angie: the asia-pacific a set to track the wall street declines. around 100 six. election countdown. australia gets a double dose of stimulus as it heads toward an expected july to vote. and trump takes indiana, dealing a devastating blow to ted cruz. the democratic primary is too close to call. welcome to "firstup."

under way inng australia and south korea. david: let's set this up and really have a look at what happened overnight. one of the biggest drops in one month. that is europe overnight into midnight. a look at the americas. brazil, 2.5%. i think what's really interesting here is that the reasons people are selling is building an part of it, some of the reasons like a weaker u.s. dollar, was a trigger for risk appetite and has become a reason to sell. disappointing earnings coming through. financial stocks wiped out from the u.s. to europe. and you have earnings as well. watch the top line.

markets open in asia. tracking the losses we saw on wall street. japan is still closed. .25%.korea down about a double dose of stimulus coming from the ibm. we will check in on a lot of these stocks, which analysts have a flag of the main beneficiaries. cents.dollar, 75 u.s. check out the dollar yen. we are still trading at around these levels. we heard from several fed officials overnight. june is live.ng don't discount it might happen.

in chance the fed moves june. a look at oil. at the moment, up 44. on big data point out of asia, the gdp print coming out of indonesia. expecting scores there over 5%. rough estimate from analysts. it usually comes out in the afternoon. will help sway some of the negative sentiment at the moment. it is really consolidation so far is what we have seen across markets so far this week. angie: thank you. the australian government has kicked off the campaign for an expected july 2 election with a double shot of stimulus. the treasurer delivered a budget

focused on jobs and growth after the rba head cut rates for the first time in a year. paul allen standing by with the story. : getting this under control goal. of the main the deficit came in at $37 billion. a path toment chart reducing that to $6 million by 2020. it relies on a fair degree of optimism. some pretty optimistic growth projections. they will be a modest tax cut for businesses earning under $10 million per year. 80 task force to crack down multinationals. the words we keep hearing over is on top of the budget document itself.

it will probably be formally announced tomorrow. angie: i feel an election in the and. say aboute treasurer the rba cutting rates hours before the budget? paul: immediately, i asked him in the budget that there was a cut from the reserve bank, indicating underlying weakness in the australian economy and here is what he had to say. >> what it reflects is what i was talking about. they have an inflation target between two and three. they are seeing what has been happening in the housing markets here on australia and they feel they can start to move without risking it in that area. paul: the deficit -- the cut a timely one. angie: thank you for that.

we are going to have some big guests talking about australia's budget later this hour. we will be joined by this bell when in fact -- kristen bell bowen in five minutes. and we will hear from australia's finance minister. headlines this wednesday morning, the overuse of trading calls and the chinese markets can be a key obstacle. found 16 polls believed sock. stock suspensions are a main hurdle to inclusion. 12% of companies on the shanghai exchange are currently suspended. wantsse prime minister closer economic ties with the european union. he stressed the importance of

completing their partnership agreement. both sides called it ambitious and said strong political will will be needed to make it a reality. partners andic members of the g7, japan and the eu have the responsibility to collaborate for the peace and stability of the international community. i would like to see better collaboration and cooperation on this front. angie: the yen is stabilizing near an 18 month high. the currency depreciated end is near 106 levels. traders are heading the fed will delay interest rates. -- betting the fed will delay interest rates. needs to use all of its policy levers and not rely excessively on one lever like monetary policy. they need to have fiscal policy, structural reform, and an

aggressive monetary policy. angie: donald trump has consolidated his lead in the presidential race, taking a victory in indiana. closer on the democratic side. let's get more with tim higgins in washington. how important is trump's latest win in indiana? tim: a massive loss for senator ted cruz, trying to stop trump and trying to get the republican nomination. by losing in indiana, it makes mathd harder, makes -- the harder. that is the case he has been making is that he can slow that approach and he can maybe when in a second round of voting at the convention. at this point, trump going into the final state in the next few weeks only has to win about half the delegates available.

he doesn't even have to continue at the package has been doing. angie: to build up to this primary was raucous, personal. how might that affect the remainder of the campaign? uz stays in, and that is what he hasn't said, that he would fight to the end, the question will be only have the support to continue? a look at voters coming out of indiana today and more than 90% in exit polls were saying they're very concerned about the economy. the message of donald trump about the economy is resonating. even though ted cruz is saying he will fight for them, it's resonating with these voters saying they want an outsider candidate. angie: let's turn to the democrats. a tight race between clinton and sanders here. 10: the last poll before voting

started, clinton was ahead and now it's too close to call. a bernie sanders when would be win would bes -- great for his momentum. it would give him a bump, help him in fundraising and help him continue his campaign into california. we can see he's already reserving spots on advertising stations across the country and the upcoming primary states. it makes hillary clinton spend money she doesn't want to spend and diverse her attention from pivoting toward the general election toward likely donald trump. angie: thank you for that. when we get the latest results on the democratic primary in indiana, we will get those to you. where it hasnow injected a double dose of pre-election stimulus but will it be enough? bowenl hear from chris

coming up next. ♪

angie: it is 8:13 in hong kong. the thai prime minister has dismissed calls for greater press freedom. he reiterated his support for the clampdown on the media and specifically executive order on d7, which forbids recording from anything deemed detrimental to national security. one asked if he would remove the order, he said he would simply replace it with a new one. dj melia says he doubts he has been given a fair trial if he went home to face his debt. he said he doesn't want his name y whatd through the mud b

he called the lynch mob mentality. he is accused of walking away from $1.4 million of debt. .rones and driverless cars meet the naval vessel with no crew. the pentagon has displayed a pilotless ship that they will sail 15,000 kilometers on its own, designed to clear mines. of test follow, which will be watched by commercial shipping companies. powered by 2400 journalists in 150 bureaus around the world. this is bloomberg news. angie: a double shot of stimulus, australians economy with an interest rate cut followed by an expansionary budget. and built plans to boost infrastructure spending. who are the biggest wenders,

david? -- winners, david? david: when the rate cut came through and when the budget was , it was a shot in the arm already with the press rate cut. you have the budget and everything else fall apart across global markets. it's a typical case where it's good news domestically. outside, everything falling apart. the latter is winning out at the moment. you have to consider 2% gains yesterday for the asx 200. we are watching the banks. they had to cut the rates after the rba taking the cash rate 1.7 5%. then you look at the budget. from what i have seen from these client notes coming from analysts, you look at the small and medium-sized enterprises and at some point, that makes its way into discretionary -- not

-- do these names go retail? goes intoally consumer goods. we are down 15%. not as bad as the overall market. very complex at the moment. a few names have been put forward. will works, harvey norman -- woolworth's, harvey norman, a few of these other small to medium-sized stocks. macro maurice -- worries at the moment.

australia is expected to see deficit for the next four years so is this budget enough to help growth? joining us is australia shadow treasurer, chris bowen. saw a really huge spike in equity markets, especially after this double dose. do you think, in your opinion, that this will work? they are two separate issues of course. our reserve bank cut interest rates yesterday. that isn't something which many commentators would see as of some concern. the bank is concerned about the level of economic activity. of course our reserve bank hardly works independently. bank doingreserve its job.

in relation to the budget, this is an election budget. we expect the election to be the opposition to be competitive in terms of winning the election. we will be going to the election with alternative policies. some of the policies announced last night we will support but we will be making a different presentation. priority for us is defending our aaa credit rating. that is something to be protected and the government involved on a tenure corporate tax cut plan, which is unfunded and fiscally reckless. about the's talk budget that you will support. taxexample, custer company for companies making under $10 million. to company tax for companies making under $10 million. guest: the accepted definition

of a small business is under $2 million. the government wants to embark on a program of increasing a threshold until it reaches $1 billion. a business with a turnover of $1 billion is not a small business. it is just an excuse by the government to avoid the fact they are actually producing a tax cut for large businesses. it tax cut to a larger business is an aspiration but when you have a aaa credit rating under pressure to do this in an unfunded way is the heart of a responsibility. angie: what will you be supporting then? we will support a small business tax cut, taking the rate down to 27 point 5% with a turnover of less than $2 million. we will support personal income

tax cuts. will support the measures which the government has adopted which are our policy. we are having a look at some of the other measures they announced with a view to supporting them and we will support the government's diver did profit tax. angie: there are a lot of people , thatd about this budget aaa rating, and wondering how are you going to pay for this deficit without revenue boosting measures? revenue does need to be boosted as well as spending cuts. both of these things need to be achieved. we have announced things like changes to our negative gearing

regime. it is unsustainable and unfair. towill put it to work stimulate the economy. many of the policies were appropriated by the government last night. angie: you talk about writing it in but considering you presided over the ever-growing budget blowouts we have seen under previous turns and power, is there a credibility gap here? >> this government has tripled the budget deficit. it has tripled under their watch. alternative. more than that, i outline plans to do it.

i don't just say it, i outline plans to do it. withng with not proceeding a baby bonus. it is an incentive payment to have children. it's unsustainable. it cannot be done. decisionsvolve some which are tough and unpopular but it has got to be done. angie: if you've been on the treasury benches for this budget, what would you have done differently? we would implement the policies we have been announced inc.. we would have a budget that has a gradual return to budget balance. the australian economy does not need a massive withdrawal of funds. we need good, quality structural saves.

angie: thank you for joining us today. the fed bank of atlanta says a june interest rate increases a blue option. we will see how the dollar is reacting coming up next on "firstup." ♪

currency check and here is where we are this wednesday. critters have scaled by exposure and expectation. the fed will be able to raise rates.

that may have been priced into quickly. overlook thet to june meeting. dennis locher stressed june is due for a rate hike. john williams of the san francisco fed said he would support raising rates provided the economy stays on track. mr. williams is not a voter this year. iss 12% chance the market loop next for a fed month. the crucial data point today, .upporter grow support -- growth support. let's stay in southeast asia. you have elections in the

philippines. a fairly big event there. 50 million registered voters. have a look at how foreign money has fled. scaled back their exposure. your base currency is the philippine test. it has fallen against every single other currency. that is down to the drop overnight but that means it's fairly clear. it's not an issue of a single currency. right or ron, that is what foreign investors are telling. it seems to be still intact here. the rate cut yesterday really supporting this trade the aussie dollar will continue to weaken. stories driving your markets this morning.

angie: coming up, china's $6 trillion stock market looking a little dough compared to a wild ride and commodities. we will assess that for you next. ♪

angie: new york times reporting ted cruz may be dropping out of the race. he has not yet announced that. let's listen in. the countryerica is that gave my mother the chance to be the first and her family ever to go to college, to become a pioneering computer programming in the 1950's. [applause] i love you, mom.

is the land that welcomed my father as a penniless immigrant. he had seen oppression, prison, torturing cuba. for him, america was hope. it was opportunity. in 1957, if someone had told that teenager washing dishes for $.50 an hour that one day, his son would be elected to the senate and he would get a chance to cast his ballot for his son to be president of the united states -- [applause]

let teenage immigrant washing dishes could never have believed it. that is exactly what happened only in america. in recent months, a lot of people have been talking about what happened 40 years ago at the republican convention in kansas city, our party's last contested convention. when i look back at that convention, i think of the speech ronald reagan gave to our party. he spoke not of the next four years. he saw not the close horizons of interest to those who seek to build their own fortunes in the short-term, but instead, he looked to the distant times that concern the men and women whose purpose it is to secure the blessings of liberty to their posterity.

ronald reagan spoke of the next 100 years and other generations of americans who would come to know whether our nation had escaped the existential threat of nuclear war, who would know whether our party had succeeded in its fight against the erosion of constitutional freedoms that only grow and multiply under rule of the democratic party. ronald reagan spoke of the purpose that you find our party then and that must unite and drive our party now. [applause] the republican party of ronald reagan and of george herbert walker bush ensured thousands of nuclear missiles, that the soviet union and united states have targeted each other or never fired and that soviet communism was consigned to the

heap of to the ash history. [applause] they fought hard so our american freedoms were not lost nor sacrificed in pursuit of any domestic agenda of the democratic party. [applause] todaye challenges we face remain as great as ever. americans are deeply frustrated and desperately want to change the path we are on. we have economic stagnation at home and our constitutional -- angie: the last stand for ted cruz the stop trump campaign but that stand has fallen with his loss, making it unstoppable for donald trump in his quest to win the 1237 delegates needed to claim that republican

domination. let's get more with a bloomberg news reporter tim higgins in washington also listening in. new york times reporting that hiscruz will be ending presidential campaign. what does this mean? it means a donald trump is going to the convention as the nominee essentially. there is no one else with enough delegates. and thee front runner republican nominee, likely facing hillary clinton, democrat who has it sewn up her nomination yet. presumably she will have enough delegates going forward. a big victory for donald trump, something if we were to talk about this last july, people would be joking about this and they wouldn't believe it. angie: the possibility is getting more of a reality. what was the buzz leading up to this indiana campaign with ted cruz and john kasich making a

johnto not cut run and kasich leaving it up to ted cruz to try to fight and stop donald trump? tim: ted cruz always made the argument if it was one-on-one with him and donald trump, he to take out donald trump and in indiana, he got that chance and didn't come close. looking at the exit poll today from republican voters, we saw a large number, six out of 10, saying they wanted an outsider candidate. years ago, senator ted cruz would have been considered the outside candidate. his colleagues despise him. members of congress motte can. a week ago, the former speaker of the house compared him to the devil. here is a guy that was the outsider and now he's defeated by a reality television star, a

man who made his fortune in real estate, who is now the outs tighter will have the party's endorsement, the parties backing as he runs for president. angie: ted cruz seems to be building up to something with the crowd reacting. mr. cruz: this is the fight that falls to our generation. we launch this campaign, we saw a movement grow. the pundits all said it was hopeless but we saw over 300,000 volunteers across this nation. [applause] over 1.5 million contributions averaging about $60 each. [applause]

many of those volunteers, many of those contributions you never forget. a few days ago, two young kids 6 and in the two envelopes full of change. all of their earnings from their lemonade stand. they wanted the campaign to have it. that is what built this campaign, that is what fueled this movement. [applause] ,hank you to each of you incredible patriots who have fought so hard to save our nation. [applause] i am so grateful to you, to my

, to our precious , to my mother, the prayer warrior. [applause] dad, who has traveled this nation preaching the gospel. [applause] two carly fiorina, who has been an incredible, phenomenal running mate. [applause]

what you have done, the movement you have started is extraordinary. i love each and everyone of you. beginning, i have said that i would continue on as long as there was a viable path to victory. say it, i'm sorry to appears that pack has been foreclosed. [ath -- path has been foreclosed. we gave it everything we got but the voters chose another path. with a heavy heart, but with down was optimism -- but

with the boundless optimism for the long-term future of our nation, we are suspending our campaign. , i am note now suspending our fight for liberty. [applause] i am not suspending our fight to defend the constitution. to defend the judeo-christian values that built america. [applause] our movement -- announcing toz his supporters that he is suspending his presidential bid because the path is no longer viable. let's get more with tim higgins in washington. john kasich is still in the race. what can we expect from him? : mathematically, he cannot

get enough delegates at this point. there are some questions about how long he will stay in. he wants to be the party candidate going into the convention but with ted cruz dropping out, it takes away a lot of the wind in the sails. you would have to imagine donald trump will be the republican party candidate for president against most likely hillary clinton. this is a remarkable turn of events from last summer when it donald trump announced and it was not taken seriously. at that point, we thought jeb , brother of former president, son of former president, would be the presumptive nominee. his campaign barely made it past new hampshire. rubio fell to donald trump as well because he ran a campaign fueled with populist sentiment. angie: will the republican party

stand united behind donald trump? there has been some serious fissures here. m: we have seen more of the republican party leadership ,ignal that a trump candidate they would support that. we have seen that in recent days. a sign they would rather have donald trump than hillary clinton as president. much forank you so that. ted cruz ending his presidential bid. plenty more to come. you are watching "firstup."

angie: voter turnout in indiana was extraordinary but not enough

for ted cruz and the stop trump campaign in indiana. donald trump did take indiana and that left ted cruz just announcing that he is a suspending his residential bid. 's loss means a is on his way to get the republican nomination . he is on track to win a 1237 delegates, making it mathematically almost impossible -- impossible for anyone to catch up. that is the latest and we're still waiting on that very close race between hillary clinton and forie sanders as they vie the primary delegates in indiana. ted cruz ending his presidential bid. .et's check in on markets

let's head to south korea. equities pareian back from yesterday's big gains after the rba unexpected 25 basis point cut. how strong in equities down .7 percent today. japan is closed. let's check out the yen, stabilizing near an 18 month high. again raising questions about whether or not the doj will choose to intervene and if so, when? let's bring in asia economics is theondent, what latest message we hear from officials? we had the governor out last night warning about the impact the higher young will the on the economy and

impact on the exchange rate. the decisionr with not to move last week. maybe the doj has -- boj has taken the tax loopholes to get the growth. i think there is a view they may be standing on the sidelines and waiting a few months. he is gearing up for the g-7 to make some kind of fiscal statement and of course they need to make a decision on the sales tax, whether to increase the sales tax. theview is that as we near g-7 and japan later this month, he will use that to win over the hawks. angie: the options are running out. what are the options left for japan? wast: part of the narrative

by not acting last week, they are almost signaling we cannot do anymore, which is dangerous for the central bank to do. they do have options. they can expand their assets, do more and the negative rate. course, we also know the government can do a lot more as for reforms. japan does have some ammunition left. the question is when will they use it and will it do enough? thank you. hong kong has frozen several accounts that may be linked to troubled malaysian state fund one mdb. toey may have been funneled logically connected individuals. these nations taking a closer look at one mdb and the fallout is here. do we know about this

latest twist? >> the funds being frozen belonged to people being investigated by authorities outside malaysia. we don't know who they are and it's unclear which hong kong authorities ordered the freezing of the accounts or if the banks themselves did it on their own. if you recall, some reports suggested a complaint was launched in hong kong. it have to do with deposits related to one mdb. there are multiple investigations happening. large numberzen a of accounts in connection with possible money laundering. they have already charged two men. probe is aaid the cross-border investigation. it is still unraveling. angie: is one mdb likely to be

an issue one malaysia's biggest state goes to the polls this weekend? >> that is what investors are waiting to see. the prime minister entangled in one mdb but who has been cleared by the attorney general, he has to there than 50 visits state since becoming prime minister, including twice last week. he promised billions of dollars to accelerate development in the state. is important. 31 seats in parliament, the highest among malaysian states. a stronger mandate could boost his political position amid all the trouble with one mdb and would go a long way to signal to investors that projects in the state will go ahead at least to the next general election. angie: thank you. still ahead, a korean supermarket chain takes action

against the maker of a toxic humidifier. details coming up. ♪

angie: it looks like donald trump will be the republican nominee as ted cruz ends his presidential bid in indianapolis. the new york times reported in moments ago, ted cruz confirming that was an audience that was

very disappointed. indiana was the largest cache of with 57 delegates. that number will go to donald trump. indianapolis was where ted cruz ended his presidential bid but to new york we go. that is where we are awaiting donald trump as he gets set to address. let's hear what he has to say about ted cruz and him likely going into the republican party primary and we will bring you the latest when he comes on stage when that happens. the stock exchange is just as dramatic. let's check in on what our reporters are watching with trading underway in asia. are you guys suspending any bids right now? who wants to call it? >> i will probably suspend my bid today.

as trump.fident this is our sad story. that boating disaster in brazil which killed 19 people and caused a lot of environmental damage. facing a $44 billion lawsuit filed by brazilian prosecutors, essentially freezing out a they havegreement signed with the state and federal government presided over by the president to pay 12 billion rireal. they apparently look at the horizon prices in terms of how to assess these damages. the s&p dow jones

replacing broad-spectrum in the asx 200 with this stock. i would expect people to be buying it up. 2.6, not bad. angie: this is also a very tragic story. is the british retailer facing a lot of for letting korea after some products were linked to respiratory illnesses and death. among those companies probed by also their, it is own in-house brand as well. they will be counted -- compensating victims. some pressure on the stock today. angie: those are the stocks to watch today. that is the verdict from the stock exchange. "hat is it for us "firstup today. the big surprise, we had just

been talking about it. almost certain donald trump will be the nominee for the republican party. suspendinglling out, his campaign. we will be getting reaction to that. we have got the us dry and budget from yesterday in focus. we will be talking about that with the australian finance 32ister joining us in about minutes from now. and last but not least, looking at this move by the yen as well. inwill look at that and more "trending business." ♪

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♪ rishaad: it is wednesday the fourth of may, this is "trending business." ♪ rishaad: we are going to go to washington dc, canberra, sydney, and singapore to look at what we are watching. it is all in for in indiana, ted cruz quitting the race after a lose to donald trump. that the mccracken race remains -- the democrat race remains too close to call. we have