misleading investors on money laundering malaysia prosecutors takes take aim at u.s. investment giant goldman sachs bulging criminal charges and stripes reclaim billions of dollars in the massive one m. to be corruption scandal. and of a monopoly as china and india compete for influence in the region india is building a new rail connection for a poll. now it's francois aims to breach e.u. budget deficit limits next yaz president has to finance his promises to the yellow vests italy appears to be. making a deal with brussels. and flying cars are becoming a thing yes really to combat gridlock in cities the idea is slowly gaining in currency and fund. this is eat up your business i'm getting out of his welcome the corruption scandal surrounding the state fund one m.g.b. continues to intensify malaysia said on monday it has filed criminal charges against us investment bank goldman sachs and to former employees goldman has been under scrutiny for its role in helping raise six point five billion dollars in three bond offerings for one malaysia development and giving kickbac

the invitations by malaysia is that thatis the invitations by malaysia is that that is not the case and that goldman sachs was involved in a multifaceted attack on the fund. goldman sachs has responded. how did they not know what was going on? that's actually a very complicated question because of the definition of goldman sachs. under us law, the corporation is responsible for the actions of its employees in most cases. actions of its employees in most cases. almost certainly would be here. so that you could successfully prosecute goldman sachs in the united states under us law. we will have to see under malaysia and law watch the courts say. but that may bea watch the courts say. but that may be a different standard. the investigation is exposing loopholes. to you think these loopholes will be closed after this? i think they are built into the system. what people need to ask themselves is that why do these scandals keep on happening at sovereign wealth funds and the a nswer at sovereign wealth funds and the answer is there a huge amounts of money does make there is huge amounts of mon

francine: malaysia versus goldman. the lender faces criminal charges relating to the 1mdb scandal. $1.7.could exceed no referendum rerun. theresa may's team pushes back against a second brexit vote. the fed is set to hike this week. slowing economies and volatile markets. ♪ francine: welcome to surveillance. i'm francine lacqua in london and these are your markets. 600, .3%,n the stoxx we are also seeing volatility on the markets. we will see how we and the year. yield, 2.8 year nine. the dollar is edging lower after a slow week. .1324.ro-dollar, 1 asof down. will be watching retailers closely as the christmas season is upon us and that is when they do the bulk of their sales for this quarter. craigak to a u.s. senator gardner as threats of a u.s. government shutdown loom. before we go to all of that, let's get to first word news. here is viviana. malaysia has filed criminal charges against units of goldman sachs for filing what it says are false statements relating to 1mdb sales. inaysia will seek fines excess of 2.

some form form a fire in my snow pled guilty in the us for bribery charges and his deputy in malaysia was a receipt for. a similar charge. that scandal is mind bogglingly big it's about billions and billions of dollars much of it ended in the coffers of the government and. we've just lost ok. maybe coming back to bed later we're going to our next subject now is china which has a reputation for investing in developing countries especially in infrastructure like rella is roads and while some question beijing's motives locals often welcome the projects but china isn't the only country setting its sights on this kind of foreign investment india is building a rail line in the himalayan mountains mountain nation of the pole in fact some say china and india are playing a game of monopoly in that whole vying for leverage and influence so one of the done so far well china is building two ports in the country as well as highways roads hydro power plants and a cement factory in the on the other hand has also started investing in the company building hydro power plants and railings and what about

the implications from malaysia is thatis the implications from malaysia is that is not the case and that goldman sachs was involved in a multifaceted attack on the fund. goldman sachs has responded and said it was like to about the use of proceeds from these transactions. how did goldman sachs not know what was going on? that is actually a very complicated question because of the definition of goldman sachs. under us law, the corporation is responsible for the actions of its employees in most cases and would be here. you could successfully prosecute goldman sachs in the us under us law but we will have to see under us law but we will have to see under malaysian law what the courts say but they may have different standards. it is exposing loopholes in the global financial system that opens ways for corruption. will they be closed? i think they are built into the system, they are not loopholes. why do these scandals keep on happening at sovereign funds? the ansett is there is a huge amount of money, measured in the hundreds of billions of dollars, sloshing around these funds. there are no

malaysia charges goldman sachs. the u.s. lender faces criminal charges over statements related to the one mdb scandal, fines to the bank, and others could exceed $2.7 billion. and, retail rock, a sow's loses more them --asos loses more than a third of its value after last month. the other retailers are not spared. plus, no reruns. may attack supporters of a second referendum after a weekend of mounting pressure on the government. dissent withines the body. welcome to bloomberg markets, .his is the european open i am matt miller in berlin on site anna edwards at europeans headquarters in london. anna: let's look at thing shaping up on the stoxx 600 in europe. retailers are a big part of the story. let's get to the upside. .bb is not in here they sold one part of their business to the touchy. at the start it was up by 2.5%. this is the swiss swedish engineering group. we did see some mining companies moving higher, which i find interesting. you cannot be too worried about global growth. just a moment ago we had another couple

malaysia has filed criminal charges against goldman sachs, in connection with the 1mdb financial scandal. the us bank has been under scrutiny for its role in helping to raise money for the investment fund. it says the charges are "misdirected". and this story is proving popular online: the great niece of nobel prize—winning writer gabriel garcia marquez has been recued from kidnappers in colombia. melissa martinez garcia had been held by a right—wing paramilitary group since august. her kidnappers had demanded $5 million in ransom money. that's all for now. stay with bbc world news. and the top story in the uk: the prime minister theresa may has told parliament it will not get a vote on her brexit deal until the third week of january. now on bbc news live to singapore for asia business report. from poverty to global power — china marks a0 years of economic reforms which made it the world's second—biggest economy. malaysia lodges criminal charges against goldman sachs. 0ver lodges criminal charges against goldman sachs. over the 1mdb scandal. we assess the significance. good morni

breaking news, malaysia filing criminal charges against goldman sachs. more on this developing story in minutes. despite that, wall street pointing to a higher open. traders gearing up for the final full trade of the year. >>> d.c. drama heating up. the clock ticking towards another government shutdown. that deadline now just five days away why today marks a major milestone for bitcoin and it is holiday crunch time and we are live at a fedex facility with just eight shopping days left to go until christmas it is monday, december 17th, and "worldwide exchange" begins right now. ♪ ♪ >>> good morning and welcome from wherever in the world that you may be watching. i am brian sullivan. so glad you are starting your day and your week with us. here's how your money in the global markets are setting up their monday dow futures, slightly lower. we're going to watch this trade super early. futures can't really be relied on that much at the top of the five there's your look. considering we were down nearly 500 in that dow shellacking on friday, even just a 5 o

investment bank goldman sachs faces criminal charges in malaysia over the loss of billions of dollars from a government. possible consequences for the wall street. two pm here in moscow this choose they the september the eighteenth welcome wherever you're tuning in from our top story. the fate of syria is being thrashed out in the swiss city of geneva a meeting hosted by the u.n. special syria envoy stuff on de mistura top diplomats from russian iran turkey are putting their weight behind political efforts to ease years of turmoil in the region our senior correspondent is in geneva for us joins us live on the program route as far as i'm aware the meeting is in progress on the stage do we know what's come out of it. well nothing yet it's been quiet but the foreign ministers of iran russia and turkey huddled together behind closed doors we expect a statement in a press conference later to see what indeed if anything they've agreed to just just to get this out the way the talks negotiations on this new constitutional reform have been very difficult because the different sides have such d

our guest does cover malaysia. as ramy was just saying, the attorney general saying this goes to the heart of attacking malaysian capital markets. does this sort of action buy the malaysian government -- could it be effective in rebuilding some of that market integrity and investor confidence in malaysian assets? >> it's difficult to say. i mean, i think the reality is that malaysia, like much of asia, has been caught up this year and a lot of pressure from higher fed rates and trade tariffs, from tighter liquidity, and all of this has really been a more and -- lent a more negative tone. it has benefited perhaps compared to some of the other countries in the region because it has not got a current account deficit, and therefore, it has not been as inclined to come under pressure due to capital outflows that mitigate against on current account. clearly, asia has been hit and malaysia has been caught up in that this year as well. shery: as we have been talking about the implications of the fence last meeting of the y

defendants deny the claims and goldman blames those malaysia crimes on a few rogue individuals notably goldman's then celebrated star partner in life but at the end of that six five years spending spree in twenty fourteen the indictment points out goldman actually promoted him worse liason his guilty plea notes others at the bank helped him conceal bribes what he did even quote very much in line with the culture of goldman sachs that culture thrives thanks to what's. the revolving door where goldman chiefs worldwide made lawmakers and regulators and vice versa to get elected donald trump railed against goldman as a villain the symbol of the corrupt us establishment but as soon as he got in he filled his team with goldman exacts like gary cohn as chief economic adviser goldman gave cone a living presence pre broyard as senator elizabeth warren dubs it of a quarter of a billion dollars kerry cohen picks out the sacks full of mining goes into government and rewrites the tax laws marriages to cram it through and pointed called once again shell savvy investor u.s. senators railed at goldman

again malaysia's solving the well scandal nets its first corporate suspects that's right malaysia's said on monday it has filed criminal charges against goldman sachs and two of the us banks former employees the corruption scandal surrounding the state funds one m.t.b. continues to intensify goldman sachs has been understood me for its role in helping to raise six point five billion in three bumble things from. getting kickbacks to malaysian officials total almost half of the money is said to you embezzled from the fund. all talking to andrea hang in singapore our correspondent malaysia seats more than three billion dollars in criminal fines that's a loss even for play like goldman sachs but how big is the reputational damage. well this damage is rather extensive this is going to hit the nation's capital markets and according to the attorney general if no action is taken against these culprits if the crime goes i'm punished it will affect its its credit integrity is well on malaysia's part so surprisingly unsurprisingly rather this isn't the first time that goldman sachs employees have b

goldman sachs is facing criminal charges in malaysia over the loss of billions of dollars from estate investment fund while the financial services giant itself say he's the former government in kuala lumpur is to blame claiming it's a lie to the bank. investigates whether the company will face any consequences and if they do last thing. the indictment states goldman sachs not only got ridiculously inflated fees of six hundred million dollars for helping start malaysia's corrupt national wealth fund were in coalition leader and what abraham says the wall street bank must be complicit in the whole affair probably the most stunning financial scandal of the decade is the failure of governance and you allow . this one is much a bottom up and they're. complicit to the. international financial institutions and blew a second course and instead of investing it in the nation prosecutors say the funds cash was blown on a five year spending spree from beverly hills mansions to a rare twenty two carat pink diamond seethrough grand piano gift to australian supermodel miranda kerr a quarter of a bil

also this hour investment bank goldman sachs fights criminal challenge to malaysia claiming it's the victim of a massive blow. a very warm welcome to you you're watching r.t. international with me and karen great to have you with us this hour our top story the u.n. general assembly has now really adopted a ukraine sponsored resolution blaming russia for what it calls the militarize ation of crimea nearly half the member states abstained from the vote the resolution accuses russia of restricting navigation in the black sea most blasted it as one sided saying it gives kiev a permit to scapegoats russia here's how the assembly unfolded. united states is pleased to co-sponsor the resolution highlighting serious concerns with the militarization of crimea and russia's recent unprovoked attack on ukrainian naval vessels in the current strait russia's attack as a dangerous excavation and its ongoing aggressive activities towards ukraine it is yet another violation by the russian federation of the un charter and deliberate attack by the russian military forces against ukraine in the neutral o

wellnk malaysia were behind on their investigation back under the old government. is playing to a political base that voted for change. goldman is a very easy scapegoat. we have yet to see malaysia bring charges against their own fund.rs of the 1mdb this looks bad. at the same time, there are local opportunities for the current government of malaysia, to place as much blame on goldman as possible. i spoke with a ceo in canada earlier today. it has come up in terms of europe in the past. how do you separate the bad actor in a firm from a systemic problem the entire firm should because mobile for? for?ould be culpable greg: we have not just the justice department here, but the federal reserve and other u.s. regulators in goldman. that is the most serious investigation overview, and most serious threat to goldman's future. i also think -- i am not sure how much coordination has been between malaysia and the justice department. the justice department will end up driving the bust on this. it will not be detail wagging the dog, i think. ultimately, the u.s. justice depar

content just to intensify malaysia said on monday it has filed criminal charges against us investment bank goldman sachs and two former employees goldman sachs has been under scrutiny for its role in helping raise six and i've billion dollars in three bond offerings for malaysia one development one malaysia development for hot and giving kickbacks to malaysian officials in total almost half of the money is said to have been in basil's from the fund. let's get the latest now with those so if you must be standing by on wall street so if you hold a goldman sachs respond to these criminal charges being filed on monday. it also sounds like a story straight from the movie wolf of wall street this is the largest case of copper save the u.s. has seen ever possibly more than point five billion dollars was stolen and a flamboyant malaysian financier brought apartments and a yacht and private sansa with it goldman sachs is suspected to have been known about that and still having help raising this kind of money but the bank that that it's going to fight back they're saying they have been the vict

faces criminal charges in malaysia over the last billions of dollars from the government and we look at the possible consequence. as for the wall street. live from moscow to the world they say is r t international my names you know neil welcome to the program our top story the fate of syria is being thrust starts in the swiss city of geneva a meeting hosted by the un special syria envoy stuff on de mistura top diplomats from russia around one turkey are putting their weight behind political efforts to ease years of turmoil in the region our senior correspondent rod guest you spoke to me earlier from geneva the talks negotiations on this new constitutional reform have been very difficult because the different sides have such deferring views nevertheless the main sticking point is about the makeup of this constitutional new constitutional committee because it may have to either rewrite the syrian constitution entirely all amend certain parts of the to provide for an all inclusive pan syrian election going into the future there are of course other things that they're going to be discuss

malaysia charging goldman over false statements linked to 1mdb. we'll keep an eye on that story and bring you more as we get them. manus: let's quickly check in on the markets now. we've got the small bounce in asia. some rhetoric moving from the chinese side in terms of auto tariffs. citigroup had a note to buy the drop in the global markets. mixed crude geeking out the smallest of gains. looking at riggs in the u.s., perhaps the least number in eight weeks there. nejra: taking a look at u.s. futures, pointing higher after the s&p 500 hit an april low on friday. they did get pummeled along with the dow, health care and tech stocks underperforming. the 10 year yield on a 2.89 handle. we been watching the curve to see if the fed makes any changes, the mo saying if we don't get changes, we could see further curve flattening. .1%, socks features up we could see again after weakness on friday. back to the fed. it's a big week. rate hike priced in by markets, anticipated by economists in a bloomberg survey, who see the fed slowing its pace in 2019 amid

malaysia has filed criminal charges against the firm and two employees. wilfred frost joins us now it goes from bad to worst. >> malaysia prosecutors have filed criminal charges against goldman sachs saying they committed gross violations of securities laws in relation to the 1mdb scandal the attorney general said goldman sachs had fallen far short of any standard and they have to be held accountable. they've filed against two former goldman sachs employees. malaysia is seeking more than $3 billion worth of fines that's more than the $600 million goldman sachs made from the bond issuance that they oversaw for 1mdb of that original $600 million fee, the attorney general said it was several times higher than the prevailing market and industry norms goldman sachs responded and said, quote, we believe the charges are misdirect eedmisdir. the stock is off more than 2% today. a fresh 26-month low why? this highlights goldman sachs is a long way from settling the issue and has two international authorities to negotiate with. they're being accused of criminal wro

it is hard to imagine a nation experiencing a more eventful year than malaysia. and we covered it from every angle. >> is essentially, a business issue became a political issue. >> i think the wealth of the world should be shared. yvonne: this is bloomberg. ♪ i'm a long man -- yvonne man. this is a special edition of "bloomberg best," wrapping up 2018 in asia by playing back the year's top interviews. malaysia held national elections in may with the ruling party fully expecting to maintain a monopoly on power it had held for six decades. the incumbent prime minister entered the campaign facing corruption allegations for his role in the 1mbd scandal, which centered on the misuse of the country's sovereign wealth fund. bloomberg sat down with him for an exclusive interview. and offered his side of the 1mbd story. >> it started from the business model actually itself. it was not that sustainable. but it became an issue for what is essentially a business issue. it became a political issue, because my opponents wanted to use 1mbd to change a democratically elected g

a protest march in malaysia's capital has turned into a rally of support after the government decided not to sign a un convention which would have eliminated racial discrimination now malays which of the largest ethnic group in malaysia welcome but concerned that this convention would impact them florence louis has more from kuala. this rally with initially organized as a protest march to demonstrate against the government's decision to ratify a un convention to eliminate racial discrimination and the reason there's a backlash against this here in malaysia is because the majority race the malays who make up more than sixty percent of the population are concerned that this would lead to a low tide of special privileges and threaten the position of islam as the main religion in this country the privileges granted to the malays and other indigenous groups give them advantages in a range of things from business to education to. affirmative action all of these were put in place decades ago because the malays even though they were the main group considered economically disadvantaged compact

un convention to eliminate racial discrimination and the reason this backlash against this here in malaysia is because the majority race the malays who make up more than sixty percent of the population are concerned that this move to a. special privileges and threaten the position of islam as the main religion in this country the privileges granted to the malays and other indigenous groups give them advantages in a range of things from business to education to. affirmative action all of these were put in place decades ago because the malays even though they were the main group considered economically disadvantaged compared to the chinese and indians the other two main races in this country and the government mindful of the backlash reversed its pledge to ratify the convention but this rally is still going ahead people here tell us they want to send a message to the government that they will object to anything that threatens the malays special privileges a point. that we've gone through and all that we now enjoy will be affected that is what we don't want the kind of this because there's alr

goldman sachs is facing criminal charges in malaysia. the allegation is that the bank was paid above the market rate for its services. and that it embezzled billions of dollars. goldman sachs has responded with this statement. "we believe these charges are misdirected and we will vigorously defend them." well, those charges allege goldman misled investors and knew money was being taken from the government—backed investment fund called 1mdb — we've talked about that fund a lot — it's at the centre of broader allegations of multi—billion dollar corruption. the fund was created in malaysia — but the scandal is being investigated in a number of countries. for instance, the us justice department alleges at least $4.5 billion was stolen from the fund and used to buy property, yachts, a privatejet, and even to help fund movies such as the wolf of wall street. as well as this — back in malaysia, former prime minister najib razak — who set up the fund — was ousted over the scandal and is facing charges too. leesha santorelli has b

coming up, goldman sachs plunges after malaysia files charges. in is bloomberg. ♪ shery: and we have breaking news from cbs. they came out and say they completed the investigation of former chairman and c.e.o. les moon invests. now they say they -- moonves. say they found -- moonves won't get any searches payment because they have found grounds terminating moonves for cause. we know the longtime c.e.o. agreed to step down back in september in the wake of a dozen complaints of sexual harassment. now we're getting the latest cbs saying they have completed that cbs saying they completed that investigation into leslie moonves. now they are saying that he will not reaction to the bank being charged and facing a demand for billions of dollars in fines. we have the story. now, this could amendment to $3 billion in fines. >> looks like it. $2.7 billion on one side and trying to get back all the fees that were paid. $600 million on the other. so we're looking at something well over the $3 billion mark. but basically what they're glauks is that it's your

it's a story about malaysia and investment banking and a legend -- and alleged bribery but also a story about the things we care about the most in bloomberg, which is money and power. it comes down to how wall street makes money and how they wield it. carol: governments often raise investment funds. this is not a surprise or usual, but tell us about this fund. the origins of it. max: definitely. we can go a step further back and talk about how goldman sachs, lloyd blankfein says we need to beat goldman sachs in more places. and the former prime minister of malaysia was rising to power, tim weiser was this young, handsome german banker married to a former model, apparently quite likable, sort of teased because he apparently had a phd from a fly-by-night school, we think, and he was rising in asia, specifically in malaysia. he was making friends with billionaires, getting on deals, at the same time najib was rising as prime minister. najib basically said to goldman, gave them thumbs up to become a more powerful wall street entity in malaysia. as that happens, tim wisner threw these connec

and as the former prime minister of malaysia was rising to power, tim weiser was this young, handsome german banker married to a former model, apparently quite likable, sort of teased as dr. leistner because he apparently had a phd from a fly-by-night school, we think, and he was rising in asia, specifically in malaysia. he was making friends with billionaires, getting on deals, at the same time najib was rising as prime minister. najib basically said to goldman, gave them thumbs up to become a more powerful wall street entity in malaysia. it was the equivalent of the sec saying you can operate here. as that happens, tim wisner through these connections. they got a state fund to give them a ton of money to raise bonds. >> to give goldman? >> yes. known as 1mdb. so they raised millions of dollars, and goldman got $600 million, which is a lot more than what you normally make from a deal like this, to help the fund raise that money. that's where the trouble starts. carol: why did it get more fees? than is typical. max: goldman would say it's more than just fees. it's also commissions. th

months to receive training as he called it so foreign fighters mainly from neighboring indonesia and malaysia but also from arab countries and we do know that international terrorist organizations. i don't like this as they lose ground in the middle east increasingly look for other green pastures and i think southeast asia with its many many unresolved conflicts i think is an area where the ideology has real roots of dual the young man that we were just seeing pictures up there he has worked for i talked to him and he told you that he would do it again what are they fighting for. he feels he tells us disenfranchised he feels that he's not crazy pot off filipino society he is looking you know for a sense of belonging he's not a deeply religious person i think he's just an angry young men who is looking for a sense of purpose and life and he is very you know. he fell prey to islamist jihadists propaganda very easy he can be disappointed easily he can be convinced easy so it's a gray zone and yes for now i think he has accepted defeat but as you said clearly he's ready to fight again if this pro

alison a series of regular heavy showers running through malaysia almost directly west woods and turning up into the gulf of thailand we have had significant rain in there are seventy five million beaches which mirrors what's happened on the on the borneo that we did have a couple days ago significant weather there in java flooding in central java but as you can see the good scattering of these showers their long way no no long way size but they certainly are concentrated in peninsula malaysia down in k.l. and probably singapore to some degree but rather less recently insular ways those showers around but they're going to see not everywhere now we house seems rather more active on the coral sea the first tropical cycle which you can no longer see since about nine hundred ninety seven fall apart now but his legacy is a mass of of moisture which gives a potential to be realized a big showers around the coast right up through the tropics of queens dence and tearing off through brisbane south of that is does a warm possibly too hot once again as the wind comes of the interior for adelaide an

thousands of people rallied in malaysia's capital kuala lumpur to celebrate the government's decision not to sign a u.n. treaty against racial discrimination malays who are the country's largest ethnic group worried that their rights would be breached and fall and snowy it was at the protest. this rally with initially organized as a protest march to demonstrate against the government's decision to ratify a un convention to eliminate racial discrimination and the reason there's a backlash against this year in malaysia is because the majority race the late the make up more than sixty percent of the population are concerned that that's going to a low tide. privileges and threaten the position of islam that the main religion in this country. the privileges granted to the malays and other indigenous groups give them advantages in a range of things from business to education to. affirmative action all of these were put in place decades ago because the malays even though they were the main group considered economically disadvantaged compared to the chinese and indians the other two main race