♪ eri andhr rning, mrs. "trending business -- and this is "trending business." here is what we are watching this morning. asia-pacific markets are calling -- crawling for a third day aheaead of this week's meetingst the jew -- boj and the feds. the yen is stronger with more stimulus expected. resumes its climate ahead of inventory and production data from the u.s. crude has recovered after

slumping to its lowest since 2003. saudi arabia lays out its vision for a proposed -- post oil economy. saysrince and the country it is dangerous. you can follow me on twitter and do not forget to include the #trendingbusiness. here's a look at what is happening so far. good morning, another down day. haidi: that is right. we are seeing these markets in southeast asia coming online and joining the select that we have seen extended for a second day. we were trading further from this five-month highs we had in the rally last week. take a look at how we are sitting. we are seeing some positivity coming through south korea, coming up 1/10 of 1%.

first quarter readings on expectation. havegdp growth is what we slowing from 3.1% in the previous quarter. a surprise in terms of that data. it is a pretty big data brief, chinese profits coming through, hong kong exports coming through and that will be interesting. you can use that to reverse engineer the chinese data as well. elsewhere around the region we are seeing a little bit a downside although everything is flat at the moment. quite a bit of weakness coming through singapore for the second day, down by half a percent right at the open. shery: thank you for that. oil is continuing to climb in trade with some analysts saying prices have dousing the bottom. juliet, what is driving oil climb? we are seeing data

released this week with analyst we have surveyed saying it most likely rose by 1.5 billion barrels last week. during a 1% rise monday's trade which was a decline in five days. looking at the contracts almost 1% of the moment, so back above that $43 a handle mark. in energy trader has told us they believe prices have bottomed even as growth in demand has peaked, crude rebounding after the slump after 12 years. know that we have seen a number of numbers decline, with the u.s. reduction declining for a six week in a row last week, and kuwait meanwhile has a plan to boost its production to almost 3 million barrels a day within months, and that would

double its supply where it was last year during the oil workers strike. on the one hand, you have the decline coming through in u.s. production but there could be a bit more of a boost coming through for the middle east in production. prince announced the blueprint for the country's future, post oil and he does believe there will be trade talks between opec and non-opec producing states, even though we know this talks actually stalled last week. currently at the moment, we are seeing the decline coming through in production at the same time, there is production coming through in the middle east. shery: thank you. we will take a more detailed look later in the show. we want your opinion, so please give us your thoughts.

chipmaker is rising. edward chan is here. what is that tell us about the market for smartphones? >> the market for pc and smartphones is not doing well. demand is tepid. hynix the market was expecting a poor result. we saw everything fall, margins, revenues, operating profit and that is because the prices are about half of what they were a year ago. this just confirms the expectation. this year we may see the worst of smartphone decline on record. shery: those expectations already having the stock rise, but what is the outlook for what chipmakers spend and given the

slow expectations, how can they write out this --ride out this? >> you will see demand flatlining, even the smartphone market is now decelerated, chipmakers have to keep a lid on costs, keep upgrading production to boost yields and margins, and hopefully there will be a driver of growth, and undergrowth. shery: thank you for that. he lowest proffered for sk ynix in three years. the other stories we are watching today, yvonne, a big one coming up. yvonne: you will want to watch this one, bringing apple's greatest -- latest earnings and they are expected to be rather grim. the company has only warned investors the results will bring bad news about iphone sales, revenue will drop for the first time in more than a decade. the question now, is how badly?

if you take a look at this chart on bloomberg, apple may sell less of its most popular product, the iphone this year. if we take a look at the 2015 numbers, apple sold more than 2.5 million iphones last year. customers are just not upgrading their phones as much as they have in the past seven years or so. they expect iphone sales to decline in the next two quarters which would be a significant hit considering iphones account for two thirds of apple's revenue each quarter, and for the stock point of view, while analysts say this may already be priced in, apple has fallen 20% in the past 12 months and we will look at those earnings coming up for the u.s. power as its holdings -- assets holdings, canadian oil pipelines, the two companies paying a total of $1.3 billion

to husky energy which is also controlled by the hong kong billionaire. sales to businesses controlled by the richest man in hong kong is probably the best outcome for husky. it is presumably the highest bid it has received so far. trying to shore up their finances in the worst oil market downturn in decades that we have seen has posted a loss of $361 million in the first quarter compared to a $150 million profit just a year ago. a part of this deal will form a new limited partnership with power assets. finally, if you are at the beijing auto show you may have noticed the big elephant not in the room. mitsubishi motors have skipped the event as they grapple with the mileage scandal. that has not stopped the local joint venture, that says it wants to become the top suv brand in china and will

introduce 10 new models over the next five years. it is part of the venture's goal to become number one in suvs in china while volkswagen apologized at car shows after its own scandal, and mitsubishi says its partner is not in a position to apologize for it. mr. b she has until wednesday to cement that it about a falsification to japan's transport ministry. the company has not said if the cheating extended to other models or on vehicles sold outside of japan. att is all we are looking for you today, back to you. shery: thank you. still had on the show, finding the right investment opportunities in auto startups. next, japanese stocks fall for a second day, head of the boj meetings. we will discuss that more after the break. ♪

shery: welcome back. morgan stanley investment says that take advantage of generate stock numbers, boosting margins. let's get more from our finance reporter. do you think investors are coming back to india, indonesia and the philippines and that is all left her that exit we saw a earlier this year. >> exactly. asian developing markets are seeing a return of influx after a heavy january and commodity prices collapsing. has stabilized and commodity prices rebounded and it seems to be slowing down the rate hike and that is why investors are feeling more confident and we are seeing 1.3 billion indonesian sovereign bonds alone, and $450 billion in india. shery: how long will they be confident?

what sectors do they like? >> in india they like telecom communication companies. in indonesia, they like developers because cash flow is doing well and margins are fat compared to chinese developers and in the philippines they prefer to utility companies and the conglomerates. shery: is anything morgan stanley likes? >> they have cut china all the fundshe rise in offshore and markets. they prefer the very essentially on instead of the government .wned smes in the private sector companies, they prefer lower yielding companies. shery: they are very cautious.

we have already seen the numbers slowing down, the economy is actually shrinking. thank you so much for that. the latest on morgan stanley. asian stocks are on the decline before the boj and fed meets this week. the prospect for further japanese stimulus helping strengthen the yen from a three-week low. our next guest says there is a rising risk of a serious correction in equity markets. join us is a founding partner. take you so much for joining us this morning. let me get started with china, the cousin was just talking with our correspondent and people are becoming more cautious there but we are seeing the headline figures improving for march. was that just a seasonal blip? >> if you look at the underlying driver of those numbers, you would be scared. [laughter] shery: they look good in the

outside, but not so much when you dig in. recovery, butke a look at the expansion, the ratios rising, the credit events, this is really a warning , the default in cases is a rising factor. let's say, the macro number looks good, but how long does it last? that is the question. is it really coming from export demand or investment demand or two thi the property things, the-two property sector. the chinese are spending so much money on infrastructure. how much more can they spend on these?

the issue is not the real demand, but the shift toward reform to demand side stimulus. shery: we have been talking about the sector and doing well, the economy seems to be shifting , and it is going in the right direction. we are now hearing they may not be heading -- cutting rates, less stimulus in that sense. could this help the economy in the long run because the shift is going in the right direction? >> they are shifting at the right direction, trying to reform the capacity, but now the booming sector, the steel prices are rising and the steel mills are resuming production because they are making money now, so they do not need to reduce the capacity, and i think you're right, the service sector is a stable sector, but when you see china becoming less competitive, a lot of people will be laid off in manufacturing space.

that is a key issue. shery: another problem in japan is also monetary policy, just pushing through despite many economist warnings, we have the decision coming up this week, a majority of them expecting to boost stimulus. where do you stand there? >> i think they need to do something because after the first stretch of the stimulus, the market's reaction was negative, right? shery: backfiring. >> i think the key issue is people are not confident about the economic circumstance. if you look at and from flight -- inflation expectation, japan has wage increases where people can spend more money, but companies are keeping all of the cash and not giving wage increases. that is the problem. i think they need to do more things. shery: they need to do more than what it is already doing? >> they need to turn around when

people are expecting with inflation. shery: how do you do that? >> the central bank is doing their own bidding. shery: is it about the government trying to restructure the rest of the economy? >> they both need to do that. the two bsc,t --tboc, it is structural reform, supply reform and it is lacking. that is why we are very cautious on the outlook. shery: that is exactly what we are seeing in the u.s. as well, because we have this data coming out saying new-home sales are inht surprisingly the downside. where do you see the fed going from here? >> i think based on the data, it will not raise this week in

april, but i think we need to look at this carefully to gauge when they will do it may be in june because this is just before the vote, so they cannot do it before this. shery: what about the fundamentals of the u.s. economy? best, but lookhe at the retail sales. global economy is really flattening. there is no power going ahead. shery: thank you so much for joining us. a very interesting look on the global economy today. thank you so much. now the stories making headlines around the world. china says it has reached a consensus with three neighboring countries over islands in dispute of waters. a deal was agreed on by the prime minister when he visited

cambodia last week. the ministry says the territories are specific and do not pitch china against them as a whole. the briefing says the two sides agreed with the dialogue and international law. tycoon may bee expelled from the upper house of parliament and the government's latest move to recover outstanding loans. the news comes after the foreign ministry revoked his diplomatic passport. involvement on as much as $1.4 billion in loans to his kingfisher airlines. brazil has taken another step toward impeaching the president, a lifting a committee that will decide whether or not to approve her trial. senators approve the panel which will meet later today. it has members from across the

political spectrum, and up to 10 days to hear the president's defense and make the recommendation to the full senate. opponents need only a simple majority to force her to step down temporarily. journalists and 150 bureaus around the world, you're watching bloomberg news. father worstsinos week since january and the slump shows no sign of a reversal. "trending business" continues. ♪

shery: welcome back. breaking news for you. malaysia's sovereign fund says it is in default of payment. this comes amid a dispute between abu dhabi. on 5.5% in default notes amid a dispute with all

fundobby -- abu dhabi's and at a time when it is under investigation for $4 billion of questionable transactions. it will meet all other existing financial obligations, and one says the defaults were triggered andebt due in 2021, 2024 2039, and they have been under investigation for more than $4 billion of questionable transactions. we will have more on that later in the program. casino stocks have had the worst week since january. isy say the winning streak not meant to last. give us some context, because i have heard you say this was temporary, that the slump was temporary and we would see some thisery soon, but is

something we should be worried about? >> context is an important word. it was a bad week of the stocks are up over 30% where they were three months ago. , even moreill down importantly, 70% where they had peaked in early 2014. we have gone through a two-year part slumped and we are now in out, and of bottoming if we look at this point, earnings estimates have bottomed and evaluation is now at 10.8 times, the measure we all look at, and you are going to have a pullback after you have had such a sharp rally from a low point. not a huge surprise from the perspective. shery: what about all of the new resorts?

they are concerned another 1600 tables come into the market, that could further put pressure on the casinos. >> no doubt. you have to think about supply versus demand. i think the 1600 tables is highly unlikely. that is what the four remaining that will besorts opened have asked for, but we know there is no way they are going to get that many. they make it 200 or 250 per resort, and they will reallocate tables around their existing properties. in the end, there is a real debate hollow -- about how can these new resorts help drive demand? we are emerging into a new resort destination, and what is core is driving the mass-market business, the non-gaming business. thatve a new report out

addresses this issue. shery: again, the mass-market very important there. thank you for that. stay here for the latest on this casino. we will have more for you coming up on trending business," especially after malaysia prepares for the multibillion dollar contract. .

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x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. shery: the top stories trending this hour. asian inch mark is falling for a third day. sink beforeities meetings in the united states and japan's. 27 companies report today, including canon. of u.s.limbing ahead stockpile data with west texas bankable $43. lowest has seen its

prices in three years and operating income fell 55% $498 million. the south korean chipmaker depends on apple for about 10% of its revenue. chip prices have almost have in the last year is slowing global growth if the demand for electronics. to buypposing has agreed companies.n piping biggest one of canada's independent energy companies. we now turn to heidi. studies are a little bit mangled, although we are seeing broadly a bit of a downside picture. they are waiting for the

trifecta of bank decisions. we are not expecting zero probability with the fed moving ahead with a rate hike. japan, a select group of traders are expecting some sort of stimulus from governor kuroda on thursday. this is what we are seeing in the china open. hong kong seeing a little bit of a but coming through, about .4%. it is still retaining that wooden spoon as well as being the worst performing market. the yen starting to creep up with the nikkei down .4%. taiwan a little higher. a big week for central banks, a big week for earnings, and a big week for data as well.

ory are waiting on one thing another and that is flowing into sentiment. check out the movement. we have a commodities rally that is moving along. it is up .3% but it is far from retracing the monster 9% on wednesday. two have of the big plunged almost 5% in the new rio session overnight with down by 2.2%. tescue is down by over 5%. this is what we see moving in the tokyo session. they have not pulled a profit in three years but we are seeing stock up 3%. japanese steelworks was up to close 12% earlier which would have been the biggest gains

since 2013. -- theyeing weighed by are expecting a profit to that same amount. a little bit bewildering that japan steel is sing so much and it did raise is 2015 revenue by 4.8%. dai-ichi life is down after the gain today, expressing concerns of the earthquake. shery: saudi arabia performed the worst in weeks. now this could be, what, the biggest ipo in the world? julia: they are saying it could exceed $2 trillion. we have a story on bloomberg that if saudi arabia sold this part, they could buy four of the biggest companies in the united

states, microsoft, walmart, apple, and berkshire hathaway, and still have some cash over. turned into a public holding company which will be at a later stage. it is a cheap valuation. 10 -- $2 trillion of their violation would be at oil at $10 a barrel. it is for time. be remnants of aramco will transferred to the sovereign world fun. it is the country's reliance to try to get away from its reliance on oil. the deputy crown prince saying by 2020, he thinks they can live without oil. they will need it, but they can live without it. let's see what else he said about saudi arabia's reliance on the commodity. >> we have all developed an unhealthy oil addiction in saudi

arabia and this is dangerous. it has hampered development in many sectors during the past years. arabiahow was saudi going to move forward without the dependence on oil? juliette: they will cut back on wasteful spending. one of the areas he mentioned was overhauling the military. he said when he goes and looks in the saudi military -- he's his opulence. he sees marble floors. when he looks at a u.s. military base, he sees pipes coming out of the ceiling. they can cut back on spending like that. $56 billion.as they are going to allow ex-pats to own their own property. they're going to put taxes on luxury items, and they want to bring more saudi's into the labor market. thingsre a number of

saudi's have not use. they have 6% of the world's uranium reserve, and they use 3%-5% of its mining resources. a number of plans to generate $100 billion per year in non-oil revenue by 2020. trying to move away from saudi arabia's reliance on crude. shery: more on that breaking news from malaysia, where they say it is in default on its 5.75% notes. us? do you have for >> payment was due on the 18th of april but it says it will meet all other existing obligations. mdb andted earlier, one i pick, which is abu dhabi

sovereign wealth fund, the two have been locked in a dispute. assumeid it would db loans.for the 1m they say that they were in default of that agreement. they fail to pay more than $1 million in that loan. it is a latest episode of financial scandals. it is a target of multiple investigations globally involving singapore, switzerland, and the u.s. the saga continues to unfold. shery: it has been going on for, what, seven months now. let's check on other stories we're following this morning. mountain legal costs at deutsche

bank have sparked conflict on the advisory board. the deputy chairman accused another member of being overzealous in investigating potential wrongdoing. they have wife doubt profit. shares have tumbled more than 25%. a $55 billion deal to create the second-largest u.s. cable provider has moved a step closer. wonm communications has antitrust approval to take over time warner cable, making shares jump over 4%. a number of conditions have been posted to protect competition and the bid needs and approval. 3% in thejd.com fell u.s. after fitch said the company does not have in investment grade credit profile due to low profit and week cash generation.

fitch also said the internet finance business is an integral part of its retail operations and must be analyzed on a consolidated basis. s&p rating j.d..com at the lowest investment grade. fresh gdp data from china integrates growth across the country is going further and policy.plicates stephen engle joys us. they look like growth is stabilizing. not so much for the municipalities. stephen: it is hard to put one figure on china's economy as growth as splintering. you have coal and steel which are severely suffering. skyrocketingices in places like beijing where 90% of the growth in the first quarter was in services. in the west, you have lots of

successes in investment in going into roads, railways, and bridges. discrepancy going on. the latest number you got was very telling because you have 21 of 30 regions reporting their own growth numbers. belt, whichhe rust had its big reckoning back then. they have not reported. provinces rust belt that are heavy. they are suffering. they had not reported yet. was 3% in the fourth quarter. it was probably worse. xi province has reported 3% growth. you have hunan province low growth.

this is the chart on the far right. you can see the estimate of 7.11% currently because that is affecting the rebound we have seen. these numbers are painting a different picture right now. you have a big dilemma. the national people's congress said the chinese economy is full of hope and challenges. the big challenge is excess capacity in steel and coal. how do you work that off, that inventory? howdy reform those industries without causing mass unemployment and a property, how do you work off the excess inventory without stoking bubbles in the big cities? shery: that is bad news. where is the good news here? where are those encouraging signs? shery: good news can also mean bad news down the road with the buildup of debt.

we are seeing pockets of tibet.h into bet -- in these are in the west. they are seeing double-digit growth rates in the first quarter as reported by them. a lot of provinces are getting lots of successes in investments in the form of roads, railways, and bridges. property has rebounded. the high non-is doing well. shanghai is getting a big boost in services. shery: a big headache for policymakers. stephen engle with the latest from china. show, ap later in the venture capital firm that aims to find a hidden gem that could change transportation as we know it. ♪

shery: it is 9:44 in hong kong, 10:44 in seoul. canada has confirmed the murder held byf its citizens militant muslims in the philippines. his severed head was found alongside a road. the group had threatened to behead one of them if a large ransom was not paid by monday. the group is also holding more than a dozen indonesian and malaysia and sailors. donald trump says a deal between his republican presidential rivals is a collusion that would be illegal in business and shows they are desperate. ted cruz and john kasich have agreed not to actively campaign in some states, allowing the others to collect all the antitrust -- anti-trump votes.

trump needs to secure 1237 delegates to avoid a contested convention. soyuz rocket has blasted a french rocket -- french satellite in space. deviation in the experiment could prove that einstein was not quite right and open the way to a more precise theory of gravity. the rocket is also carrying three 10 centimeter square satellites designed by sweden. you are watching bloomberg news. bmw is taking a page out of airbnb's playbook. future minis will be equipped with a device that allows owners to rent out their vehicle.

it will include payment and tracking systems. featuresexpand their to the luxury models. it is a push into mobility services as uber and ridesharing operators present alternatives to owning a car. staying with automobiles, our next guest runs auto tech ventures, the world part first venture capitalist firm to focus on auto startups. they are a talent scout for those who want to reinvent transport from the ground up. it has raised $75 million. joining us is queen garcia. let me get started -- you have made only one investment so far. am i correct in that? and that was to lyft. >> we are the world's first ground transportation venture capitalist and they are

a pure play on usa ridesharing. they are highly focused. they have a strong culture of community and they have strong partnerships in asia. they partnered with grab taxi for the southeast asian market. shery: how does this introduction of mobile services into the auto industry, as well as high-tech players coming into the auto industry affect the playing field, especially for transitional incumbent players? quin: there are a lot of transportation issues in asia. there are a lot of challenges related to safety on the roads, pollution, traffic, congestion. there are also a lot of asian tech giants that are entering the transportation sector, be it alley by the -- be it alibaba or 10 sent.

all of these corporations recognize that a lot of the new technologies that will solve a lot of asia's transportation issues are developed in silicon valley. we service the bridge which feeds some of these development technologies and all of these startups on the other. gotten $75have million in one year. how much excitement is out there with all these new startups? quin: this is a perfect time for our firm to exist. exitshave been a ton of recently, from cruise automation being acquired by general motors, two ways -- to waze being acquired by google. there are a variety of others. it is a wonderful time to be a venture capitalist in this space. shery: at a time when you see all those these fuel efficiency scandals, how does that affect

your business decisions? quin: a lot of automakers are changing their business models. they are transitioning from being traditional manufacturers into becoming mobility companies. some of the scandals we have seen recently, we expect to it celebrate some of their changes from traditional internal combustion manufactured vehicles into electrified vehicles which are shared and eventually autonomous. we see autonomous vehicles as being most likely the largest change to our society and economy since the internet. shery: on the production supply-side, how will consumption of automobiles change in the future? shery: -- quin: one of the reasons we invested in lyft is sharing vehicles is increasingly more difficult. rethinkstry needs to the way they provide mobility to its users. shery: where do auto tech ventures go from here? you invested in one company.

how many are you looking at? invest in about 15 up to five money dollars per start up in the next two years. we may see some of the security breaches recently. shery: it is scary, isn't it? quin: it is scary, but starters are developing solutions. solutions developed for the i.t. industry are being applied to transportations. autonomous vehicles, energy efficiency, and new services as to how do you buy these vehicles, sell them, park them. shery: what type of people do you need in the industry now? i imagine it must not be the same as it was 10 years ago in the auto sector. the autoditionally, sector has been dominated by mechanical engineering, hardware. shery: straightforward, black

and white. quin: now it is changing towards software and services. , and of these acquisitions cruise automation, if you look at tesla, they are more of a software come pay. shery: thank you so much for joining us. seven months after dropping the initial design for plagiarism, the tokyo olympics has a new logo. ♪

shery: tokyo has unveiled a new logo for the 2020 olympics. it is the second time after the original emblem was scrapped over a plagiarism debacle. what is happening now? >> you have new logo designs

that were just accused of plagiarism. here is the new one. the harmonized checkered emblem is what it is called. they unveiled it yesterday and this is based on a traditional art form in japan. theas an area of japan in 1600. some have called it kabuki-inspired. it is made of rectangular shapes that represent different countries, cultures, and waves of thinking. you may remember seven months ago when the original logo was scrapped. this is what it looked like back then. people said it was a rip off of a belgian playhouse. the artist denied any plagiarism accusations. reactions on social media were pretty mixed. simple, japanese,

but some people said it is failing to excite. one commentor said it is not symmetrical and it looks me. said, this is what i envision a migraine looks like it shery: it is very traditional and nice. yvonne: it is simple and different from the ones before. social media, they can never stop at the criticisms. this is the picture so far and people not too excited about it. shery: with all of the controversy already, the stadium being scrapped, the original design, too expensive, i think they said it looked like a bicycle helmet, the design. it is something cheaper, i guess. yvonne: it is very subjective. beauty is in the eye of the beholder. i think it is a new design, imething to talk about, and

like it. shery: heineken is expecting more beer. we will ask heineken's asia president when trending business returns. ♪

announcer: from our studios in new york city, this is "charlie rose." charlie: david cohen is here. he has served as deputy director of the cia since february, 2015. he was previously under secretary of the treasury for terrorism and financial intelligence. in that role he was the key , architect of the administration's sanctions against iran and russia. he has also led efforts to disrupt the financing of isis and other terrorist groups. this week, president obama visited saudi arabia, where he urged arab states to increase their commitment to the fight against terrorism. the president heads to germany on monday to talk strategy