And 88 years. Starwood hotels snaps of three properties there. Shouldd says marriott improve its takeover bid. Austrias Prime Minister clearing the way for an early election, warning the upper tradeof cracking down on unions, what he calls a handbrake on growth. Do let us know what you think of our top stories. Follow us rishaadtv, include trendingbusiness. ChinaHong Kong Markets underway in 30 minutes. Singapore, taiwan, and malaysia started. Here is david. David some weakness coming through in the last 30 minutes or so. Markets in the philippines and Hong Kong Open up. Seatght see more weakness in because a lot of these markets have enjoyed quite a run up into friday. The fifth week of gains, philippines entering bull market. Taiwan and jakarta might follow suit. Weve also gotten to a point where some of these markets, a fairly big portion have entered overbought terrain. Of thelking 20 philippine composite, 20 of the straight times index, hong kong also 20 , technically overbought. ,hat said, a few other things taiwan export orders coming out as well as hong kong inflation. Apart from that, nothing much to trade on. Were looking at technical indicators. Just something thats happened over the last five or 10 minutes or so, australia, the oil prices ,ome down, 39 for crude dragging a lot of the energy names lower in australia. Thats it so far. We will see what happens when hong kong and china open up. Rishaad chinese policymakers warning of risky levels of debt after the National Peoples congress targeted 6. 5 growth. Those comments came from the pboc governor. It will be a difficult balancing act for beijing. We have a look at the challenges ahead. Do not envy the challenges ahead for chinese policymakers as they try to transition the economy towards a deleveraging and the supplyside reforms, all tied up as the economy continues to slow. Chinese policymakers have at least addressed the elephant in the room, the credit elephant in the room. Many analysts warning that , againstebt overhang the background of the slowdown in growth, does pose the biggest systemic risks to the economy. Moodys essentially cutting their outlook for china and threatening a downgrade on the back of this ramp up in credit and these leveraged risks. The pboc governor said chinas gdp is 250 , and the situation probe roses macro risks. Risks macroco risks. This is growing at a time when Leveraged Companies are going on overseas spending binges. Identifying the problem is one, fixing it is another, especially that 6. 5 has set growth target for 2016 onwards. That suggests that the policy priority is still growth over reform over deleveraging. We also heard from the vice. Remier, who suggested a plan there is all so this debt to Equity Program being studied by the bank regulators. That would allow banks to swap out that in return for equity debt in the same companies. They are trying to deal with this pile of bad loans on the balance sheets. In theory, that frees up more capital for more lending, something of a strange cycle given the point is to deleverage in the first place. What will really help the situation is more robust, more developed, capital markets. Financial institutions and china are still underdeveloped. Companies can increasingly rely more on Equity Financing and be less reliant on debt. Rishaad we have this tantalizing 13 billion offer dangling in front of it. Accept theys it will takeover bid from anbang, ditching a previous takeover bid from Marriott International. Anbang have increased their offer to 78 a share, two dollars more than their initial bid, and in cash, 13. 2 billion takeover deal. Anbang tying up with a private equity firm and Chinese Investment firm on this bid. Groups fully financed officer officer is superior to marriotts. Marriott has until march 8 to come up with a counter offer. It is carefully considering its alternatives. Back in november, if you remember, starwood had agreed to an offer from marriott that would have created the Largest Hotel company in the world, but if the new deal goes ahead, starwoods will have to pay marriott a 400 million breakup fee. Anbang is making a big push into the u. S. Hotel business, paying nearly 2 billion for the waldorfastoria come and agreed to pay 6. 5 billion dollars for Strategic Hotels and resorts, 16 Properties Across the u. S. To getd would need approved by regulators and shareholders, and if the deal goes ahead with anbang, the biggest takeover of a u. S. Company by a chinese buyer, and that outpaces the nearly 7 2013,n purchase back in but might also get flagged by the committee on Foreign Investment in the u. S. , a Government Panel that looks at acquisitions of u. S. Businesses by foreign buyers. Have a morewill detailed look later in the show. We want your opinion. Tweet us your rishaadtv opinion rishaadtv tweet us your opinion rishaadtv, and include trendingbusiness. The imf warning vietnams economy could be at risk. Christine lagarde has warned vietnam is honorable to external shock waves if it does not push the reforms strengthening its Banking System. Toldtine lagarde has Bloomberg Television that the Southeast Asian is not Strong Enough to withstand weaker Commodity Prices and tightening monetary policies elsewhere without these reforms. The head of the imf was in vietnam to meet with country leaders, saying it has one of the worlds most open economies. A strong have transition of the chinese growth model, if you have Commodity Prices that will fall lower and for longer, then it would expose the vietnamese economy, and that would not be good for the vietnamese population. The longrunning saga of the sharp bailout by foxconn remains delayed. Beare hearing a deal may not signed this month. It has been 25 days since our board voted in favor of the bailout proposal, choosing the offer over another bid. Since then, foxconn chairman has held off signing the agreement was sharp as advisors look at sharks books. Foxconn has sought to reduce the amount and wants more clarity on sharps performance. The Taiwanese Company also seeking to reduce payments for new shares by 10 to 20 . Foxconn and sharp says they are working towards a final agreement, but Neither Company has set a signing date. Chinas richest man is coming to. He rescue of fifa group has become the first major sponsor of fifa since the scandal ousted sepp blatter. Like other wealthy chinese, aggressively investing in soccer since the president made the sport a National Priority. This is run by Sepp Blatters nephew,. The deal will run through 2030. A much needed injection for fifa , 100 22 million loss for 2016, the first time in the red since 2002. Rishaad on her website, chinas consumers and how ignoring the bears, buying up big on spot is, travel, entertainment. That is on bloomberg. Com asia. Coming up, happy birthday twitter. The social networking site turning 10. Some saying it is already over the hill. The oil plunge, our next guest says the worst could be over. That and more on trending business. Checking what is going on mark and wise. Market wise. Us . He worst behind are we going back there . Hopefully not. The reality is people expected calm after the end of last year, and thats not how the year started. If we think about that big impact we are having, a lot of , thatum around etfs momentum is continuing to extreme levels. Rishaad weve had quite a runup, but then you have to say do we have another move down or consolidate at these levels. Mostly consolidate around these levels. We have seen the change in commodities and risk assets leading things down now stabilize. Thats giving an indication cheap violations, particularly in emerging markets, that we do need to consolidate these gains. Rishaad you have u. S. And nonus, can you divide the world like that. And china of course. Questioning what is happening in places like japan and europe with Monetary Policy. Rishaad we have two different ways of looking at the world, havent we . The fed with that surprisingly dovish statement. What has been the overall impact . Weve seen currencies in europe and japan continuing to hold onto that strength. The other thing is also making market say, the fed is not going to increase rates as quickly as we thought, potential he looking to increase or stephen the curve, which will be positive for a lot of risk assets. Rishaad thats what we have there when it comes to it. A dominant theme has been oil. Oil prices going south 30, people talking about 20 a barrel, are we pass those days . For a while . Of observation i would make his we go back a couple of years, 110, 26, now we have rebounded almost 50 . Fundamentals, if inventories increased, that is what will play on peoples minds. Secondly, the structure of the market has changed. Shale producers easier to switch on and off capacity, which will put a ceiling than going back to the highs. That being said, you get to a point rishaad and iran. Look at relationships between russia, saudi, iran coming online, that is driving prices down. Rishaad thats just it. Strange how all these equities have been working in tandem with the oil price . Yes, risk assets have tended oil,ve, obviously commodities, and emerging markets have been the risk assets, but that is starting to change a little bit. Whether its brexit or european banks becoming the new risk proxies as people becoming less concern. Rishaad also the foreign exchanges, running entirely counter intuitive to what happens. You dont expect the yen to rally when you get negative rates. It has come back to where positioning is and where the concerns come. Reducing Interest Rates helps out boroughs, but considering what it means for banks and what it mean for the financial system, people question that a little bit more. I think that is where we are sitting at the moment. Rishaad is it netnet net negative for the banks . If you consider what banks are doing, pronk short lending longs, collapsing the curve, and particularly with what is happening with assets. Rishaad especially the european ones. They need someone to steep and it. That is what the market is trying to tell you, and part of the reason why the fed has done is because they are keeping up the dollar part of the curve. Rishaad what is your advice . What is the top question you are asked by investors and what you tell them . I think one of the things to peopler is that a lot of are underweight in emerging markets, and underweight commodities. As a result, were seeing the steep reaction. The key for most people to consider is where we see valuations around the world if we are going to be in a more benign environment. Valuations are supportive, and there are quite a few emergingmarket assets in that category. Rishaad thank you for that. Now to the stories making headlines around the world. Barack obama arrived in havana for a threeday visit, the first sitting u. S. President to travel to cuba since Calvin Coolidge in 1928. They are accompanied by u. S. Lawmakers from both major parties, corporate executives, and problem prominent cubanamericans. The president has restored relations and removed banking restrictions, but only congress can lift a trade of bargo trade embargo. Russian investigators say the flight recorders recovered are severely damaged, all 62 people on board the boeing 737 were killed when it crashed and burst into flames while making a second landing attempt in russias south. Airline ceo says conditions for landing were appropriate, the weather was bad, and at least three other flights due to land at the airport diverted elsewhere. Hasilian miner vale confirmed the death of its ceo and a light plane crash. He, his wife, son, and daughter, died when their single engine turboprop came down minutes after takeoff. The president pay tribute to overseeing anale, increase in its market capitalization. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Next, a up sophisticated operation, more details emerge about how hackers managed to steal from Bangladesh Central Bank. Rishaad you are watching trending business. I am rishaad salamat. Su keenan in new york. The week ahead in wall street will be a shortened week due to the good friday easter holiday, all markets closed on friday. A big question for the first , candays, u. S. Investors the comeback continue . All major indexes now in the green for 2016 after one of the worst starts to a new year in history, and an impressive comeback rally helped by the fed forecast for fewer Interest Rate hikes this year. Data will continue to be front and center, orders for durable goods are likely to have declined in february as manufacturers continue to grapple with weakness overseas and the lagging demand for business agreement. We will also get the latest economistles data, projecting that previously owned homes sales fell in february, while sales of new homes climbed for the first fourth time in five months. Apple set to unveil a smaller screen iphone and ipad. Hackers stole more than 100 million from the Bangladesh Central Bank, stalking its Computer System for weeks before gaining access. An interim investigation shows a Sophisticated Group of hackers. Lets get more with our Southeast Asia correspondent. Engths did the hackers go to . Forhey were in the system two weeks, installed software that allows reentry, and to make the payments look legitimate, deployed malware. Investigators say it is the type of operation mounted by state actors. Interim investigators others suggestby they covered their track every step of the way, all logs deleted. It is a money trail from the fed in new york, sri lanka, philippines, about 100 Million Dollars stolen, 81 million into the philippines, another 20 million and to sri lanka, all part of a bigger attempt to steal 1 billion. The fbi now to help with the probe. Rishaad how farreaching are the consequences for the philippines here . Is it at the risk of being blacklisted . It could threaten the wider Financial Sector in the philippines, and according to one senator, the country make it blacklisted as a Money Laundering haven. Money laundering is a longstanding problem in the philippines. As well is the credit rating. It was raised to Investment Grade in 2013. The may be shortlived if government isnt able to allay concerns and show that it is taking actions. It has shown how money stolen from bangladesh was withdrawn and philippines, then cashed out in can see nose in manila through a local money changer. Out with local money traders in manila. A lot more information needs to be had for this to be resolved. Rishaad thank you. Lets have a look at some stories making headlines. Georgia boorses purchase of the London Stock Exchange saysche forces boorse byest and fueled expectations of a higher offer coming from the intercontinental exchange. Shares 14 higher than the deutsche 12. 8 billion offer. Monsanto said to be exploring possible deals with basf in the battle fors agenda. Buying its Crop Sciences business as well as 14 partnerships. The talks about the be the asset purchases of joint ventures. All refused to comment. Rishaad a look at some of our top stories. Its taking Chinese Companies twice as long as there peers to get paid by customers. Firm has to wait 83 days to collect cash. The accounts receivables have risen by almost 25 to nearly 600 billion, cash shortages are threatening chinas vast supply chain. Starwood hotels planning to accept a 13. 2 billion takeover insurances anbang group. Share, aying 78 a , givenrth 69 a share until march 28 and renegotiate. Foxconn takeover of sharp at risk of collapsing as delay in financing goes on. Reports, foxconn seeking to pay 20 less for 4. 4 billionthe dollars initially agreed over concerns about liabilities and future earnings. It has been 25 days since the board voted in favor of a bailout. Bit of a turnaround taking place when it comes to asian equities, the first trading session and shanghai and hong kong. Here is david. David were watching for a few things. ,he standout to the downside markets and taiwan and australia, perhaps for a different reason. Markets taiwan markets pulling back from a bowl ll level. Bu elsewhere, china, three things, a story on bloomberg, on the website, basically loosening up rules on margin financing. We will see how that plays out. To look at the two big rallies over the past two years or so. At banking shares, and ipo and hong kong, tianjin bank. People familiar with the matter basically saying they price this ipo towards the bottom end of the range. Pboc, what is the yuan doing now . A little bit weaker. Overall, japan closed to mark the first day of spring. If you look outside hong kong, it looks like the middle of winter. Fairly mixed at the moment, nothing much to trade on. I will leave it there. Rishaad it does look gloomy. Byrwood says its takeover anbang would mean ditching a previous offer from Marriott International. Insurancee the anbang deal is far more attractive, allcash. That is the upfront what you see in the comparison. I think there is more behind the scenes that the board at starwood has to consider. Number one, there is cost synergy with marriott, but what is not detailed is the revenue synergy, and underperforming starwood base of assets into marriott. They have a proven track record of being able to do that sort of thing, and you end up in a few years with a value greater. Hand is worth two in the bush, but that two in the bush in this instance is a real intriguing, different proposition than just cash. And you have to think that the other stakeholder in here, the hotel owners themselves, starwood, marriott rishaad they are franchised operations. Absolutely. If part of the idea going to marriott is they are going to take my business and run it harder, i want to go to marriott. Dont know about anbang will they have the same impetus to push for change . Im not saying we do or we dont know, but thats something the board will have to consider. Aside. lets move this its amazing, i dont think a u. S. Hoteln company in cuba since the 1950s. Starwood could be buying three of them. Cuba opening up as well, a lot of opportunities, but not as straightforward as all that. It is interesting because starwood has the Bigger International Footprint than a lot of globalize brands. No doubt that cuba is an market andped hotel the developing tourism market. It is a foot in the door, and starwood, given their international predilections, is a natural fit to do that. It is interesting. There are 63,000 hotel rooms in cuba right now, none of them what you think of as fivestar appeal. That is an opportunity. Rishaad thank you very much. A new problem in china, unpaid have seenment delays account receivables swell by more than 20 , 590 billion. We have the latest from the bloomberg. Problems fore china, 590 billion worth. This is a story on the bloomberg. Story is thethe fourth one down out of the top china stories we have this morning. We have seen some big falls in terms of actually, i have pulled the wrong one up. My apologies. It is now the fifth story down on the top china stories on the bloomberg terminal. 1998. Hart goes back to in 1999, we had gdp growth at a nine low in china. It took firms in china about three months to collect cash from their customers. When gdprly 2000s, was at a 15 year high, the economy tracking were strongly, it only took under two months for companies to get back their accounts receivables, but now in the latest filing we are seeing , a 25 year low, taking on average 83 days for a typical chinese firm to collect cash for completed sales. That is almost twice as long as its in emerging market peers. We have seen account receivables blowout over the past two years by some 23 , 590 billion figure , that is more than the annual economic output of taiwan put together. A look at this chart as well, which is on the bloomberg, this white line is the return on common equity of these firms that are listed on the shanghai composite, and you can see that it has fallen quite significantly since september last year, very much into march this year. The blue line is the debt to companieso rising, trying to claim back cash, really impacting. Economist says he sees two more years of hard times for the nations firms. Thanks. Lets have a look at some other stories we are following at a time when china is tightening its control over the internet, Mark Zuckerberg met with chinas propaganda chief. The facebook ceo was in beijing to attend an economic forum. He is a member of the chinese top this is in making body hoping that facebook and work with Chinese Companies to promote the development of the web. Facebook and twitter abandoned china. Topia, the animated feature, has earned more than 170 million since it debuted in china. It also spent his Third Straight week at the top of the box office, pulling in more than 500 million worldwide, and is still to open in the United Kingdom and japan. The Australian Dollar poised for his best month since 2011, thats not swaying the worlds biggest fund manager. Black rocks manager for fixed income is sticking with his bearish call. Expecting the currency to fall 15 are back below the sevenyear low in january. Cents. 76 u. S. The priming us to illustrate has set the scene for a likely early election, which would see both houses of parliament dissolved, the first time in almost 30 years that that has happened. Paul allen is in sydney. It would be a bold move from the Prime Minister. Tell us about this plan and whether it could come off. Paul some are calling it a bluff, but the Prime Minister probably is hoping it will come off. He is putting two pieces of legislation before the senate, recalled, and if the senate fails to pass both of them, he has a trigger for a double to solution of election in which both houses are dissolved and reelected in a poll. If we take a look at those two they wantgislation, that to be resurrected, and that would make unions more transparent. Both of those have very little hope of getting through. Malcolm turnbull hopes that remains the case. At a press conference he said the time for playing games is over. The go slows and attraction by labor and the greens on this legislation must end. The senate will have an additional three sitting weeks abcc andwith the registered organization legislation, plenty of time to pass these laws. If the senate fails to pass these laws, i would advise the governor general to dissolve both houses of parliament and issue writs for elections. Paul that election would be held on july 2, if it happens. Rishaad why in such a rush to get this election over with . In a word, politics. Malcolm turnbulls policy and party have been slipping. Is Opposition Leader monumentally unpopular, so he would be hoping to capitalize on that, but the senate itself has been something of a problem, very obstructive, and sitting are a host of Minor Party Senators who got elected with miniscule proportions of the vote. Before we have mentioned of the motoring enthusiast party, known as the accidental senator. You can find a video of him at hisg kangaroo dung friends, so mock him tumble would like to see him out of the house. As i say, Malcolm Turnbull will be hoping that both of these bills do fail, and ultimately he can rid himself of this very difficult senator. Rishaad thank you very much indeed. All strays new trade minister will be joining us live in the next hour of the program, just under one hour away, 10 30 a. M. Hong kong time. Coming up, japans latest inflation figures closely watch later this week. We will talk about that and what else is coming our way with ubs. Youre watching trending business. Welcome back. It is 9 44 a. M. In hong kong. These of the stories making headlines around the world. Authorities have called off a soccer match about two hours before kickoff, citing an unspecified risk. Reports say there was a bomb threat at the stadium. Matches will be played at a later date. A man from Islamic State carried out a suicide bombing in istanbul that killed four people. 13 People Killed and 30 injured in a bus crash in northeast pain. The bus was carrying University Exchange students back from the largest fireworks festival. Into an oncoming car on the opposite side of the highway. Officials say the bus was the cause, but the driver past alcohol and drug tests. Iraq has shipped out the first exports of natural gas in its history. Iraq first planned to start exporting gas in the late 1970s, delayed by the iraniraq war. Of ahipments are a result joint venture between japans mitsubishi and royal dutch shell. It wages and extensive fight against Islamic State. Powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. Two asiane have Central Banks with rate decisions this weeks, thailand and the philippines, both expected to stand pat, but watching for any comments on what they see in the pipeline. Lets get more from the chief Investment Analyst for ubs. By the look of gdp in the u. S. Lets start with that one, along with japanese cpi. U. S. ,rting with the 0. 9 . Ly downwards, q4 negativism,deal of but more to hospital spending, medical services, that pulls it down a little bit. What does thaty, mean for q1, q2 . We think we are sticking to a 1 handle, but eventually the inventory situation catches up. The that has played out by middle of this year, we think there is room for 2 handles later in the second half. Rishaad i will come to japanese cpi in a second. 2 is probably in line with what Janet Yellens thinking. Littleough we are a below that. The reason for that is that we do expect more inventory correction than we have seen so far, but then for the second half on track, and also on track for two rate hikes, september and december. That seems pretty much in line with Janet Yellens thinking right now. Again at 111 the against the dollar with the possibility that we could be in the socalled intervention range. Cpi this week, more deflation, a headache for them. Absolutely. If we look at the components of the cpi number, the japanese core number, we have prices still falling. You take the first component of food out, stabilizing, so maybe that helps, but from the oil and energy side, year on you see first time positive impact if we stay at current levels, will be in november. All in all, a flat number, possibly slightly below zero, likely to give them a headache. Rishaad two countries out with Interest Rate policies, one has Interest Rates at 4 , philippines, and highland at 1. 5 . Nothing expected in terms of a move, but what are we looking at in terms of the economies of these two countries . Philippineswith the , especially the bsp looking at the aftermath of the last two years when they had higher credit growth than other economies in asia. It is difficult for them to go loser. Thailand, bot policy is already loose, and unlikely to loosen further. If they did, especially on the household side, you have the situation of elevated indebtedness, and you dont want to stoke that too much, so unlikely that the bot is doing anything this week. Rishaad any move down would not make much of a difference anyway . Thats correct. You had early last year, the cuts, so difficult to cut it lower than that. At some stage, i would agree with that statement, economic benefits are outweighed by the concerns that would rekindle the indebtedness situation on the household side, so probably best not to do it. Ok, well, where does this leave your Investment Strategy now . That is the point here. If we start on the global side, also given the equity markets have recovered to levels not outright expensive, but not that cheap either. Yes, markets have realized that there is no recession and site, but not extremely strong gro lay thewe prefer to Financial Markets on the credit side. We have an overweight position in eurozone high yields, where we expect defaults to be close to 1 . That helps with the recent statements by mario draghi. On the u. S. Side, the more recent upgrade we have made. The recessionary fears were overblown, yields, especially on highyield side, quite attractive. Yes, you will see rising default rates, we think investors get compensated by these extremely lucrative yields. Rishaad thank you for joining is. Ubs wealth management. We have to take a break. Twitter turning 10, next. I look how social media is reacting to that. A look at how social media is reacting to that. Athaad lets have a look what is trending on social media, and it is social media itself, twitter marking its first decade. How are they celebrating . That really is trending, dozens, hundreds, of tweets flooding in. They say, we thank you for 10 incredible years, posting a video highlighting world events and tweets about them. Variousas, the pope, big events over the last decade or so. Has 320 million active monthly users. 18 on mobile. Started before the first 2007, but really apple iphone changed it all. Rishaad some are saying that it is already over the hill. That it have been talks is struggling to increase users, so that is one of the struggles that the company faces. The first tweet was this, there was another one, but that was apparently automated so it does not count. Twitter,he comments on feels like traveling. You never know who you will meet on twitter. I love twitter. The only place you get excited when a stranger follows you. I love twitter because it brings people closer. You are reading this from very far away, arent you . In other twitter news, jack dorsey confirmed that it will stick with its 140 character limit. News was outrage about the they would increase the character limit. Jack horsey confirmed that is to stay. Rishaad it is easy to stay in touch. Just use that handle there. You can follow me on twitter as well, rishaadtv. There she is. A good picture of you. Up next, australias heavy reliance on china, we asked the trade minister if the slowdown is giving him cause for concern. Rishaad is the first day of spring. This is trending business. We are going to be visiting sydney and mumbai this hour. Heres a look at what we are watching. Crude, citing again. West texas below 79 a barrel after increasing the number of u. S. Rigs, and currency weakens in response. Anna,herat have president barack obama becomes the first president to visit in 80 years. And they will go with the makeover must marriott makes a better offer. Singapores Prime Minister could into the polls as the stock july over the labor laws. We will see why the new trade minister is not working out. Can tweet us using this toding in indonesia getting start. We have david looking at the topsyturvy start. David he really has been. 0. 3 inown to about indonesia. At some point, starting to drop, but we but but we might be hitting a bull market. We are roughly 1. 5 . Below the 20 which some people used to indicate the entry into a bull market from the low. Elsewhere, australia, down, japan is shut to mark the first down of spring. First day of spring. 0. 5 . Down you look at volume, you get 55 if you will. Singapore seeing pressure, down at 0. 1 . A fair amount of the index, 20 , 30 maybe in overbought or maybe overbought. We are seeing that pullback at the moment. The first market in asia to enter a bull market this year. Shanghai is another story. 1. 6 , seven days of gains. It is really about the brokerages. On news, they are using these restrictions on margin trading. We will flesh the story out for you a bit later on. Look at specific markets, financials are up very 9 gains for chinese brokers. Really liking that news. Well get to the details, that is also on the website and the bloomberg. This go to china, that will be there. You can see how it is when it comes to the margin finance or margin debt, whichever source, which is why we saw this rally last week. Rishaad thanks. Looking at chinese policymakers as they warn of risky levels of debt. This comes days after the National Peoples congress a priority to achieving 6. 5 annual growth. This comes from the pboc government. They say it will be difficult balancing. Heidi is having a look at the challenges. No doubt about it, it is tough. Positive, itt the is heartening the chinese policymakers have finally addressed the elephant in the room, the credit elephant in the room. Many analysts and could say this is increasing. Putting tops a new credit coupled with growth. All of these rates extending breaks to the chinese economy, and we saw that flagging. The leverage issue is one of the key reasons why it is cutting its outlook on china, potentially flagging futures. Pboc governor over the weekend saying that chinas debt to gdp ratio came to 150 last year from 166 eight years ago just before that Global Financial crisis. That is a huge stimulus boost in china. That really does pose macro risks, in particular, he singled out corporate debt. That comes about 100 and 60 of gdp, and also growing at a time when they have highly leveraged on these overseas spending sprees. We talked about one of the ones making headlines. There isuggested that confidence in the economy, currency, Financial Markets. It is a mindset issue, and he sees that as changing. Overall, i think the view on chinas reform going forward, chinas economic future, and also the Renminbi Exchange rate. These discussions could soon be gone. We have evidence of that type of argument dissipating. Define oneeally a to thing, that is progress fixing. ,eijing has just said that 6. 5 7 growth target for next year, and that tells us the policy priority is still growth over form and leveraging. The chairman has suggested a plan to stop high cost of debt to cheaper muni bonds. Also a debt program being studied by the banking regulators. That would essentially allow banks to put their debt into equity states in the same company to do with the some currently on loan to chinese lenders. It would essentially free up capital for more lending to drive more growth. It is something of a strata cycle given the entire point is to deleverage. What will really help the situation is more robust capital markets, and that is something china still needs to develop. If they can do that, companies can get on equity finance and become less reliant on debt. Rishaad thank you indeed. Lets like a look at other stories. What we are watching for you today, we have a lot of things in the mix so far. Atiet is having a look chinas richest man and why he is backing up an organization which has really been under the cost so far this year. Juliette that is right. Backingrichest man is this organization. Wonder group has become the bipa. Major sponsor of fifa. Like other will be chinese, he has been aggressively investing in soccer since the president made the sport a National Priority last year. In mediaso got a spot agencies. Twodeal will run through 2030. One analyst says it isnt worthwhile, and more Chinese Companies may follow. West weekly announced a 230 million loss. That was the first since 2002. The longrunning saga of the a taiwaneset by Company Remains delayed. It may not be signed this month. Cents sharks5 board voted in proposal, choosing over another bit of japans incj. And now they are finding late removedset sharp has what their specific, and they want more clarity. The Taiwanese Company is also seeking to reduce payment, 20 of shares. Folks at sharp have said they are working towards a final agreement, but your company has yet set a signing day. Neither company has yet set a signing day. The primates or of australia brought forward the nations budget by a week, and threatens the earlier we come us the Senate Passes legislation on trade unions. He has said it was a handbrake on growth. Theants bills to restore industry watchdog and set up a commitment to industry. The parliament will be recalled on april 18 two to spate the legislation to debate legislation. The last time this was called in australia was in 1987. Rishaad indeed, one of those questions we will be asking the australian Prime Minister as he joins us later on. That is coming up and about 20 minutes from now. And now, still plans to accept a takeover from chinas and bank insurance, worth more than 10 million. But there is a previous from Marriott International that seemed all but completed. Roz has more. With a private investor and investment firm, and they have opted their offer by two dollars to 78 a share in cash, and that would make it 13 point billion dollar takeover deal. 13. 2 billion takeover deal. Theyroposal to marriott, have a deadline of march 20 82 counter offer. Considering the alternative. This would have created the Largest Hotel company in the world. This anbang deal does go ahead, stalwart would have to pay marriott. They are making a big question to u. S. Hotels, and the trophy properties, paying nearly 2 billion for the waldorfastoria. It also agreed to pay 6. 5 billion for the cheatham resorts, which have Properties Across the u. S. And then he to get approval by regulators and shareholders, and goes ahead, it will be the largest takeover ever of a Chinese Company of the u. S. Buyer. , by thet get flagged committee of Foreign Investment, which looks at acquisition of u. S. Witnesses by foreign buyers to protect national security. Handle of the u. S. Hotel, Major Hotel Chains actually grow on friday. Rishaad on the website we are looking at chinas of 590 million problem with unpaid bills. Have a look at that on bloomberg. Com asia. Coming up later, help for the hindrance, asking if this intelligence could be the next big thing for traders. That is next. In a goodocks putting show last week. And they repeat that pattern over the next few days . And we had the chief china strategist coming up. Rishaad it was a field that boomed in last year, but there is a surviving threat for the margin. The state agency that provides funding to brokerages is offering shorter dated loans. Juliet has got more on this story from the bloomberg. Juliette that is right. As we have been hearing from this morning, chinese brokerage are rallying on this. If you go to top china go on the bloomberg terminal, we are seeing the margin trading down. This is fueled by the boom. I want to bring up this chart that shows you what we can see. The white line here is the margin trading balance. We have got to see a spike earlier, before the crash over the summer of last year, particularly in the first half of 2015. There was a lot of money going into margin trading, and that fueled the boom we saw. You can see the blue line is the shanghai composite, which is the track. The big arises we have seen in margin lows. We started to see that money coming out and starting to fall. We are hearing a lot of state backed agencies are going to restart offering margin loans, but for a shorter period, ranging seven two 182 days. Interest days will be cut quite significantly. The rate for 182 days, that will be cut to 3 . The lows for 91 days will be around 3. 2 . This is some concern that we did see this big increase in margin trading last year really fuel that bust we saw in equities. That is why these rules committee holds margin trading. Its insulate what we are hearing is that the essentially what we are hearing is that this is unwinding and normalizing back to where things were. There is mark calm in the Chinese Market. Rishaad to get more on this, we have achieved china strategist. Why do this again . Yeah, i think the market sees this as a sign that the government is trying to reencourage people to take on leverage. Deep in mind that after the stock market bubble people had to repay loans. The Interest Rate of this loan, it is quite high. Actually about 4 . Market Interest Rates continue to fall. For me, such Interest Rates is really trying to follow the market trend. Rishaad what is the ultimate goal of doing this . It is not just to get the stock market up. It would make brokering easier. The Interest Rate was so higher previously, people focused on not borrowing money. As a result, the margin lending businesses actually not making too much money, not as much as they did in 2015. Now it is coming down, they are giving longer loans, making it easier to make money. Rishaad your got leverage increased here, and in the huge problem overall. We had a story today, which is of unpaid bills. 680 billion worth. That is a phenomenon that has been going on for a couple of years. The generation is quite poor. Effect. Es a chain the upper string cant pay the bills, and it does affect the lower string. Im not surprised to see this receivable connection are not associated. Rishaad we have leverage they are, leverage their, and as far s housing goes. They have been doing three and four not so great. Do you not see this as a problem . Tier one cities and tear to tend to have up to 40 of national investments, so they are very important. The problem is, as the Company Price surge continues, eventually it will take equality away from stock markets and it could pressure the stock market. Rishaad that is just it. We have the stock market to tell. You think when it comes to certain parts of the Greater China market, for one thing, isnt over for the shanghai market or the shenzhen market . We are seeing a strong rebound from momentum from the commodities and sector. There are positive developments as well. The mainland Chinese Market is very expensive. Now we are trying to put on leverage again. I dont think it is a good recipe. Rishaad from the beginning it seems bizarre. The Hong Kong Market has been disproportionately sold off. We are looking at price to earnings ratio, about 9 . Many of these stocks under book value. Isi think hong kong substantially cheaper than shanghai. At the same time what we see today, the action in the two markets are very different. Hong kong is more measured, given by international investors. The domestic, chinese mainland market is retail. And the reaction is very positive to the news. That is coming out this morning. ,ishaad and tell me something how did this all play out in six months ahead . I would say that there few people, including the regulators, who once lived the nightmare of 2015 rishaad which is why i am asking that question. Why do the same thing over and over and hope for the same a different solution . With different people you put on leverage so you can take leverage away from the complex sector. Ratio is about 600 . Only the chinese families can take on leverage now, and they have a ratio of 40 to 60 which is substantially less. Haidi the stories making headlines around the world, barack obama is in have on a, the first sitting president to travel to cuba. Since Calvin Coolidge. Corporate executives and prominent cubanamericans are there. Restore banking restrictions and travel restrictions, but only congress can lift the trading embargo since 1962. Russian investigators everett covered the black boxes have recovered the black boxes from the plane that crashed. All 62 people were killed when the crash happened when trying to make a second landing attempt. Wereonditions for landing appropriate but the weather was bad, and three other flights due to land at the airport scattered elsewhere. Confirmed the death of a ceo in sick in sao paulo. His wife and daughter also died after the plane crashed moments after takeoff. Since 2011, seeing a 250,000 increase in the market cut. Powered by over 2400 journalists in over 150 journals around the world, im haidi lun. Rishaad vietnam says it is time to reform. The interview with christine lagarde. Rishaad this is trending business. Vietnam will be vulnerable to external shocks if it does not reform the Banking System and indeed restructure state owned enterprises. The managing director is touring asia. She spoke with her. We talked about the ineffectiveness of negative Interest Rates. If we had not had those negative rates, we would be in a much worse place today. So lets see whether it kick starts the process of fueling credit to the economy, changing the behavioral pattern of people, and changing the strategy of banks as well. It might be good for the economy , maybe not forever, but a period of time. Reporter china recently had the china recently had the National Peoples congress. There was concern that the government was too focused on stimulus and shortterm growth at the expense of reform and growth. What is your take on that . We believe that china will continue to grow for one, and our assessment at the moment is 6. 3 . We have to assess the decisions that have just been made up by the chinese authorities to factor in those decisions and see whether we forecast a little bit more growth, possible. Reporter you recently urged asian nations to take the lead in adopting more will relate policies to capture Global Economic challenges. Which need to work on this, and what specifically would you like to see . I think the whole region needs infrastructure, and the financing of infrastructure him at whether it is entirely public or a mix of public and private is actually going to have a shortterm impact on growth as well as a mediumterm impact on improving the productivity factors. To see that across the region would actually be actually helpful, and that has been recognized by many investors now. Reporter during the visit to vietnam, you said the country had fallen behind regional competitors if it does not push through big reforms. How big are the risks . What is the worstcase scenario look like . From being slightly vulnerable, vietnam could become very vulnerable to external shocks. Significantvery tightening of the financing that is available because of Monetary Policy decisions made elsewhere in the world. If you have a strong transition , ifhe chinese growth model you have Commodity Prices that will eventually fall lower and for longer, then it would expose the vietnamese economy, and that would not be good for the vietnamese population. Rishaad , we have david in australia. Looking at the china slow down, how big is that effect . The trade minister, the new trade minister. Trading business is active couple of minutes. Also looking at bear markets. Crude is extending declines. Losses and commodity related stocks in this part of the world. Chinese shares are bucking that trend up 1. 5 , all amid plans to loosen curves around margin trading. We have more markets and beyond. That comes up when trending business returns rishaad a look at our top stories, chinese policymakers raising concerns about the nations debt levels. The pboc governor saying lending as a share of gdp is too high, chinas total debt is believed to be 250 of gdp, corporate debt at 160 of output. The get us to funnel more savings and the capital markets. New fifa sponsor to put hundreds of millions of dollars, the first to do so since sepp blatter was ousted. Starwood hotels plans to accept a 13 point 2 billion tank over group, and insurance less marriott comes up with a better deal. It will pay 78 a share in cash, eclipsing marriotts deal, worth 69 a share. Starwood has given marriott until march 28 to renegotiat e. There,public holidays the vernal equinox. David is having a look at what else is going on. David chinas Security Finance up with a statement on friday, loosening the rules around margin trading, leading to gains there. Let the give you the bigger picture. ,sia looking like this japan is shut today. There is not a lot of appetite for risk. Break, healthy break, if you will. Weve had five straight weeks of gains. This week still early on. I mention the shanghai composite, 1. 7 . Let me look at the line chart for that one. It reached 3000 a few moments 2999, the first time in two months, the prospect of more 3005 now now sending that one up. It is the brokerages enjoying the biggest gains at the moment, unsurprisingly given the new flow. Brokerages,at the 8 , 9 , across some of these names. 9 as a whole, financials up by 1. 7 . Index higher the other markets story it is australia. We are seeing declines, some pressure at the moment. We will flesh that out for you a bit later on, all the political developments, but causing some pressure on the equity space across sydney. 76 aussie dollar, we topped . 76sense last week last week, pulling back a bit. , to reset where rock thinks the exchange will fall below the sevenyear low we hit in january. Let me open up a chart to show you that low. . 68, black rock saying we will go to . 65. The median forecast across 50 analysts, the median forecast is . 70 by the end of this year, a weaker aussie dollar despite this break we have seen above some technical levels. 0. 7588 is your level now for the Australian Dollar. Hackers stole more than 100 million from the Bangladesh Banks, infiltrating computers weeks before the access. A Sophisticated Group of hackers, lets get more on this. Extremet to some measures here, didnt they . You bet. It was sophisticated, and they did it all, sneaking through the system for about two weeks, also installing software that allows them to reenter and make the payments look legitimate. Investigators say it is the sort stateration mounted by sponsored hackers. Interim investigations by organizations suggest a group of hackers who cover their tracks every step of the way. All of the logs have been deleted. Trailan intriguing money that went from the fed in new york to sri lanka and the philippines, about 100 million stolen, 81 Million Dollars sent to the philippines, 20 Million Center sri lanka, part of a bigger attempt to steal 1 billion. The fbi is now probing it as well. Rishaad what about the philippines . What happens next for their authorities . There is a risk of them being blacklisted. Thats right. Blacklisting is one thing, the highs could also threaten the wider Financial Sector in the philippines. There was the possibility of the philippines getting blacklisted as a Money Laundering haven. Money laundering is a huge problem there. What is at risk is the countrys credit rating, raised to may notnt grade, that be around for long if the government is not able to allay is takingshowing it action. It has to find out how money stolen from bangladesh was with drawn, then cashed out in casinos in manila. At a hearing last week, we were told that the bank had approval from senior bank executives. We still need some more answers. Rishaad thank you very much indeed. Just having a look at the latest in these twist and turns when it comes to this investigation into how the Bangladesh Central Bank was robbed of 81 million. A check briefly on some other thates, sources saying raised 140 has million after an ipo. The bank was said to price the offering at the bottom of the range. 560tors agreed to buy find million of stock. China tightening its control over the internet from a Mark Zuckerberg meant with the met with the propaganda chief well attending an economic form. He is a member of chinas top decisionmaking body and helps facebook could work with Chinese Internet Companies to promote the development of the web. Facebook and twitter are banned in china. s purchase ofe the London Stock Exchange could a snack. G several major investors have balked at the terms of the deal and question whether it could be derailed by antitrust concerns. Unrest also fueled by expectations of a higher offer coming from the intercontinentalexchange. Trading at a 40 premium deutsche boorse to deutsche sorse to deutsche boorse offer. Parliament ahead of the budget session, lets get more in sydney. Joining us is australias new trade minister. Thank you for joining is. Youre going to go early this year, july 2. We will see what happens. Minister has done is given the senate the opportunity to make a decision about that. The government has a fixed agenda. We want to see structural reform around the construction industry, a third of a economy, in terms of its contribution, employing about one million people. The abolition of the australian building and thetruction Commission Level of industrial disputation gone up by 34 . We want to give the senate a chance to pass these reforms. Rishaad there could be a game of bluff being played your Prime Minister, Malcolm Turnbull, as well. If we do get a double dissolution, would that be a surprise to you . Not be a would surprise, but the decision about whether australia heads to the polls for a double dissolution election is a decision taken by the strain senate. We have given them ample opportunity, with parliament resuming on april 18, for them to have ample opportunity to discuss and debate the narratives of the australian building and construction commission, effectively an empire on the construction industry. They can respect the mandate on , upreduction of the abcc 34 since it was abolished. Place, wes last in saw productivity gains in the construction sector of more than of merithere is a lot with this government strong focus on driving investment in infrastructure. If we dont see a blowout in costs rolling out across the stream economy, then we have to get reform within the construction industry. Rishaad how are the talks going with the parties and some of these independent candidates members, i should say . Continue to discuss and engage with them on a regular basis we have put through senate reforms, have a strong agenda as we continue to see the austrian economy transition away from resources and energy and move towards adoption of new technologies and new opportunities for employment in the new economy, so that is at the core of the 1. 1 billion National Science agenda. We talk across the bench and speak to the parties about these matters. We want to see reform that we , to a mandate to implement not be blocked needlessly, but to be introduced. Question, would you prefer to go earlier than later when it comes to a general election . I think what matters the most actually is what ultimately will be in the publics best interest. The governments dogged in our pursuit of this reform. We had a mandate from the last election to implement this reform. We will pursue this reform. I would call on the history and senate to respect the wishes of the australian people, lets get reforms in place in the construction industry, a key economic driver, consistent with the emphasis on transitioning our economy. Rishaad lets get to your job. You been trade minister since september. It has all been about free trade agreements, a lot of them signed under his tenure. You are confident you can achieve the same sort of frenetic pace of signing those agreements . Australia has a very strong track record when it comes to free trade and liberalized trade. I am certainly not intending to take my foot off the accelerator when it comes to engaging with the world. I continue to have a strong focus, in fact i was pleased to meet with the indonesian trade minister only last week and formally declare the recommencement of discussions around a comprehensive Economic Partnership agreement with indonesia. Indonesia is one of austrias closest neighbors and should be a significant trade and Investment Partner for australia, so we are recommence in those discussions, having withmal discussions countries, gulf state countries, having discussions and looking at opportunities also in relation to other multilateral opportunities such as the regional conference of Economic Partnership, so i intend to continue a frenetic pace when it comes to opportunities for australia to engage with the world. Rishaad what about the aussie dollar . That has improve your trade, hasnt it . You see more benefit from that . We have seen as part of that transition from resources and energy focus to transitioning towards new economy and innovative approaches that the aussie dollar has helped. The aussie dollar has bounced back with some weakness in the greenback recently. How that will play out, we dont know. Is put into to do place the policies that will enable Australian Businesses to be competitive as possible. That might mean that in the long run the aussie turns back to its normal level, but these are the forces outside direct government control. We will make policy decisions we think our international interests. Minister, lets talk a little bit briefly about the slowdown in china. How badly is it affecting your economy . Think it is bad. What we are continuing to see, a bounceback on commodity spot is the longterm interest for australia, but austria has 160 billion of twoway trade with china. Broad,g with china is but also look at broadening our relationship with a number of other countries. Seere continuing to opportunities, particularly in relation to japan and korea, which are coming to the forefront now on the back of the free trade agreements we have done. Watching closely as domestic u. S. Debate around the transpacific partnership, hopeful that the dpp will go through in the u. S. Congress pp will go through in the u. S. Congress this year. Minister, thank you indeed for that. The minister of trade and australia joining us there from sydney. We have to take a break. And theal intelligence ancient board game of go, but can it beat the Financial Markets . That and more when trending business returns. Making already vital in electronic trains trades every day, some say Artificial Intelligence could help make smarter decisions. Lets bring in the ceo of a financial and marketing firm. Lets start off with that one. What is this . About 10 years ago, i had lunch and realize there was no real focus on expanding the knowledge in the financial marketplace for quantitativebased trading. Typically you would go to a conference and they would put them in the corner. Together we decided that if we put together a combination of investors, quantitative managers, as well as academics, we could explore this world. There was a big discussion as to whether or not investors should put money into a black box or into a human or discretionary trader. Thats where the term, the battle, came from. We put them on the stage. They went at it, and we had very spirited debates. We took a roll call of the audience as to whether or not one or the other won. Rishaad this is recurring, is it not . The new york event was such a success that we expanded to europe and asia. Events in hong kong, tokyo, singapore, shanghai, and it has been a great success. Quants have really come to the recently. Ore maybe a year ago, they were still in the backwater, and because of quantitative easing and the lack of volatility, there was not a lot of trading. Havead you have to volatility to make that money, havent you . Quants were not sophisticated enough to take it to the next level. What we have now is a tremendous amount of data. Data is the oxygen or the cornerstone of what drives a quantitative strategy. They want to analyze from various angles, and then they need capital investment, investors to say this looks like a good strategy. In the past, if you look at the 1003tplace, there are hundred 60 managers that are trading based on computers. It is only 10 of the business. Rishaad it is a big 10 . How many of them use Artificial Intelligence . What advantage is does it give to a highfrequency trader . Artificial intelligence is a very general term. , machineike to say is learning, deep learning, the alpha go the just won the competition, the most sophisticated type of classification of Artificial Intelligence. It used to be pattern recognition in the 1970s and 1980s, and in 2000 we switched over to Machine Learning, a sophisticated way of analyzing data and interpreting it and having a machine see and recognize it and trade based on that. The next step in what is just starting to trend is deep learning, with the alpha go winning, your incorporating numeral net and looking at data in a much more diverse way, and the computer starts teaching itself, so that is the next step of where we go. Right now the hot thing is Machine Learning and combining Machine Learning with big data. Because of the proliferation of data, more data being produced on a daily basis, it is fair game. Rishaad loads to talk about. On the other side of the break, asking about machines whether they use their own intelligence or hours. More as trending business returns after this. Tohaad lets get you back Global Capital acquisitions and the battle of the quants. We talking about Artificial Intelligence and quants and how these things are moving so quickly. How is Algorithmic Trading changing . If you take a look at the marketplace, the past quants were operating on structured data. There was the tech data, financial data, and looking backwards. The quants today are using unstructured data. With the proliferation of data and different sources of data, spree,are in a buying looking for every piece of data they can, bringing it in house and then analyzing how they can look at it and predict based on what that information is where markets will move and position themselves accordingly. What we are finding is that the investors are becoming increasingly sensitive to the quantitative managers, because Interest Rates are relatively zero, no fixed income that they can put money into read their eight reach their 8 . They are looking for those strategies that would take advantage of volatility. So where do they look . ,uants they look towards the but it is a comic world and they need guideposts. Rishaad machines are using their own intelligence or basing their intelligence on our brains who program them. We certainly are behind the algorithms being created so that machines can absorb information, interpret it, and after a certain point become self learning. That is what the concept of deep learning numeral networks is all about. It has to think through a series of patterns that it saw, and pull from different components in order to predict what the next move it should make. It is doing a certain amount of its own decisionmaking. Rishaad last question here, china, a lot of questions about the veracity of the data we get. How much does that affect somebody who is using all these data points you are talking about to have an Algorithmic Trading system . , you have the Government Data coming out of the government of china, and then you have a lot of analytics tot are going beyond, going different sources, in order to analyze everything other than an as a resultber, and of collecting a lot of that different information, you can get a much more accurate number and not depend on one entity. Rishaad thank you for coming in. Great to see you. He founded the battle of the quants and ceo of Global Capital acquisitions. That is it for this monday edition of trending business. Angie will join me and we will recap the big stories of the day , 200 of the worlds leading galleries at the asia art show in hong kong this week. The asia director of art basel with me to talk about the shows evolution and what businesses can look forward to. This is the middle of the asian trading day, and you are watching asia edge. Winning streak. Chinese stocks hitting a twomonth high as policymakers loosen controls on margin lending. This was fueled for last years boom and bust. Says its aest man worthwhile deal. Election footing. Australias Prime Minister clears the way for an early vote using a crackdown on trade unions as a trigger. Angie also coming up, hunted and hacked. A sophisticated gang behind a Bangladesh Bank heist. Positive or negative. Christine lagarde says rates below zero may be good for the global economy. Premier artsias show, bringing together more than 200 of the worlds leading galleries. All that and more on this mondays edition of asia edge. David i am on market watch for you. I will be following the money and what is happening. 2. 4 gains on the shanghai composite. Its a quiet, uneventful start to the trading week. You canrly mixed, as see. Overall, the benchmark is lower. Asian stocks