. david: overbought, but something to watch. angie: absolutely. geopolitical machinations at work. taiwan, what is happening? there are trying to play defense as well. david: they are taking their cue from chinese regulators and
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banning shortselling. for borrowed shares if the price is lower than the close. you are still allowed to short sell for hedging purposes, but that is effective today. my pen fell. angie: just losing everything this morning. let's hope that does not extend to the market. david, thank you. this global stock rout has wiped a few zeros off the world's wealthiest. the 400 richest people in the bloomberg billionaires index lost $182 billion last week. wongiggest loss in asia to at $3.5 billion.
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insurersecond-largest is boosting assets abroad with $2.5 billion in overseas deals in the works. they hope to increase that to 8 billion by the end of the year. an is looking abroad due to unattractive returns at home. revelry lawmakers will try to form a government today after splitting away from syriza. the unity party admits the differences in parliament are too why to bridge. alexis tsipras aims to strengthen his power base and return with a new mandate. his critics accuse him of caving in to europe. oil will increase production at any cost, even as crude prices in the u.s. ball to $40 a barrel.
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you tell us how iran factors into this? zeb: iran will be coming back online when sanctions are lifted as a result of the nuclear accord. opec is producing at record levels in an environment of oversupply and falling demand from china. prices are now at $40 a barrel on the new york benchmark. this is the longest that has declined since 1986. a lot of questions about how iran will factor in. iran is calling on opec members to make room for it as sanctions are lifted. but this is the crude reality. the new york benchmark falling significantly. the london benchmark down on the year on the order of 30%. you are seeing modest selling pressure on both benchmarks. we will watch it closely. iran is a major swing factor as opec decides what to do. angie: consistently, opec has
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production,r upped and the demand is not there. what strategy is at play? zeb: looking at supply and demand, it does not make sense. china, a huge consumer of oil its economy is slowing and that continues to cause concern. oil prices extending the longest decline since 1986. as we have iran coming online, what is the story with china and other global economies that interact with other nations that interact with china? it is all about market share. , andt share protecting it making sure the countries that are the big producers, the saudis, the u.s., the russians, maintain their share of the market. angie: thanks for that.
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releasing its first result from a spinoff from bhp billiton. let's get over to paul allen in sydney for more. something of a mixed bag today, isn't it? >> yes. and a rather unusual case. year32 has not had a full of trading since it's demerger. the market was expecting $590 million profit. basis, it wastory a loss of $900 million. make of this what you will. south32 has announced plans to year 2016.or the capital expenditure will be $700 billion, dropping to $350
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million by 2018. $342have a debt of million, and will not be paying dividends. looking at the charts, it does not make for cheerful reading. trading at one dollar 52 on friday's close. so that is despite reasonable production numbers earlier in the year for coal and manganese. but rather a mixed bag this morning. angie: paul allen out of sydney, thank you for that. coming up next, is asia center for a solo or will it be able to reverse the curse? ♪
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angie: checking stories making headlines, china's second
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industrial blast in 10 days leaving one person dead and several injured. ndong'soyee of sha chemical technologies was killed when a fire at the plant caused an explosion. the number of people killed in the tianjin explosion has reached 121. 67 firefighters were among them with seven police officers. dozens are still missing. talks between north and south korea extended into the early hours but broke up with no agreement this morning in a border village. un hasays kim jong stepped up mobilization of forces and sent out submarines. the uneasy truce along the border has been strained by explosions in the dmz. each side accuses the other of
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provocation. north korea says young people are lining up to join the military. sunday's news said more than a million people had signed up. ordered his forces onto a war footing. this includes the traditional warning that seoul will be reduced to "a sea of fire." after a terrible week on wall street, let's find out what is ahead for investors in the u.s. su keenan is in new york. su: the week ahead will be focused on a key question, will the real market rebound from last week's losses or continue a global selloff? the dow jones fell more than 500 point. the nasdaq fell 3.5% in one of the worst weeks for wall street
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in four years. analysts describe this in different ways. one said thursday was defamation, friday was the follow-through. but the big question, what will the coming week bring? commodities appear to be stuck in a sharp downward path. we had oil fall below the $40 mark on friday. research says it is unlikely we will see $100 barrel oil again. >> they go from corner solution to corner solution. the market thinks the price is around $50 a barrel. think about what is going on. they have hit a wall. su: in terms of the latest data, we have a number of reports expected to hit the market. according to forecasts, the u.s. economy probably grew at a
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faster pace than recorded. sales of homes rebounded in july, and consumer confidence is reported to have gained in august. bankers,, central economists, and other participants will be gathering at the annual reserve bank for the annual symposium. buy,arnings, we have best dollar general, among those reporting. su keenan, bloomberg news. for more on the week ahead, we are joined by david mann of standard chartered. it was the week that was. what will this week bring? >> i would say it is going to be another week of gnashing of teeth and extreme anxiety. it is hard to see what could turn things around. we do not have a particularly
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big series of data releases coming out. we got through the weekend without any major stimulus or announcements from china. i think people have been expecting some sort of news of some kind. we have some smaller level pieces, but nothing big. of all his, are we going to continue to see the swing we have had from optimism to pessimism? i do not think it will be over this week. economist,hief asia is china's slowdown showing you the fundamentals are concerning for global growth? actually, the fundamentals are not great. came out with across-the-board weakness. part of the negativity is what do they know that we do not?
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that is hard to pinpoint. the fact is that people still like to describe this more flexible regime as a devaluation. we have only moved 3% from the original point. compare that to the 24% plus weakness we have seen in the yen and euro in the last 12 months. do people believe that the run di was trying to stay competitive? if people believe that, desperation has crept in. that fear mongering is part of the problem. it is an unknown. it is hard to prove that wrong for the next few weeks. our review is the real economy , it will be hard to see
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evidence in the data. the financial sector will not be contributing as much as it did in the first half of the year in the second half. ,his anxiety that is out there the week commodity prices, is interesting. people want to ratchet down views when oil is low. they associated with weak demand, but it is excess supply. if we see prices spiking later in the year, everyone will be focused on whether or not that will kick off a recession. volatility is not helping the story in either direction. angie: you are absolutely right. it is the perception of global growth when it comes to oil as a barometer, and we know that is not the case. but the ripple effect is in asia. a lot of people seeing the signs of the financial crisis creeping up.
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are those concerns warranted? think what is actually going on is we are seeing exchange rates allowed to play the role in a more flexible regime. in the 1990's, the fundamentals were weaker than they are today. , that debt toures gdp, composition of external debt, which even in the case of malaysia, is less than half. thectually allowing currency to adjust for the changes in terms of trade and allow that to be a power for the economies in the region is something that should be seen as a positive. it is not necessarily a sign there is a huge crisis to come. angie: that is a great point, david mann. always a pleasure. chief asia economist of standard chartered. singapore moves
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closer to historic elections which the prime minister says are critical. we will have details and reaction when we return. ♪
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angie: singapore has promised to tackle social issues ahead of the election that the prime minister says will be critical.
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loong outlined plans to tackle the rising cost of living. let's bring in haslinda. has, how important will this election be to singapore? haslinda: it is important and significant for a few reason. it will be the first election where the parliament will not be standing in. ,nd for the very first time every parliamentary seat will be contested. it is the biggest challenge for the pap since independence 50 years ago. ,ap has been losing popularity winning by the slimmest majority in the last election in 2011. by there is frustrated higher cost of living and influx of foreign workers. a lot is at stake. take a listen. >> soon, i will be calling
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elections. singapore into the next stage of nation-building. this election will be critical. you will be deciding who is governing singapore for the next five years. but more than that, you will be choosing the team that will be working with you for the next 15, 20 years. you will be setting the direction for singapore for the next 50 years. you will be determining the future for singapore. singapore has to call an election by january 20. but it could be as soon as mid-september. so we are waiting. angie: what is on the menu at the election? last night, good eats
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for those in need -- measures to strengthen the safety debt, improving public housing. lee does not want anybody left behind. a addressed issues like graying population. the employable age will be to 65.from 67 and they will double paternity leave to two weeks, paid for by the government. angie: babies are priceless. also costly. has, thank you. more coming angie: it is 7:30 in hong kong.
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those are live pictures of the imperial palace in japan. we are showing you what is ni thereg as typhoon go is down on japan. it is affecting flights, flights for 30,000 passengers. japan airlines canceling 30 flight with 8000 affected. there.shot for you right we are 30 minutes away from the open in japan, australia, and
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south korea. you are watching "first up. " angie: top stories this hour, asian markets entering a new week on the back of a bruising session. over the weekend, taiwan introduced a ban on shortselling and korea will act preemptively when necessary. iran will raise oil production at any cost to protect market share. it was opec's second-largest producer before sanctions banning the purchase, transport, and financing of its crude were imposed in 2012. u.n. supports calls for an
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emergency opec meeting in december. opec production is near a record. estimatesssed analyst with its first set of results since a demerger. it was spun off as part of bhp attempt to cut costs after a tumble in commodity prices. shares have tumbled 30% since its debut in may. breaking news for you right now. we have fortis q metals full-year net income coming in miss.7 million, a big million. call for $417 ortescue revenue coming in at
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$8.5 billion, but they have been hit by the iron ore prices, which have been whipsawing this year. shares are down 30% this year. the marketst of turmoil that all of this is happening. for some observers, it is feeling a lot like 1994. we have stephen engle joining us with more. you lived in asia in the 90's and witnessed the 1994 devaluation, precursor to the financial crisis a year after. there are similarities. stephen: but there are stark differences as well. wasturmoil happening now not triggered by the devaluation. china devalued in the middle, harkening back to what happened in 1994. there was a chain of events
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after that devaluation that culminated with an outbreak of the asian financial crisis in 1997. currencies started toppling, and there was a contagion. whether it will happen this time, it is too early to say. orther latin america emerging markets may be more older. similarities, japan was slowing. the fed was about to kick off a tightening cycle, same as now. china had devalued currency. on extreme went tightening in 1994. this time, the biggest economy slowing is china. the differences are asian economies and currencies are much stronger. stronger fiscal standings. lots of fx reserves.
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let's bring up a 30 year chart of the yuan. overnight% devaluation. this is the devaluation two weeks ago. similarities and differences. angie: there have been weaknesses in regional currencies. but everybody is saying they are not as vulnerable as they were. kazakhstan, what vietnam has done, there will be vulnerability. let's bring up quotes from glenn maguire. asian currencies are no longer pay to the dollar -- asian to the dollar, and countries have a better ability to adjust.
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is probable in countries like brazil and south africa, not necessarily asia. same thing being said at amp capital. this will include latin america, turkey, but not necessarily asia. the cats among the pigeons. angie: thank you, stephen engle. in korea, tensions running high sides exchanged artillery fire. the north has stepped up mobilization armed forces. talks have taken place without agreement. we have shery ahn monitoring this. we already saw defense stocks going crazy. shery: a reflection of the potential we are seeing on the korean peninsula.
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last week, south korea said they exchanged fire. were made about landmines that they say were planted by north korea. so i have not seen this sort of tension in many years. probably since 2010. koreavember 2010, north shelled an island. fromember receiving a call my little brother, who was in the army. i was like, tell mom and dad love them. we are probably going to war. we have been desensitized by frequent clashes, but on the ground, it is intense. a wasng un's top military consecutive two days with representatives that
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-- but they are not close to a breakthrough. these talks can go on and on. angie: is there a policy advantage to playing hardball? any sort of advantage that the north has by doing this? korea classic north brinkmanship diplomacy. university at tough said they raise the stakes and leave the big powers hanging and eager for negotiation. this is what they have been doing with their nuclear program. because theening south korean president refuses to stop propaganda broadcasts through the loudspeakers. this is taken by north korea as offensive. according to the defense ministry, the broadcasts are continuing. north korea said if you do not stop in 48 hours, there will be
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dire consequences. so this continues. south korea and the u.s. have scramble fighter jets. they are upping the ante as well. angie: thank you, shery ahn. time for a look at the top corporate stories with yvonne man. the biggest production lines in china will remain silent until wednesday because of the explosion in tengion. resume when il can confirm the safety of employees and the surrounding area. destroyed 500,000 toyota vehicles. netflix may be joining a new team in japan. softbank will offer subscriptions at its retail outlet. preparess as netflix for japanese dude you this year, partnering with fuji media to
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offer exclusive episodes. netflix is hoping that will help boost content and attract users. maggi noodles may be back on the shelves in december. they were banned after claims they contained lead. a high court overturned the van two weeks ago. they will continue to sell the existing formula without changing the ingredients. those are the top headlines this hour. angie: the resignation last week of prime minister alexis tsipras is almost certain to lead to september elections. parties on the far right and radical left are looking to capitalize on economic concerns. with the spent a day parties as they prepare to kickstart their campaigns.
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>> this was the mood inside the headquarters of the golden dawn party. we were given rare access to the nationalist party as members prepare for another great election in september. says anger at further austerity would boost support for the party. >> they are angry with someone else. they are going to vote us because they hurt us in the parliament speaking. they see us, they know us. they know we will not betray them like alexis tsipras did in the past. >> the party draws support from a wide base. despite their leadership facing criminal charges in an ongoing investigation. popular withremely
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new voters. we will be even more popular with the farmers. we are seeing a lot of those from the army, navy, fire department, coast guard. whoever is dealing with criminals. got 17en dawn, which saves in january, is accused of being violently anti-immigrant. denies.the mp >> we are not neo-nazis. we are greek nationals. he sent golden dawn members will be out in force during the campaign, particularly in areas with large immigrant populations. >> that is what we do best of all. >> should they feel threatened? >> why?
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migrants should be afraid of the ones that are taking advantage of them. like the syriza government. they have to be afraid of them, not us. >> across town, a different gathering. new partyity, a formed by former syriza members at an outdoor bar. of their third day as a party determined to up and the bailout deal. germany and the european union is doing our job for us. they said to the greek people that alexis tsipras means new memorandums.
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it is a new era in greek politics. , but theo struggle solution is in front of us. >> tom mackenzie, bloomberg. angie: just ahead, singapore at a crossroads. we will take a closer look at the elections critical to the future. this is angie: checking stories making
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headlines around the world, the americans who helped divert a shooting on a paris-bound train acted on instinct. they have spoken publicly for the first time since the incident friday. two of them have military training, but they were on holiday when an armed man tried to open fire. man and a british
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citizen helped subdue the attacker, a 25-year-old moroccan who authorities say has links to radical islam. police say luck will be needed to catch the people behind the bangkok bombing. almost a week after the attack that killed 20 people, a reward for information has been raised to $85,000. the investigation appears to have made little headway. video and a sketch of the suspect, but he has not been identified. singapore has been promised more social measures ahead of the election. loong will raise the employable age to 67 and will call an election soon which will be "critical" for singapore over the next two decades.
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he says singapore is at a turning point. haslinda: this national rally speeches coming just two weeks after singapore's 50th birthday. the speech addressed foreign policy and domestic issues. there were some goodies for the people and upcoming polls. the dean of the school of public your initialis reaction to the speech? he is setting the stage for the elections coming in singapore. singapore,sual about i can assure you that pap will win the election. but i cannot tell you the date of the election. you can say the
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current party will win, but by how much? that is the critical question. saw at thepport we celebrations translates to vote? you are absolutely right. the big question is, what percentage of the vote will the ruling party get? and how many seats. what is unusual about singapore today is that there is a new kind of political uncertainty. both scenarios are possible. getse one hand, if the pap a larger percentage of votes then in that 2011 elections, i would not be surprised. there is a feel-good feeling in singapore. the best 50 years any nation could have. the nation came together when the previous leader passed away.
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all of that is set for a good election result. but this is a new political environment developing in singapore. many of the young want a bigger opposition voice. so there is political uncertainty that was not there. -- but i you that can assure you that pap will win. haslinda: almost a given. the young voters will account for the majority of the electorate. that is happening for the very first time. and for the very first time, all parliamentary seats will be contested. how will it sway? fort is maybe good singapore's political development at all the seas -- seats are contested. i think you will see a very
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interesting political contest happening. , the level of participation will grow. what is also good is that the prime minister stressed there should be a renewal of leadership. many interesting young faces are running for election for the first time. the good thing about the elections is there are more potential leaders emerging in the political space. haslinda: what is this election about? well, i think the government says the election is about who you want to see ruling singapore over the next five or 10 years. that is what they see as the key issue. there are a lot of challenges
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coming singapore's way. they believe a strong mandate through the government will enable the government to run the country well. at the same time, the opposition is saying, as you know, the people want to see a strong government but they also want to see a strong opposition voice. more organized a opposition in singapore then you had the past. sense, it will be a much more interesting election than previous elections in singapore. the 2015ertain whether elections will be as exciting as , for the first time, some government ministers lost their seats. haslinda: we thank you for your insight. handing it back to you. canon lookingup,
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beyond cameras with a spending spree on robotics. ♪
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angie: welcome to the stock exchange. we are looking ahead to the open in japan, australia, and south korea. it is going to be a volatile day. one of the reasons is all the tensions on the korean peninsula. a group of stocks we are following, this one makes weapons. electronic warfare systems, antennas. i'm watching this closely. could get a big pop if things do
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not change in the next hour. angie: things are ratcheting up. could get volatile on the stock exchange to go. -- too. i'm talking about softbank. netflix adding subscriptions to retail outlets. "orange is the new black," "house of cards" could all be coming to the country. angie: what are you watching? zeb: canon. they are allocating $3.2 billion to move into robotics and life sciences. are targeting ¥1 trillion in sales by 2020. angie: who uses cameras anymore? that is the verdict from the stock exchange.
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stocks highlighted are based on news events. looking at the next hour of the show, consumption is a good indicator of economic health.
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♪ angie: round two, asian market battered and bruised. south 32.formance at tension as thed two koreas meet in the talk of war. welcome to "first up", i am angie lau live in hong kong. markets are kicking off a fresh trading week.
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let's hope trading this week is new and fresh compelling one of the worst weeks in years. david is here. hope, theren always is no indication at this point, on me recap what happened friday. we did have indication that, don't go all out going against the time right now, there is risk in the market, things like yen getting up. , and the vixown index, 40%. i think that moved on friday, not as violent as perhaps the last time when we found moves that significant. go all the way back to 2011,
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when the european debt crisis was arguably at its peak. speaking about europe and the that happened as well. inope on friday, take a look the middle east, collectively. that was down. read -- continue to be red. down 2% here. watch out for korea closely that, we just got the news the financial regulators there met early today to they said that they will act preemptively. this is a theme. not only are investors getting defensive, but regulators are getting and the game. watch out for taiwan, they have
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announced certain activities of shortselling. i will get that in about an hour when taiwan opens up. what are we seeing as far as levels, japan, south korea, they are down. that is where we are at the moment. gas, you look at you look at the notes this morning. that taskanalysts say is falling to 18,000, that is 7% lower than where we are at this time. i would continue to track markets. back to you. shares inre watching metals, down to 9% at the open in australia. of $317fit reported million missing estimates.
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we will get to paul allen, this is a big miss. paul: yes, it is bad. net profit down 80% on the -- that is a when broad range for fortis q metals. the highest was a $1.1 billion profit, so depending on how you look at it, that will give the context to how this is. fortesque region, metals is misleading, they only do iron ore. there is your explanation as to why they are getting hit so hard. they have been trying to pay down debt, net debt at $7.1 billion. if we take a look at underlying
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earnings, that is down from $5.6 billion a year ago, so this is a story about the fall in line -- calling line. all that aside, they are still share,g two cents per that is down from $.10 that they offered last year. south 32 has a demerger, something you would not expect. paul: they put this announcement out with a profit of $28 million, but underlying you see onemillion, but a difficult to get a handle on. they have not had a full year of trading. they just listed in may when they do emerge -- demerged. they will be cutting costs for -- cuttingfor 2016
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2016, and the ceo says the broad cost-saving initiatives are already delivering strong results, so they have an eye on the future. they may have to, because if we look at the price of south 32, it looks like a ski slope, they have not come close to their listing price. we are still waiting for them to open. allen, thank you. we will discuss results later 32's ceo. south that will be first on bloomberg, and 10 minutes past 11:00. other stories we are tracking, toyota down 5%.
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their biggest production line in china will face shutdown, the cousin of the deadly explosion intention -- because of the deadly explosion in tianjin. they say that i will print -- it will resume once it is safe. --s blast the droid destroyed nearly 5000 vehicles. the hurricane that went to the philippines is now on course for japan. disrupting flights. they have canceled services today. more than 20,000 passengers have been affected so far. and tension is running high in the divided korean peninsula after the two sides exchanged fire and accusations. the north has stepped up forces.
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talks took place over the weekend, but broke up without agreement. peter is here. how long could it go on for? talks they have resumed and they are still talking, 18 , so there is no end in sight. they could go on tomorrow. nobody knows. in the areauestered and they have left reporters out. we have no idea. angie: how are south koreans reacting? have been through so many of these that they are really taking this in stride. it is not seem to faze them, yes, they are a little uneasy, but you know having been through this so often that they are not
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really -- they are going on with their lives, like nothing happened. angie: how have the markets reacted? it was compounding, the chinese effect, so on friday the korean stock exchange with down 2% and the currency went down, we will see today how they appear. there has been outflow of funds from many of the stocks and the markets here. but, it is not significant and there are other factors contributing to it, so it seems to be moderate, versus a very serious one. angie: we continue to watch very closely, peter thank you so much
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out of soul, three of. south korea. talks forto conclude trade by november, helping traded target for asian nations. they also look to diversify currency holdings. india remains optimistic about the future, the official target is 8% gdp growth, which can be --ieved if there is agriculture should improve, says jaitley. and lawmakers will try to form a government today after alexis tsipras resigns. the new popular unity party has
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made a difference in parliament. parliament was dissolved last week. rebels hope to return. next, business leaders met over the weekend to discuss corporation and a keynote speaker joins us live, when "first up" continues.
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angie: making headlines around the world, the u.s. says there are no injuries after a series of explosions at a military base in japan. the incident happened soon after midnight about 40 kilometers south of tokyo. it is not known what caused the
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fire, but it was said the building did not have any hazardous materials or ammunition. china's second industrial blast in 10 days has left one person dead and several more injured. an employee of a chemical technology company was killed when an explosion happened. this came after a number of people were killed in a blast in tianjin. have been missing since then. and the head of the thai police say that luck will be needed to catch people behind the bangkok building. guessed that the perpetrators have left the country. the reward for information has been raised to $85,000. they have made little headway,
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the security video. one suspect has been identified. and business leaders met for the eu business summit, the top delegates and therefore the most important economic story of our time. a keynote speaker at the summit, president of is unilever. here it is good to talk with you. unilever,hink about you think about household goods, but it is an incredible barometer for the growing wealth of nations. what are you seeing in terms of what the growth will look like over the next decade? is aod morning, unilever
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powerhouse, it shows fantastic a positive business. ,e have seen market slowdown the combination of chinese impact, their currency, robin t. rowe price is down, so -- raw material prices down, so it is important that we ignite growth rate. that is why this work is important, because we believe, market can help -- common markets can drive productivity. this is what is needed in asean, especially at this moment. angie: this moment is vertical. these talks that happened over the weekend, especially after -- globalmarket
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market was affected by chinese attendees say did is the most critical issue right now in the face of this selloff? >> the long-term potential of asean is very good, the demographic dividend with china getting more expensive, that shows manufacturing moves are the direction, but what is really important is productivity growth. when you want to have another time of growth, we need investments and infrastructure, education, technology, we need to drive productivity because that is the only sustained growth engine that we have. that comes from private investments, capital, but it also comes from governments.
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reform promised, but hard to deliver. how big are the challenges like this for curbing potential growth? >> we made really good progress on tariffs, now we need to work on tariffs barriers and make sure that customs work, that we can invest in businesses where we want, and many sectors are still closed. think about the financial sector. obviously, we want a more free movement of people. a lot of work still have to be done. angie: protectionism is critical here, what is the recognition that fair trade relationships will be there, rather than a
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hindrance? >> we have experience in other blocks, that when asean wants to india,e with china, europe, we have to make sure that we have a relative scale. when we fragment our countries, how will we build companies that can compete on a global stage? i think that is what is important. when we do not get economic lose prosperity that we all long for. angie: it is one thing to talk about growth and in other thing to look at the reality of the currency markets some of the ,olatility -- currency markets some of the volatility that they
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are experiencing right now. 207,u need to think about 208, but the reality is for a company like us that has been here for 100 years, we have never pulled back. crisiscontrary, we see as an opportunity to step up and improve operations where we are needed. when the water is low, you see the stones coming through. we will work on the portfolio, because nobody -- not everybody wants to sweat it out. it is a threat, but on the other hand, there can be a real opportunity for business. angie: peter, thank you. unilever president joining us out of singapore. tumble to the 17
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year low. we will have more after the break.
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angie: welcome back. david: it is monday, here are the headlines. the selloff is continuing across the region, japanese yen is a major indicator right now. havenontinue to seek safe .
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it is a six-week high for the japanese currency. dollar is at a fresh six-year low. risk, this is showing currency falling further -- 4.22ading up for 22 to the u.s. dollar, which brings us back to 1998 when currency was last at these levels. it is at course 30 -- now some showinge region is inflation for singapore. we expect to see a lack of inflation in the city. levels have fallen .2%. deflation streak is nine straight months.
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you are looking at pictures there, not sure how representative those goods are. this is really the story here. markets continue to follow this, equity markets expecting to get slammed. 4.2275, very steep. we will continue to check this. at the moment, this is the story. -- says it will increase oil production at any cost. as they try to stabilize the crude market and how does iran factor in the this? >> when sanctions are lifted, it would add one million barrels of oil, not right away, but eventually.
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opec is already pumping at record levels. but they had seen a streak of decline, prices below $40 a barrel. this is down 31% in new york, 21% in london, and has been a rough year for crude oil and other commodities. add iran with opec pledging to maintain production at all cost, a lot of questions on or that will impact producers. angie: it sounds like they are ignoring economic 101, supply and demand. they are still producing. it does not make business sense, so what is the strategy? >> it is protecting market share, that is why you have the russians for example, moving to protect their share of the market.
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particularly in the u.s., shale comes online. this is a big threat to the middle east producers, because the u.s. importing oil from middle east partners, everyone wants to hold onto their share of the pie. and it is in the face of common sense, because china is slowing down, they are record production levels and to the keep on pumping and prices fall. angie: thank you. historyp, lessons from in market palm oil -- turmoil, foreshadow a new economic crisis. we will look at clues from 1994. stay with us. ♪
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angie: we are in hong kong. effects of the stalled air movement, the air quality not very good here. .his is "first up" the top stories is stocks falling at the start of the week . after plunges in china and the u.s. on friday. down at more than 3%, while the
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-- marc gasol -- market saw a drop of 2%. 42 -- fortique shares are down. this contributed to more pain to come, gold and sex -- goldman sachs predicting it will fall. and talks between north and south korea have continued into this day with no signs of an agreement. the two sides have met at the border. they see that kim jong-il and has stepped up mobilization of his forces. he has sent summaries -- submarines to see.
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markets trading in the asia-pacific, there you go. it is red. down below the 19,000 mark, below that 20,000 mark. it is at 2.2% down right now. and and south korea, pulling back, except for defense stocks for today. 200 down to .37% 2.37%.- down this is starting to feel like the lead up to an asian crisis. , kevin whator more are the similarities and differences between now and 1994? devaluation back then and the fed was making a
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frightening cash tightening cycle. -- tightening cycle. and china is willing now, so those are the three similarities with the mid 90's. angie: how does china's valuation activities risks -- add to these risks? >> we have seen the effect in china with valuations in kazakhstan and the amount. also, for commodity prices, china's demand is likely to reduce and because it will pay more in dollars, those will be the key things. broadlye will look more . what is the most vulnerable
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region? asia is in better shape than it was in the 1990's, the asian financial crisis helped it to clean up. it has better positions and better reserves, there are not fixed exchange rates, so it will probably be ok with a few exceptions. malaysia, be in taiwan, korea could face problems. generally, the risk is for emerging markets, commodity brazil andmaybe other places that could get hurt the little bit, mexico because it competes with china for the prices.ket on export if valuation goes farther, it could cause problems. angie: kevin, thank you. worldoute had the
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billionaires using big bucks. the richest 400 people lost a combined $182 billion last week. we will go to ivanovic you have china, commodities, a lot of factors. mainlandata from the showed a big miss. the s&p 500 in the u.s., the worst week in four years. by $75 billion. they are in the red for this year already. the conflicted past the collective net worth over $400 billion. week, warrens last buffett, they lost the most. $3.6 billion in the last week. stocks slipped 5%. obviously, we have the bear
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market, a weaker yen. wealthiest losing big-time, $18.8 billion during the week. energy billionaires lost a lot as well. longest streak in oil prices. from continental resources, $195 million lost. in the bigger picture, if you look at these, these billionaires are like pennies. still, quite a big number. angie: when you have billions and billions -- it wasn't all bad for the richest last week, who did well? during this, we saw 11 billionaires add to their fortunes, said the biggest
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world's 39thhe richest person. -- heevated his net worth elevated his net worth. angie: what about the little people? yvonne: it is a different kind of hurt. angie: time now for a look at cap corporate stories -- top corporate stories. yvonne: boosting assets abroad. david: overseas deals in the works. to invest uber has made comments on being blocked in china, calling it anti-competitive. they had been planned for china, recently saying they will spend $1 billion in china this year.
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they are attracting investment there, the citigroup wanting to take a stake. reports from india saying that nestlé could be back on the shelves by december. june amongstned in ad ins that they had le them. nestlé says that they will rebuild the maggi ran. -- brand. angie: the resignation of alexis tsipras is almost certain to lead to september elections. parties on the far right and radical left are looking to capitalize on voters. bloomberg spent a day with two parties as they prepared to kickstart campaigns. this was the mood inside the
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headquarters of the golden dawn party on saturday night. we were given rear access to this party as members prepared for what is expected to be another great election in september. the golden dawn mp said that anger at austerity and the crisis willocess -- boost interest. they will vote for us because they are angry with someone else. because they have heard us speaking, they know us, they know we are not going to betray them, like alexis tsipras did. says the party draws support from areas. inwe are extremely popular new voters and we will be even more popular in the agricultural
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farmers, we have seen a lot of growth from members of the army, navy, fire department, coast guard, whomever is dealing with criminals. ingolden dawn, which 117 c -- iny -- 17 feet in january, have sea and calledts -- in january have been accused of having not seen members. we are going to be -- this is what we know to do. >> should people feel threatened, migrants? >> migrants should feel threatened by those who are
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taking advantage of them, those who are asking them to come, see how they live. they do not need to be afraid of us. >> across town, a different gathering, the popular unity, the new party formed by members opposed to a third bailout. >> it was the end of the first day as the third largest party, one that want to of end the latest bailout deal. paying youre commission, it is our job, from support that was given, and the elections, they also said to the greek people will have prosperity. memorandums. it is a new era for all of greece. butave to struggle,
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nationalism is here. up next, singapore's prime minister warns there are no easy choices ahead of upcoming elections. we will be live for all the details. ♪
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talks checking headlines, between north and south korea hoursued into the early this morning, but with no sign of agreement. seoul says that kim jong-il and has the forces. and chained by explosions in the dmz and rocket and artillery fire, each side accusing the other of competition. and north korea says that young people want to join the military. they said that more than one million people have asked to
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sign up. im jong-un says eoul will be reduced to a sea of fire. lanka's political party has been that they won't work together to make a constitution that protects ethnic minorities. -- follows the prime minister's victory in last week's election. it is a political comeback bid by the former president, who is now part of investigations into corruption and war crimes. offers prime minister more support head of a -- trying to manage rising costs and
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foreign workers. a correspondent in singapore. how important will this election be? important,ry remember that the ruling party from 2011, they have been trying to win back support. social measures announced last night, including affordable housing, are all showing empathy. this election is significant for other reasons, it is the first time all parliamentary seats will be contested. and the first time that the county from your -- premier, will not be contesting. take a listen i was staff had to say. >> this election will be credible -- critical. we will decide who will govern for the next five years, but much more than that, you will be
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choosing the team who will work with you for the next 15-20 years. you will be setting the direction for singapore for the next 50 years. you will be determining the future for singapore. know when exactly elections will be held. it could be as early as mid-september. angie: of course with elections comes goodies on the menu. lee says it is important that nobody gets left behind. jobs,able health care, singapore has an aging population and the government will raise the employment rate age to 67.
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the prime minister said that immigration and that the economy foreigners- tank if do not come in. he said that whatever action they choose, it will involve pain. they want to restructure the economy and shape it in the long run. angie: thank you. india's prime minister swept to power with the biggest popular mandate in three decades, but his reform agenda has faced opposition in parliament. he will face state elections that could consolidate his position. the first was a place in a poverty-stricken area. bloomberg news reporter tom
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laughter has been there to assess the challenge of daily life. take a look. when the river is high and there is no bridge, the only way to get across is by boat, so what you see is much of the island boat by boat, coming to the short. -- shore. when they get close enough, they people up a plank and slowly walk down and you see wedding parties and merchants motorcycles going down one by one. you see young mothers holding babies. you see young men getting off going to work. you see the life of an island emptying one by one down this
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plank of wood. coming back from the island after interviewing the police there had replaced another officer who had been shot in the chest thinking about that officer who was shot, his journey to the mainland as they were taking him to a hospital, boat,leeding on this slow coming back from that interview i thought about that. the fact that this guy, because he had to take the boat, there's the lack, because of of resources there, he really had no chance. on thethat was challenges facing the people of bihar. and we will be live in new delhi
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in an hour to find out how the state election may play a key role in helping to consolidate power. and netflix subscriptions in japan. the details when "first up" continues. ♪
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angie: markets. a typhoon near japan and it is disrupting flights. we also have storms brewing in the equity market. down 2% and topics heading for a 10% correction. 200 is undere pressure. it is off, close to 2% down.
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korea, they are also heading toward a correction territory off the august high, dropping to 10% from the august high. and singapore will start to trade in 15 minutes, futures pointing to a lower open. ♪ angie: welcome to the stock exchange, we will check in on what we are watching with training underway in asia. is that a hand of friendship? it was self-congratulatory. of course, the defense stocks go crazy. >> they are usually one-hit wonders. angie: but it is very down
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today. very down. congratulations. >> i am for the drumbeat of war will return to south korea. angie: we will talk about softbank, this is tying up with netflix to offers instructions. they are trying to -- subscriptions. they will debut later on this year, we do not know when. yvonne: japan at the country where consumers recognize value. we will see how well the partnership is done. >> they are getting a better value with your stock. i will stay on your good side. yvonne: come on. >> we are following candidate because they will spend money to expand beyond the digital camera safe into life sciences as well as robotics. so you can get your cannon robot by 2020. angie: it is difficult to pick
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stocks today with all the selloff. thank you everybody. on world events. ♪ trending business, coming up next. >> south 32 coming up with numbers. a mixed act, they have missed estimates. there is a result that we are comparing. asking about investments, the possibility of increasing production, making acquisitions. greedy and if they start to be fearful, warren buffett has said it. looking at that, the stock exchange is showing $1 million outflow. taking a look at the futures.
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have theurse we markets open at the bottom of the hour, anymore tumbles? angie: tough. thank you for watching. ♪ >> this is trending business.
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going to be live in singapore. stocks shift.g the regional benchmark at a two-year low. up oil production.


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