this is trending business. ♪ rishaad: we are watching the asian markets in the red, dragged out by disappointed out of japan. oil also retreating. land of the missing link. king wobbles justified --

in his battle with the marriott for the start of hotels. says, they are on for a bit of a wild ride. please don't forget to use that #trending business. we had to hong kong of course. first trading of the week getting underway in about 30 minutes from now. shanghai also coming on. singapore, taiwan, malaysia. just starting off their session. with have a lid of a long week malaise. a little bit of a mixed picture. the talk about the beta drop out of japan is morning, really particularly when it comes to that retail sales number. also came in worse than expected

there. we saw a bit of a dip in the yen. also the downside today. that is also an additional dragged on japanese stocks at the moment. elsewhere, we're seeing hefty losses coming out of city. -- sydney. major financials along with energy names slipping. in terms of the markets that have just opened, malaysia and little bit down. singapore, up slightly. on, with japan out of the way, china's stock was fairly disappointed yesterday. we look at the tuesday. -- ahead to tuesday. all-importantting

u.s. labor days out of the end of the week. that'll that will give an idea of when we can see the net rate -- next rate high. we re also looking ahead to china's pmi. a lot of wait-and-see sentiment. months of work on a multimillion dollar buyout could come to nothing for marriott. they have now received a higher offer. natalie latest on this increasing bidding war. >> battling it out with marriott. they have received a takeover $14 billion from that chinese insurer.

counter a second time -- maybe it has been planning this acquisition since november and observers say it will be top for marriott just to walk away from the time and energy invested so far, but they will be able -- they will need to justify bank more than they already have. marriott has reaffirmed its starwood, to buying which has brands including --raton, westin cannot and w westin, and w. they have moved aggressively overseas.

an analyst with j.p. morgan offer becomesew binding, the marriott walking away and simply collecting its $450 million breakup fee. rishaad: lat a more detailed look at that later in the show. --we will have a more detailed look at that later in the show. united states has dropped its legal case after apple after successfully hacking into the iphone of the san bernardino killer. i guess, the first question has to be, what is the significance over all of this development? place, thet government filed a status report a week before it was due. it gives the impression they were in a rush to end this case, perhaps because of all the publicity they stirred up and

they didn't get the kind of the support they would have gotten for this case. government, a month after saying only apple could help them, found a third-party who could do it for them, which may cause problems going forward when the fbi goes back to a judge saying they need a third-party cooperation to crack into a phone to access encrypted data. what we know about what was on the phone at this point? is an interesting question because so far the fbi has not said what was on the phone, what they found. it will be interesting to see in the coming weeks if they provide any information about it, because it raises the issue whether this terrorist iphone was only a pretext for the court ordero get a

to get apple to write code to crack the security system of the iphone. question weeresting have to look forward to in the coming weeks. the other question has to be, is this done now, we over this, or is this something that will come back sometime soon? likely that avery similar issue will arise in the because apple will upgrade its operating system for the iphone as soon as it knows what the weaknesses the now has been discovered and given to the fbi. whether it is going to be a few months or longer, sooner or later, the fbi is going to have an iphone they can't open with this new technology, then it will have to go back to court and see if they can get a court order, again trying to force apple or some other company to

help access the encrypted data. with the senator until there is a new long congress that will resolve this. --ward: thank you rishaad: thank you for that. of theave a look at some other stories we are watching today. looking at how one japanese companies seize more than growth when it comes to their domestic economy. define gross looking abroad. that is ntt data. is making a big push outside of japan. acquisitions will increase data to the u.s. and other overseas markets to help counter sluggish growth in japan. ofy are the consulting unit

ntt. they spent more than $634 million since 2011, mostly overseas. rise toe seen sales over four dollars billion. billion.ore than -- $4 the investment firm kkr is said to be considering a record nine billion.- $9 if they reach their target, the new poll will be 50% larger than its previous one in 2013, and that fund. anything more than 25% is

considered a top performer. last year.ll 14% it felt nearly 5%. it has been hurt by the economic slowdown and changing tumor case. consumers drinking more wine and liquor. in general, they have seen beer consumption fall me last year or two. they have struggled to raise prices and according to your monitor, it is falling behind the maker of the country's best-selling snow beer. on our website, we are looking at indians prime ,inister singh a good policy not good fortune is responsible for the country's recent growth surge.

/asuiia.at bloomberg.com expectations. next -- ♪

rishaad: a man suspected of being an integral part of a fiber-will testify in the philippines today. our southeast correspondent has, who is this man? is a gambling junket operator, the man dubbed as the

missing link. his lawyer says he will appear in a hearing today. is described as a big player in the hacking. the stolen money was channeled through a commercial bank to at least two filipino casinos with the money trail has disappeared. investigators say he withdrew more than $20 million of stolen from a bank account where he is president and general manager. he has also withdrawn from his .wn personal account he denied all allegations, and said he is simply a victim. he said he does not know where the money came from. this mystery is shining a light on this casino business, and some have suggested might be murky. haslinda: you are right about

that. when the hacking was first discovered, the focus was on the philippine banking sector. casinoifted to the junket providers because that is where the money drill -- trail ended. it is also raising questions about what the president has done to crack down on money laundering. casinos there, they are exempted from all rules prevented at money laundering. it makes the philippines a perfect black hole for a heist. ♪ >> these are the stories making headlines across the world. engulfed the towers in dubai. hundreds of people managed to escape, but it is not known if anyone is endangered or trapped inside. the city is home to many commuters who work in dubai.

the tower has seen three high-rise fires. little castro has criticized president obama's sort to cuba, rejecting what he calls the " empoerors presents." he warned obama about theorizing about cuban politics. thecuban did not meet leader during his visit, although he held several meetings with his brother, current leader raul castro. the former president of honduras as with guilty to corruption. he admitted accepting hundreds of thousands of dollars for influencing the allocation of tv and marketing rights when he was the head of the honduras football federation. he is the 14th person to plead guilty in the inquiry which has also seen the downfall of fifa

president sepp blatter. this is bloomberg news. along with a speech later today. let's get over to this. great to see you. are we getting ahead of ourselves in thinking at least some of these can go in april? april is very unrealistic. is thinthe narrative this year, and we believe at there is some hawkish domination. u.s.he reality is the economy is in a bad bunch globally. is a mustd that, it

view -- mature phase for the property cycle. the summaryty much of it. there's no significance in the u.s. too ambitious and discounted year. rishaad: let's have a look at corporate america. that is also going to be very important for the bed because there's talk of sharp profit slowdown and that could be worrying. george: exactly. we all know there is a sharper and we all know it is the energy sector dragging it down. that is historically looking in the revision mirror. going forward, can corporate america outside of energy sustain the currency to rise in the year ahead if that is your view?

that is one way one has to be cognizant. there is a challenge for north america, if they are doing better than economies run the world. , profits are contracting, the energy sector is noted. it will impact corporate america earnings in this year in the years ahead. one rate rise is about what to expect regardless of the country. rishaad: given evidence, some of the focus is what happens abroad and some focus is on china, naturally. what is your view of that one? at manufacturing, but we should be looking at the service side more and more. george: spot on. china's authority should be credit for many years.

they are dealing with the issues as they transition from investment into the services component. we need to see how that tracks. but the overwhelming factor here in the view we have is that the is no hard landing in china. there was a consolidation and transition in the slowdown your you all right, if there are's sharp slowdowns, that is a concern. that is on track for sustainable growth. if they can have that eventuate, that they give the opportunity to go two instead of one this year. china is good to give that signal for the rest of the world and whether the federal reserve can start raising rates again. rishaad: let's talk about where you are at the moment. we can't not talk about australia. how are the commodities side of things?

everybody is trying to identify we had been to the bottom. can't have broad strokes, as some may be do better than others, some do worse than others. george: spot on. at the higher level we believe the lows are behind us. having said that, the rally you have seen seems unsustainable and too quick. there's nothing in the structural parameters to suggest go up anytimeould soon. energy is much more cyclical. some recovery in the various metals and one year of going forward. but nothing that will be a sustainable rally. there is no precondition for global growth. as long as it is not revised

lower, that should be supported on the downside, and we believe the worst is behind us for energy and many of the metals. rishaad: george, great talking to you. we have to take a break. we are looking afterwards at the big banks and china as they get set to report earnings this week. we can expect. ♪

rishaad: this week is likely to

be the most crucial of the chinese earning calendar. they are due to report results. let's have a look at the importance of all this. keep in mind, we are coming off a decade with the average growth was 25%. have a look at this graphic. since 2004, this takes you back gone are the days when you had explosive growth. you can't understand why they are trading below book value. second left to the right, that is the estimate if you combined the big five banks. to come in roughly flat. if you are a pessimist, you can see they are actually falling. again, we also have to emphasize that when you take a look at these numbers this week, it doesn't mean these guys are not making money. they are still among the most

profitable companies in the world. apart from apple, my alert opened up so the stocks are opening up. apple is number one. the problem is not the number of money they are bringing, it is the growth. has to do with more provisioning they are doing because of rising bad debt. let me show you very quickly here. let me open my charts. of 2015, we are roughly at $200 billion. i alluded to, it is 0.6. you have this later on, very very busy.

rishaad: coming up, china is buying up big in australia. what is holding back any wave of investments? the markets are open in hong kong and shanghai.

♪ rishaad: a look at our top stories. asian equities dropping as many companies dropping. unemployment picking up and retail sales dropping more than 2% in february. mixed messages about a possibility -- possible rate hike. the owner of the sheridan weston and w brands says it has gotten an improved offer from china.

married stock is dropping. stock is dropping. the doj says it has managed to access the data on the phone and no longer needs apple's help. authorities say they were approached by a third party with a possible solution to the case. it ended the tech world against the government. and fueled balog about privacy and encryption. >> to talk about those concerning factors. it is the oil story. the disappointing charge of data that we had this morning as well as the yen not doing much either.

we are looking at the strength of the u.s. recovery being called into question. disappointing in the previous months, the revised down. being revised down. we are seeing a lot of weight and see sentiment in the markets. sentiment in the markets. we had disappointing retail sales and jobs numbers. australia, also low. shanghai is lower at the open. 0.25%.ng, up about you somethinghow that was moving today.

this was the china milk formula story. that stock is up over 900%. we are also seeing weakness across the financial westside. asia is down today after last week's game. rumors continue that tony fernandes may be taking the carrier private. no confirmation but a lot of reports. sharp is down 3%. they are giving back all of yesterday's gains. there was a report saying that they reported a net loss. they said it is not a source of that report, but it is considering cutting forecasts. we could see that signing between foxconn as well as sharp on april 2.

just to end on a positive note, this is the leading gainer. up by over 6%. rishaad: getting back to our top stories. a new bid from china's on bank insurance. will marriott strike back? here?s at stake >> how much confidence can they have that they can get the deal done. they had a little bit more comfort with marriott. the deal was almost at the finishing line. rishaad: it's better to be with someone who knows the business. ben: that has certainly been the argument of marriott. the deal would create the world's largest hotel operation. experience limited

operating hotels. shareholders would keep a stake in a combined larger entity. rishaad: are there concerns about being it will to do the deal. ben: definitely. there is no concern with marriott. the confidence is there. anbang is less on well known. to get thet approved money out, who is going to pay? rishaad: there is probably a regulatory issue was -- with marriott getting involved as well. what about marriott? it is looking a bit copy, this price. -- toppy, this price. limited ability for them to increase further. they have already increased and

they have to increase farther. angbang doesn't have to answer to shareholders. they have already coveted what they can afford to pay. bump up bybe able to a dollar or two, but at a certain point because relations for the deal do not make sense anymore. rishaad: and shareholders will not be happy. thank you very much, ben. let's have a look at this privacy battle. the government dropping its case against apple. the justice department says the unlock the phone with a help of an unlocked third party without comprising any data. we resent this from san francisco. this from san francisco. >> the government dropped its case against apple. the u.s. government was fighting with apple, trying to get apple

to develop software to let them get into the phone. apple saying it would take many it was possible but it would weaken security in all of apple's bones in much of the technology industry, compete for microsoft to google, letting up behind apple saying that a weakness in apple's operating system, and if the government was successful, it could weaken privacy and security across all technology devices. a concerted much of the technology world. then the u.s. government came pleading, saying in effect they could use another company and apparently was successful. will maybe see if they in court on the day, but as far as is met or goes, the government having success cracking the phone. san johnson, bloomberg francisco. rishaad: comment coming out of

apple as well, talking about how this case should never have been brought in the first place. able continue to help law enforcement with investigations. of course there will be limitations to that. the company has also talked to increase the security of its products here as well. raises issues which deserve a national conversation, and they say they would like to participate in that national conversation as well. should it actually happened. let's have a look at the reaction to the story itself on social media. edward snowden always has a lot of comments on privacy issues. dishonesty in the this case. he later sent another one

saying, if i am tim cook, the next apple keynote sends a message, even the fbi will have the grafting your iphone works for you and you alone. , the f-22weets reports were the fbi has said apparently it could not unlock the phone without apple's help, and that turns out they apparently can. rishaad: it was this unnamed third party who did. >> in general, if you look at social media comments, there are accusations of line. at the line, apple is lying. -- fbi is lying, apple is lying. said, hashtagad porky pies. he said apple is lying about how secure the iphone is. i could take into a shop and get the phone unlocked.

rishaad: which makes you wonder where the fbi went on such a goose chase. >> my favorite is this last week. i'm calling from the fbi and i'd cancel my upcoming at the genius bar. rishaad: after it was launched ulusickstarter, the first oc vr headsets have launched. hard-core gamers are likely to be early adopters. sony is releasing a computing device later this year. shares, let's have a look. they were marginally higher. thelatest survey showing economy still emanating weakness. capital expenditures have fallen into job creation drop to a four-year low.

sluggish loan demand highlighting three years of stimulus yet to convince companies to borrow. it is modeled on the u.s. facebook. failed to pay interest and principal, and also warns they may not be able to make a larger payment due next week. an increasing number of chinese companies have been troubling as of late. australia may be facing something of an identity crisis. this the most china-reliant economy of the dumb opening world. world.he what are the concerns here about chinese investment? concernsthere are

about fear of the unknown. investia is used to death with china, it is not a democracy, it does not have that singular -- similar language. there is he knows will be a more -- china ismmunist a kind of country. there is a worry, they investing commercially or as a foreign-policy. what is a strong need for investing? needy does austrailia foreign investing? whether you think china will overtake the u.s. in economy, it will certainly be the region's superpower. let's not forget this

is an election year. this is the problem, isn't it? what is the chance of a sensible public debate of this issue. between somewhere non-and absolutely none, unfortunately. class in australia has become short. there is a lot of money coming into the economy, and people have become more tactical and a weight they are looking at things. something like for an investment really does need to be done with strategically. a chance there will be a reasonable conversation between the government and the opposition in the electorate. it could come down on the other side. in the regions and rule areas -- areas, they could beat the nationalism drum. it is a fairly cheap way to go but it never really fails for whichever candidate is using it.

the market is unpleasant out there as well. rishaad: thank you, mike. an entrepreneur who is democratizing finance and china by offering affordable credit online. it is the future of credit checking as well. ♪

♪ hello and welcome back. these of the stories making headlines around the world. belgian police have released a man who was involved in last week's attacks. the man was the only person arrested so far. he had been charged with terrorism and murder. they are still hunting for the man pictured on a security video

in a hat alongside the two suicide bombers. 35 people from at least nine countries were killed in the attacks on the airport and a subway train. bacteria in asia, reports from myanmar city government has lifted the state of emergency. ago.s imposed two years they were denied citizenship and myanmar and still stay there. it is not known how the people were killed in the violence. many now live in temporary camps or in boats. american scientists say that the level over the winter was the lowest they have seen since measurements began back in 1979. the national snow and ice data says the ice spread to a maximum 9 million square kilometers, which is 694,000 below the 30

year average. temperatures over the north pole were warmer than normal. powered by over 2400 journalists, this is bloomberg news. online lenders and china has seen significant growth recently. like 200%d something up and growth. want to tighten the rules. they recently tapped into that mainland market. joining us now is the founder. you do not appear to be a lender, what are you exactly? will he do is, we are reinventing financial services by providing seamless, cheap access for lending over your mobile phone. customers install an app, and the app analyzes your behavior within seconds, and then you get

and youon in your rate, get it within 24 hours. do you: who backs you, have the money or the recent banks? simon: most of our money comes from banks. it comes from other people. they will give a lender's money, then give to our platform. we actually create asset, as it were different people like banks and p2p companies can fund. getaad: the idea here is to rid of the p2p lenders. but you are using them at the same time. we are using multiple sources of capital and then blending out. rishaad: worry talking about in terms of interest rates?

around 10%-20% apr financing. the hong kong credit rate is around 33%. it is around a credit card rate. rishaad: what do regulators say about that? simon: they are more looking at p2p lending. it is more about getting investment from the mass public, which is the side that is causing a lot of problems. that is our focus. rishaad: this is the thing that intrigues me the most. the way that you look at someone's mobile device, you are saying is that i asked for some money but i have to download your app. the app analyzes then, my habits. simon: exactly. this is interesting, this is

what we are passionate about. when you install the app, customers will quite as data from their phone, and it can be behavior, data, we analyzed a bunch of data from the mobile phone and rebuild profiles. traditionally, what banks do, they look at your credit record, and whether you would be a good borrower . in china, they do not have a record or collateral. we have to reinvent a new way to underwriting a on the personality, characteristics of individuals. we use data to do profiling. that is not something that could be done in the past when you could only be a person face to face and ask them a few questions and say you are a good person. we are now digitizing it and making it -- rishaad: what do you actually look at on someone's phone? simon: behavior, what you do

with it. , that has to do with it. i can give you examples. what we have analyzed is that people who apply for loans at certain hours, i can play a specifics. certain hours -- rishaad: 2:00 a.m. is probably not a good time. [laughter] how often do you use your phone frequency, the duration kong, wego into hong look at addresses. small caps, large caps. all this behavior will point to whether you are a good or bad borrower. rishaad: but it is pretty intrusive. we have had this privacy about going on. this seems like the app to be looking at exactly what i'm doing in my entirety. simon: we have said there is 100% customer authorization.

we ask authorization from the customers a few times. rishaad: but you've never had a default? simon: let's look at two different risks. identity theft, or it is not the person, and credit risk. fraud risk is zero to date. we can identify every individual. credit risk is some. 30 days past due diligence he is around 1%-2% right now. which is very low. having you onure the program. askingup, jenna could be to cutwned enterprises pollution in beijing. but will they go quietly? details coming up. ♪

rishaad: welcome back. beijing is probably the welcome mat out from many of china's state-owned companies. causing them to scramble among other cities to gore them away. -- lure them away. they are actually wanting these companies. authorities in the capital are saying please leave, it is not worth having you around. >> it is interesting because some of the biggest and most powerful companies have suddenly been asked to leave if they do not have their core business and the capital, and most of them don't. some have had their headquarters there for decades. now they have been told, you need to find a new place. part of what is behind this is trying to get rid of over clotting, traffic, pollution that beijing has become notorious for.

why stay? where do they go? >> what we are finding is a number of cities have started a rush to see if they could lower these companies away. sentof these have delegations to the capital already and had visited some of the top companies to lore them away with land deals. rishaad: and incentives i imagine. the state of headquarters so important? if the companies want to have executives who can rub elbows with the policymakers to the rules and regulations that determine how they make profits. it is like lobbyists in washington. rishaad: exactly. they will keep the lobbyists in beijing.

we'll tell you about we have coming up. we speak to an editor who say the coming days might bring the most negative changes to the vietnam market. ♪

oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals, micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well.

the flower power cruise, february 27th, 2017. let your freak flag fly. don't miss the grooviest trip at sea. ♪ >> from our studios in new york city, this is "charlie rose." charlie: welcome to the program, tonight. david payne has written a powerful memoir, and it is being highly praised by reviewers who say it is a powerful look at divisions and pain within a family. david: the only way that i felt that i could fairly and honestly tell the story was to be harder on myself than on -- at least myself, as on anyone else. i think that with my brother, his generosity and the fact that i needed something