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tv   Trending Business  Bloomberg  March 1, 2016 8:00pm-10:01pm EST

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♪ it is wednesday, march 2. i rishaad salamat. business."trending ♪ we are watching movies, and negative view, cutting its ratings outlook, and government debt rises, and they say beijing still has enough to move. on the road to the white house, hillary clinton and donald trump both seeming to do well on super tuesday, tightening their grip in the presidential race, and beer,rld's best-selling
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with the marriage of ab inbev and sab miller. i @rishaadtv. amalso, don't forget .trendingbusiness the white house favorites are on track to consolidate their positions, and michael is in new york. e, what is ultimately at stake today? mike: about half of the votes needed are up for grabs today. favored to get those delegates. he is not expected to get the thatation, but it will be he is expected to pull far enough away. on the other side of the race, a similar story. hillary clinton is not going to secure the nomination, but she
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can make it very painful for bernie sanders to continue to attack her. in fact, bernie sanders has already spoken tonight, and his night is almost over. guess we should ask you, what happens when the dust settles? what happens next? we will have to see how many delegates donald trump wins and if any of his rivals win any states. ted cruz, one of donald trump's main rivals, his home state in texas is in play, and if he wins that state, he should be able to continue on. tonight, the home state of marco rubio and the home state for governor john kasich are both on the ballot on march 15. march 15 is the next big day on the republican side of the nomination. on the democratic side, we will be able to tell a lot by how
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bernie sanders approaches this race. if he dialed back his attacks on hillary clinton, it will be a clear signal that he has all but him toe race, but expect focus on his issues of campaign-finance reform and the reform of wall street. as you werel, talking, we got this breaking news, michael, hillary clinton and donald trump projected to win the primary in tennessee, so the momentum grows. unexpected, not. tennessee was seen as a strong place for donald trump and hillary clinton on their respective sides of the aisle. tonight, texas, how well ted cruz does there and to see in virginia if marco is competing well in virginia with donald trump, and vermont, it looks smallohn kasich may get a
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win in vermont. it is a tiny state there, but at this point, a win is a win for case it -- for kasich. rishaad: we had clinton tennessee, andn news is coming through. i want to get to the australian treasurer, scott morrison. this is him talking right now, talking about the economy transitioning, talking about the economy growing, and saying what they would be doing, and spending, which they regard as absolutely necessary. this expansion coming despite global follett to the two. that is scott morrison, talking at the moment in the australian market. the markets, because we have got the greater china was getting underway, singapore, taiwan, alicia just coming on line -- singapore,
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taiwan, malaysia just coming online, and david has more. we are up about 10 points. this came in higher than the numbers from economists. this is where rates are at the moment, and you see the currency, if you do understand why we are getting a bump up, the lower currency is helping industry, and then you have lower rates helping consumption. now, you break these down further, and this is the government bureau of statistics coming out with some numbers, and it is really consumption. that is really be key driver for both in australia. fourth quarter, the numbers, and capitalalso despite the
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formation on the way down. in other words, heavy industry. capex? no. it is opec. having a look at the two-year , and, that is where we are what traders are saying, we have been lulled to sleep. we have a downtrend, but we have been stuck in this range really for the most part for the last six months. some are saying we have to wait. this is the level for the aussie dollar. having a look at equity markets, , and we areg story looking at the market reaction. moody'seen this move by , which has cut its outlook, not the rating, the outlook.
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equity markets doing this at the moment. it is risk on. u.s. on wallin the street, the best since january 29. volumes are still pretty light, but have a look at that. three and a quarter percent. the japanese yen, and we are seeing a move back into equities and also a move back into high-yielding currencies, like the aussie, which i just showed you, and the kiwi, and these commodities. thank you for that, david ingles is. this news breaking out of moody's, a negative outlook for china, and let's get to the senior vice president at the investor services, joining us now live from singapore. what was behind this? >> there were three key reasons why we change the outlook, and one was related to fiscal
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strength. we expect to see further increase in line with the fiscal policy, and we are seeing as well that the governor's balance this is not currently the governance. with regional, local governments. the government could bear some responsibility in case of financial shocks, so in these scenarios, the government debt would increase sizable he. thesecond driver relates to following foreign-exchange reserves that we have seen over the last 18 months, and again, we expect some of that to continue. there is possibly some weakening credit ability, confidence in the ability of the authorities to rebalance the economy. third relates to both. it is really about the challenges to achieve world ranging reform programs, one
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maintaining growth and financial and economic stability, so altogether, we see significant buffers, physical and foreign-exchange buffers, which are eroding for china, so we think that the government's ability to absorb this has diminished somewhat, and that is what is signaling this negative outlook. marie, to us about the market and the volatility, particularly when it comes to chinese equities. does it concern you that this could spread to the wider economy? marie: in the equity markets and earlier this year, the exchange rate, we have seen that potentially a sign of weaker confidence and weaker wettability of policies. therethorities have said
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is a very wide ranging reform program, and they have been ,tepped back in these reforms so that is creating some uncertainty, and that is reflected in the asset prices. keep mentioning the reform process. nobody said it was not going to be painful. isn't this the pain that china would have to go through for the transformation of the economy to one that is service oriented? a, by nature, medium-term process. the changes in the economy and the financial sector will be significant. timeare happening at a when there is high leverage, falling profit, and so the ability for the corporate
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sector, for the government, for banks, to some extent, to absorb some of the negative shocks to come with the reforms has diminished somewhat. what is it going to take? for the moment, the move is down to negative. what would it take to be more stable, and what would have to change for this to result in a rating downgrade? we would stabilize the outlook and affirm the rating if we were to see further progress, significant progress in reforms, in particular as regards to restructuring in the enterprise sector, and financial reform, in general. we think that with reforms in these areas, the increasing leverage in china, in general,
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can be levered, and that we would see as a significant -- as a sign that we could stabilize the outlook. we would, on the contrary, downgrade the rating if we were evidence of these challenges between achieving reforms and maintaining stable growth. if we were to see maybe some setbacks on reforms, if we were to see a significant flattening somepital outflows to stem of the pressure on the currency as we have seen in the last year or so. thanks very much, indeed, marie diron, from moody's, cutting the outlook, for china. nets -- let's now have an outlook at some of the other
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stories. at sab miller and ab inbev, and they could be as pure as the driven snow. we have more. official, one company agreeing to take full control of the world's best-selling beer, buying the sab miller stake in their joint venture for about $1.6 billion, and that figure is less than previously thought, and it is less than some estimates but analysts, and they say the deal needs approval from the commerce ministry. analysts at goldman and bnp paribas say ab inbev may be able to secureat stake chinese antitrust approval for its acquisition of sab miller. says it was making progress with chinese regulators with getting that ok for the industry's biggest ever deal. and in the carmakers, japanese
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up. honda among the leaders as sales jumped 13%, which did beat are seeingand we shares up. american consumers are taking advantage of cheap gas, lower interest rates, and deals. nissan sales rose 11%, beating also was, and toyota up with a 4.1% increase. it was just a bit shy of the forecast, so the results here overall, the u.s. could see sales, aecord year for bright spot in an economy that has slowed of late, not everyone in joint the party. an unexpected decline, but shares rose as investors liked the strategy of selling fewer low profit vehicles into rental fleets. finally, taking a look at one company rising after they took a to settle0 million
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claims over allegations it had prides and kickbacks. this is the largest in american history. this is a maker of endoscopes involved in superbug outbreaks, one business where doctors and hospitals were provided lavish meals, balloon trips, winery trips, and more. there were billions in medical equipment sold between 2006 and 2011, and prosecutors say a portion of that was by offering financial investments to hospitals and doctors. it was triggered by a worked aswer who had a compliance officer. this is a story we are watching today. rish? rishaad: thank you, yvonne. these are live pictures of hillary clinton at the ice palace doma studios.
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she is projected to win four states, and she has been already declared winners -- winner in some. donald trump is rejected to win massachusetts. and that is a republican primary there, as well. "trending business" is back in a ♪ -- right after this. ♪ ♪
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rishaad: all right, you are back with "trending business." loretta lynch, talking about opening an iphone, they said the company has been doing the same for years, and hearing from both sides, pitting the tech industry against the government. we have been tracking all of the developments. reporter: it is a question of
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cyber security versus national security, and which is more important, depending on who you ask. u.s. attorney general loretta lynch, as you mention, spoke to this, and with our own emily chang, she basically said she respects apple and respect tim cook a great deal, she said, but she also said that his views will be here to in court, show -- so she said it will go forward. the u.s. government says that apple should not be able to decide security for everyone for the millions of people who have iphones. millions of iphones have been sold. as for americans, safety is more important. apple says it cannot be forced to write code that would force it to weaken its devices, and they say it is protected by the constitution, a freedom of expression, and they also say
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the government is overstepping its authority in that california case, and apple's lawyer was also on capitol hill, and he apple is forced to write a new operating system, that will affect tens of millions of people's security, but it will not affect terrorists in the least. he also said that apple has no sympathy for terrorists. he wanted to get that in there. and apple scored a win in a separate court case here in new york. it turned out a federal judge ruled that the federal government could not force apple to unlock a phone held by a drug dealer. we will wait to see what people are saying, but this could end up in the supreme court. rish? rishaad: ramy there. and volatile times. business."ending ♪
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♪ a bit of breaking news, the premarket in hong kong, one company jumping 25% after agreeing to live that essay the miller-- to buy that sab state. the hangck look at seng, and we are up at the moment, 1.9%. well, it is market volatility. poor sentiment, and these two sending investors towards fact, government bonds. start, let'se we talk about what we had about half an hour ago, which was moody's coming out and looking at china, the outlook now negative. does that change anything in your view? robert: not necessarily.
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i think the market is pessimistic about china. i think when you look at china on pricing, they remain relatively stable. where do we go next? robert: they have a lot of opportunities and we are looking pboc.e cuts from the exactly, and stimulus coming. they have ammunition left. they can stimulate the economy. when we look at bond opportunities, you have to be selective. it is about credit. we have stock connect. would bond connect make a difference to you? robert: they have changed regulations, and they can access the market, and that is a big step forward. that gives us access to the liquid part of the market, giving us much greater access to bonds in china. rishaad: what are you looking at? robert: across the market. we look at bonds, we think of
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high yield, there are lots of opportunities in the sort of proxy part of the sector, as well. from china to the u.s., where we were perhaps factoring in a couple of months, maybe four rate hikes, and this year, that has all but vanished for you people are wondering if december's rate hike was a mistake also. what is your view? robert coleman when you look at the u.s. market, the market is pricing in about one rate hike towards the end of the year. i think the pessimism we have seen -- rishaad: is there too much negativity being mark -- factored in? robert: i think the pessimism has gone too far in this case. we expect to see more stability as we get through into q2. i do not think we will see markets pricing in another rate hike until before the end of the year.
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there are some stirrings of inflation, but other than that, it is fairly otherwise easy as you go. robert: stability in terms of growth. the employment situation looks pretty strong, and as you mentioned, we are seeing some peaking of inflation. we saw cpi released last week, the core cpi, and it was a little stronger than expected. well, withpan, as negative rates, and getting that bond yesterday, the negative yield, very extraordinary. robert: the bonds are a challenge for the market, in general. the markets have roughly $7 trillion in bonds. think that isust a haven? robert: people are
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fearful because they think the interest rates are going to go up. they need stability in their portfolio. rishaad: -- right. we have to take a break. and how is the media reacting to super tuesday? ♪
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♪ rishaad: a look at our top stories, asia pacific stocks, a rebound as there is positive sentiment on the american economy dampens the demand for haven assets, the japanese market jumping as the yen weekend. earlier, wall street rallied into a seven-week high. moody's cutting its outlook for china rating to negative from stable because of rising government debt and declining reserves did they are seeing state debt rising to 43% of
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state debt by next year. they say the beijing policies to statet growth may affect owned enterprises. and the leaders in the presidential race are on track to consolidate their positions super u.s. votes on tuesday, donald trump the projected republican winner in at least four states, and hillary clinton looking to take and bernie sanders is expected to take his home state of vermont, and there is expected high turnout everywhere. ofg kong up with a gain 1.9%. let's see what is going on here, david. david: a lot for investors today. we have the gdp report coming out, and we will talk about that in just a moment, and you have developments in china. the short of this is the ability for the government to take on
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liabilities coming from local governments and maybe be state owned enterprises, and also maybe a drawdown in reserves. this is before they run out of reserves, not that they would, relatively speaking, in the next few months, but that is a consideration given the speculative outlook. and up over 2.4%. there are risks back on the table, and the risk appetite, dollar, and the aussie aided by the gdp report. also, the pboc refraining from open market operations for the second straight day. perhaps a continued reflection there of the cut, and the apple the community. in the system. one thing before i go that i want to mention is china resources. can we get the stock up? ish was just talking about
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that, up 25%. and just tot 30%, show you how volatile this stock is, normally, that would be the and last year, i believe it was 55%, but that said, a simple story here. beer brand,ling $1.6 billion, and analysts have come out to say it is a bigger discount their, or, again, the world's best-selling beer. not for myred down, taste, i am not the market. rish? thanks, david. it is the biggest primary day, super tuesday in the united states, and the candidates on track to consolidate their positions, and megan murphy is
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live for us in new york. what do we know? what is the latest? megan: i think we could all use a beer. have hillary clinton with four states, donald trump with four states, and bernie sanders with one state. what we are seeing is a bit of what we expected, that both hillary clinton and donald trump would have the ignites, but what is unexpected is we see john kasich and donald trump running close in vermont and virginia. dogld trump and rubio in a fight there. that is going to be want to watch, and all eyes on texas see if ted cruz can hold his home state. texasdoes not win tonight, his campaign is pretty much over. while you were talking, we were looking at hillary clinton and the rally in miami. she is projected to win arkansas. it does seem this result with
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solidified not just hers but also donald trump's position as becoming their respective party nominees. : it is pretty nuanced. for hillary clinton, looking at some of the huge margins she has in the south driven by african-americans, and she is doing well with women, but for donald trump, it is more complicated, and here is why. even if he does win every state but texas, and that is still up at this hour, he still faces a park that there is a huge establishment wing of the party that will not support him, and they say if he is the nominee, they will seek other alternatives. in fact, many say they would be willing to take it all of the way to the convention, even if he builds and commenced delegate lead, so that is the real issue here, and the republican party is facing a crisis that we have not really seen.
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after the teaears party revolution, and we are still seeing a real split in the party. rishaad: you talk about going straight to the convention, but who has a shot of fighting on? ted cruz? marco rubio? john kasich? bernie sanders? megan: let's start with bernie sanders, an interesting story. he raised $40 million from small donors, and with that amount of money, we expect that money to continue. he can stay in the race as long as he wants to. he is out raising her. he can continue to stress income inequality. to stay on the republican side, who can stay in? needs theo establishment donors to get behind him. he has some big donors, and john kasich is going to be calling every donor to say, out of this
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motley crew, i am the only one who can win, i am the only one with a positive message, and i am the best want to represent this party, and he will take it to the conference, if he can't. rishaad: what is next? virginia will be crucial. if rubio can score a win -- he is really hoping that northern virginia, just rust the river from d.c., will help his campaign. texas is huge, and oklahoma is proving to be interesting, tight with bernie sanders and clinton rubio and donald trump, so we all have to see how it adds up. it could be a much more complex picture when we wake up in the morning. megan, our bureau chief joining us from new york. and it comes to social media, ros? a look at take
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hillary first, hillary clinton. twitter, anddle on the word today is super tuesday. she has nearly 4.5 million tweets, 5.5 million followers. the pair that to the front runner of the republicans at the moment, donald trump. we know he loves twitter. that is his social media of choice, and he had more than 31,000, 6.5 million -- rishaad: how does he find the time? ros: you only have to use your thumbs. hillary clinton is telling people where to vote, when the polls are going to close. she has been asking for money, saying one dollar right now, let's win this primary together, and she is also getting exclusive updates from the headquarters, so she is using twitter to work for her,
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definitely part of her campaign. rishaad: it is the most trending has tag at the moment. the comments being made, most of them have not really come out directly yet and made their stance, but we are looking about ceo of cbs talking political ads and how donald trump has been good for business, and when asked if he was supporting donald trump, he said, no, i am not taking any type, but it has been good for them. president ofr vice another group says he is an interesting dynamic. he is talking about how much money the candidates might be spending. the next page, he says basically the democrats will spend more, but the vice of hathaway basically
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coming on a lot stronger saying his attitude is anyone who makes money at a casino is not morally qualified, laying out what he feels. warren buffett has endorsed hillary, basically supporting her in saying the wealthy should pay more taxes. and in the next hour, i will look at some of the other bernie sanders and marco rubio and their situation on social media, as well. thank you, wirthlin chin. and qualcomm, allegations that it violated anti-bribery laws. describes some special candidates. they also provide gifts to officials, including sightseeing trips and luxury items between 2002 and 2012.
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and a cofounder and former chief executive, and indicted for conspiring to rig bids for oil and gas leases in oklahoma. the justice department accuses of having two companies not bidding against each other. the companies have not been named. and shale gas, there was a value of some $35 billion. barclays shares falling the most cut itsne 2012 after it dividend for the next two years, the chief executive warning they will need more short term pain to write itself. it and restructuring would create two core divisions, including corporate and international. he said it is not a precursor to a split. and one currency coming back up after the gdp smashed
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expectations, surging to 3% on the year. from get more for him -- paul allen in sydney. what about the surprise numbers? here,a few factors household construction up, services up 8%, and the australian dollar really helping to boost sectors like tourism and education, and it looks like those scarcely believable unemployment numbers that we have all enjoyed laughing at, maybe they were credible after all, but that take a closer look at this result. the gdp beating the expectations of a number that was revised, up to 1.1%, beginning as the annualized number of 3% annualized growth, and as you would expect, the treasury, scott morrison, was quick to embraced these numbers. mr. morrison: the changing
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composition of the numbers indicate the transition in growth. it is underway in our economy and increases in both consumer confidence and improving business conditions. paul: also, as you would expect, the australian dollar did not respond very strongly after it dropped, and it does rather vindicate the reserve bank of australia's decision to hold the cash rate yesterday, as we all expected. as anytime a cut, soon, have now receded quite sharply. rish? thanks, paul. we have to take a great. more on asia when "trending business" returns. ♪
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is 2:40 4 a.m. in berlin, and these other stories making their way around the world. a vote on new north korean sanctions has been pushed back 24 hours as they want more time to can it or the resolution. the security council is considering mandatory considerations, a ban on mineral fuel, and ban on travel bans and asset freezes on senior officials. china is said to support the resolution. the iranian president says he is looking for economic growth and more investments after reforms dominated parliamentary elections. in thebegun his search car industry, their biggest non-oil sector. he says it shows the moderates want to work with the world, not confrontation.
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thechecking out of international space station after more than one year in orbit, and they have traveled more than 231 million kilometers since that time with kelly posting some special images on social media. there were extensive test following touchdown in kazakhstan, as nasa studies the effect of long-term zero gravity before mars flights that will last year's. ishundred journalists, this bloomberg. imdb on. yvonne goldman, jpmorgan, the bank of canada, barclays, deutsche bank, bank of america, hsbc, a who's who of the aching world, a so-called street sweep to make it harder for rivals to break up their marriage.
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they are exploring a counter offer. let's get the chances of the mergers also happening in asia, and with that merger, it would mean exchanges in this part of the world. and first of all, let's look at behind themon getting together. is it going to be third time lucky? that is something certainly going to happen here. looking at a key driver behind the potential transactions, and yesterday. 2008 at awere sown in time of the meeting of the g-20, when they were clearing swaps and other instruments that came into play, and that was a key driver, and along with basel iii, the banks shrinking their
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risk-weighted assets, and this is about capital efficiency, and, of course, the jewel in the crown here is the central clearinghouse, which was in the swaps business well before it was fashionable, and now it clears about $500 trillion in swaps and has effectively a very dominant share here. that is the jewel in the ground, -- crown. what does it therefore become a more attractive place? not only for frankfurt but for some countries, damaging of the attractiveness of singapore, hong kong question mark william: i think it would be easy to set yes, that this is add news for hong kong, it and you have a larger pool of capital to access, but there are issues, such as alibaba, where
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countries list where the main use is. it is probably overplayed. partnk the interesting will be around what happens in the trading side, and this will poolthe more interesting of trading new products for china potentially to look into. it is not a one size game. was going to say donald trump projected to win in virginia now. john kasich was looking good there. a will get back to that in second, but what about -- as we say, we are this pressure for consolidation, perhaps, and is this why we have the intercontinentalexchange looking at it as well as cme? o" way oft of a "me to looking at it?
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been -- it has not is defensive. after the clearing business, the the capital efficiency. you can design products, but unless you provide that capital efficient environment today, you are not going to get the business. that is what it is about. rishaad: they have got money. william: they certainly have, and this is going to be a battle royal, and ultimately, this is a shareholder decision. consolidation, not just with the asian markets, but also some of the main players, and i singapore.hong kong, william: in asia generally, it is a sign of maturity, and they are like national lives, and we have got 18 currencies, many jurisdictions, so we are talking
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weut europe, as it were, and are talking about a merger with than a simple jurisdiction, so of course, the benefits from that are much stronger. much more difficult to do it, asia wise. william: you are not going to get the synergies and the benefits, and also the balance, i suspect, as well. rishaad: someone was telling me last week, the hong kong exchange at with earnings, and singapore, -- they have not done very much with the london exchange, so would be lme be interested in the baltic exchange? would that make any sense? william: that was sort of it off market deal, as it were, and that is a dynamic to getting into a public spat.
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the drive into commodities, which is, of course, for the lme. will, thank you very much. hotels, hospitality, not one of them? we will hear, next. ♪
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: going to miami, hillary clinton are projected to win in arkansas, and a spate of states going towards hillary and donald trump, as well. donald trump also projected to win virginia, and this is the ice palace studios in miami. stronginton: america is when we are all strong, and we know we have got work to do, but that work, that work is not to
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make america great again. america never stopped being great. [cheers] mrs. clinton: we have to make america whole. we have to fill in, fill in what has been hollowed out. usa! mrs.a, usa, clinton: we have to make strong be broken places, re-stitch the bonds of respect across our country. now, it might be unusual, as i have said before, for a presidential candidate to say this, but i am going to keep being -- saying it. high believe what we need in america today is more love and kindness. [cheers]
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as is clinton: because, you know what? you know what? it works. instead of building walls, we are going to break down their ears and -- and buildown barriers ladders of opportunity and empowerment so every american can live up to his or her potential, because then and only then can america live up to its full potential. [cheers] mrs. clinton: now, it is clear tonight that the stakes in this election have never been higher. hillary clinton making a speech, projected to win five state in super tuesday, defeating bernie sanders in the south, and according to some, it could be a dominating
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these 11 superng tuesday states and possibly give an all but insurmountable lead for the delegates for the party nomination. we have got to take a break, but more to come here on "trending business." ♪
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rishaad: it is wednesday the second of march. it is "trending business". i am rishaad salamat. ♪ this is a look at what tear watching, a bear on a . hillary clinton and donald trump looking like the big winners. they have dominated the headlines and voting. moody's turning negative on china's outlook because of
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rising government debt and the pace ofrves as growth slows. getting to our top story, hillary clinton and donald trump looking like the big winners here. we can see they have been projected to win half of the contests. miami,s coming out of ice palace studios, almost like a victory speech from hillary clinton. let's get the very latest from politics.erg part of tex this is the biggest moment for hillary clinton and donald trump.
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margaret: it will be difficult for bernie sanders to catch hillary clinton. we are waiting for results from massachusetts. inshe can put him away states where he thought he would do strong, it will only fuel that momentum. rishaad: we were waiting to hear from texas, hillary projected to win there. was the absolute favorite being governor there, not one, if he had texas, he would have seen the writing on the wall. state, soit is a huge
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to deny any big state from donald trump is important. we are looking at oklahoma as well. again, it is not clear whether the momentum has caught up from these attacks. willinly the republicans analyze the results to see if donald trump is stoppable. ted cruz is senator, not governor, my mistake. to dooes john kasich have to stay in the race? maragret: mostly the establishment republicans are beginning to rally around marco rubio as the alternative to donald trump, but the question is, so what?
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rubio has to perform credibly and hope the next wave one week and two weeks for now will make an impact. if not, it will be hard to stop donald trump before the convention, and then it is an entirely different ballgame. republicane establishment did not see this seeng under our acting -- this coming and are acting far too late? >> those who did see it coming perhaps did not know what to do about it. in terms of the leadership, it has become so fractional lysed that nobody who is in charge feels that they are in charge and speaks for the whole party. rishaad: hillary clinton there in the states and today in hong
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kong, is she essentially a shoe in for the nomination? maragret: there are many things we don't know, one, the theoretical potential that this fbi investigation will be a problem. two, what if there is a terrorist attack or an insurmountable gaffe. bernie sanders has to preserve his campaign and has the money to do it, but he's either heting for that or hoping can shape the message if she does go on to be the nominee. rishaad: thank you for joining us. margaret in new york. tear when itn a comes to the asia pacific, but there is a notable exception. it is a company that moody's looked at and did not like what they saw. david: as you look at the fiscal risk, thechina, the
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drawdown in reserves, moody's saying we will keep the ratings, but are negative on it. the dollar index flat at the moment, 98.35. futures up as well. for s&p futures by four points or five points and hour and a half back, so i guess that is representative as well. we are seeing yields on the way up, u.s., japan, australia, gdp numbers out there. up, the yenthe way is weaker, so by most indications it is a risk on session across the region. gains, 3.8%. those top three and bottom three in tokyo, take a look.
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, over all a risk on session, but where it seeing some weakness. and someng producers other precious metals, it has bid up quite a bit. all, metals, rio tinto, iron ore got a nice lump up overnight as well. hang seng up 2.4%. high, -- shanghai, the jury is out on that one as well. pboc saying there are no open market operations today, second straight sessions as they manage liquidity. rishaad: thanks.
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we will get to that moody's decision. it has change the outlook from stable to negative on china. surprise? usondly, what does this tell about the debt issue that china faces? enda: they have sop debt, huge banking sector, and a significant build up and corporate debt. , in 2014gather mckenzie estimated total debt and china as 2% of gdp. sincece of the build up 2008 is also concerning.
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rishaad: and their reserves are .pleting at a worrisome rate edna: likely that the government will have to intervene and take over some debt from the esso soe's. rishaad: is that how they expected to respond? na: we're expecting clarity on what they're going to do. this is where we get into the , but will theym really tackle these plans. rishaad: moody's investors service, the vice president suggesting that that is ackley -- that is exactly what we needed. ofa: to win the credibility
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investors and ratings firms, they've got to deliver on reform, cut back on debt laden companies. that is how you tackle the debt problem. rishaad: thank you very much. a look at some other stories. we have a look at snow to begin with. yvonne: let it snow. full control of the world's best-selling brew, buying the 49% stake. that figure is less than previously thought. the value of snow beer less than some estimates. analyst, including goldman sachs, say abm that may need to ab inbev need to sell
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it. olympusg gears to rising after the company agreed to pay $650 million to resolve inquiries into claims it paid kickbacks and bribes. makes the case the largest in american history and the largest ever paid by a medical device maker. one business by providing lavish meals, trips, and spot treatments. sold $7ican unit billion worth of medical equipment between 2006-2011, and portion of say a that was made by offering benefits to hospitals and doctors.
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the investigation was triggered by a whistleblower. japanese automakers also rising, years,t february in 16 honda among the leaders, sales jumping 13%. seeing shares rise as much as 6% in tokyo. consumers took advantage of cheap gas, low interest rates, and presidents' day deals, nissan sales wrote a 11%, beating estimates of a 7.2% gain. the increase, but was just a bit shy of the forecast. the u.s. could see another record year for vehicle sales, the bright spot in an economy that has slowed of late. unexpected decline, but shares rose as investors like the strategy of selling fewer low-priced, low profit vehicles into rental fleets.
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those are these stories we are watching this morning. recap what has been happening on super tuesday in the u.s. ted cruz and hillary clinton projected winners in texas. associated press saying ted cruz is also the winner projected of oklahoma primary. for confirmation on that news. it is looking like a very good night for hillary clinton and donald trump, looking like they have five or six states of peace. coming up later on the show, unfiltered and unscripted, white fund and say that donald trump's is political branding. worldlia's standing in a of negative interest rates. ♪
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rishaad: you are back with "trending business", the aussie dollar surging. this is quite something, isn't it? do we know what is behind this huge spike in numbers? a number of factors of play, one is domestic consumption. household construction has increased, services up 8%. low australian dollar stimulating tourism and education. offsetting the drag from my fall back in mining and investment. gdp .6%,er on quarter better than analyst expectations on .4%, annualized figure of 3%. it also cast the unemployment
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data in a new light. there had been some questions regarding the job growth in years. it is interesting to see if some of those analysts forecasting rate credits -- rate cuts might want to revise those positions. the rba was right to stay parked at that record low 2%. rishaad: thanks for that. sachse fixed in, goldman fixedmanagement -- had of had of means we won't get a move early this year. monetary conditions are still
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currency is going to go up based on this in the next 24-48 hours, but the currency is trading at high levels compared to what we think the rba would like. there has been a massive adjustment, so the currency has ,ome down 2% in terms of trade so commodity price adjustments is what the currency is reflecting. it has gone from being quite ,xpensive too much more fair but is still an attractive place to invest, relatively high yield , and foreign investment flows -- especially relative high yields when you're looking at other countries, indeed japan with the negative interest rates. >> the last time i was on i said
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amongst the high quality destinations, australia is still er at 2% or two .5%, so there is this continuous flow of capital chasing modest but still high returns. rishaad: very modest for a sovereign. central banks, wealth funds, people not looking for huge returns, australia stands out. continued pressure on the currency, which in turn will lead to monetary conditions to tight monetary conditions, which leads to the rba cutting rates. rishaad: because we have all this going on in the u.s., we have to leave things here for a moment. u.s.-u.k., eurozone,
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peripheral countries, spain, reducing holdings. what's been happening in the u.s. andcruz in oklahoma, hillary clinton, projected winners. oklahoma also for the republicans. formberg is waiting confirmation on that. that is what we have at the moment. let's have a look at what else is going on. the u.n. chief ban ki-moon says border closures are a breach of international law and human decency. of syrian and iragi refugees are stranded in greece. neighboring countries tightened entry conditions. the austrian chancellor rejected criticism. the eu and turkey will discuss the crisis next week. facebook and a battle with authorities after the latin american president was arrested
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in brazil after allegedly refusing to hand over an exchange between two drug smugglers. authorities say they do not want the content of the messages location and data attached to them. the warming ties between cuba and the u.s. will see the ,olling stones play in havana planning a free concert in the capital on march 25 in a country that once persecuted people for listening to rock music. the band says it will be a landmark in their 50-year career. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. coming up, the showdown between apple and the fbi data encryption. we have the latest coming up in a couple of minutes. ♪
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rishaad: u.s. attorney general loretta lynch has challenged apples refusal to unlock a terrorist iphone. she said the company has been doing similar things for years, hearing arguments from both sides of the credit to an issue -- the encryption issue. >> there are no demons and this debate. the companies are not evil. the government is not evil. you have people who see the world through different lenses and care about the same things, public safety, innovation and privacy. we devote our lives to stop people from stealing our innovation, our secrets, and hacking into our devices. the same things, which should make this an easier conversation. >> what happens here is if apple is forced to write a new
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operating system to degrade the safety and security and funds belonging to tens or hundreds of millions of innocent people, it will weaken our safety and security, but it will not affect the terrorists in the least. rishaad: loretta lynch's interview with emily chang, questioned whether apple should be deciding the issue for everyone. we feel the middle ground between apple and the fbi, law enforcement and any company with who we work, that's who we go to to arbitrate. we have a difference of opinion as to what the law means or what compliance means or as to whether or not someone should comply, then we go to court. that's what we did in this case, and that's what we think is the current state of affairs, and that is how this will play out. thee discussed, it is also middle ground of discussing this in the larger form of ideas in our country, having a discussion
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about what it means to have both privacy and security. we do it all the time. people expected of us, and we can do it in this case also. >> of brooklyn judge just rolled that apple does not have to do this in a separate case. does that undermine your argument or change your strategy? >> it does not change our strategy or reliance on the court. disappointed with that decision, but will resubmit it to a judge in a few days with additional information. that was the case in which we were working very well with apple, and they had agreed to help us with that particular device, an older device. that particular case does not involve encryption or anything like it. is a path to there discussion to working on all of these issues as they come up. ,> there is no middle ground it's not just about one phone,
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it's about every phone and the future. how do you respond to that? >> we have seen how we do in fact allen's privacy and security every day. recently apple was able to comply with our requests, and they have some of the strongest security out there . i think we have seen it done. companies, finance health care companies, all important sectors of the economy depend upon in cooking data to protect all of us, every single one of us, but also maintain the ability to manage the data and keep us safe and secure. to a spotet's get you check on the market. shanghai feeling it earlier, but on the way up by 1%, even though the outlook for the economy was cut by moody's. two thirds of 1%
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higher. we have to take a break. i gloomy outlook there. we hear directly from moody's and why the firm has ♪ cut that rating outlook for china. ♪
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stories asianat stocks extending the global rally. japan more by 3% as they begin weakens. chinese shares making gains despite moody's cut in the ratings outlook. the regional benchmark heading to a seven-week high. china resources beer soaring by more than 30%. it would give china resources
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control of the best-selling brew , snow beer, and smooth the way for the takeover. the transaction still needs regulatory approval. leaders in the presidential race on track to consolidate their position on super tuesday. hillary clinton looking to take a six states. --ald trump the report projected winner in five states. ted cruz claiming texas and oklahoma. officials say high turnout everywhere. the markets going in one direction, here's david. 2.7%, msci asia-pacific. just about erasing the losses for the year.
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all the losses, we 13131. get back to a good day as far as equity markets here. a quick look at some big movers across the region. , very nice gains across the carmakers there. the best february for the u.s. auto industry going back to 2000 , the best month of the year and 16 years. there, oil prices continuing to climb during asia gold off of the overnight.
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11%,r and gordon down hammered black and blue sense of earnings came out. i've get you the chart in a moment. stillwatching the casinos tailwinds. up as much ass 30% at one point. on thew of the market $1.6 billion price, a massive discount, good deal. , trading atordon eight dollars this time last year, and now are pushing towards $.25.
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96% down. at what taking a look is going on, hillary clinton looking like she may have 16 states on super tuesday. donald trump looking like he got five. this is a fluid situation. our white house correspondent joins us on the line. it's looking like tonight's results will solidify donald trump and hillary clinton as their respective party nominees. is the fat lady singing for all the others? >> it looks like that for hillary clinton. , a has had some solid wins sizable lead in delegates over , but berniers sanders says he is hanging on and plans to stay in the race until the party's nominating convention in july. clintonng said, hillary
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and her remarks said that her opponent really is the republican. she talked about the republicans rather than the fight against bernie sanders. donald trump certainly is mopping up, but has more opponents and they are fighting hard. the race is not over yet despite the strength again tonight with donald trump in these results on super tuesday. rishaad: it seems the republican party is facing a crisis, growing turmoil in the gop, a number of members have clashed with donald trump, saying they will not support him as the nominee. a big of an issue is this for them? >> it is a big deal. hashtag promoted by , so itty establishment
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is a significant factor. the party establishment was caught offguard with the rise of the donald trump candidacy, everybody treated it as a joke for many months, then it became obvious that it was a serious thing and they have really scrambled and struggled to catch up, and it does not look like that will happen, but the party has to figure out what it wants .o do last year, donald trump pledged that he would honor the endorsement, and if he did not get the republican endorsement then he would not run a third party campaign, and now he is expecting the reverse to be true , that the republican party will stick with him if he is the endorsed candidate and not jump ship for somebody else. rishaad: absolutely, the question remains as to whether anybody has a shot at fighting on. nobody is dropping out at this point, but we certainly have seen a winnowing of the
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candidates after the last several major contests, and that is likely to happen again. ted cruz one texas, his home state, important for him to stay in the campaign. polls a stronger than expected showing by marco rubio in virginia. he was polling down more than 10% compared with ted cruz and came within a couple of points of him in virginia despite coming in second, so that is second -- something that keeps each candidate going. they say they are in it for the longer term, so we will see what happens. we have a couple loved they contests later this month, so that may be more of a deciding factor than super tuesday. rishaad: thank you very much indeed for that joining us from washington, d.c. let's look at the political marketing of the candidates involved. the two standouts certainly
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here. >> yes, indeed. hillary clinton and donald trump have certainly had a good day. >> i'm talking about the marketing. bernie sanders and donald trump projecting themselves outside the political system and political class. they are appealing to a base of voters that do not normally get reached. normally we have established candidates at this point going through super tuesday and proving that they will be the eventual nominees, yet we have somebody like donald trump who is so outside the republican establishment holding views that many people in the republican with, yet hee seems to be the leading candidate at this stage. what is donald trump's
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overall appeal in your view? marcus: for his voters, they see , outside thetic establishment, not stage-managed. things seen him say many that you would not expect of a mainstream candidate, even criticizing john mccain and criticizing the pope. you could not believe that he would do that, but this is exactly what voters are attracted to. he is saying those things, saying what he believes, very attractive as an anti-establishment candidate. rishaad: also here, marcus, the producer of the show was telling me that he has a friend of his who will either support bernie sanders or donald trump. it seems like a weird mix, but
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it isn't so weird when you delve into it. no, they both have that same appeal. the only clinton so mainstream. she has been around politics since the 1990's, and certainly has not gone away over the intervening. . bernie sanders is appealing to young voters, for someone who is in his mid-70's, i believe. is the same, even more so, in that he is deliberately attacking his own party and becomes a remarkably hard target to hit, so that when the establishment, the mainstream candidate, someone like jeb bush, so much part of the republican establishment, so more and more they try to attack him, and at more and more bills -- builds the brand. we still have marco
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rubio and ted cruz rounding on him in the latest debate. ran it on him. does it remove some of that teflon the near -- veneer? it helps, and one wonders why they did not do it earlier. it may illustrate that donald trump is not as authentic as he is trying to show. donaldubio talked about trump's views on immigrants, something that is very different to the platform that exist, but at this stage it does not seem to have stopped him. rishaad: stick around with this. this sceneet you to in palm beach, florida. donald trump now predicted to win virginia, on top of the five
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super tuesday states he is projected to win already, and he is of course making his pronouncement, probably declaring victory. let's have a listen. i know that a lot of the special entrance and lobbyists and people who want to have their little senator do exactly as they want, they will put $25 million into it over the next two weeks, and frankly i think that's fine as far as i am concerned. if he wins, they will have total control. we will see what happens. we will spend a lot of time in florida. the virginia when was a great win, because it is a place that is just spectacular, and a place where we have big investments, as we have in florida. remember, we have thousands of , and it has florida been an amazing place to
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invest. it has been amazing to have so many wonderful employees urging us on. i have thousands of employees all over the world, but for the purposes of tonight, we will say just over the country, and it has been so beautiful to watch this company grow and grow so articles coming out talking about how great a company we build, and now we want to put that same ability into doing something for our nation. our nation is in serious trouble. we are being killed on trade, absolutely destroyed. china is taking advantage of us. i have nothing against china. i have great respect for china, but their leaders are too smart for our leaders. our leaders do not have a clue, and the trade deficit of $400 billion and $500 billion are too much. no country can sustain that kind of trade deficit. it won't be that way for long could we have the greatest business leaders in the world on
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my team already come and believe me we are going to redo those trade deals and it will be a thing of beauty. you look a countries like mexico where they are killing us on the border, absolutely destroying us on the border, destroying us in terms of economic development, companies like carrier moving into mexico, ford moving into mexico, nabisco closing up shop in chicago and moving into mexico, you have to stop it, folks, i know how to stop it, we will create jobs. we will lower taxes. i have a plan that larry kudlow and so many others think is the best plan they have seen. we will lower taxes substantially for the middle class. the middle class is been forgotten in our country. it really probably was the predominant factor in making our country into a country that we all love so much and so proud of , but we have forgotten the middle class, so we will lower
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taxes, lowering taxes on business, looking at all the companies moving out, when you see pfizer moving to ireland and so many other companies constantly now they are leaving. use to move from florida to new jersey or from new jersey to , but chrislse christie understands the problem. now they are leaving from places that they used to move to into other parts of the world. we can't let that happen good we have lost our manufacturing jobs come in manufacturing, millions and millions of jobs, thousands and thousands and thousands of plants,manufacturing warehouses, i mean we are losing so much that we can't let it happen. i told the story often about a friend of mine who was in the excavation business and he always orders caterpillar, and recently he ordered another tractor from japan because they have cut the yen, devalue the
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yen, to such an extent that it was virtually impossible for caterpillar to compete, and i don't want that to happen. that's not going to happen. they should not be allowed to do it. they have tremendous power over everybody because we are the source. we have great, great power, the problems as we have politicians that truly, truly, truly don't know what they are doing. so we are going to work very hard. i am so honored by this evening. if you would have told me on june 16 when i was with my wife and we came down the escalator at trump tower and it looked literally like this, a lot of -- it looked literally like the academy awards. i never saw so many cameras in my life. it takes courage to run. it takes a lot of courage to run for president. i have never done this before. i'd been a job producer and done a lot of things, but this is something that i have never done, but i felt that we had to do it. when you look at the incompetence of the iran deal when we give $150 billion and
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get absolutely nothing and look at all the problems that our country has and you look at the military, which is really being depleted rapidly, rapidly depleted, were going to make a military bigger, better, and stronger than ever before, and nobody, nobody, nobody is ever going to mess with us. so, it is just an amazing honor to have you with me tonight. donald trump and palm beach, florida, appealing to the republican great and good. speech about him wanting to make america great again and talking about some of the things that are wrong with the country. let's find out more and get back to the university of melbourne's marcus phipps. what did you make of the usual speech he was making their? re?
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can he win the general election? wants tohat everybody know. marcus: that is a hard one to predicted he hasn't appealed to working-class voters which has the appeal to reach across party lines, whoever the eventual candidate for the democratic concernedould be most about. hillary clinton wants to appeal to working-class voters. if she were to go against donald trump, they would be the voters she needs to attract. i do feel some of the comments he has made on race, immigration, and gender, certainly have the potential to harm him a lot more come the general election, and that may possibly limit its appeal. -- limit his appeal. rishaad: what about hillary clinton and her relationship with the american people, because it is a fairly faxed one vexed one? a great deal of
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political baggage, and donald trump is someone who is good at honing in on baggage. versusere donald trump italy clinton, he would go after weakness. he would target things such as bill clinton's extramarital affairs, which may be something that went weak in the area where hillary is strongest, with women. that is an area that she would hope to win in a general election. let's just have a look then over all. she has baggage. he certainly has baggage. we have the e-mail scandal taking place as far as hillary goes. those things could really come back and bite them. marcus: yeah, definitely, but the interesting thing with donald trump is so far he is a
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man who has baggage, businesses , thehave gone bankrupt level of success questionable, but for some reason no one has been able to hit him in that regard. hillary clinton, people seem less forgiving, and it seems like her baggage could potentially hurt her more in a mainstream election. to him winning if it was donald trump versus hillary clinton? most people would put their money on hillary clinton, but many people thought the donald trump would be gone a long time ago, and yet he is still here. you can believe that the hillary clinton cap is starting to take in searcy, and will need to taken seriously if they are to win in a general election. much.d: thank you very his take on super tuesday. certainly the front runners have solidified their position, donald trump saying he has expanded the base of the
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republican party and congratulating rival ted cruz on his victory where he is senator in texas as well. we do have at the moment governor scott not endorsing donald trump according to a spokesperson there, and done a trump also saying that when the primaries are finished then he will go after hillary clinton. super tuesday results continue to come in. this is "trending business". ♪
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rishaad: you are back with "trending business". moody's has cut its outlook for china. i spoke with the senior vice president about the thinking behind that. we see significant buffers, fiscal and foreign exchange buffers, eroding for china and the country's ability to absorb shock has diminished. something, what about the behavior of the markets and the volatility we have witnessed when it comes to china's equities. how much of that has played a role here, and is a concern that you that itcern could spread to the wider economy? marie: how we look at market , earlier this year,
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equity and exchange rates, is that we see potentially a sign of weaker confidence and weaker credibility of policy. set athorities have wide-ranging reform program, two steps forward and once that back in reform steps, so that is creating some uncertainty, and that is reflected in asset prices. rishaad: you keep mentioning the reform process. nobody said it wasn't going to be painful. pain that miss the china would naturally have to go through for the transformation of the economy to one that is more service oriented? is by nature in the medium-term. the changes in the chinese economy, financial sector, will be significant when reforms are achieved. they are happening at a time
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when prices and parts of the sector, high leverage falling profits, and so the ability for the corporate sector, for the government, for banks to some extent, to absorb some of the negative shocks has diminished somewhat. what is it going to take -- it's a moment when you have moved negative and the outlook. what would have to change for it to become stable, and what would it have to change for a rating downgrade? would stabilize the ratings, the outlook, if we were to see further progress, significant progress, and reforms. in particular the restructuring of the state enterprise sector, liberalization of finances, and
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reform in general. with reforms in these areas, the increasing leverage in china in general for the government, for , andrate's, can be levered that would be seen as a significant sign that we could stabilize the outlook. right, well, just getting into, of course, the big event. it is super tuesday in the u.s. let's get over to palm beach in ,lorida, donald trump speaking some say he could have won as many as nine states. he is saying that after the primaries are over he will go after hillary clinton. cruz onongratulated ted his victory in texas, where he is the senator. congratulatingm ted cruz for his victory and oklahoma as well. this is the scene when it comes
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to donald trump. also, hillary clinton is apparently picking up six states as bernie sanders one vermont. this is what we have at the moment. loads more state still to come and be declared, but a quick look at the markets meanwhile, asia-pacific today, hitting highs, all benchmarks indeed for the region. eyes not seen since january 8. hang seng up 2.5%. ,ig gain for the nikkei 225 4.5%. , taiwan, singapore, also moving up as we do see the bull run take place, or should i say the bullish feelings on wall street making itself felt in the asia-pacific. ♪
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biggest daysof the in the u.s. presidential race. super tuesday. a look at our top stories. seemingly green cargo. asia-pacific markets extending the rally gains across the board. turning negative, moody's cutting its outlook for china,
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blaming rising debts and falling reserves. and, than the winners, clinton and trump in the white house race. a large turnout on super tuesday. angie: indeed. also coming up this hour, exchange of fire area -- fire. we talk privacy with the u.s. attorney general. there's no business like no business. china takes control of the world's best-selling brew. and asian emissions. we talk about expanding in china and gambling on a casino in vietnam. i'm david ingles, keeping my eye on the market. shares are having their own supersession, up across the region. gainsg at $300 billion in at least on


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