Singapore, and, japan, three out performers. Lets have a look at what is happening in south korea. Indexart of the cost be kospi index. It is not immediately clear how many missiles were fired. We were just talking about this of stocks might be at risk because of the tourist flow from china. We are seeing a pop in the defenserelated shares. Have a look at the shanghai composite. , alsoown across sectors moodys revise the Credit Outlook for 38 state owned Chinese Companies from stable to negative. Long story short, and this is based on their statement, the change in Sovereign Rating , their capability to thanrt soes weaker moodys expected. China a picture of an economy that sputters on all fronts. Sector slowed down in february. Onare in beijing with a look the back of disappointing pmi manufacturing data. China keepsews for rolling in. Pmi coming up 49. 4, falling from 50. 1, so it did hold its head above water in the previous month. Broadly painting a picture of disturbingn what is is this Services Sector is meant to be the new driver of chinas economic growth, more than 50 of the economy. This has been the intention to overtake the traditional drivers. Data shows its starting to lose steam. Year it isf difficult to get a read of the , factories and businesses closing, finishing up a seasonal distortion. We tend to have to wait until march later in the year to get a good indication of how the economy is going. The picture it paints is one of a slowdown. That services pmi falling, manufacturing in contraction, the weakest since 2008. We have forgauge manufacturing also in contraction for more than a year , so none of these numbers are good. We have two bank he of events , a top political advisory body comprising academics, politicians, advisers across the cultural sector, politics, Financial Sector as well, they are gathering to talk about policy recommendations. Nationalave the peoples congress, the top parliamentary event for china on saturday, the premier delivering his work report, akin to the state of the union, and the state of the economy is expected to be a top focus. We will beginning through the targets for 2016 gdp growth, cpi, money growth, as well as the deficit, expected to widen. Howould also be looking for the government plans to support the growth and Services Industry , financial, which id imagine looking at these numbers was a result of the volatility and turbulence in chinese Financial Markets. Hit probably contributed to that Services Number and composite number for february. We will be looking in beijing at what initiatives they will have for the health care sector, policies to address chinas aging population, which will be an issue in the coming years, but also the manufacturing howt, the industrial front, they plan to address the issue of reform, but hasnt been followed through on. Concern is that instead of making these reform measures become a reality, the government had switched back into easing mode or accommodative mode when it comes to pumping up shortterm growth. Rishaad thank you. Our next guest is a long time china watcher, independent economist. What do you think will be the town set at this meeting this weekend . The government has made it clear that this is a time when criticisms are not welcome. Rishaad they dont like criticisms ever. Form for people to voice their frustration, but not anymore. Rishaad are we going to get anything substantial . The people have been urging government to do more when it comes to reforming state owned enterprises. Getting somes traction, would you agree . If so, how did they effectively get rid of millions of jobs, which is what this reform process would entail . Getting laid off, that talk is coming back. Im not sure this is really serious. The labor force is shrinking. Gettingabout people laid off and social instability is a line to stop reform. Talk coming back is against reform, so that makes me more worried about china. Rishaad you dont think anything will happen . Over all in china, we do have a labor for ditch. The labor force is shrinking. Have a labor shortage. The labor force is shrinking. The labor force will solve its own problems. Thatad you are suggesting the government is worrying unnecessarily about this . They are worried about not wasting money. Things the most important in china. It is not about where people should be employed. They have problems looking for people in the service sector, even factories have trouble finding workers, so im not sure this line of thinking is really should be taken seriously. Rishaad absolutely they should be spending less. That is one of the problems in china with this burgeoning debt problem and trajectory that is not favorable. The problem is miss allocation of resources. So thisent spent is why the economy requires debt to grow fast, because of the inefficiency that requires more debt to cover up, so this is why the economy is not stable. For china, if you want to change and have a stable economy, you have to bite the bullet. We should not be spending money and giving money to the people. That way it creates a real marketbased economy. Rishaad that is one of the reasons that the debt trajectory was downgraded by moodys four. ,he other was capital outflows the drawdown in foreign reserves. How much of that is setting off alarm bells . Thinkingt know the the between party decisions, because a lot of the decisions are inconsistent. If you are not going to reform, you have to stop the money from leaving. Otherwise you will have exposures. Why do you want money to flow out when youre not doing things to revive confidence in the economy . These things are not consistent. The government really has to think through, they have to stop the hemorrhaging first. They have to shut the doors. They can think about how we can make the economy sustainable. That is a long process. In the shortterm, stop the hemorrhage, stop the money from leaving. Up rightmore coming after this break. Rishaad you are back with trending business. We have just been talking about china. That is the host country for the g20. A communique suggesting at the end of the day that there could be more stimulus in the pipeline, but may be the Central Banks had reached the limits of what they are capable of doing. Almost an admission that things are not as good as people are suggesting when it comes to Global Growth . The Global Leaders are having trouble understanding what is going on. They have been manipulating Financial Markets or monetary policies trying to revive growth. It is not working. Now they are lost. You look at the bank of japan when it did their negative Interest Rates, the stock market went down and the yen went up. Rishaad it was totally counterintuitive. They are understanding it the wrong way. I think these guys have lost it. Rishaad who have lost it . All these guys who rely on Financial Markets to manage the global economy. They cannot do it anymore. Rishaad is that why you wrote entitled, heads in the sand. . Faces andk at these they change a little bit, but theyre the same people. Believe that Monetary Policy is effective at reviving growth, even though there is no theoretical basis for that. Rishaad there is, its monetary the school ofis milton friedman. Monetary policy was discredited in the 1970s rishaad but now the onus is on governments to do more, would you not agree . The government should do more, but what, do what . So far it is about Monetary Policy and trying to get the markets going. Richer through inflation. Rishaad you get asset bubbles at the end of the day. That ifhose guys think i can get a bubble going, then the economy will do better. We ultimately end up going from one financial crisis to another. Not recoveredve fully from the financial crisis, have we . We seem to be running out of steam. Have been economy allowed to take the course it needed to without assistance, a lot of pain, but shortterm pain for longterm gains. If you stabilize the reforms, then no you have a worse outcome. Maybe its better to let companies fail. Thats what happened in the 1930s in the united states. A lot of people said it was a huge mistake to go through the alternative i do not see the light at the end of the tunnel. At the beginning of this prolonged stagnation. Prolonged stagnation, and even instability. All these people who went to harvard and yale, they dont understand whats going on anymore. Well, you guys have screwed things up, maybe a lunatic might not be so bad. This is why i say were entering economic stagnation. Increased by political instability. Leaders havetical relied on hollywood tricks to market themselves as reformers. Inmany people believe but once the yen goes down, the whole thing is nothing. I think this generation of leaders need to give away to a new generation who are willing to focus on the real issues, not appearance. , wealthistribution inequality, and so forth, the real issues. Rishaad always a pleasure to have you on the program. The other stories we are watching for you today. Mars Financial Services group in talks to buy a stake in caixin media. Apple says there is no middle ground. U. S. Lawmakers should clarify the responsibilities to law enforcement, referring to the demand by a california judge to unlock an iphone used in a terrorist attack last year. Warned that ita defensive if it was forced to create software they didnt wish to create. Oklahoma police say the car was driven at a high rate of speed into a wall. He was at one time a key figure in north american energy, fracturing and horizontal drilling techniques. Burst,e gas bubble plunging access cut value in half. Rishaad coming up, looking to asking some were republicans have other hoping that mitt romney can stop the real estate billionaires rise. It is 10 22 a. M. In hong kong. These of the stories making headlines. Two of britains senior politicians clashed over the possibility of the u. K. Quitting the eu. George osborne will tell this is leaders that brexit would be the worst of all worlds and the u. K. Would lose its free trade links with the block. Boris johnson dismissed what he called scaremongering and said u. K. Should take back control of its borders. Chinapines has declared has prevented fishing boats from reaching the area, reclaiming ,eefs over the past two years building airstrips and other facilities to reinforce its influence in the area. The philippines have launched International Legal action, which beijing is ignoring. The u. S. Defense department challenging computer geeks to as part public website of cyber security, even offering unspecified cash rewards. Bye hackers may be put off having to register and submit to background checks. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Rishaad i look at the republican establishment efforts. Mitte down donald trump romney set to make a speech later today. He will lay out the case against trump. Donald trump 17 states on tuesday to it were looking at what social media makes of it all. Won seven states on tuesday. Were looking at we are looking at what social media makes of it all. Case is making a formal against trump to stop him from gaining more support as mainstream republicans are more falling in line with donald trump these days but we did get a response pretty quickly from donald trump. This is what he tweeted out. For months we have heard from mitt romney, voicing criticisms about trump over refusing to release tax returns. Mitt romney tweeting out this. A lot of people on social media saying, why mitt romney . What impact will he have on this race . Some people saying, is he running . We do not care what he has to say. I amerson saying that pretty sure this publicity stunt will have the opposite effect. Rishaad this thing with Chris Christie has gone viral. Standing behind donald trump making that speech in florida. It asyou take a look at donald trump was speaking, it looks as if he were a ghost. A lot of newspapers back him telling him to resign. Rishaad up next, two years to the day since the Malaysian Air flight disappeared, new clues that could provide some answers. A libido top stories. Asiapacific extending gains at level seem to bring months ago, regaining risk appetite, crude maintaining its rally. Upmodity producers leading their day of gains in china, the shanghai composite this years worst performer, down 19 . Concerns remain about chinas growth, gathering for the National Peoples conference nonfactory pmi released. Growth was just three quarters of 1 , all adding to the concern about the and capabilities of the country. In the u. S. , republican establishment turning to mitt romney to dislodge donald trump. He will be laying out the case against donald trump later after attacking donald trump over his failure to release tax returns. Having a look at whats this morning and what is driving these markets. Over the past hour or so, we have seen some very heavy news flow out of south korea. We will talk more about these missile tests from the north. Were seeing a little bit of industrials, industrial goods, and then you break it down sector wise, some stocks not included here that did get bid up quite a bit. Followingory on coming out of south korea are the south korean ship building stock, a very nice on pup. I wont go through each one. Bump up. Nice i wont go through each one. Story on top of a rising tide over all, hire or index ins, lower vix the u. S. , translating to similar measures in japan and hong kong, that as a barter trade. Other things we are watching. Ago movies5 minutes came out as a followup to their move yesterday to announce they rating oning the china to negative. 38 stateing it for owned enterprises, including 25 nonfinancial insurance institutions. With that said, it follows on that move yesterday in which they revised it lower. Hveral other stocks, byd shares bumped up. Down three and a half percent. North korea responding to the south by firing a barrage of short range missiles. Gold, titanium, rare earth, key sources of currency for pyongyang. Sanctions dont seem to work so far, but why does the u. N. Think they will now . The difference now would be that the United Nations is enforcing the measure where member nations would have inspect all cargo vessels going in and out of korea, that would mean something for the north korean regime. A lot of the parts for nuclear arms and missiles come fear these vessels, and north korea would not want to have its vessels inspected. The banks that north korea operates which they need to final money into nuclear arms programs would be subjected to ands and trent bans transaction difficulties, especially because china is behind these resolutions. Theese banks are mainly ones that operate alongside these north korean banks. Yuan rishaad yuan how rishaad how has pyongyang taken all of this . We have not seen an official statement, but we have seen short range missiles being fired off the coast of north korea as a reaction. It has been a while since north korea fired any short range missiles. We dont know exactly how many. Issiles were fired it could be that they are preparing some sort of missile drill or military drill, but it does seem like north korea is not happy about the United Nations resolution. Can we expect to see from the north now . Would be expecting a very harsh statement from north korea. In the past win United Nations resolutions of this kind were passed, north korea reacted with our statements, harsh threats, even another longrange rocket test, which the United Nations ofls a flagrant violation resolutions against testing ballistic missiles, or we could see some sort of reaction from north korea that indicates it is feeling the pinch from the resolution, and in that case we might see north korea backing down a little and coming to talk. Rishaad thank you very much indeed. Lets turn to chinas most prolific internet dealmaker, issuing a warning about what he calls the lawless world of Venture Capital in startups. The head of china renaissance partners, what is he worried about here . Some background as welker didnt he orchestrate some of the biggest internet mergers and china . He is big. Hes done more deals than anybody else. He was part of the merger that made a 15 billion company. Creating on a merger uber rival. Al this is a guy who is bullish on china and the Venture Capital warningiting this stark where he basically said that the market has been overrun because these hucksters and middlemen who are taking Venture Capital and sending it on to retail investors. Venture capital is like the rarefied world of Pension Funds like for the not ordinary man . No, but whats happening is china is buying into deals and selling on part of it. It is being marketed like a sure thing, because in china it is like it has been. Capital, the rule is that one in 10 will succeed. It is a very weird thing. The lawlessness is happening e in the dollar market its like there are two parallel worlds. Controls, the capital theres a difference in the world of finance in china between dollar financing and local currency financing come because you cant get access easily to dollars in china. Different. Ey are im sure there is yuan Venture Capital. Surprised thatas its not often you hear a capitalist calling for more government regulations, which is what he does in this piece. The funds, wealth managers, asset managers, insurers come all should be controlled. Its not so often you hear a capitalist calling for bigger government. Rishaad thank you very for that. Within a check on some of the other stories we are following. Bhp billiton has reached an disaster in the dam brazil, 1. 1 billion dollars over the next three years. It was brazils worst ever billionsntal disaster, of leaders of toxic sludge killed 17 people and polluted local waterways. It may cost up to 6 billion for the cleanup in the long term. Selling assets from the u. S. And india to raise 30 billion for its takeover of bg group, which ,iped out 10 billion in cash including steaks and oil fields and india. Indeed the slump in Energy Efforts to find buyers here. U. S. Carriers making their portion to cuba. You as transport authorities will review requests and may award the contested havana slots the summer. Allows foragreement up to 110 additional flights, five times the current operations. Debris with aviation, found off the coast of 370mbique, maybe from image 370. Rom mh we have been covering this from the getgo. What has this turn of events told us . Leading the search says the location is consistent with a drift modeling it came up with. The u. S. Says it is from the h370, and of plane as m others say it is an area where debris from the indian ocean washes up. A piece of a metal a meter long beach. Nd on a investigators believe it may 370 based on preliminary analysis of photos. Of the front of the horizontal stabilizer. The minister says there is a high possibility, but yet to be confirmed. Boeing hasnt responded, the airline cautious, telling bloomberg that it is too speculative at this time. H370 was on its way from kuala lumpur to beijing two years ago. Rishaad the search for this aircraft continues, but it will be finite. The chances of this ministry being solved diminishing every day . You can say that. The ceo of emirates said we must 370 be the biggest aviation ministry, but that is what may happen. There has been no trace of the luggage, no life jackets, no trace of the crew or passengers on board, nothing as to why and how. So far only one wing flap has been found. Some of the worlds most experienced search and rescue believe the search will fail without fresh clues. Search operations are expected to end this month and less funding continues, and families have asked for an extension of at least 60 days. That. Ision on it is mindboggling how the flight disappeared off the radar without a trace, the search producing nothing. Thank you very much indeed for that. Coming up, malaysias longestserving leader calling for change, saying the current Prime Minister is leading the country in the wrong direction. I have an exclusive interview, coming up. It is 10 45 a. M. In hong kong. The stories making headlines. Greece making longterm plans to house 150,000 migrants stranded by border closures. Million inor 500 emergency funding to help the refugees. Breedlove has accused russia and syria of weaponize inc. Gratian, attacking civilian centers in a bid to divide europe. North korea has fired a shortrange missile after the oughed nations approved t sanctions. There were calls for sanctions ths nuclear and missile program. Facebooks latin america Vice President has been released. He was detained in a dispute to messagesaccess and a Drug Trafficking investigation. The company is being find 13,000 a day for not complying to give access to the information they want. It is being compared to apples battle with the fbi. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. We will have a look at malaysias former leader, Mahathir Mohamad, saying the current Prime Ministers policies have held the country back. Claims of corruption and unexplained millions in Mahathir Mohamads personal accounts. Hes calling for a rethink of malaysias growth strategy. The qualitycause of of the people who build up this country. The only thing that Prime Minister najib razak has done or decided upon is to build a necessary thing. Credit agencies and analysts have said that economic policies have done good for the country, for instance the removal of subsidies, which you yourself were pretty much against. Is ther the result currency has devalued, share prices have gone down, people no longer want to invest in malaysia. Theyre are going to vietnam. To them,ot of the country is not doing well. Is shared by everybody. Costofliving has gone up. If you remove subsidies, the people cannot lean on the subsidies could they have to be on their own in an environment where costs have gone up tremendously. When we talk about the slow awn in malaysia, it is also sign of the slowdown in the rest of the world. External factors do come into play. Internal factors also play a part. The value of currencies of neighboring countries is not as high as in malaysia, for example we used to use the Malaysian Ringgit to buy things. Isay the Malaysian Ringgit rejected because it has depreciated more than the depreciation of the thai baht. There is an internal element. There is focused now on the central bank. , the 16 years in Office Governor will be stepping down. A lot of questions about who should appoint the next governor. Appointment will be by the king on the advice of the Prime Minister. Even when you were Prime Minister, you appointed and removed several governors. I did not remove. They resign. Get your facts right. The government and its deputy resigned on the day when i wanted to implement currency controls, so i had no choice. Subsequently, i made that recommendation that she should be made the governor. I did not dismiss any of the governors. Bank governortral be independent if he or she were appointed by the Prime Minister . Mahathir i think Everyone Wants to be independent, but there is a feeling of fear that something will be done to you if you try to be independent. For example, the Central Bank Governor has to submit a report to the ag, the ag has dismissed this report, and the Central Bank Governor cannot even open her mouth to say that she has made a good report after a careful investigation. The system has been blown to bits. Is malaysia at a Development Stage where it can do away with state companies . Mahathir you can have state , but not one like it is a sovereign debt fund. If you have excess money, you dont have money. You are actually in debt. More and put the nation in trouble, but state run has not been any bad things to the country. Rishaad Mahathir Mohamad the former malaysian Prime Minister speaking exclusively to our Southeast Asia correspondent. Coming up, going to mumbai, finding what the international needsry fund says india not to cut Interest Rates, but raise them. Stay with us. Ibmaad other headlines, novats entire stake in the up for sale for 220 million. Linkss been severing its to less profitable businesses for years. 18 months ago, it sold its to division ii lenovo lenovo. Be theeweries could first move in the push to dominate chinas beer market. It is a greatid way to enhance its presence. Be chinascould fourth biggest by volume brewery. About indiaalking expecting to cut Interest Rates by april, but the imf says india may need to raise rates. Over get the thinking here in mumbai. Good morning. Why is the imf saying this . Imf thinks the potential is anonymous, but theres still a way to go in terms of the reform process. Forecasts say the countrys growth will pick up marginally next year. They are in a recovery based on lower fuel prices. Spot,ain in the sweet they must maintain forward momentum. The imf expecting the indian yearmy to grow 5. 3 this and 7. 5 next year, one of the fastestgrowing economies in the world. Country has grown to 7. 3 in fiscal year 2016. Thank you very much indeed. That is it for trending business. Asia edge is next. From our studios in new york city, this is charlie rose. Charlie his awardwinning books include biographies of alexander hamilton. The life of john d rockefeller. The New York Times has called him as elegant and architect of history as we have seen in decades. His new book is a detailed and vivid portrait of americas first president. The starting point in an but his biography is that there are significant dimensions in a life that have eluded previous biographers. Hamilton had a quarrel with
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