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tv   Trending Business  Bloomberg  March 10, 2016 9:00pm-10:01pm EST

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most since november. , $1 billion of debt. the finance ministers has banks are taking actions to recover their money. ,ollow me on twitter @rishaadtv #trendingbusiness as well. it is a bit of a turnaround in hong kong. here is shery. shanghai composite down 3/10 of a percent, falling for the third consecutive day, headed for a weekly loss. turning around a bit, but weakening all week. nikkei 225 reversing yesterday's rebound. utilities, financials leading the decline. toapanese court ordered
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nuclear reactor shutdown, feeling the pressure. electronics, the heaviest weighted stock in the ospi, gaining as shareholders me today. new zealand, a rate cut keeprday, failing to stocks gaining at the moment. that they take a look at the pboc raised the daily fixing rate the most in four months. we are seeing the currency gaining to 10 of 1%, also seeing offshore yuan higher. let me take you through the euro as well, some interesting moves there after the ecb release that
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jumplus package, a big after mario draghi said he was anticipating normal rate cuts. stilld: right, markets feeling it after the ecb's stimulus package failed to boost confidence, moving rates into subzero territory, trying to reassure his guardians that he has ammunition to flight low rowth.ion and we g >> as people observed, he was wearing his blue whatever-it-takes tie. majors,s all three expansion of the qe program by billion per month, also by scope, including corporate bonds as well. that was a shock. a series of targeted long-term financing operations, given the reference rate is the negative
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deposit rate, essentially the banks will be paid by the ecb to take on these loans as long as they can transmit it. rishaad: can it work? >> there has been so much criticism about the efficacy of unconventional monetary policy. rishaad: we are in uncharted waters essentially. >> that's right. critics are saying at best we at worstw if it works, we don't know what the long-term ramifications are. mario draghi saying he had the full support of the governing council pushing ahead with these measures. there is a sense he is stuck between a rock and a hard place. everyone saying we have to do more on the fiscal spending side, structural reform sign. a number of countries have little room to move in terms of what they can do in terms of fiscal spending. at that a detailed look
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story throughout the show. we want your opinion. twitter is your opinion @rishaadtv, include #trendingbusiness as well. in theeek for interest chinese economy. the pboc laying out its latest policies. , it'sstart with the data the weekend, and were getting quite a lot. >> there is. it comes after a lull. the chinese new year moves they tried to put these readings together. we have not seen a good reliable gauge across the economy for some time, so this will make it all the more important. it will not be pretty on the factory front, expecting a decline to 5.6% growth for those two months, that we can start to a year since 2009.
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on the investment front, anticipating a decline to 9.3%. that is the weakest pace registered since 2000, so a huge slowdown there. the one bright spot is retail, expecting an 11% gain year on year. the pboc gone awol for quite a while, now dominating tv sets. pboc governor, what is the expected to say? >> he will speak at 10:00 a.m. with his deputies. we anticipate he would hold the party line on the currency. he and other officials and deputies have been saying that there is no basis for sustained yuan depreciation. a week yuan feels capital outflows, not good news. we anticipate more verbal support for a steady, stable yuan.
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is it pegged against the basket or u.s. dollar, still some confusion. he may still try to clear that up. they have noted a slight move to improve communication, for guidance or not is debatable, but we might get more clues on the policy side. rishaad: thank you. having a look at some other stories making headlines. back-and-forth between apple and the u.s. government, david. david: let's talk about the latest. the u.s. justice department has again come back, basically underscoring the legality of forcing the company to unlock that specific iphone. they said it was legal, describing apple counter argument as misleading. , apple has been
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saying that complying with the order would open up the possibility of foreign governments coming to apple at some point in the future to make similar requests. the boj's response to that, apple helped china last year, complying with three quarters of china's requests in the first half of 2015. apple responded, and this is what their counsel had to say. these comments on china were ridiculous and these claims were deeply offensive. no other government except the united states has asked for a backdoor. days,g with apple, in 10 march 21, apple has said that date to introduce an updated iphone, perhaps a smaller screen, and a new smaller screened ipad. the follow that on bloomberg,
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the ticker and hit go for the latest news. samsung,n theme, shareholders voting on proposals to split the role of the ceo and chairman to improve corporate governance. for the first time in its corporate history the chairman's rolet samsung will be held by someone other than the ceo -- chairman's role will be held by someone other than the ceo at samson. most recent earnings report back in january shows profits missed forecast i-40 percent. -- by 40%. smartphones,cross memory chips, expected to remain anrs, and some case
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oversupply situation will persist, alluding to pressure that manufactures may need to keep prices competitive. linese do get significant out of the meeting, we will get them to you as soon as they can. , bit of a about oil terror of flight, all this talk -- bit of a tear of late. prices,ut a floor on three-four weeks back, and since then prices have continued to rebound on the rhetoric. part, thethe tricky meeting itself. this coalition of oil producers can't seem to agree on a time nor a place for talks. several dates and locations have been suggested, this month, next month, moscow, vienna. well, each option probably shut down by the other. adweek, another setback when
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gathering of latin american producers, scheduled to take place today in ecuador, pushed back. there was another obstacle of iran, getting the country on board, which looks unlikely. iran had called this proposal to freeze output ridiculous. a lot of things have to align there, and the risk is markets run out of patience. freezing is not the same as cutting output. even at the freeze is agreed on, it does not solve the massive oversupply situation in the oil market, at least near term. rishaad: ok coming up, a beer baron under attack in the indian
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parliament. the global head of sovereign ratings joining us right after this. ♪
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it was only last week that moody's cut china's credit outlook to negative. it reaffirmed the outlook for the country. let's look at the global state of play with james mccormick. he is with me now. thank you for joining us. let's start off with the big picture. you're saying world growth is over a barrel. when you mean by that? >> it is a reference to the oil story. low relative to where it has been in recent years, so a number ratings under obvious pressure due to lower commodity prices. the combination of lower prices
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and stronger dollar, these two are related, have been historically. africa, latin america, hence the reference to the barrel. rishaad: a low oil price greases the wheels of the global economy , almost like an interest rate cut. why don't you buy into that? >> we do. ,ome countries are, some not the ones that are, asia, u.s. -- well, the u.s. is a bit of a mixed picture, some strengths, weaknesses. it is an oil producer. rishaad: so many stresses and strains as you mentioned. one thing is for certain, imf, ,orld bank, global bodies reducing forecasts on.'s countries across the world when it comes to growth.
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are you doing the same thing, and where? >> pretty much across the board. the one region where we have not brought the growth numbers down is europe, surprisingly. they were low already. 1.5%rowth rates in europe, to 2%. rishaad: that is optimistic. >> may be, but we have not changed of those a lot in the last year. we had been bringing them down recently. growth rate is now 2.1%, lower than we had before. china growth rate is 6.2%, but maybe some upward risk to that growth number. yeah, thest part, forecasts have been coming down, not up. rishaad: no global recession this year? >> it is difficult to get a global recession. a growth recession, use a lot of different definitions of recession. the classic definition is two quarters of negative growth. you will not see that on a global basis, but if you define a growth recession as too weak
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quarters, you could see that. we still think the u.s. is strong enoughong, to raise interest rates twice in our forecast. rishaad: where are you seeing the strength in particular? >> strength here in this region. rishaad: i'm talking about the u.s. >> one is the labor market stronger than a lot of people think. the fed pays a lot of attention to what is going on in the labor market, also in employment rate, growth is quite strong, continues to be strong. is supporting a good consumption story, so based on that, that's why we think the fed will be looking at raising rates. rishaad: let's move to china. outlook, theur ratings the same, but what you sing in particular? >> it has been an adjusting week with the npc, so digesting the
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announcements there. fiscal side, clearly an appetite for greater stimulants, deficit at 3% versus 2.3% last year, not a huge change, but the direction of change is interesting. taxrnment is growing about cuts, greater infrastructure spending, fees to get's fiscal stimulus on budget in their, credit growth of 13%, supply-side reforms in terms of cutting excess capacity, so i think there is risk to our 6.2% to thesi upside. rishaad: given the sheer weight onthe amount of money owed the plus side. >> the debt issue is a corporate debt issue, not a government debt issue. rishaad: some of that corporate
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that has been shifted on two --ferent ballots sheets balance sheets, making it sovereign debt. >> when it comes to the banking sector or state owned enterprises, corporate's, some of that debt could migrate to the sovereign balance sheet. if you look at the direct debt of the sovereign, low. local governments, somewhat higher number, but when you look at that number relative to what we see in other countries at the same rating level or different regions around the world, particular european sovereign debt numbers don't look that bad. rishaad: the day after you downgraded china, you downgraded 38 state owned enterprises? >> that was another agency. our outlook on china is stable, so we haven't actually changed the outlook. rishaad: how -- what prison you do look at the
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currency. >> it is not something that drives a rating, but volatility is in the market, and part of that is reflective of communication issues the central bank, change in direction of the andcy framework, difficulties communicating that effectively to the market. a slightly weaker exchange rate versus the dollar is not something that gives us cause for concern. the authorities have made it clear they are managing the exchange rate to a basket, the basket being stable. rishaad: which of the sovereigns are you likely to upgrade, downgrade? outlooks areve centered in middle east and africa. positive outlooks here, taiwan, .hilippines we have positive outlooks on both of those. india is a positive story, but
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the debt level is high. the growth is good, but the debt is high. were outside the region, people ask us a lot of questions about indonesia. if you look at the numbers, things don't look that bad at all. rishaad: thank you. aung san suu kyi's party prepares to take the reins. the challenges ahead. ♪
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>> welcome back. it is 10:22 a.m. in hong kong. these of the stories making headlines around the world. five people shut dead and two wounded in pennsylvania. two gunmen worked as a team to target the party. a high velocity rifle
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to shoot victims in the head after his partner uses gun to drive them towards the shooter. police say the murders were planned, describing them as calculated and brittle. five years after the devastating earthquake, japan spending $1 billion to relaunch the area around fukushima. the region hopes to capitalize on technologies developed since the disaster. billion dollars pulled together from public and private investors to revamp industries and spur new ones. falloutear meltdown and estimated to rise to $100 billion cost. nature has provided a spectacular sight in argentina, , hundreds off ice tourists have made the trip to see the show. ice towers more than 70 meters above the lake below.
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it last ruptured in 2012. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. now, hang seng sue chee and her party faces a night -- aung san suu kyi and her party face a nightmare, struggling with issues, a stock exchange with no stocks, currency issues. myanmar, loads of potential, everybody says so, but also aware of the challenges. >> you're right. lots of challenges. remember, no longer a pariah country, never mind the managed , competitive rates,
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unofficial rates, and most transactions made in the black market. plus, no credit rating, and the three-month old stock exchange yet to trade, all part of problems from a legacy of isolation, a military in power for five decades, but looking beyond, there are opportunities. take a listen. >> there is a lot of potential because it is coming from such a low base for growth. getting the systems right, infrastructure in place, allowing myanmar to take off, takes some time. this presents political challenges. potential, 56 million people, 10 times more than singapore, eight .5% growth projected, among the fastest growing in the world, but what many people are waiting to see is an economic blueprint. nld take the
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economy forward. a lot of questions being asked as to how myanmar will go forward. rishaad: indeed, we don't know who the president will be. there are opportunities. what is being highlighted? , there, infrastructure lies the great opportunity. we note myanmar with seen as asia's missing link, but with roads being built, that is changing. foreeds about $80 billion not just roads and transport, power, technology, also banking. securedks have preliminary licenses, a second round expected this year. plus, the stock exchange. a matter of taking the risks. rishaad: thanks a lot for that. joining us from singapore. competition, a strange
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set of bedfellows. artalibaba and tencent teaming up with oil companies as they take their rivalry to the world of feel. "trending business" back after the short break. ♪ ♪
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stories, asia's shares headed for the first loss in a month after the ecb expanded its quantitative easing program. draghi throwing cold water in the markets, saying no more cuts to come. collapsing oil prices and
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china's economic slowdown hammering the bonds of emerging market companies, eroding revenues in turn. .p won't have to face lawsuits they had blamed bp for losses they suffered during the ban on u.s. offshore drilling imposed after the 2010 gulf of mexico oil spill, one of the largest remaining sources of claims. bp has already paid out more than $55 billion over that spill. sees ay stimulus currency weekend, but the euro orming to the norm. what is going on here? october 2014, boj yenuncement, how the reacted.
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increased the monetary base by ¥80 trillion, asset purchases, as a result the yen weakened. what we have seen with the euro is that it has acted to form. december, when ,ario draghi expanded stimulus and also saying they will extend quantitative easing and tell until march -- 2017. you can see here at this point, up it goes, quite a strong rally. weres because the markets
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disappointed. they were looking for more out of that announcement in december. we've seen something similar after yesterday's announcement. yesterday there was a bit of a u-turn. this is what the bloomberg chart shows beautifully, the trends and every move. announcingi stimulus, throwing everything at countriespinion union -- the european union countries. is weakening, but within 90 minutes after mario draghi said no more stimulus, there we see the 1.6%., gaining that is a clear example of investors showing they were less than delighted with the fact
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that there will be no more stimulus for a while. rishaad: thank you. indeed, the ecb's latest decision has turned the spotlight on other central banks. james and tokyo, what are we expecting from the governor? >> good morning. after the big surprise in january when the boj introduced negative rates, the bank of japan playing down expectations for the march meeting, both the governor and one of his deputies have come out and said they are looking at how these negative rates are working their way through financial markets. it was necessary, there's little expectation that rates will be cut further in march.
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for at least the next little while, japan is steady as she goes. that 90%the thing is of the economists suggest we will see more negativity when it comes to rates by the end of july. is there any expectation that they could go earlier? while there is not a lot of expectation for next week, the majority of people still see the bank of japan cutting rates or increase stimulus further, almost 90% of the people we spoke to said some kind of monetary stimulus will happen in march, april, june, july. when thatt on happens. the most popular choice for the actionscal -- stimulus is a cut in the negative rate,
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backed up by the index swap market. the index swap market does not see the rate falling in the next three months, but in six months a negative interest rate double the rate now. both economists and money in the say more stimulus form of a further cut in the negative rates. rishaad: thanks very much indeed. taking a look at the possibility decreases its negative rates further. tokyo closed for its lunchtime break. shery: asian stocks headed for the fourth weekly drop. let's get a check of how stocks are trading. that theh reported company is eyeing to get a stake in an indian e-commerce site. lle plunging after footwear
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sales dropped 16%. china overseas, property developer there, raising 1.2% after announcing january-federal a contract sales. monthrst weekly loss in a , bucking the downward trend, surging after its core product could bring a paradigm shift in drug discovery. heavy pulling the stock down more than 4% in the morning session. oil energy producers pulling the pix down. japan petroleum down in the morning session. we are seeing oil seesawing this week. today it is gaining, rebounding
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more than a percent for crude than the previous session. it also lost more than a percent coming down from its three month high. we are seeing energy producers there reacting to those price fluctuations with oil, brent also gaining today after a loss in the last session. rishaad: thank you very much indeed. china's two biggest internet companies, alibaba and tencent, a look at why these companies are tying up with oil giants. what are they going to be doing together? very odd bedfellows. >> alibaba said they will provide a full range of internet services to the oil
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giant. cnbc does have 20,000 field stations. that would be a boost for alibaba payments and errors and alipay.e their use of ollie pa alibaba has identified that is a , aure source of revenue gripping state owned in stagnant industries, cloud computing, with what theync president has called out to unite the nation with innovation and also in terms of the technology, alibaba might be able to help them. , whatd: it is the battle other areas of business are these two fighting each other on? >> a broad range.
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both of these companies have calm far from their traditional core business in terms of what they are competing in, on-demand services, location-based services, food delivery alsonies, payment systems a very core angle of competition right now. rishaad: it is becoming a duopoly, isn't it? >> in a sense, it is. you see the battle has between three kingdoms, but more and more alibaba and tencent have shown they have more power in terms of m&a, expansion, including overseas expansion. not surprised. thank you very much indeed. we will quickly check on some of the other stories. suitors bidding for the french retailer in vietnam, thailand central group also submitted offers before the deadline.
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as $800 fetch as much million. selling assets in asia to cut debt and focus on france, its largest market. yahoo! fighting activists investors over its future, adding to independent directors ahead of a potential proxy battle, still considering selling its internet business. reassure investors. barclays chief executive told bloomberg the bank would consider an offer for its african division. a lot ofhas received interest in the african group after announcing plans to cut its 62% in the venture. it is focusing on the u.k. and america, taking until next year,
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leaving the bank in a good position. out of all the emerging markets, we close to nine countries in january. very expensive to close and sale all these businesses. that non-core business behind us in 16 an early part of 17. in order to have the funding to do that and have no constraints, we reduced our dividend for two years, but when we come out of this process we will have the ability to pay a significant dividend going forward. rishaad: looking at the fukushima,coast of how the region has been encouraging development five years after the nuclear disaster. ♪
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>> welcome back.
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it is 10:44 a.m. in hong kong. these are stories making headlines around the world. myanmar has begun the process of electing a president, but it won't the aung san suu kyi. lawmakers will vote in the next few days, the winner becoming president, and the other deputy. she has nominated a close ally for the role. she is barred from the post. an attempt to change it has failed. 2, man 0. a second victory over human in alpha go. lee said the first victory surprised him, but the second left in speechless. he must now win all three
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remaining games to claim the million dollar prize. painting ended up more than a $1 million after experts it had been painted for rembrandt. another expert had the same idea, and he had to pay 2000 times its presale estimate. art experts in the painting dates to 1625, and maybe the first rembrandt ever produced. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. right, some other stories tracking for you today. american volkswagen dealers have accused the company of mismanagement, putting it at heightened risk.
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theng led the w through vw through-- led the so-called defeat devices. they face fines for the emissions scandal. produce hybrid cars, introducing the clarity. honda claims the new car enjoys driving range and soldinitially be to local governments before consumers can get their hands on it. cars,ct for 400 train delivered by 2019, going into service year later. the chinese firm will invest 40
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million to build a facility in the city. luxury toilet maker expanding from japan, looking for openings abroad. 60% of all toilets in japan, and they expect sales and china to increase by half. says people want to live in a bigger house and have better quality products. , are unique toilets have reached important moment. traditionally, only wealthy people could afford us. recently, there has been growing demand for more affordable products. we see this as a sign that the market will expand. fire,d: coming up, under hitting back at critics, saying he has not run away from a .illion dollar debt
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the latest from mumbai, coming up next. ♪
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rishaad: this is "trending business" i am rishaad salamat. japan looks to develop the area devastated by the tsunami years ago. an area called the innovation coast.
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spurredthis disaster innovation? case reallyn this necessity has been the mother of invention. the area around the power plant is still way too dangerous for humans to go in. the radiation levels are too high. do thep to the robots to important work of decommissioning the plant and cleaning up the area. there was a lot of government money going into this, willing to fund the research and development necessary for the very important work that still leased to get done. i think it comes down to this, if you are and accomplish , robot safety engineer assist, would you stay confined in your university lab or rather go out there in the real world, test out your technology, and help real people along the way. rishaad: a lot of obstacles here
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, to create a tech hub, but they are not. >> there certainly is. definitelyople are attracted to this opportunity to test out their technology in the real world, but also for any kind of hub to work, you need a concentration of smart people. it is tough to ask people to move their entire families to fukushima, still facing a lot of's take my around the safety concerns. stigma around the safety concerns. rishaad: what is the government going to do about it? >> it is spending a lot of money along with private businesses to make it happen. a hundredstill thousand people in fukushima still evacuated from the area, a lot of cleanup work to be done, and it is up to the government
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to create this new pillar for the fukushima economy. before the disaster, the main pillar was business from these nuclear power plants, and that obviously is not going to exist anymore. rishaad: thank you very much indeed for joining us. -- eight 22 a.m. in mumbai -- 8:22 a.m. in mumbai. responding to accusations he fled the country and a billion-dollar debt. internationalan businessman who travels widely and often. let's get the latest from mumbai. is emphatically denying upstanding, but he's apparently in london, isn't he? >> that is what reports are suggesting. he has come out strongly in his
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defense, saying he has not fled the country. this case is turning out to be a bit of a farce. we have seen it happening earlier with high profile businessmen who have left the country and the government has not been able to take legal action or prosecution. the wheels have been set in motion as before as the mallya drama. attached todefault he left in the lap of luxury, according to government officials. the central bureau of investigation of the cbi in his defense saying that the passport of a person can only be impounded when a trial is pending against him.
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mallya had been cooperating. there was no reason to stop them from moving abroad. airline has now gone defunct. one of the banks and a consortium of 17 banks, which lent him $102 million, none of which has been repaid so far. rishaad: tell me about the bank in a bit more detail. what is the allegation there. is the chairman ,nd managing director of idbi executives members of a credit committee pulled off the bank. of the $102 million, which was thatin 2009, nearly 10% of was lent by one bank loan from i dbi, pointing out the loan was
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diverted abroad on false claims. it also says there was a slew of as thes that took place kingfisher airlines saga was underway. the cbi shared its findings with the government's financial , saying fundsarm were used in illegally and diverted a broad. the one-time settlement given is likely to be blocked. rishaad: thanks a lot for that. a quick market check, asia-pacific, a weekly loss. a bit of a turnaround. some markets coming back from the lows. hang seng turning positive by one third of 1%.
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the shanghai composite losing a bit of ground. the first weekly loss in a month. thank asario draghi to he lowered interest rates further into sub zero to rein in the eurozone. the europeanat and monetary stimulus program, all 600hat sending the euro index down. that contagion felt in this part of the world. a quick look at singapore, straight times index, also down. that remains the case, but marginally. that is it for "trending business". "asia edge" is next. ♪
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>> from our studios in new york city, this is "charlie rose." charlie: the ongoing presidential campaign has brought this country's deepening ideological rift into stark relief. a recent pew poll found that republicans and democrats are more divided today than at any point in the last two decades. this polarizing atmosphere has inevitably impacted congress's ability to work productively. former senate majority leaders tom daschle and trent lott


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