this is trending the business. we are going to be live in singapore this hour. this is what we are watching. the party gathers to hammer out targets for the years and the fading growth with pragmatic and progrowth philosophy towards the budget. ands a missed opportunity

it is the third of a three sided screen. what you think of the top story. we have singapore, taiwan, and malaysia coming online. of news thiseces and opened on saturday there is china in the mix 30 minutes from now with first reaction to the second rate cut in three months. what else do we have? it is a bit under the radar

is inflation data coming out of thailand and indonesia and showing a negative read their. this is the dis-inflationary environment here. this is the check on the chinacy market today with speculating more. >> let's go to our top story and china doing it again. buildupto deflation ahead of the meeting with john here and the latest. cutting up to november with

40 basis points. this is the reaction with cutting of the gdp target that helps the economy lift up theyin february and considered easing if the january date a -- data disappointed and it did. the concern was deflation rising with inflatione slowing down significantly and a figure of factory contractions and other concerns. also, the housing market slumped with deflation deepening.

there is a housing slump and deflation with very good ratesce of a cut of twice. they can start with the boost behind them and they cut growth targets. >> writes. we will take a more detailed look at that later in the program. hashtag.e the the first full budget is being seen as a missed opportunity with a strong election mandate and a chance to bring finances under control. -- yvonne went through the numbers.

ande laid out the roadmap the minister added additional spending that could cement the fastest-growing driver in the markets with some calling it a pro-growth type of budget. stepsided taking stronger with liquid petroleum and the sweet spot is the largest and itr of crude searched up again. narrowed and it is wider than what was committed to earlier. the cut in tax and infrastructure with power plants the opposition

party controls the parliament and showed the political support that they had last year cannot be taken for granted. rose and there were 12 directional moves in that day. morning, hong kong and singapore at half past 9:00 in the morning. we talk about futures in singapore and how we saw the finish on friday with action down at two thirds of 1%. we will be building on that. here is the round up. the mobile world congress was

a reboot of the premium galaxy smartphone with a fingerprint reader of securities. andphones include payment 20 countries starting april 10. they are trying to regain the edge over apple. that has been one of samsung's strengths. huawei unveiled a smartphone watch. it is the week where apple is expected to unveil the device. and ithe first wearable is focusing on the strategies. ihs says the wearable is up

from 10 billion. more to quell the property market. --perty valued is up at property values are up at $900,000. borrowers aree down 50% and that goes to commercial property. back to you. >> massive demonstrations happened over the weekend. that is on bloomberg.com. and any questions

for our guest can be said to my handle on twitter. break, thefter the anti-climax. find out why when trending business continues.

the first full year budget as prime minister. not the game changer that was assumed. thank you for joining us. not expecting that much from this and we can't be disappointed. >> i think there is a sense that markets were looking for any andnal in shock --

adrenaline shock. i think we got the bare minimum. we got enough from him to keep the show on the road and this was a pro-growth and pro-business budget. with -- it isews good news with a number of measures. optimismstill a lot of there is aming and lot of wishful thinking in the budget. how to you view a? we have fiscal consolidation doubling investments on building road.

given a lot in the way. >> how important is it to have this? one in one years time. there is a hole in a politicking itt it has to go through and is a general point here and there is a theory of optimism and when the base optimism is not realized with the target, it has to be ensuring the deficit reduction and that is a real risk with the

budget and the privatization process. these ambitions have capital fording more general and the next year. >> what are they going to be looking out with this budget? >> they want to see a continuation of consolidation and did we get that? a target for gdp and it has been relaxed. it is slightly higher in the short-term. better one in the short-term?

i do not think this is a particular game changer. >> this is something they have been saying and we have done all that we can. you need to get your act together fiscally. >> you have to show me high-quality fiscal consolidation and discipline. the good news is that numbers are going down and you are going to see interest rates go down in india. does the budget jets the rate indicates? >> it growth. again, -- >> absolutely. i think what has really been

keeping it on track is the moreall of oil prices and space for r.b.i. to cut rates. we have a rate cut at the next meeting in april. that is because of oil and low inflation, rather than the fiscal front on this budget. india looks at emerging markets and the perception could change quickly. looks projection realistic to you? >> it is difficult. we are trying to get our heads around and try to make sense of the growth numbers. can i would say is that you look at the gdp driving the tax

face and it is a relatively , which iunemployed 5% do not think is unrealistic. i think it remains to be seen. the overall number is not unrealistic, in my opinion. >> the indian economy had a recalibration. seem to lose. the economic adviser did not believe the numbers. >> i bet they are please. >> very pleased. 5%y are growing less than and expecting to grow a .5%. how is that possible question mark >> coming back to the numbers in the budget, the concern is the tax base is not that buoyant. >> it's not just about the tax

base. >> the earnings revenues are not up around 5% and are consistent with the economy growing. >> how do you think the money will flow in weston mark >> the jury remains out and it is not the game changing budget. think the good news for india is that the financial flows are likely to come in, relative to the big emerging markets it india is still the pick of the bunch. the interest rates are coming down and inflation collapse with growth on a track. in financial flows will come and there will be a lurch back up in oil prices.

oil prices?ge the probably not. >> thank you. thank you for joining us. >> stories are making headlines around the world. wanting more for repayments and insisting it will not renege. there is about $1.7 billion of athens had an extension of the loan agreement. the opposition has staged a demonstration to commemorate a former ally who fell out of favor and became an outspoken critic of the government.

he helped plan a protest against the government. police fired pepper spray. near a town on the border that was selling baby formula to mainlanders. makes luxuryes tax goods cheaper's and they are taking over the border to be sold for a profit. >> in a moment, another first in the hong kong and shanghai stock connect. that is right after the short break.

>> selected chinese shares through links today. and how significant is the move by the authority? >> i think it is significant. the policy reform perspective is tangible and it opened up for the connect. dynamic opens up a new where it has been long investing and we have an opportunity to spur activity that has been

anemic so far. >> you talk about the move and how is it at the moment? andoth sides are limited you look at the performance in 180market and the shanghai 50% sincever september with the anticipation coming in and the china stock index here is only up 6% and the change is vague. the interesting thing to look at is the tool-listed stock. reflectsemium only performance and there has been a performance gap in the average

share. and youk of valuation have seen the stocks like the 7.62hai 180 ramp up from 11.6 over that time. and there are stocks that are shorted under the new connect. the connect surprised interest rates with the cut. >> it is ironic that it happens on the same day and if we look over the course of time, we have seen rounds of interest rate cuts like everywhere in the market and we have seen that as

stock sincerce with autumn. the will play into shorting starting of the new ability on the day that they have cut rates. >> the jury is out on that. at what is coming up next. a curved screen gives samsung the mobile edge over apple. we return in a couple of minutes. day isnghai trading getting .

♪ >> the top stories trending this hour, a second rate cut in three high level of concern about saving growth, investors welcoming the intervention. and the samsung galaxy features a three-sided screen. samsunggimmick, or is ahead of the curve?

is a missedsay it opportunity to bring the indian finances back under control. the shanghai in hong kong trading weak, just starting off. david? chart, looking at the and reactions to the rate cuts over the weekend, and here is where we are right now. 33232. oft is the level right now the shanghai index. rate,long on the interest the biggest gain on those rate almost three months. last week, on speculation, get this, of an improvement in manufacturing weakening the case for more monetary easing. that is for the shanghai composite. and also, look at the dollars/--

dollar/yuan. this is on a trade-weighted basis. at it against the japanese, and we look at it ro, for example, and taking a look at what else we are following in hong kong, the gaming stocks, we have the -- brace yourself for a big drop, more than 50%. that is what analysts are saying. jpmorgan basically describing the numbers as shockingly bad, cutting their growth forecast to -21. necessarily mean -- let's keep it there for now. rish? >> trading starting in china with a but a, --

atalbo surpriseo at thest, boost, at the weekend, which surprised people. >> a big issue. all of together, you also have comments back in february, the pbocaid it would -- the said it would consider easing. the lending rate was cut on , atrday by 25 basis points the deposit rate was cut by a similar amount. in november, the lending rate was cut. inflation slowed significantly. that was one of the main concerns. john, disinflation.

weak inflation data is out there, so this could be seen as fortuitous. >> yes. u.s. --bviously, the you are seeing deflation, the lowest since 2009. you son numbers out the day after they cut rates. factories are suffering, spending is suffering, and growth is clearly suffering, so there is a need to do something fairly aggressive. rates, what they have done, the second time in three months. >> thanks, john, john dawson there. here is roz. >> there has been plenty of speculation about more easing,

especially before the npc. now, let's take a look. they are saying if the situation is so good, why are so many countries cutting interest rate? also, china risk -- many investors are looking ahead to see if there will be any further easing coming out this year. back to you. you can download bloomberg to your tablet, available in android, apple, or windows. and an attempt to clawback

market share from apple, two new smartphones being unveiled. samsung. into the future. mobile payments now growing in have apple and we pay already, and then samsung pay part of their premium smartphone lineup, some there a popular -- some very popular .martphones this is really an overhaul of the galaxy phone. thinner.her -- is >> and there is the person that is calling -- >> always useful. these go on sale in 20 countries, and more countries around the world, but that premium model half that screen.

-- but that premium model has that screen. there is a lot of talk about this, and most of the comments that i have been positive. of course, there are those detractors, who say this phone does not have the power of the apple, those features. >> when you say power, it does power up quickly. htc, thek about virtual reality challenged to to sony.hallenge virtualng to get into and it's htc has its way, they say they want to do in htc gets its way, they say they want to get in i mmersive.

a ceo.ing us is thanks so much for joining us. what do you make of this phone? can't it help samsung get back market share? samsung? >>lp samsung is trying to show the world it is going to hit the premium market, that chinese makers will not take them down. i think samsung has done a nice job from a hardware perspective of making a phone that has a nice metal case that has an edge, and it really does have a premium field. i think what samsung is trying to do is place itself in the field with apple. now, we will see what the price is. that is really unclear as of yet, but if the price is reasonable, yes, i think samsung

will make some gains in the coming year. is the mobilent phone business to samsung? >> the mobile phone business is the nameplate, very much a part of samsung that drives its image around the world, that drive is itsing, it's branding -- branding. but at the same time, samsung is a sprawling conglomerate. they make everything from semi ships,ors to displays to and samsung is humongous. i think they have close to 400,000 employees worldwide. than the gdp of iceland. this is a big company, and mobile phones are not the only and it does.

>> would they be prepared to let ?his division, if you like, go >> no, never, no, no, no. samsung very much wants to be a nameplate maker of smartphones. samsung once to be on par with apple. par withto be on apple. ships, that does not really drive the same level of prestige they can get with phones. launching, and the timing, and the corporate culture. >> ok, so samsung is currently in a transition phase. in may 2014, its leader, who is r, he hasgeneration hei been in a coma, and it is not ut,ar whether he will come o

and since then, the samsung group have been putting the pieces in place to transfer awer to his son, harvard-educated, japanese-educated business leader, and he rarely makes public appearances. he really serves as the global face of samsung. he is the person who goes and has meetings with mark zuckerberg, with tim cook, with steve jobs when he was alive. one invited to the funeral. the awkward part about this is it is not actually very clear what he has accomplished. on variousrints products, nobody knows what he has exactly done. the company has kept him in secret for a long time. they have protected his image,

and part of the reason, i believe, is samsung wants to underim some successes his belt. that is one reason. there are certainly others. but overall, a lot of what is going on at samsung is for the generational transition. what's well, let's very quickly mention that this is a company, well, let's- >> very quickly mention that this is a company, of course, that likes to get into new markets. >> samsung does have five new growth markets. they are shooting for $500 billion in sales. that is very ambitious. they have net many of their benchmarks -- they have met many of their benchmarks. electric vehicle batteries and such. of samsung said many of their products, many of

their smartphones 10 years from now will be irrelevant. they will not be the game changers they once were, and we need to find new growth areas. at the same time, it does not really a quiet enough force. samsung will have to do mergers and acquisitions. so this is really what the future of samsung looks like. it may not actually be consumer electronics. 10 yearsoney makers down the road could be components, could be health care devices, and things that relate there.preading out from >> still to come, lenovo deciding to get rid of its by bug.- its spy answers from cyber security experts. ♪

♪ >> the stories making headlines around the world. arrived netanyahu has in the u.s., and he is expected to concentrate on the dangers of iran's nuclear program. he was invited by republican leaders, who did not tell the white house in advance. netanyahu will not meet president obama. missiles before the annual wargames with the united intos, with rockets fired the peninsula before exercises start today and runs through the end of the month, and north korea says they are repairing for invasion. and australia, malaysia, and indonesia have launched a new claimsthat could allow to be found more easily.

this is just one week before the first anniversary of the disappearance of the flight 370 lumpur fromkuala beijing. >> the hsbc purchasing managers index coming in above expectations. a figure ofing for 50.1, and we got a figure of 50.7. attraction when it came in 49.7. itsvo, its promise to purge of software. this ons get more on the ever evolving situation of

computer security. what did you make of this software? and what about the reaction to all of this? adwareproblem, rish, the software, this created a potential risk to the customers. so, basically, they are trying to breach and compromise lenovo's corporate security. and this is a result of the

compromise of security. and the damage to their reputation. >> right. well, what does this software actually do? >> so the software, i would say, is benign. adware does.all to kind of user habits, just make the next marketing campaign successful. there is nothing criminal in what they collect, i think, but what they missed is the security side. not protect the channel that they used to communicate, and this is a critical issue. >> let's talk a little bit now about the threat that we do have, i suppose, from the cyber security perspective. what sort of groups are involved in this? getting involved in

this, as well? we see threecally, types of actors on the internet, ,o these are cyber activists and there are criminals earning money online, and a slightly smaller group. nation-statee hackers. >> there is a cyber criminal group. and another group. who are these individuals, and what do they do? >> they are adopting the methods of professional cyber attackers. they are using the same methods, the same approaches to get intoe security, to

networks, and to collect and steal valuable information. they are not chasing any financial gain, some that are just looking for intelligence. >> telecom, -- still to come, gadgets and social media. a look at the gadgets from one of the top tech shows, next. ♪

♪

let's take a look now at what is trending on social media. here is roz. >> one has gone absolutely crazy. it has gone viral in a big way. ccs is a video from a former cctvntert,v -- former presenter, and she is talking bad itollution and how is, and she talks about the birth of her baby girl, who was born with a benign tumor. this has drawn a lot of viewers to this video. it has been viewed more than 29 .illion times we all have our right to enjoy

fresh air and blue sky. >> absolutely. this video has been very, very highly viewed across all of china. though, it has not been taken down, has not been censored by chinese authorities. it is huge, talking about the environment in china, but i will take you to barcelona, high -- far away from china. >> there are some innovations coming out. >> samsung. a lot of people and a lot of cool new products, samsung stealing the headlines with and the three

sided phone, that is a reference samsung. it has a three sided display, so you can set it down on your desk. we all caps samsung debuting samsung -- we also have samsung isuting samsung pay, which to go against apple pay. >> samsung trying to regain their edge over apple. we will be back in about 20

knowes' time to let you how the story is developing, and it is easy to stay in touch with us on "trending business." you can follow me and zeb. ♪

galaxy featuring a three sided screen. we're asking if it's a gimmick or if it's mobile's next big thing. follow me on. don't forget to include the all important hashtag, #trendingbusiness. here's david with a look at what else is going on right now, david? >> you might want to watch out for this indonesian market, two things. inflation coming out that's expected to fall. that comes out in about 2, 3 hours from now, lunchtime. also watch the currency. last i checked, went above 13,000 for the first time since the ruble financial crisis. it's a little bit weaker. weak start. stronger start, but weaker movement. move up there. elsewhere take a look at what's happening across the region. things looking a bit more red.

that rate hike -- rate cut, rather. my mistake. rate cut announced on saturday. second one -- technically four months because it took effect yesterday. really front and center there. let's take a look at the three day effect. currency markets, take a look at the dollar, a little bit weaker. flip side, of course, it makes that the debt. the foreign denominated debt harder to service. we'll get more on that in just a bit. back to you, rish. >> china stocks reacting to the surprise rate cut over the weekend. just the second cut in three months and it does come amid concerns about rising deinformation. timing also fortuitous ahead of the thursday meeting. here's john. >> the other, the shenzhen

composite. hang sang seeing a slight gain. a mixed reaction. the inflation on friday -- on sunday was obviously worse than forecast. overall, just to remind the viewers, the reaction so far, cut the one year lending rate by 25 basis points. in november, they cut it by 40 basis points. 2.5%. as it was also in november. clearly, the effect, inflation, on sunday we have this factory contraction, second time in as many months. deflation concerns, we're dealing with that. ahead of the meeting on thursday, fears they may cut their growth target this year toward 7%. overall you can see the inflation issue is definitely

the main concern for china right now. deflation, as opposed to what they want to see, which is inflation. on sunday, the inflation figures disappointing, therefore, the boost goes away. >> take a more detailed look at that story later in the program. we want your opinions. do tweet us with your thoughts. my handle is on twitter, and include the all-important hashtag, which is #trendingbusiness. indiana's first full year budget under prime minister narendramodi, it was his chances to bring finances under control. >> they're talking about this progrowth balance budget, but

not the game changer some were hoping for. fiscal target narrowed to 3.9% of gdp, wider than the 3.6% the government committed to earlier. climbed 25% from last year. look at the forecast of growth there, 18.2% for the fiscal year of 2016. additional spending could help cement india's position as the fastest growth driver in emerging markets. critics say modi avoided taking stronger steps to cut subsidies on fertilizer and liquid petroleum gas. india in the sweet spot as far as oil prices but some say this could cause inflationary pressures when prices surge up again. opposition parties control the parliament and the loss in the

delhi state election show the political support modi had last year can't be taken for granted. open for trading on saturday, for the first time in 16 years, volatile day, index rose half a percent. 12 directional shifts during that day. jewelers and traders hoping for a tax cut in gold exports. the tax cut kept it at a record 10% and gold imports seemed to surge four times from february to 100 metric tons this month, rish >>well, a special show on that budget later this morning. join the bloomberg tv india anchor. that's half past nine in the morning in mumbai. you don't want to miss that. >> a look at some of the other stories we're watching out for you today. the roundup. >> let's start with technology. samsung is launching two new phones, the s6 and the s6 edge at the mobile world congress in

barcelona. a reboot of the premium galaxy smartphone. both have a 5.1 inch screen. but the s6 edge has a three sided screen that extends to the left and right side of the phone. it has metal bodies and fingerprint readers for security, available in gold, white and black. the s6 is available in blue and the s6 edge in green. they include payment software that makes them compatible with about 90% of card readers. they go on sale in some countries starting april the tenth. apple launched its first phones with bigger displays last year and that was one of samsung's strengths. also looking at airbnb. could be valued at $20 billion. airbnb raised $700 million previously last year led by tpg

capital management, gave airbnb a value of $10 billion. if it does manage to raise $20 billion this time, it would join the ranks of the most highly valued u.s. companies like space x, uber and snap chat. it lets users rent out a room, whole property or just a sofa. it charges fees for each transaction. >> in hong kong, larger down payments are needed for properties valued up to 900,000 usd. homebuyers can only borrow 60% of the purchase price. that goes for commercial, industrial properties as well, such as car parks. in announcing these measures, though, the head of the hong kong monetary authority did say it will affect first-time

buyers. hong kong home prices doubled in the past five years spurred by lower mortgage rates and money flowing in from china. >> looking ahead on the show, a look at the indian budget. why some are calling it a missed opportunity. live to mumbai in a little over a half-hour. coming up next, look at the growing concerns in china that made the pboc act a second time in just three months. this is "trending business." we're back with you in a moment. ♪

>> for the second time in three months, china's central bank has cut rates. they say it's the start of a new round of easing. here's a chinese economist at anz. what do you make of the move? >> i think it's widely expected. we think the next move will be a reserve requirement ratio cut largely because china has been

experiencing large capital outflow. once the capital is flowing out of the country, the onshore policy foundations will tighten and all the interest rates will rise to ease that. the pboc now would have to use both quantity and price means to lower costs. >> what does it mean -- how big a problem is disinflation or even the prospect of deflation? >> well, i think the disinflation process is very fast. going forward, if there's no aggressive monetary policy easing, china will follow other major economies to fall into a deflationary trap. we have already seen that ppi deflation has been in negative territory for 35 months already. >> why hasn't that fed into the mainstream figure? that's what i don't get. >> actually, if you look at the pace of disinflation, it has

been fairly fast. suggesting there are some paths through going on from ppi to cpi inflation. last month, cpi inflation was only .8%, below one percentage point for long time, and this means that there's a significant pass through and more importantly, this suggests that in china, there's a large output gap. and the demand is weak, supply remained fairly strong. that's the reason china is -- the economy is slowing down. >> okay. well, you're saying slowing down, and we should get some sort of official view as to how much it's slowing down. let's also try and frame that answer with a look at better than anticipated pmi number we had an manufacturing. >> the pmi number is slightly better, but if you look at all indicators other than production numbers, the rest of the numbers

in terms of new orders, new export orders remain quite weak. keep in mind, this is the second consecutive below 50 pmi number. this is the official pmi, suggesting that if we don't have a strong march number, china's q1 gdp growth will fall below 7%. >> but they contradict that >>well, this official pmi number is more important, it's the bellwether of chinese key industries. it is more representative, whereas the other one -- i think we should probably look at both and attach a large weight on the official one to gauge china's economic activities >>well, getting back to the first part of that question, mpc meets to come up with the growth target for the year and you're saying to me 7% is a done deal,

basically? >> i think probably last year's experience has more or less confirmed that, you know, 7%, perhaps is the appropriate number for a gdp that is already more than 10 trillion usd. and we think that if growth can be slowed to 7%, if there's a more proactive fiscal and monetary policy on the way, china should be able to achieve that number. the key problem is that china needs to accomplishment its economic policies consistently. >> what about local governments? i think there's a lot of pressure at the moment on central government to release local governments from their own race for growth and that way you get a more accurate picture of how the economy is really evolving, perhaps. this comes against a backdrop of

having to reclassify their debts. >> yes. >> so, you know, what is going on there? >> china just revised its budget law last year. there's a new document came out called document 43 that will allow local governments to issue debt to replace their other debt. meanwhile, local governments can no longer guarantee full -- >> that's crucial, isn't it?. >> that's very important, because if you look at debt issuance has facilitated the local government spending of the last several years is tremendous. the last year, the total debit issuance was around $1.4 trillion. there's worry that if local governments can no longer use lgf to off-balance spending, then there's going to be a significant fiscal shortfall this year. >> and funding gap -- >> absolutely. the big funding gap.

our estimate is about 4.2% of china's gdp. so we think that if the government can encourage provincial government to issue that more this year, perhaps this problem may not be that big. together with the so-called private-public partnership in infrastructure building, given china is a huge saving surplus country, and i think this fiscal gap of chinese version of fiscal sequestration may not have occurred this year. >> that's what we have on the debt front but there's other debts as well. we have national debt, which is debt. but they have, on the other hand, those huge fx reserves. >> that's right. i think if we look at china's debt, we also need to look at chinese assets. as you mentioned, indeed china

is a highly indebted country. meanwhile the government still possess a lot of assets. going forward, if the government can engage in privatization, they can meaningfully lower their national indebted level. >> always a pleasure having you on the program. thank you so much. from anz. that's what we have, thank you very much. >> thank you very much. >> the stories making headlines around the world. the russian opposition has staged its biggest demonstration in three years to commemorate the murdered activist boris nemtsov. he fell out of favor with the government. shot dead in red square on friday as he helped plan a protest against the president. demonstrations were held in other cities, including st. petersburg. >> pepper spray used to break up a protest in hong kong sunday. in a town near the border with dozens of stores selling baby

formula to mainlanders. the protesters blame them for distorting the local economy. hong kong's sales tax makes medicines and luxury goods cheaper. the goods are taken over the border and often sold for a profit. australia, malaysia and indonesia have launched a new airplane tracking system to help track planes like mh 370. it would drop to every five minutes if the airline deviates off course. >> up next, china's pollution is trending online, but not for the season you might think. we'll explain. "trending business" returns after this very short break.

>> samsung has revealed its latest smartphone, the galaxy s6 and the s6 edge, devices going on sale next month with a host of new features. we take a closer look. >> samsung isn't showing a new flagship phone at this year's mobile world congress in barcelona. they're showing two of them. this is the galaxy s6 and this

is the galaxy s6 edge and both have a lot of similarities. they're both using higher quality materials like aluminum and glass and they both are using those materials in a range of bright and interesting colors. in both phones you're going to find the usual set of improvements that happen every year. you're going to see faster processors, a sharper camera, brighter, more vivid displays. but one improvement really does stand out and that is battery life. in both cases you can charge for ten minutes and have enough power to watch a two hour movie. charge for 30 minutes and you'll already be up to 50%. and you can now charge both of these phones wirelessly. of the two phones, the edge is by far the more radical 1. its curved display adds extra space to diplay things like discrete notification and allow you to contact frequently contacted people. the display can also notify you when one of your frequent contacts is calling you, you

assign them a specific color and the phone will glow in that color letting you know that, say, your spouse is calling. here's the thing about the high end of the smartphone market. it keeps getting higher, and samsung has clearly heard calls for more luxurious devices. and with models like these that will be coming out in april, it's obvious that they're not ceding the market to anyone. >> let's look at what's trending at the moment on social media. >> so we're taking a look today at technology and air pollution and zeb, you're going to talk about the mobile world congress. >> we're going to switch gears and talk about what's going on in barcelona, the annual confab of everyone in the mobile business. it attracts lots of people from around the world and look at what's trending, really and what people are saying on twitter. of course, the key themes this year, wearables, virtual reality, as well as three sided phones. we'll get to that in a moment.

samsung's new device. and then some humor. take a look at what this twitter user wrote, geek info now. ikea furniture will soon be able to wirelessly charge your mobile device. that's a joke. but the charging feature is really one of the key sells on this new samsung s6 and the premium one you heard sam talking about in that package. the galaxy s6 -- this is a detractor -- no removable battery, no water resistance. more like the iphone than ever. there are those who are saying samsung is copying apple. >> is it a good thing or bad thing to copy the iphone? depends on what camp you're in. >> i think it's highly illegal and against patent law. >> i'm looking at air pollution and the story put on the

internet by a lady who basically made something like a documentary and put it on yoku. it's been viewed more than 29 million times and basically looks at china's air pollution problems and her personal quest to find the source of the air pollution, asking why there's been nothing done about it or why so little has actually been achieved. and it's got a personal element as well talking about the birth of her child, born with a benign tumor. here's what some people have had to say about it. he had the documentary rated public and the authorities awareness not censoring such videos. >> have they censored? >> so far, no. that's the interesting thing. it's shocking, the price to pay for the development. and giving kudos to the documentary for her efforts to highlight this video. and again, it's been viewed on youtube more than 29 million times and a lot more than that on all of the platforms on which it's been viewed.

it hasn't been censored yet but authorities have, in fact, contacted her to praise her efforts to raising attention to this matter. >> that's because they, too, are putting some attention on it now. >> that's right. that was a look at what's trending on social media. don't forgot, it's easy to stay in touch with us on twitter. >> up next, china cutting rates for the second time in three months showing a top level nervousness, possibly about the slowing economy, slowing economic growth. we'll get reaction to that when "trending business" returns in a couple minutes.

>> trending this hour, the great divide, china currency falling to a two-year low after the central bank cut rates for the second time in three months, the latest movement away from global easing. undercores diverging outlooks for the united states and the rest of the world. singapore cracking open the piggy bank. the government will draw into funds to finance infrastructure, education and social security. it will force investment company to invest more short-term and liquid assets.

progrowth, narendra modi taking to twitter to applaud the finance minister and his budget. his critics say it's a missed opportunity to bring the country's finances back under control. market-wise, we're looking at the yuan and other currencies after china's surprise move on interest rates in the weekend. >> let's talk about the yuan. the trade will get more interesting now that we have more clarity on policy direction from china in the months ahead. china's renminbi does look like it's weakened. loosely tied to the u.s. dollar. look at dollar-yuan, it's barely budged, but the dollar index has actually risen some 20% over the last 12 months. on a trade basis actually strengthened much, much further. take a look against the japanese yen, for example.

this time last year, we were at something like 1450, cross rate. we're now at about 19. up 16% against the yen. euro, this time last year, spot 12, we're now at 14. up 24, 25% against the euro. actually much stronger. the key thing here to watch out for is they may hasten the outflow. fourth quarter last year, something like 90 billion came out of china. they may have to act to stabilize the renminbi. a bit more weakness outside china. currency, japanese yen, we are in the third day of decline. we're more or less at about 120, 119.86 is the level right now. more money moving into the u.s. dollar. let's look at the aussie dollar. inflation was up. >> earlier on flat.

zero inflation month on month. back below 78 u.s. cents. >> we're digesting a mixed weekend of news on the economy there. on the one hand, a surprise rate cut. but on the other hand, more evidence of rising deflation. deflation perhaps the prospect here, but i think the comment word at the moment -- common word at the moment is disinflation. >> we have to remind the viewers the central bank cut their lending rate. cut in november by 40 basis points. cut the deposit rate for the year. effective on sunday. contraction at the factory and the slowest as well, the more evidence of deflation, the highest since 2009. on the one hand, you give the rate cut and on the other hand, take it away.

that's the situation on the weekend. very fortuitous. thursday, the beginning of the annual gathering. the headline there could be we're going to cut our gdp growth target to 7%. that's obviously the crucial thing i'm looking out there. >> and we were talking to earlier, he's also saying 7%. >> 7.5% is a bit too aggressive, 7% is a more likely scenario. for this rate cut again, timed for the inflation figures. that's the reaction. the stocks are mixed because they can't decide whether to go with the rate cut surprise, that's a boost, or actually it's pretty worrying because deflation is creeping up. >> more on the deflation, what are people saying about this? how deep are the concerns? >> the factory deflation is in its lowest level since 2009. also a housing market slump.

all this is a major concern for how they're going to deal with it. that's the pboc's responsibility, to deal with the inflation target. and the concern is more rate cuts around the corner. pretty aggressive november. and now again. so it's clearly a big problem. >> thanks a lot for that. >> samsung grabbing the headlines this morning. attempting to pull back market share from apple at the mobile world congress in barcelona it revealed two new galaxy smartphones already winning positive reviews. indeed samsung's leap into mobile payments. >> this is perhaps the bigger story, really, this move into mobile payments. it means you have your mobile wallet on your smartphone, especially the new s6 and s6 edge, the extension of the galaxy line for samsung. the blogs have lit up today with a lot of praise for this. there's some criticism, though. some of the critics say it looks exactly like the iphone and has the same features.

but you can't deny it's a beautiful-looking phone. the premium version has what samsung is calling a 3-sided screen. >> is that a gimmick, really? >> i guess you could call it that but it's still pretty cool. it lights up. you can color-code your contacts. i don't think you can watch a movie, though. this phone goes on sale april 10th. >> you can tailor that color to who is calling, assign it. >> yeah, exactly. which is a handy little feature. the bigger business story, if you will, is that this mobile payment system is taking off. samsung pay will launch this fall, already has visa and mastercard as partners. a direct competitor to apple pay. >> htc, virtual reality, trying to take on sony. >> the virtual reality space is one that's really nascent, but

htc looking to expand its business lines and it wants to be an early player, from what we understand. it has to go up against sony. project morpheus. htc's will be called vive. controller and sensor tower to play games like "grand theft auto". i've never played it, but i understand it's very, very popular. virtual reality a big deal and a space to watch. >> thank you so much for that. get more on that story anytime, anywhere. just download the bloomberg plus app to your mobile or tablet. available on android, apple or windows. >> some of the other stories we're following today, hyundai recalling more than 200,000 vehicles in the u.s. due to issues with power steering. it applies to elantras manufactured between 2008 and 2010. the manufacturer will notify owners directly and fix the problem free of charge.

regulators didn't mention any accidents or injuries caused by the problem. >> lenovo promising to purge its pcs of advertising software that exposes users to attacks. it's made by a company called super fish. criticized for its ability to monitor web-based activities. lenovo said it was a mistake to include it on their machines. >> the japanese developer of a 3d printer that produces human tissue set to raise $12 million in funding. people familiar with all this say they'll use the investment to boost its sales force. biological 3d printing turns living cells into artificial human tissue which could lead to technology to regenerate body parts such as blood vessels and organs. >> a look at the australian development store chain meyer. shares fell today after the sudden recognition of its chief executive.

bernie brooks resigned. paul allen, paul, this is an abrupt departure here, and it's just ahead of earnings out in a couple weeks. is the timing something we should note? >> well, rish, the market is connecting the dots, and not much liking the picture that it's coming up with, but the meyer chairman and the ceo and the new ceo all had a press conference about 30 minutes ago at which they said there's no need for earnings disclosure, it's not related to the first half results and it's all part of the ongoing strategic review, all part of the plan, if you like. bernie brooks says he's going because he's been at the helm nine years and simply doesn't have the energy to oversee another round of structural reform. he has done is once before. he ushered meyer from being a private company into a publicly listed company. when he took over it was loss-making and things reached a peak in 2010 when profits got to $270 million. but things have been a bit

tougher since then. meyer has been struggling with online competitors and foreign competitors arriving in australia as well, like h&m and top shop. bernie brooks is going to step aside and make way for the new ceo. richard umbers, formerly of australia post. joined meyer last year as chief information officer. bernie brooks departing the stage says he still believes there's plenty left in the department store models. meyer shares currently down 11.9%, rish. >> from german inflation to u.s. gdp, we'll get a head start to the week ahead. "trending business" returns in a couple minutes. ♪

>> the stories making headlines around the world. greece says it wants more talks

on debt repayments but insists it won't renege on what it owes to the imf. it faces $1.7 billion of payment this month. last week, athens won a four month extension to its loan agreement and pledged a series of budget reforms which must be finalized by april. greece won't be given anymore money until those reforms are accepted by its creditors. >> the imf payments, of course, we're going to prioritize. we're not going to be the first country not to meet our obligations to the imf. we shall squeeze blood out of the stone if we need to do this on our own. the other payments are in a different league and we shall have to determine this in association with our partners. >> the israeli prime minister benjamin netanyahu has arrived in washington for a speech to congress that president obama doesn't want him to give. netanyahu is expected to concentrate on the dangers of

iran's nuclear program. his speech has strained relat n relations with the u.s. he was invited by republican leaders who didn't tell obama in advance. he won't meet with president obama. >> at the international space station, new docking ports that will support the next generation of shuttles. developed by boeing and space x, expected to enter service in 2017. back inside the iss, an astronaut reported a water leak in his helmet for the second time in as many space walks. >> yuan fell to two-year low after china's central bank cut rates over the weekend. other key events we're watching this week. we're looking ahead, but we look back and have a look at this pmi data we had today and then the surprise interest rate cut.

now, looking ahead, do they cut again? i mean, it's the second one in three months, isn't it?. >> simple answer, yes, they will. simple as that. china's problems are not really cyclical. this isn't a response to the cyclical downturn in the data. in fact, if anything, the recent numbers, the pmi we saw this morning and the trade surplus the other day, were much better than expected. so it's not a cyclical issue, it's a structural issue, and that's going to maintain downward pressure. >> you have to explain what that is, then. >> china has too much debt. it's as simple as that. far too much debt. the debt has been led to sectors that are not particularly productive. and until they introduce really major structural reforms to deal with those issues, growth is going to continue to grind lower and lower, because you're basically throwing good money off the bad lending to firms with low or very negative profitability. >> a lot of people talking about the soe, state owned enterprises

and other structural changes that need to be instituted to get over this problem. cnbc this week, what do we get? >> i would imagine a lot of talk and not a lot of action. i would imagine the interest rate is trying to do the heavy lifting for them. besides the reform you're talking about, one other thing that needs to happen is interest rate reform. make china a true market economy in terms of the cost of capital. if we do that, a lot of these firms that have borrowed heavily are going to go to the wall. i don't think china has accepted that yet. the easier thing to do is cut rates, extend and pretend. >> michael, a growth target, we're going to get this as well. 7% the kind of figure people are looking at here as well. >> i think we'll probably see an official target of 7%. a step down from 7.5, obviously. they'll probably meet that. maybe undershoot slightly by a tick or two this year. next year, i think we'll be at

6.5, and the next year at six. i think this is a continuous process of growth grinding and lower and lower. >> and it hurts other people, and particularly australia. australian growth has been falling, australian unemployment has been going up and a reserve bank of australia cutting rates. one of the reasons they did that was the weaken the aussie dollar. we've kind of hit a wall there. do they cut again this week? >> i think they will. even if they don't, i think the rhetoric will be clear we can expect one next month. effectively the timing is the issue. the actual question mark of will they or won't they at all is pretty much settled. until we see a much better aussie dollar, they have to keep cutting. as you said, the chinese currency is weaker now and we're in a global currency war and australia has finally woke up to that fact and has a lot of catching up to do. >> how low should the aussie be? where it is at the moment, it's hit this wall. >> there are many different ways you can look at it. >> you ask this question of people, what is fair value for

such and such of thing. it's how long is a piece of string. >> personally i think a figure around $0.70 would be a good starting point. if we overshot that, i would be a lot more comfortable with that kind of figure. >> let's look at the biggie, big data point in the states, nfp. >> it's always a bit of a wildcard. obviously the recent revisions we've seen were upwards and the momentum there seems to be very strong. >> whereas growth has been falling. >> it has. >> revision on friday, yeah? >> revised down again. what i find interesting is if you look at the disconnect between what you would call a u.s. macro surprise index, where data come out relative to what the market things, pretty much been on the downside. chicago pmi, friday, far, far weaker than the market was expecting. well below 50. two different messages, which one is right? if you ask me which one is more

likely to be right among the balance of the data points -- >> in the last three months or something? >> a very strong trend we're seeing according to this report. they don't survey every business in the u.s. they take a small sampling and multiply up from there. if you have to balance between all the data and one series and they're diverging which one do you trust? >> mr. greenspan, as you were mentioning in your research, saying demand is at the low levels we saw at the end of the great depression. >> i'm not quite sure if he's actually making a personal reference there. he's made that point recently and i've tried to reiterate that point too. the u.s. is not as strong across the board as people think it is. retail sales are doing reasonably well but benchmark companies are saying they're suffering.

>> thank you so much for coming in. >> we'll take a break. up next, india targets infrastructure spending and tax evaders but some are saying nurenda modi and -- narendra modi and his financial minister --

>> back with "trending business." here's a reminder of what is indeed trending today. >> let's start with the rate cut in china. the pboc, of course, cutting rates by a fair bit. in fact, one year loan rate is now 5.35%, and deposit rate down by 2.5%. investors looking for some signs of easing from the chinese government for a while. china is, in fact, joining a global round of easing going on in the last few months. if the economic situation is so good, why are so many countries cutting interest rates? today, pboc, .25%.

also looking at the mobile world congress in barcelona. several tech innovations being unveiled there this week. one of them is samsung. samsung unveiled two phones, the s6 and s6 edge. the edge is, of course, a phone with three edges which you can actually use. one user says the mobile world congress, virtual reality and three sided phones. another user says the galaxy s6 has no expandible memory, no removable battery, no water resistance or proofing. more like the iphone than ever. not sure if that's a good thing or bad thing. finally we're looking at a video posted online by a lady who is a former cctv presenter. and this is her personal story about the bad air in china, the air pollution, and also her personal quest to find out the source of the pollution and why nothing has been achieved in trying to fix that pollution problem. and also a personal story about her daughter which was born with

a benign tumor. she's had a lot of kudos online for this. one user saying it's shocking and sad, such a great investigation really appreciated, it's so touching and deserved admiration. what's interesting about this video, so far it's had more than 29 million views on yoku alone, that doesn't even count other platforms on which it's being viewed. authorities don't seem yet to have censored it or taken it down. in fact the new environment minister in china appears to have texted her or sent her a message and congratulated her on focusing attention on environmental issues in china. back to you, rish. >> okay. we're going to have a look at more on what's going on as far as the markets go. we're having a look at narendra modi. we have prime minister narendra modi, his budget is being seen by some as a missed opportunity. a strong election mandate, it was his chance to bring india's

finances under control but critics say he ducked the challenge. let's get to mumbai. very good morning to you. >> morning, rish. let me start with the good news, as far as foreign investors go. the finance minister has forced implementation -- two years. it will provide a lot of respite as far as foreign investors go. second investment funds or alternative investment funds, there has been clarity as far as investment in those goes. also there are two separate caps, portfolio investments as well as foreign direct investments. the government now has clarified that, brought them under a composite cap. investors are watching for any kind of clarity as far as real estate investment trusts go, or

reits. that has been clarified. all of this definitely being seen as a move to try and open up the space as far as foreign investments go. now, what about the domestic industry? all eyes were, of course, on any announcements as far as boosting manufacturing in india, that has been a key theme as far as the narendra modi government goes. the government has clarified as far as tax and expenditure reforms that will be pursued by this government, it has laid a roadmap. but overall, most people are watching for a big bang announcement from the government were left disappointed. not too many details coming out. more a roadmap being laid out by narendra modi. >> thank you in mumbai. later on we'll be discussing the budget in detail over an hour from now. join bloomberg india anchor for

a special half-hour show, half past nine in mumbai. that's it for this edition of "trending business." stay tuned for "asia edge.". we'll be recapping the big stories of the day so far.+++

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is the sydneyects this opera house. this is "asia edge." >> action and reaction, china's second rate cut in three months. indian budget, but critics say it is a missed opportunity. greece will pay its bills, but

wants new talks with creditors. russia,pposition in tens of thousands march through moscow in memory of a slain vladimir putin critic. samsung tries to get back at apple in the global fight for smartphone dominance. i am watching the markets this monday. trade not exactly living up to expectations. we'll be watching india when things open up their later on. on.pen up there later a little bit higher, down to some