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tv   First Up With Angie Lau  Bloomberg  February 28, 2016 6:00pm-8:01pm EST

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angie: the g-20 greatest worry, it's not china, but japan is the biggest cause for concern. and salvage their $6 billion deal. and target and disney and the n in control is stuck with mickey mouse. we are coming you from hong kong. let's check in on markets in
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asia. frustrating day.g day. we are seeing gains, aussie dollar is weaker at 71 u.s. cents. and trading for about an hour now. we are seeing gains on this fresh week after two straight eeks of gains. tent of 1%. and and on the back of that. very positive u.s. economic data. we are coming down to the opening in japan and korea and checking futures in cold chicago. it is pointing to a hire open. 1/3 obust week with gains, and strongeren tom contend with. . d taiwan shot that
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the massacre in 1947. we have breaking news. 180th quarter, coming in at 7 llion dollars and 118. dollars and the final dividend. this is going to be news for investors. it's going to be 3.5 sing important. to our top story. we have g-20 finance ministers saying the they must do more. as that is the latest story. we were there. and david, what stood out for you. david: what stood out is the chinese policy makers were addressing any concerns. them being the host.
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there were high expectations and we all know that he spoke english which surprised a lot of people. their role as host and i guess all the uncertainty. apart from that. we have that about saving the world. that's what you would expect. a lot of these countries are coming in with different interests. if you have a look at this, get the first graphic up. apart of what we know, commodity prices falling, they included two new risks and that's where the tensions and increasing number of refugees in some regions. now, all this being said, they talked about the markets. so we get the next graphic, recognizing these challenges, we
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judged the magnitude of the recent volatility. in other words, what they are saying, there is no crisis and o need to come up with a big bazookca. it is not enough. nd we knee there is more structural support. and how to save the world. looking at the text, it's not as bad. angie: at the end of the day, monetary policy can do some much. wars? out monetary guest: and coming out publicly. what is importantly, part of this, is we reaffirm our commitment we will refrain from devaluations and not target
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exchange rates. publicly, you can't come out and say you are targeting an exchange rate. but that's ok. listen to some of these comments that we managed together. > the best way is to refrain from it completely if your monetary policy has an effect on the rate of the currency. inform your colleagues. >> the language on exchange rate is very important. it was an important commitment in turkey to refrain from competitive devaluation. it is important in this, there is an additional commitment to consult and the commitment that will keep each other informed and avoid from surprising each
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other. > the central banks that one these negative rate policies, basically had to come out and little bit of a term offensive, that we need to do this for infration and not doing it for the currency. more. a -- here's one i'm not drunk. [laughter] angie: i think it becomes very clear. thanks so much. the gmp-20 finance ministers are meeting and the focus remains with china. leaders say the policy reform at the top of legislative meeting now this year. it looks like, heidi, that policy makers have come to markets, but there is a lot of hard work. % porter: we have that 6 1/2
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plunge. but they have gone in some praise in the way they handled the market panic and the lenching think press conference and trying to talk town from expectations from further yen devaluation and the fact that the outside world is focusing on these capital outflows and the growth we saw last month. so that was saying something of a victory after many instances of the u.s. and policy makers in china saying they weren't communicating. but the macro situation as we go into these significances. you have the u.n. continuing to weaken and depreciation coming down. and trying to bring up that
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chart, it is down, let's bring up that chart. it is down about 21%. still looking at highs over the past year or so, you can see taking another leg down. so there is a sense of market confidence being very much shaky and coming out of a record pace and we have the fact that manufacturing and industrial production investment, all of these industrial drivers continuing to slow. and no bombing out. on the flip side, the consumption side is set to outpace the old economy, that isn't picking up as much. they have to address the capacity. angie: but it's going to come at a cost. you have e.b.s. a 10% reduction
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in six sectors, that could result in job losses. we know that seeking employment and social stability is a key focus for the chinese government. but they were lib limited. >> that is between a rock and a hard place. angie: revealing the terms of $6 billion deal that was approved last week. the two sides went through the deal. fox said it wouldn't go through the deal. that announcement came hours after sharp's board approved the offer. he man hole controls godzilla. chinese billionaire plans to spend $3 billion on a retail project outside of paris.
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it will include a theme park and shopping centers and how beatings disney. this is his second major deal. win. eed to >> the corruption in korea since suped by the u.s. attorney general over its possible role n bribes paid to international officials. 22 rding of the 2018 and 20 world cups. it bribed money pass d through a number of big banks. the indictment dose not accuse them of wrongdoing. india, with the latest budget. we have the finance minister saying that independent yeah must review its deficits in the
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coming years. we have been looking ahead to his speech. what are we focused on? reporter: there will be three key points in the deficit as well as allocation for infrastructure spending and recapitalization plan sm the deficit and federal and state governments are the biggest. now india's current plan aims to shrink the plan starting in pril to 3 1/2% frrl g.d.p. but targeting 3% by march, 2018. the finance ministers advisers released a report saying the report calling for the government to have a scheduled import and could make this pass. now this team says that one
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option would be to narrow the deficit by 0.3% each year over the next five years which would take the gap of 3% of g.d.p. but 2021. uld be by march of sknt is rising after back-to-back drop. and more on welfare programs as of key state es electrics. and stick with deficit reduction goals. the central government governor has warned that a budget could boast india's credit ratings. we have seen the bonds that are turk into the worst performance and the bank is saying higher
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spending on wages and pensions and bank recapitalization will make it tough to stick with the plans. so those are the key points we will be watching in india. angie: we are going to talk about the india budget. what does the government need to focus on. the key number we emerging market analyst. japan needs to take further action to hit the 2% inflation target. ♪
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>> dwailting a resolution over upon i don't know and nuclear tests from all ships sailing to and from north korea and travel restrictions. facing a revolt against possible moves. hundreds of buddhist tionalists protested against amending the constitution. article 5 allows and the late husband was british as are her two sons and has been trying to repeal or suspend the cause. ireland is facing the prospect as the general election left no party with the majority. and expected to finish ahead of
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the pakistan. they include a traditional rival. the outgoing government suffered a huge loss of support. the voters angry. powered by over 2,00 jourmists, this is bloomberg news. angie: time to look at the mportant events in the events. >> employment, energy, elections. that is the week ahead. reporter: on monday, energy and the latest reading on the count try's oil supply, the u.s. energy administration elises its december report. highs not seen in 86 years. tuesday, we have to talk elections, it is super tuesday,
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hold their primaries to decide on both republican and democratic presidents for president. and politico will be watching. and earnings from bash clays. on wednesday, more energy and employment. eia released the report. and the monthly employment report for february and that could cause concern. the u.s. economy added about 180,000 jobs which would be the lowest growth in four months. n thursday, data showing the u.s. sector expanded in february. weekly jobless claims come out on thursday. and 270,000 claims. the market p.m.i. and are supposed to show an uptick.
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on friday, more employment data. labor department is expected to show a job growth of 35,000 more than the week prior. the unemployment rate is at 4.9%. out the week.nd angie: the key economic data with the chief market strategist. will they or won't they, how critical will it be for the fed? >> i think it is incremental pace that we have seeing some good inflation data on friday. the data market continues to flattens. but the federal reserve wants to see improvements. and the labor marpgt is one of
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the key points. the market is under position. hey liken those u.s. dollar to the lowest levels in july of 2014 and gives people the opportunity to to score and it will be important. but i think it is important and the key moving forward. want to see key incremental data. angeange >> angie: ohio is it going to affect u.s. earnings? >> not well. it's pretty clear that the u.s. dollar has caused a ladge amount of damage. the dollar has pument back despite the situation. data at he inflation
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1.7%. and i think a strengthening dollar, as long as it's not the only dollar and not causing a pullback in oil, then the stock market can continue pushing hard. a strengthening dollar has caused a large risk. angie: we heard from g-20 urging governments to step in with fiscal policy and central banks, we are waiting for their decision as well. how critical is that where perhaps the government should be doing more? >> a lot of talk. perhaps in australia. here is a honeymoon period and
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focusing on the next election more onnnounce there is the fiscal side. i think that is something where they do have room to support the economic region. clearly, if you are looking at diminishing returns, they have one of the lowest impacts there. angie: japan, what is on the radar for you this week? >> i think inflation data. everyone is focuseded on japan and very little they could do to promote inflation expectations. they are going to get the wrath of the world on their back if they decide to do so. it's not going their way and not a lot they can do. gie: live for us 234
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melbourne. watching shares in an australia law firm. all the details live for you.
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angie: and it was late as well, the earnings results. >> they said they needed more time to assist the value of the u.k. assets. when they bought it just over a year ago, there were some questions over the deal itself and hit with regulatory changes and did the calculations and they are not pretty. and the price has been profound. 25% and off by 90% offer the past 12 months. needless expansion did not go well. but it gets worst.
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they are being looked into by the regulator and investors who felt they were misled over the profit expectations. the banks will be looking very closely at their investment and very difficult to be optimistic about the management team. angie: the shares are down close to 28%. get more on all the day's top stories. blook berg business bringing together the best of bloomberg news and bloomberg television. on blook, why gold could be the biggest winner of 2016 and the most popular stock picks are sinking. hat is blook berg/asia yeah. the terms of the deal, more on
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first ory, a lot up when first up" comes back to you.
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angie: finance leaders have done more to and take more than the monetary policy but they failed to offer stimulus plans. voice was expressed. while china won support for its targets. china did manage to come here ver the recent market's g-20
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meeting. and the year ahead from the economy on education. china's finance minister has signaled that more fiscal support is on the way. the finance minister will present his third budget this afternoon and his advisers say 3/4. l 7 to 7 government workers expected to be announced to shore up infrastructure. owered by over 2,00 around the world this bloomberg news. the g-20 finance ministers talks. there is a commitment to something. when you talk about economics
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and growth, there is something called straurl reform. david has more. david: if i had a dollar for ery time the term structural reform was mentioned, i would be much more than the collective net worth at the g-20. that's a joke. whenever we have meetings, you have to talk about the short-term, medium term and longer term and let me talk about the communication from the g-20. or six times. potential growth and make our economy more innovative, more flexible and more resilient. we were speaking to a number of policy makers on the weekend and
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as you would expect, the concept of structural reform again came up time and time again. listen to these comments that we managed to gather for you. >> we need to boost growth. we need to have monetary policies. and and we really need to focus on structural reform. you have a country, and countries and economics. and each one of them will do another reform. economic growth. >> the only area that we have talking about is the structural form -- you know, the real instrument -- angie: let's take a deep dive
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into bloomberg and we have a function and it's nt life go. and i have had a chart that tracks the numbers of reforms in news articles. so this is a one-year look atlanta that chart. joe, can we get a close-up. that is that part. 120 times. this other spike that you see is a preview of the g-20. this spike was in the midst. and if you pan out a little bit. the last time you were more or ess at these levels was in mid-june. market crash in shanghai and crash.e cost was for the
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it was again structural reform. this tells you every time you have these meetings, come together, the different problems to solve, they point to something rather abstract. that concept is structural reform. angie: let's see checking on markets in asia. 's have the eric yits at 4/10 at 1%. and tomorrow i expect it to keep rates at 2%. new zealand and they are higher. and heading over to japan, the futures, a stronger ye nmp. we will be watching it shamp.
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reviewing the terms of the $ billion and the two sides spent and eekend going through are joining us right now from peter. what is the latest? reporter: yes, we had this surreal situation last week after months and months, sharps' board voted in bids of the company and fox delen c ompnmpnmp said not so fast and what exactly this information means. they haven't said. $300 bimion yen. the shaff sharp could bear under certain circumstances so the
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lawyers and bankers are going through the liabilities trying figure out how they are and would take on these liabilities. fox is paying a premium. and it doesn't want to bear an additional cost. angie: would you know of the major sticking points, a so it has to be pretty big here. what are they? >> they need to get to the bottom of these libets and whether fox has to take it on and take control of sharp or not. and one of the things that the advisers has been considering is will f it knees to deelt, there be other places, perhaps it will be less capital and less
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money to the banks. and it's pretty challenging. angie: thanks for the latest. let's look at what is falling., gives them a with shares 25% this year. japan's ng capacity, biggest car maker doesn't have nidse . nintendo is set to follow in tokyo. and the stronger ymp e nmp. and 150 million. and the news highlights the release of the game.
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7% on friday. apple has lost a major battle with samsung where a court threw it out. and saying samsung didn't infringe several patents. however, it upheld a division against apple. two companies have been fighting battle. >> followed by more than 37 million people.
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he criticized. to preserve the authority of the communist party. that is a look at some of the tories making headlines today. angie: suspended. the latest strengthening his grip on power. let's go live. how -- what happened? eporter: you could call it a pudge. is suspended ty and until then has remaped the party's second in command after being fired as the prime minister, the party says has undermind his party and constitution a and to tep down.
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it has been embroiled in political scandal. the troubled fund. questions about political donations and from the saudi royal family made it to the ersonal account. ab and there is the prime minister. doing denied any wrong d no criminal off ebbs and losed all cross-examination. >> it is pretty strong. s silenced critics and strengthened his position. he still has the support of the
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to powerd since coming seven years ago. increased it has and the access to education. so, yes, his position as party chief and prime minister looks pretty secure. angie: thanks. india's prime minister gets his spotlight. after the show break, we will discuss about what is in the year ahead.
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angie: and these are the stories making led lines. the moderate candidates have won
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all the seats in a sweeping victory. a high turnout in the capital seeing as a referendum. and they have a early lead in a separate vote in the assembly of peakers. ack and putting a satellite into orbit and on a floating barge. and surge landing feafment and expect is. and twice last week. and security is tight outside los angeles where the 88th acad any awars. joe biden who is introduce lady gaga.
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all the top acting nominees are white. and other stars are boycotting the show. this is blook berg news. it is budget day in india where investors of whether the government can lower the eficits from 3 1/2%. reporter: india is very closely watched. why is deficits so closely watched? they have had a problem with very large gross public debt. and reduce public debts. angie: are we going to get there?
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>> their deficit was next wear t 3.5% of g.d. pfment. angie: there are other challenges. exapization and rural indian and has hurt so many people here. reporter: fifth time where they had back-to-back drought. but rural india has been pretty weak. and looking for measures. and concrete measures. and looks like they are going to mix that. angie: you just came back from shanghai and of course being the criticism from g-20 has been
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monetary policy is over. is independence yeah doing enough of that and the world doing enough of that? reporter: they are. the erm budget is showing and it has been. and india is. and it is important because that's where they have to show that in order to get that, they ave to continue the fiscal deficit. the governor says he needs to see deficits. so they are trying to spend on the fiscal side. t they have to continue to balance. that's the budget. yes, yes, it's been a bit, bit of overwhelming. but in germ, if you look fee
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grand scheme of things, you get more. angie: if you look at the outlook for india. do you think they will get to 2% eficit by march of 2016? reporter: the exports have been weak. ey have been trying to boost manufacturinging. global growth wim help india. angie: and we have commented hat independent-kline, neck-to -neck. what does china need to do to catch up? guest: i think with the comparison with different countries, india has, think in some harder problems to
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overcome. china has experienced rapid growth and some of the decisions, while political difficult, they have a difficult time. angie: what do you think we will expect to hear? getcht guest balancing growth and reform. reducing and inventory. angie: i'm going to stop you there. coming news out of japan and talk about retail sales just coming across the bloomberg detching. reporter: january industrial output on 3.7%. this is better than expected. he estimate was a 2.7% game it is roaring back and it is the
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rst rise in three months for output. so given the headwinds, the slow down in asian growth, that is a rice, that is encouraging and let's get to retail sales. and retail sales, they are not so rosey. they sell 1.1%. the estimate was again for a tenth of 1%. so you see retail sales falling. hat is the same as the drop in dees and they face a lot of headwind. he qups have been reluctant to boost sales. the vision never fully can be
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achieved. we will watch the end. angie: med winds in japan, really universal story when it cosms to the story, when it comes toe kline and asia yeah. >> it is. and how we can get that. he numbers are quite optimistic. but there are weakness. but both in taiwan, korea and commine. the numbers were encourage understanding. but it will take. angie: bringing you back to the ndia budget. guest: they are going to be difficult. and it has been. the past year and year
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and-a-half, it is crucial. and business services have been talked about and finally getting at it through. angie: really good to talk to you. coming up. planning to end production of the mini advance.
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angie: welcome to the stock exchange and the opening in japan and south korea. and our reporters are telling us what stocks they are taking a an eye on on. reporter: 1.6% of the shares billion.d be, $1.7 and it's oversold the territory
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for this year and actually delained about 30% and see a plunge in the stock. and the shares buy-back and will help the stock get a little bit of a lift today. angie: possibly say good-bye to the mini van. car making points to the end of the development. ableazda 8 and hasn't been to capitalize. reporter: you know, i think so. soccer moms. ba are you. they are trying to build it. that is going to to on sail.
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look at the shares, down 36%. and value of course. and analysts bullish on the stock. shopping. g show and >> they fleed the help. >> retail sales. >> look at this one. 60%. and e chinese tourists diverse if i into different markets. march. so yes, we have to see how that plays out. > why not. > we will be become in a own
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hour. buy-back re holders and keep a close
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mixed messages, japan's industrial output rises, retail sales disappoint. and sharp work through the weekend to salvage their $6 million deal. g-20's latest worry, it's not china. it's abenomics. .elcome to "first up" i am angie lau. hour,lia trading for an
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1/5 of 1% higher. we do have a flat australian strengthening. there is speculation from traders that perhaps we will see a rate cut from the rba, but perhaps not tomorrow. underway, 1/10 of 1% higher. yuan is slightly weakening. futures in chicago pointing to a higher open. this is where we are now. higher despite ahi stronger yen. new data shows a surprise rebound in industrial output in japan, but headwinds on consumer spending. we have more on the latest data.
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spendingers aren't because their wages have not gone up. nothing new. retail sales data shows a decline in the pace for january. down 1.1%.ail sales the expectation was for a gain. it would have been the first rise in three months. the other key number is industrial production. january was a banner month for japanese industrials. factories producing heavy goods based on a gain of 3.7%, well above the estimates of economist, 3.2 percent gain, so that was the first gain in three months, and certainly an encouraging indication that the slowdown in china in particular, japanese industry is holding up well. angie: thank you for that.
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nissan planning to give show hoarders -- give shareholders a boost after shares fell 25% this year. have craig trudell joining us from tokyo. tell us about the size of this buyback and how it stacks up with some of nissan's peers. >> it is pretty substantial. you look at what toyota has done year today, and they have spent more than nissan. aside from toyota, the general trend for japanese automakers is analysts tend to fall them for hanging on to their cash too tightly, and you don't see these big buybacks or outsize dividends paid by these companies, so this is a little bit of a departure from the norm on the part of nissan.
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reasoned that toyota has a larger buyback is a unique situation where it introduced a shares, and to offset bought back new stock. this is a big blue -- move by nissan since 2011. angie: adr surged and friday trade, but what other moves does nissan have to boost earnings and lift share price? >> it has a new pickup truck in that they'reet counting on to get to 8% market share in the u.s. it is a challenging situation for nissan because they're starting from close to zero with their previous pickup truck. the other models it is counting on to boost earnings further is
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suv's, you saw a huge jump for the rogue in the u.s. last year. they are trying to parlay that success into more sales in europe and also in the chinese market. you really see a lot of growth in the segments worldwide. for nissan, it is a player, but has ambitions to get bigger and will add some production here and japan to crank out even more of those types of vehicles. thanks for that. sharp reviewing the terms of the $6 billion deal with foxconn. the two sides went through the list of liabilities that could top 2.6 percent. bottom third of your screen, shares down for sharp. our technology reporter joins us from tokyo. what is the latest on these negotiations.
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.> good morning we know the lawyers and bankers have worked to the weekend to get the deal done. harp president and fox foxconn's chairman were planning to meet in person, but the terms of the deal may have to be revised. >> what are the major sticking points? >> something called contingent liabilities, potential cars that sharp would have -- potential costs that sharp would have to be able to book. angie: how is this all going to be resolved? >> today is the deadline for foxconn's offer. since the agreement has not been signed, either an extension for the deadline or a new offer on
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the table. major material change to the terms would require sharp to go back to its board and get the theoval, but the longer more it reminds people of what happen in 2012 were two companies were in talks over a lot less substantial deal and could not come to an agreement. angie: just watching those shares fluctuate, down 4.5% now as we speak. thanks. checking other headlines for you this morning, a few minutes into the session in tokyo trade, nintendo shares falling a must 4.5% after an outlook on weak sales and a stronger yen. net income $150 million, the do 1% below target. it highlights next month's release of a new game for its mobile.
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tradershe largest food reports a loss of 160 million u.s. dollars, comparing to a profit of $84 million a year ago. -- planningcontrols to spend more than $3 billion on a retail and leisure project outside paris. theme city will include a park and hotel, for shopping and conference centers. sights beating disney and the themepark business. this is his second major deal. in january, he agreed to buy legendary entertainment for $3.5 billion. next, emerging markets have been overlooked recently, but some say it is time to jump back in. does j.p. morgan share that view?
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we will get that take up it is very short break. ♪
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angie: welcome back. it is 9:10 a.m. in tokyo. the un security council discussing new sanctions on north korea after china indicated it would support them. beijing's korean envoy says china would back any plan to promote stability. the security council is debating a u.s. resolution on the recent rocket launch test. new sanctions could include inspections on fall ships baning to and from korea, a on mineral exports, and heavy restrictions on senior officials. aung san suu kyi is facing a revolt. nationalistbuddhist protested against amending part of the constitution that barred her from the presidency. anyone withut lies
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foreign families from the post. arehusband's british, as her two sons. she has been negotiating with the army to suspend the clause. of and facing the prospect grand alliance after the general election left no party with a majority. the prime minister is expected to finish ahead of the pack, but will have to negotiate a coalition with potential two other parties. they include its traditional rivals. the outgoing government suffered a huge loss of support, voters angry at spending cuts and taxes. this is bloomberg news. the emerging markets debate is heating up. the bulls say valuations are too cheap to pass up. are looking at whether this is a trade of the decade or value trap. seem to face fewer
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headwinds. oil prices have stabilized. china has stepped up efforts to .upport growth first, valuations, dropping 30% over the past three years, shares have only been cheaper six times than today's level. in the bond market, emerging economies also a standout with $7 trillion worth of global debt guarantees negative returns. it is timeays that when to concentrate on the positives.
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that creates a fantastic opportunity for investors avoiding turkey, russia, south africa. cheap violations aren't enough to drive a rebound as the outlook for global growth the teary aids. citigroup's surprise index shows indicators from jobs to manufacturing in developing nations have fallen short of expectations since january. global trade has remained stagnant with emerging-market economies not getting a lift from exports. 11%. exports sank south korea shipments tumbled 19%. ubs is a rising debt burden will away on emerging markets, weaker earnings, and tighter lending conditions, making it more difficult for companies to repeat a their debt. toy may prompt governments
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boost borrowing costs for everyone in those countries. the jury is still out. angie: let's get one more opinion. us -- joining us is laura fitzsimmons. where do you stand on emerging markets? >> we are more in the mood of selling rallies. we have seen some of the base with aggressive shortcomings and emerging-market equities. we probably still have more of that moved to continue. for us, the fundamental still don't stack up. you have a huge amount of leverage within the system, and that will impact e.m. going forward. that were not in the mood yet to be getting back into
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emerging markets. we have a more cautious stance on the sector at the moment. the short covering move could continue, fx but in terms of emerging markets -- but in terms ,f emerging markets najib fx the market strengthening there. we are deftly in the mode of selling any rallies we do see because of the stage we don't think that's justified. we expect to see a stronger u.s. dollar into the middle of the year, where we expect the fed to hike rates in june, even though we admit that call is probably a little bit under the water, certainly the number we saw on friday night, and potentially a strong number at the end of this , for up to 215,000 added us there could be signs emerging that we might make the fed feel more comfortable in raising rates towards the middle of the year, but right now the global backdrop is worrying. look atwhen we manufacturing inventories we are
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seeing built up in some parts of emerging-market asia is concerning forces well because we don't think that the mind is supported. -- the demand is supported. angie: is it fair to tar everyone with the same broad brush stroke or a are there certain bright spots? i think in that case you are right. you need to be selective, but for us in terms of looking at that asset classes a whole, stilles or fx, we are cautious because we don't think the fundamentals bode well for that. at the same time, there will be opportunities. india is in focus today. when you have the situation of oil importing countries, they have different dynamics that have benefited from the recent big move in oil. there are different stories for a number of different countries, but what we are seeing is that the markets will tar them all with the same brush, so you have to be aware of that macro
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strokes that can create difficulties for fund managers. your last guess was talking about you can look at emerging-market bonds, and from a yield comparison perspective they look enticing, but i think money market managers will be more inclined to look towards australian or new zealand government bonds, where the ratings are stronger and they feel more comfortable with the political stability and the economy as a whole, so i so think there are better opportunities and getting back into emerging markets right now, and sabr ones as well. what are they? you mentioned australian bonds, higher yields for risk, but were also waiting rba central bank to make a decision, and there is growing thought that maybe it's going to have to cut more divergence in the central bank universe. definitely the market
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pricing in two cuts in australia and new zealand for the rest of the year. and jp morgan, we only expect the rba to deliver a cut, but there is affairs that rba will have to return to the easing table, and there are more downside risks. we are aware of our exposure to china, but the recent price and iron ore has helped the market somewhat in feeling that the rba can be more patient at this point, but what we will find is that when you look at how many global bonds are trading it negative rates, australian still looks good even if you have another 25 or 50 basis points cut. angie: we started off asking you e.m.u are bear on where are you bullish? were feeling constructive about the u.s., some strong expectations for the numbers this week, and we do think the number on friday was an important turning point.
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markets will continue to price and back in some of those hikes that they priced out for the fed. on the back of that, it is hard within the rest of the g 10. it is clouding the outlook for sterling and the euro. we have seen better selling across those pairs and will continue to see that until we get some clarity, but for now the dollar wins in that scenario, and that's where we continue to look. angie: good to talk to. thank you for joining us. nissan just started trading, it's shares surging, 11.25% is to after the carmaker give beleaguered shareholders of boost, buying back $3.5 billion in stock. after adding capacity over the years, japan decides
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to free up cash to buy back shares. shares continuing to extend gains this morning. the japanese yen is causing disagreement among forecasters. we will have details after the short break. ♪
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these are your fx headlines. g-20 was an overall success. policymakers have been adjusting more freely versus the dollar. one interpretation is that the pboc may return to a plan outlined last year to use a basket of currencies rather than the dollar as the main reference.
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the yen's biggest rally and seven years. forecasters split on what is next. they are the most divided about the currency in a year. defied predictions and rallied more than 6% in february, the biggest surge since 2008. the gulf has widened between forecasts, barclays projecting a further 16% rally to 96 per dollar by year in. goldman sachs predicts a 14% tumble to 130 in 12 months. some see it asy, the make it or break it event. this time, may be no different -- budget should compromises and fiscal prudence. risen 18ields have basis points, increasing on six occasions, sold three times, and were unchanged ones. bonds have suffered the kleins
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as -- suffered declines this year. those of the stories driving the forex markets this morning. shares are tanking in australian trade after the troubled law forum reported belated results. millionf more than $600 , and most of that was write-downs, wasn't it? >> that's right. a huge impairment charge on slater and gordon's business, the professional services division, $624 million write-down. there were questions over its and thency practices regulatory environment in britain changed as well, so a downf pressure on them,
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almost triple the market capitalization of slater and gordon. the ceos saying that today's results were very disappointing and offered to quit, but the board rejected that offer saying that he is the best man to lead the revival. angie: this was also late? the interim result was due late last week, and shares were suspended since then. theyr and gordon saying have not completed their assessment of how bad things were. now they know and have released this result. 18%.a look at shares, off of the open, 40% so clawing back losses. they do have a plan to cut debt and staff in the u.k., but there is potentially worse to come.
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they could no be the subject of some class actions. investors are apparently unhappy, believing they were misled over profit expectations in terms of investigations, the regulator in australia has been conducting a review into the , nowntancy practices understood to be wanting to take look at the first half result as well. angie: paul allen at a sydney, thank you so much for that. slater and gordon down close to 19%. the rest of the markets trading, g-20 commitment to do more to boost growth welcome by the broader market, nikkei to 25 climbing 1.62% higher despite the yen snapping a three-day decline. kospi also declining -- gaining. seeing a broad-based rally on the first trading day of the week.
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india's finance minister faces a balancing act later as he sets up the latest budget. we will take a look at what to expect when "first up" returns. ♪
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♪ angie: right back to life on a monday morning, lion city getting set average rating and about half an hour. you are watching "first up". top stories this hour, marketing to be welcoming the g-20's commitment to do more to boost growth in japanese and western equities, starting the week higher. japanese currency rallies. while trading below $33 a barrel in new york. over managed to fix fears to volatility at a g-20 meeting. attention turns to national people's congress next weekend.
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there will be an outline for the plans of the year ahead and everything from the economy to the education. chinese finance ministers signals more fiscal support is on the way. and in finance minister will present third budget this afternoon. advisers say, it comes to a new fiscal deficit target. estimate growth between 7%-seven .34%. foreign half percent to 5%. rise for government workers as a measure expected to be announced as ms. to shore up infrastructure. journalists.y of this is bloomberg news. markets in asia pacific, we have green arrows across the board here. after g-20 said, let's do more to boost growth. climb thanks to nissan. among leaders on the board today.
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another stock is gaining. australian equities a little higher. it's about what g-20 said over the weekend in shanghai. finance ministers saying that the governments around the world must do more to boost global growth. central bank should take a step back. that's the headline from this weekend's meeting in shanghai. david was there. what really stood out for everyone their? get-go, they really worked to really dampen expectations of massive coordinated's fiscal effort. if you look at how they were this statement, it is not the most exciting to look at on a monday morning, but there are problems in the global economy, but, the underlying fundamentals are not dire enough to merit a big bazooka, if you will.
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this is basically a list of the key risks of the global economy. this will basically be a rehash of something that came from g4. two other things mentioned on top of this, the shock of a potential grexit. an increasing number of refugees in europe. the refugee crisis. those are the two new additions to the key risks. theite this, they play down volatility in the markets. they say, markets tend to overshoot. it does not necessarily reflect the health of the global economy. christine lagarde came out and said that central bank still need to be fairly accommodative because what is happened is that conditions have heightened because of all of the safe haven. that brings us to this one which is central banks are not superheroes. they can only do so much.
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it is now up to governments to provide the additional support, in case things to worsen from here on. angie: what about currency wars? what do they say about that? especially with negative interest rate here? david: that was a key topic. what was interesting was people wanted to know what china's intentions were with the yuan. i think the japanese arrived late saturday, and the focus shifted to them. because, obviously there was a need to clarify attentions. i think a key message when it comes to currency and currency wars and currency devaluations was that it is ok to have a policy that might have a side effect of driving down your currency. but, it is important to communicate it with others. overall, the message that they put forward was this, we reaffirm what the committed to before, we will not involve ourselves in this, but, if it does happen to fall, the
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currency, then at least we have told each other. -- these how this comments on currency devaluations and how it is to have it, but not really. the best way to stop currency devaluation is to refrain from a completely if your monetary policy measures would have an effect on the rate of currency. inform your colleagues, inform your partners in the g-20. so there are no surprises. >> i think the language on exchange rates is very important. it was an important commitment in turkey. to refrain from competitive devaluation. it is important that in this communique, there is an additional commitment to consult and that means that it is a commitment that will keep each other informed and that we will avoid surprising each other. david: i think that was a key thing, avoid surprising each other. here, someone had
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to come out and clarify that intentions to get deflation away, not to get the yen lower. everyone is supporting what they are doing. that is the public message. angie: communication critical, here. finance ministers meeting and shanghai is over, but the economic so sick was china. in beijing, there is a crucial test of policy reform at the top legislative meeting of the year. we have heidi with all of the details. they managed to calm the markets and volatility, at least for now, but there's still a lot of work to be done here. >> remember, lastly, we had two days where the shorthand last 10%. we will havecalm, to see whether continues into the new trading week. certainly, the press conference that was given on friday out of the g-20 managed to serve some of the nerves. aboutked about talking
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expectations of you one depreciation. he dismissed ideas that this was a competitive devaluation. the outside world focuses too much on these metrics like capital outlet flows. every will stabilize. he put on a brave face. the fact of the matter is, we are looking at china as we go into the twin sessions, the mpc and also the people's meeting. in an unprecedented set of challenges for the economy, growth is coming in at the slowest in 25 years, almost every single metric is throwing, industrial production, manufacturing. even consumption which is meant to be the next great growth strategy to take over from investment in manufacturing. that is not growing as fast as it needs to, to be the new normal. the new economy. certainly, policymakers are faced with quite a set of challenges, the big thing, i think going into this year's mpc will be the issue of overcapacity. we talked about it a lot, the zombie companies, and so we sunday consolidation, that need
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essentially to be allowed to die. but of course, the issue is what happens to all of those people that are out of a job. ubs calculating that a template reduction in overcapacity sectors across six sectors could result in 2 million job losses. the question is, what happens to these people and we know that for beijing, they very much correlate. keeping unemployment at a very low level with social stability. though,omestic policy kind of contradicting the international goals and aims of china. kind of stuck in between the two. right.that's that's about what we have been talking about, what can central banks to get growth going? we have had six interest rate cuts since november of 2014. a number of rrr cuts. they have limited room to move. outflows have been a problem. with the weakness of the yuan. if they cut rates further, it will exacerbate the problem and customer panic in the market.
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whileinteresting because monetary policy remains prudent, there is a slight easing, which means more fiscal support potentially in this year's mpc will come up, we can see that in the widening budget deficit. we can potentially see that and more macro conventional measures. so, more like stealth tweaks that the government can take. surly, we are not expecting any of these big bank reforms, and bank of america, maryland thing, mpc, this is not a form for any sort of the policies surprise. it is likely that we will get a re-hatching of essentially what we already know, the gdp target for 2016, 6.5 percent to 7%, inflation target at around 3%. so, we will get a lot of what we already know. going to bee keeping an eye on what they will do about overcapacity, and also the other two big things, which is environment and innovation. they have been wanting to drive into these new areas and create a so-called new normal for some time now. angie: let's take a look at what
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else we are following for you on bloomberg this morning. citigroup has become embroiled in the world's football corruption inquiry, and has been subpoenaed by the u.s. attorney, of its possible role in bribes, paying to international officials. feed the is under investigation for alleged bribery and corruption in the 2018 and 2022 world cup awards. claims that bribes money pastor a number of big banks including citibank and jpmorgan. the indictment does not accuse them of wrongdoing. one of china's most influential voices on social media has discovered the cost of criticizing the president. internet regulators have shut down the online account of retired developer, officials has posted a legal information and has had a negative impact. it was followed by more than 37 million people on various platforms.
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he a criticized the president's chinese media outlets to preserve the authority of the communist party. apple has lost a major battle in it had take more with samson after u.s. appeal courts throughout a rolling in its favor. it reversed a decision to award apple $120 million in damages saying that samsung did not several patents, including the slide to unlock and autocorrect features. however, it upheld a decision against apple for infringing on samsung's patents. it is awaiting possible consideration by the supreme court. opening ins finally italy. local firms when the license to operate the brands and the first starbucks will open in milan early next year. it says that it intends to operate in italy, but has declined to give a target number. starbucks acknowledges the challenges of operating in the home of the coffee shop, saying
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that it is entering italy with civility and respect. that was look at some of the stories that are making headlines. angie: thank you. and yet will be in the spotlight later, with the announcement of the latest national budget. finance minister has already said that india must review its fiscal deficit target in the coming years. we have shery ahn taken a look ahead to the speech. what will be the focus today? atry ahn: investors looking three key points here, the deficit, but also the allocation for infrastructure spending as well as banks are capitalization. most of all, it will be about shrinking the fiscal deficit. which is already among asia's largest. the deficit right now, the aim is to shrink it by 0.4%, the next fiscal year, 3.5 percent gdp, but eventually targeting a 3% of gdp deficit by march of 2018.
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now, we are hearing from the finance minister or at least his advisers, is that this might be tough because india is still has to face some scheduled a increase for employees, not to mention infrastructure spending. this team of advisers, they say that we might see the deficit to zero point.2% three percentage points of gdp each year over the next five years. that could be more feasible, but that would be taking the gap to 3% of gdp only by march 2021, instead of 2018. angie: discontent has been rising in rural india. what are they expected to do to address that? shery ahn: right now the problem has been the drought. the back-to-back droughts. he is being pressured to boost more spending on social welfare programs. of course, this is coming ahead of key state elections. but, on the other night, yet bond investors wanted the
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country to tighten the belt. so, sticking with deficit reduction goals, it could be tough. now, the central bank governor has warned that an undisciplined budget could boost bond yields which would harm india's credit ratings and we have already seen the country sovereign bonds turn into asia's worst performers this year. so pbs bank is now saying that higher spending on bigger public sector wages, not to mention pensions and big recapitalization, all of that, can make it really tough for fiscal consolidation plans for prime minister. angie: thank you for that. who are the favorites of the academy awards this year, more on that when "first up" returns. ♪
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♪ >> these other the stories making headlines around the
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world today, moderate candidates have one all 30 parliamentary seats in tehran. acb victory for president. results follow a high turnout in the capital and fridays polls. seen as a referendum on around nuclear deal with world powers, the reformist coalition also has an early leads in a separate vote for the assembly of experts. that is a senior clerical body that protects iran supreme leader. spacex forced to abort the latest launch of the falcon nine rocket at the very last moment. to put aon, plan satellite into orbit, and attentively and the booster on a floating barge. it failed on three previous attempts. and elon musk's company play down expectations of success. not clear when they may try to launch again. security is tight outside of the dolby theater in los angeles. 88 academy awards are getting underway. extra measures were under place for the arrival of vice
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president joe biden. he is there to introduce a performance by lady gaga. this year's oscars happen it by controversy over the lack of diversity of hollywood. all of the top acting nominees are whites. leaving will smith, spike lee, and other stars to boycott the show. powered by over 2400 journalists in 150 bureaus around the world, this is blue news. let's stick with the glitz and glamour of hollywood's big night and try to spot the big winners, joining us from los angeles is paul. senior media analyst at concorde. who is going to be the big winner tonight? paul: it is going to be a really exciting night, i think the odds on favorite is the revenue. clearly this is a movie that turned a lot of money at the box office and is gone a lot of critical acclaim and of course, leonardo dicaprio, this could be his first oscar win tonight, even in his been nominated before. so, this can be has not, it
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could be a big night for the movie ended big night work the director. the one last year for "bird man." if he were to this or that would be a really big deal. somewhat unprecedented. i don't have another director who 12 years in a row. for best director. that is the movie that is a big favorite tonight. obviously, there's a lot of big movies in the mix, and there's a lot at stake, in terms of the prestige factor, going forward, the value placed on these movies once you get an oscar, the value goes up of these titles. the value goes up, and it means a lot for business, not only there in the u.s., but globally. growing interest out of china on all films coming out of hollywood. paul: correct. china is such a huge part of the box office as many, many films, particularly the big blockbusters coming out of hollywood. and so, it is a vitally important movie market and the revenant has gained $400 million
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worldwide a lot of fat from china. and the national arena. many oscar movies are smaller films, movies like brooklyn. room. spotlight. and of course mad max. and the martian. they did very well internationally and in china. those are movies that not only did well at the box office, globally, and of course in north america, by virtue of oscar nominations and their profile raising, after the actors and actresses were nominated, there is no downside to getting an oscar nomination. it will be interesting tonight to see who comes out the big winner, a lot of nominations for leonardo dicaprio's movie, with 12. a lot of good movies in the mix this year. a lot of great nominees. angie: do they china's influence is going to change the mix of the nomination at the oscars in the coming years? as you said, a lot of smaller
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films, but it is the big box office, the things that blowup, the things that really draw in an international box office audience, that seem to be the big hits. but what is strict, interesting about leonardo dicaprio smithy, it is done two nationally, and it is not a big blow them up movie. there are a lot of movies doing well internationally and in china that are not necessarily what we think of only think of movies that do well in the international market place. of course, a movie like brooklyn or room, let's take for instance the big short, $68.5 million in north america today. brooklyn, 39 million. these are not necessarily movies that make a huge box office. room has earned 13 point five may dollars in north america, not a huge hit internationally. maybe over the years, lucy beveridge of up to 10 nominees available for best picture. you will get more those big blockbusters in the mix, but like i always say, it is not the box office the words, it is the oscars.
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it really should be based -- china having a great influence. angie: diversity is a huge issue. very controversial this year. diversity, it is global. there, howbig mix are the oscars going to address that? disconnect here. abi obvious the, people are talking about the fact that straight out of content -- the director of creed not nominated. it doesn't make sense to me. and those nominees nominations did not happen, michael jordan, another big snout in my opinion. starighraight movies, outta compton was worthy. not a lot of diversity at all. plenty of worthy performances and films that could have been
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addressed and could have been nominated. there is a message in the voting, there is the voting body of the academy, made up mainly of older, perhaps older people, people not as diverse and the movies that are represented around the world. maybe that will change over the years and also, a lot of academy voters may not have worked on a film in a really long time. so, there might be a disconnect there, as well. nonetheless, some great movies nominated tonight. but yes, there is a lot of controversy over that lack of diversity. same thing last year. a lot of people are talking about the same issue last year. warnock at a keep you too long from your oscar party there, and we will let you go. thank you so much for all of that. as they watch the oscars alongside you. up, and of the line, stepping up production of
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minivans, find out if investors like that idea when "first up" returns. ♪
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♪ angie: welcome to the stock exchange. newly, new competition. not much right now. angie: up to 1.6% of stocks. [laughter] angie: we can all go home now.
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do you guys want to add anything to that? >> we are all in the green today. >> massar motors, talking about this because nikki is reporting that way they could be say goodbye to the minivan. and they cannot be rolling out some models of the vehicles. the popularity really has not been able to catch up with the suvs that we been seeing which have had more of a global appeal. rising 6.3% today, but it is volatile, fallen 30% this year. >> [indiscernible] opening a new store in kyoto in march. let's go shopping. we can support the japanese. >> field trip. >> suv's and cosmetics. angie: we are at least all in the green.
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thank you guys. on "first for us here up" for today. "trending business will close up next. >> let's have a look at what is going in the opening. g-20 comedic eight pledging to revive growth. looking at all of that. and the market opening. indian budget today. a big one. a big day for the finance minister. he tries to deal with some of the many difficulties facing the country. also following what is trending on social media, all on trending business in the next few hours. ♪
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rishaad: it is monday, the 29th of february. this is "trending business" with me, rishaad salamat. ♪ live in tokyo, sydney, and mumbai. stocks rising across asia. leading economist pledge to do more to strengthen jobs, rising fears about japan. toking through the weekend salvage the deal, foxconn and sharp, won't


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