♪ yvonne: janet yellen says the u.s. economy is close to her objective and will continue to improve. andthe rest for bribery corruption. the court says that there is not enough evidee against him. deutsche bank reported to report more job losses to come. daybreak.oomberg asia

talking about the pretty powerful move in the dollar that we saw last night after janet yellen's comments. she signaled that they are close to nearing the two men make -- mandate. but, she is not sure of the timing. the market taking a very hawkish sign. let's take a look at the market open. how is it looking? david: just to mention a few things, it will not be long before we see the market open. in japan, takata, shares are suspended today. essentially, they are verifying the authenticity of the report. i have a statement here, on the website as well, in japanese -- i cannot speak japanese to save my life -- long story short, it said shares are suspended in

tokyo. several reports out there. toshiba think right now that they are considering options. no decisions have been made. they are trying to find out what the number is and what the cost will be. we are looking at the client ¥280fore toshiba, roughly a share. have a look at the agenda for the day. p.m.ne tools, 2:00 aussie job comes out and about about 30s comes out in minutes. we could get anything between 500,000 net jobs. that is a horribly hard to predict number.

let's have a look at some of the market moves right now. we get started with what is happening there in australia. above 7000 atust the moment, reversing modest losses. 200.sx based out ofany australia, the stock is up the most for 10 years. have a look at the yield here. 10 basis points to the upside. we have the open in japan. andme shift the screen, have a look at what we are seeing there across markets. 19,100just a touch below . you could basically put this down to the fact that the yen is closer to 115.

ubs, some estimates on the dollar-yen. one 10, 115, 112. in other words, more yen strength ahead. theme wrap things up with cost index. several stocks we are watching there. getting an upgrade. the price target was upgraded, on the back of what is hopefully an improved outlook for both companies. yvonne: thank you. let's continue with samsung now. before we do that, we have to look at things going on in the world. first word news. haidi: we are told managers in some part of the bank are to be identifying the bottom 20% of

performers to prepare for cuts. deutsche bank has also flashed -- slashed bonuses. ratese lower interest limiting what business the big things can take on, ubs ceo expected to take on asset management this year. >> i think we could get billions and billions in money, but structurally, low rates or negative rate and consumption is also factoring how to think about on boarding. hasi: with that, petroleum reported just over $1 billion with record lng production. the australian company is

forecasting 90 million barrels equivalent. the budget is cash flow neutral at $35 per barrel. a record number of those drivers, over 7 million customers signed up, topping expectations for national and international growth. netflix has expand to 30 coie global news, 24 hours a day, powered by more than 2400 journalists in more than 120 countries. yvonne: thank you. a south korean court has rejected the request to reverse the de facto head of the samsung empire. the judge said there was not enough necessity to justify his

address. there seeing here a pop in samsung shares this morning. the morning that it would be difficult for the court to justify this arrest. what has been the mood since the decision? >> this has been blanket covered here. icd television screen in the newsroom here. it has been around the clock since the decision came down last night. it has been constant coverage. it is, as you can imagine, front englishs for the dailies at the korean dailies. very different pictures there. we have video of that. we were there as he left the courthouse. in fact, this is probably one of the most well covered "no from korea.

nottated stonefaced and did get into 10 tatian to talk to the press, or give a single comment. i'll be got over night was the statement from the central district court judge saying that there was not enough reason or the arrest. justify again, usually an arrest what is put in place if there is a risk of flight ahead of what is expected to be down the road, an official indictment, as the prosecutors investigate and build up the case. yvonne: how big of a relief is this for caps on? the -- first samsung? this is the result that samsung wanted and expected.

he was sent to a detention center after the hearing in seoul. i have heard that he has since then released. this allowed, again -- it lifts the uncertainty, and they can perhaps go forward with that. again, a lot of these allegations of bribery and abuses of power and influence peddling stem from his moves or samsung smooth to consolidate his power that allegedly got him .n trouble in the first place shares: samsung chairs --

up to present. thank you for the wrapup of the decision. .he newest bond market sold off janet yellen said that fed would hike a few times this year until that end of 2019. let's get the latest down from kathleen hays. she is here with more now.

>> inflation is still running below the 2% objective, and by some measures, there may still be some room for progress in the job market. for instance, which growth remains fairly low. a broader measure of unemployment is not quite back to the prerecession level. in that clip, she is reading from her prepared remarks. on bloomberg television, reacting to what she said. he said that he found her a bit more dovish, compared to the

hawkish expectations that others had. said -- fed officials not worried yet. yvonne: we saw the selling off of the cpi figure. is that a red flag? >> the 10 year note had the biggest junk on the day the fed -- biggest jump on the day the fed met. let's look at the numbers. chart, you arerg looking at a very important e cpi.ent of the cor the orange line, housing cost, risk. if you take those out, look at how it has peaked and come down. the blue line, it has also

peaked and come lower. the gauge is the pce. maybe that is why janet yellen is not sounding more worried yet. yvonne: thank you. we will look ahead at the ecb later on as well. ahead, why taiwan may dominate chinese relations later this year. we will talk to a former white house official on chinese affairs later this hour. we will ask mark matthews why he thinks investors should invest in financials. this is bloomberg. ♪

♪ just around 9:15 in tokyo right now. this is what the nikkei is looking like. shares up 1%. of dollar-yen, we saw

reversal overnight. let's do a quick check of the latest business flash headlines. an irish drugmaker will pay $100 million to settle claims that it u.s. unit illegally raised the price of an autoimmune treatment. nowr the deal, they licensed the right of a cheaper product to a company in the u.s. the biggest revamp into decades, the marketeverse trend. the stock is now 30% after the ceo took over. they did not detail job losses among the more than 26,000 staff. a dairy producer is surging in

buying aner australian and new zealand grocery business. they returned the vegemite brand to aussie ownership. the goal is to make the company a great consumer goals business. janet yellen said she is ready to raise interest rates if the economy continues to strengthen. for more, let's bring in mark matthews, here in hong kong, usually based in singapore. good to see you here. people are saying this week would be about clearing the air, in terms of theresa may and brexit. yellen, also ahead of inauguration day with donald trump. do you think we got the clarity? where are we standing with these issues?

mark: i think they are all minor with donaldared trump. clearly the u.s. is still be stock in the world. in his speech, what he does on monday, those are all important things. absolutely, with yelling, we have more clarity on rate. they will go up. with the british, there will be a hard exit. i think we already knew these things before. yvonne: when it comes to the class, what will happen with the dollar, you have the fed wanting to raise rates, donald trump with these policies that could continue dollar appreciation. then, he had a comment about the dollar being too strong. can he have both worlds here? should we start pricing in risk? mark: usually when government officials want a currency to do

something, it does the opposite. the reason he is saying the dollar should not go up is because there are lots of reasons it should. make america great again, and a weak dollar, they do not go together. yvonne: how much of a low could we see in terms of u.s. markets? what will happen? will it be the first hundred days where you will see this inflation intact? mark: i don't think he will go play golf on monday. i think he will come out guns blazing. the big thing is the taxes. the market could be poised to take another like up -- leg up. i'm optimistic on both. yvonne: a stronger dollar, does this mean that news?

we do see some stability with the e.m. front. growth, they don't have as much debt -- has e.m. moved on? mark: every coin has two sides. the side in the u.s. is they will cut taxes, etc., but the other side of the dollar coin, if you look at the dollar index, the largest component of that is the euro. goingropean economies are lower. i don't see as much dollar with the euro. now, they are turning around with almost no exception. merging currencies should not fundamentally be weak. be could still break

them down a bit. the last point is the japanese. one major central bank in the world that is happy to deviate from fed policy is the doj. yvonne: what does this mean for your positioning? ahead of inauguration day, you say, guns blazing on monday. you like financials. about european banks? mark: i think financials are a good place to be, more talking about interest rate hikes. when you look back at the correlation between stocks and treasury yields, the stocks they go down when yields go up are the ones that pay big dividends like health care, food and beverage.

those don't do well in a rising rate environment. if you look back 10 or 12 years, what does well is financials. the margins of the bank expands. it is the sign of a healthy economy, etc. what else is there to say? what about in terms of the headwinds. i think we're hearing more about the rhetoric when it comes to trade policies. when we do hear things like labeling china a currency manipulator, or he drops tpp. our markets here in asia more vulnerable? mark: i think you are right. the major risk in the world is china and the u.s. are going at each other like this. . think it will be like that i did not see that coming went

trump was on his campaign trail because he was not talking about -- you know, you're not allowed to go to the south china sea, taiwan is up for negotiation. these are incredibly bellicose things that he and his cabinet are talking about that china cannot back down from. the major risk is a conflict between the united states and china. i think that is more possibly a next year story. yvonne: great to have you here. up next, live in think report -- apore.of for -- sing this is bloomberg. ♪

♪ yvonne: think of poor three-year 'soperty -- singapore

three-year property slump. 'sng kong's loss, singapore getting -- gain? has imposed, we are talking 30% here. that is hefty. i want to show you this particular charge, the white line. hong kong has had multi-year gains. i also want to show you this bart chart, showing you how the cooling measures are finally catching up. singapore may start looking attractive again. they have had a three-year slump, particularly because of cooling measures. may now be flat.

the two closely watched property markets of asia. we are seeing dividing trends. yvonne: what kind of price drop rb talking about here and increases from the two markets? linda: the drop this year may be limited to one and a half percent. for hong kong, more bearish. secondary slump for the year. remaine prices may resilient. if you are looking for a new place -- i know prices have jumped a record, and that , i'm sorry december to hear that.

yvonne: the homeowners in hong kong are thinking you -- thanking you. next, more from the microsoft founder next. this is bloomberg. ♪

♪ a live look out of sydney, more than 90 minutes into the trading day. positively up for 10th of 1%. rebound in the aussie dollar after we saw that dollar come back with life after janet yellen's comments. breaking news out of australia with the latest job data, paul allen has the details in sydney. : a bit of a mixed bag. 5.8%, worse than expected for december. , whichectation was 5.7%

would have been the same as november's figure. change, 9300t times drop. 13 and a half thousand jobs created in december. that did the estimates. the other difference is the participation rates. that increased to 64.7%. looking forare work, which probably explains the uptick in the unemployment rate to 5.6% to a lot of change to the dollar -- none at all. interesting to see how the bank of asia will interpret the numbers. when they met in december, the reserve bank had votility. they seem have settled down at the end of 2016. bag when it comes to the aussie picture for jobs. let's take a look at the market reaction.

a lot of those in the aussie dollar. : we are looking at -- what are we doing? 7509, typically you see a big move. in terms of this from the mean, what the actual number came in. you understand why it is flat. if you look back 40 hours or so, obviously you have the assumption of a massive drop in the aussie dollar. thet of it comes down to fact that the dollar reversed most of the losses on tuesday. there is your dollar surge, that is where we are, roughly unchanged. i will not spend too much time on that. i talked about the dollar. have a look at the bond markets. overnight there was a spike up in yields. u.s. tenure was up 10 basis points.

just 1, 242. there is the yield in japan. there is the yield for australia. of as much as 10 basis points. 2.7 a, roughly speaking. it makes a lot of sense, in hindsight. let's have a look at the equity markets. we are getting a little bit of a positive momentum coming through great especially when you look at the cost be index. samsung is up last time i checked. that is up 2%. 225, 117 -- i am getting confused looking at all of these currencies. dollar-yen roughly at 115. my mistake. australia, doing the heavy lifting. when you look at the nikkei 225, every single stock is up in that index. about 200 out of the 225.

except for a few. there is one big decline or. have a look at shares toshiba. long story short, there are a lot of media reports. it could be looking at a wider loss. at its nuclear unit we are down 11%. the company said no decision has been made. we are still trying to calculate your it -- calculate. thank you. toshiba down more than 10%. airbag from takata is suspended from trading in tokyo. they want the courts involved. that systemsws propose the courts become involved in the debt restructuring. nikkei also says shareholders are likely to oppose any reductions in it comes to takata

debts without legal interventions. samsung, rejected the saying there is not enough evidence to detain him. he is accused of perjury and embezzlement, and of playing millions of dollars to a confidant in return for influence. the investigation includes a merger of two samsung affiliates. two former currency traders from deutsche have been found guilty of cheating the banks in singapore by making false trade. they pleaded guilty in separate hearings. they admitted to using their bank accounts in 2009 to win preferential rates on the dollar. they will be sentenced later of three to six months. is taking legal action against sony music to regain control of songs he wrote with john lennon of the beatles.

his deathd to sony on of michael jackson. it makes it possible after time. the rest will follow later, ending in 2026. hotearth has set and other year record. 2016 was a 3rd street new mark. international weather groups seek last year was the warmest ever made. going back to 1880. this is the first time in 12 years the planet has set a new high. the agencies new's -- used slightly different measures. all of them have played a major role in the planets warming. global news 24 hours a day, 2600ed by more than journalists and analysts. this is bloomberg. the center of at the wall street session once again. goldman and citigroup beat

expectations. it was deutsche bank that made the headlines. one in four of bankers will not enjoy any bonus for last year. she has the latest from the story. there is warning that it could continue. ? >> anytime big bank kills businesses, it will grab attention. deutsche bank has been a rocky ride. down the last two sessions. the revolution -- revelation, canceling bonuses was also combined with reports from people close to the matter. managers have been asked to identify the bottom 20% of employers. different source within the bank saying the global markets is this is making front office cuts this week. hascurrent business plan been to eliminate 9000 plans through 2018. not clear if these are on top of

that. there was nothat tie between the bonus cuts and the doj settlements. the multibillion settlement settled just yesterday. the entire settlement process and negotiations are long drawn out. let's talk about goldman. headline late in the day that cut 60% of london staff according to in unnamed source. ascounted by goldman, spokesman by bloomberg says no decision has been made. cuts accordingly had to do with brexit. goldman in the spotlight, blowing away all estimates for bond trading revenue. boosted the bottom line at a big way. earnings of $5.08 a share. billion.e was 2.5 one

i don't know if we can go into bloomberg and look at goldman's profit from stock trading versus want trading. most recentn the quarter. goldman's bond trading revenue was 78%. similar story at citigroup, where bond trading was 36%. profit was up 7.1%. goldman ceos have been cutting costs to adjust to stricter capital requirements. all banks, including city and goldman up in a big way. since thebeen of 20% election. if you look at the ratio of versus bonds,s you can see that most recent quarter, it has come up. big gains versus the prior quarter, where it was a client. yvonne: -- a decline. yvonne: microsoft founder, bill

gates says he remains hopeful despite the rising wave of populism that brought brexit and the election of donald trump. he said localization will continue -- globalization will continue. sure i see a reverse of globalization. it is no longer the case that every move you see out there is a step towards globalization. the tophink of companies in the world, are they more global today than they used to be? you think of technologies, whether it is software or drugs, are those global in nature? is there more travel around the world? machine translation will make it easier to see what is going on in the other parts of the world. i am hoping this will shift that backmore of a -- shift into more of an embrace of trade. say, is stepping back to

immigration policies, trade policies, who are the losers? can you help out? have we moved to quickly? you have not argued about china. you seem to be more optimistic about them. in the course of those 20 years, i don't think either expected to see them come to globalization. does that surprise you? is great that china joined wto. that they participate in markets. they have been a huge contributor. they have been -- done a lot for poverty. there are financial imbalances. democratic deficits in the way they run the country. i would not say they are a model, but they are doing a lot of things right. the fact that they want to

engage in the world, i think that is great. >> do you see them beginning to emerge in philanthropy? countries, we see the tech sector. , a lot of thea tech people are doing great philanthropy there. in china, the same thing. they are still in their 40's and 50's. still pretty young, but whether it is health, environment or education, starting to get a lot of good dialogue between our foundation and there's about what has worked and what has not worked. yvonne: that was microsoft founder bill gates with bloomberg editor and chief. coming up on "bloomberg " we speak to in analyst. find out how he thinks the

relationship between washington beijing will change with donald trump calling the shots. ♪

♪ yvonne: 8:30 in singapore. just half an hour away from the open of trading. you are watching "bloomberg daybreak: asia." he expects the government to sell more of the company's shares midyear. he said the government will choose underwriters in march. >> different post bank, different post insurance. we are taking care of letters and packages. two years ago, november 4, three companies got the purchase of exchange at the same time. two years ago, november 4.

in service holding company japan postbank and japan post insurance. month, the this government of japan announced they are going to sell additional shares of the holding .ompany the japanese government owned our service 100%. they are supposed to sell down to one third of the share. they will continue to keep one third of shares permanently. they have to sell to third of our shares. >> in what timeline? >> it is not a binding deadline yet. they say by 2022, they want to sell two thirds of our shares. sowed --t ipo, they sold 11%.

we bought back shares also. it is not clear yet. the amount could be about 1.42. 20% of that means about 25%. they want to do it twice. >> that would be this year? by the end of the year or summer? they only said last monday they will choose the underwriters. by the end of the month they will choose underwriters to sell shares. because of, political schedules and so forth, we are excepting. they will do that sometime in summertime in japan, this year. yvonne: a quick check of the latest is this headlines. lower says profit was far

than eight claims. it is facing a demand for $75 million, and many more millions of potential -- potential fines in a dispute. google indonesia paid $395,000 in taxes. it says it made only 1.6 million in pretax profit. indonesia is investigating apple, twitter, yahoo! and facebook. sued by the obama administration claiming they pay white workers over minorities. they will cancel federal does not if oracle change its practices. they responded saying the complaint is political and without merit. india has approved a plan to raise cash by selling stake in five state run insurers. cut by a quarter to around 75% to meet debit --

deficit. the government has garnered three and a half billion dollars against a target of more than 8 billion. donald trump is becoming the 45th president of the united states. there will be a trade war, the implications of that next. this is bloomberg. ♪

♪

this is part of protectionism. so far, the u.s. government has not launched any censorship or control of the entertainment. it toave only done manufacturing and defense industries. sayingre congressman there will be more examination and control for entertainment. that will be about protectionism emerging the u.s.. there willncy said be no winners. >> china is the most protectionist country of very large countries. they have very high tariff barriers and very high nontariff trade barriers to commerce.

they talk much more about free trade than they actually practice. for directntial conflict between china and the united states is a likelihood. that is not just true on the economic side, it is true over things like taiwan, north korea and south china sea. the chinese do not like that. yvonne: let's continue on with the founder. he will live by a south hollywood studio if one were for sale. he advised donald trump of forthcoming entertainment deals. >> this is certainly part of protectionism. government has. not launched any censorship or control of the entertainment.

they have only done it to manufacturing and defense industries. sayingre congressman there will be more examination of entertainment. that will be set back. that will be about protectionism emerging the u.s. will beidency said it bad for both parties, no winners. into u.s. is a good thing. films come oute of china. a major source of income, the new growth part will have to come from china. in india it is a large market, but there is hardly any growth. the main market is the english

language films is in china. if china were to react -- retaliate, it would be back. i do not wish to see that scenario materializing. chairman ofd the the association of the u.s. to pass message to mr. trump. let's leave entertainment industry alone. no war please. >> do think there is some way in which entertainment is different? you talked about chinese having of americane number films coming in. is the answer to have no limits, or is there something about entertainment where people should be able to limit what comes in and what goes out? in china, although we say said,is control, as i there is also different categories of production.

there are differenthannels into china. just absorb some chinese investment. in the u.s., more and more companies are doing coproductions. -- that is one way of control. i would like to say that the it were toment, if control investments, that would be a bad thing. was a republican congressman, what would you say to encourage me to trust you to be able to run a big part of hollywood? it is still a company run by americans. we do not interfere with the content. i just want to profit.

the chairmanwas speaking to bloomberg's editor and chief. time for a quick look at what is happening here on bloomberg. rishaad: we are looking at these trade ties and trade tensions. alikelihood there could be trade war between china, as opposed to a potential one. an interview coming up with david wright, the sco. looking at brexit, a lot of financial companies and banks suggesting they will move their european headquarters out of london. i am asking if this is a red herring? we will look at also what is -- 24 hours to go before we have donald trump in the white house. global financial relation and

stock. what does that mean for markets overall? looking at the comments from schwarzman. we are looking at the riverside of what other comic -- at the other side of what other tomentators are saying donald trump. a deep dive into what is going on in the aviation industry. pacific cutting costs. turnaround taking place when it comes to the second biggest international airline. that is all coming up. with.: more to come ♪

♪ mid in sydney, 8:00 on wednesday evening in new york city. coming to you from bloomberg's asia headquarters in hong kong. this is "bloomberg markets: asia." ♪ rishaad: the samsung air of voids of arrest from bribery and corruption. the court says there is not enough evidence against him. going the way to future rate