>> asian markets is set to open. we will see if japan's wednesday fall was just a blitz with the rally picking up pace. it was close on wall street but no cigar. 20,000 asiled to top oil in the dollar dropped. unreliable and non-credible. a third banker is convicted in singapore's investigation into malaysia's fund. alibaba is slammed for those estate goods. it is back on the u.s. markets

notorious list and says it is not happy about that. this is the second hour of a brake asia coming to you live from bloomberg. anyre glad we are not on notorious list. i am betty liu and we will be digging deeper into that alibaba story. --king about the dow 27 20,000 that we are not reaching quite yet. we will see of the rally will last until next year. >> some have said it has gone far too fast. the open most thoughts are off except for seeing some weakness. you guys were talking about

20,000. the two major indices that people have been talking about waya good part of the past five years. first 18,000, 16 then 18. i has reached 20,000 several times. that is falling short over the past few months or so. that is your level right now, 19,000 -- 19,400. korean index is seeing some green. asia is managing to buck those losses that we saw in europe into the u.s. volumes are light. when it comes to the foreign markets, to currencies i'm , 69 u.s. cents roughly speaking.

it is all about short-term momentum when you look at construction spending and higher consumption. the other currency i am watching is the swedish currency. we saw a lot of strength coming through saw a lot of strength cg through against the euro. it is at a two-month high. perhaps a little bit of opposition when it comes to easing. bond yields, there we go. we had a drop overnight. we have to figure out a way to tell her program. -- our program. we have to work with what we had. and australia's is on the way up. the spread is narrowing which a lot of people have flagged getting a little bit more extreme. the drop that we are seeing here in 10 year yields, it comes down

to oil prices falling and that is ratcheting down expectations of inflation. we will talk more in a moment. but no decent session sort of consistency. asian markets monday into wednesday. betty: u.s. stocks sliding with the dow hovering around 60 points away from 20,000. i would going to bring out the champagne when it happens? su keenan is joining us. this drives the major benchmarks and the vix dropped. a bit of red there as well. dropping the most in six months is a disappointed because of their ground minute -- unit. unexpectedly dropped,

pushing the stock down after hours. the estimate, they were up at the regular session down after hours. the swiss at elion.ker act a surprise twist to one of the health deals between johnson & johnson and this was based drugmaker. now reporting in exclusive talks to what they refer to as a strategic transaction. interesting to see how that happens. s&p 500 has had its biggest fluctuation this year since 2008. look at that box on the far right, that is the point differentiation from trough to peak. last time you had that big a box it was in 2008. if you think it has been a bumpy ride you're not alone.

are starting to see predictions on oil as we head toward 2016. what are people saying? >> are we getting to momentum play, we had that oil down a bit as you mentioned because of the stockpiles rising. let's go in the bloomberg. relativeu to see oil's performance. the commodity indexes rising. for the first time since 2013 it is set to outperform the entire basket on pace by the biggest margin. in terms of predictions where we are going most analysts say we are going higher. take a listen. next prices are likely to manage -- average $67 for branch. prices are likely to be higher in the first half and in the second. what we're going to see is in the first half of the year you in greeceefinery runs

so demand for crude is going to increase and at the same time crude supply is going to remain pretty level. forhere is an increase 2016. striking distance of 54 in today's market. and later in the show we will hear from kathleen on an oil bond correlation. right now it is looking like it is moving higher. >> this was micron after a pretty good look for the company. do with the fact that estimates were much higher than anyone expected. it jumped 8% in extended hours. it was up 10% at one point. 68 after an0 82 average of $.46. micron sees new areas for demand .

robust overall demand is the story here. the first's get to word news with courtney collins. courtney: president-elect donald trump is forming a white house trade office with a prominent china critic at its head. peter navarro will advise and what are turn on them -- innovative strategies. carl icahn will advise the president on regulatory reform and the sec. the u.s. military is to return thousands of hectares of land to japan after 20 years of negotiation. beofficial ceremony will held in okinawa where the military will hand over the most land since 1972. the island is home to about two thirds of the 38,000 troops currently stationed. the japanese government has been criticized by giving the go-ahead to a new military base

in okinawa. sticking with japan, it will spend nearly $2 billion to boost maritime security. particularly around disputed islands in the east china sea. the money will increase coast addd personnel by 200 and three marine research vessels. the islands are known a differently in japan and china. china is amending better ordination. heavy smog covering much of the north. beijing's air was 18 times above internationally accepted danger levels. thefic was ordered off street and people warned to stay indoors. the environmental protection ministry said cities cannot deal with the problem individually. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries.

i am courtney collins. this is bloomberg. former official has been convicted in involvement in a monday -- a money laundering case. not see the latest from our southeast asia -- let's see the latest from our southeast asia correspondent. the banker we're talking about, 34 years old, he five years.or the court found him guilty for extracting justice. he was found to try to temper with witnesses. what we know as well as that he tried to hide his illicit wealth. a reported $18 million, u.s. dollars that he received in secret profits from transactions. we're told that he downplayed

his trade. this is a man at the heart of all investigations better known low.e the charges but the court described him as unreliable, not a credible witness. the obstruction of justice carries a jail sentence of up to six years and a fine as well. -- has he faced other charges? sevenda: he faces separate charges but the trial will happen in april. prosecutors say he could face even more charges. singapore as you can understand, nt is clamping down on errab bankers. this is the third conviction.

allegedly misappropriated thousands. the biggest money laundering case to hit singapore. ubs, standard charter, falcon bank crowd to have committed breaches as well. investigations happening around the world. from singapore to switzerland. at least six different jurisdictions involved. we have not heard the end of it. >> thank you. cashing in on india's cash crisis. we talk about the opportunities in india. will talk about a potential in emerging market real estate. our guest will be here in a moment.

this is bloomberg. ♪

>> this is daybreak asia. of the a quick check business flash headlines. googles a timeless vehicle unit is talking to honda about putting self trimming technology into the automakers cars. hondaal can be struck, would be the second partner after fiat chrysler. toeral motors and ford try reach an agreement but talks stalled. how to had announced plans to sell a ton was cars sometimes around 2020. is in talkst-elect over air force one. he told the tycoon the replacement job can be done for less than $4 billion. met them at his resort in

palm beach, florida. arcade said they will try to bring the program down. he had said the budget for the new presidential plane was out of control. >> we will get it done for less than that and we are committed to working together to make sure that happens. to get the president-elect my personal commitment on behalf of the boeing company. this is a business that is important to us. newne: the company says a download pace is the fastest in app store history with 40 million and four days. critics say the $10 fee is too steep and some have been less than glowing.

there were little changed as the retreat spurred in part by the fed, a hawkish tone last week. bringing the managing partner. great to see you. before we go over emerging markets you just came back from a trip to india. of the markets we are watching very closely. is their opportunity here in india? guest: after so many trips to india we are thrilled that based on the prime minister's bold move that india is pivoting in a very different track, a different vector. -- latest democratization

demonitization. there are lines around every as people convert to a digital way of banking. betty: where is the opportunity for you? guest: india has been around entrepreneurs. the players who have been leaders now have institutional capital support, sovereign wealth funds, private equity, blackstone is the largest landlord in india. virtually all the sovereigns are there not visiting. i suspect we will have an office presence in mumbai in 2017 and we will embrace india as we have latin america.

you just raised $350 million in a fund to invest in latin america. when you look at opportunity in emerging markets is that where you are looking? where exactly? guest: we are selective and emerging markets can be daunting. we have always focused on the most compelling markets and for india,wth asia, namely latin america, mexico and argentina represent the areas. opportunity for us. as an investor we're seeing opportunities like we have not seen in 15 or 20 years. betty: like what? guest: the peso is down at an all-time low. the public companies across the

board have not done so well and now enhanced by the downdraft in the peso dollar. that is one example. brazil continues to bottom. we talked about this. it is one of our favorite markets. betty: why do you think we saw emerging markets across the board just fall precipitously after president-elect donald trump's election: there's a bit of a reset. it will take a while. our perspective is that it is not going to become so crystal clear. for some time. it may be months or years. that is ok. there is enough institutional interest in these markets that what the leadership in this country thinks about these emerging markets is not so primary forest. betty: china, appealing or not? guest: not so much. there is a lot of money in china.

we are sensitive to capital inefficiency and looking at new york and how many major chinese investors are here. paying for property here suggesting there is an excess of capital there. betty: just talking about this price we have seen an interest-rate the most in a decade that we have seen and it has two were you as a real estate investor. how does this impact the timing of your investments? guest: interest rates are still low and we are not a leveraged investor. if we were dependent on leverage like a lot of property investors, we tend to invest in operating platforms with little or no leverage. betty: we will leave it there. alibaba -- up next. the u.s. has put alibaba back on

its notorious markets list. this is bloomberg. ♪

>> this is daybreak asia. alibabathe u.s. has put back on its annual blacklist of companies that sell counterfeit goods. over the past four years, alibaba has stayed off the list but now it is a different story. another setback for alibaba. >> after four years of staying off the so-called notorious list they are back on. santa has his naughty and nice list but the u.s. government has this notorious list. it is unclear as to the reason why. alibaba is alleging that potentially it could be because of what is happening in u.s. politics. in a statement they said unfortunately the u.s. decision

leads us to a question of whether it acts aced on the facts or is influenced by the current political climate. we know what that is, the election of donald trump. now with regards to china having ruffled a lot of feathers, the drone incident that has to be tariffs as well as currency manipulation. this is one more thing they are pointing to potentially. i also want to point to october u.s. trade group pressure could be another factor here. a few months ago in october. 18 groups signed a letter appoint -- pointing to the u.s. tr. they are still not doing enough to stop counterfeits from coming on to its site. the taobao site. and includes real things

allegedly fake things. third-party sellers go there to sell its products but alibaba says it has a hard time verifying what is real and what is not. they said they are disappointed in the decision to include it on its list. thatg it ignores the work it has done against counterfeiters. .2 to: what does alibaba defend itself? >> it seems like a fair amount of things. tighter policies to stop copyright infringement. to make sure that they are not fakes. that gucci is not spelled with a k or something. easy for brands to request those fakes to be removed. to say there is a process we can go to to make sure that things that purportedly our hours are not ours into can take them off. 380 million products have been of the websites in

2016. alibaba points to the fact that this is more than double what they took off in 2015. they are saying to the u.s. tr, we are doing even more than we did the year before. how can you be doing this to us? u.s. tr saying you are not doing enough because of pressure from these trade groups and, the 18 groups at sign on. we are seeing the share price reaction down .6 of a percent. it does not sound like a lot but this is a $1.5 billion hit. yvonne: thank you. much more ahead. securing a lifeline as it heads for third straight annual loss. we will have details from tokyo. that is next.

this is bloomberg. ♪ generosity is its own form of power.

you can hale being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1.

>> it is 830 in singapore. where half an hour away from the open of trading. did reach close to the seven-year low. betty: your watching daybreak asia. news get to the first word at this hour with courtney collins. willney: saudi oil continue to explore and ipo. it is looking at markets from hong kong to new york for what could be one of the biggest

share sales in history. the foreign minister has downplayed tensions after congress passed a law allowing totims of the 2011 attacks attacks to sueta their government. he fights his abrupt dismissal. -- they have returned to take control. it holds more than 18% of the group. the carrier is based in bolivia and the government said it and the pilot are to blame for the disaster. he died in a crash that came when his playing ran out of fuel.

many of those who died came from the brazilian football team. organizers of the tokyo olympics have announced a budget of between 15 and $17 billion. toallocates 6 billion construction and 7 billion for services and up to 3 billion for contingencies. the prime minister stepped into the discussion when costs soared. there were original -- the above $12esign blend billion. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. yvonne: let's see how asian markets are shaping up. dave: the benchmark is down. that basically comes down to the pullback we are seeing across equities in japan, half of 1%. a lot of analysts are calling

for this rally to continue. we are hitting a bump today. this is on the nikkei to 25. have a look at this chart. they are saying 7% over the next 1660nths taking us to assuming that we still get these continuing and fonts. where roughly at $24 billion in net inflows into that market. the other thing i want to mention and let me take a step back and have a look at another market. asx 200 since we are talking about forecasts for next year. t. rowe price are calling it possible including marty's and the outlook for commodities, that could take us to 6000. if we do that a percent pop over the next six months or so. something to keep in mind when

you look at markets in australia. they are already at the highest levels since august. the budget coming out in japan and you have two great decisions out of asia am a taiwan and out of the philippines. betty: what is getting your attention? david: you are talking about nintendo earlier. 40 million downloads. namesher thing, the other , lawson. mitsubishi will be beginning its offer for the shares to make it wholly-owned unit. that is the price they gave in september where you saw the share price pop catching up to roughly these levels so that begins tomorrow. 8650.

and the semiconductor company. the stock has doubled this year. we started at 1000 and we are upgrading yesterday. a lot of this comes down to the fact that demand for the company's products is expected to hit the roof. and within that space, is the king of that. yvonne: thanks. the u.s. military will return, to largest tract of land japan in over four decades. good morning. it looks like -- let's talk about what this means for the u.s.-japan relationship. and -- reduces the u.s. administered areas in a canal and by 17%. we are talking about more than 4000 hectares of land in the southern end of oak and our.

the u.s. returned a canal back its worldn 1972 after war ii victory. the prime minister and the u.s. ambassador to japan caroline kennedy held a ceremony to mark the handover. u.s. forces japan saying that japan has made sufficient progress in the construction of helipads and roads in the area that were a condition of the return. vehementere is opposition in oak an hour to u.s. military presence, so what is the government saying about this? shery: there is a strong opposition to the u.s. presence, okinawans feel of -- feel a burden. we're talking about two thirds of the 38,000 u.s. troops in japan stationed on the island. there had been protests about these facilities being built around that area because locals

were worried about endangered animals and plants. resentings have been u.s. troops there but this announcement coming as well after another decision by japan's supreme court to move another u.s. base to another location in okinawa instead of making the american base lead completely as they wanted. we have bittersweet victory here. the prime minister saying they want stronger ties with the u.s. and emphasizing that they do want to reduce the burden on the okinawan people. yvonne: after struggling to deliver consistent profits, japan's display has gone back for more money. 630 $7 milliona cash injection from the government-backed fund which is as -- the biggest shareholder.

about japan's display and the lifeline. level: they company was -- the anagramwas formed as an of three different units. gone wells have not largely because of competition from china and south korea as well as taiwan. the problem is the company relies for half of its revenue in good times served it well but in the recent lot -- slump of iphone sales have hit hard. apple is looking to move toward gdinext generation display, is extension is facing untested

technology. >> japan is not the only one here with struggles, other display makers as well. let's talk about one that you have been focusing on that could have a huge impact on the market. about canon --ng a company not many have heard of. this is the only manufacturer that can make machines that make screens and it has been courted by every single display maker in the world. these machines which are monstrosities that are 100 sealedlong in a vacuum environment take a year to make and cost upwards of $85 million. the company can make a handful of them a year. the backlog is about two years long right now. that is what the ceo has told us in the interview last week. >> thank you.

, caching on on the plans to take india cashless. we will hear from the cd -- from the ceo of one of the mobile payment platforms. this is bloomberg. ♪

>> this is daybreak asia. >> a quick check of the business flash headlines. is the latest high-profile finance figure to face jail for insider trading. the london judge gave him a year in prison after he admitted using privileged information to trade shares of and co-oil and car and energy ahead of public announcement. he was based in the london office and oversaw $4.5 billion. coca-cola will pay nearly three aint $2 billion to buy

company in southern africa. the company said they were in negotiations followg the takeover of sab miller. it will be subject to review the tory approval but is expected to close by the end of next year. nokia has sued over patent infringement saying it refused to pay world peace. they settled a legal battle over mobile phone patents. nokia stopped making phones but kept its patent. refuses to pay for technology. the indian prime minister's decision to ban high-value notes canceled a 6% of cash in circulation. it was intended to combat corruption and tax evasion but the hardest hit has been the shop owners and hasek industries that employ more than 90% of indian workers.

kathy hayes joins us with the ceo of money on mobile, the largest phone-based payment network. what is next for the move and his company. kathy: we are happy to welcome harold montgomery to our new york studio. five years as the ceo of money on mobile. a company that has been operating for five years in india. what a time to have gotten into occurred,use this has has launched a debate. critics say it is out of touch with reality and there are winners like money launderers who have earned big commissions of people try to change those large notes into bank deposits and there is the utterly devastated who include labors and small family farmers. is this a legitimate criticism?

>> this is a sweeping policy decision. we are talking about a single decision that affects 1.2 billion people. either winners and losers? sure there are. the money changers made a killing on this deal. the electronic payments companies are doing very well out of it because there is a drive to go digital. arefarmers in the fields suffering badly. ithe stores had a surge of businesss but -- of but they have collapsed. there are definitely losers. itshe reserve bank released minutes on thursday and they show that one of the main reasons governor patel and his colleagues surprised the market and did not cut the key rate is because they are waiting to see the move on the

indian economy. they say it will be temporary. do you agree? announced onon was november 8. it was a surprise to everyone. it was very tightly kept secret. we are six weeks or so into demonetization. raising interest rates has a lot of other knock on effects and it may or may not be helpful in the case of getting over this. will the effects be temporary question mark they will ripple through the economy. you will have crocs that rot in the field and do not make it to market. could that mean there is pressure on foot prices later? it is entirely possible. i think the effects will ripple through the economy for a quarter or two. >> there was an interesting report that -- about yields on data of credit card transactions. they have been surging. payments make up 3% of

and how mucharea difference can this make? >> it is a great question. there are 20 million to 12 5 million credit cards for a population of one point 2 billion. it is a small number. they accelerated. for many people it was the only way you could transact. is it sustainable? we will only know that a year from now. i tend to doubt it is sustainable. credit cards are expensive. the retailers do not prefer them. it is doing -- we will see how this moves the needle on transactions in general including but not limited to credit cards. >> you have a mobile payment system but this is the country where one in four people have access to the internet. what demon make up etization does?

>> people deposit cash, it where notgital, smartphone dependent. internet penetration is quite low relative to the world. this is the answer for moving people into digital transactions with or without a bank account, it doesn't matter. >> the average indian is making the u.s. equivalent of four dollars a day, how much are you charging them? how does a business model work, how do you make money? >> the less money you make the more transaction intensive you are. these are small numbers. you may have seen retailers to say no credit card under $10. the processing fees are higher than the profit margin. that is not true in our case. we charge a small aount

typically funded by the merchant. recharge, we are paid a percentage by the mobilephone company. it is free to the consumer. they are small transactions but we do a lot of them and we get a percentage on almost everything that goes through our pipe. like a great system, it sounds a great deal. investors not impressed yet. microcapmpany is a company traded in the u.s. and the awareness of the indian situation in the u.s. is low. most have been focused on china. the deep -- this is a rare event that americans are having trouble grasping. it does represent a giant growth opportunity for company. portend a global trend, is that where the world is heading? >> i think it kobe does.

you may have seen a move that happened in venezuela where the government he monetized -- de-monetized the note. even the u.s. government has taken -- talked about taking the action.l out of >> will they continue this drive toward pushing everybody toward mobile? >> i think so. made changes. this is a long-term move toward digital transactions and taking cash out of the economy. >> is their political liability for the prime minister? >> it will be interesting to see in --he elections are that come up in 2017. we will find out what the political act lashes. india is two thirds rural and

the population has been hard hit. and confused. the people i have spoken with on my trips to india are having trouble understanding what really happened here. that is two thirds of the vote. we will find a with the political effect is -- find out what the political effect is on the prime minister. bit morerned a little about how this is working and what may happen next. back to you. betty: a brave new world there. thank you. much more ahead. china is stepping up the fight against pollution to clean up its choking air. how effective can it be? details on that coming up. this is bloomberg. ♪

>> this is daybreak asia. betty: i am betty liu here in new york. time for a quick look at what is coming up over the next few hours here on bloomberg television. heidi: we have alibaba on the notorious list again. it off theafter made list. alibaba has been putting in a solid effort. ill be looking at that story and talking about the u.s. dollar, quite a ride ahead of trump's inauguration in january. westpac's ceo.

with themore to go dollar rally. and spending up big to realize dream, but how with a foot the bill? we will look at those stories in the next couple of hours. >> smog blanketed much of the north and beijing is demanding coordinate better emissions cuts. how are they looking right now, a little bit of improvement? >> a slight improvement. there were concerns that we may revisit the air apocalypse that we saw in an -- 2013. levels approached 18 levels

above what is internationally accepted. and issuing red alerts because of that. let's check out this terminal chart. it tracks air quality in three major cities. it has spiked above the 300 mark is hazardous territory three times this year. reminder for officials. is hazardousthe president addre and promoted the use of clean energy for winter heating saying natural gas and electricity can be used instead of coal. coal powers two thirds of china's energy needs. last year he threatened the use of the iron hand to combat pollutants. how effective is it likely going to be? >> just a reminder. said he would use the iron hand back in 2010 but

since the president has made environmental protection his economic agenda we have seen a response by authorities tightening environmental laws that raising the fuel tax and the like. looking at past efforts to crack 2015 of theution in 338 cities that were monitored, it he percent failed to meet official standards according to the environmental industry. balancing when it comes to economic activity and protecting the environment. at least seven provinces lower their economic growth targets due to pressure for it pollution control. hopefully there haze will decide time for the holidays. some big-name interviews to tell you about coming up. you do not want to miss them. on thursday, bank of america's brian moynihan ranges for an

exclusive interview. you will see that first on daybreak europe from 2 p.m. hong kong time, 1:00 a.m. if you are watching in new york. this weekend, you can hear the co2 jamie dimon in conversation with bloomberg's business week. check out her scheduled to see the lineup. that is it from us. down to several market opens. to watch.s the one we did see a bounce back yesterday but futures could continue on the declines. the rest of the region looking not much better. we have more next. this is bloomberg. ♪

david: did you feel that there was a glass ceiling? >> terrible people that said to me, i do not think a black person could ever be ceo. david: september 11, tragedy occurred not far from here. >> i cared a great deal about them and their families. do you ever leave home without her american express card? when i am at home it is always with me. >> will you fix your time, please? david: