Transcripts For BLOOMBERG Countdown 20150323 : vimarsana.com

BLOOMBERG Countdown March 23, 2015

We bring you the results. Welcome to countdown. I am mark orton. Mark barton. We bring you the conversation you will not want to miss. Caroline it is a decisive week for greece and the greek minister begins with a visit to merkel. It is the second meeting in five days between the leaders. They failed to reach a deal last week at the european leader summit. 4 mark we will go to berlin shortly. The big story is taking place and there is a week of National Mourning. Five decades guiding the city. Tell us a bit about the the reaction to the mood. The news of his death is difficult to process for many. He was in Critical Condition for several days. The government kept the nation updated and was preparing for the eventuality. Until last night, young and old showed affection for the founding father. Many gathered at the hospital. Social media had an outpouring of condolences and tributes came from around the world. They knowledge the huge loss. The minister called him one of the greatest leaders in modern times. Mark what we see is the result of these policies. She is not without controversy. You are right. He transformed singapore to a first World Economy and him made it his priority. It would attract businesses and foreign investments. Democracy can be suspended from time to time, if needed. He maintains he knew bed new best. So, a visionary man and authoritarian. Thank you. Lets head to berlin now. Hans nichols is there for the details in the meeting. Good morning. What do you expect today . She dampened expectations and said the meetings could take place outside of the pressures of direct negotiation. Greek media is reporting they expect a little bit of compromise and that is a thing that could end up being discussed. German Officials Say that merkel is willing to go a long way and that is a lot to be optimistic about. Here is why you should be pessimistic. Heading into brussels, he was asking for disbursement of funds without showing reform efforts. That was projected and things got heated. Mario draghi criticized how officials are being treated in greece and, another reason for pessimism is, heading into the meeting, the Financial Times reports merkel wrote a letter saying they could not meet the immediate debt obligations without the infusion of cash. The local newspaper reported that april 7 if the date greece will run out of money without a shortterm infusion from creditors. The line from berlin and other european capitals is that there will not be funds until there are steps by the government to implement reforms that were agreed to by the old government. Mark how are the Banks Holding up . According to a person familiar with the matter, 450 Million Euros on friday. The previous three days will. 1 billion euros. Clearly, the banks are hemorrhaging crash and liquidity was about half of what they had asked for. They are pushing close to the limit and, a final note, they reported the expectation of a greek exit. The german governments said the german position has not changed and companies have asked for more reparations from Germany Defense countries. We will sort that out later. Mark hans nichols in berlin. This is the Chinese Company offering euros. Lets dig into the deal. It is complicated and we understand a deal has been struck. It is being valued at 15 billion euros a share. The National Chemical corporation is going to get 61 of the shares currently held. We have the euro bid and the number one shareholder buying a 26 stake. As china takes 26 , it will look for the rest of the shares. It could come back and reinvest in the company. They will hold a majority of it and the other 50 up for grabs could be held by the owner who is the ceo and chairman. He wants to remain chief executive and it looks like the two companies could take them private. It is being said that we could see a real listing of them in italy. The thing that sent the stock price higher is the speculation on the deal done by the number one shareholder. We want to know about why they are doing this and why they want to get the investment. It is making tires and together, they have scale. It can double the volume of the business. This is crucial. It is competition at home. Think of a company that is a heavyweight in europe. They have made acquisitions and have expanded. It is notable and and looks like a Chinese Company. Theyre looking to take a majority stake and take it private. Also, this is notable and, think about what this stands for. It was founded by Giovanni Caroli and it is all about where this takes china and italy. It is interesting that china is upping the game and the Chinese Companies have invested about 3. 5 billion last year in assets in italy. Only 3. 5 billion. Compare that to this deal and it is one of the biggest ever chinese investments. The company gets its grips and suddenly, it is eyeing italy. The assets are well valued. It is a bit of a seminal moment. Mark top story on bloomberg. Rebels take over the airport and set up checkpoints throughout the city. Leader is calling for more support and he is accusing the president of working with militants from al qaeda and the Islamic State to evacuate the rest of the personnel in the country. The National Front leader cast her ballot in the local elections. Sarkozy got the most votes. The National Front took 26. 4 and another party 1 National Front is running neck and neck. Hosting a Regional Election over the weekend. The socialist president got 47 seats in the parliament, short of the 55 needed for the majority. The antiausterity party is allied with greece. In the United States, the cruise confirm that he is running on twitter and asking followers for support. The senator is the first republican to kickoff the president ial campaign. Caroline join in the conversation and let us know what you think of the show. I am at caroline hyde. Bringing you some exclusive interviews. Mark still to come, we bring you the exclusive interview and it is a conversation you will not want to miss. We are back in a few. Mark welcome back. They week for greece. The talks continue to work towards a deal on future financing. Lets bring in the head of strategy. Good morning. There have been decisive weeks and months and years. To quote a regular guest, this could be the endgame with banks bleeding money and the nation needing money. Absolutely. That is the sense you get from the way people talk about it in the markets. The there was no sense this could go wrong. People still think there will be a deal and a solution. You have gone from a zero probability to a small probability that the accident could happen and it is bound to be worrying. Caroline is this a view that contamination is less and it will contain the crisis if it unravels . Do people not believe there is real unraveling . It is hard to untangle and it drives asset price moves. I think it is a very miniscule probability at this point in time and it is difficult for the markets to price. The difference is that people are talking about it and they always do. Now, people alike, may be they are right. That is the thing. It is not really being processed because of the probability. The most important game is being played out. Has the dollar will run ended . The News Conference last week had nine months of dollar gains. Is it coming to an end . I do not think so. I think we are coming off of the back of a strong trend and it takes valuations a long way in a short span of time. The factors behind it are not changing and the fed will raise rates in june, september or next january. It does not matter. They are closer to growing stronger. As long as they do not get a negative development of its where, we do not get a shock or response from the Housing Market. It remains surprisingly weak and it is an issue. We have low oil prices as in them positive and there is a commodity cycle that will keep oil week and the dollar strong. Caroline bloomberg puts the negative yield vortex wonderfully. A lot of bonds are in negative territory ahead of the strategies. What do we do and where do we put the money . The reaction was to take out the credit risk and you are either in the per a free or you have the assets. The question you ask is what someone like mr. Draghi wants us to ask. They want the investment and want to see investors borrowing. You had a story that tells you that equities are cheap. That is the endgame they are trying to get. Get into the real economy and the Financial Assets and market pricing. I do not think that is a chance for success. Mark thank you for joining me. Caroline we will have a look at the life of a founding father of singapore. Caroline the death of the founding father. We have the special report from singapore. Often called the founding father. He was the first Prime Minister living through political and financial uncertainty in malaysia to independence in 1965. During his rule he became one of the successes with a guiding philosophy. I want to commend confidence and confidence brings in investment and talent. With investment and talents, we will prosper. A lawyer who emphasize probusiness policies. He moved the population and molded them into a welleducated workforce. They became a Regional Business hub and one of the Largest Foreign Exchange and Wealth Management centers. It overtook malaysias economy. It is tremendous, not only for the size. The idea is that it will come back to malaysia on their terms. Despite the rapid development, they were always acutely aware of the vulnerabilities. She the new leaders and populations do not realize the base on which this is adult. It will go down quickly. The economy opens and control titans from Family Planning to freedom of speech. The people have governed singapore for more than five decades. They were likened to another key figure. They did not see eye to eye. He was a critic and i went up there to say what do you think of this guy and he caused and i looked at him. He said, he is one of the outstanding political thinkers of our time. He was a pragmatist and authoritarian. Visionary. Mark caroline reporting from singapore. Mark we will take a look at a u. K. Startup that is making the Housing Market more accessible for the funding. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Mark you are watching countdown. Look at the bloomberg indexes. The gain against the dollars and it is falling for the second day. Last week was the worst week since 2011. The Federal Reserve cut the projections for growth and it has led to a currency surge with hedge funds trimming bullish dollar positions to the least since december. A couple of fed officials are speaking. Listen for john williams. He is scheduled to speak today. As is the cleveland fed president will be interviewed i manus cranny later. Listen to what she has to say. This is the bloomberg dollar spot index over the last five days. The dollar index is up and it is still on track for a consecutive monthly gain since january of 2005. It is 2. 3 below the record reached on march 13. That is what is happening to the bloomberg dollar index today. The top story on bloomberg is the chairman of the vivendi facing a strategy challenge from investors. According to the Financial Times Asset Management is preparing to improve share prices. Investors questioned what they intend to do with the cash and the maker is planning to merge to a new entity. That is according to people familiar with the matter. The executive Vice President is the candidate. China is considering changes to the Security Industry that would allow foreign banks to control local joint ventures, according to people familiar with the measure. They have given permission to expand in areas beyond stock and bond underwriting. Making final preparations for the first asian Real Estate Investment. It is singapore and tokyo pushing to build a wealth fund. Caroline real estate is hot in the u. K. , as well. It is described as a Stock Exchange and the company has raised funding, including index investors. Ed is here to talk about the new venture and the outlook for Technology Investment here. You are a serial investor and are taking the active role. What does the company do . It makes it straightforward for you to buy investment properties. You want to get involved and you have to manage a whole property. Now, you can buy a small part and get benefits. Caroline what could the initial investment be . Mark a few hundred pounds. Caroline this is almost crowdfunding. Who is doing the picking . Mark we have a team of people who have been hired and are looking at the staff and the properties marketed by a established estates. The buying side is straightforward. Caroline i can buy and sell the investment. You buy the units and get a percentage of the rental yields and there is a secondary market. If you decide you want to trade you can. Caroline the investment goes into a particular property. Do i have control of the asset being ought . That is the beauty. You can choose. If you like the play and want properties that benefit from crossrail, you can choose specific properties and leave one that is not exciting for you. Caroline this is gathering momentum and why do you think that is . Why is there the opportunity here . What makes this a hub . London is a global leader. There is a long financial heritage and a hot startup sector. You put them together and you have a fabulously well located place. It is the package that london is benefiting from. Caroline what about regulation . I can see people saying, i can put real estate in london. Why is this happening . Does regulation protect those who are wary of this . Technology opens up the opportunity. It is regulated in a way that all Investment Business is. You have technology allowing you to transact. Caroline property will go up and down. How do you protect yourself, when it comes to threats of regional investors who are not as educated as to the downside of what they could see. Are you ready for what will happen . Some will go down and some will go up. We provide information on local areas and we will obviously make sure to encourage people to have a diverse range of investments. You have a diverse range and you are more protective. Caroline this takes a leaf out of the United States. We have the real estate do best Real Estate Investment trust that allows individual properties rather than a group you do not control. Technology takes the established investment medium and moves it forward. Caroline you are a serial investor and take a look at financial technology. What about sunday and the valuation they are looking for. Can you confirm that is the case . Wonders are leading the way and we see banks focusing activities elsewhere, turning to finance and 1 billion here. It is a business where technology is making the best of the old business model. Caroline it is disrupting banks and funds parts of the economy banks are not willing to lend to. What is the new business . What is Property Partners disrupting . I think that it is adding and that people have been investing in good investment categories. You have to do it and somebody else is doing that for you. You have it adding to the range of investments. Caroline we have plants and funding circles worth more than one billion. What about others . Is this a worry . You have to see what they are delivering. I would be worried about valuations. Here in the u. S. , it is doing something and, if you apply the valuations, it it does not look extraordinary. It is incredibly exciting. In particular, we will see more of these. Caroline you are one of the first guys to see this. Thank you very much. That was the Founding Partner and serial investor looking at operative partners. Mark thanks. Tell us what you think of the show and the stories you want to hear more about. Trending topics are singapore and transforming singapore from a colonial Trading Center to a prosperous nation during 30 years as the Prime Minister. He died at 91. Caroline is there. No manus. He is in france. I am mark barton. Coming up, talks on the nuclear program. We will be live. Caroline lets have a look at the top stories. The Scottish National Party Supports labor. An interview on the bbc. He ruled out a deal with the conservative. Other options are available. The labour party ruled out a supply arrangement. Caroline also speaking was nigel, talking about a scandal that made them suspend atkinson. Will figure out what the link is. Is she knows about it, should she stand down . You have to lose this person and that person. I have been ruthless as the leader with people who have stepped over the line, whether financial mismanagement or saying things that go towards racism. I am ruthless. Caroline announcing a Wireless Service this week. That is according to a person familiar with the matter. The monopoly is pushing to expand. Mark a de

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