the trial of the man who used to run the chinese insurance and finance giant anbang has begun in shanghaid injune on charges of "economic crimes." more details of the allegatons are expected to emerge during the trial. anbang is known abroad for its aggressive international acquisitions including new york's landmark waldorf astoria hotel. the government took control of the company in february. a quick look at financial markets. the big losers, tech stocks, down heavily. a big loser is panasonic. it helps make batteries for it helps make tesla. shares in tokyo down almost 6%. the government has announced it wants to introduce a deposit scheme on drinks containers in england. ministers hope the proposal, which could come into force by the end of the year, will cut plastic waste and increase recycling. a similar scheme is already running in norway. our environment analyst, roger harrabin, has all the details. here is a global problem, plastic everywhere in the oceans. the amount of floating garbage could triple if we do not hold the flow. here is the uk's answer. a deposit return scheme whic

thatld argue or suggest most investors don't have much of a need -- of anbang edge -- of an edge. in these hours, euro-dollar is trading now at 12397. it is perilously close to very significant a little. cameron: the 200 month moving average has been superb -- a superb pit -- superb pipit -- pivot over the last 15 years. it has been quite a bit of a boom. it is a 1.2470. the art human being if we close below that and below the hundred month moving average, that would a pretty powerful technical signal that we are now morphing into a more secular, broad-based longer-term rally for the euro. vonnie: thank you. wonderful comments and columns. global macro strategist for bloomberg. let's get the first word news coming here is taylor riggs. taylor: a top russian officials as moscow is valid to retaliate from the announcement by the united states that it is expelling 60 russian diplomats in response to the nerve attack on a former spy in the u.k.. the minister told the russian state news agency that his country was disappointed by what he calls the united dates's irresponsible behavior

in the past, companies making big acquisitions the way anbang was we re big acquisitions the way anbang government is really using the trial of wu xiaohui and the public takeover and shaming of anbang to signal to other chinese companies that the era of financial stability is here. that's what beijing wants to emphasise. in new york, google's self—driving unit waymo has launched its new jaguar, which is billed as the first "premium" autonomous car. waymo's chief executive has been talking to our north america technology correspondent dave lee. our focus has always been on safety, it is how we founded the project nine years ago at google as a self driving car project and we've driven 5 million miles autonomously on public roads in the us, testing in 25 different cities, we have exercised the software in over £5 billion of situations. the perception of self driving took a hit with the uber incident. we'll have to see. ourjob is to get out and to be as transparent as we can with our technology. last fall we published a a0 page safety report to explain all aspects of safety. it is ourfoundi

and the trial of the man who used to run the chinese insurance and finance giant anbang has begun ini. wu xiaohui was detained injune on charges of "economic crimes". more details of the allegatons are expected to emerge during the trial. anbang is known abroad for its aggressive international acquisitions including new york's landmark waldorf astoria hotel. the government took control of the company in february. let's look at how financial markets have been faring in the last 2a hours. it has been quite a week. we did warn you yesterday on this programme that it could be extremely volatile, and it is. looking at japan, closing i.3%, but during the day it was down over 2%. one of the big losers was panasonic, it helped to make the batteries for tesla vehicles, its shares down some 6%. the dowjones behind me in the states having a tough session. let's look at europe. europe was up strongly yesterday, but today it is following the leave from asia and wall street the night before, and among the big losers in the states is nvidia which makes the technology for driverless cars, and tesla

what can we learn from the crackdown on anbang?t anbang moment is interesting, because the company got way out over its skis and the state has stepped in and taken control of it. there is other conglomerates in china that all eyes are on them to see how the state reacts to them now. this is really a moment of that stability. , which is sort of what the world sees in him and the chinese see in him, this is an example of how this is playing out. does this mean for the relationship with the president of the united states and u.s. administration? does it change the relationship with the united states, given the ongoing discussions, tensions? joel: the takeaway is that china has a much longer trajectory. ,hey think in centuries decades, centuries, millennia to some extent. in the u.s., we think in four-year election cycles. their trajectory is a much longer trajectory, which to some extent provides advantages. julia: do you think it buys xi jinping some latitude to negotiate on the economic front if he wants to give something away as fa

last month, the government took control of the fast—growing chinese insurance group, anbang, overfears meanwhile, china faces other threats — us president donald trump has called for a better trade deal with the china, and announced a 25% tariff on imports of steel and a 10% tariff on aluminium. with me is dr yujie, head of china foresight, lse ideas. thank you for coming in. what you make of his today, which was extremely high profile, and there is also this issue of him being now president for life. explain how that works and what you made of his speech, his message to those listening in china and outside?” think the message is very clear. he is trying to say everything must change and therefore everything keep the same. that is the key argument for him. he is a safe pair of hands and that is what he is trying to do. he also tried to tell the foreigners or even the westerners only the chinese themselves how to resolve the problem with the economic slowdown. there is a mixed message and he is trying to give. he is trying to justify himself, why he has to stay in power. that is the key

anbang is in the process of selling assets. it makes it a good time for international inc.es to increase the amount of inbound m&a in china, but out bound has been suffering. matt: sarah syed from our deals desk out of berlin today. if you are a terminal subscriber, you can check out the newest and latest m&a news on the bloomberg. remember. if you are a bloomberg customer, you can watch the show using tv and you can click on a link to ask us go question -- asked us a question or message me directly. bloomberg.net on the terminal. we are going to continue covering all of this trade news and more. its effects on equity markets. we have been open for 48 minutes and we are mildly up across the board in europe. this is bloomberg. ♪ matt: welcome back to "bloomberg markets european open." i am matt miller here in london. guy johnson is off this week. i want to do a little bit of shameless plug here. later this afternoon, i will be interviewing the cfo of volkswagen. we have been talking to this company a lot lately. very interesting because of all of the issues surroun

last month, the government took control of the fast—growing chinese insurance group anbang over fearshile, china faces other threats — us president donald trump has called for a better trade deal with china, and announced a 25% tariff on imports of steel and a 10% tariff on aluminium. with me isjinny yan, chief china economist at icbc standard bank. nice to see you again. i know you listened to the speeches today, it was not just listened to the speeches today, it was notjust president xi but also the premier, they both are quite interesting things to say. give us your take? i think it was very revealing. first of all, with a new set of ministers in place already announced over the weekend, the speeches really unveiled what china is focusing on going forward. for me, what is really interesting is the fact that the focus is not just on how china is going to steady and grow its economy, it is very much shifted on reining in the risks and also how to deal with international relations. i think as you see from the key ministerial posts announced, it is very interesting to see that these pe

we saw it happen with anbang insurance.s stage much the same for ping an because their focus is on long-term products. the broader industry, the latest move from regulators disciplined the whole sector. what it does is essentially force life insurance companies to focus on protection and investment in longer-term assets instead of short-term stock gains. some companies offer policies like anbang insurance. they are forced to invest aggressively to achieve yield a can pay back to the policyholders. peers,g an and their they are after protection in critical illness, areas where the government wants the insurance companies to help the society. what are the implications or synergies now that they will be under one regulator, insurance and the banking sector? that aview is that with lot of the insurance companies actually have substantial stakes in banks. an, 57 percentng owned subsidiary and a bank and china life has a stake in another bank, so what it does mean is that also the sales channel would be better improved . in the m

the former chairman of anbang insurance has gone on trial accused of $10 million fraud.d to have doctored financial statements and use the money on himself. authorities in shanghai alleged wrongdoing dating back all the way to 2007. getting some more lines from the ministry of commerce briefing taking place in beijing. china saying they will not take place in any unilateral negotiations, saying they have opened negotiations and they have their own principles. they said that u.s. tariffs are typical protectionism and set a bad precedent. a tradeis warning about war. they say that could derail the global economy. a nonexecutive chairman of the mining company irc, which operates in russia's far east and the northeast of china. we've seen poor reactions to the possibility of a trade war. is this something that is top of mind for you? >> i think you have seen an impact to currencies, but you --en't seen an impact to steel production, two huge deals this week. one, very large underground operation, and another operation, both league producing millions of tons of coal. very hea

what would anbang -- what would an exit look like?y are not going to exit investment banking, period. they are looking at businesses where they can invest more, so it is going to be a decision. they are looking at each unit separately and trying to figure out whether it is worth investing. off, but theyh it will not pull back from investment banking. they will still have a fixed income trading unit, they will still have an equities trading unit. unitsn units within those may face scrutiny now. it will potentially be pushed off over the coming weeks. vonnie: steven arons, thank you for that. -- is upbank is about about 610 some 1% in the u.s. here is a picture for the dow. the s&p and -- s&p 500 and nasdaq. nothing huge yet, the dow is up 2/10 of 1%. the s&p erasing gains of the day, down one point. franklin resources are the worst performers. the nasdaq is down about one half of a percent. tech companies under pressure and the stoxx 600 in europe is holding onto a gain. this is bloomberg. ♪ correct ♪ -- ♪ vonnie: this is "bloomberg ma

andrew: the state to go over one of its largest insurance companies, anbang.cation there is not a lot of freedom. the banks have been struggling for a decade to get in there, and they are not having much success. they are pushing a whole semiconductor, state run semiconductor plan, so i think it is the opposite. yvonne: there is a lot that they are trying to overpromise. you know,rying to -- they are not deleveraging the economy, but it seems they are trying to. they want to cut taxes as well. at some point, something has to give. he can't really do all of those things and achieve around 6.5%. what is going to be the thing that has to give, the fiscal side of the monetary side? andrew: the task at its very interesting because a lot of taxes are collected locally. if beijing says we are cutting taxes, they may turn to the province and say we are cutting taxes. good luck getting revenue. we don't know how that will be split yet. i just found out from my asearch analyst that there is province where there is a $100 million fault with p2p lending was one group that

anbang insurance seeing policy redemptions stabilize after a surge in the days following its seizurethe government. we are told policyholders rushed to redeem after the announcement on february 23, but the balance or pace of redemption has fallen back to normal levels. confidence is key for the government as it tries to stabilize the $316 billion in sure. hopes of cementing its position in the united states has been hit on security grounds. best buy will not order any more smartphones until current inventory runs out. other companies are viewed with suspicion by washington. the trump administration and others say the products pose a threat to national security. a full-year operating profit falling to present short of the average analyst estimate, however, net profit of $97 million was the companies highest since 2010. the result demonstrates its drive to optimize existing operations and investing in future growth drivers across pc and other business. coming up, more central-bank action. ♪ >> i am paul allen with the first word headlines. 0.25 of aised rates point. the chairman noted

levy fines and the crescendo of this was when their regulators took over the insurance conglomerate anbang. that is a new layer of ballast to the damn. betterpe they will have oversight of the risks. anna: what does this mean for investors? tom: jpmorgan and goldman sachs, we speak to them and they said they are keen to get a bigger foothold and china has said that the joint venture structures that they have to have in china well be changed so they can have majority ownership. what we have not had his clarity in terms of how that process unfolds and win. now that the regulatory picture is becoming somewhat clearer, and he that time tuple becomes apparent for the foreign financial institutions and you can look at the bond markets. the crackdown on risk will stay the same if not be ramped up as a result and we have heard hints from the pboc that monetary policies will be tighter this year. there may be a bit more treasure on bond markets and in terms of the banks, the smaller banks have felt the pain over the last 12 to 24 months as part of the crackdown. the larger banks have fared ok becau

he has had a role in trying to curb overseas buying of assets by the likes of anbang and fosun.ove on to jiang chaoliang. hobs the secretary of province, almost asei populace as italy. in fact, he oversaw what was at the time the biggest corporate bankruptcy in chinese history. he also served as an assistant governor for the pboc. he has a wealth of experience. the other potential candidate is liu he, who is seen as the present -- seen as the brain behind president xi's attempts. he is likely to become vice premier. if he was given the pboc post, that would be seen as a further elevation for the central bank. some analysts said it would be too much for liu he to handle, the size and scope of that portfolio. and then yi gang is the deputy governor. numberhou xiaochuan's two. it would be seen as a 's policiesn of zhou and stability. yi gang is also one to watch. and outside contender is xie fuzhan, currently the party secretary of conan province -- hunan province. some challenges around that, financial risk, and moves toward liberating the yuan. betty: a great rundown of who are s

regulator in china, has taken an aggressive stance on shadow banking, and pressuring conglomerates like anbanglending to them. he was also formerly the deputy governor of the pboc. he will bring rich experience to the role, should he get the nomination. he is in the mix, as is jiang chaoliang. he was head of the hobei province. and, he oversaw one of the biggest corporate bankruptcies in china's history at the time. he has both political and financial experience, that is jiang chaoliang. moving on, liu he, the top economic adviser to president xi. a top role overseeing businesses and financial affairs here in china, he may get the pboc had role as well. there are some doubts from some as to whether or not it would be a fun move to give so much responsibility to liu he. he is very well respected and has a strong ties to international and economic cheeks. then there is yi gang, deputy governor of the bank of china. he would likely soothe any nerves around investors, probably a continuation of possibilities put in place by zhou xiaochuan. he speaks fluent english and is pretty well-connected to e

right now you have a situation with anbang and they will have to get rid of assets.ed in those assets? sam: those are not chinese assets. those are u.s. assets bought by chinese companies in over leveraging. i and any buyer or owner of real estate in the u.s. would look at what they bought and consider it. david: are you looking at it now? sam: sure, but we look at everything. alix: what assets are most attractive? sam: all assets look attractive. alix: come on now. sam: it's like which women you know are good looking. women are all good-looking. alix: which ones are more or less appealing? you don't date everybody. [laughter] sam: but you try. [laughter] it's getting bad, isn't it? david: we are so far off the rails. alix: seriously, which assets are tractive? sam: the answer is that they own some office buildings in manhattan. they own some office buildings in chicago, minneapolis. some of them are better than others. some of them are very well located. obviously the question is can they afford to sell them at whatever today's market price is? they bought them at t

we know he met with anbang, which owns the waldorfs astoria.xplain why the needs of jared kushner, why does that pose a national security risk? >> well, because you may be trading on government information, government intelligence. we don't know whose side you may be trading it for. you may be an agent of a foreign power or using classified information for your own enrichment. he met with the director of veb bank, known as the bank of spies, run by an ex-kgb officer. went to them for money without telling anyone. when you go out and reach out to oshgizati organizations like that, then the chinese, qataris, united arab embrats while supposedly an official working for the united states government every one of those governments can now blackmail you. >> we know that jared kushner among his portfolio were these business roundtables, trying to meet with executives. we know from the "new york times" that both citi group and this apollo investment entity met with jared kushner and then bank loans were forthcoming. we know the co-founder of apollo glob

which offered an unprecedented glimpse into anbang's innerworkings, alleged wrongdoing going back to007. wu said he did not understand the law and did not know his behavior amounted to crime. softbank has announced a plan to create the world's largest solar project in saudi arabia. ÷ will contribute an initial $1 billion. the ceo says a total of 200 gigawatts of power will be available by 2030. that is your bloomberg business flash. ♪ julia: thank you for that. traders digesting yesterday's late plunge in the market. bank stocks suffering the worst day in 2 years -- 3 years. sell off.a late day are investors hitting the panic button and will be an excuse to move away from the investments we have seen. we have our correspondence -- our experts here with us. excuse orloff an reason? >> i think there is more noise of an signal. thinking from the protective of a best perspective and criminal passive investor, you have to think about where we are --thinking from the perspective area investment, we are still looking at above trend growth for 2018. move but it ishe still supported. you look

anbang is a company that you may points to went discussing this, they were an insurance conglomeratehich did things like issuing a high-yielding short-term insurance all a seat products. using that money to i -- to purchase things overseas. so you have the banking insurance regulators, you have the pboc getting more additional tools in its toolbox, and you also have the environmental industry, another key priority for president xi jinping and his team, tackling environmental pollution. we will also see effort to combine some roles in commerce and forward industries as well. that ind be pointed out december of last year, china set up a open what financial stability development committee." -- at the acronym is fsbd which would oversee a number of these agents these. controlledobably be by the top economic advisor to president xi jinping. so, these are just some big changes to the regulatory industry here in china. yvonne: thank you for breaking that down for us, tom. it will have huge of a vacation for the business world and for the market. thank you, tom. still ahead, the latest out o

the charges in court statements offered an unprecedented look into bank -- anbang's innerworkings.g he didn't understand the loss and didn't know his behavior amounts to crime. facebook has decided not to unveil new home products at the major developer conference in may. that is in part because the public is still outraged about the social network's data privacy practices. they say the new hardware products with connected speakers and digital assistants and video chat capabilities are undergoing ure they make the right trade-offs regarding user data. a facebook spokeswoman declined to comment. that is your bloomberg business flash. tom: thank you so much. we have just in the last you moments two tweets from the president of the united states on the koreas. we talked to peter paige and -- earlier. in seoul this is the first of the two tweets, see what you can do to get the second done as well. for years and through many administrations everyone said that peace and denuclearization of the korean pencil or was not even a small possibility and now there is a good chance that kim jong-u

aggressive push against shadow banking and against some of those highly inquisitive conglomerates like anbang of the newly merged banking and a source and now he has this very powerful post atop the pboc as the party secretary. both of these men will be reporting to the vice premier in charge of economic and financial affairs. those are the three big beasts to watch when it comes to china's culture and financial stocks. rishaad: tom mackenzie there. we will have more on trade tensions during the course of the show and have a look at asian analytics. we will look at the market of occasions there. >> we will get more on over being grabbed and southeast asia. this is breaking news at the top of the hour. over is selling it southeast asian assets. including over each to grab her. attrition overf again for over and access provision. perhaps a victory for softbank, clearly the backers of both over and that ride-hailing space. we will talk about the indications for competition for ride-hailing across this region. as is bloomberg. -- this is bloomberg. ♪ ♪ towarda has been moving the message be drive