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tv   Trending Business  Bloomberg  January 6, 2016 9:00pm-10:01pm EST

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seems. the 90 nations promises action -- united nations promises actions for north korea. there may be a vote on new sanctions next week. let me know what you think of today's stories. follow me on twitter. just getting to what is going on market wise. one chinese market is now closed for the day. in and trading has been halted for the rest of the session. that circuit breaker was triggered after the csi 300 tumbled. 5%, first circuit breaker triggered. , then everyone started to get out of their positions not to get stuck in the market.
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as i mentioned, we are now halted for the rest of the trading day on the chinese mainland market. that includes the cash market, auction, futures. no other updates for that. let's have a look at what is happening across the region. it is still triggering losses. -- hangs sendn down 2.3%. down one and as half percent. can we get the intraday chart of the a shares. it has been quite a session there. i believe we have reversed the earlier losses. intervention, but you could expect speculations that the pboc had their hand in this. renminbi inched
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off the all-time low for the offshore market. since then, it has reversed course. we aremoment, i think flat. let me check that for you. here we go. we are just about flat right now. h shares down 4%. losses are just accelerating at the moment. hang seng, this market is now seeing volumes three or four times the usual level for this time of the day. there is some selling pressure out there. a clear risk eisen off session across asia today. -- risk-off session across asia today. back to you. the currencies are also
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in view as well. let's get to what is happening. the story keeps changing, doesn't it? >> it depends on how you look at it, the take on the currency and the chinese, z. the pboc has surprised the market this morning, and a lot of speculation as to whether this is a another pboc divided way should, another broader currency devaluation that will test market stability. we have seen a zigzag session morning,yuan this rising, dropping, rising again. it is a fluid situation. a trading halt for the rest of the day. this could have a market impact across the asia-pacific. andaw that divided wishon august having a dramatic impact devaluationrkets --
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in august have a dramatic impact on global markets. the pboc move to create a broader basket of currencies. optimistic view or's insistence ability -- or the yuanstability, against the dollar has sunk to this five-year low. ist tells you that the yuan not necessarily as volatile as it seems. if we take that longer-term perspective be on these one-day moves,r one-week relatively the economy and currency are stable versus its major trading partners. stephen roach's would yell university in connecticut. he has been writing about the fact that this devaluation, or
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so-called devaluation, may not necessarily be a devaluation. is sparkingt china new currency devaluation is really a stretch he tells bloomberg. it depends on your position in the market. it is an active morning. we will watch it closely given this zigzag with the chinese currency. it is an interesting time indeed with respect to the currency. we're trying to keep up with these fast-moving stories. we want your opinion. tweet us your thoughts. let's get to some other stories. continues to see its slump. >> absolutely. record stockpiles crushing the oil price. bail -- ag near $34 a barrel, continuing to tumble.
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$33.45 a barrel around 10:00 nsm., erasing earlier gai after china devalues the currency. after north degree of -- korea said it tested a hydrogen bomb, oil continue to plunge. that is the futures contract up by half of 1%. trading near that $34 a barrel mark. now $33.17 on the crude futures. another impact is the fact that the world rank has lowered global growth forecast for 2016, 2.9% expansion, down from 3.3% in june. it cites the slowdown in china
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along with the slump and commodities and weakness and emerging markets, brazil and russia. they expect growth should pick up next year. it also cut its outlook for china growth in 2016 to 6.7% a 6.5% in june, while increase is estimated for next year. the bank trimmed its projections 2.7%, downowth to from 2.8% in june, citing the dampening affect of exports and the surging u.s. dollar. the world bank warning that the global a needs to adapt to lower commodity prices and slower growth. hsbc downgraded by j.p. morgan chase. it cut the rating to underweight from neutral, saying waning growth means the lender will be one of the worst performers
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among european banks this year. hsbc nonperforming loans in the region, which account for 39% of lending books, may jump to $5.4 billion by year end from 2.2 billion in june. surge 15.3ts could billion, according to j.p. morgan's analyst. shares tumbled 3% and london trade overnight. had a rough six months, down 15% over the past 12 months. hsbc is scheduled to release its full-year earnings next month. that chit chat that it could be moving its headquarters away from london, perhaps here to asia. look at let's have a the events in the last 24 hours. the united nations security council will take action against north korea after it said it conducted a new nuclear test. kim jong-un said it wasn't h-bomb, although some countries
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doubt it has the technology. what do we know? >> we have just learned in the last couple of minutes that south korea has partially banned .ntry into north korea north korea we know has a history of exaggerating its technological prowess, and experts say the yield and size of this 5.1 magnitude earthquake unlikely it was a hard judge and bomb. the strength of tremors were similar, if not down, compared to the atomic bomb test from the north conducted in 2006, 2009, 2013. regardless, the international community pledged a stern response. they deemed the test a clear violation of security council resolutions, but they are also running out of options to rein in kim jong-un's nuclear ambitions. that makes china's role in all of this crucial. for china toest
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rein in its uncooperative ally and biggest trading partner. -- united nations is watching to see if china gets tough. the foreign ministry is summoning the north korean ambassador to lodge a formal protest. will president xi jinping have the appetite to implement tougher sanctions? or will we see more words of condemnation. that is still not clear. environmental officials are monitoring the air quality near the border. they say they found nothing abnormal so far. rishaad: more on that story after the break. we will discuss the impact of the actions of north korea on public opinion there. the race is on in india to open a banking to the masses in the country's most remote areas.
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we are heading to mumbai for the details. that is "trending business". we are back in two minutes. ♪
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united nations security council promise new measures against north korea after it claims it carried out a successful hydrogen bomb test. let's get over to south korea. myers.joined by brian with atart things off look at the security council looking at further sanctions against the north. is there anything left that they haven't sanctioned? >> i don't think there is. the question is not the we need more sanctions, but do we need the chinese to make sure that the existing sanctions have a little bite. that is the question we have to be asking. rishaad: let's go to this test
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itself. is there anything in the timing here. it seems to have come out of left field. get a little heads up in mid-december when kim jong-un said the company possessed a hydrogen bomb. i think we need to get out of the habit of regarding these events as isolated, well-timed publicity stunt. it is naïve to think the north koreans are spending billions and billions on their nuclear program just to get attention every now and then. inon't think any country history has spent as much of its resources on weaponry. we are dealing with an ideology here, just as we are in the middle east, and although north korean nationalism is not as , itsthirsty as jihad-ism hostility to the united states is just as implacable, and its commitment to a long-term goal justice from. that long-term goal is the unification of the peninsula on
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north korean terms. unlikely tot's happen, isn't it? another guest we have says these want toke place as they extract more money and aid out of the world community. it does seem to be a circular argument. >> it is bizarre to think that they would be spending billions and billions, a country with little resources, why would it be spending billions and billions now in the vague hope of may be making more money back in and a deal down the road? that is just wishful thinking. -- in an eight deal down the road? that is just wishful thinking. rishaad: so what do they want? >> they want unification of the peninsula. it may seem like an ambitious goal, but a servicing a
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world-wide islam and caliphate is also an ambitious goal, and yet islamic state is working towards this. i don't think north korea is planning any full-frontal nuclear assault on south korea. i think the goal is to attain a position of strength from which it can begin to bully south korea and the united states into submission. if they do want to negotiate something, that something is going to be the withdrawal of american troops from the peninsula. i think we should not have any illusions about what they want. rishaad: what happens next? does the south korean populace know about this? they have been in the range of north korean conventional missiles and weapons for 30-40 years, so the nuclear is a of north korea is not really a game changer. they see these as problems for the united nations and the united states to solve.
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there was a lot more shock and outrage last august when land mines on the dmz maimed to south korean soldiers. what will happen now is there's going to be a week or two of strong rhetoric, but the south korean business community is really itching to get back into north korea. on north korea to a business audience a few weeks ago. over well.go people feel the chinese are making the sort of money that the south koreans should be making up there. adon't think anybody here has strong interest in keeping the story alive for very long. ,ishaad: the question is then far is this and how the north korean playbook of rallying north koreans behind the leadership? >> we need to realize that this is not a failed communist state. ,his is an ultranationalist military-first date, by its own
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designation. it is a right-wing state for which the economy is essentially a sideshow. economic growth is fine, but the legitimacy of the state derives from the public perception of the progress it is making along the road to final victory, and that is why we need to distinguish between the kind of internationally oriented propaganda that north korea puts fromlike that tame speech kim jong-un on new year's day, and the kind of propaganda the north koreans are getting on the ground, which is much more bellicose and which continually reminds people that final victory over the enemy is imminent. rishaad: how secure is kim jong -- kim jong-un. within thecure regime. what is insecure is the state itself. the north korean people need to be continued reminded for the need of this military high first protect the race
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against the enemy. it is not kim jong-un who needs to be legitimizing himself. it is the state that needs to be justifying its own existence as a separate korean state, and those people who keep saying that north korea needs to get away from this military business and reform itself are essentially asking north korea to become irrelevant, to become a kind of second-rate version of south korea, and that is just not viable for the regime. rishaad: brian myers, thank you for joining us in south korea. >> the stories making headlines. iran says it is ready for talks with saudi arabia to defuse growing diplomatic fight. the president says they want good relations with all neighbors and that riyadh should end its anti-iran rhetoric. relations were strained after the embassy in toronto was set on fire after the execution of a
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prominent shia -- shiite cleric. they cut ties with iran as a result. sweden, and germany discuss border controls as thousands of migrants had to europe from the middle east. the talks produce no agreements. germany is blaming weak policing. peoplean one million reached germany last year, the largest human migration since world war ii. the country say they are overwhelmed. denmark and sweden have started checking ids of the border. president obama's health insurance -- with the house voting to repeal the affordable care act. it has been under fire from the start, although the white house says it is encouraged by the take-up. it has now been sent to the president, where it is expected to be vetoed. on the other side of the break, australian miners battered by weak demand from china. bank of america may have a
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solution. on this as we had live to sydney, next. ♪
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rishaad: you are watching "trending business". i am rishaad salamat. raisecision to rates was a close call. minutes from the fed december meeting show some members worried about inflation and reaching that 2% target. most were in broad agreement with conditions of liftoff having been met. currency trading in china, the suspension will remain in march as beijing tries to prop up its economy.
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appeal tohartered reduce the band. the yuan has sunk to a five-you're low on new measures. -- five-year low on new measures. model at thep consumer electronics show in las vegas, battery life a major feature. huawei aiming to replace apple as the second-biggest phone maker -- smartphone maker in two years. leading miners, bhp and rio tinto sliding this morning after a selloff in london. we get to sydney now. quite a few reasons for this selloff, aren't there? >> there are, indeed. we will deal with bhp first. not only are they struggling
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under the weight of falling crude prices. futures concern over the of china's economy as well and what that means for demand for some of bhp's key products. yes, they sold off 4.9% in london overnight. enjoying a similar ride in australia today. point 79%.ff three as similar story for rio tinto, down 4.8% in london, currently off 4.1% here in australia. the bank of america published a report overnight, suggesting that bhp and rio tinto might , 21 sell chairs that shares billion dollars between them, to reduce reliance on debt and assist them in buying distressed at met -- assets. bake of america pointing out that this is a tactic that smaller competitors glencore and freeport have employed. if this report is correct, one would think that would be yet
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another nail in the coffin of bhp's controversial progressive dividend policy. rishaad: thank you very much indeed. have a look at the trading day. such a volatile session, a volatile week, four-straight days of losses. shanghai composite, 7.3% down. that is it for the day. some of those losses now being pushed to hong kong. 225ikkei t ng looking positive. have furtherwe afield. singapore market, down. kuala lumpur, just .5% off, on
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the way lower. a question of stability. we will assess what china's volatile market say about the state of china. you are watching "trending business". we are back in a couple of minutes. ♪
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stories come for days, two shutdowns, trading and china halted for this thursday after stocks job -- drop 7%. $637 trillion wiped away in 15 minutes of trading before the automatic circuit breakers were triggered. stanley'so led morgan retail brokerages leaving the
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country. as a newings departure person named president. understood that the new person was promoted before fleming decided to leave. the united nations security council imposes new measures against norco korea -- north korea. what ever happened was a violation of united nations resolutions. pyongyang said it was to protect itself from the united states and other him and he's. -- otherhim and he's enemies. there is david. again, total of 15 minutes. st circuit in, fir breaker triggered. then it stopped trading for the day.
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637 billion u.s. dollars was wiped out in that span of 15 minutes. just to show you how quickly and volatile it was. today for somer of my friends watching from the pub. each and every sector in the red at the moment. selling pressure has transferred here to hong kong. a lot of people can't touch their positions anymore. a shares taking the brunt of it. four times what we are used to seeing this time of day. down for the hang seng index. tie one down 1%, closer to 2%. taiwan down 1%, closer to 2%.
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that's the trading day in shanghai. that is 5%. we are done for the day. more than 10% down from the december peak. we are in a correction. it does not have any chance of coming up today. nikkei 225 just entered oversold terrain. 28.29 a few minutes ago, down 2%. hang seng was down a lot more. we are coming off the lows of the session, 2.5%. if i'm doing my math correctly. also entering oversold terrain. very quickly, where is my offshore renminbi. let me look for it. there with me. there we go. it has been quite a session. 617, within .4%
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off that record low for the offshore rate. just like that, back down flat. as you would expect, that gap between the onshore and offshore has narrowed substantially today. thought there was some invisible hand guiding this currency down, but that is speculation. back to you. rishaad: we are not even one week into the first trading week of the year of 2016, and the volatile chinese currency market has been creating instability. they are getting it. let's take a look at what is happening. >> a surprise from the pboc, people reflecting on the
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internet, whether we have another devaluation on our hands. remember what happened and markets in august. and theds on your view chinese market, but there may be a silver lining here. hard to think of it during the volatility we are seeing. today -- if you look back at october, china in the past month has moved to a currency basket, basically looking at the currency about a trade-weighted basket against its partners. that basket is relatively stable in the green. against the dollar has tumbled, five-year low today. ,f you look at the newer metric the one better regarded by economists and traders, it shows stability. there are those who would have a different view on the chinese market than the chinese currency. the biggest decline in two decades for the chinese currency.
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you have to take this with a grain of salt. as david indicated, it does appear the pboc was perhaps involved in this in some way, intervention being speculated on. rishaad: when will the renminbi have a seven handle and front of it? greenback, and the trade-weighted basket, and that is what the pboc is encouraging and what some prominent economists are saying is well. stephen roach from yield -- toldty writes bloomberg radio that the idea that china is sparking a new currency divided wishon is really -- currency devaluation is really a stretch. today, camebled back up, and now a trading halt. lightning speed. rishaad: thank you. much more to discuss in the days
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ahead. divideontinues to opinion, especially with the slowdown and the governments attempts to rebalance the economy. two of our regular guests have different views. , sayingrging caution china is heading for a hard landing. >> we had a hard landing in stock market already, and we had a hard landing in commodities, and we might have a hard landing in the economy. we have a colossal credit bubble it will, and how unwind, we don't know. it may happen through significant weakness in the it could happen through significant weakness in the economy. some sectors of the economy in , like steel production, they have art expressed hard landing. , i would be overly
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cautious on china than overly optimistic. family --he former chairman of morgan stanley asia, china is in transition and the hard landing is overdone. >> the hard landing school view of china growing much worse than expected, therefore on the cusp of rising unemployment and mounting social instability, which would bring the miracle to an end. nothing could be further from the truth. rishaad: it is volatile, indeed. the that say more about nature of its markets than the economy itself? we keep on talking about rebalancing in china. volatility in the markets does not necessarily mean volatility in the economy. when theast spring,
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market was going to the upside, then downside -- if you look at the local chinese market, it is still one that is low liquidity, because so much is insider held, a lot of it is driven by pretty speculative retail investor --ws, and clearly there is getting accustomed to these new trading rules that have freaked everybody out from that domestic flow. thee saw the same hit with chinese index here and hong kong or the hong kong market itself, where so many chinese stocks trade, you would think otherwise. it is under some pressure, but it is not the cataclysm we are seeing north of the border. rishaad: what is the expectation for this year as you look across this economy, which is not by any stretch of the imagination a monolithic block? >> you are right. we talk about rebalancing,
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transition, and you see it in the macro statistics as you look at what is occurring with manufacturing, gdp. on a bottom-up bases, clearly there is lot of evidence you point to in terms of metals and mining overcapacity, prices dropping, production slowing, compared to what were seeing in health care services and growth areas that are being rebalance. rishaad: you're seeing that in the market as well. >> granted, the last couple of days have been naughty. whole, a barbell effect of market performance, where you had areas like tech, health care, telecom up between 22% and 48%, and you had areas such as energy, financials, health care down between 2% and 19%. you have to pick your spots. rishaad: thank you.
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we will check in on some other stories we are following for you today. shareholder star board calling on yahoo! for a -- that it ignored outside parties. star board may launch a proxy fight at the next board meeting. star board holds less than 1% of yahoo!. asia hoping to revive its fortunes with a $1 billion cash injection. airlineest budget tonning to raise funds refinance debt and buy new aircraft. the question something that surrounding accounting and currency losses responsible there. a net loss of $92.5 million in the third quarter of last year. blackberry grabbing the keys
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and joining the self-driving-car race. ♪
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>> checking headlines around the world. myanmar announced a new parliament will convene on february 1, three months after the national league for democracy won a landslide victory. the nld will dominate both houses and be able to select the new president. the u.k. is making it easier for chinese nationals to pay a visit , a new two-year visa system will allow chinese travelers to make multiple trips and for longer. it is available to tourists,
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business people, and potential investors. the foreign secretary announced the new rule in beijing to the visas will be available from next week. he can run for the white house despite the fact he was born in canada. the texas senator says it is straightforward, the child of a u.s. citizen born abroad counts as a natural born citizen. his rival for the nomination, donald trump, is the latest to raise the issue of whether or not he can run. trump also questioned president obama's birth. virtual reality and cars are the big themes of the consumer electronics show in las vegas. cory johnson had a look. one, based on what we are seeing, automotive may be a bigger focus than ever.
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the major automakers are here talking about advancements towards the dream of self driving cars, but also gathering data from the vehicles as they ride. ways they might gather data that will let them know real-time road conditions. traffico understand either way vehicles are moving. internet of things to understand a lot about the transportation experience, and how gm and other carmakers find new business models. bytual reality talked about so many companies, not least of which sony, hinting about a new virtual reality project they plan to release at the e3 show. the deviceowing off a little here. i talked to the ceo about exactly how they will roll this thing out and what it will mean for playstation players. is the virtualvr
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reality experience we will bring to the playstation format. it will ship later this year. the most important content that will be fueling playstation vr are the games. than 200 developers who have signed up for playstation vr, and about 100 titles are in active development. playstation 4 has 38 million installed users. that is the fastest adoption of any videogame platform ever. it is a giant install base. playstation virtual-reality coming to you. as he was mentioning, autonomous cars are making news this year. blackberries latest name to venture into a crowded idea.
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the idea of self driving cars. it is showing off demo cars that can scan ahead and talk to other vehicles and avoid accidents. the chief executive expense how the system works. >> what we provide are the resource management and application beneath all the interfaces that like apple, google, or ford technology. car manufacturers, engineers, tier-one people at onto it and use the technology under the foundation of how you securely connect all these resources in the car. technologiesuired for not only an autonomous car, but also for the connected car. based in very technology and cars. emily: you said you would like to work with google, apple, have
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you had conversations about partnering? >> personally, i have not. my people have had a lot of conversations. sinceo with google today we also joined force in the android world. i think google is probably the best bet right now. are you concerned that google and apple would want to own the entire software stack? wide with they want to work with you? inwe provide a secure layer how these different applications talk to each other come and that security is very important. for at are known blackberry is the security part of it and the connectivity part of it. we happen to create more module so people could plug-in, but we
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have a very open system interface. i am not concerned about them wanting to own the entire stack. that would give us licensing opportunities. i would love for them to own the stack. rishaad: john chen there. what's making waves in social media. netflix going global. this is going to be available in 130 more countries. countries,196 netflix announcing overnight that they are going global. available in india, but not china. netflix saying they hope china will be the next to fall. rishaad: they are in afghanistan, which is quite something. >> for us in hong kong today, fortunately. there have been some great reactions on social media. cardsspacey from house of
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with a champagne glass in his hand. one of my favorites was the cast of orange is the new black, a would look tohat watch netflix once they get out of jail. they are playing on their netflix popularity in that space. as we have a look at the actual tweet that kicked it off, netflix itself saying, "netflix is now global." of course, there were a few jokes about the fact that china is not allowed to use netflix yet. our one will appeal to australian audience. what a time to be a live come up late on what malcolm turnbull said when he came in as prime minister and all stray. you who like to go to the video store. rishaad: i don't think you can
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go to blockbuster anymore. most of the stores were sold to dish network. >> i have a dvd player in my drawer that one of our producers gave me. as of today, video streaming available in hong kong. rishaad: i'm just waiting for who wins the betamax, vhs battle. mail.ney is in the how the postal network could be the solution to banking in rural india. stay with us. ♪
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rishaad: this is "trending business". i am rishaad salamat. india is home to the world's largest postal network, it could
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form the backbone of the banking system for the country. is the post office planning to do here exactly? is the world's largest postal service. they received central-bank approval last year to begin processing payments starting march 2017. it is a long-standing plan to use the network to spread financial inclusion in the world's largest democratic nation. india has over 500,000 villagers , who don't have access to banking services. spreading those services to the rural population will be one of the major criteria of growth. an estimatedce has 250 million people in india with a savings account with the post
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office, which runs a network of 155,000 outlets across the country, of which 95% are in the rural areas. as far as handling $71 billion in annual revenue, according to figures provided by the world bank. hailing this move as a game changer, and this would bring the postal service in line with global norms. rishaad: thank you. despite the gloom and doom surrounding the economic outlook year, a lot of companies have promising growth prospects. we have compiled a list of the top five to watch here in the asia-pacific. actually, we will not look at that. we will look at star wars now. ♪
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--the darkside, the jedi rishaad: a little bit of confusion as you can tell there. those of the trials and tribulations of live television. let's get you up to speed on quite a day as far as the equity sessions goes. currency as well. chinese stock hold, second time this week, exchange closed early for the second time after the csi 300 fell by more than 7%. the shanghai composite did the same thing. index futures also halted by these so-called circuit breakers. hang seng on the way down. nikkei 225 with the losses well.
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-- with eight loss as well. aste tuned for "asia edge" we recap the big stories of the day. ♪
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>> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with the middle east and the sunni/shiah divide. kuwait cut diplomatic ties with iran. a decision to execute a prominent shiah cleric in response to the attack on the saudi embassy. talk about this is voni sauser. in washington webbedy sherman. she's a fellow at the


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