tv Bloomberg Daybreak Australia Bloomberg July 23, 2019 6:00pm-7:00pm EDT
so why didn't we do this earlier? life line screening. the power of prevention. call now to learn more. paul: welcome to daybreak australia. i'm paul allen. shery: i'm shery ahn. sophie: i'm sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: the top stories we are covering in the next hour. trade talks resume next week with face-to-face meetings in shanghai. the first of negotiation since may. again, cuts forecasts warning of policy missteps on trade and brexit. boris johnson heads to downing
street, which he must avoid a damaging no deal divorce at all costs. shery: later in bloomberg technology global link, we will talk about the justice department investigation into whether big tech has been stifling competition. first, that's get you started with a quick check of how the markets closed tuesday session in the u.s. the s&p 500 closed at the highest level in more than a week, up 7/10 of 1%. rising for a second consecutive session. we have some strong earnings coming from the likes of coca-cola, united technologies. not to mention lockheed martin. we also had investor confidence that a deal would be struck when it comes to suspending the u.s. debt ceiling. in the afternoon session, we got news that ambassador lighthizer could be going to china next week for the first high-level trade negotiations since may so that really spurred investor confidence. the dow gaining 7/10 of 1%.
almost every sector in the green in the s&p 500 and hit higher by industrials and materials. the nasdaq gained 6/10 of 1%. although in the after hours session, u.s. futures down 1/10 of 1% so we will see how we are setting up her asia. sophie: asian stocks are eyeing a mixed start, while initial currencies will have a stronger dollar to contend with. cost speed resilience will be tested amid a murky outlook for the tech heavy economy. cracks in the iron ore rally, surging oil and the imf cutting its global growth forecast. highlights include canon, lg and advances for the japanese equipment maker after texas delivered better than forecast results. we have mitsubishi motors which will offer more clues on the health of the tech industry amid reports that nissan plans to cut more jobs globally. paul: thanks very much.
let's chicken on the first word news. ritika: big tech faces more investigation with the u.s. justice department looking at whether companies are harming competition. the antitrust division will address concerns that consumers and businesses have expressed about search, social media and on slight -- online retails. the latest sign of official scrutiny by washington. facebook, amazon and google parent alphabet fell. suggesting policy missteps on trade talks and brexit could derail a projected rebound. the fund expects the world economy to expand 3.2% this year, slightly more next year. about 1/10 of a percent down from its forecast in april. that lowers expectations from what what already the lowest since the financial crisis. the bank of japan is likely to lower its forecast for the year. they also downgrade some of its
growth projections when policymakers meet next week. the bank will cut its out -- inflation outlook to 1.1% for the year through march to reflect the impact of lower mobile phone charges. growth forecast may be ranging due to global uncertainties. british business is morning incoming prime minister boris johnson that he must avoid leaving the european union without a deal. johnson goes to downing street reiterating his pledge to leave the eu by the end of october, whether or not an agreement is in place. the confederation of british industry says that would be hugely worrying and threatens investment and jobs. momenty, at this pivotal in our history, we again have to reconcile two steps of incidents oftween deep desire friendship and free trade and mutual support, and our european
partners. and the simultaneous desire, equally deep and heartfelt, for democratic self-government. ritika: global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. all right, thank you very much. senior u.s. trade officials on a flight to china on monday for the first time for face-to-face talks since may. robert lighthizer and his team will be in shanghai through wednesday. talks are excited to be a broad review of the issues dividing the u.s. and china. joe. go to washington with any reason for cautious optimism? joe: it would have to be very cautious. this is the first breakthrough since president trump and president xi announced this
temporary truce from the trade war last month of the g20 meetings. but the administration officials have been really cautioning not to expect a whole lot. commerce secretary wilbur ross told bloomberg today that it could take some time to get to some of the issues the issues one dealt with. previous talks have dealt with some of the issues such as dealing with huawei, agricultural purchases but they have not really addressed some of the structural issues that are the biggest things on the u.s. list of demands to get a fuller trade deal with china. there has been very little movement up until now and any sign of, tangible signs of how the truce is going to play out. this is something of a breakthrough but it is one that does not have any quick resolution. shery: when it comes to the ip theft front, we had more clarity
coming from the fbi director christopher wray, speaking to the senate judiciary committee, saying that china is trying to steal its way to economic dominance. take a listen. >> when i say china, want to be clear, this is not about the chinese people as a whole and not about chinese-americans in this country. countryis about is a that is in a variety of ways through the chinese government, not just government officials but private sector entities, nontraditional collectors to steal their way up the economic ladder at our expense. shery: how is he backing his claims? joe: he set about 1000 counterintelligence investigations with intellectual theft. both of those lead back to china. onlyid this includes not the usual espionage tactics but hacking, as well as the use of
chinese scholars delivering a pipeline of information back to china. called it the biggest counterintelligence threat the u.s. currently faces that is ongoing and also something at the root of that is be between the u.s. and china on trade. president trump has called for china to curtail intellectual property theft when it deals with u.s. companies. and what the fbi director is saying that this goes beyond just companies operating in china and having to turn over some information about their proprietary software or other intellectual property that there is actual a fuller and more theft going on that the u.s. wants to address. paul: silicon valley does not have too many friends in
washington these days and that does not look like it is going to change anytime soon. the doj hosting a new antitrust review into those big tech companies. what do we know about it? joe: right now, this is announced as a review to examine whether or not they are antitrust issues that need to be addressed. this mostly affects google, facebook, amazon and to some extent, apple. all four of those companies have come under fire from both parties in washington. there are concerns about the misuse of user data, the collection of data. failure in some cases in terms of facebook monitoring material on their website. that affects google as well. amongis also some concern lawmakers in both parties about whether they are anticompetitive . elizabeth warren, a candidate for the democratic residential
nomination, has called for breaking the companies up and unwinding some of the deals they have had in the past such as amazon's purchase of whole foods, that they are anticompetitive. paul: bloomberg congress editor joe sobczyk. thank you for joining us. we will have more on the doj probe with emily chang in about 10 minutes. shery: next, we will discuss the latest hope for a trade deal that gives wealth management president aaron gibbs. this is bloomberg. ♪
shery: back to the u.s. markets. earnings help drive the s&p 500 back above 3000 by the latest news on trade talks extended those gains. after hours, stocks continue to make big moves on earnings. the antitrust probe into tech. su keenan joins us with more. there was a session in the morning but we got the trade
news in the afternoon, we just kept moving higher. su: one to punch for the bulls with strong earnings and this optimistic news on the trade talks. let's go to the market snapshot. what you will notice is bonds fell, the dollar rose but look at material stocks. that was the strongest part of the s&p 500 that also is the part that have been the bullseye of these tariffs. take a look at some of the big movers and you will notice really big moves here. hasbro flowing it away on earnings. coca-cola hitting the highest level since we have seen, since the 1960's since we started records. a real turnaround for the company and very strong sales in china. pulte is a disappointment. reality holdings deal with amazon to sell with its interstate -- internet marketplace affecting the rivals as well. let's go to the bloomberg. coca-cola doing really well in its sales.
even the ceo says he came into the quarter concerned, and even he was impressed at some of the results. again, china's strength drove the quarterly earnings as well the los sugar drinks. after hours, we talked about this report of an antitrust department of justice probe and that is hitting these tech giants hard. twitter was down significantly more. amazon, facebook, apple were also seeing some other stocks down. shery: thank you so much with a snapshot of the markets. now let's get investors take on the development. aaron gibbs joins us here in new york. great to have you with us. we have seen the move higher after the trade news that bloomberg reported. still, it was not a spectacular move. is there some trade war complacency now? has everything already been priced in? erin: i think the idea there are
more talks. until we actually get a final result, i think wall street is still a little hesitant so i don't see any real big moves unless there is a really, really significant announcement of either a collapse of any talks or final resolution. right now, think the positive very ongoing talks, yes, much baked into the market. shery: you say you like small caps and mid-caps. this chart showing that so far, small caps have lacked the broader s&p 500, the most in 10 years. what about specific sectors when it comes to the u.s. because most saw the concerns after hours with these tech giants as well? are there parts of the market you should be more cautious about? erin: any of these mega caps are really the ones with the high-growth names which are very highly valued. as we have seen with some of the tech stocks, if there is any negative news, they tend to get
hit. i advise investors to focus more on your core stocks that have both growth and value components that can participate in the upside, but really are not priced for production. with the smaller mid-caps, the reason i like them is they have underperformed. it says we are on sale, buy us. this is looking more one year out. this is like a one-week trade but this is where we see some value in the market out there. paul: when the clock struck 2:00 today in new york, we saw quite a risk on rally with some optimism around trade. do you share that optimism or are you a little bit cautious? erin: i'm little more cautious. i am happy about the positive earnings report we have seen this week. that is making me a lot happier, but any news around the trade smaller going to have a intraday move. i think overall, as long as we are heading in the right
direction. nobody wants 25% tariffs. that is a positive in the right direction. paul: in terms of earnings, to what degree so far do you feel like things have been outperforming? expectations were not that high heading in. are you encouraged by what you have been seeing so far and what do you see for the second half? erin: just in the second quarter, we actually had -2% expectations. we are now about zero. we are in the positive territory. that is a big move in just three weeks. normally, you see revisions going upwards. you don't normally see 2%, 3% change this early in the earnings season. this is very positive for me. the guidance is definitely getting better for the second half and pushing forward to even 2020. not quite as strong as what we have seen in the second quarter. backwards looking. i would like to see bigger movement forward but it is
definitely reassuring that second quarter is not the disaster, the profit contraction we thought it is going to be. it is going to be your mediocre, low growth environment. shery: one of those earnings results, texas instruments seems to be pretty well received. when it comes to the broader chipmakers, this chart on the bloomberg showing help the philadelphia semiconductor index is at the highest level when it comes the valuation in 10 years. given how much you like value. what do you think of chips? erin: semis have a massive exposure to trade deals. they are one of the highest exposures. they really trade on how the trade talks are going day-to-day. we still know that demand has been somewhat depressed and we are looking at earnings contractions but it looks like they have come out of the bottom when it comes to demand. they are recovering from the bitcoin climate. and, we are seeing improved global outlook. for me, i think as long as the
trade talks are positive, they are in a good place. i like the semis. they are really what i consider more of a forward indicator of global growth because they are such global companies. shery: and potentially what will happen with those trade tensions as well. when it comes to banks, most of the big banks are already done, but there seems to be a cohesive narrative when it came to the consumer story. whether citigroup or jp morgan. do you buy into those calls about being the health of the american consumer to invest there? erin: you certainly saw a big difference between the investment banks and consumer banks. that was a similar story to what we had in the first quarter. i think it is about consumer confidence. consumers are willing to borrow. i don't necessarily see it is a huge indicator. it is more of a confirmation of the trend we have seen the last two quarters. it's obviously more challenging environment for those banks that are really focused on interest
and margins versus lending consumers. shery: especially with those fed rate cuts potentially coming as early as this month. erin, thank you so much for that. erin gibbs, president and cio of gibbs wealth management. you can get a roundup of the stories you need to know in today's edition of daybreak. bloomberg subscribers, go to your terminals. it is also available on mobile. you can customize your settings so you only get the news on the industries and assets that you care about. this is bloomberg. ♪
components in the upcoming mac pro desktop and plans to relocate production from texas to china. apple does not specifically mention the mac pro, but the parts and dimensions referenced resemble it. the president will show relief if duties would cause severe economic harm. accelerating revenue growth despite the ban in the u.s. up 30% in the first half after managing to maintain critical supplies to maintain production. revenue growth debt is down from 38% in the first quarter. sources say huawei is relieved the situation is not worse. softbank is said to be close to be nancy a second tech investment fund, modeled on the $100 -- $100 billion vision fund. it could be launched this week. the uae's investment fund among to be the backers.
softbank working with goldman sachs and cantor fitzgerald to raise money and support. those are the top global tech stories we are watching. shery: more trouble for big tex. as we told you earlier, the u.s. justice department is investigating whether technology giants such as facebook, amazon, alphabet are harming competition. techtening the scrutiny on companies in washington. ben covers the tech lobby in washington. how was this a change from how washington has been approaching tech antitrust so far? ben: there have been a series of probes big tech is already facing. the federal trade commission, which has some antitrust authority, is also doing its own broad task force. there is that but also doj and ftc have split up specific company probes. doj is looking at google and apple. ftc is looking at facebook and
amazon. you are showing footage now from the house antitrust probe. the companies faced those. what is most interesting here and what it means for facebook and amazon. they thought they were under the authority of the ftc. it is a question for them, are they facing a probe from the doj? it looks like the answer may be in a high-level way, yes. that is a two agency probe, congressional probe and a lot of pressure from the white house. emily: that said, president have has been -- you lawmakers on both sides of the aisle not happy with tech. you have federal agencies across the board looking at big tech. what does the rest of the scrutiny signal? ben: i think it signals the days in which these tech companies are the darlings of washington, those are long gone. i think the other thing these companies are looking over their shoulder for is where is the next attack going to come from
and how can these kinds of scrutiny, these kinds of probes actually start to work together? when you have the congressional probe, you can have congress look into oversight of the agencies. the agencies may look into information that comes out in that congressional probe. they become a somewhat self reinforcing. information is traded, companies are distracted, and it makes it easier to do any one thing that policymakers may ultimately decide is the most important thing to do in that space. also, it makes them less popular, never less popular in washington and ever less popular for people at home who may see these companies. it is a lot of risk for them. emily: you broke out in your reporting how much these companies are now spending on lobbying. now hitting record levels. tell us how the companies are reacting. ben: lobbying is the name of the game. the antitrust scrutiny is ramping up. doj, therobes, the
house hearings -- these have come up in the last quarter. during that quarter, we saw both facebook and amazon setting record lobbying totals. more than $4 million just in the quarter. they were working on issues not just antitrust, but they were working on libra. they were working on the many issues amazon is working on as well. it is a broad swath of scrutiny that they are really facing here and doing as they can to confront this. shery: we have seen their executives being grilled last week in congress. are they going to take action? ben: that is really the question. congress is going to ramp up that pressure on the executives. they may want to call them back. i think it is important to say we don't see washington changing the business models here. that, i think, is going to be the next hill they have to climb. paul: ben brody in washington. thanks for joining us.
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paul: on the bloomberg terminal at the moment -- guidance from australian gold minor evolution mining. 90,000 ounces. a decline of a little more than 80%. evolution reaffirming a full 753,0009 gold output of ounces. that is in line with guidance. cost issues for evolution in fiscal year 2019. -- an ounce.d we are learning these june quarter figures to come up before the runoff in the price
of gold. for more on the resource companies to watch in sydney, let's go to sophie kamaruddin in hong kong. sophie: a few other companies report. 25% year on year rise for gold production in the fourth quarter, and 3.6% rise in copper. cap are output at 70,000 tons, gold at 42,000 ounces. outlooks andlower sales, but increasing costs for offset commodity prices. ocobre, a bump in the road. a 4% drop in outfits in the prior corresponding period. we are waiting on fourth quarter output reports as well. shery: thank you so much for that. let's get the first word news now. ritika: thanks. reports from reuters says iran will secure the strait to
prevent what it calls disturbances to oil shipping. the report finds comment made by iran's deputy foreign minister during a conversation with the french foreign minister. the u.s. has a battle group in the region and has claimed iran is behind apparent attacks on vessels. it accounts for almost half of global oil shipping. the u.s. is sanctioning a chinese state oil trader for violating restrictions on food a late attempt to isolate the islamic republic and cut off one of its biggest buyers. it has links to the chinese military and has history of accepting iranian oil. the sanctions come is the u.s. and china edge back trade talks. senior u.s. trade officials on the flight to china on monday for the first high-level face-to-face talks since may. robert lighthizer and his team will be in shanghai through wednesday.
the talks are excited to be a broad review of the issues dividing the u.s. and china. the two sides have spoken by phone recently, after president from and xi jinping agreed to a tentative truce. next year's tokyo olympics are already setting records in ad s ales. nbc says that expect to beat all previous sales revenues and is already on course to surpass the record-breaking $1.2 billion of commercial spots it sold in the 2016 games. the tokyo time zone is favorable for advertisers, as morning events will air live in prime time in the u.s. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. paul: all right, thanks very much. let's get a quick check of how markets are shaping up in the asia-pacific after we saw some
pretty decent gains in u.s. equities markets. nikkei futures looking kind of flat. in sydney, futures pointing higher by half of 1%. over in new zealand, trading has been underway for a little over 30 minutes time, 1/5 of 1%. we are waiting on trade balance numbers from new zealand. let's get some more on what we should be watching as trading gets underway in asia with cross assets editor andreea papuc. track?ian stocks andreea: today, we are probably looking at more sentiment in asia. it is all about earnings and that is going to be the focus as the season picks up pace, certainly ahead of the fed next week. investors really want to see if these prolonged trade dispute is showing an company's bottom line. last night from the u.s., we got
some decent numbers that it lifted the market and gives support to asia. on u.s. earnings, we have a chart that shows equity still looks appealing relative to treasuries. that is something that is helping that market. the s&p earnings yield versus treasury remains above the two-year average. there's a lot of cash on the sideline. if we get positive news on trade and it looks like there might be something there, i think investors will go back into the market. certainly, a very close look at u.s. earnings and how that impacts the s&p 500 and how that would impact asian stocks. that would probably be the key driver today, certainly ahead of that fed meeting next week. the markets have been surprisingly resilient in asia,
south korea, despite the dismal economic numbers we have seen out of that market for a few months already. why is that? andreea: that is right. korea is an interesting market. it is very export dependent. it has not been hit with the exports thinking. there is also the fresh trade spat with japan. japan imposing some restrictions on exports. the market has remained resilient. however, investors seem to be somewhat divided on where it will go from here. we have goldman sachs actually saying the work is behind. they have upgraded korea but on the other hand, ubs is saying the u.s.-china trade dispute and this japan trade spat is not reflected in prices and in earnings just yet. tomorrow, we have second-quarter growth which will be very
interesting to watch, to give investors a clue where to take the korean market going forward. shery: thank you so much for that. you can follow her charts on the gtv go library on the bloomberg. central bankers worst fears may be coming true. the imf is cutting its global growth forecast again, warning of the damage from trade tensions and the threat posed by a note due brexit. our global economics editor kathleen hays is here with more. steps on both mid trade and brexit. what are they saying? kathleen: they are worried about the big risk, that they will be handled incorrectly and cause the slowing economy to slow down even sharply. the imf issuing a revised forecast for what it issued in april when it already cut the global growth forecast. it is not to recession levels yet, but they are talking about
adverse developments. not just the u.s.-china trade, but u.s. auto tariffs. that can weaken investment, hit the global supply chains and really hit growth. let's listen to what the chief economist from the imf told bloomberg television earlier. >> this sluggishness in global growth is to some extent self-inflicted. it is an outcome of prolonged uncertainty on the trade front, escalating tensions on technology. the prolonged uncertainty with brexit. these factors are weighing on growth. kathleen: if we jump into the bloomberg library, we look at a chart that shows the direction, if you look at the overall growth forecast from the imf. if you look at the forecast for developing nations, for emerging-market nations. 2019, 2019, 2019. that is the ems, that is the global forecast.
everywhere you look, it is turning lower. in fact, china's gdp was cut to a forecast of 6.2%. in 2020, it is supposed to be down to 6.0%. that is not such a stretch because of the latest quarter. the u.s. oddly enough had a forecast revised higher to over 2% in 2019. you don't see the distress. a lot of this is hitting emerging markets hardest. when it comes to central banks, we just heard the head of bank of japan worry about uncertainties over global growth, uncertainties over all of these tensions kind of having a heightened impact now. that is a week or so before boj meets. for the fed, a place perfectly into their new mantra. the domestic economy in the u.s. looks solid, jobs are growing. things are not too bad. it is the slowdown overseas.
the global growth picture has the fed worried and has them stressing that they have to cut rates. and they have to do it soon. the: ok, kathleen, i guess question then is what will it mean for the global bond market? are we getting lower with yields? kathleen: that appears to be the consensus among bond bulls. we know global quantitative tightening, reducing those balance sheets, stop buying bonds -- that is coming to an end because central banks around the world are all getting in that global march towards lower rates. the head of the reserve is excited to jump on as well. europe is getting ready to see its first negative yield on 10 year corporate bonds ever. this is one more sign that with the central banks moving in, concerned about growth, that seems to be the direction for bonds. although, shery, if we do get some progress on trade, all of a
sudden -- that start looking up and stocks rally and confidence comes back, this could be a big directional change for bonds as well. we shall see because it may take more than that to turn the tide. shery: thank you so much for that. our global economics and policy editor. coming up next, british business as a warning for boris johnson. we will discuss challenges ahead for the new prime minister and the u.k. economy. this is bloomberg. ♪
johnson to avoid at all costs a no deal brexit. johnson will take over a country facing significant up people's as he looks to deliver on his campaign promises. guy johnson details the enormous challenges that lie ahead. guy: the challenges he faces are absolutely enormous. wednesday, we will see him make a speech on the steps of 10 downing street which will lay out his priority. he will then name his cabinet. that government will face some very difficult challenges ahead. johnson has promised to deliver brexit within 100 days. he has promised to unite the party but also the country. on the forefront, he has to deal with the issue of iran. many tall challenges lie ahead. he has to do all of this with a parliamentary majority of only two. that is likely to fall to maybe only one over the course of the summer. he has told the conservative party he does not want a general election yet.
he would like the general election potentially after he has delivered upon brexit. that may not be. the british economy is deteriorating and delivering brexit with a deal looks very challenging. if he forces the issue of a no deal brexit, he may see defections from his party to the opposition. that may force a general election. at the moment, the polls in the united kingdom are very -- the british prime minister boris johnson may face a very difficult few months ahead. guy johnson, bloomberg, london. paul: that is our bloomberg tv anchor guy johnson in london. to get you across some data out of new zealand. trade figures for the month of june, a little bit unexpected. $365 million surplus for the month. over $5 a shade billion. the trade balance year to date
in negative territory. not much reaction to the kiwi dollar. let's get back to the other side of the world. our next guest describes boris johnson as a political veggie might, saying he derides those, but equally appalls who wants politicians to abide by basic rentable. the politics expert at the university of sydney and joins us now. thank you for joining us. force johnson essentially has exactly the same cast that theresa may had. the eu still unwilling to negotiate. can he do anything different like? simon: that is the $64,000 question. expectations have been raised because during the campaign, he did promise brexit -- britain would exit october 31. the question is how is he going to overcome eu on the one hand and the house of commons on the other without disappointing some
of the key supporters, in particular the european research group, the hard brexit group within the conservative party who have been his main supporters within that leadership campaign. it is, as guy said, a very difficult ask. there is a part of me that says, well, wouldn't you want to call an election now? a honeymoon period. wouldn't he want to cast that in politically before it all goes astray? paul: theresa may try that and it did not go so well. the may approach of appeasement did not really work. boris johnson does have a couple of radical options in front of him. he can ram this through like a dictator. or you can run down the clock and get to october 31 with nothing happening in that is it. do you see either of those as a likely scenario? simon: we have four or five scenarios. i believe those two scenarios are alive. parliament has to be considered the most extreme option.
the backlash you are going to get from his own parliamentary party. upy are going to be joined thinking with the labour party and other parts of parliament to make sure that really looks like an unacceptable option but we are not going to rule that out. the other option is basically running the clock out, i think it will be difficult for him as well because the house of commons is aligned to what boris johnson represents, what he has promised. they will do everything they can to stop him. it is going to be lively. it is difficult for him to find a solution, obviously, which is why i think a lot of the roads lead to inaction. shery: boris johnson quickly rolled out the early general election, but as we have talked about this before, even with the party on board, the majority is fragile. is it inevitable that will be an election sooner than later? simon: i do see in election
before christmas as very likely. you can put that at percent. whether he calls a snap election, we just heard he rules that out. we know what boris johnson is like. what he says on a wednesday, he might change his mind by friday afternoon. we have to be very wary of any summary judgments at the moment. his majority is absolutely razor thin. likely next week with a by election, he will be down two. he's got no slack, nothing to work with. as we know, this is real opposition within his own party going forward with a no deal brexit. shery: in the meantime, we have seen president trump happy with boris johnson getting elected. he has said he will be great. take a listen first. president trump: i have a really good man who is going to be the prime minister of the u.k. now. boris johnson. good man.
he is tough and he is smart. shery: there is a closer relationship with the u.s. trump administration help oris johnson? simon: well, it will not help for a while. what is going on is trump is looking for an ally in his own adventures to come. goinge the iran situation up quite nicely in the middle east at the moment. what you are thinking about is a access, getting ready for a military intervention. i'm sure the phone lines are hot between the white house and never 10 on that issue, but also a meeting of minds. johnson is a guy whose non-conviction politician, broad conservative. picking up much of the slack that donald trump has been doing in the u.s. for the last two to three years. paul: let's come back to that election scenario that you see being the most likely. like i say, theresa may try to cash in on the honeymoon period
and it backfired. is there a chance it would be worse for boris johnson? simon: this is kind of the issue he has to grapple with. if you goes early, he canceled out nigel farage. if he leaves it too long, and it does not look like the no deal is going to happen by october 31, maybe he is adding fuel to the brexit party fire. i think there is a careful calculation to be made by johnson allies. that is why i am thinking an earlier election rather than a later one, do not rule it out. i do think farage is seen as the main opposition. brexit party running at 22% which is not dissimilar to the conservative party. what all conservative mps are hoping that with johnson arriving, he cancels out nigel farage and that will get them their seats back whenever the election is held. paul: it promises to be in exciting second half of the year
shery: welcome back. alibaba says u.s. merchants are able to sell on its wholesale e platform. alibaba cells to 10 million companies around the world, a third of them in america. up until now, u.s. companies can only buy from the site. alibaba's head of north america b2b john caplan explains what it means. john: today is a great day for u.s. small businesses. manufacturers and wholesalers conjoint alibaba.com today to sell to the world. the platform is open to enable those businesses reach 190 countries, four corners of the globe where we have 4 million business buyers. >> how big is the business expected to be? john: $23.9 trillion.
it is six times larger than the b2c market. >> i did not realize that. b2b is many times larger than the b2x. john: it is the largest b2b marketplace on the planet. we have built simple to use tools for small businesses to have a global storefront, to market to customers and then to reach deep into the globe so they can sell their goods. >> besides being right here on bloomberg. how do i know that if i am a u.s. company that i can now sell into alibaba.com? john: one third of the demand, the buyers on alibaba are here in the u.s.. those folks, we have been doing business with for 20 years since jack founded the company. now we are saying you have been sourcing on the platform, now you can sell to the world. >> any plans to go b2c? john: we are entirely focused on the b2b market. $23.9 trillion.
alibaba.com is purpose built to help small businesses sell to the world. we are focused on helping digitize small businesses around the globe. one interesting statistic -- 70% of u.s. small business is do not sell online today. this market is not yet digitized. so, we have created a simple to use tools to help small businesses get online. >> it is hard to say the word competition and alibaba in the same sentence, but how do you compete in other areas? john: it is an interesting space because the value chain for small businesses, the value chain for b2b is so complex that no one has digitized it and to end other than alibaba.com. we have created a platform that enables a small business to message, talk to come and negotiate, pay, handle the logistics for orders and to end. we are in a class by ourselves. >> how does this read against the u.s.-china trade tensions? john: our business has seen
triple digit growth. this plan has been in the works for many years. 2017 andalibaba.com in the transformation of the business from yellow page business to a procurement platform is now adding the globalized supplied to the platform. paul: let's get a quick check now of the latest business flash headlines. shares enjoyed a much-needed boost after china strengthened a stake in the company's. the automotive group is buying a 5% stake, cementing a more than 10 year alliance between the two auto giants. shery: nissan is planning to cut 5000 more jobs around the world. that would be on top of the 4800 dismissals announced in may and rep is it more than 7% of nissan's total workforce. nissan will rip -- will reveal the plan thursday. paul: we have a big guest later today.
i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass.
>> good morning. i am paul allen. we are under an hour in the australian market open. flex i am shery and -- >> i am shery ahn. >> i am sophie kamaruddin in hong kong. looking to "daybreak asia." "daybreak asia." to resumealks set next week. face to face readings will be the first direct negotiations since may.
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