i am shery ahn.come to "bloomberg best," a weekly look at the most important business news, analysis, and interviews from bloomberg television around the world. let's begin with a day by day review of the week's top headlines. on monday, trading resumed in china following the lunar new year holiday amid new concerns over the stability of the yuan. ♪ >> a day of dramatic headlines here with china dominating the news. the pboc governor broke his long silence. what did he say? what was significant about it? >> his message in and of itself, i would not say we officially knew. he said we are not engaged in competitive currency devaluation. he is expecting fluctuation in the yuan. but the fact that he said at all is quite interesting. it should have some clarity for investors. his key message out of it, that we are not going to push the currency down just to find restore export competitiveness. we do expect volatility along the way. especially against the moving u.s. dollar. we can only take him at his wor

i'm shery ahn.come to bloomberg best, a weekly look at the most important news and interviews from bloomberg television around the world. let's begin with a day by day review of the week passed k's headlines. new concerns of the yuan. >> what did he say, what was significant? >> the message in and of itself was not new. we are not engaged in the current evaluation -- evaluation. the fact that he said it at all -- the key message is we are not going to push the currency down. we do expect volatility along the way. there is essential message coming from china that is not about devaluation. >> that is what a lot of asset managers this morning said. the fact that he said anything was a sign of support. >> the senior economist in singapore is saying the report we got on the trade front, his assessment does not make sense to keep a strong currency. they would like a weaker one. shery: russia agreed to freeze energy production. >> we have an agreement to freeze production between saudi and other countries.

i am shery ahn.lcome to "bloomberg best," weekly look at the most aborted businesses, analysis, and interviews from bloomberg television around the world. let's begin with a day by day review of the week's top headlines. on monday, trading resumed in china following the lunar new year holiday amid new concerns over the stability of the yuan. a day of dramatic headlines with china dominating the news. the governor broke his long silence. what did he say. what was significant about it? >> i would not call it officially new. he said we are not engaged in competitive devaluation. but the fact that he said at all is quite interesting. he has got his key message out of it, that we are not going to push the currency down just to find export competitiveness. volatility along the way. we can only take him at his word, but there is a central message coming out of china that it is not about devaluation. shery: that is what a lot of asset managers said, the fact that he said anything at all was a sign of support

i am shery ahn.elcome to "bloomberg best," a weekly look at the most important business news analysis, and interviews from bloomberg television around the world. let's begin with a day by day review of the week's top headlines. on monday, trading resumed in china following the lunar new year holiday amid new concerns over the stability of the yuan. >> a day of dramatic headlines with china dominating the news. the governor broke his long silence. what did he say? what was significant about it? enda: i would not call it officially new. he said we are not engaged in competitive currency devaluation. but the fact that he said at all is quite interesting. it should have some clarity for investors. he has got his key message out of it, that we are not going to push the currency down just to find export competitiveness. we do expect volatility along the way. we can only take him at his word, but there is a central message coming out of china that it is not about competitive devaluation. shery: that is what

i am shery ahn.elcome to "bloomberg best," a weekly look at the most important business news , analysis, and interviews from bloomberg television around the world. let's begin with a day by day review of the week's top headlines. on monday, trading resumed in china following the lunar new year holiday amid new concerns over the stability of the yuan. >> a day of dramatic headlines with china dominating the news. the pboc governor broke his long silence. what did he say? what was significant about it? enda: i would not call it officially new. he said we are not engaged in competitive currency devaluation. but the fact that he said at all is quite interesting. it should have some clarity for investors. he has got his key message out of it, that we are not going to push the currency down just to find restore export competitiveness. we do expect volatility along the way. we can only take him at his word, but there is a central message coming out of china that it is not about competitive devaluation. sher

i am shery ahn.been a week of controversial conversations on bloomberg television. bernie sanders describes his ideal supreme justice. minnesota fed president neel kashkari explains why he is open to breaking up the biggest u.s. banks. let's begin at the nba all-star weekend where stephanie ruhle went one-on-one with dallas mavericks owner and noted tech disruptor mark cuban. mark: in silicon valley, they are in their own little world. they have insulated themselves, they have lost touch with reality. you've got kids, because they graduate from this school or that school with an idea that they get an $8 million valuation, they raised $2 million, keep 75% of the company -- it is ridiculous. i have been saying it for a long time. stephanie: what is going to happen? mark: they are getting written down to nothing. a lot of them are going out of business. literally, if you invest in 95% of the silicon valley's that are coming out or have come out in the last year, the minute you write that check and it cl

i am shery ahn.s week, the singapore airshow brought together the biggest players in the aviation industry from top airline executives to manufacturing ceo's. my colleagues has haslinda amin and stephen engle were there to cover it from every angle. haslinda: airlines enjoyed the most profitable year in 2015, and expect further gains. tony tyler joins us this morning. such optimism, tony. tony: we are forecasting airline profits globally for the morning. it is up 33 billion dollars over last year. that forecast was made last december, and we will be updating it in june. a lot will happen between december and june. the fuel price coming down as a large part to play in that. haslinda: china is going down. why isn't china a risk to the aviation sector? tony: you are right, china's economy is slowing down, although air travel is not slowing so much because the economy is reshaping itself, restructuring itself, and consumers are spending a bit more, and they are spending on travel. so we are not seeing it

shery ahn has been looking at this. shery: the prospects of currency intervention is becoming more and more real. the yen is currently at the strongest level since the aggressive easing by the boj in october of 2014. this is a real problem for japan. it threatened to derail the bank's entire scheme. now hsbc is saying that the prospect of the boj's stepping in directly to sell yen or cutting interest rates is a risk and the market have to remain mindful of that intervention. we have morgan stanley bank of america talking about this. they say that authorities are likely to limit themselves to sounding off warnings to investors instead of an actual currency intervention. the yen surge has caught many by surprise. morgan stanley made the right call, predicting the yen would climb this year. they failed to predict how much it would advance. 150 saw a climb to almost per. -- 100 15 per dollar and now it is around 112. the boj adopting negative interest rates did weaken the yen, but only briefly. a boj intervention would be bi

shery ahn is all over this. what is going on? shery: the ever-present specter of china's debt overhang is expected to keep getting worse. seven out of 12 economist see the debt to gdp ratio increasing through 2019. at 283%ect debt to peek of gdp. policymakers are facing the delicate balancing act between keeping credit flowing to ensure average economic growth of around 6.5%, but not too fast to trigger a credit blowout. last week, a report showed that banks extended a record $385 billion of new loans in january. according to nomura holdings, about 40% of those loans go to state owned enterprises, which only contribute around 10% of china's economic output. their debt has jumped to 62% from 55% since 2007. private companies seem to be doing a better job managing their debt. they have cut the ratio. goldman sachs says it is impossible to identify a specific debt to gdp level that will tip the chinese economy into financial crisis. but china's increase of debt is among the highest in recent history and every major country with rapid

shery ahn is standing by. real compounding of yesterday's off day, run us through the asian session so far. shery: good morning, manus. look at my map, just completely in the red. a little bit empty because we are seeing china, taiwan, korea celebrating the lunar year holiday. but the market did trade today, down. headed for a consecutive day of losses, you did mention earlier extending the yen much higher. 2.7%,at gives stocks down on his worst two-day slump since that huge earthquake back in 2011. australia in their territory now, down 1.2%, the lowest level since july of 2013. and we saw singapore coming back from their lunar new year holiday to join the selloff. very muchrse, today focused on janet yellen's testimony before the u.s. congress. take a look at the yen. it strengthened all week, now trading at half a percent, pass that ¥150 level. the worry that this rally might j'sually hurt the bo efforts to rally inflation, even after the negative deposit rates. look at what that is doing to the banks in jap

we have shery ahn taken a look ahead to the speech. what will be the focus today? investors looking three key points here, the deficit, but also the allocation for infrastructure spending as well as banks are capitalization. most of all, it will be about shrinking the fiscal deficit. which is already among asia's largest. the deficit right now, the aim is to shrink it by 0.4%, the next fiscal year, 3.5 percent gdp, but eventually targeting a 3% of gdp deficit by march of 2018. now, we are hearing from the finance minister or at least his advisers, is that this might be tough because india is still has to face some scheduled a increase for employees, not to mention infrastructure spending. this team of advisers, they say that we might see the deficit to zero point.2% three percentage points of gdp each year over the next five years. that could be more feasible, but that would be taking the gap to 3% of gdp only by march 2021, instead of 2018. angie: discontent has been rising in rural india. what are they expected to do to address that? shery ahn: right now the prob

here is shery ahn. mccoury falling in sydney trading. forecast.ut their profits for these two businesses for the year ending in march were expected to be flat compared to last year. they are expected to all. gains, but trading slowing in the final time. they are expected to post $1.5 profit.net a declining australian dollar expected to help as the company got 71% of its income in the first half from overseas. an announcement on the future of shark could be delayed. sources tell us they are split over whether to make a decision rescueetween competing plans. several directors think they should spend more time considering a bailout offer. a chairman met a sharp board member to make his $5.6for a raised bed of million. though the taiwanese company is offering more money, sharp is withned to take the deal another company. a deal would allow sharp to keep their technology within japan and cooperate more closely with domestic companies. the bank of japan's negative interest rate could fall to as low as -1%. says there is nor for negative rates

i am shery ahn. the past two weeks have been interesting times for investors in japan.wingsseeing the wildest in years. david is here to break that down for us. david: a lot of this comes down to the surge in risk aversion from the start of the year. ago,recently, two weeks this aggressive stance coming from the boj, and how much more is it willing and able to reach its objectives? have a look at this. this is the neck a - nikkei vix index. it is up 110% from the start of this year. that is the 40 level. it takes it all the way back to the days following the massive earthquake in 2011. if imax out my chart, that is a 15-year look. this is the global financial crisis. the quake was in 2013. that was another move. these are unprecedented levels to some extent. we haven't seen these swings in years. at this in another way. have a look at this. nikkei 225,n the this is a fairly simple chart, but it's not. it measures the daily change on a closing basis of the nikkei 225. you have the 5% limit. down here, negative 5%. this is an index that is not supposed to move this much.

we are joined by shery ahn making headlines in -- with the stories making headlines in asia.that began on tuesday has spread. earlier, shares in europe declined after china's central bank unexpectedly weakened its currency reference rate. airbag humbled may have been caused by design issues. they find that they rupture because moisture has seeped into the inflator's. the watchdog is expanding its investigation to include all to airbags.gs -- takata the takeover battle for sharp has been going on for six months . the board is expected to make its decision within two days. plans to sell a stake to a chinese investor fell apart after it came under review. the deal would of seen their injecting $120g, billion into western digital. the roadblocks that chinese firms are encountering as they seek access to computing know-how. emily girl what is becoming -- emily: why is it becoming more difficult? faced aney have increasing number of reviews in chineseears because interest and u.s. technology has drawn fire from lawmakers worried about risks to national security. this highlights the

i am shery ahn. after months of tour more -- of turmoil, new moves in malaysia.shaad: the latest after this. ♪ angie: the prime minister of malaysia has tightened his grip on power suspending the second in command of his ruling party. correspondent -- let us bring in our correspondent. how is the story here? was deputysuspended prime minister before he was .ired he has been suspended for "undermining the party and the constitution." about two hours before making that call, as you know, muh for -- to calling step down. he is chairman of the fun. there are questions about local donations, money trails, to his personal bank account. najib has removed all that have spoken out against them. his attorney general appointed by the government found no criminal offense. what about recent developments. how secure is najib? has: does seem like najib estes position -- has coalesced his position. critics have been silenced. he is stronger than before. we are going to get the latest for you on japan's reopening after the short break. stay with us, you are watching asia eddge. >

ii'm shery ahn, and this is "trending business." here is what we are watching this morning.s are down, paring -- weakest rate rally biggest weekly rally since december 2011. the yen is strengthening. apple's support. twitter's boss takes a stand against fbi hackers. dac -- jack dorsey tweeted his banks for 10 cook's leadership. and progress at a crucial summer -- crucial summit that might determine britain's future. what youet us know think of today's top stories by , andwing me on twitter don't forget to include the hashtag #trendingbusiness. indonesia is going underway, but most of asia is feeling the downward pressure. here is heidi with a look at that. reporter: that's right. this is not how we want to finish off a stellar week for asian markets. take a look at where we are sitting now. we really have quite a bit of downside coming through. in particular for japan. the nikkei 225 is down by

i am shery ahn, and this is "trending business." ♪ shery: here is what we are watching this morning. ground -- asian markets rally from their lowest in three years with tokyo rising more than 5%. china falls on its return to trade. japan disappoints as the economy contracts even more than expected. three years in, has the prime minister failed? winsn calling -- the u.k. a clash with hsbc deciding to stay put. chairman douglas flint says asia remains at the heart of strategy. let us know what you think of the top stories by following me on twitter. don't forget to include #trendingbusiness. trading in indonesia is underway, but a focused today on china as they return after that week long holiday. how is it looking? the chinese markets are doing their own thing in the worst possible way, playing catch-up after being off on the china new year's break. straight to the downside. shanghai's decline in over 2% at the moment. elsewhere, we are seeing a rally from southeast asia, it being led by japanese markets. . tumble of over 11% last week we are clawing back some of that this week. finan

angie: if you keep talking -- wrap up right now, shery ahn is the winner. we call that a time. slept in right after i said that. -- slipped in right after i said that. angie: you are all winners to me. that is the verdict from the stock exchange. that is it for "first up." what is going up? scope, paul blue o'malley will be joining us. we are actually 40 minutes. a company which has been cutting costs quite aggressively and managing to double their profits. i will see what the prospects are, and steve rice is looking ahead. looking at the state effectively of japan and asking whether economics are trailing, and looking ahead to the week with the head start coming up in 50 minutes from now. business" in the next two hours. ♪ 22ndad: it is monday, the of february. i'm rishaad salamat and this is "trending business." we've been popping over to singapore and turkey. here is what we are watching. economists calling china's borrowing binge the worst in years. goldman sachs already saying this could trigger a new financial crisis. food prices up slightly after nigeria said it will bac

i am shery ahn and this is "trending business." we will be live in singapore, sydney and tokyo. we are watching this morning. oil makes a headline today with saudi arabia and russia set to meet to discuss prices and production. hase is back above $30, but -- down about 17%. ready to dig deep to support

powered by over 2400 journalists in 150 bureaus around the world, this is bloomberg news, i'm shery ahnaad: next, more bad headlines from malaysia's troubled one in bb funds. what they say, billions of dollars has been misappropriated. if the details coming in next. ♪ ♪ there is renewed pressure on malaysian authorities over the investment and investigation say that about $4 billion may have been misappropriated. prosecutors in e-cig and further information from malaysia. hopefully they cleared out some of the suspicions around it. what have the swiss accused here? >> authorities issued a statement saying that they revealed serious indications of about $4 billion may have been misappropriated from companies in malaysia. the state knows quite long but he did say that the four cases came to light involving allegations of criminal conduct between 2009-2013. and a small amount of funds made been transferred into the bank accounts of former malaysian public officials. this was attorney general asked malaysia for legal assistance saying, today, the malaysian companies have made a -- comment o

i am shery ahn and this is "trending business." we will be live in singapore, sydney and tokyo. first, here is what we are watching this morning. oil makes a headline today with saudi arabia and russia set to meet to discuss prices and production. hase is back above $30, but -- down about 17%. ready to dig deep to support stock, announcing a buyback worth almost $4.5 billion. shares jumped the most in seven years. singapore airshow, with the future of asian air travel and the cream of the aviation world in attendance, we are live at the airport. let us know what you think about that top stories by following me on twitter. don't forget to include #trending business. breaking news out of south korea, the central bank has kept its key interest rates on hold at a record low of 1.5%. that is after cutting four times since 2014. surveyed werests not expecting a cut, however in ars have been pricing rate cut very soon after japan adopted a negative interest rate, which kicks off today. again, the central bank of korea keeping rates on hold at a record low of 1.5%. let's take a quick lo