tv First Up With Angie Lau Bloomberg April 19, 2015 7:00pm-9:01pm EDT
the united states and good morning to you with the rest of you in asia. coming to you from bloomberg's headquarters here in on -- bloomberg's asian headquarters in hong kong. areew zealand where we seeing equity selloff 6/10 to 1%. the strengthening spot is at $.76 after the largest rrr cut for chinese banks, injecting liquidity into that nation. this is new zealand's biggest trading partner. we got the latest inflation figures a few minutes ago. analysts were expecting a 0.2% drop on the year. 0.1% compared to an estimated 0.2% rise. we are seeing a slowing inflation rate coming out of new zealand. we are counting down to the opens in australia. ons is the view from japan
friday. doubt more than 1%. giving away the games of the week. futures in chicago pointing to a lower open. dollar yen right now is a two-month high against the u.s. dollar. into stimulus mode, cutting banks by the most since the financial crisis. we have christine watching that in beijing. in somethis puts china where thesition here european central bank and japan is also easing china following -- easing. china following along. christine: this is the second time the central bank has cut the rate this year on top of the two rate cut that to rate cuts.
still pretty high by global standards. of course $200 billion and the market. this cut is much bigger than what most people expected, although most people did expect racial cuts. -- expect cuts. our banks going to use this extra liquidity to lend to private businesses and small and medium-sized businesses? right now with economic slowdown, many find risks for businesses. this may not flow into the economy as much as bank wants to see. how much of this liquidity is going to end up stoking the already red-hot market? those are still some questions that need to be answered. china has the tools to support
growth and they will use it if needed. these moves may actually be more stabilizing at the moment, rather than actually stimulating the economy. angie: what about home prices? are we seeing a turning point here? christine: we did see new in 49 out of 17 cities tracked by the government. new home sell to 66 cities. we are seeing an improvement in the slide of prices. certainly some of beijing's policies are showing some results. central banks cutting rates in november last year. there seems to be much confidence coming into the market. there is still plenty of excess inventory. developers need to get rid of it in case the real sector -- get
rid of it so real growth in the sector can occur. more pricing power coming back to the market. new-home sales and prices still falling. housing prices fell 7% in the first quarter. 23% from a year ago. still a big jump to a real recovery. it will be a while before we see if things have turned a corner. angie: thank you for that. china sends a jolting reminder of sir isaac newton's more than 400-year-old observation, what goes up must come down. cautioning investors that stock prices don't go up forever. david is here. they really don't. david: you have 452, the number of days without seeing a
significant correction. late on friday after the markets brother sent out two things. down one they shut source of borrowing to buy out equities. basically clamping down on another avenue that people can use to leverage up. him --talking about the about the umbrella trust. it basically allowed investors previously to take on a debt and fuel more returns. that works out as the market continues to go up area as the market goes down it may be a problem. they are making easier to get against a falling market they are making it easier to take short positions. they've expanded the number of stocks that you can short. and hundred 8%.
want to inegulars do -- do want to educate investor. not only do you have the amount of debt that is being used to , this year we saw an unprecedented number of new brokerage accounts. there are a lot of newbies out there wanting to ride this wave and she don't exactly know what your doing it could be painful. angie: it is arguable a lot of these retail investors are less sophisticated is a lot of the investors. how are things shaping up today in china? it happened on friday after the markets closed. i was taking a look at the notes this morning. could see a bit of its thing when markets open up today in hong kong. there is clearly a loss in
momentum when you take a look at what happened. listed in the u.s.. plus you look at the futures right now. the highs of the day we were of much higher. down 1.2%. futures, nott the exactly painting the best of pictures as we get ahead to the training session. a lot of the movement here happened before the announcement. could take something off. angie: everybody was waiting for that liquidity and -- liquidity injection. let's check in on other headlines for you. kaiser will be the first chinese property to default on dollars if it does not pay over $50 million by the end of this day.
day grace.er a 30 it downgraded to default last month. the company owes $10.5 billion to local and overseas lenders by the end of last year. sign $28 pakistan will billion during gigi pings festering xi jinping -- during xi jinping's visit. it is set to bring benefits to both sides, giving china access to the indian ocean and improving pakistan and power supplies. nigeria and outer area are expecting oil to stay low for a long time and say prices probably won't recover to the 2011-2013 level of $100 per barrel. the comments, head of what is expected to be a tense meeting in june.
brent crude has seen a bounce back this year. him indonesia is playing host to the world economic forum on east asia. asiave southeast correspondent joining us live from jakarta. what is the focus of the talks at the conference? >> we are talking trade, equity, culture. basically how do you sustain growth in east asia? within the next two decades. is expected but not guaranteed. it all depends on how asia secures its growth. it policy makes it so important because it entertains the
signals being sent to investors. it is an integrated global economy. asia is susceptible to the changing fortunes and changing events elsewhere in the world. take for example the fed rate hike -- fed rate hike that would happen. many expect some countries in this part of the world to be sent into a tailspin. how then should asia position itself to secure growth? what can governments and industry leaders do to ensure sustainable growth going forward? it will be a busy morning from bloomberg here in jakarta. we will be speaking to a list of speakers. president will be talking about an inclusive society, financial inclusion. a very important aspect. indonesia is poised to become a
trillion dollar economy in about more than 30 million people live below the poverty line. we will be speaking to the russian deputy prime minister. prices, is theil worst over for the russian economy? what is the outlook for the airline industry in 2015? it is just past 6 a.m. in jakarta. it explains why it is pretty quiet behind me. expecting a very busy day ahead. angie: thank you. see you soon. coming up next, growing pressure on greece. creditors are pushing for a roadmap to avoid default. ♪
angie: checking stories making headlines around the world. ships are scouring the mediterranean for survivors after a shooting boat passed with -- boat packed with migrants capsized off of the coast of libya. 700 people seeking refuge were on board. if confirmed it would be the deadliest such tragedy in the mediterranean. the prime minister says 24 bodies have been recovered and 28 people rescued. he has called for an emergency eu meeting to deal with the issue. dozen ethiopian christians have appeared to be executed by the so-called islamic state in libya. a new video shows two groups of captives being killed. it's as victims were christians belonging to a hostile ethiopian church. if you process the victims
nationalities were not confirmed but it did condemn the act the captives were from. and tens of thousands of indian farmers have rally to protest against government plans for attaining lance and industry and development projects. he just the protesters in his first public appearance in almost two months. he accused the prime and asked her if giving away from less to industrialists. the euro zone demanding that athens show it what -- show what it can deliver i made to avoid default. we have our own reported taking a look into this. is it crunch time now? we had talks in brussels this week. a lot of deadlines making its way there. 80 million euros and bonds held
by the ecb. there is a conference call happening on wednesday. as well as on friday. a lot going on this week here. this all comes from the european commission. the vice presidents this is a chance by friday to layout a .alf to a may agreement one way greece can show that they are serious is if they went -- if they win some kind of signal support from greek lawmakers. the and time again we see greek officials they're just standing their ground, saying we do not budge from our redline. according to the deputy prime minister, telling a greek newspaper. says sources are telling us they make cuts -- may cut greece some slack. saying greece needs to commit to some economic forum.
worst week since these greek collections started. if you take a look at the two month chart, yields have more than doubled since september, close to 13%. if you stretch it out to a five-year chart you can see this is the highest it has been since 2012 during the first crisis during that time. we did hear from the councilmembers this weekend angie: you can get more on that bring -- stories to today stories. also on bloomberg.com, apple's tim cook has the best performance rating of any ceo on
the bloomberg paid index. we have a story of russian hackers using windows to try to infiltrate discussions on the sanctions. check it out. earnings season continues with some big names from facebook to coke to make headlines. su keenan with a roundup of what to look for in the days ahead. : a new round of earnings fresh data on home sales. sales of the apple watch french -- apple watch front and center. , a marqueeebook stock on wednesday. and microsoft on thursday. two quotes one strategist who reacted to dustin quotes one strategist who reacted -- two quotes one strategist who reacted -- we need to get
further in the season to get reactions be a fresh economic data hitting the markets this week. that will provide investors with some direction. economists say we will likely learn that sales of new u.s. homes cooled last month after jumping to a seven-year high back in february. purchases of previously owned homes grew at the fastest pace in three months. watch, the new gadgets is the ipad, officially goes on sale next week, following a preorder period. apple plans to keep quarters to its website until at least june. high demand and limited supplies. those who ordered online will not get their watches until july. you can walk into the stores but you can't walk out with an apple watch, at least not yet. apple reports earnings a week from monday. angie: low visibility in china spotted automakers
stephen reports from the auto show later this week. no need to adjust the color on your screen. there is a murkiness that permeates more than just the environment. here hasindustry matured to the point that there is not as much visibility on the road ahead. china's passenger vehicle sales are forecast to grow 7% this year, roughly the same pace this -- same pace as last year. tension is revving up at some dealerships, who cannot meet lofty sales margins and who asked them to move stocks. the growth rates have slowed down but the growth is still strong. s it is a solid growth rate.
>> still the world's biggest car market. the 16th auto shanghai. but beijing and shanghai alternate every other year, hosting china's largest car show. it seems like every few years the cities tried it out to each outdo eachy to other. one thing that is not new is china's continued love of suvs. but not necessarily foreign suvs. best-selling10 sport-utility vehicles in the first quarter were chinese brands. reported vehicle victories last year. the bigfirst time carmakers are being outsold in the hottest segment. themselvese priced in the top end of the pyramid, leaving open a price point for chinese suvs to occupy.
it could be the crack that gives them the opening to build the image area -- the image. some of them will be able to prove that they will be able to make good quality products. great -- after decades of learning from their joint venture partners chinese brands have narrowed the quality gap, instead of copying their foreign competitors with inferior products. chinese owned brands are proving to be much more competent at the imitation game. stephen engle, bloomberg, shanghai. : volkswagen may have taken a wrong turn in china. they are a maker says it will not beat industry growth as they catch in for suvs and minivans. the company that was the top-selling foreign maker in china last year, deliveries dropped in the first quarter creative local partners have
been offering discounts to attract chinese buyers amid a slowdown in the u.s. and europe. the chinese automaker is looking to build a sports sedan to be unveiled in concept for at the saying hi auto show this week. the segment is currently dominated by models such as the bmw three series and the mercedes cls. they seek to step up competition to local -- the global automakers. coming up next, fill in the driving seat at the box office. 7 cruises past $1 billion.
here in hong7:30 kong. if you are joining us on a monday morning here in asia. a little bit of a gray weekend and it continues to be a little gray this monday. we are 30 minutes away from the open of trading in australia, japan, and south korea. on your tv, on your mobile, and online, you are watching "first up." ♪ shifting to stimulus mode. china cuts thanks reserve ratios, hoping to free up $200 billion.
trade tensions. japan and the u.s. tried to hammer out an agreement ahead of abe's visit to washington. , drivingon dollar baby the box summer at office. good morning to you. i am angie lau. let's check in on what is driving markets this morning. we are seeing an extension of 50.es on new zealand' nzx the new zealand dollar is strengthening, though. china,the rate cut from the biggest since the financial crisis. .et's head over to japan futures pointing to a lower open. the dollar-yen at a two-month high.
japanese and u.s. negotiators are hoping to advance negotiations of the transpacific partnership trade deal. they want to see progress before their leaders meet next week. shery ahn is joining me with the latest. any signs of progress? >> just a little bit. they are saying that the working level talks led to some progress on contentious issues, according to the japanese trade minister. the u.s. trade representative, froman, ism -- talking now. they are saying that they have reached some progress on these contentious trade topics. we know that the main sticking points are opening the japanese farm market, but also getting rid of some tree barriers in the american auto sector. they are saying that the
working-level discussions have led to some progress. we still do not have the details, but we will find out. angie: farmers are the biggest hurdle for japan right now. >> yes. this is a policy that has helped sustain japan's 1.2 million farmers. they have imports as high as 778% tax on imports of rice. that is a huge deal that they they areet rid of saying that they cannot ignore a resolution with japanese lawmakers that says that a trade deal should not undermine sustainability of rice reduction -- production by later -- by local farmers. angie: how much pressure is it on all of these negotiators that china is now in the forefront of the region's mind?
shery: it looks like they are under quite some pressure. they have been vocal about it. president obama was trying to sway some free trade skeptics and he was telling them that if the u.s. cannot come up -- come to terms with this free trade deal, then china will step in to fill the void. of course, china has been working on the infrastructure investment bank. they have a capital base of about $50 billion. that is in direct opposition to the japanese-led asia development bank. believesnk of japan inflation will reach 2% by the end of this physically -- fiscal year. the imf does not. they say it has been harder to estimate the timing because of oil prices and wages of. the imf says it explained -- it expects japanese prices to grow
is halfwayhat towards their target of 2%. a probe into the actions of sri lanka's central bank governor says he had no direct role. he has been on leave of absence during the investigation into allegations that his son-in-law benefited from options. findings will be presented to parliament over the next few days. some of the stories making headlines today -- is entering asia's protein drink market with a $400 million takeover of a chinese drink company. coca-cola will pay cash for the business. the drinks, sold under the china green brand, include red being and walnut varieties.
they return to china after a foul attempt to buy the country's biggest juice maker. peugeot will be looking at making modules for vehicles. in other company news, taco bell is back in japan for the first time since the 1980's. a new store is set to open in tokyo on tuesday. in addition to tacos, burritos, and quesadillas, taco bell will cater to the japanese taste with such offerings as the shrimp and avocado burrito and taco rice. it will be expanding to other countries soon. >> global expansion is focused in latin america, asia, and europe. so japan will be the first new market in asia. we are very excited about that.
we are currently looking at latin america and europe to decide which should be the next new market. s for tacolots of pull bell around the world. we want to do it in a disciplined way. we will work within those regions to decide which will be the next market. >> those of the latest over it headlines. i am and kruger in hong kong. angie: no putting the brakes on "the fast and the furious." the seventh installment has raked in a record $1 billion for universal studios. is that all? to quote one analyst, this is why you go to the movies. you have cool cars, hot girls. for apriler opening and the year. the top-grossing release of 2015. the fastest picture to reach $1
billion worldwide. the most successful film in the franchise and the highest-grossing universal film in their 100 and three -- 103-year history. over the weekend, we talk about $21 million the messick sales in the u.s. china, not so much high contenders. you have "paul blart 2" and "unfriended." ass is good for the industry a whole. they are talking about a record-breaking summer. this could be the first summer that could approach ticket sales of $5 billion. it nearly made that mark in 2014, when "ironman 3" came out. angie: here is the thing about "fast and furious."
the big explosions and high-octane chases look great in the theater, but not necessarily in your -- fallingthey had cars out of the sky. it was great. angie: maybe something to combat piracy issues globally. they say they remain unchallenged right now. may 1 has "the agenda -- "the avengers." buzz aboutd a lot of this all my friends say they have to watch this. this is the next film everyone is due to watch. this: a lot of franchises summer for the box office. coming up next, we will be live from jakarta with mastercard southeast asia president. that is coming up after this short break. stay with us. ♪
angie: checking some other stories made around the world, the leader of the houthi rebels has promised not to surrender after the saudi-led bombing campaign. in a speech, he accused the saudi's of being servants of the u.s., which is providing intelligence support for the airstrikes. the u.n. is appealing for over $200 million in emergency management aid. the fighting has killed him at 800 people. more than 90,000 people have left their homes in the iraqi province of a asnbar fighters from the islamic state advanced. agencies are moving to provide food, water, and shelter. iraqi troops have struggled against the militants in anbar, just west of baghdad.
norway has demanded an explanation from moscow. , they visited a floating russian station near the north pole. pictures from the norwegian island. he has been banned from visiting norway under eu sanctions. take a look at what other stories we're tracking for you this week on wednesday, we will have third-quarter results from the sycamore exchange. it has been a rough few months. walker stepped down in june after failing to take over the australian stock exchange. will the slowdown on china's factory march continue? we will find out on thursday. economists are expecting a
contraction with a figure coming in at 49.4 after china posted its weakest quarterly expansion in six years. right -- apple fans will be able to get their fans on the much-talked about watch, but only for those with the fastest fingers. deliveries will be exclusively from preorders. if you are thinking about walking into a shop to get one, you may have to wait until at least june. let's head back to the world economic forum in jakarta. focus is the economy. that includes financial poor get to help the out of poverty. take a look at indonesia. a population of 240 million people. more than 32 million still under the poverty line. financialou do with
inclusion? mastercard has been doing a lot of work on the issue. matthew driver joins us this morning. good morning. good to have you with us. int is the biggest hurdle markets like indonesia, the philippines? matthew: it is getting all of the parties and that ecosystems aligned. once you have that alignment, particularly by public-private partnerships -- can play aechnology huge role in getting people included in the financial system. smartphones in markets like the philippines, indonesia, have been helping. how close are we? matthew: the key thing is the technology brings down the cost to be able to bring these services out to these consumers and as smartphones get cheaper, it will create a fantastic platform to be able to distribute these products and help them come into the financial realm. haslinda: it is not happening fast enough though.
take a look at a country like sweden. 80% of the population does their transactions online. matthew: it is an interesting situation. we have a lot more work to do in off the banking system. there has been great progress in markets like indonesia to get that banking system alive, but you have to work with the mobile operators to expend -- to expand your reach in the population. it will take time to make sure we are working well with regulators. look at: take a consumption in this part of the world. given the slowdown in china and elsewhere in asia, what are your numbers suggesting? matthew: we are feeling pretty good about the outlook. we are seeing a strong domestic demand, particularly in markets like indonesia, the philippines, the greater indochina region.
you have to remember that, on the other side, you have opportunities. we are feeling very optimistic about the region. haslinda: so domestic consumption is the key thing? fundamentals, the demographics, the general secular shifts, if you would like, from cash to mobile payments, we are seeing people find the right solutions, build inclusion, build new services. everything is driving very good growth. haslinda: we are seeing more and more hacking cases. isn't that impacting consumer confidence while they do business electronically? surely, it must have an impact. is makinghe question sure you are reinforcing
security methods. you have to make sure that you the rightere with business, encouraging the right kind of behaviors. and also ensuring that you are bringing the best of the technology. customers have got to really trust the brand. that puts us in a good place. that is part of our key message. we are going to be building the infrastructure, enabling the solution to happen. it is an important thing that we need to focus on. haslinda: what do you see as the biggest risk for your company? isthew: the biggest risk across all the moving parts. it is not so much one of the things, but there are so many good opportunities and we want to make sure we're balancing out business across all the portfolios and making sure we're taking advantage of the new drive to digital and helping move for inclusion. haslinda: is the potential fad a
risk. some people say that could mean an increase in non-payments. how do you view it? matthew: the natural questions that come with that is something we manage everyday. our great implications, but the big story in this world -- this part of the world is not credit. the big story is debit, e-commerce, prepaid, as well as digital. the growth story here is very good. we are not finding that we have such a dependency or exposure from a consumer perspective on the interest rate itself. haslinda: what is good? what kind of growth are you anticipating? give us some numbers. last quarter, take a look forward. matthew: i think we are looking pretty good.
fourth quarter, we saw 17% growth in the region. we are feeling good that, on that basis, it will continue. can the growth in the asia-pacific, specifically southeast asia, buffer the slowdown you are seeing elsewhere and can't -- in regions like europe? you look at the asia-pacific, there are a number of key drivers of incremental consumer spending. one is china, one is india, and one is asea. those three growths will continue to power disposable income and consumer spending. those three big economies will be driving up business in the future. you are here. you have always attended the world economic forum. what do you hope to achieve from your participation?
matthew: it is important that we participate and help build a community and support the government initiatives in this space. we have talked about financial inclusion and making sure we are aligning with the governments, who have great aspirations in this area. and making sure we are working to support the national interest in those programs. haslinda: realistically, what can be achieved? when we had the world economic forum -- the euphoria has died. matthew: nothing happens overnight. the great thing about the opportunity is that people are looking to put it together. the outlook is very positive. when you combine that with positive intent, you are going to work through those issues. i think it is very important that we take a long-term view. world, thef the opportunity that is there is significant today. the growth outlook will only make it more attractive. haslinda: matthew, we will have to leave it there.
apparently some of its employees conducted some false transactions. that multiplied losses. obviously, it has been found in the company is saying it will reflect those losses for the full year financial statements. 16 -- the one20 that just ended, by the way. ¥4.3 billion. angie: talk about hiding some inventory to cover sales -- david: they were good at it. it is a developing story, but we now have a number. angie: wow. that is huge. a stock to watch, for sure. we are taking a look at a company that builds ships and oil tankers. they have been pretty good this year so far, but january to march orders fell.
shares saw a tumble on friday. they are down 4%. a bit of a profit taking, according to analysts. last week, the cheapest mexican oil and crude in 20 years, sources telling us that asia refiners are telling us that some of the bargains may have been tainted. mexico crude. angie: questions about the quality. yvonne: questions about the chloride content. angie: ok. some interesting views for the first trading day of the week. thank you, guys. we will be watching that. that is the stock exchange. the stocks that are reporters have highlighted are based on news events. we will leave that in an hour to see how the two stocks we have here have done. up next, we will be back live at the world economic forum in jakarta.
welcome. i'm coming to you from that asian headquarters in hong kong. mode.swings into stimulus is watching the developments of merge in beijing. >> yes. china has repeatedly said it has tools to support a growth target set through monetary policy and other stimulus measures. it is starting to show that with reservists cut. and it has onhigh -- it is unleashed $200 billion into the market. this is the second time the bank cut rates this year. this cut is much bigger than
what most expected and the central bank economists said that it is meant to help cut cause. they have money going into private businesses. the slow economy is making a lot of central banks preferring to stick to central entities right the real economy is where it is most needed. and realeing outlooks interest rates remaining. liquidity tough and may not be as big. not stimulate the economy. most economists expect the overall picture to improve and
the next question is, when is the next rate cut. >> that is a question. there is some improvement there. >> we sought new home prices fall in cities. in february, new home prices fell. this is an improvement in the overall housing picture and some of the policies are starting to show some results. we have a long way to go. we do see the transactions going up a bit and there is a bit more pricing power coming back in.
beijing started going up again. the housing prices fell 9% in the first quarter and it is a depressed picture, overall. so, you know, a big jump and it will be a little while before it true -- it truly turns the corner. >> thank you so much for that. to destroy you right now. theee a strengthening of aussie dollar on the heels of the cuts. partner is trading for australia and the 225. it is down and we have a stronger yen creating some for exporters.
this is the view from there. yuan.a stronger korean much of the focus will be on the chinese markets after china said 'se reminder of isaac newton observation on gravity. what goes up comes down. they have put in rules to remind people. collect it was an announcement saying that it will come down at some point. to takek some steps some of the heat off of the overheating market. one was the leverage we are seeing. taken toion has been
borrow equities. they said after the markets closed that they shut down a source of borrowing money and the trusts that the margin trading businesses use. they say, no, cannot do it. another one would have made it easier to bet against. in other words, they are making it easier for the markets. the number of stocks you can short has been expanded. they are sending a message. be careful. it is not going to go on forever. you have a massive amount of money being taken out of the market. when the market started to turn started opening brokerage accounts. are looking at a record
number of accounts. >> how are things shaping up for the chinese markets question mark -- markets? is the reaction today. we had a selloff on wall street .nd the chinese company there and we could see some caution real orient security. so, let's see how it is. korea was the most overbought market this morning. those are the features you are looking at. what came before they announced
was a little gift. >> liquidity. help.should thank you so much for that. nigeria and algeria expect oil to stay low again. the comments come ahead of what is expected. crude has seen a bit of a rebound this year over the past 12 months. believesof japan inflation will reach 2% by the end of the fiscal year and the imf is not so sure. it has become harder to estimate the timing. expectest says they japanese prices to increase and that is only halfway to the
target. the investigation into the central bank governor shows that he had no direct role in deciding how much a family member was awarded. there was a leave of absence into the allegations that the son-in-law unduly benefited. greece remains defiant. creditors of the pressure for the deal. locked new aid payments and we have been taking a look at what some are calling crunch time for greece. there is 80 million euros in interest and bonds held. we have a huge meeting with finance ministers.
we have heard over the weekend that obama was saying that they need to move faster. european resident says a chance to lay out a path to an agreement and they way the greek prime minister shows the a signal ofs support from greek lawmakers. seen, they continue to stand their ground on measures like cutting wages or assets. they say they may cut some slack and they continue to commit to some economic reforms. >> we saw greek bonds last week was up >> it is the worst week since the greek elections
happen. take a look at the chart here. the yields have doubled since september and are up to 13%. it is theh out and highest it has been since 2012. crunch time is right here. you see the governing council members saying that emergency aid should not extend. >> a new deadline. thanks. up next, we are live at the economic forum. >> still to come, we speak to cooper about the expansion plans in asia. we are live at the world economic forum. stay with
headlines around the world now. the italians are scouring the mediterranean survivors. seeking refuge in europe, they were confirming it would be the deadliest tragedy. that there is an emergency eu meeting to deal with the issue. >> executed by the islamic state in libya. were christians and prolonged to the ethiopian church. act no matter the where. norway has demand it and explanation for -- norway has demanded an explanation for the
visit. station near the north pole. island of sval baard. as you know, the economic forum is taking place. we are standing by with our next guest. >> the hotel chain wants to double the size and plans to open a hotel every week over the next few years. sound ambitious question mark let's go to simon, who joins us this morning. the optimism?
where is it coming from? >> the greatest is china. 100 10 to 115 chinese traveling and 15% of that goes to hong kong. is inrger percent southeast asia. >> we know luxury is taboo. are your developments catering to a different type of market? governmentboo for and clearly the government is there. the chinese consumer is still going out and buying. and youwent to japan line up in the duty-free and it is all chinese buying duty-free goods. the consumer from our point of problemreplacing the with many enemies.
>> what you anticipating. -- anticipating? >> a central city where they put a lot of money, we have about eight other projects. they are getting filled in with high speed rail. onre is infrastructure going in china and they are benefiting. >> what would be realistic in china? >> i think the six and seven, if , you are compounded moving millions into the middle class. when you are moving into the middle class, travel is one of the first is you do. gdp is say the chinese not a reflection of how they are really doing.
we are seeing a slowdown elsewhere in industrial production. 7% may not be a true reflection. >> you may be right. we're looking at growth and, i think the central government is pretty fixated on household income because, if the average chinese person is doing better, that creates millions joining the middle class year on year and it may be an accurate reflection of gdp or not. andcombination of growth existing wages can bring it to 7-8%. india is another place for you and targets hotels. on track? >> we just opened a brand-new one in the himalayas which is stunning and fun. jw at thea new
airport with another just opening. strong for all of our brands and the market clearly is in china. >> is it easy to do business? get ups 100 permits to and running. >> that is correct. permitting is brutal and anyone can be put aside. >> you have the improvement of the government. >> it has not materialized. the sentiment is better. we are seeing that financing hotels is difficult and borrowing at 4%-15% is brutal. plus, you have to replicate most of the systems and have complete energy replication because you cannot rely on the national.
it is challenge -- it is a challenge and rewarding. asia.have seen air hotels?mpacted are you seeing that in the numbers? >> i do not think we are seeing it. i would say that air travel is the safest form of travel and that some are a little superstitious and may not travel to ask and why. my experience is that most people are relatively savvy and forget quickly about the events and these impacting people. >> is there a risk for the hotel industry? form withk is in some running ritz-carlton globally.
sars was impact full and 9/11 was an incident. sars is something that takes a lot of time. from a travel point of view, that is always the biggest deal. -- fear. we are coming to you live from the economic forum in jakarta. angie: thanks. looking forward to that. will be live at the world economic forum all day. at the start of the show, will be joined by the russian deputy minister. at 10:30, we will speak to the 's biggeste region budget carrier. coming up next, stimulus mode. seeking to reinvigorate the economy, we take a look at the impact on the currency markets after this break.
market and the kiwi dollar is climbing. the second reduction this year and the largest since november of 2008. the kiwi dollar heave off some gains after prices fell more than expected. expectationstrader that the central bank will cut interest rates later this year. the u.s. dollar is mostly unchanged after reports brought in evidence of a soft patch for the economy and clouded the outlook for interest rates. traders reassessed the economy and performance on economic growth. those are driving the markets this morning. no putting the brakes on
the seventh installment of the franchise that is bringing in a record $1 billion for universal studios. talk about a runaway hit. the film has where gone. it is about street racing and it is a global phenomenon. this is why people go to the movies. i want to add in hot cars to the next. needs won several races in fox office, including best ever opening for april in the year. it is the most successful film of the franchise. the film may spark accounts for 40%. reach the market.
ahead of shinzo abe visiting washington. the motor show is going to open it. in the sales outpaced the economy? illegally spying on the top leaders, according to the investigation. he may have even collected evidence on the president. for more on this, here is david will stop why was he spying? -- david. why was he's dying? spying?as he controls the national security apparatus with a lot at his fingertips. ande had access to wiretaps whatever he wanted.
it was clear and links to foreign websites. theo not know what information was or who it was about. itestigators are telling us is a pretty widespread operation. under thes done approval of chinese leaders. this was really significant here and so was the significance of those takedowns. >> when he said he was going flies, yous and cannot go much higher than that. and two he had links previous leaders. waiting for a date on that. >> absolutely.
it will be provided with information to the public. >> thank you for that. at besttake a look let's take a look at the rally we saw last week. the cost results are down. the yen is stronger. that is providing some headway. the negotiators are kicking off their second day of negotiation and hoping to make progress on the transpacific partnership agreement. we are being joined with the latest. the tpp?e saying about it is their second day of talks.
influence in the region. how much of that is putting pp?ssure on the t ministerpanese prime and president are meeting next week and they have some sort of agreement or progress before they have to summon it on the 28th. obama was vocal about the chinese influence. that, if theaid it. cannot come to terms, will be in direct opposition to the japanese led asian development bank. >> thank you. >> here is an kruger.
>> the first chinese property development. the grace. will expire over the weekend. downgrades to default. coca-cola is entering a drink arket with a takeover of drink company. drinks were sold under the china green brand. a failed 2009 attempt to buy the largest juice maker. taco bell is back in japan for the first time since the 1980's with a new store set to open in tokyo. anditos and quesadillas
catering to japanese taste. says theof taco bell chain will be expanding to other countries soon. are inal expansions latin america, asia, and europe. the market in asia and we are excited about that. there is a lot of pull for taco bell around the world. we want to do it in a disciplined way. we will work with in the regions. >> those are company news headlines. general motors plans to spend $16 billion along with sa ic. this adds sales growth and fuels
the economy. >> no need to adjust the color on your screen. there is a murkiness in chinese cities. here -- industry it is growing 7% this year, roughly the same pace as last year. attention is revving up at some dealerships who cannot reach lofty sales targets. >> the markets reach a new the growth rates have slowed down. they are still strong in the markets and there is enviably strong growth rates. strongest market.
every few years, they tried to host the show in a larger and way. year -- swankier china's love for suv is not necessarily foreign. the overall vehicle delivery was last year and the foreign .armakers >> they have priced themselves within the top end of the pyramid to lead off to a price point with chinese suvs. opening toem the rebuild the image of some of them. some of them will improve from being bottom feeders to making
good-quality products. >> it is about half the price of the tiguan. have narrowed the quality gap instead of just copying the competitors. chinese brands are proving to be more confident at the imitation game. >> volkswagen may have taken a wrong turn in china. the liberties -- deliveries dropped. trying to up the image at home, the chinese sports maker is
building sedans. dominated byly models. the chinese companies are releasing more products as they step up with global automakers. the chinese motor group is excel a rating the international expansion and committing $250 million. plan was to develop new models. market fromtake the china. next, we look at the response to china and deals.n's new military all of this when first up returns.
angie: checking stories making headlines around the world. the leader promised not to surrender. in a televised speech, he accused them of being servants of the united states, which is provided intelligence for the airstrikes. u.n. is appealing for urgent humanitarian aid and the fighting is estimated to have killed almost 800 people. 90,000 people have left their homes in the iraqi province. humanitarian affairs officials say they are moving to provide food, water, and shelter. it reaches to the west of the capital. tens of thousands of indian farmers have rallied to protest fornst government plans
projects. it is the first public appearance in almost two months and he accused them of giving .way funding to industrial china is signing off on the sales of submarines today. it is the first visit by a chinese head of state since 2006. we have david joining us now. why are the indians worried? >> they are concerned because pakistan will double the submarines. it will be an issue for india and more importantly, the pakistanis have are to publicly said that they want to develop a
they caneterrent and put a missile onto the submarines with a nuclear warhead and be able to fire that. submarine, theal torpedo tubes are mostly for a nuclear warhead and are shot out of a vertical tube. developed anavy has nuclear missile that can be fired at a submarine -- out of a submarine tube. china was instrumental in providing technology to give pakistan nuclear warheads and weapons in the 1980's. that is why they are concerned about that and many are concerned about proliferation.
to indians are also trying do the same thing. >> it is ramping up the tensions. no doubt. .here is the economic border >> this is that. port, thee funded idea is that the chinese will have a way that goes through china and pakistan. that will allow them to bring oil over the ocean and ship it straight to india. they will not have to go to the straight. issue if it was closed with tensions. what is happening could potentially be turned into a chinese naval base. the chinese denied that is what they want to do. we have seen a lot.
think about the submarines we have seen. it gives access. thank you. angie: earnings season continues in the united states with big names from they spoke and coke. of the daysundup ahead. putting a new round of earnings on home sales and sales of the apple watch. among the big names is boeing it, coca-cola, facebook on wednesday and microsoft on thursday. selloffon to the sharp was called gutwrenching. we have to get further into the season to get contraction. we have economic data hitting
and it will provide investors with direction. economists say we will learn about the adjustment from february with purchases from previously owned homes. gadget officially goes on sale next week after a preorder phase. apple plans to keep the orders to its website until june because of high demand and limited supply. many of those will not get their watches until july. you can walk into a store in the u.s.. you cannot walk out. not yet. bloomberg news. generating serious sales
and becoming the fastest picture to reach $1 billion worldwide. it has just taken the top spot for a third week. the movie has raised possibilities of a record-breaking $5 billion summer at the box office. at a we'll take a look japanese company taking a hit after the employee tried to cook the books.
there is a look at the opera house. we have the climbing. there is china stepping up stimulus. trading 15 minutes from now. -- it is going to be a flat open. welcome to the stock exchange. let's check in on what the reporters are looking at. one guy. >> you have a guy to tell the story. companypened was the conducting reviews and finding that he did some funny stuff and some in proper conceptions.
now, he or she has been found out. we do not have details on the employee. the company will be booking a ¥4.3 billion charge. losses.cts the >> that is huge. not as huge of a loss today. >> that is after the january march orders fell to about $3 billion. we are continuing the selloff and some analysts say the stock was outperforming the markets. we have learned about the crude refineries. asian oil in 20cheapest
years. it was a bargain. >> now, we know why. >> always about quality and not about price. moving direct shall lay. -- downward. our reporters picks are based on news events. all right. trending business is coming up. we will be talking to the .rime minister he will be joining us and anding about the situation the sanctions employment -- and
post on russia. ratingsoil prices and agencies having russian debt at junk status. after the collapse in the ruble, we have the current series. it is one of our favorites joining us from the university to talk about new routes and floating the indonesian arms. we're looking at that and what is going on with air asia approaching them about the possibility of acting as a business bond service. expedia and the apple watch together. john is the chief product officer of expedia. you can find out where the