it will have to "rock of the doors and impose capital controls." state media saying a ballistic missile is a true deterrent to war now. twitter. on don't forget to use that hashtag. trading.a today, no sherry is having a look at what .lse is out there looking at the global economy and the glass being half empty. >> it looks like it. we are seeing a bit of a mixed pick sure. picture. major markets falling right now. we are talking about china. we are talking about japan. there is also the sentiment because of retreating oil. overnight, the s&p 500 fell the

most in six weeks. investors don't have much to be optimistic about. the fall has halted the longest winning streak in eight months. the hang seng index also down. 1.3n continues down percent. we are seeing a stronger yen hitting exporters. new zealand gaining .1% ahead of a decision tomorrow on the benchmark interest rate. they are expected to hold steady at two point 5%. the asx 200 gaining .3%. asian stocks are mostly rich led by -- mostly retreating, led by mining stocks. mining stocks in asia falling across the board after chinese

exports fell the most since 2009. and of course, energy producers are also feeling the squeeze today as oil retreats for the second consecutive day. crude now at $36 a barrel. -- , rishaad: breaking news. donald trump has won the michigan primary, earning 40 delegates there. 50% of votes have been cast. with ted cruzins second. marco rubio follows on from that. ine bad news for marco rubio his challenge to becoming the forblican nominee

president. earlier on we heard that hillary clinton had won the mississippi democratic primary. let's tell you about blackrock and its chief investment officer. he is saying that for china to spur growth it will have to lock the doors and impose capital controls. what else did rick say? china let the currency significantly devalue. in the last hour or so, we saw another story, one of the world's largest private equity firms saying china has weaken japan-like face a slump. there is a diversity of views abroad and at home on the yuan. what we have seen after the june stock market meltdown is you on depreciation and

subsequent interventions from authorities. toital flowed out of china an estimated tune of $1 trillion last year. confidence in china's ability to manage the slowdown is definitely weighing. they still have 3.2 trillion dollars of reserves and to the burn rate has slowed this year, but that is still quite a hit. a stronger dollar combined with interest-rate cuts at home further lowered confidence. the currency weakened against the dollar through the end of last year, but since the beginning of this year, the run -- yuan has stabilized. basically unchanged since january 1 at 6.5 to the u.s. dollar. the concept of the chinese devaluing by 30% is not happening according to one person.

they are going to try to transition the economy, lock the doors and do capital control. again, the counterpoint, henry mcveigh of kkr says china cannot 1-2 punch of deflation and capital outflows without having to ultimately realign its currency strategy. he says fair value of the yuan is about seven to the dollar, which means it would need another 7% or thereabouts depreciation. interestingly, after the yuan was included in the imf basket late last year, it looked like just looks like authorities or possibly pulling back from their internationalization -- it looks like authorities are possibly pulling back from their

internationalization push on the currency. we have a number of economists commenting on that. one says this suggests china is uan stability as its top priority. another says china moved too fast on its capital account opening. we want your opinion. tweet us your thoughts. there is my handle. the #trendingbusiness. rio tinto had a heavy selloff earlier in london. in sydney, we are having a look at whether reality is setting in again for commodities stocks. it appears so. rio tinto and bhp both up about 3%, as is for to skew -- four to iron nor is weirdly

stable overnight. every other commodity took -- weirdly is stable overnight. every other commodity took a hit. these are commodity lows we have not seen since november. it had an impact on bhp in london, off 8.5 percent. rio off 9.5 percent. look at green core, up 18.2 percent. anglo mining down 15 point 5%. makes what's going on here in australia look pretty tame by but it also raises questions about what we saw coming out of the chinese national people's congress over the weekend. trade figures were pretty wonderful. that seems to be underpinning much of what is going on in the commodities race today. rishaad: thanks. sydney.en in let's have a look at what we are watching.

theambition to become world's biggest cinema chain. getting a bit of pushback. we have that story and some of the others we are following. >> a bit of a stunner in the works. china has a richest man's plan .or cinematic dominance shareholders have put their foot down on the sale. amc entertainment has a $1.1 billion offer. the company says it intends to vote against the merger because the share price of $30 is too low. it's also planning to encourage other shareholders to do the same. all of this could potentially thwart amc's plans to become the world's biggest cinema chain. amc is owned by china's richest man. by the close, amc falling 1% in session.

giant says it is conducting a thorough assessment of the latest u.s. restrictions on business operations. they will continue with the u.s. investigation, to cooperate with them, rather. they face being shut out by u.s. tech suppliers after the department of commerce found the company had sold u.s. tech to using shell companies among other structures and thereby running afoul of u.s. restrictions. any u.s. company that wants to sell components to the ge now needs to get a license from the zte now needs to to get a license from the department of commerce. the impact could be fairly significant.

a watchdog may soon be able to identify investors behind the trades they are making and be able to do it in real-time. the securities exchange commission can currently only monitor live trading at a broker level, but it is developing a news see-through system. each investor is assigned an identity record. improving market surveillance has been a priority for regulators for a while. the proposal has already attracted criticism and dubiousness from market percent participants. they say the sec already knows too much about what they are doing in the market. they wonder if it will be an invasion of privacy. we have not had details on the timing of this new system, but a lot of market participants expect consultations could begin as soon as april. north korea is stepping

up surveillance on its own citizens. coming up, north korea stepping up the bluster on its nuclear capabilities. details.ave the a former energy adviser to iran's prime minister will discuss -- will join us to discuss oil and where we go next. this is "trending business." ♪

look at we are having a oil because the rally we saw in the last couple of days has come to a bit of an abrupt end. had reached its highest level in two months. what happened this time? thing thatlly, one hasn't changed throughout this whole time is the stock market situation. the fundamentals have ultimately remained the same, and we are

stuck in a glut. forecast is for a further gain. opec up to 33 million barrels a day. in the u.s., production has fallen. if we see that, we might see gains resume, but essentially, it's a glut. keeping a cap on any sort of rally. what do people suggest? are we locked in a range? do prices go higher from here? what is the deal? we don't know, do we? >> if we did, we would be very rich. hope for stabilization in the market, which is a good thing. we saw with lashing -- whiplash

earlier in the year. highght creep up to the range of the 40's but not much further than that. the idea of pushing it to fit it dollars or $60 is not shared by most people. is the output by saudi arabia and other countries. the idea that there might be meetings at the end of the month in russia. the ministers there said they hope that meeting takes place. much.d: thanks very to discuss more on oil we are going to stay with the subject and bring in a former energy adviser to the prime minister of iran who is now chairman of an energy consultancy. thank you for joining us this morning. you are saying the world needs a price floor and an

excepted bowl feeling. what are all of those things? -- acceptable ceiling. what are all of those things? >> exactly. as we go through time, to have less volatility, we need to have a price point from a market like saudi arabia. what can saudi arabia do here? aim to try to destroy the shale industry in theynited states, so cannot have a recovery because they won't rest until that is done, i assume. >> that is correct. we are looking at a minimum of day andbarrels a shale production this year.

that's the minimum, but it could be maintained. they have achieved one part of the goal. for growth demand should not be underestimated. 1.2 million barrels demand and growth this year. by the end of the year, the inventories would be 50% of what they are today, so there would be substantial improvement. as we see, of course, the level of shale being produced in the united states fall, iran is perfectly capable of making up that shortfall in doing more than that. , why aren't you confident that this glut is going to be removed? >> the numbers are simple. they will onlyd add 500,000 barrels per day and they will wait until the end of the year or maybe next year to

add the rest because they don't want to be seen to be responsible for the drop in the price of oil. if they do that, if anybody in iran does that, they will be despised by people outside and inside the country, so there is try to engage in a price war. if you have demand going up by one point 2 million barrels a day and supply going down by 700,000 or 800,000, then you have a 2 million barrels per day change. -- if the saudi's produce 500,000, the iraqis 300,000, another 200,000 in africa, then you have a million. rishaad: stay with us. we are taking a very short break. ♪

>> it's 1020 in hong kong and 120 in sydney. these are the stories making headlines around the world. five years after the earthquake and tsunami, contaminated water remains the greatest challenge in japan. awaiting official approval to create an underground ice barrier to prevent damage from seeping water. grace pope became a naturalized u.s. citizen in 2001 and a philippine citizen five years later. forhas been cleared to run election. she was abandoned as a baby and her heritage was not known.

the realities this month biggest currency gain or test ra -- real is this month's biggest currency gain or. this is bloomberg news. rishaad: let's get back to our conversation with the founder of fge. thanks for sticking with us. let's look at what going on. we have this oil price going to sub $30 per barrel. have you ever known conditions like this as long as we have been in the industry? i haven't. this is the worst condition i have seen for oil producers, especially private producers around the world. oil is belowe of $40, its blood and guts everywhere.

it's not something we can sustain for more than several months because production will fall, urine teed. is opec, is saudi arabia really to blame for all of this? have they painted themselves into a corner? >> the saudi's are not to blame for this. we had a shale revolution. we had 5 million barrels of new supplies coming in from shale. we also have supplies coming in for mother areas. so, $7 million -- barrels a day -- 7 million barrels a day of new supply coming in. they did the only thing they could do. they had no other choice but doing what they did. rishaad: would a freeze, which is being touted at the moment, a freeze and output at january levels, an agreement with russia

on the table possibly, would that make any difference whatsoever? we would still have a output at these levels. surely it would still incentivize people to cheat? absolutely. this frees is nonsense, a joke. i don't understand why people get so excited about this. if you are bankrupt -- venezuela, bankrupt at $100 a barrel oil is of course super bankrupt at $35 a barrel oil. , it means for russia nothing. rishaad: we have even more production coming possibly. we were talking about iran producing have a million barrels a day. maybe even if the politics get sorted out, which is looking very difficult right now in libya, we could see more production from there.

his audience of that being priced in? -- is any of that being priced in? >> libya is not being priced in. iran is not being priced in. libya's oil selection, there's nothing wrong with it. they could produce 1.2 million barrels a day which could either take the price down to $30 or opec members would have to cut back production. happen,elieves it could but it's a scenario we cannot ignore. it could happen. the last three weeks, oil producers have been talking about how to divide the money. will overcome internal disagreements and it will be all about the money. are saying what you is without the saudi's coming in and balancing the market there is no real hope of getting the range that you were suggesting,

.50-$70 a barrel >> i think if we don't have the thei's coming in, by 2018, price will go to $90, maybe more, and then crash back to $50. but we need to have a policeman .ome in and direct traffic everybody needs a policeman to come in and put some organization. volatilemarket is very . i $70, $80, $90, but we cannot sustain the market without the saudi's very strong hand and doing what they did in 2010 and 2014. rishaad: always a pleasure talking to you. the prospects for oil, saying it's the worst conditions he's seen in the oil

market since he's been in the industry, which is a long, long time. up next, we are having a look at the market for startups is being put to use.

rishaad: chinese stocks falling for the first time in seven days with commodities leading the losses. the shanghai composite capping its longest winning streak since july. meanwhile, regional banks seeing their biggest losses in two weeks. oil falling in london and new york. slumping intinto sydney. both saw a heavy selloff earlier slumping and rio tinto in sydney. both saw a heavy selloff earlier

in london. the most since november. north korea has managed to build nuclear warheads small enough to fit on a missile. ishington believes pyongyang decades away from achieving such a breakthrough. new sanctions were supported by china. let's get into the market action. tokyo down by 1.5% as it went to break. what's going on? >> markets across asia looking mixed. china is down for the first time in seven days. the hang seng index is losing ground. let's take a look at what it's moving the markets. taking a look at fitbit. it's plunging more than 5.5% after the company announced they may have to pay up to $1.7

billion in impairment charges -- citic may have to pay up to $1.7 billion in impairment charges related to a company in australia. japan going to its lunch break now, but in the morning session, they fell 5.8%. the chemical and building maker announced that home orders for february had declined 11% from a year earlier. holdings downgraded to underweight, now falling 5.9 percent. mitsubishi estate's falling 3% after it was cut to underperform by credit squeeze. -- credit suisse.

, -- across asia, the benchmarks are headed to the biggest drops in months. bhp and other mineral companies in australia are headed toward their biggest losses in days. dismal trade, with exports falling the most since 2009 in china bringing down sentiment. government-backed funds raised more than 230 billion tons last year. what is the objective of all of this money? newously, they want to have technology out there. >> this is modeled roughly on government backed funds in the u.s. and israel. how much was spent last

year in the united states compared to this some of money? >> globally, venture capital year.ed $136 billion last it was a record high. the government guidance fund has raised a total of three and 38 billion.338 it's a pool of capital all three times bigger than the entire amount of venture capital deployed last year. it's huge. you have to think about how vc works. nine out of 10 will fail. rishaad: that's optimistic. >> it's probably even worse. for every apple, there are dozens and hundreds of pets.com. venture capital is a deal flow. they have to go. pitches ande 100 make one investment. the government has set itself

and an enormous task just to play this capital. the goal is interesting. it's a mass movement of entrepreneurs. they literally call it mass entrepreneur, mass a innovation. rishaad: but you cannot sibley by innovation -- simply by innovation out of thin air. >> well, the chinese will try. they think this money can go to risk, more cutting-edge be aology, or it could disaster. the question is, you also have managers whoienced can assess the validity of stuff. what amazing is the speed at which this is happening. these funds have existed for quite a while but at a very small scale, very easy to absorb. within one year, adding a next , $2315 trillion yuan

billion in one year, that's a lot to absorb. rishaad: it is. and so much can go wrong here. and maybe the, calculation is ok, this is why it's government funding. the government can say we can take the loss because we need to have the one out of 1000 successes. private money is in going to take that risk, so we will. u.s., we have institutions like the small business administration that are out there that are similar, but the scale of this is so vast and it brings to mind to me the boom and bust cycle we saw in solar and wind. at the end of the day, the boom and bust did do one good thing, which was to bring down the cost of alternative energy to a place where it's viable. if the government can up sword the long-term goal is -- absorb

the losses, may be the long-term goal is -- i am really interested to see how this will be deployed over the next couple of years. but literally, my jaw is on the floor. i am gob smacked. onhaad: let's quickly check some of the other stories we are following. have spent months trying tuesday out of the debate over britain's future in the european union, but now he is being dragged into it. both sides stepping up their arguments. probe rags and mps are accusing carney of political -- pro brags exit mps are accusing carney bias.itical >> that is not the totality of consideration that people will -- on which they will reflect and make their decision.

we will not be making and behing we say should interpreted as making any recommendation with respect to that decision. japan hashe bank of made no progress in raising the number of women in management despite the wishes of prime minister abbe. last year, the number was 4%, same as it was in 2014. last week, the prime minister declined, however, to give another term to the only woman on the bank of japan board. we go to our kuala lumpur bureau chief. things have really changed during her time at the wheel, haven't they?

>> in many ways, they have changed during her time at the wheel. but the fact remains that the -- she became governor of the central bank in 1990. she is leaving the central bank in a time of turmoil as well. plenty of political tensions and funding scandals. , she hasg her time strengthened regulations in the country. the banks are well capitalized. we have deeper capital markets. we also have the world's largest finance mark -- islamic finance market. rishaad: we don't know anything about who is going to replace her, who her successor is yet? thing we know is the process through which her successor will be selected, and that is by a government committee.

they make a nomination to the government. it is ultimately up to the government to decide who they are going to nominate and then the king approves the nomination. somebody at the central bank he approves of. well, i guess this is a country at the crossroads. there are many challenges facing the next governor, aren't there? >> yes. it is an older economy. it is slowing just like many commodity driven economies around the world. it is also services based, but the fact remains that the decline in oil prices is hurting government finances and slowing public spending. reserves have been near zero over the past year or so because of central bank intervention to extend the currency. so, those are among the issues the next central bank of and to

address. rishaad: thank you for that analysis. our kuala lumpur bureau chief. gold rising more than 5% in the past month. 19% so far this year. the commodity having its best when to a year since 1974 inflation was turned on its head. in times of high inflation, gold prices tend to go up. in the 1970's, gold prices rose the time when u.s. inflation rose to a peak of 15%. what is happening at the moment is that expectations for inflation are at their weakest since the global financial gold prices -- but are at their strongest. you see the relationship is actually broken and has turned to negative.

what does that suggest? well, it could imply that the u.s. economy is weak and that policymakers are running out of .raction i would like to show you another chart that shows a relationship being flipped on its head in terms of gold. this is gold's relationship with the global equity markets. normally, gold being a safe , people turn to gold. but what we are seeing of late and theboth gold prices global equity markets are going in the same direction. they are going in tandem. , this suggests that

perhaps there is not as much confidence in the global rally as we might expect. investors may think the rally may not be sustained. this could point to trends that are not going as they should. the relationship is broken and global equity markets .2 potential weaknesses in the u.s. economy and the fact that a global rally may not be sustained. rishaad: thank you. north korea making one of its most worrying nuclear claims yet . is it in any way credible? ♪

>> these are the stories making headlines around the world.

the u.s. and amnesty international have criticized a refugee plan in turkey, saying it may breach international law. from turkey would be forcibly returned while one refugee in a camp would be granted access to the eu. took the minister white house by surprise by canceling a visit later this month. said he did not want to visit during the tumultuous presidential primary season. vice president joe biden begins a trip to israel and the west bank. the weaker yen leading to a surge in tourism.

hyundai to handled 75.3 million neda handled 75.3 million passengers this year, second only to heathrow. this is bloomberg news. we are looking at north korea because it says it has developed the ability to create nuclear warheads small enough to fit on its missiles -- ballistic missiles. there is no way of knowing, i suppose, but what are people saying about the validity of this claim? , analysts in south korea and the u.s. are not giving much credibility to this report. mainly because -- first of all, they are not even sure if north korea has the capability to

develop a nuclear bomb, and the technology to miniaturize that and be able to fit a nuclear a warhead is of another gain. the pentagon and analyst are saying this is kim jong-un boasting. what about the timing of all of this? that's quite interesting, isn't it? you know, tensions here have been escalating step-by-step. mainly because they did a nuclear test, and then they couched asrocket launching a satellite, whereas it was thebelieve development of ballistic missile technology. as a result, south korea retaliated with closing down an industrial complex that was .perating in north korea

then military drills started on monday and will continue for the next month and a half. north korea views the drill as a dress rehearsal for an attack. as such, they said look, we are ready to launch a preemptive nuclear attack if there is any sign that south korea or the u.s. will be attacking north korea. has been a constant back-and-forth frederick. each time, it has gotten more and more strident. let's put this out there. if this was actually true, what would it mean for the balance of power in the region? >> well, this would change everything. if they have actually developed a nuclear warhead that could go on a ballistic missile, it's a threat that has never been there before. sanctions obviously haven't

worked. it completely changes the dynamics of how now south korea, will.s., and the world need to respond to north korea. rishaad: ok, thank you, our bureau chief in seoul. we have a look at sport. walk awaytarting to from maria sharapova after the tennis star admits to failing a drug test at the australian open. to distance themselves from the richest woman in sport. >> it's important to remember that athletes like maria make a great deal of their wealth from these endorsements. she very much dwarf what makes from prize money. it looks like the prize money she made from the australian open is something she will have to give back. continues.

one brand said she was out of contract by the end of last year. they had been in negotiations to redo the deal, but in light of these developments decided not to pursue it. she has endorsements from avon and others, and they have not ofe out with any sort statement. but the nike deal was a big one. she would have earned 12 and a half million dollars a year a -- at least. she was nike's highest-paid female athlete and the highest-paid female athlete in the world. rishaad: she has a lot of support here. -- when it comes to social media, we have had responses from people like martina navratilova and other world champions saying we hope it is an honest mistake. hold your horses and don't be too quick to judge.

on the other end of the spectrum , jen capriati, a one-time world number one, has gone on quite a twitter rant saying it isn't professional athletes because any assistance you get to prolong your career is incredibly helpful. she is saying if i was going to announce my retirement it hotel't be in a downtown with fairly ugly carpet. share published standards. that's andy murray's mother. , buts not retired yet certainly, her bank account looks to take a very big hit. rishaad: future earnings anyway. thank you very much indeed.

we have to take a break. one of india's highest profile en is making headlines again for all the wrong reasons. find out why he may lose the right to leave the country. ♪

rishaad: just getting you to the

mumbai session, it does look like we have a consortium of indian banks stepping up the fight against the liquor tycoon who is trying to get back more inn one billion dollars loans from his failed kingfisher airline. the controversies surrounding this man continues to grow. >> absolutely. remember, we were just talking about it yesterday. things have really come to a head as far as what is going on. i consortium of banks led by the state bank of india, india's largest bank, have approached the supreme court to prevent him from leaving the country. he recently said he wants to settle in london. fromhe gets a settlement the exchange, he is stepping down from the chairmanship from

bought ane company he few years ago. reports are suggesting it may be too late. he may have already moved to an undisclosed location a few days ago. the company in india was approached by the banks asking them to ban his passport to prevent just this, but there is some dealing going on that could possibly have led to his already having fled the country. what is the cracks of the matter? for viewers, he borrowed $102 in 2015.rom the banks airline went belly up. there are allegations he took loans from other group companies and took money from his other group companies and put the money illegally into his own accounts. all of this is outstanding and coming at a time when he has been pumping money into other

ventures, including buying a cricket team. he has expressed an inability to pay back these loans. we wait to hear from the supreme court on which direction this will go. rishaad: thank you for that. we are seeing declines. a 1.6% fall. another 2.4% for the shanghai composite. weakness continuing for hang seng. off the lows of the day. downward.s headed mining companies adding to it. stay with us. we will recap the big stories of the day. ♪