quote, obnoxious. follow me on twitter. action, ahe market more considered reaction to those numbers coming up in china. >> we have the official numbers we just talked about a few minutes ago. survey sponsored by thai shin. i think the markets actually moved up a little bit here. i think you are looking at to sing for kids in the market. the strengthening of the japanese yen. that is leading to risk aversion. that is really tapping these overall gains. you also have economist saying one thing and traders doing another, driving down 10 year.

it is extremely mixed in the markets right now. think together for you. about a fifth up of 1%. irving else is on the way up. want to -- everything else is on the way up. i will get you gold prices in just a moment. seven out of the eight biggest in asia, i won't go through each one. as you can expect a big gold-mining. now closer to 12, in fact let me get you that update. 12.46. hit two or three weeks ago. that is the high so far for gold.

i won't say there is a lot of fear in the markets right now but there is still money flowing into gold and etf. lots of bits and pieces today. we heard from china, of course. a lot moving parts of the moment. china's manufacturing coming under increasing pressure. >> none of it was particularly good, and there were some analysts who were fairly optimistic, expecting upside risk even we saw that huge wrap up. we did expect to see a little bit of that trickling through in terms of new credit being extended. was 49 did in fact get for that manufacturing.

that was also the print for january. february was the seventh straight month we saw that fell into contractually territory. the government says they are keeping more of the state owned companies. companies that are struggling with overcapacity. the government has been trying to cut down on overcapacity and industrial sectors without trying to the rail growth. we are seeing the struggle play out there. keep in mindto these distortions that come through this time of year. it happens every year. it is very hard. every year to get a proper read on what china is doing or how the economic picture is doing. january, february, the data seems to be distorted by chinese new year. sometimes you get factories

scaling back or closing ahead of the chinese new year. so, it is very difficult to get an accurate read. certainly, at the start of any year there is a of guessing and looking at the trend over the past couple of years. we had that massive injection of new credit in january. obviously, some of these other forms. we have five cuts including one that took place today. made its wayreally through to supporting the manufacturing sector because it is a demanded story. on the other side of the spectrum, services, this is the great hope. it is making up a bigger component of economic growth and this is a new economy. that also slowed for the month, coming in at 52.7.

finally, they really struggle to get new credit. that came up at 48, missed expectations. we will have a more detailed look at that coming up later in the show. ok, well let's find out a little bit more on china's pledges to restore confidence and stability to its markets. suggesting a super regulator is necessary. thisan soon could we see -- how soon could we see this? >> as early as this year. see -- b pboc would have more power over the economy. another option would combine the three commissions with the pboc.

but sources are telling us that the state council will oversee the creation of this new regulatory body. put forwardcould be when the national people's congress begins its annual session this saturday. it is not surprising that we are seeing such moves by people in china after such setbacks as last summer's $53 stock set off. trillion sell-off. after premier league recently faulted them, these changes, some say, were long coming. this regulatory overhaul should have been carried out a long time ago. toing to fracture has led different businesses led by different institutions. then each regulator is going its way and there is a lack of

coordination and sharing of data, and a lot of overlap. the hope is a super regulator would be able to fix all that. but of course this is not boding well with the regulators itself. there are against each other, to stayh lobbying relevant after the changes. rishaad: let's have a look at some of the other stories we are following out there. rba, are talking about the they will make their next decision within the next hour or so. likely to make the policy rate unchanged at a record low of 2%. say that is not going to last long. betting that governor glenn stevens will have to relent soon. economists are expecting one reduction by august and a better than even chance the cash rate will be 15% in a years time.

in a years time. it the -- the pressure is building for a cut. the country's ending a 15 year spat with creditors. holdouts led by billionaire singer have assigned what they call an agreement in principle that would have argentina they four $6 billion. in 2001 to carry out the biggest sovereign default ever. anders group went to court one. -- won. frieze of the chance of tapping

the international credit market for much-needed financing. look.y we are taking a it plunged 18% in new york. the troubled company reported it is under report. investigatedbeen in a separate probe. the stock was already down 10% after it with jury from financial forecasts -- with drew from financial forecasts. wasmichael pearson returning after a two-month medical leave. threeock has lost nearly quarters of its value. story -- those are stories we are watching today. all the news and views at bloomberg.com.

what do we got on the way? it is the blame game. google admits its software has -- needs some work. next, reviewing the indian budget. back in a couple of minutes. ♪

rishaad: we are back now. our next guest is betting that the budget will easy further. i'm going to say, packing all this up is an oil price which is now down to $33 a barrel.

roomhas freed up a lot of and also, as you are suggesting, for central bank governor. that this to be clear is a difficult balancing act for the finance minute -- finance minister to pull off. the definitely increases finance ministers wiggle room to stay on the fiscal roadmap that has been set out -- up. increases will increase spending in the financial year. stick to the target, and given that, i think showed a lot of prudence and resolve. one of the ways the old prices helped is there's been significantly less --

able to maintain pump prices even if whole soul -- wholesale prices went down. rishaad: so the problem is if the oil price goes down you find yourself with a hole in your pocket. an uncertaintyll of what we are going to see the introduction of the goods and services tax. for ats been around least eight years. so we know there is political blockage with the house, getting of legislation through this very difficult. i think until we get the tax past, it will remain vulnerable to an -- a run-up in oil prices. budget forry much a

the agricultural side of the economy. whichn't have an economy is held hostage by poor weather in the summer. >> that's right, and i think in many ways the budget wants to focus on the rule economy. , the back-to-back monsoons latest status shows agricultural output sliding, so that clearly was a priority area for the finance minister. he was able to give a bit of help their, that was definitely -- there, that was definitely a focus. there is definitely a plan squeeze on capital spending and other areas. you take out the boosts for rail and road. and defense, the rest of the budget will be squeezed quite tightly. that is not optimal.

but it is better than no fiscal consolidation for india. rishaad: the private sector has to get more involved, they have to be more incentivized to be involved. responsibility falls to the central bank governor, does it not? this is the i think other critical dimension of yesterday's budget. the reason why the finance minister stuck to prudence, 3.5%k to that 35% -- target. the governor has been very clear that sticking to the roadmap, particularly with some of the states increasing, is critical force -- critical for spending the rate cutting cycle.

could become quite quickly, could come this week. a big 50 basis rate cut, which i think would make a real impact on confidence, would have a real effect on the private sector. past,d: given that in the he has encroached on the sovereignty of the central bank. he may want to wait a little bit before.net. doing that.fore >> yes. i doubt the governor will wait that long for getting some kind of reward for fiscal prudence. i think the inflation outlook -- outlook does look relatively benign. the good look to me is that the food shock from this year's monsoon does appear to be flattening out.

prices have absolutely soared, up 45 percent to 50%. but, there is one aspect to it all which is -- india is an economy which is largely domestically driven. it is not that much, how can i say, at the mercy of what happened globally speaking. but they need to export and that is not happening. you have to make an india campaign. >> i don't think there is much in the budget to help that. you look at the indian economy. it has fallen down in a couple of key areas. corporate india remains reluctant to spend, it continues to hunker down. it is still pessimistic about the future. in the short-term you have also got that rural agricultural

-- ision which has really really the result of a poor monsoon. there is nothing in this budget that directly addresses those. by come back to that key issue of the interplay of monetary policy. i think key to getting much better growth outcomes is a better policy mix. india needs tighter fiscal policy and looser monetary policy. that will be a critical part of the formula to really getting india up to those 9% growth rates which really should be possible, given for india's level of development and positive demographics. rishaad: thanks so much. on -- in0:19 and talk hong kong. dear headlines from around the world.

-- here are headlines from around the world. the incident comes a day after the killing of an ohio pastor in his church. he was a shot after the sunday service. his brother has been arrested and what his brother says is a feud over inheritance. japan has finalized a deal to supply defense equipment. agreement follows a similar deals with the u.s., the u.k., australia and france. it comes as tensions rise. itsa has underlined progress in space and it plans to launch a second lap later this year. the module will lift off around june and will be followed after

by two astronauts. beijing is planning as many as 20 missions. they launched their first space station in 2011 and aiming to have a permanently manned order by 2022. this is bloomberg news. up, apple'sing privacy campaign winning the backing of a new york judge. director tells us how the two sides can reach a cap remise. -- compromise. ♪

rishaad: apple has won a crucial victory in its battle with the u.s. government. a judge has said it does not have to unlock a drug dealer's

phone. keith alexander told us the two sides need to reach a compromise. >> i'm having difficulty making that jump from code, because that is interesting you make that leap and is a code is free speech. >> you have to write it, you actually have to write it. think, turn the issue around, do you create encryption that terrorists can use to conduct attacks? was your answer to that? >> of course not. dilemmaou are into that and as the doma that has to be solved. here's ryan, personally. -- here is where i am, personally. how do we do both?

you could come up with a process that could work for everybody. go all the way up to the supreme court in who wins? >> it will be interesting. i do not know where this will go. on, iile that is going think we should be searching for a better solution. >> as we discussed, google, facebook, tech companies have sided with apple and this has created a divide. techustainable is it for companies to be at odds with the government? >> everybody has a right to their opinion. what we have to do is we have to learn how to get our country back together. best of what we can represent and put that on the table. when i look at the great

capabilities that are coming out of the tech community, these are phenomenal. tremendous opportunities. , and theour kids opportunities you have for education, opportunities for medicine, communication and all those things. it is extraordinary. but there are tremendous vulnerabilities with it. we are outpacing the ability for the policy committee to keep up. iwould not say slowdown, but would say because we have gone so far so fast, how do we help the policy committee catch up, and this encryption issue is just such a problem. >> everyone is saying they should work together. give me some specifics, how can the government and silicon valley work together for the better? put together

something that addresses that encryption is you and comes up with a middle ground solution. andanies, the government, the american people could live with. have an we will exclusive interview at 5:00 a.m.

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regulators merged while the pboc would get more power over the economy. apple has won a courtroom victory after a judge ruled they do not have to unlock a drug dealer's phone. -- rger battle with the fbi tim cook has described the fbi's request is a chilling assault on liberties. david.et it over to obviously we had a raft of data, not only from china, i will get you some of the bits and pieces we got out of japan. thing that youe may not have noticed was the part and services. expansion, but we are

starting to see declines. from december to january to february. that is how asia-pacific looks at the moment. mostly higher although the benchmark is getting tapped by japan. the story there is the japanese yen. 1 are now moving back towards .12. that is obviously kind of a problem. that is how it looks. they drop yesterday in dollar yen. moment, 112.33. overall household spending. a love that is also down to cheaper oil prices. if you dig for the data it is actually utilities and household spending that is really leading

to this decline in household spending over in japan. 112.33 on dollar yen. the cash market is closed. he will still get a cloak -- a quote here when it comes to equities. another decline, it wasn't as bad as expected you put together the stretch of declines and you do get a sense that the problems are persistent. or it was just a high base the year before. quickly, before i go. yields are on the way down. the cash target at this flow. fairly low at about 2%. here is china economy

editor malcom scott. it was the unofficial reading, too. as well,es mission let's not forget that. but ittill about 50 weakened to its lowest level since 2009, not a good sign. fading, so this slowdown is a spreading and that maybe the worrying sign. rishaad: we had the g-20 manning and they said there were limits. $105 billion of their liquidity. is that enough? >> it is a return to some of the more orthodox tools as they are redoing how they do it in china.

steering money market rates lower. adding liquidity in targeted moves rather than blunt things. yesterday we saw the pboc say let's go back to orthodox. whether it will be enough to boost private enterprise, that is another question. said, that they lending spot, why would that show up in the pmi in february? maybe because a lot picked up in the state sector. the private sector is still struggling. rishaad: all of this is food for thought. suggestmove this week maybe there is this renewed prioritization of growth rather than structural reform. have flagged fiscal wages

on the way. onwe come into this meeting saturday, plenty of structure reforms are expected, also maybe to market might find places give a boost as well. rishaad: thank you. the latest data showing no signs of this slowdown abating. former fed chairman out greenspan said the country's economic outlook will only worsen as the productivity gains diminish. ini do think this 7% growth unachievable. i think what is happening is as china's productivity edges states, thee united

gap closes and the ability to close the gap is more and more difficult. which means you're going to get a convergence between productivity much more closely. that means there is going to be a big slowdown in china. rishaad: you can see more of that interview in full later today. coming up at 9:00 p.m. in sydney. near $3 billion order from china. a celebration for facility.breaking the rapid growth of air travel in asia boosting airbus with expected to surpass the

united states of the world's biggest aviation market in the next two decades. competition within the city is a slowdowng despite in the final arts market. he declined to say whether other offices would see playoffs. let's talk about the hong kong exchange. options traders haven't been as bearish. news --g why they becoming more bearish? >> turnover has been as a strong this year. it is about half of what is was less year. question whether that will be sustainable. valuation of the stock

is relatively high. also a lot higher than its peers. so investors and shareholders might be buying to protect themselves for the downside. rishaad: was the analyst take on this? is suggestensus about 12% gain. by, use it they say should just sit -- buy recommendations this year have been falling to less than half. some people see a strong pipeline but the timing depends on the market. rishaad: what tribute -- what should we be watching up? speculationa lot of that may be delayed because

control theto capital outflow. if that happens it is not good news because a lot of people have been waiting. much.d: thank you very we are going to stay with the exchanges. the london stock exchange plans multibillion-dollar merger may not go as smoothly as they expected. may bet one new player interested. here?o we actually know there may best, too interested -- two interested. to primaryt access markets in england. why suddenly the

interest and consolidation? >> it happens sometimes. rishaad: oh, why didn't we do this? yes. if they buy it will be about $30 billion. there was a position from shareholders. rishaad: what about the hong kong exchange? how is it likely they may get involved in all of this? >> they just published their three-year strategy plan. again, never say never. they do have the london metal exchange. they could be looking at what is going on with the singapore exchange who are eyeing the baltic exchange. >> it seems like a wave.

brazil, the brazilian exchange from its rival. it seems it is exhilarating. when they report their earnings tomorrow. rishaad: keeping you very busy. up, the political fight in malaysia might be getting worse. ♪

>> welcome back. these are the stories making headlines around the world. the united nations says there is no indication that north korea has any intention of giving up

its nuclear weapons plans. persuade kimled to jong-un to abandon his program. has successfully evaded sanctions for at least a year and continues to get banned materials from abroad. thousands of migrants try to cross from greece. says they chancellor need to help. itsoscars telecast drew lowest viewing numbers since 2008. it was down 4 million from the previous year. the ceremony hosted by chris rock was boycotted by some black stars after white actors got all

20 nominations. "spotlight" won best picture. this is bloomberg news. rishaad: we turn our attention to malaysia's former premier. stakes in histhe campaign over his disputes over political scandals. what does it all mean? >> yet another sign of escalating tension in malaysian politics. he's reporting just hours before he was meant to leave for saudi arabia. he says it is no longer the party he knows and the party he

led for more than 20 years. it has been hijacked. it is no longer his party and he doesn't want to be associated with a leader who is been tarnished with political scandals. some say there is another way of looking at it. shows he is been forced out. he says he wasn't leaving the party but that changed yesterday. he has left the party twice in 10 years to protest. he left to protest the then premier. both successors were picked. rishaad: what's he going to do next? what's the plan? for him toe no plans form or join another party. but he will take the battle outside.

last week he called on malaysians to rise up no matter their party affiliations. this is the first time he has suggested such a move and it could see him being slapped with a law. investigatedy been by police twice. hasauthority and influence waned since stepping down from office in 2003, but he is still sick -- still considered a significant figure in malaysian politics. heis still to be seen what really means by rising up. bit --: tell me a little there is an investigation going on to that. was the latest? what do you know? >> little eagle materials. cases.gations into two

both were halted by the attorney general last month. he said they were pretty much a donation so no crime was committed. but a special and a reviewing the operation warned -- wants the investigation to continue. otherthere are investigations overlapping overseas. that about $4 billion may have been misappropriated. that is where investigations are right now. pretty unclear. rishaad: thank you very that, indeed. is looking at what is going on there in malaysia. now to the u.s.. runners are gearing up for a big 12 statesper tuesday,

up for grabs. look at what we can expect. tuesday, look we expect -- if hillary clinton has a huge may seem liket bernie sanders will have to get out or stop campaigning. some ways the future of the republican party is at stake if donald trump goes on and has a gargantuan day. best case forn bernie sanders is he will have a hard time getting enough delegates. enoughntons have put in effort. on the republican side, i think the second placed finisher has a lot of say. delegates,has enough

i think somebody could come out of super tuesday arguing i am the trump alternative in a way no one has been able to do so far. >> i know enough about bernie sanders that if he wins the races he says he wants to win, oklahoma, minnesota, colorado, vermont in massachusetts, he will go on and fight. if he loses one of them, it will be different. >> lots more coverage of super tuesday all day long. special atk for a 5:00 eastern time. back to you. rishaad: coverage of super tuesday kicks off 5:00 eastern time. coming up, googles driverless cars got into an accident. ♪

♪ we're back. talks --e an in volkswagen in talks. they may have to buy back some of the cars with rigged engines

that are back -- still on american roads. some progress has indeed been made. >> discussions have been going perceptive to making progress. we'll see what happens. saying ituxury rival is still seeing growth in china. the chief executive said the year has begun strongly. >> this year we started with 50% growth. this to standct at the end of the year. do not take this as pessimism. 33%?ll it be as good as >> we see a lot of momentum in

china. driverlessogle's cars took on a bus in silicon valley. it is the first time they had admitted, we got it wrong this time. partly to blame, they say. going on a test run in mountain view. 2 miles per hour. they were trying to merge into another lane. they expected the bus was want to move but it didn't. it led to a collision. test driver inside the expected the car would go back into its own mind but it ended up not doing so. so a little bit of confusion there between humans and robots. but they said this is a classic

example of negotiation, a normal part of driving. we are all trying to predict each other's movements and in this case we clearly bear some responsibility. no injuries. people on twitter are having a lot of fun with this, saying, this was bound to happen. just wait for them to announce to update. some people are saying we have to keep the robots to fear bus drivers. this is the first time we have seen google admit they were wrong. there were 17 other accidents involving these cars with apple. most of those were caused by human drivers. rishaad: of course, they would be, when they? -- wouldn't they?

before we go let's take a look at what promises to be the fastest car in the world. let's take a look at it. it is a bugatti. they look a little similar but it is faster and more beautiful, you could argue, and certainly more expensive than its sibling. let's have a look at it. 1500 horsepower. 100 kilometers per hour in less than 2.5 seconds. top speed of at least 500 kilometers. they could attack the world land speed record. that is at -- it for us.

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♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin with our continuing coverage of the encryption debate. on thursday, apple hit back at the fbi. microsoft, google, twitter, and yahoo! moved to throw their support behind apple. the fbi director james comey testify before congress, calling encryption the hardest problem i have seen in government. joining me now is max levchin. he is currently the cofounder and ceo of a firm at a financial and technology company. he is on the board of directors at yahoo!.