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tv   Trending Business  Bloomberg  February 22, 2015 8:00pm-10:01pm EST

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♪ is monday. it is the 23rd of february. i am rishaad salamat and this is "trending business." ♪ >> here is what we are watching this morning. greece's new debt deadline. prime minister suppress -- t sipras has until the end of the day. europe's finance ministers decide whether to keep the money flowing. regional stocks headed for their best close since september. great optimism that greece will come up with the goods.
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in singapore's founding father is having treatment for a pneumonia. his son had his own health square last week. yew has thanked twitter followers for their support. follow me on twitter. i am @rishaadtv. do not forget to include that hastag, which is #trendingbusiness. entering the fray right now, let's find out what is happening. >> we are seeing australia, blue scope, good earnings, but the stock is taking a hit and they on expectations that margins will be under pressure in the month ahead -- in the months ahead. group was raised to neutral from cell at goldman sachs.
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prices inching down. that is what we have as far as australia is concerned. take a look at the gold-mining stocks. we are seeing declines. there you go. 1.4%. down overall, it is an update on the -- across the asia-pacific. that is how asia looks. i will be back later on with what is happening with the markets. right to you. greek government walking a new high wire. prime minister alexis tsipras has to come up with financial measures that will satisfy the country's creditors and the anti-austerity party. john dawson is with us now. >> he got into the government on the promise of no more troika and no more bailout.
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friday, an extension to the bailout. they are under that inspection criteria. that is crucial. the backlash in greece is quite intense for him. tsipras, it is, as he says right now, a bit of a victory. >> we want to battle, but not the war. the real difficulties, including those related to the negotiations in our relationship with our partners, are still ahead. >> the extension to what was already there before. the concern going forward is how the greek people will react to this. a resistance fighter and veteran talked about how it has been an illusion for the greek people to
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be involved in the cerise a iza party.yr >> a big fear about a run on banks. anything on that? >> this four-month extension is without a doubt a reprieve to this. reacting.not all 2 are falling. certainly, that is the relief for them. >> we are taking a more detailed look on that story later in the program. tweet us your thoughts @rishaadtv including #trendingbusiness. pay, andn costs, secret swiss accounts may dominate the ecb report later today. what are we looking at? >> it does not look good for hsbc. they are expected to report a 7%
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full-year, pretax profit. they estimate net income will fall 3%, to $15 billion. earnings are being hit by operating costs, which are expected to rise about 4%. it comes at a time when their ceo has been trying to exit some businesses, cutting ties with some customers, spending billions of dollars in compliance. compliance is a key issue here. the swiss scandal comes only on top of another fine that they have to pay of $2 billion for helping latin american drug cartels with their money. reachtion expenses may $1.3 billion for the full year. customerson for u.k. are also expected to add $1 billion to that. >> thank you for that. you can hear more on that in all of the day's top stories at bloomberg business.
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it brings together the best of bloomberg news, bloomberg television, and bloomberg sport. it do check it out. let's have a look at some of the other stories we are watching for you today. >> good morning. escopetalking about blu steels. shares plunging after they posted some pretty strong results for the first half. million.t at $92.7 that is up about 26% on the second half of last year. so why the selloff? the falling steel prices compressing those margins but sales overall was a good story. up 9%. domestically, doing very well. rob material costs fell significantly. we have the aussie dollar falling, which is benefiting them as well. a boost in the residential construction as well. the good news for shareholders,
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after there was no dividend offerings last year, they are now offering a three cents dividend. analysts still positive on bluescope. we will be speaking with the ceo later in the next hour. be sure to look out for that. we are also talking about kaiza this morning, telling creditors they need more breathing space. -- they they need to need more breathing space in order to reach this debt agreement to avoid bankruptcy. payments and a resolution of the company's debts is a condition of that sale. embroiled in this probe. it mitts -- it missed its did notpayment but it
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become the first to default when it met its 30-day obligation. they have two more bonds coming due march 18 and march 19. finally, the oscar goes to -- we are watching the red carpet right now for the 87th academy awards, happening right now in los angeles. it is still early there. 24 categories this year. goes.l see how that leading in the nominations this year. overall, they said 43 million viewers last year. it was the most-watched telecast in a decade. they have faced some criticism this year for lack of diversity in its nominees. some exciting stuff happening in the rencontre right now. back to you. , we prepare to head down under and hear from the ceo
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later in the show. of course, any questions, do send them to me on twitter, @rishaadtv, #trendingbusiness. after this short break, discussing china. forecasting a tsunami of ipos that could overwhelm investor demand. this is "trending business." ♪
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"trending business. >> you are back with" withu are well known we're going to start with china. let's talk about how bad the slowdown really is. can you put it all down to overinvestment? >> it is a continuing story. by $6gh estimate is
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trillion. >> $6 trillion? >> that is right. it takes time to unwind the investment. is the investment is half of gdp. >> but they are continuing that investment, aren't they? growth, youtment need accelerating investment. railways or highways or a power grid or so forth. the changes are not increasing. that means investing is not rising much. >> how much is the deflationary cycle that we are going through right now, how much further is this going to continue? how hamstrung is the central bank? and 2003, it was
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roughly six years. reform,g on structural the inflation would last longer without the reform. it will be years. but we need structural reforms to take us out of this deflation. >> where do the outflows, the tens and hundreds of billions of dollars that we saw in the fourth quarter for the full year last year, and because of that, we are seeing a depreciating -- >> it is driven by a strong dollar. chinese people have two currencies. they have the chinese currency and the u.s. dollar. hampering the central bank's efforts to ease monetary policy, which i do not think is a big deal.
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willally, monetary easing not solve deflation. the growth in business is always -- always goes to businesses or governments. >> how much longer can the central bank keep on vigorously ?efending they are buying it with dollars consistently. >> i think the downward pressure on the exchange rate is temporary. because chinese imports have fallen. >> but those imports are cheaper because of commodity prices, right? >> conception is still going on. still goingon is on. >> how many more bridges can they build? that is the point, right question >> yes. chinese imports with raw materials and equipment, when
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you do not invest as much, you import last. -- less. it is a very -- it is very difficult to see a currency .ppreciate a lot >> it is not a bad thing necessarily. exporters have said they want a weaker currency for a long time. .> the dollar is up a lot >> it is not a huge difference. let's have a look -- it has made a huge difference in the last which is equity markets. you say we should be prepared for a synonymy of new ip -- a t sunami of new ipo's. believe that the government will not let it fall. ,ith the economy and deflation
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expectations in the stock market. fundamentals, when you have deflation, are under pressure. it is difficult to justify a bull market. what the government is trying to do is to use the stock market to channel cash to businesses that are in trouble. >> why should the government be propping these companies up? >> they are worried about bankruptcies. >> that is the point. bonds.nominated it would be a first if it does declare bankruptcy. they are trying to do all they can to save the situation. u.s. see dollar-denominated bonds under pressure. >> with the depreciating yuan, is that a risk to those who have
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a sizable short-term dollar-denominated -- the mainle, but not issue. 2% is not going to make a huge difference. , youannot sell properties are in deep trouble. that is what we are seeing now. is only way to keep it going for the banks -- foreign creditors do not do that. that is why we're seeing the pressure building offshore. eventually, i think the domestic financial system will -- >> let's look at the big picture here. you are describing the situation in 2015, a rising dollar. similar to 1998, but there are the similarities -- dis- similarities, are there not? 1998, we arete of
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going to see a lot of deflation pressure. you like your currency to go down, but it is difficult in these days. not destabilizing. it is just kind of slow. >> thank you so much for that. great to see you. asking the difficult questions. let's check on some of the stories making headlines around the world. least 65 people are dead after a ferry capsized in emerald ash. the disaster happened on a river about 40 kilometers north of dr. there were about 140 passengers on the ferry when it was hit by year, aship the last ferry with a capacity of 85 passengers was found to be carrying more than 200 when it
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sank. indian prime minister narendra ori is cracking down on break espionage. five officials working for some of the biggest companies were arrested in a police sting operation involving stolen from documents. more would detain over the weekend. some of the big name companies include india's richest man and his brother. india's stocks and currency are among the best performers amid bets that modi will improve the business environment. the space station has carried out what nasa says is one of the most complicated jobs in the history of the lab. they routed 200 meters of cabling along the hall -- the hull as an upgrade for the next generation of crafts. they will finish the job on wednesday and sunday. >> we are headed into a great.
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we will talk to the bluescope chief executive. he came out with results that were better than estimated, but the shares are down. they did not seem to be impressed, even with a reinstated dividend. shares down 9% at the moment. hear what he had to say when "trending business" returns. ♪
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with "trending business." a check on some of the other stories making headlines. valeant set to gain after making another acquisition they will buy salix. that will add a gastrointestinal drug to valeant's stable. shares completely eliminating any premium in the purchase price. luxury handbags fell, meaning a misss for prada. they plan to open fewer new stores in 2015 and have more bags priced in the $1100-$1400 range. google forced android makers to use its app, limiting
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competition. the judge gave them three weeks to amend their claims and refile their case. google faces similar antitrust laws in europe, where lawmakers have called for the company to be broken up. first half income coming in better than expected. they also instituted a dividend when they did not have one before. the ceo of the company is paul o'malley. he joins us now. thank you for joining us. you come out with better-than-expected results. your guidance is also better than before. your shares take a pummeling. why? do what markets will do. we have delivered an excellent first half result. the board has decided to declare a dividend for the interim. and we are seeing growth across our business as welker did i think the market is reacting to the fact that prices are falling
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and that goes up and down, which affects margins from time to time. >> i wonder whether these results are being matched -- masked or flattered by the weakness in the aussie dollar. what is your view on that? >> well, we have just delivered the best half-year result in five years. the aussie dollar has been above parity. long-term average is in the mid-70's. we are still in the high 70's. we are going to benefit if the aussie dollar falls. if that is help, i am happy to take that help. >> how much do you factor into the weakness of the aussie dollar? what are the projections on that? are we in a downwards slope or the next six months or are we in a range? >> i think we will be in a range. it is difficult to take a view on foreign currencies, but the
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australian economy is going a little bit sideways at the moment. that suggests there is nothing within australia that is going to change. we have a lot of interest rates in the u.s. that are positive and growing. the biggest story will be the fact that the u.s. dollar will continue to appreciate against many currencies. >> absolutely. of course, falling oil prices are a key to your business. you have noticed a big overcapacity here. we will have a talk about that at another stage. very briefly, overcapacity in china, does it worry you? to leave itwe have there. i am sorry about that. paul o'malley, ceo of bluescope. ♪
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>> our top stories trending this hour -- japan leading asian stocks towards their highest close since of number -- since september. we are seconds away from the reopen in hong kong. and in athens, they have until the end of the day to produce a convincing list of reforms. asian companies can get back to shipping goods by see rather than by air. fight boxing fans
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have been waiting for. manny and floyd finally agreed to meet in the ring to determine who is the best pound for pound fighter of this generation. we look at the big numbers behind the fight. we were talking to paul o'malley before the break. he is chief executive of bluescope, better-than-expected thanked to a stronger dollar and a weaker australian dollar. let's get back to him and we were just talking about production when it comes to steelmaking -- how does that play out with your business? >> i think the export levels out of china globally are very challenging at the moment. that clearly puts pressure on prices, not only in our business in australia, but across southeast asia and the united states. it is tough when there is to -- too much exports out of china.
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>> they say the collection will continue until 2038 before a contraction takes place. >> i have been saying for a couple of years that i think china is in the ballpark of peak steel. they must be producing steel at a breakeven average. i do not see the growth in heavy infrastructure and residential construction growing at quite the same rates. plenty of productivity improvements available to the industry, but i am not sure absolute capacity can continue. ore, one oft iron the lifeblood of your industry? the rio's ofand the world have been expanding.
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how big is the glut and how do you foresee prices due to that? >> they have an economic rationale to expand. they might as well go for volume. when does it stop? i am not sure. some point, they will have to stop expanding because they will get too low on the margin curve. i think we are seeing some shutend iron ore producers . i do not think they can rely on an ever-increasing chinese steel industry to take everything they produce. >> when did you expect a big shakeout when it comes to the ?ron ore industry when will consolidation take place, if at all? >> i think it is already happening. -- a ton, that is a low price. is it going into the mid-50's? i am not sure.
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we have got to get our cost base into the mid-50's. we think that will be low enough. but it really is a $64 million question. >> in the. -- indeed. let's talk about the three cents dividend. is it here to stay now? >> that is one of the key issues the board considered in -- when paying an interim dividend. it must be sustainable. it is going to be a function of our earnings performance and cash flows. absolutely -- they only intended to declare a dividend if they thought it was sustainable. >> thank you very much. paul o'malley joining us. let's bring you some live pictures from the hong kong exchange. the first trading day of the new year.
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numbers right here in hong kong. >> it is too bad investors are not as happy, banging on the doors right here in hong kong. let me give you a quick look at what is happening. top three percentage movers on the hang seng index. what else are we watching? singapore coming out with api. they are expecting to see a second straight month of deflation. -.3%, really. we were just talking about earnings. last week, we had about 16 companies coming out with earnings. the problem has been earnings. 53% missed on earnings.
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58% missed on sales. you are not exactly getting the bottom line. the market is still doing quite well. else are we watching? japan, a few numbers here. up 4%, doubling its full-year net income forecast. this company up 14% of reports that it will be establishing a biofuel refinery in partnership with chevron. buy at nomura. in the bond markets, we have this initial deal. what barclays are saying is watch out for peripheral debt. example, where you have radicals pulling quite
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strongly in elections. you look at greece and the periphery, that is what you have for the 10-year german bond. we will leave it there for now. back to you. >> our top stories, the bailout extension for greece and the reforms it must introduce to convince creditors and the electorate. as, on friday, what he called was a victory, actually was not if you look at it. >> did not did -- didn't he say battle, but not the war? >> correct. troika inspections, he has been given both -- >> he does not call it the troika anymore. >> the idea is he will continue with this over the next four months. today, he will put
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forward a three-page document and they have a week to debate it. so far, that has been the situation. >> so he has until tonight? proposals.orward the they have a week to debate it. what is interesting is a 94-year-old resistance fighter during the war, quite famous and highly respected, he said this again after tsipras comes back. "i asked the greek people to forgive me for this illusion." we have a tweet from the finance minister, renowned for his social interaction. involve tax evasion reforms, etc.
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>> thank you very much for that. let's see what social media is saying about that story. >> we are talking about the tweet from alexis tsipras himself. he tweeted yesterday, saying that greece reported successful result in negotiations with europe. that sparked quite a response on social media. hey, all the celebration has got to stop right now. it is still premature. one person saying the jury is still out on that. they are actually your european partners. it is not greece versus europe. you are a member of europe. some saying the greek debt will never be repaid. some are saying, take one for the team. we will help. some humor as well.
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finally, one that says syriza has achieved at least one devaluation of their own promises to the greek electorate. just getre on that, the bloomberg pulsa app on your android or apple operating systems. it is budget day in singapore. the finance minister expected to announce high welfare benefits in what will be their last budget before the election in 2017. our southeast asia correspondent joins us from there. what are people expecting? >> people are expecting a lot. fifth yearebrate his independence year. some people are expecting a jubilee budget, possibly tax payouts.
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is certain there will be more social spending for the lower income as well as the elderly. there is a growing great population. they need to cope with tighter healthher prices on care, for instance. this budget may do just that. this budget is potentially the last before the election to do better this year. it has the smallest margin of at theor independence last one. some say it may use the budget to show it understands the difficulties faced by the people. we may also see a boost for companies. productivity still lagging behind. 2.23%.get of -- they may prop up singapore's growth. gdp slowing. it has been challenging given
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the sluggish global recovery. the announcement expected at 3:30 p.m. local time. we will then get expected -- perspective tomorrow morning live, exclusively in our studio. >> what more do we know about the hospitalization? >> he has been hospitalized for two weeks now. he is being treated for severe pneumonia. he -- he remains on mechanical ventilation, unconscious, lightly sedated. stabilized.n has the public will be informed of any significant change. as you know, he is singapore's first elected prime minister, of founding father singapore, the man with transforming a city state from a third to a first-world economy. his son is the current prime minister.
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he was hospitalized recently for prostate cancer. we wish them both a speedy recovery. >> loads more still to come right here on "trending business ." one of the highlights of hong expectedurism scene is to expand. we will hear from ocean park's chief executive. that is after this short break. ♪
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>> some other stories making headlines around the world. an official review of the sydney coffee shop siege that left three people dead. authorities should make operational changes to lower the risk to the public. a man was able to take 17 people cafe inat the lindt december when he was on bail with a history of violence and
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extremist sympathy. they say firearms and justice policies should be updated. cleaning up after cyclone marcia, the storm weakened from a category five system as it crossed the coast. still am a strong wind and torrential rain. more than 1500 homes were damaged. the effects were felt in the state capital of brisbane. australia's world cup game against bangladesh was abandoned. shipments are across the pacific are starting to get back to normal after a nine-month labor dispute. the argument about arbitration in the workplace had affected ports from san diego to portland. and forced several asian companies to ship goods by air at more than 10 times the cost of sending them by sea. been on thesia has move the past few days as people celebrated the new year.
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in hong kong, the iconic ocean park. let's see how the holiday period has gone. we are joined by their chief executive. how did the lunar new year holiday pan out? it is still ongoing when it comes to chinese public holidays. >> you are right. actually, it has been a great start to the new year. we normally observe it over a 14-day period. we are only looking at the first four days. it has been good. we are looking to match our prior year record performance at this point. it is tracking in that way. we are finding more mainland visitors, our primary visitor, are extending their observance over two months. they do not all come at one time anymore. it is actually better for the park and the guest experience. >> absolutely. what we have seen in macau has been a drop-off in revenue.
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are they spending the same when they come to ocean park? excitedactually pretty with that question because we are seeing higher spending, higher per capita spending in the gates on food and retail and longer lanes of stay in the park. that has been a real positive coming out of this year. we tend to see that europe on year. -- year-upon-year. you are sometimes hesitant and wonder if you will not see similar trends, but we have not seen that. >> i am sure you have been enjoying -- enjoying yourself. let's take a look at the overall picture. how were you affected by the occupy hong kong protest last year? not. actually were it began at the end of september. it kind of hit during our halloween period. biggest inen is the
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the world because of the market. we had a record october and a record november and a record december as well. all three of those months were the top one or two months in our history. really no real impact. we saw a lift in local and a change in the demography a little bit with more growth coming in. all in all, it still worked out very well for us. -- i amwould you say not just referring this to ocean park, but theme parks in general. what are the biggest challenges in the industry that you face? >> we are watching a lot of growth in the industry at the moment, especially in mainland china. there is incredible growth in discretionary time and income. a growing middle class generally drives themepark investment and growth. the challenge is a -- is keeping that experience fresh and new.
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really making sure you are always ahead of what is happening around you. that has been the key for us. we have been fresh, unique, consistently distinctive as a hong kong product. we continue to work on that. it is just making sure you are managing guest flows in a way that everyone has a good time. what we like to say at ocean park is you will run out of time before you run out of things to do. we have over 85 rides, shows, and attractions. we give the guests an awful lot to choose from. that is a great way to manage these high peak days that we have during chinese new year. >> i want to pick up on one thing you said, "distinctive hong kong experience." that exclusively in hong kong? are you going to be expanding further into the mainland? >> we will not be expanding into the mainland, but we are focused on always being culturally relevant to the markets we serve. we recognize the markets that
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are coming to hong kong, we want to give them a very hong kong experience. i often say that you will only get a hong kong themepark experience at ocean park. it is what we offer. it is everything about us. open since 1967, we are steeped in culture and traditions of hong kong. that is what people come to hong kong for. we are about to open an attraction called "adventures in australia" in march that was a las from australia. we will open a broader exhibit .ith wallabies and kookaburra's it will feature the food, the drink, the wine of south australia, which is unbelievable, as well as giving our guests some exposure in living a healthy and sustainable lifestyle. we see it as true to our mission so we can build upon that in a great attraction that kind of transposes the guest or
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juxtaposes the guest between being on hong kong streets entering a traditional, old theater in hong kong, and then entering australia to see these incredible animals and learn more about them. >> i was going to ask you about this opening, but you managed to get your plug in yourself. tom, thank you very much indeed for that. up, we look at how one man's story became an online sensation in china. ♪
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>> we are going to get you straight over to yvonne to take a look at what is trending. >> we are talking about this incredible story to show the
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power of social media. this is a buzz feed writer that was talking about his stolen phone that ended up in china and he ended up becoming a minor celebrity. he was looking through his phone and he wasis icloud like, who is this person next to these orange trees? it came up on his new phone under his icloud. everyone picked up the story and says, you are famous. everyone knows your story and we are helping you. the orange tree. they called it orange brother and they actually found mr. orange tree and are going to put them up and meet somehow. province, thiss area of china. people tweeting at him saying, we wish you could find him. is so famous in china that all my friends have known you as the orange tree guy.
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so many people have read his story. how romantic it is. like he is your long lost brother. we are taking a look at the oscars as well. >> today, the top-trending story on twitter is the oscars. it is all the talk about the weather because it is not great in southern california. it is raining. mops wrapped in duct tape. still, all of this water is not really dampening the hollywood spirit. you see cate blachett. she has become a trending topic because she is apparently the academy of elegance -- epitome of elegance. the necklace she was wearing, people tweeting about that. also, julianne moore. >> we will watch closely there. back to you.
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is backding business" in a couple of minutes. we are looking at the glitz and glamour and golden statues. year's academy awards so far. ♪
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>> it is the 23rd of february. this is "trending business". live in washington dc, jakarta, this hour. a look at what we are watching this morning. greece's new debt deadline, they have to until the end of the day to produce reforms. europe's finance ministers deciding whether to keep money flowing. optimism about prospects for
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greece. japan leading markets higher towards their highest close since simpson amber. -- september. it is hollywood's guest night of the year. the oscars will be one of the social media's biggest events ever. follow me on twitter, and include #trending business. over to jakarta later in the hour. let's take a look at how the region is shaping up so far. here's david. >> we are getting to levels where i am sure some people are not thinking with their heads straight. a 13 year high. , last iippines, jakarta checked, about eight points north of 5400. another record index
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above 5400. this month alone, we have seen inflowlion dollars of into the indonesian stock market. another market, seven straight days of gains, 48 points north of 7800 right now. the influence for that market, $815 million. ath these asian markets are record levels. back to you. >> the greek government walks a next 24ire over the hours. they must satisfy creditors as well as anti-austerity parties. >> you can question that because what he has got is time to put his proposals forward. new reforms and today.
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48 hours for him and his team to come up with a new plan. lost was what he got into government four. no more troika. extension, the loan extension, he promised the greeks no more bailout. that is also in place. he failed on that, but this is important for the greek banking system. they get four months of reprieve. >> we want to battle -- a battle, but not the war. the real difficulties, including news related to the negotiations in our relationship with our partners, are still ahead. athens, the new plan, a three page proposal
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which could include tax evasion. possible income tax on greek ship earners -- ship owners. keep your eye on this story that is developing as the morning unfolds. >> we will look more at that story later. is t me, my handle @rishaadtv. secret swiss accounts could dominate headlines. what are we looking at? a good year. the bank expects profits to fall 7% in pretax profits. there expect the net income to fall 3% to $15 billion. they are being hit by operating
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costs at 4%. ,he ceo is trying to exit cutting ties with customers and spending billions on compliance. compliance is a key word here. a jvc has been hit by a tax evasion scandal from its swiss arm, that it has been fined $1.2 billion or happening -- helping drug cartels laundering money. litigation expenses may reach $1.3 billion for the full year. compensation to u.k. customers is expected to add $1.2 billion to that. back to you. >> more on that and the day's top stories. ringing together the best of news, do check it out. it is at bloomberg.com. let's turn back to the other stories we are watching. an. >> we aree m
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taking a look at bluescope. shares were plunging after the company posted earnings. it was a pretty good one for the first half of the year. shares plunging as much as 10% this morning, down about 8% now steelmakingustralia posted net income up 26% on the second half last year. sales up 9%. there was weakness in the iron division, weakness in steel prices. domestically, doing pretty well. steel costs falling significantly. have fallen.l, we have seen a boost in residential construction in australia. it is good news for shareholders as well, after there was no dividend offerings last year. they are now offering three
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cents interim dividends. analysts positive. about kaiser, saying, we need more breathing space to allow for this agreement to avoid bankruptcy overall. suspension of repayments ahead of its planned acquisition of kaisa. resolution of debts is a condition of the sale. embroiled in a inbe, and missed a payment january. they avoided becoming the first chinese homebuilder to default earlier this month. there are still more bond coupons to calm, due march 18th and 19th. let's change over to disney. if you want to go to the magic kingdom in orlando, you have to pay big bucks. more than $100 for tickets races
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right now. the company accounts rate -- raised prices by 6%. $105, breaking the $100 level for the first time. they also posted raises and prices for the company's three other orlando resorts. to $97 as well as the california adventure parks. world's largest resort operator, announced they are reinvesting $8 million in the past five years to bring more theme parks more rides for all customers. we will see the cost double since 2003. back to you. >> later, friend or foe? an investigation into india's billionaires. headed to mumbai for the latest. and, the golden statuettes being handed out. who are the winners and losers so far?
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turning business returns into gold.
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>> the academy awards are underway. washington, the of boxesident office.com. they have been reporting on the industry for over 90 years. any surprises so far? >> thanks for having me. no major surprises so far. couple awards have been handed out. simmons won best supporting actor. no surprises in the technical categories. to the big for prizes. let's have a look at this page
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are. that is the big one. we have eight nominees. you pick "birdman"? there has been a lot of money going towards "american sniper." >> it has been a successful commercial movie. lots of people feel that could upset tonight. you never know. the best picture race is as close as it is, "birdman" and "boyhood" have been and neck. could sneakniper" in there. >> people in america aren't really getting how important the conservatives are. >> yes, that's true. a big section of the country has gone behind this movie and endorsed it area they like it. it is important to reflect america's taste.
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america has said they like this movie. >> let's move to best director. aboutt a short while ago, wes anderson, who directed -- some suggest this wasn't even his best movie. you have richard linklater for "boyhood"? , even if itboyhood" doesn't win best picture, it will get best director. people look at that movie like a directorial achievement. he spent 12 years making it. no one has ever done that before in a fiction film. i don't see how he doesn't walk away with that prize. >> let's get to back -- best act were -- best actor. game," a long night for benedict. mayne is yourred
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pick? >> he and michael keaton are you and neck. .ddie has won more awards but michael keaton has a thing going for him, the oscars love to give career awards. michael keaton has never won an oscar. people respect him. his way. another reason to bring up" this is sniper," another place where we could see an upstate -- and upset. " stillnne moore in another nominee? >> she is getting a career award tonight.
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she has been nominated a couple times. the industry loves her. she is getting this award as much for this new film as for her whole body of work. this is a movie that is just now expanding nationwide in theaters. it has a lot to gain in terms of financial impact. i think more people will see this small movie as a result. look atyou work at -- financial impact, is it as important to be nominated, it is more important to be nominated then when? nominations still mean a lot. winning best picture, you can't what a price on that. there are a lot of people all over the world who pay close attention to the nominees for best picture. they will actively seek those thees out before they watch ceremony, because they want to feel like they are a part of it. they want to have an opinion on those movies.
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the nomination goes a long way. if your film is timed well, to benefit theatrically from a nomination, that is much better. the price point on a theatrical ticket is far better than the price point on amazon or obviously netflix, where they aren't making a lot of money off of a movie. if someone is watching a nominee on amazon, they compile five people into the room and pay six dollars for it. if they see it in theaters, distributors make more money. >> give us an idea of the boost it gets by a nomination, percentagewise. i also want to get a flavor of, who has the momentum? who has momentum going into the ceremony? >> the momentum is "birdman" and "boyhood". those are both available on home viewing platforms. the that -- theatrical bob, if a
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movie made $50 million in theaters before oscar, and it is still in the address, it can double that, or more. those movies will not see that. not lots of people are going to see them and the editors of bacon easily watch them at home. it will not benefit as much from this. alice," itike "still is still alive in theaters. if it wins tonight, that'll be crucial to the film finding a bigger audience. aside, the oscars are about promoting hollywood and making sure movies are discovered. that is why, for smaller movies, plash," which just one for betting -- best supporting actor, many people who otherwise would not have, we'll see the movie. >> thanks, phil.
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a movie from poland just one best foreign language film. >> other stories making headlines, 65 people are feared dead after a ferry capsized in bangladesh. it happened about 40 kilometers north of the capital city. over a hundred passengers on the ship when it was hit. was found toferry be carrying twice its capacity when it sank. the indian prime minister is cracking down on corporate espionage. five officials working for big companies were arrested in a sting operation involving stolen government documents. seven more word attained after the weekend. some big-name companies are investigated, including
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india's richest man and his brother. currenciescks and are big performers. astronauts on the international space station have carried out one of the most complicated jobs in the 16 year history. they routed over 200 meters of new cable along the hall. for is an upgrade needed the next generation of craft carrying crews into orbit. the will continue the job on wednesday, and another on sunday. night,ywood's biggest the oscars are trending on social media.
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>> you are watching "trending business" live in hong kong. another acquisition, a drugmaker will buy salix for billions of dollars. it will add gastrointestinal drugs to offerings. ,hares rising on friday eliminating a premium in the purchase price. splurging oners
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luxury leather mean a miss for prada. fewer newed to open stores in 2016, to win more bags pricedwith over $1000. a judge at -- dismissed an antitrust lawsuit against google that claimed android users were forced to use its apps as a result. three weeks to amend the claim and refile the case. google faces similar claims in europe, where lawmakers called for google to be broken up. what is training on social ne. a, here is yvon >> a crazy story out of buzz feed, a writer lost his phone in new york at a bar a year ago. the story has exploded, and the phone ended up in china. guy.is the orange
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pictures are popping up on his new phone because of the icloud. he is like, where are the stories coming from? then, he got tweeted. people said, your story is famous in china. people on twitter found him, and socialoked them up on media. the orange guy says, come to my house for dinner. some say, welcome to china. this is a romantic story of a brotherhood. very cute. everyone expects them to show up and actually have a trip to shut -- china so the two can meet. let's go to the red carpet in l.a.. we are talking about the oscars today. k. simmons is the first person to win an award
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tonight, winning best supporting actor, music to their ears. he beat robert duval and edward norton and others. the night belongs "birdman" to "birdman" "birdman" or "boyhood" . "guardians of the galaxy," the movie, says this tweeter. another topic, what they are wearing. this person says, can we take a look at what men are wearing? they look dapper. >> we have to look at the men and the women. let's have a look at what is training in social media in 20 minutes time to let you know how those stories are developing. stay in touch with us on trending business. vonnemantv. mayweather-patio -- paqiao
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trending as well. and he'sws manny, because of us now. >> i don't know him. what they tweeted after the fight, mayweather came out on his social media account. six years in the making. manny pacquiao tweeted this, i am happy floyd and i can give the fans the fight they have wanted for some any years. thousands of retweets. mayweather,om floyd t. many people
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retreating the two fighters. mayweather is going to be 38 years old during fight night. manny is 36 and will put his unbeaten record at stake to someone that many argue may have the biggest chance to give him 47-1. 47 have tried, 47 have failed. third.ond and >> thanks, david. coming up, the indonesian budget. and thousands of passengers are left stranded at the new year. how the airline dealt with the problem.
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>> up-to-date with the top stories trending. japan leading asian stocks to their highest close since september. greek bailout, athens has the end of the day to produce reports that will appease the greek public and creditors. secret swiss accounts may dominate they -- europe's biggest bank expected to fall, a headache for ceos. accounts in ald
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secret swiss bank account. the titans of indian industry, a tightening on corruption happens. sting operation involving stolen government documents. look at what is moving the markets. here is david. ,> over the last few minutes the korean government speaking before parliament, the economy expected to improve on oil. i would imagine this is a drop in oil and recovery out of the korean central bank. he bit of a move up. this is what we have for the index right now. japan, big movers. individual movers. -- did irt off with
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mention that? 12 percent up. nikkei reporting that they will establish a biofuel partnership with chevron. itoham doubling their net income. , three other movers industries,nch what's the story? to ¥6.7 billion. that is the year and dividend forecast. multinationalser . shifting gears, australia, big movers here as well. up to an half percent. atrly simple, neutral
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goldman sachs, transpacific down, let's leave it there for now. back to you. greece,ut extension for reforms must convince creditors, particularly germany. also, its own electorate. going back to greece, he said, this is a great victory. the bailout extension still exists for four months. we have the troika that exists. >> it is not called a troika anymore. >> it's the same people, a different word. he promised when he came into power, this is all part -- we will have a new government and so on and so forth. germany and the rest of europe have one the battle, not the war. exceptdid not win much, to put forward new reforms today.
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been given much time? >> 48 hours. they have the week to debate before they come back. i mentioned before, the backlash is important. -- a 94-year-old war hero, credited to help bringing down the germans -- >> the left wing of this left party? >> he is a member of the european parliament. said, i ask greek people to forgive me for contributing to this illusion. , ar the weekend, shipowners huge legacy of greece, they may stay aloft.
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tackle tax evasion. an independentte tax authority. it was not safeguarded before. the wealthy, pensions. set up a bad bank to deal with bank concerns. that left a few options. some claim that a reform list is almost ready. rumors that we have dispatched it already to commission is false. >> bad bank is what ireland set up? >> it is the same with greece. >> a long time coming. china is cracking down on corruption. money is surging, which means downward pressure on the yuan.
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diminished returns at home means looking further a field. >> it is never easy to follow the money trail in china, but the numbers may be telling. capital outpost from china swelled over the fourth quarter, $320 billion for the full year. >> there is an increased appetite to look for investments abroad. diversification needs. maybe they could put thereafter -- assets in foreign countries. anticorruption drive, that leads to a bit of capital flight as well. >> more chinese are investing in the u.s. from the u.s. government went to the chinese, who can get a green card by investing half $1 million. the dollars must be for a project creating a least 10 new
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full-time jobs. tonese money is matched american ventures. >> before this, it was for rich people. triangle turns to middle-class. >> she says the majority of chinese clients seeking green cards do so's other children can study in the u.s. >> the younger generation, uc graduate students -- you see graduate students, high school, elementary students. >> this isn't the only reason why people would look to the u.s. for investment. i know seattle is known for its gray skies, but not industrial gray, like this. bigeve me, this is a selling point. cleaner air and cheaper properties. take clientsgents out of the water to not only woo
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them to buy a home, but to the american way of life as well. >> up in the past few years, i have seen more chinese nationals visit the area and interested in purchasing property. they are now looking to emigrate, they know there are opportunities here. -- they are not looking to arerate, i know there opportunities here. >> seattle's rising property market is driven by chinese, a phenomenon seen in from madrid to sin me -- sydney. backlash,.s. ca especially if it is revealed the chinese are buying green cards? >> i don't believe that. i feel america needs this kind of investment. more jobs. that is a lien you to talk about. >> and, ensure the source of the , dare i say, fishy.
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>> taking to the skies, indonesia is biggest airline coming under fire about delays over the lunar new year after passengers were left stranded for days. this is a big problem that has taken on a political angle? analysts say that. a brief background, the airline claimed when three aircraft were damaged, which led to a distraction of flight schedules includinge delays hundreds of flights and 2000 passengers that were affected. indonesia's largest carrier has around 100 aircraft. easy to say it was not
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mobilize substitute aircraft. the delays caused chaos at passengersith inflicting $8,000 worth of damage. the airline was unable to refund the tickets. cash,nly had $116,000 in theenough to pay all passengers. airport authorities had to step in and refund ticket money. to some refunded money passengers, and the operator had to pay hundreds of thousands in cash to get a refund. owned byne is only -- a politician, who is also a member of the presidential advisory council. analysts commend the move, saying the government should have inflows -- enforced laws sanctions to the
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airline. >> it is budget day in singapore. the finance minister was expected to announce higher welfare benefits in what may be the administration's last budget before the 2017 election. expecting?re you expect a jubilee budget, singapore celebrating its 50th year of independence. payouts,tax release, analysts certain there will be more social spending for low income and elderly. the income gap has widened, like the rest of asia. there is also a growing gray population. they need support to cope with higher prices on health care. the budget may help you that. the budget, potentially the last
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before an election. the ruling party wants to do better this time around. smallest margin of voters at the last one. some say it they used the budget to show they understand challenges faced by the people. apart from that, we also see companies focusing on productivity, which is still lagging behind the target. the government may extend yet again, a program to help companies increase productivity. that may, in turn, help boost the gdp, which is slowing. slowinging, given the -- sluggish global economy. apparently, singapore's prime minister has been hospitalized? >> he has been hospitalized for two weeks, treated for severe pneumonia. he is on mechanical ventilation.
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according to a, statement from the prime minister's office. his condition has stabilized. the public will be informed of any change. he was singapore's first elected prime minister, known to be the following -- founding father of modern singapore. his son is the current prime minister, in power since 2004. the former prime minister was hospitalized for prostate cancer. he is expecting a full recovery. story, download our mobile app. available on android, apple, and windows. up next, getting a head start on
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the key events we will be watching over the next week. china emi out later this week. the economy is slowing.
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>> an official review of the sydni coffee shop siege that left three dead says operational changes should be made to lower the risk to the public. take 17 peopleto hostage in december while he was unveiled with a history of extremists have that these. the prime minister outlined new security measures, including plans to revoke citizenship of australian dual nationals involved in foreign fighting. peopleannot allow that
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to use our good nature against us. a government will develop amendments to the australian citizenship act, so we can revoke or suspend australian citizenship in the case of dual nationals. -- queensland is clearing up after tropical storm marcia. it brought strong winds and torrential rains. more than 1500 homes were damaged. fx were felt in brisbane. a soccer game against bangladesh was abandoned. shipments across the pacific are getting back to normal after a nine-month dispute at american west coast ports. arguments over arbitration in the work place had affects on ports for several asian to ship goods by air >>tead of by see -- sea.
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china's factory output, and the currency war. the key events of the year. chief asia economist, richard, good to see you. china, andek out of a slew of other data. what they are and what they are showing you. >> based on the wikileaks table from premier li, when he set a number of years ago that there were three indicators you want to look at that the chinese economy to get a guide to what is going on. the official gdp numbers are man-made. the indicators are rail cargo volumes, bank lending, and electricity production. least two of those measures, rail cargo and electricity production, very soft. whichularly rail cargo,
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have been soft since asia crisis in the 1990's. >> you could argue that people have become more efficient. economy that is becoming less dependent on manufacturing. but, at an uncomfortably rapid rate. when you look at electricity reduction rates, they are growing less than 2%. it is hard to square numbers like that with official gdp numbers. seven-7.5%.ound when you look at indicators on the industrial side, i think we can put more faith than those. real gdp growth me be more like 4%, 5%. >> you do have the ppi number, which shows a huge amount of overcapacity and underutilization. >> absolutely. i think this is one of the problems for the chinese economy. a lot of the chickens of the
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growth model or coming home to .oost overcapacity as a function of investment is inflation or he. ,hat downward pressure on gdp and heavy downward pressure on nominal gdp, the overall cash flows on the economy. that matters, because china is -- cast hello -- cash flow is needed. >> let's move to currency wars. who is involved? what happens next? how far as the european central bank, what is called the tricolor, and the greek issue, playing up with this? >> asia is caught in the crossfire of these currency wars. china in particular is the biggest loser, because it is pegged to the u.s. dollar and it
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is importing u.s. dollar strength against the euro and .he yen this is an unwelcome source of downward pressure on the chinese economy. the news on greece, positive. a temporary reprieve. the view that this is always likely to be the case, that it was ultimately in the interests of both parties to come to at least some sort of temporary for aement, and cool off time and allow cooler heads to prevail. is far greek situation from over. the big picture i think for asia, and what matters for investors here, is that we will be in this environment of u.s. dollar strength and euro and yen weakness for some time to calm. that imposes additional pressures on central banks, particularly china. >> the budget coming up, what do
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you think? >> i want to see something from the finance minister. what india has done successfully over the last few years goes back to the last administration. there has been a downward trajectory in the budget deficit. it has been low-quality fiscal adjustment, the savings have largely been drew -- driven through cuts, which is what india needs. subsidy spending being pushed into the following year, generous assumptions on nominal gdp growth. what i think, and what banks want to see, is high-quality fiscal adjustments. not hitting targets through short-term cuts, clear evidence of longer-term revenue generation to some progress on the sales tax, which would help secure revenue base moving forward. and, further action on subsidies. those are the key pressure
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points. >> smoke, mirrors, and a budget. who knew? coming up, staying with india. the crackdown on corporate espionage taking down the country's most influential figures. and, trending business -- that, when "trending business" returns.
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>> the indian prime minister is taking on some of the country's wealthiest people as part of a crackdown on industrial espionage. joining us now from mumbai, what is going on here? that sensational corporate espionage scandal, in which classified documents were allegedly leaked, that seems to
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be getting murkier by the day. allegations of stolen documents has deepened this weekend following the arrest of employees at conglomerates controlled by four of the country's most prominent and biggest tycoons. of the current prime minister has launched an investigation to target high profile people. these are lengthy, potentially damaging investigations. the allegation is that duplicate keys were made to the minister's rooms, and sensitive documents were removed from the rooms and passed on. the investigation is ongoing. we continue to watch what is going on. back to you. this debutit for edition of "trending business".
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asia edge is coming up next. today's guest is the chief asia-pacific economist. edge" is next.
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>> hello, i am a john dawson. this is "asia edge." ♪ trading. japan's markets, the highest since september. hasgovernment in athens only one day to come up with convincing the reforms and then the rest of europe decides. hsbc's earnings could be overshadowed by executive pay
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and secret accounts. >> watching that. i am angie lau. modi takes on a corporate india. the government tackles corporate espionage. back to work. shipments across the pacific are getting back to normal after a nine month labor dispute on america's west coast. and the oscar goes to -- hollywood's biggest night and expected to be one of social media's busiest ever. all of that and more on "asia edge." and i amavid ingles watching the markets for you. a decent start to the week. most markets moving higher except the hang seng index. where are we now? record levels for the philippines and indonesia. the nikkei 225

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