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tv   Trending Business  Bloomberg  January 14, 2016 9:00pm-10:01pm EST

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after confirming a $5 billion write-down in the u.s.. weakness means the coming will not do further investment in shale. delhi, has the worst smog in the world. that comes to tackle to an end. what has improved. we can tell you what you think of the top stories by following me on twitter. and of course, don't forget to include our hashtag. opened a lower. juliette has the latest in indonesia. what are we seeing? juliette: we are seeing a bit of a pickup on the jakarta composite. essentially, coming back from the near loss yesterday. we saw the losses in indonesia
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pair back a little after the bank of indonesia cut their interest rates after the attacks, although that was widely expected. in china, the shanghai composite 0.2%.y china shares could it drop further. the composite at these levels is fair trading value. saying they are looking at the shanghai to be around 2500 points. hang seng down 0.2%. it is japan, leading the region higher. of 0.7%. theas lost a little bit of gains from her earlier in the session. australia pulling back from its strong start to read some of the strong movers we are watching. nikkei, jumping by the most in a month. after a report that there could be an increased offer for the
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iphone supplier. taiwan semi conductor looking very strong in taiwan. it has forecast the second's second consecutive account. bhp, on the right down in the shale business, rebounding after closing below $15 permit up 6% in london trade as well. positive sentiment in the region. perhaps not the leaf really we were hoping for. week: we are following the in china. a volatile time for the yuan. stephen engle joins us. tell us more about the intervention and the gap between the offshore and onshore yuan. like peoplelooks want to -- the trend resumed when the pboc set the fixing
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rate at what, you .5% weaker. it was misinterpreted by the market. the bets on the offshore yuan continued. we have had that gap, the divergence narrow on obvious and you mentioned buying -- obvious intervention buying. the rate slightly higher, 6.537 to the dollar. that is onshore, of course. offshore, similar, a little weaker. trading onshore at 6.58. the gap has narrowed. we saw the divergence after august 12 when the chinese did the surprised evaluation. because, much weaker
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overseas investors thought this was an indication the authorities were going to continue a weakening trend to prop up the economy. the authorities want to stem the outflows from china which hit in the first 11 months of last year. a record, a $40 billion u.s. -- $840 billion u.s.. they want to stoke exports for a recovery. the weaker yuan would help but they don't want to exacerbate the outflows. shery: thank you. let's recap those breaking figures coming out of china. aturrency loan coming in 597.8 billion yuan. the december aggregate financing came in at 1.8 trillion. supply for december.
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rising, 13.3%. the estimate was 13.6%. latest out of china. bhp, rising by the most in about three weeks. shares currently rising. revealing they expect to book a $4.9 billion write-down for u.s. shale. he was our commodities reporter in no born. this righttaking down? writedown? reporter: investors are not surprised by this latest wr ite-down. it follows the tumble in commodities. the company said it is taking this right down on lower prices.
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write-down, only the latest in a series of challenges against that decision. hat in itself followed a write-down in 2012. it has in a series of assets that have taken down -- $20 billion to get a foothold in u.s. share -- signal thed the possibility of an exit from shale? david: i don't think bhp is sale of itsg any shale assets. it did attempt to sell fayetteville, one of its assets.
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it said it could not achieve the kind of price it was looking for. that is probably still the case now. it is unlikely they will find buyers who offer the kind of value bhp would want. in the mediumnt and long-term outlook. long-term, they think they can offer value for the company. once the oil and gas prices recover. shery: thank you for that update. joining us from november. take a look at some of the other stories we are watching today. yvonne with a roundup. in tokyo.aring shares, rising 13%. that is the most in almost three years after reports that o they may up the ante for the company. just this week, sharp was said
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to be considering selling a stake in its lcd operation. that this business, after booking $10 billion in losses over the past four years. sharp's tvrcut business. talks floundered over disagreements on price. it may promptsay them to raise their offer for sharp permit let's talk about taiwan semi conductor. rising after posting a fourth-quarter profit that beat estimates. rising 3.8% in taiwan, taipei. themaker for chips for iphone moved to a more sophisticated manufacturing technology, which helped boost
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margins and counteract a global slowdown in demand. apple forecast record revenue for the quarter, fueled by customer upgrades and strong sales in china. even with the economic slowdown in the country. prolongedng about a downturn in the sector. the forecast could be more dim come but the shares looking good for investors today. the company says first-quarter revenue will fall to $4.9 billion. they are no longer sticking to a 2014 forecast for 10% annual growth. goldman sachs has agreed to pay $5.1 billion to settle a u.s. mortgage inquiry which includes 1.8 billion dollars in consumer relief. the bank expects a settlement to cut fourth-quarter profit by around $1.5 billion. the proposed a deal would be the latest settlement resulting from
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the government push to punish wall street are creating and selling subprime mortgage bonds, fueling the financial crisis. authorities have already than $37 billion in the form of cash and consumer relief. a final deal with the justice department and goldman could be weeks away. the cost of the agreement will affect fourth-quarter earnings but that will allow 2016 results to be free of expenses. shery: thank you for that. coming up, we look at new delhi's attempts to clear the air that is among the worst in the world. next, the latest on the deadly attacks in jakarta that were claimed by the islamic state. stay with us. ♪
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shery: these are the headlines making headlines around the world. three people including two --ldren died when a witnesses say the ski run had been closed all season and the teacher and his group had crossed the barrier. the teacher is being questioned by the police while recovering. with smog today. authorities have warned people to stay indoors. levels. consulate says were eight times the international accepted safe level. the air is described as
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unhealthy today in several parts of eastern china. sayso-called islamic state they carried out the gun and bomb attacks in jakarta. seven people including five militants were killed in the assault. the islamic state said it had targeted foreign nationals and international hotels and tourist stepped uphave security. the president has returned to jakarta and says indonesia must rise above acts of terror. >> people should not be afraid. must not be defeated by terrorist acts. i hope the people remain calm because everything is under control. how vulnerable is jakarta? let's bring in a university of melbourne professor who is also the director for the indonesian center. he joins us from victoria. thank you for talking to us this
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morning. indonesia has been targeted by militants since at least 2000. how did this attack get through? how prepared were they? tim: it was not particularly major or successful attack. five attackers were killed and only two others killed. compared to paris, it is a minor event and not particularly effective. reflects the constraints on islamist militants in indonesia. in 2009 were more significant. they lead to a huge crackdown by security forces. supported by countries in the region including australia. militant organizations in indonesia have been under a great deal of surveillance and scrutiny.
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there has been police crackdowns in recent weeks. significant arrests that have prevented attacks. plans before christmas. it is actually not easy to carry out these sort of attacks. that is reflected in the relatively small-scale of this particular attack. the big fear right now, whether the islamic state has big plans for indonesia. tim: it may have the plans. indonesia has a population of 250 million or more. suggests maybete only 250 indonesians have gone to fight in syria. the government has been effective in stopping more than that leaving the country. fromame amount have come size -- aith a tent a
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tent of the size. there are not big numbers from indonesia. there are enough to launch the sort of attacks. there will still be recruitment. there are families who support them. small tradition amongst a , tiny minority. they will be trying to do what they can. it is not as if we are going to emerging battleground and indonesia. i do not think that is possible. shery: positive views. what more can governments do? even these smaller scale attacks don't happen? tim: there have always been
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militant islamist organizations, going back to the start of independence. there is a group which was territory held outside jakarta. nothing compared to what has happened in the past. security forces have been pretty effective cracking down on what is a permanent feature of the landscape and indonesia. realizing,ries are but they are quite used to it. that is one reason the police post was targeted. the shopping area targeted was not a high perceived location. i think the fact that there was a police post there that was vulnerable is one of the reasons for the attack. militants hate and despise the police. they carry out attacks on police
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posts. in a more of the same sense at a relatively low level at this stage. the involvement of islamic state is a worry. we will have to see if it leads to more than that. shery: thank you so much for talking to us. from the center of indonesian law and society. has been following social media reactions to the story could be the professor telling us, this was a rather small-scale attack but it did cause panic. but it a lot of panic was unsophisticated. people were commending the police response. it has pretty much cleared. life has returned to normal. the traffic is back. people visiting the site, calling for prayers and national unity. you can hear those prayers and
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read them on social media right now. one hashtag which means, we are not afraid. jakarta is brave. is morning traffic which normally a nuisance, a comforting sign for many people. here is what one person is saying. pray for the victims. pull ust terrorists into their storms. one more person saying, terrorists one fear. fear is an option. be vigilant. stay safe. this is one we tweeted out earlier, talked about earlier. comforting reassurance we are not selling to terror. you ca continue to see this. bike rides. resilient, how they are defining terrorism.
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whether in life, social media. shery: it is so funny that traffic jams are comforting. thank you. industry, the auto back in the headlines. but for all the wrong reasons when trending business returns. we will look at a lawsuit alleging a fake sales number. ♪
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welcome back. renault has confirmed they are cooperating into an inquiry on emissions.
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nissan says their premises have not been searched. automakers have been under increased scrutiny since the dw scandal broke. chrysler shares were suspended from trading and tanked after the american unit was sued for falsifying sales. i spoke to our auto reporter about the details and implications. >> this has to do with sales reporting. what the lawsuit alleges, it is filed by a dealership alleging chrysler has been offering some leslers money to falsify sa reports. there is typically a sales target the dealership has to hit. what this is alleging is there was extra incentive given for dealers to boost their numbers,
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essentially. this suit is alleging damages. a case in which they were cheated. chrysler is dismissing the suit. is this unusual for the auto industry? 69 monthrysler has a street. they have had a significant amount of momentum. a lot of been skepticism about how they have achieved this. unfortunately, this is not something uncommon for the industry. vanity.l about you have seen companies wanting to use the numbers.
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shenanigans and competition between brands. mercedes, duking it out. this is something, where we have had a history of this taking place. shery: a check of the markets. sian stocks running out of steam. hong kong and shanghai following this morning. shanghai, down 0.8%. japan, the only one rising. gaining after falling more than 2.5% yesterday. taiwan, up six point -- 0.6%.
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coming up next on "trending business," is the real thing investors should be worried about china's mountain of debt? ♪
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when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. so your business can get back to business.
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sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. shery: welcome back. these are the top stories trending this hour. markets mixed across asia after a volatile week. composite, heading for a third week of declines. down 16% this year. worst performer. japan and australia in positive territory after overnight gains in wall street. central bank has said yuan rate the
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weaker. take on january 6. since then, the pboc has shrunk the gap to its narrowest sense november. goldman sachs says it has agreed to settle in investigation for $5.1 billion. that would cut fourth-quarter profit by $1.5 billion, closing out a year of record legal costs. the ceo saysine -- he is happy to have reached an agreement. here is juliette with a look at what is moving the markets. we are using this word so frequently, a roller coaster ride for asian investors. juliette: hold on to that roller coaster.
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it is continuing. the shanghai market down by 1%. despite the fact that we saw a good rally in the main u.s. -- certainly a pullback after the big rally on the market yesterday in late trading, led by small caps. here in hong kong, the hang seng adding to losses. down 0.4%. a rally coming in the oil price. elsewhere, good movement in the region. japan, higher by you .7%. sharp, the standouts today on reports the bid was increased. korea, pretty flat. australia, can ok. built-in -- shares responding from a low.
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another stock, equity coming off earlier gains. up 2.5%. as 11% on reports there has been a rebound in china. will surge in australia, leading gains in the space. impex in japanese trade, can pretty good. the shanghai market weighing on the overall returns. topy: returning to the story, the wild ride for the yuan. a genetic few days. word we useis the too often, roller coasters. yuan.rrency, the
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another day. you need to think about the broader context. that has been the message. what has all of this aggressive intervention, volatility, achieved? betweenlosed the gap onshore and offshore. the rates hit parity wednesday. it came at the cost of a rate overnight. surging to the highest on record. liquidity essentially disappeared, when it came to the yuan market. where do we go from here? are they going to intervene? yesterday, we saw those returning to the market. after a bit of a bruising when the intervention happened.
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it does seem the fact that the pboc is refraining from intervention, that is telling investors, there are downside expectations for the yuan. it is a bit above vicious cycle. we are seeing foreign reserves. amounth we see -- the that they have used up in the past 12 months, equivalent to the entire stockpile of switzerland's foreign reserves. that must be pretty damaging at some level. di: there is an argument they should be drawing down. you are right. that has been one of the elements of collateral damage. the depreciation or devaluation. rescinding -- resetting of the one. dollar denominated debt, that would be an issue.
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this is more of a fundamental issue. that is finemoves, unless you want to be a reserve currency. that is simply unsustainable. they keep doing this. it is only setting back the past towards internationalization. on for the pboc managedthe volatility but also gradually letting go of its currency in the way it manages it. it has made some efforts and progress with that. year, theyo far this have taken quite a few steps back. shery: backtracking every time the yuan is out of their comfort zone. china, determined to reassure investors about its ability to manage the slowdown.
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policy makers may be hamstrung by a credit double. -- bubble. let's investigate this. why is this debt so important? reporter: and all the headlines and fireworks, we are forgetting in the background, one of the key breaks on china is 28 trillion. it is limiting how policymakers can respond both on the real side and economy side. officials reasons wanted a booming stock market was to offer an alternative source of capital. that has loan up in their faces. one reason they cannot respond to growth in the economy is because of their credit cards. while of course they have plenty
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of assets, that ratio lower than other countries, it is the pace of buildup. the unsustainable nature of that buildup. the lending they have done in china. it has led to enormous problems. despite the pace, the question is, can they handle this challenge? enda: right now, when you speak to people, they will tell you they are making a hash of it. china fromlooking at the outside, you would say, these are meant to be world-famous technocrats. most certainly, it doesn't seem -- they are not inspiring confidence they can pull this off. do they have a basic
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plan? in the longer term, what sort of market are they envisioning? they do absolutely have a plan. yearsere lectured for that there should be a free exchange rate. but the exchange rate is overvalued. they are being criticized for doing that. is, they totally wanted free markets. every time they take a step forward, they appear to take two steps back. china has a steaming rack of a stock market. a currency more confused than ever before. at the very least, they are confusing the world with its actions rather than sending clear signals. forward,u go one step
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two steps back. in the sense, at least progress is there. very slow that it is still there, some sort of change. making progress in key areas. -- chinang market has is not going to book that trend. they will have accidents on the way. exchange rates, onshore and offshore. there is the view they should close the gap. china'se points in defense. when you take it all together in terms of what they have done, it is not a great look. it does not inspire confidence. the world's second-largest economy, and emerging economic giant. that they really are in control of things and can not cause damage to the rest of the world. i think that's the key. shery: thank you so much for
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joining us. the latest on china. now checking in on other stories we are following. may lead for control to a default at the main operating arm. it is unlikely to make a two 0 millionght -- a $29 bond payment due next week. both companies have filed suits. they are claiming their parent has spread false and illegal statements. there may be light at the end of the tunnel for luxury retailers focused on china. burberry sales returns to growth, upsetting the impact of a 20% drop of revenue in hong kong. illuminated -- fell 9%, but analysts expected
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16%. china handled more than $1 million -- one million applications, for patents. the intellectual property office says they went to chinese businesses. received theer most. a telecom giant and wah way -- and another company were next on the list. samsung will return to using qualcomm chips. it has been a year since they moved to other suppliers. bloomberg news technology reporter has more from seoul. forhat is good news qualcomm. that is a big part of qualcomm's business.
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overheating issues detected by the korean company during its testing. that pushed up the shares of qualcomm. 3.5% overnight. not all the chips will be using qualcomm. use af galaxy seven will 20 chips. the remaining half we use samsung chips. news for samsung as well. yesterday, samsung released a statement that said they will -- mass production as well as the latest a 20 chips. this in a press release is unusual for samsung. that means the semi conductor business is a raining back qualcomm.
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also losing some of their galaxy seven chip orders. we will only find out. coming up next, the president of taiwan's time is coming to an end. who will replace him? a look ahead at a landmark election, when "trending business" returns/ ♪
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shery: welcome back. the world anti-doping agency bodythe athletic governing must have known about the extent of cheating in russia. they describe a russia as a doping haven and laid blame on the council.
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the report attacks a lack of political appetite for confronting russia, which has since been suspended from world competition. contractswarded new to whole cargo to the international space station. nevada -- they have been outsourcing launches since the space shuttle went to retirement in 2011. it is focusing more on the space exploration. recent have exploded on resupply operations. sera nevada is developing its sierramany shuttle -- nevada is developing its own mini-shuttle. voters are going to the polls in
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taiwan tomorrow. she would be the first female ruler if she wins. her rival only entered the race in october. domestic and social issues have dominated the campaign, overshadowing relationships with china. stephen engle takes a look at the issues at stake in this election. stephen: no matter which candidate wins, the ruling opposition, they will have the same economic challenge. how to reinvigorate growth, which went down in 2015. >> taiwan is going about 4% last year. it is in negative territory now. rates, about 25 basis points. come from the central bank and it will not be enough. stephen: the economy is not
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slumping in isolation. there is global economic and market turmoil and china is slowing down. economydiversify the and trade partners, and find jobs at home for disenchanted young voters. >> this rally features more of the elderly, rather than the court of the party. and 30-year-old voters who they count to propel to victory bring out only for the presidential election but in parliament. they have progressed much better. like dpp much more. stephen: that is a stunning turnaround. when they swept into office and the former dpp president was shuffled to prison for corruption.
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the perceived reliance on cross strait trade has younger -- angered young adults. >> they need to change that mindset. go to china,er make money and come back. and leave taiwanese without jobs. knowledgehey have a they must do better winning over the working youth. >> i recognize the atmosphere, the political atmosphere now as not for our party. steve: it doesn't help to have seeminglylar ma settle his successor. means force in mandarin. rupy: coming up next, the
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ee plunges. we will be live in mumbai with the details. ♪
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the latest suv was launched in india. they are hoping it will help mitigate potential losses. extends its ban on diesel vehicles. there is also an electric scooter in california. they say it is aimed at concerns about climate change. >> we saw the two wheeler business changing from being toething that would be sold,
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returning as a motor transport in advanced countries because of climate change. you trying toare reach? >> we throw it up any air and see who catches it. we will sell it to whoever things there is a need for it. the pieces could be campuses. where there are political leaders determined to transform transportation in their cities and make them green. going into public-private partnership. one of our largest potential client bases seems to be transportation sharing companies. scooter sharing networks. i will not take the name of one because we have approached with many. ubers of the this world. emily: do you think a company to yourr is a threat
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business? >> the auto industry has to recognize car sharing companies are going to transform the industry. if they succeed, the volumes of cars people will sell could go down to read is that a threat? not really. it means you have to shift your gears. which peopleolio are going to have to buy. low class, frugal cars. whatever they might to be. we have a portfolio that does that. away to cars with character. car, iflennial buys a they can afford it, they are not going to buy just a bland carpet with something that has character. -- a bland car. they are going to buy something that has character. shery: a trial to clean up the air has ended. climate correspondent joins
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us from the indian capital. did this work? reporter: there are two ways of looking at it. one is compliance. for a city like delhi, which is andng vehicles medically -- children's lungs are impaired, free policy.tect- we can say it worked. 20% tos constitute only the pollution. although they are the six largest polluters. only a fourth of the vehicles was targeted. since slice. the delhi government says 50% of
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pollution levels have been reported to be reduced. environmentaly groups are telling me, is debatable. a on pollution in india has no standardization. what really doubtful different sets of data are saying. we do not know where we are. we do not know if the experiment really reduced pollution effectively. experiment does the mean for the car industry? india is a country abouts noncommittal reducing emissions. which means we are going to burn more coal for economic growth. comfortable,ry was we can set up in india and it is not a problem, they may need. think.
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the delhi government attempted to shut down two coal plants. shery: thank you so much for joining us. that is it for "trending business.". stay tuned. ♪
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from our studios in new york city, this is charlie rose. charlie rose: much talk about the republicans, but the race for the democratic nomination has intensified. senator bernie sanders said hillary clinton's criticism of his stance on gun control and health care signals her campaign is in trouble. he took the lead in new hampshire according to an nbc poll. he is closing the gap in iowa.


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