tv Bloomberg Markets Asia Bloomberg April 22, 2019 10:00pm-11:00pm EDT
thought thisve time last week, oil would be down. a meeting in beijing that really undermines the global .inning rally new zealand coming back from that holiday. it is really the china story that continues to reverberate and perhaps, we get the sense of authority they will push back from aggressive stimulus. that is a narrative we continue to contend with. we are pretty much gray here. hong kong coming back, not seeing as much of an overhang. we are not seeing a whole lot
movement so far, but dollar rally is slightly higher, but we are seeing some decent bed when it comes to asia. a look at commodities, we are focusing on oil and the fact that president trump is confounding the oil traders and send it will not expect neighbors for iran oil, so that has a lot of applications. a lot of issues about supply once again. brent crude and wti rallying once again and related -- really staying with commodities catching a bit here with the exception of copper. take a look at china markets. we will zone in a little further . the bond market continues to see weakness. 3:42.ment paper at some of the movement in the
equity markets, some say perhaps not, some say equities are the better alternative. a-shares heading a little bit lower. we will talk about the property stocks in a moment. it seems like they were talking a little more about how we did see less easing in the real estate market. let's take a look at the terminal chart because when it comes to the oil markets, it is quite interesting because for the most part, the hedge funds are getting it right. we are seeing them continue to accumulate. in fact, we are back to october highs, so in a sense, they are betting against president trump as he still thinks the life of saudi arabia can make up for that loss producing when it comes to the exports in iran. it has been a stunning rally. we are up about 50% since the
september lows. we are seeing a lot of movement here today and watching some of the big moves when it comes to oil and how that impacts some of the asia s x. dollar pretty much flat here. it has really been beaten by all the selloff for the bond market given the oil prices are low. , prettythe offshore much flat here at the moment. looking about that time at the correlations here. side, one oil goes up, it is good for those to my right side very similar. of what we had yesterday was a start move up in
the dollar philippines and all of the oil impact more is the market strategist maxlinear. when my producers book you last week, we were set to talk about and indonesia. obviously, i have to start with oil prices. restock any ofit it hadsumptions? -- as you rethink any of your assumptions? >> i don't think anybody heading into easter weekend with trump -- that trump would drop his waiver. he did historically get waivers to big importers like india. for asia, i think most of the move was yesterday. the u.s. confirmed it, so i think it is behind us. it does give me more conviction
and i think that in march, india ignored the rally because they were looking at the developments and how that translated to the elector. i think of -- i think the markets are waking up to the fact that it is quite high. it still gives me more confidence even if you do get a favorable election outcome in may. >> should i focus more on the oil story or wait for the and national -- wait for the national election outcome question marks >> i think they are both important. with the national election come i think there's a risk that they are stronger after the election counts come out and i think that it continues to build the reserves comes to be more important. for the oil, i think it is also tied to the china because you have better china data and a recovery, i think that seeks to was a man, so the fundamental is
pointing to a higher dollar. it showed up so far in chinese data and you can take your pick. what we have seen from other trading partners, taiwan, singapore, a couple of days back. export numbers are all down. if i am along these currencies, is it a matter of patients suggests i get out of the taiwan dollar? those, the fed start to heading out more cuts. if they start becoming more dovish, i think the currencies n. can -- weake china data is recovering come a but the regional data is still quite weak and i think that is
because the nature of the recoveries different. the authorities are aiming at boosting domestic demand. you are not seeing the trickle-down effect like you did and historical recoveries, so i like along the offshore r&d. outside of china, there's no real good news left and domestically, i think korea is the most. you are still seeing some weakness. you have the government trying to respond to it, but the markets look at -- [indiscernible] ok in the coming months. >> i want to talk more about the philippine peso as well. they were the poster child last year and just wondering is this time different given the fact that the domestic backdrop is more supportive now? way i think about the philippines is the high
inflation, high-growth. gdp,ugh that is good for it is not good for the peso. in 2018, everyone was worried that inflation was getting out of control. it is probably more negative or the peso because now they do have room to cut rates, which again continues the infrastructure boom. that should all spell a weaker peso. have a look. do you think it is cheap? >> i think it is cheap relative to be economic under for -- fundamentals. right now, investors are focused on credit concerns. you did see them react negatively to the bailout of the state plantation owner, but the negative fallout might drop
malaysia from the wg be cut -- even though it is only around 10 billion total held by foreign is pretty small. fundamentals are still quite negative. i think investors are going to be cautious, up until you see them reaffirm the rating and you could probably see a little bit, but i don't think it will go past because leverage is concerned. everyone still talking about the end of the dollar rally here . every time we do that, we see highs again. when are we going to see that weakness come through? >> it is difficult for the dollar to selloff against the other currencies because the bank of japan is not near normalizing policy rates yet. you could see some strength in
em currencies versus the dollar and i think that could happen if the feds become more dovish. again, the customers, they also do delta europe and delta japan. currencies are still weak against the dollar, there's a limit to how much strength, so you do indonesia because have the element there. it is not just for indonesia. us in singapore, let's get to the first word news now from new york. >> we start with the latest on the earthquake in the philippines. at least 10 people were killed with a magnet 2.63 tremor which stuck -- struck north the last -- northwest.
about 30 people have been feared trapped in a collapse supermarket. airport was ordered to close and the stock exchange will be trading on tuesday will stop to sri lanka, which is blaming a domestic jihadist group for sunday's wave of bombings. they admit that they shared warnings beforehand. however, the government is questioning how a small hometown group could have struck across the country and looking at possible assistance from abroad. people and 290 wounded almost 500 more with several foreigners among the victims. vote,er a three-day amending the constitution and allowing him to remain in power until 2030.
the referendum is certain to be approved. [no audio] making nissan -- linking nissan's chairman on -- chairman and his son. we are told they facilitated transfers to another companies connected to the pair. prosecutors in japan have indicted him for misdirecting funds for personal use, as well as other offenses. he has consistently denied any financial misconduct. global news 24 hours a day, powered by more than 2700 journalists and analysts and at tictoc on twitter, in more than 120 countries.
how did we get here in the first place? the biggest problem that really triggered this was when the auditors gain them -- given a qualified opinion on their 2008 statement. they did not realize they needed to provide more permission to get a clearance from their auditors and that contributed to a lot of concerns about whether the company will be able to have and itcash that is due raises a lot of concerns on the market. a how could you not noticed qualified opinion? connected to this next question. why is the government leading the rescue? financially and operationally, they are doing quite well. flying to the major
countries. korea is probably outside abroad, so they see the business is on the side very well and under new leadership, the company could turn its fortunes over. >> we will continue to watch that. halting some of the roots as well, so we will continue to watch that. tesla, theh onto lowest in a month as they declare themselves underwhelmed and elon musk was determined to be optimistic, highlighting a tesla designed chip that they say will make the cars and reality. >> not by a small margin, but a huge margin. all caps is being produced right now have this computer. thewitched over from solution about a month ago and
switched over model three about 10 days ago. produced have all the hardware necessary for self driving. >> let's bring in the asian companies with us in tokyo. shift back tothe driving, talk us through the rationale from elon musk. on the is a chance brightest spots for the company and it is positioning the other automakers which are rolling out luxury electric cars and also models to compete with the model three which was the big emphasis prior to that, getting it out, meeting production targets and the company have been struggling with that, so now that is set
aside. they can focus on the technology aspect were tesla has some leadership an opportunity. it has its fleet out there that already has hired technology and they don't have a legacy fleet like many of the biggest rivals, so this is emphasizing some of the strengths. there is plenty to be skeptical about. he said he talked about having one million of these cars on the road with full autonomous driving by the middle of next year. we are getting used to him setting these targets that see more aspirational and i think analysts were overwhelmed about this presentation, but there's a lot to be excited about. again, small exaggeration. he says we are coming out with a new platform for sharing cars that will make it crazy for consumers to buy anything else. it is a little hard to see how that works out, but it is a lot
to be excited about. some of the analysts were saying it is born, no really silver bullet. likessla compete with the of waymo and uber who are also developing autonomous vehicles? >> this kind of development it is uncharted territory. it is really hard to say which company is going to crack the case in a functioning autonomous vehicle out there. however, as you mentioned, some of the other -- the other technology has a head start and for tesla, when the big concerns is cost. google and some of the other rivals are not already committed to manufacturing other things the way that tesla is, so cost becomes very for them here. muska said the economist part is the entire cost structure, so
this is a company that is also dealing at the same time with the man diminishing, so it is not necessarily in a position to spend money in a way that some rivals are like google. that may be connected to the video that is blowing up. do we know a little bit about that video? tesla says it is investigating the case. when you see that? it looks very realistic and at the same time, it is just a video that someone shot. it is hard to know what caused that burnout. it is not unusual for electric vehicles to caps on fire, but the way it burst into flames is quite surprising and has not been seen before. tesla has a history
of trying to draw attention to the positive aspects of the company. actually, all companies do that, it's just that must has been also, he hasit and some pretty exciting things to say about his brand and the company and so that is what he is doing, but certainly this fire threat and safety concerns pose a threat to the carmaker. tesla, neilt just as well. -- neo as well. missed the interview survey, feel free to go back and watch. securities and functions we talk about, all more for our guests throughout the hours. check it out at tv .
>> your of the latest business flash headlines. beyond me, preparing for a taste the idea of more than $180 million. gates, backed by bill leonardo dicaprio and don thompson. beyond meet is expected to share over 9 million shares. >> chinese starbucks rival has filed for an ipo in new york. they reported that the company wanted to raise about $300 million in the offering. lastly, they pocketed $150 million which gave it a valuation of almost $3 billion.
they were formed in 2017 as more than 2000 outlets. platformese video game is planning for an ipo here after they were listed in the city. reported a net revenue of more than $500 million, so it is having the user base at 17% of the first quarter of this year. ubs. have an update from looking a bit more optimistic of where growth is going to be. also, a are raising their csi --ecast from $3800 to $4000 over $4000. to ainly, going back
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>> it is 10:29 p.m. monday in new york. su: we start in sri lanka blaming a domestic jihadist group for sunday's wave of bombings. amidst foreign intelligence had shared warnings beforehand. the government's question how a small homegrown group could've struck across the country and is looking a possible influence from abroad. the blast killed 290 people and wounded 500 more. seven foreigners among the victims. in egypt, the polls have closed oner a three day vote
amending the cause and allowing the president to remain in power till 2030. results are expected in a week with the referendum certain to be approved. authorities have waged a cra ckdown on popular dissent ever an electedsi toppled government in 2014. china's grandiose belt and road initiative is getting a makeover, after allegations of corruption and unsustainability. beijing is exerting more control over the program and want to produce a lower profile publicity with several western countries wary of china's global influence. in beijingers are for the second belt and road forum this week. spacex has suffered a serious setback in its effort to send
astronauts into orbit this year. over the weekend, it's dragon capsule was engulfed in flames during an engine test in florida. the caps off flew to the international space station last month and was supposed to be reused in june. spacex had hoped to launch twoed radragon capsule with astronauts as early as july. global news 24 hours a day on air, at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. let's have a look at the commodity space. oil's very much or top story. how it's spilling over into other asset classes. 4.50 your high. iron ore is back up. you know i? -- why?
steel futures in china rallying on these environmental curbs they opposed. that had a spillover affect a iron ore and supporting more demand for higher grade iron ore. perhaps that is why we are seeing ore up 2%. cooper futures also higher -- copper futures also higher. joining us is our guest focusing on big oil. given the news that shocked the markets. john driscoll -- that's su keenan. there he is. thanks for joining us. in light of the shocking news we got out of president trump tionsight about iran sanc and the fact they are not extending these waivers. the market is already tighten. ini think this has set motion a number of scenarios. iran experts are already declining amid the overt threat
gotountries that if they've to cut back the imports ofrom iran. this is the doctorate enunciated by john bolton and mike pompeo. this tightens the tourniquet on oil markets. we're poised to move higher. we are up 40 cents from the close yesterday and we are set to move higher on the perceptions of tighter oil markets and continued geopolitical tensions. the short-term upside risk? gives us a range. so, i understand what should not be surprising over the next few days. iswell, the primary driver iran and the market is digesting that. you can see noncommercial funds piling back into oil. we are set to reach $75 on brent
. but we have got other tensions around the world. hislibyan general, continued attacks on tripoli. we got news of force majeure in the lightfield. 150,000 barrels a day off-line. you've got inventories being drawn down. we'll be watching tonight and tomorrow with the energy information agency if we see continued drawdowns and inventory but my own view on this short-term is supported. i see this market moving up 75, 76 but i sense we will get $80. let's not forget, donald trump, will he is effectively squeezing oil markets he is put out in a tweet this morning he is expecting saudi arabia and the uae to offset the loss of iranian crude with additional production. i'm not sure that is a done deal. saudi minister has
his own opinion on what the opec is going to respond with. >> it is going to be hard to make that argument that they will raise production when the rest of opec is still under output curbs. what can opec do? will they have to ease policy? trump white house is arguing that you are losing roughly 1.5 million barrels a day with iran going off the board. we had the deterioration in venezuela, the loss of that oil. while they want to marginalize iran, they would like the cartel to make up with additional output. increases opecyou p consider the plus cartel has more than complied with the 1.2 billion barrel a day cut, this is open the door with output increases.
for a country like russia which has been slow to comply, it looks like they have the right policy all along because you have got different agendas within open. -- in opec. russia would like to produce more. the saudis set a target of $80 a barrel. so, the response from opec will be the traditional we want to balance markets whatever that means in terms of price targets is anyone's guess. >> john, one of our oil reporters brought up earlier the fact that when you look at the math and what the of the producers have to make up, that is easy work. the issue then becomes, it is the type of oil that iran produces, high-grade. you don't really see that from other producers. do you think that is a valid concern because it is not just about one million offset by one million. are two actually there
important grades out of iran. oil, whichour crude the world had to cope with an acute shortage since venezuela dropped off the map. iran is a major supply of an ultra light feed stock condensate. this is not included in the opec, but they werare a key supplier to end-users in asia. with disruption of both of those grades it is going to be destabilizing for oil markets. users will have to find alternate supplies. >> i was going to ask you about that, too. china was quick to condemn this move from the present. -- from the president. are we likely to see a lot of the suppliers exit the market? john: well, china, both china and turkey came out to protest the u.s. action with setting the
2 deadline. china is critical because they are the outlet for 50% of the production. they are on course to take 750,000 barrels a day. in april. they are a key end user. thinking back to my own days working as a supply executive, it's kind of like you do not take orders from your boss or your analysts. if, trump is sending your crude oil policy, i sense china may take exception to this. in the past, they have managed to circumvent sanctions. their response is critical, because if they don't comply with this, this could set the stage for others to follow. output, noro tolerance, this mike pompeo saying zero cuts across the state i would have to that is going to be in a possible target. there is going to be some oil that flows under the radar. it is not going to be zero. >> you mentioned 75, 76 might be
the upside. do you think we have found the floor at 70? john: we have a very solid floor at 70. the nightmare scenario, the revolutionary guard in this morning stating we can't move oil through the streets we may shut the straits. then this market is off to the races. we could see as high as 90 if that. scenario comes about >> that cannot be good news for india. john driscoll, director of jtd energy resources. on india, we are counting down about an hour away from open up the markets there. davina, equity took a breather. you have costlier oil. what is on the docket for today? >> yesterday was the high crude oil prices. they fell more than 1%.
gas marketoil and that fell 3% in yesterday's session. and banks, with in the banks, the private sector banks were looking stretched over the last days. some profit-taking on the private sector banks. banks, which is a high rate on the index and had good numbers, have started to peter off. this is something that is not a one-day event. we will see some lingering effects. slight bit of a bounce back. the overall sentiment looks to be more skeptical. and more to the market commentary suggests we could see some bit of a gap around these levels. out. got a big -- buy how has the stock reacted to that? devina: the reaction is expected
to be positive. the majority stake in the bank, 51%. that new figure off another 26%. they are going to have to pay slightly more. 139 rupees per-share. 134.are paying about the next 26% comes in at 139%> . this is an exit for the promoter of essel. this raises questions as to what is the business and confidence here between blackstone and esse l. talkinge getting, we're to the management and getting a sense from them from how big this is. reaction is suspected to be positive. >> thank you. from him by. -- from mumbia. grab says it is targeting several acquisitions.
>> welcome back. you're watching bloomberg markets. southeast aisia's largest says itling company will double down and in tunisia as it looks to races $.5 billion in a funding round from softbank. >> the cofounder told us how she plans to use the money. >> we've seen tremendous growth and interest from global, regional partners. we said this is time for us to reinvest back into southeast asia going from taking transportation from zero to the leading ride hailing platform and moving into -- payments and
more. this additional $6.5 billion is going to be used for possibly reinvesting back. and financial services and doubling down in our largest and fastest-growing markets in asia. >> i want to talk about the regional breakdown you are seeing. what is the evidence of traction in indonesia, for example? >> for example, needs your new -- in indonesia we are already part of the largest payment wallet. food has been growing to modestly. last year alone, we grew 10 times there. hailing we are the largest player with 70% market share. >> you doubled revenue in 2018. did you surpass $1 billion in revenue? >> we did. we have a history and executing on our plans well. myt month, anthony, cofounder was in tokyo. wasfact that we
recommitting $1.5 billion more as part of this round. >> right. he said he wanted to provide unlimited support to power your growth. does that mean you have unlimited access to capital? he is not going to give you the next $2 billion? >> he has already contributed as part of softbank. we've had a long-standing relationship with him since about 2014. the reason why this is important is because it shows that we continue to be able to execute well. as you know, he has big ambitious plans. we do, too. >> you said you are on track to double your 2018 and 2019. is that still the case? >> we are looking for all source of topline growth. by the end of the year we expect to be four times larger than the nearest alternative in the region.
we are also looking to use that investment money for at least six investments or acquisitions, because we are looking for partners to help us accelerate growth. >> but are they making money? grab's cofounder in an exclusive interview. >> and we mentioned about grab. they also have a tie up with one company we will talk to in the next hour. the online insurance company in china. chu. talk to wayne they are launching insurance services with grab. when it comes to the virtual banking licenses in hong kong are one of the few to get that. khan.utlook here for zhon >> let's start things off with samsung. the company is delaying the launch of its revolutionary folding smartphone. amid reports of failing screens and other faults.
the galaxy full was to have been rolled out in the u.s. on friday but that has now been postponed. several publications including bloomberg have reported a range of problem with the test version of the $2000 device after only days of use. >> the financial times says barclays is trying to cut investment banker bonuses. the division is underperforming. awards for the first quarter may be cut by double digits from a year earlier and payments will be more closely tied to performance. the move is part of efforts to do with pressure from activist investor edward bramson before the bank's upcoming agm. >> warren buffett backed kraft heinz is replacing it ceo in the hopes of resolving a slump that followed a failed bid -- for u nilever. it named miguel patrizio to heinz him who led kraft since 2013.
he was the chief marketing officer for several years and will take on the role at kraft heinz onto life when -- on july 1. >> we are following the latest indictment against carlos ghosn. inmay not only keep him detention but it serves to undermine his argument that he is a victim of corporate intrigue. >> our chief north asia correspondent stephen engle has been on the story from the beginning. steve, what is different about these new sets of allegations? stephen: well, this is another case of how the prosecution, with of course, what lawyers for carlos ghosn say, is the of buildingsan, but the case. he was arrested and held in detention for those first 108 days before he got bail. he's now back in jail. in those first opening days, the initial charges were really fairly minor compared to what is coming out now. financial crimes, perhaps misreporting or underreporting getting, but now we're
into. more mean potatoes of the allegations from the prosecution that is these tens of millions of dollars allegedly transferred from this reserve fund at nissan that carlos ghosn had control over. to what was claims to be a distributor in oman for marketing expenses, but then we've learned again through sources that money was transferred onto another company in lebanon, which was then sent on to a company that is managed a perhaps even controlled by carlos ghosn's son, anthony. shogun enterprises. they are connecting the dots back to carlos ghosn saying he used this slush fund to basically, allegedly embezzled money from nissan. >> so, the prosecutors are building their case no. what about carlos ghosn's
lawyers? have they changed the way they are responded to these new allegations? ephen: that is what has been so fascinating, the flip-flopping of the narrative. the initial days it was dominated by the prosecution and nissan. then carlos ghosn was released on bail. he had his moment to say that this was a conspiracy against him. etc. but now the narrative is coming back and we're hearing as well that carlos ghosn is not talking to prosecutors in detention. they are coming up with a new strategy to deal with the latest allegations but carlos ghosn is denying all allegations. >> thank you. stephen engle joining us out of beijing. plenty more ahead including battle of the sharks. ♪
india right now. if you look at the chart, we are talking about foreign investments in two asset classes, equity and bonds. theblue bar shows that investment in equities with moving from great gusto but you see on the other hand in bonds, the foreign investors are dumping bonds. there was $7 billion in equities, the highest and the economy.n any you have $1.2 billion of outflows. the primary reason why bonds are not excited is because of the surging oil prices. that is creating a lot of uncertainty in their minds and asy think -- tit hasn't been dovish as we are expecting. we see who gets it right, the equity bulls or the bond bears. >> the oil bulls have it their way, then -- >> that could change everything.
>> dan, help enlighten us on that last bit. talk to us about the effect h ere. >> the oil market is abuzz with iraninann sanction news. what does it mean for the future of opec? have arabia and uae promised donald trump will make an any gap that irani supply shortages mean. if you look at the combination of u.s. production boosted by this huge shale boom, along with saudi arabia and the uae, those three together already combined to equal opec's production. be looking at a changing of the guard in terms of global oil market leadership with a possible new new opec headed by donald trump himself. >> wow. >> wow. >> they're both really good. >> go ahead. >> i think, oh, gosh.
i'm going to go with dan's. just because i like this whole concept of a new ne w opec. it use of the opec plus with russia and now this is a new concept. a lot of traders in the oil markets are being confounded by. >> that's a group to watch. dan, by this much i'm giving it to you today. congratulations as well. >> it was a really good chart. the whole oil story kind of too k over. >> great sports. thank you so much for coming on the program. china. opens up as with india this is bloomberg. ♪
>> i'm emily in san francisco. this is "bloomberg technology." tesla unveils its next generation of self-driving technology with c.e.o. elon musk calling it, quote, the best ship in the world. but will it live up to the hype on the road? plus, samsung has delayed the launch of its first foreheadable smartphone after reports of its first screen failures. and our exclusive conversation. can the company live up to its own aspirations to become the