In his battle with the marriott for the start of hotels. Says, they are on for a bit of a wild ride. Please dont forget to use that trending business. We had to hong kong of course. First trading of the week getting underway in about 30 minutes from now. Shanghai also coming on. Singapore, taiwan, malaysia. Just starting off their session. With have a lid of a long week malaise. A little bit of a mixed picture. The talk about the beta drop out of japan is morning, really particularly when it comes to that retail sales number. Also came in worse than expected there. We saw a bit of a dip in the yen. Also the downside today. That is also an additional dragged on japanese stocks at the moment. Elsewhere, were seeing hefty losses coming out of city. Sydney. Major financials along with energy names slipping. In terms of the markets that have just opened, malaysia and little bit down. Singapore, up slightly. On, with japan out of the way, chinas stock was fairly disappointed yesterday. We look at the tuesday. Ahead to tuesday. Allimportantting u. S. Labor days out of the end of the week. Thatll that will give an idea of when we can see the net rate next rate high. We re also looking ahead to chinas pmi. A lot of waitandsee sentiment. Months of work on a multimillion dollar buyout could come to nothing for marriott. They have now received a higher offer. Natalie latest on this increasing bidding war. Battling it out with marriott. They have received a takeover 14 billion from that chinese insurer. Counter a second time maybe it has been planning this acquisition since november and observers say it will be top for marriott just to walk away from the time and Energy Invested so far, but they will be able they will need to justify bank more than they already have. Marriott has reaffirmed its starwood, to buying which has brands including raton, westin cannot and w westin, and w. They have moved aggressively overseas. An analyst with j. P. Morgan offer becomesew binding, the marriott walking away and simply collecting its 450 million breakup fee. Rishaad lat a more detailed look at that later in the show. We will have a more detailed look at that later in the show. United states has dropped its legal case after apple after successfully hacking into the iphone of the San Bernardino killer. I guess, the first question has to be, what is the significance over all of this development . Place, thet government filed a status report a week before it was due. It gives the impression they were in a rush to end this case, perhaps because of all the publicity they stirred up and they didnt get the kind of the support they would have gotten for this case. Government, a month after saying only apple could help them, found a thirdparty who could do it for them, which may cause problems Going Forward when the fbi goes back to a judge saying they need a thirdparty cooperation to crack into a phone to access encrypted data. What we know about what was on the phone at this point . Is an interesting question because so far the fbi has not said what was on the phone, what they found. It will be interesting to see in the coming weeks if they provide any information about it, because it raises the issue whether this terrorist iphone was only a pretext for the court ordero get a to get apple to write code to crack the Security System of the iphone. Question weeresting have to look forward to in the coming weeks. The other question has to be, is this done now, we over this, or is this something that will come back sometime soon . Likely that avery similar issue will arise in the because apple will upgrade its operating system for the iphone as soon as it knows what the weaknesses the now has been discovered and given to the fbi. Whether it is going to be a few months or longer, sooner or later, the fbi is going to have an iphone they cant open with this new technology, then it will have to go back to court and see if they can get a court order, again trying to force apple or some other company to help access the encrypted data. With the senator until there is a new Long Congress that will resolve this. Ward thank you rishaad thank you for that. Of theave a look at some other stories we are watching today. Looking at how one Japanese Companies seize more than growth when it comes to their domestic economy. Define gross looking abroad. That is ntt data. Is making a big push outside of japan. Acquisitions will increase data to the u. S. And other overseas markets to help counter sluggish growth in japan. Ofy are the consulting unit ntt. They spent more than 634 million since 2011, mostly overseas. Rise toe seen sales over four dollars billion. Billion. Ore than 4 the Investment Firm kkr is said to be considering a record nine billion. 9 if they reach their target, the new poll will be 50 larger than its previous one in 2013, and that fund. Anything more than 25 is considered a top performer. Last year. Ll 14 it felt nearly 5 . It has been hurt by the economic slowdown and changing tumor case. Consumers drinking more wine and liquor. In general, they have seen beer consumption fall me last year or two. They have struggled to raise prices and according to your monitor, it is falling behind the maker of the countrys bestselling snow beer. On our website, we are looking at indians prime ,inister singh a good policy not good fortune is responsible for the countrys recent growth surge. asuiia. At bloomberg. Com expectations. Next rishaad a man suspected of being an integral part of a fiberwill testify in the philippines today. Our southeast correspondent has, who is this man . Is a gambling junket operator, the man dubbed as the missing link. His lawyer says he will appear in a hearing today. Is described as a big player in the hacking. The stolen money was channeled through a commercial bank to at least two filipino casinos with the money trail has disappeared. Investigators say he withdrew more than 20 million of stolen from a bank account where he is president and general manager. He has also withdrawn from his. Wn personal account he denied all allegations, and said he is simply a victim. He said he does not know where the money came from. This mystery is shining a light on this casino business, and some have suggested might be murky. Haslinda you are right about that. When the hacking was first discovered, the focus was on the philippine banking sector. Casinoifted to the junket providers because that is where the money drill trail ended. It is also raising questions about what the president has done to crack down on money laundering. Casinos there, they are exempted from all rules prevented at money laundering. It makes the philippines a perfect black hole for a heist. These are the stories making headlines across the world. Engulfed the towers in dubai. Hundreds of people managed to escape, but it is not known if anyone is endangered or trapped inside. The city is home to many commuters who work in dubai. The tower has seen three highrise fires. Little castro has criticized president obamas sort to cuba, rejecting what he calls the empoerors presents. He warned obama about theorizing about cuban politics. Thecuban did not meet leader during his visit, although he held several meetings with his brother, current leader raul castro. The former president of honduras as with guilty to corruption. He admitted accepting hundreds of thousands of dollars for influencing the allocation of tv and marketing rights when he was the head of the honduras football federation. He is the 14th person to plead guilty in the inquiry which has also seen the downfall of fifa president sepp blatter. This is bloomberg news. Along with a speech later today. Lets get over to this. Great to see you. Are we getting ahead of ourselves in thinking at least some of these can go in april . April is very unrealistic. Is thinthe narrative this year, and we believe at there is some hawkish domination. U. S. He reality is the economy is in a bad bunch globally. Is a mustd that, it view mature phase for the property cycle. The summaryty much of it. Theres no significance in the u. S. Too ambitious and discounted year. Rishaad lets have a look at Corporate America. That is also going to be very important for the bed because theres talk of sharp profit slowdown and that could be worrying. George exactly. We all know there is a sharper and we all know it is the Energy Sector dragging it down. That is historically looking in the revision mirror. Going forward, can Corporate America outside of Energy Sustain the currency to rise in the year ahead if that is your view . That is one way one has to be cognizant. There is a challenge for north america, if they are doing better than economies run the world. , profits are contracting, the Energy Sector is noted. It will impact Corporate America earnings in this year in the years ahead. One rate rise is about what to expect regardless of the country. Rishaad given evidence, some of the focus is what happens abroad and some focus is on china, naturally. What is your view of that one . At manufacturing, but we should be looking at the service side more and more. George spot on. Chinas authority should be credit for many years. They are dealing with the issues as they transition from investment into the services component. We need to see how that tracks. But the overwhelming factor here in the view we have is that the is no hard landing in china. There was a consolidation and transition in the slowdown your you all right, if there ares sharp slowdowns, that is a concern. That is on track for sustainable growth. If they can have that eventuate, that they give the opportunity to go two instead of one this year. China is good to give that signal for the rest of the world and whether the Federal Reserve can start raising rates again. Rishaad lets talk about where you are at the moment. We cant not talk about australia. How are the commodities side of things . Everybody is trying to identify we had been to the bottom. Cant have broad strokes, as some may be do better than others, some do worse than others. George spot on. At the higher level we believe the lows are behind us. Having said that, the rally you have seen seems unsustainable and too quick. Theres nothing in the structural parameters to suggest go up anytimeould soon. Energy is much more cyclical. Some recovery in the various metals and one year of Going Forward. But nothing that will be a sustainable rally. There is no precondition for global growth. As long as it is not revised lower, that should be supported on the downside, and we believe the worst is behind us for energy and many of the metals. Rishaad george, great talking to you. We have to take a break. We are looking afterwards at the big banks and china as they get set to report earnings this week. We can expect. Rishaad this week is likely to be the most crucial of the chinese earning calendar. They are due to report results. Lets have a look at the importance of all this. Keep in mind, we are coming off a decade with the average growth was 25 . Have a look at this graphic. Since 2004, this takes you back gone are the days when you had explosive growth. You cant understand why they are trading below book value. Second left to the right, that is the estimate if you combined the big five banks. To come in roughly flat. If you are a pessimist, you can see they are actually falling. Again, we also have to emphasize that when you take a look at these numbers this week, it doesnt mean these guys are not making money. They are still among the most Profitable Companies in the world. Apart from apple, my alert opened up so the stocks are opening up. Apple is number one. The problem is not the number of money they are bringing, it is the growth. Has to do with more provisioning they are doing because of rising bad debt. Let me show you very quickly here. Let me open my charts. Of 2015, we are roughly at 200 billion. I alluded to, it is 0. 6. You have this later on, very very busy. Rishaad coming up, china is buying up big in australia. What is holding back any wave of investments . The markets are open in hong kong and shanghai. Rishaad a look at our top stories. Asian equities dropping as Many Companies dropping. Unemployment picking up and retail sales dropping more than 2 in february. Mixed messages about a possibility possible rate hike. The owner of the Sheridan Weston and w brands says it has gotten an improved offer from china. Married stock is dropping. Stock is dropping. The doj says it has managed to access the data on the phone and no longer needs apples help. Authorities say they were approached by a third party with a possible solution to the case. It ended the tech world against the government. And fueled balog about privacy and encryption. To talk about those concerning factors. It is the oil story. The disappointing charge of data that we had this morning as well as the yen not doing much either. We are looking at the strength of the u. S. Recovery being called into question. Disappointing in the previous months, the revised down. Being revised down. We are seeing a lot of weight and see sentiment in the markets. Sentiment in the markets. We had disappointing retail sales and jobs numbers. Australia, also low. Shanghai is lower at the open. 0. 25 . Ng, up about you somethinghow that was moving today. This was the china milk formula story. That stock is up over 900 . We are also seeing weakness across the financial westside. Asia is down today after last weeks game. Rumors continue that Tony Fernandes may be taking the carrier private. No confirmation but a lot of reports. Sharp is down 3 . They are giving back all of yesterdays gains. There was a report saying that they reported a net loss. They said it is not a source of that report, but it is considering cutting forecasts. We could see that signing between foxconn as well as sharp on april 2. Just to end on a positive note, this is the leading gainer. Up by over 6 . Rishaad getting back to our top stories. A new bid from chinas on bank insurance. Will marriott strike back . Here . S at stake how much confidence can they have that they can get the deal done. They had a little bit more comfort with marriott. The deal was almost at the finishing line. Rishaad its better to be with someone who knows the business. Ben that has certainly been the argument of marriott. The deal would create the Worlds Largest hotel operation. Experience limited operating hotels. Shareholders would keep a stake in a combined larger entity. Rishaad are there concerns about being it will to do the deal. Ben definitely. There is no concern with marriott. The confidence is there. Anbang is less on well known. To get thet approved money out, who is going to pay . Rishaad there is probably a regulatory issue was with marriott getting involved as well. What about marriott . It is looking a bit copy, this price. Toppy, this price. Limited ability for them to increase further. They have already increased and they have to increase farther. Angbang doesnt have to answer to shareholders. They have already coveted what they can afford to pay. Bump up bybe able to a dollar or two, but at a certain point because relations for the deal do not make sense anymore. Rishaad and shareholders will not be happy. Thank you very much, ben. Lets have a look at this privacy battle. The government dropping its case against apple. The Justice Department says the unlock the phone with a help of an unlocked third Party Without comprising any data. We resent this from san francisco. This from san francisco. The government dropped its case against apple. The u. S. Government was fighting with apple, trying to get apple to develop software to let them get into the phone. Apple saying it would take many it was possible but it would weaken security in all of apples bones in much of the technology industry, compete for microsoft to google, letting up behind apple saying that a weakness in apples operating system, and if the government was successful, it could weaken privacy and security across all technology devices. A concerted much of the technology world. Then the u. S. Government came pleading, saying in effect they could use another company and apparently was successful. Will maybe see if they in court on the day, but as far as is met or goes, the government having success cracking the phone. San johnson, bloomberg francisco. Rishaad comment coming out of apple as well, talking about how this case should never have been brought in the first place. Able continue to help Law Enforcement with investigations. Of course there will be limitations to that. The company has also talked to increase the security of its products here as well. Raises issues which deserve a National Conversation, and they say they would like to participate in that National Conversation as well. Should it actually happened. Lets have a look at the reaction to the story itself on social media. Edward snowden always has a lot of comments on privacy issues. Dishonesty in the this case. He later sent another one saying, if i am tim cook, the next apple keynote sends a message, even the fbi will have the grafting your iphone works for you and you alone. , the f22weets reports were the fbi has said apparently it could not unlock the phone without apples help, and that turns out they apparently can. Rishaad it was this Unnamed Third Party who did. In general, if you look at social media comments, there are accusations of line. At the line, apple is lying. Fbi is lying, apple is lying. Said, hashtagad porky pies. He said apple is lying about how secure the iphone is. I could take into a shop and get the phone unlocked. Rishaad which makes you wonder where the fbi went on such a goose chase. My favorite is this last week. Im calling from the fbi and id cancel my upcoming at the genius bar. Rishaad after it was launched ulusickstarter, the first oc vr headsets have launched. Hardcore gamers are likely to be early adopters. Sony is releasing a Computing Device later this year. Shares, lets have a look. They were marginally higher. Thelatest survey showing economy still emanating weakness. Capital expenditures have fallen into job creation drop to a fouryear low. Sluggish loan demand highlighting three years of stimulus yet to convince companies to bo