betty: the white house says the president won't release his returns as is team offers alternatives. yvonne: china dismisses western democracy is flawed that says it is ready to work with the new administration. betty: theresa may will be the first foreign leader to meet the new president with trans x trade on the agenda. samsung repairs its investigation into overheating phones. sources say ill fitting batteries will be betty: blamed. this is daybreak asia coming to

you live from our u.s. and asian headquarters. i'm betty liu. 7 a.m. it is just after here in hong kong. we are 48 hours into donald trump has presidency and we do see his inauguration speech summed up in two words -- america first. thetone coming from president very similar to the campaign from. still not sure whether to reheat this trump rally. betty: you nailed it on the head. campaignind of like a speech rather than an speech but we will be covering trump from every single important angle that matters to investors. we'll talk about trump in trade, trump in the dollar, trump in currency manipulation. did i miss anything here? yvonne: dollar weaker and treasuries higher seems to be the trend.

let's see how things are kicking off in new zealand. pretty slow on this monday morning. you continue to see us truly a, wech out for iron were -- see that with the drop-off in activity ahead of the chinese new year celebration. stocks pretty much flat at the open. japan, watch dollar-yen as well. some strategists seeing the inflection point for the trump trade. we still see some risk off this morning with the currency, 114 spot 36. look at what we can expect in the region this morning. what has the mood been like in the u.s.? betty: it is kind of reflected in the markets right now. no one is really quite clear

what the trump trade or what trump means for the trade. you mentioned getting off to that controversial start facing protests at home and abroad, breaking a campaign pledge to release his tax returns. su keenan has the latest on all things trump. he said issa for you a thousand percent -- that was his first official act after the big swearing-in ceremony -- it was widely watched by americans, mainly on television. he won't of whether release taxes breaks a campaign promise. overs likely to be carried once the monday through friday press comes back in and the trump administration has its first issue. it administration says

sunday show that they don't care that people voted for him. have 100,000 signatures that demand he releases tax returns. trump: we have to give her devices. we have no choice. [applause] terrorism, and i said it yesterday, has to be eradicated. just off the face of the earth. this is evil. su: president trump followed up on his the. with then a big issue press as to the size of the crowd watching the inauguration. he believes that media undercounted. : 250,000 people literally in the all we

constructed. that was 250,000 people. of the 20 block area up to the washington monument was packed. : there are some that believe this issue of was there a record crowd or not is a showing of the thin skin trump was criticized as having during the campaign. betty: and there has been a dispute about the size of the crowd. the day after the inauguration here, donald trump, how is he reacting to all of that? after showing the next a the inauguration was huge, not just in d.c.. we have in new york, london, every new york city -- every major city, the remain are crowds. a lot of celebrities were involved. trump did not react until the next day, sending a couple of tweets. the first one was rather crinkle of the crowd and the

celebrities. he said i watched the protest but was under the impression we had elections. why did these people vote? he also criticized the celebrities saying it hurt the cause. he said peaceful protests are a hallmark of our democracy. even if i don't always agree, he says i recognize the right of people to express their views. showsas an issue that trump is unlikely to stop tweeting out. he will be meeting with prime minister theresa may. that's the first summit for a new president. betty: seems like he will keep his twitter handle as well, he might have to watch two different twitter handle. --na has since the new york sent the new president and all of leaf, congratulating him and

offering ways the nation can cooperate. from state tone media. usually we hear blasting from the editorials but this was a shift. i think they're facing the reality they have to deal with trump, the good and the bad. we will have to see -- we have wants to slap chinese imports with a tariff. use tweets.t they conflict each other -- so there is an all of ranch coming from state media. they congratulated the president on this term -- i hate this term but china uses it a lot --

when/when -- it is an overarching term that fits they want to say. it says the two countries should strive for an up dated, more updated version of globalization which is what the chinese president said at davos when he talked about the threats of protectionism and the moves against globalization and the pursuit of trade wars. china has taken some steps that it pointed out. the say we are opening economy to more foreign anticipation and relaxed regulations on things like securities and insurance. also senior advisers telling bloomberg they are going to take more beefed up efforts to protect universal property rights. so they want to make it

work, but where does china draw the line with trump? there are two big issues on the geopolitical front, the south china sea, they have been reclaiming land there and allegedly building military sites there. that is something rex tillerson, the secretary of state nominee has pointed out that a would not allow china access to those islands. that's a nonnegotiable point according to beijing. theone china policy, taiwanese president visited recently, that was a big source of contingency. -- big source of contention. the defining core interest. then a complete opposite tone in

a people's daily editorial. it is much more strident in it nationalism. it says the perils of democracy are very evident, touting the relative stability, slamming western democracy is flawed. betty: certainly more to come on this u.s. china relationship with trump now firmly in the white house. let's get to the first word news with heidi. new push to end the fighting in syria begins with russia, turkey and iran holding talks in cosmic stan. the u.s. has been mostly out of the lives since relationship with russia deteriorated over the election. u.s. ambassador to and will attend as an observer. trump's pick for

secretary of state looks almost certain to be confirmed as key republican credit drop their opposition. john mccain and lindsey graham say they will vote for rex tillerson despite concerns that his relationship with russia. mccain said the new president deserves the benefit of the doubt. the foreign relations committee will vote on monday. energy arabia us minister says opec and other producers have cut supply by one week 5 million barrels a day, more than the 80% of their collect the target. bestsay it's one of the agreements producers have had. a meeting indiana agreed to ensure 100% alliance. turkish lawmakers have given their approval to the president's campaign to secure sweeping executive authority. members voted in favor of making the president head of the executive and abolishing the job of the primus are.

it triggers a referendum that could be held in early april. the opposition party said that changes would concentrated angels amount power in one single authority. day --news before hours global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. yvonne: samsung is preparing to announce what caused some samsung seven galaxy note funds to catch fire. investigation is a key part of rebuilding consumer confidence. it seems like it is batteries more than design. guest: it does seem likely going toill say it's allow you to blame the smartphone and that is what caused the overheating of the phones.

to give a expected briefing on that this morning. own 20% of samsung sdi. the cost associated with the line ofnd the entire galaxy note 7 is expected to be about $6 billion or more. to damage is pretty hard quantify but is considered to be .he biggest crisis early on, samsung did point the finger and say batteries were part of the reason for overheating. it seems some of the overheating problems continued after that. said theave

announcement was made just before apple announced its product and there was a rush to get things done. overall, samsung's business seems to have held up despite the business with the note. a range ofung makes products that are of course known for their consumer products. it makes chips as well and lots ofother things, whole range products really. it shipped division is probably one of the key drivers for its business doing well. shares surged 43% despite this with the samsung seven and we are going to get fourth-quarter earnings tomorrow and get a lot more details about which divisions performed well

and less well in the fourth quarter of last year. betty: much more ahead. we are talking trump this hour. talking tough on china but will he follows through on labeling china a currency manipulator? we will look at the track record with beijing a little bit later. yvonne: good for business, bad for the people. we will you're an honest assessment of brexit. this is bloomberg. ♪

betty: we are counting down to asia toss first major market and, trading in sydney already underway and you can see the .2%, buthere, up about a lot of economic numbers coming out later this week in asia. this is a break asia.

i'm betty liu in new york. yvonne: a quick check of the latest business flash headlines. we watching toshiba shares after the company said it seeking $4.4 billion to cover its nuclear write-down. they are selling a 20% stake in his memory chip operations. potential investors include canon and tokyo electron. toshiba's facing pressure to secure investment for a british nuclear power project. the chairman of foxconn is said to be weighing a joint assessment, saying the facility would cost more than $7 billion and could create 50,000 jobs. he's also saying while u.s. protectionism is inevitable, that american consumers may not be willing to pay higher prices for projects in asia and at home. a medical laser maker said to be scoring strategic options,

including a sale is -- as the interest in the technology goes up. it value around the alien dollars. it's attracting interest from companies with an interest in aesthetic treatment. yvonne: ahead of one of the u.k.'s biggest private equity the terra firma chairman said it would withdraw from the eu and could mean opportunities for firms like his. >> britain is going to have to continue to follow money -- to borrow money. people will put a risk premium on that. interest rates will start to go up. that will lead to bankruptcies and two opportunities. sadly, this is one of the irange things about business,

think it's probably bad for a majority of people. but i think my business is probably going to be good. >> on what kind of scale? how big will the opportunity be? give me some other numbers. how high will they have to go? >> i'm talking over 20 years, that's a small change each year. it's similar to a frog getting boiled. rates, thatinterest is going to take some time. but the uk's going to have to continue to pay for its debt. people talk about the j curve. u.k. never worked in the the u.k. did it for 200 years, constantly evaluating.

the only way we could continue to pay for our debts was to increase our interest rates. the differential between us and europe would need to be several percent. that was the chairman of terra firma. much more ahead -- here why the peterson institute says trump's proposed order adjustment taxes only going to hurt the u.s. economy. this is bloomberg. ♪

yvonne: this is daybreak asia. betty: last week in davos, business leaders discussed whether populism could help global growth. the ceo of blackrock says this speaks for them and they expect the trump at economic team to be

loud, noisy and strong in the first 100 days. >> in our conversations with the proposed economic teams, they want to be loud, noisy and strong in the first hundred days and i think that will create some optimism. hand, we have quite a bit of uncertainty about how we are going to pay for it. strong.oud, noisy and us from arlington, virginia. is itnoisy and strong, going to be better for the economy? adam: it is going to be a boom/bust cycle. the question of how do you pay for it, they can't pay for what they are currently proposing. we may get to years, possibly

three and since we are close to full employment, we will probably get some wage growth. it is not bad, just unsustainable. betty: one of the ways he's going to pay for it is this order adjustment tax. except that's wrong. even if you believe the numbers, it doesn't a for it. cuts they are already talking about. the order adjustment tax, depending on who you ask, is essentially a tariff, which means it's going to increase the competitiveness of u.s. economy, take money out of consumers raise and it is going to prices by 15% on average across a wide range of goods. people who don't like tax increases, it's a strange thing to do. my understanding is that it's going to exempt exports

from taxes which means more money in the coffers for the u.s. government. adam: i literally don't understand how that works. from taxes, exports you are decreasing your revenues, so the question is do you make up enough by growth and exports. this is essentially an illegal subsidy to exporters and you're not going to make it up by growth to exporters. it seems like trump has been contradictory when it comes to issues like the dollar and china. how do you think this relationship is going to develop? can they maintain a positive relationship and avoid a trade war? adam: you can always maintain a positive relationship. we had next and go to china and after decades of war and hostility, you can always rebuild things. you work quoting mr. fink and

this is going to be loud and strong. usually if you are strong, you don't have to be loud. it is less about president trump being inconsistent -- i don't want to say contradictory. it is more does he choose to make this a conflict or not. i don't think he should. betty: does the u.s. even have labelverage to slap the of currency manipulator on china? adam: you are right about that. the u.s. does have leverage. the question is whether it is justified to be used now and whether it would actually work in the sense of giving more benefits to the u.s.. far moreremains powerful than china. if you things that are unjustified and visual -- and unfair, people start supporting china and if you do things that impose costs on

china, it doesn't work. betty: thank you so much.

yvonne: 7:30 a.m. monday and hong kong. just 30 minutes away from asia us first major market open. betty: it is 6:30 sunday evening in new york. a little rainy today but clearing and warm, unseasonably warm in new york. are watching daybreak asia. now to the first word news. heidi: chinese state media has congratulated president trump and signaled beijing is ready to work with his administration. trade is expected to dominate his third week in office.

he will be meeting theresa may to talk about a post brexit deal. a president and his team has step up its war with the media and refusing to release his tax return. secretarypine finance starts a two-day visit to beijing today looking for $15 billion worth of investment. china agreed to the deal in october. he's openly courting beijing to philippine infrastructure as part of the pivot away from washington. thousands of people were removed from their homes after a -- an incident at a chemical plant in southern japan. the plant along to an energy company. it's not known what started the fire. has retained its rank as the most expensive housing market in the world. a survey of housing

affordability from the median home price was eight teen times the annual household income. the lack of affordable housing has in a headache for the cities chief executive. secondary home prices jumped nearly 8% despite new taxes and caps on mortgages. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. look at how the asian markets are shaping up on this monday morning after trump 's inauguration and the events that followed over the weekend. another trading day in asia and getting a glimpse at trump -- the reaction to trump taking office. as crudeks climbing caps its biggest gain in a week ahead of the opec meeting, above $53 a barrel.

treasuries and did little changed on friday but it did yield atthe 10 year 2.3%. we did see the dollar continued to slip on some reaction in the yen strengthening against the dollar, below the 114 mark their. we will have more on the yen us move later and something to watch out for on the japan front. we have the prime minister delivering a policy speech in parliament this afternoon. a busy economic calendar ahead with gdp numbers coming out in many countries in asia this week. sofia: that would be south korea, the philippines and taiwan. today, we have singapore inflation and taiwan's industrial production out this afternoon. australia fourth quarter will be

out wednesday and commonwealth ,ank says that economic data even as the currency feels the pressure of a recovering greenback, aussie caps a fourth weekly advance and now weaker by about .1% after opening slightly higher this morning. turning bearish on australian banks and with the events in gold prices, keep an eye on what is going on on the afx. demand climbing for a fourth week. let's check what is going on with the futures market. we can pull up the board to see how asian equities are set to track u.s. market movements. japan and korea tipped to open weaker but a rise for chinese and hong kong stocks there.

more cash was injected into the market. yvonne: donald trump's trade talk got even tougher in his inaugural address. he sits down with theresa may to discuss a post brexit deal. kathleen hays is here in hong kong. very interesting what we heard from trump last week, he was going to have an early trade deal with the u.k. has that sentiment shifted after his inauguration speech? broadly, we knew donald trump was talking about being brave on the campaign trail but when he got ready to this oath of office and beyond, he made it clear he's not living up on that at all and talked about using the details, every single trade detail to make sure the letter of every deal is adhered to. let's listen to what he said during his inaugural address. every decision on

trade, on taxes, on immigration, on foreign affairs will be made to benefit american workers and american families. borders fromct our the ravages of other countries making our products, stealing our companies, and destroying our jobs. what is interesting is as soon as he became president, the white house website reflecting donald trump, talking about withdrawing from the transpacific partnership, renegotiating nafta if they can't get the kind of deal they want. he says he wants a fair deal for workers or will withdraw from nafta. let's jump into our bloomberg chart. looking at enough to impact on american workers. though right line is u.s. exports to mexico and the blue

line is imports to the united states from mexico and you can see those continue to improve. that purple line is what happened to american manufacturing workers. perhaps china's currency policy in the 80's come a going forward into the 90's has had more of an impact there. to themexico's import go united states. the mexican president says he is seeking a respectful dialogue with donald trump. he is meeting with donald trump on january 21 -- yvonne: theresa may coming to speak about a possible trade deal. apparently a white house aide told bloomberg are going to lay the groundwork for a post-brexit trade deal that kicks in once brexit is past. theresa may wants to build on the special u.s.-u.k. relationship. not just on trade that national security.

it actually let her to be more aggressive pushing for brexit before was voted on. australia has said in last couple of days they will open talks for post-brexit trade and investment deals with the u.k. so theresa may seems to be making some headway but the devil is in the details when it comes to trade. betty: some tough weeks ahead for trump and may. guest: we certainly do and i want to call attention to something our bloomberg intelligence team called my attention to. consumer comfort has been declining. republican consumer confidence at 43.9. changets from 52 and from 54. independence, maybe those are the people who voted for trump. theresa may may have other brexit headache in the making in brussels.

u.k. lawmakers looking to see a face of ruling says she can't or brexit herself. then a coalition might go back to the drawing board. we have seen the past two weeks the markets grappling with this one big question. does the trump rally have any legs? at least one analyst is suggesting we watch one particular currency pair for clues. >> and i think this gives it away. we are talking dollar-yen. the level we are watching is 115. lookis an obvious place to . that being said, what is different is, so if he touched on it a few minutes ago, we are going into this week where u.s. deals have started to climb

again relatively speaking. 2.5%nt from 2.3% to about and that's where we are waking up this morning. that being said, does the dollar-yen follow? the correlation is clear as day. important to's have a look at the decisive move up back above the yellow line. we hit it twice last week. that a sickly means the trump trade is back on. this early enthusiasm for mr. trump is starting to wane. how is the market positioned on the yen and what >>the betting looking like?

the market is still net short. and thehat shoot up leverage funds started filling up short positions were obvious reasons. what we have seen is those short positions have started to come off. they've in reduced for about a thousand contracts. that is the backward looking indicator. week, welds and this have four that auctions. the reason i bring it up is what we have started to see is when has beenme up, demand very good. look at australia. that will be following the debt auctions this week to get an indication of what markets will

want yields to be. when yields start to go up, we will start watching this chart again. a new line in the sand. thank you. trumpt, more on president and his trade tactics with china. the areas the u.s. will likely target. ♪

downe: we are counting you to asia plus first major market open this morning. this is coming from singapore. this is a break asia. betty: that dollar-yen rate very important. a quick check on the latest business flash headlines -- we chat remained china most popular app.

usingpulation frequently the messaging app. companiesree internet dominating the market. another 10 send app was the second-most widely use. utility companies in california are seeking more than a billion dollars to promote electric cars. firms are looking to boost spending on charging stations to meet the goal of 1.5 million zero mission cars on the road by 2025. california pushing forward on cutting greenhouse gas emissions despite donald trump's promises to kill several -- to kill similar programs. " top the north american box office, raking and $40 million to stop the movie was directed by m night shown one and stars a man with 24 different personalities that

kidnaps girls. betty: i only have three different personalities. yvonne: i don't know if i can watch that one. on the global front, tensions may be rising but the next guest says there is no trade war. good to see you. we heard america first and president trump sounding more like the campaign trump during his inauguration speech, turning more protectionist. executivegned an order to withdraw from tpp. is this the real thing now? guest: it absolutely is. we need to keep in mind that what trump is focused on is jobs. politics, these things are a distant second to

the u.s. economy, job creation and wage creation and wage rises. is one of of the tpp the key political elements. i have been talking to people a there is just and not the political sentiment for tpp to go forward, regardless of ,he pragmatism of the deal there's not the political sentiment. forne: what does this mean this reflation theme that we have seen? how lasting can the impact be? it is all about inflation. the political risk we do see and we do see higher inflation expectations and higher prices, but is that going to derail from creating higher investment in the u.s.? guest: i don't think so. i was looking back to 2012 trade numbers and exports from asia

are down on four years ago. the only one that is really up his vietnam. trade,s of the reflation it is more that than anything else and that is a bit of the unwinding of some of the fed actions. asia, youres to japanese yen discussion, one of the things we need to remember september bank of japan meeting where they talked about growing the monetary base by a hundred percent over the next 12 months. this is not just a donald trump dynamic, it's a bank of japan dynamic working into the straight. it is interesting you mention that. take a look at the trade alan's. we have this chart for our viewers to see and we see the trade deficits with china have stabilized a bit and has come

down a bit over the last couple of months. trade you shift the balance moving forward in a trump presidency? guest: i think there are a number of things. when donald trump took the taiwan call, he was signaling politics and economics are on the table. he will get there by hook or by crook. he will make sure he focuses on those non-tariff bearers and subsidies coming out of china. the tax rebates and so on. he wants to level the playing field between the u.s. and china. this is the main focus of where he's going. when we look at the trade discussions, when we look at the regulatory orders he's made, we look at things like small company creation rising over the next two or three years. that is down dramatically over

the last eight to 10 years. we look at ages -- we look at wages rising and this has to do with immigration and regulatory reform. these things won't necessarily happen in the next six months, formation andny wage rises, we expect the reflation trade to gather some steam. we think a lot of trade today are it early, so there's been a lot of excitement. those are some pretty bold statements. small business formation created dramatically. what regulation is actually going to do that or no regulation? the simplification of health care, what you have had over the last several years is the creation of a lot of one-person shops because people have not wanted to hire. so small company formation has slowed down. if you see tax reform, regulatory reform and health care dialback in terms of the

onus on small businesses, that will push for small business creation. askne: if you were to george soros, everything we are talking about, we are just blowing hot air because according to him, donald trump is a raving lunatic who doesn't know anything about what he is saying. i want to play part of it for you. soros: right now, the uncertainty is at a peak because it is impossible to predict exactly how trump is going to act because he hasn't actually thought this through. he did not expect to win. he was surprised. he was engaged in building his brand. bety: so he says you can't on anything. if there's one thing you can bet on, what would it be? tony: if you can bet on

anything, soros should not been a traitor from the start. there were independent economic think tanks that had evaluated, one called the tax foundation it looked at the tax plan in the wage increases. they expect to do something like a 6% wage increase or something like that. there were independent people who looked at this stuff, nonpartisan people. local view and trump has his political view and we will have to see what happens in markets. tony, thank you so much. much more ahead. donald trump has been threatening to label china a currency minute later. we will ask whether it will even matter this time around, unlike back in 1994. this is bloomberg. ♪

betty: this is daybreak asia. trump has madent no secret of his opinion on china, accusing it of currency manipulation throughout its election campaign. asia bring in our chief economics manager who is here to explain a little more about this. what's the biggest difference between what we see now and 1994? in 1994, the u.s. was labeling china as a currency minute later and the big thing they had was china's admission into what was called the wto and what was then called the general trade agreement. the u.s. that unless you make was a majors, that

hold over china and promise them to lift restrictions on foreign currencies and by the end of 94, they reached a point where the u.s. lifted the tide on china. was theirit clear it biggest leverage over and now they don't, if you don't reform your exchange rate, we won't do x, y, z and it's one of the particle differences in the last 20 years. betty: how different is the chinese economy compared to back in 1994? side of it, the base, it's much less export dependent now. in the accounts that came out on friday, consumption is now driving growth and services are bigger than the manufacturing sector and exports were a net

drag on growth in 2016. none of that could dismiss the importance of china's exporting base. nato possible growth drivers, as we know, it is the case that if the u.s. was to tackle china with across the board tariffs, the impact might not be as severe as one might inc. given the rebalancing going on the economy. americanat about companies? what is their support for these new tariffs? guest: if the new president was to push ahead, it would not just hurt china and chinese humpy's, it would hurt those american companies operating in china and 200,000s a figure about u.s. jobs supported by china trade. between 2006 grown

and two and -- and 2014, so it's -- there's a lot for the u.s. to lose as well and you have to

♪ >> taxing questions, the white house says the president won't release his returns. china dismissing western democracy as flawed, but ready to work with the new administration. theresa may will be the first foreign leader to meet the new president to discuss atlantic trade. samsung prepares its verdict on overheating phones. batteries will be blamed. this is the second hour of "daybreak asia" live from

bloomberg's u.s. and asian headquarters. i am it on man and hong kong. >> i am betty liu. japan is just coming on line. one stock we will be watching at ata come alll be tak these bankruptcy concerns around this company certainly affecting the stock price and the overall sentiment and the auto sector. yvonne: absolutely. we saw that last week already. we saw that on friday as well. in the meantime, markets honing in and focusing on everything from trump's inauguration speech and the developments over the weekend when it comes to the cia, the press briefing about the attendance at some events. let's get the latest from sophie kamaruddin. uphie: asian markets waking after an eventful week.

so far, weakness across the , the nikkei two to five down over 1%. stocks on theuto decline. given what you just said about the auto space on trump's onments, we do have takata our rater given what you just discussed regarding speculation over the company's turnaround plans. americanse with trump's first policy, goldman sachs says that could live to japan machinery makers, so we will keep an eye on those players today. look at the asx 200, gold soers rise given the events, with that, i want to check in on what is happening with gold prices. gold still above that $1200

level per ounce. europe,eeing events in crude at that mark. friday, we are still seeing a decline in dollar strength, given the speculation about donald trump's policies will be taken on board by investors. >> are you seeing any sides of this flagging at all? sophie: we are seeing that. dollar strength, and the yen moving, a marker of sorts around the dollar strength. gaining against the dollar, below that 114 level as the trump era officially kicks off, signaling perhaps the bears could be in control today, and

the yen gaining against all g 10 peers. we will have a policy speech from shinzo abe, and we will see what that does to market reaction, especially after the boj governor and what he had to say about dollar strength. >> sophie kamaruddin on the markets. let's get to first word news with haidi lun. president trump's pick for secretary of state looks almost certain to be confirmed as key republican critics drop opposition. grahamcain and lindsey said they will vote for rex tillerson despite concerns about his relationship with russia. john mccain says the new president deserves the benefit of the doubt. the foreign relations committee will vote on monday. a new push to into the fighting in syria with russia, turkey, and iran holding talks with the damascus and representatives of ard opposition groups. the u.s. has been out of the loop as relations with russia

deteriorated before the election. it is not clear if the group will meet face-to-face. samsung electronics is expected to blame batteries made by an affiliate for its flammable note 7 the all square when it holds a news conference shortly. samsung's investigation will say that he regularly sized power units were the cause of overheating and the fires. it may have cost the company $6 billion. toshiba share seeing a pop at the tokyo open, the company seeking money to cover its nuclear write-down. saidnsourced report selling a 20% stake in its memory chip operations would generate $1.8 billion for potential investors.

toshiba is facing pressure to secure investment for british nuclear power projects. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> donald trump's presidency start,hat controversy breaking a campaign pledge to release his tax returns. su keenan has more on this. his first trip was to the cia? of business, order which some say is contradictory because he has been highly critical of the cia. itself isration another controversy on the size of the crowd, and as you mention, those tax return surely will be a big issue as we go into the week. es he would not

release them, breaking a campaign promise. if you look at what the crowd , significant crowd. that is one controversy we will get to, but first, his remarks to the cia. let's listen. >> we have to get rid of isis. we have no choice. [applause] islamic terrorism, and i said it yesterday, has to faceadicated, just off the of the earth. this is evil. nothing surprising there. we have heard those remarks, but take a look at the size of this crowd, because trump has waged war with the media, claiming the large media outlets have downplayed the size of the crowds. listen. that was 250,000 people. the rest of the 20-block area

back to the washington monument was packed. su: this got a little ridiculous and has become mocked, his press secretary gave huge pronouncements on the record size of the crowd, which has been discounted, and now there is joking about alternative fax from the trump administration. >> a lot of concerns as the first press briefing was on issues like attendance numbers are not more important issues. dispute over the size of the protest in washington, d.c. and other cities the day after the inauguration, so how has trump reacted to that? su: in typical fashion, some talkinghe day after, about the crowds themselves. a record crowd in washington. in fact, such a large turnout from women's groups that they intended to walk to the white house and when i enable to do

that because the crowd was so large, several hundred celebrities, major cities in the expressingsewhere, their discontent with president trump. let's take a look at how he reacted. the first tweet mocked of the protesters, saying something to the of fact i was under the impression we had an election. why didn't these people vote? then, to bring hours later, he issued a different sounding tweed where he acknowledged people's right to protest and said these full protests are a hallmark of democracy. notably the protesters wore pink hats in defiance. the week ahead, trump will be signing important executive orders, plans to meet with theresa may. they will talk about trade issues, terrorism. trump's executive order that was already drafted on his first day obamacare,could gut

also likely to be a big issue going forward this week. >> su keenan, thank you. china has sent the u.s. president on all of branch, congratulating him on his inauguration. let's bring in stephen ingles for more on this. fromhift in state media past editorials, slamming trump, what is beijing signaling here? or aret just me there parallels to how china handles the media. tweets, and beijing uses state media. they are giving different and contrasting views over the weekend. all becauseto them there are a lot of different messages. they congratulated trump, hoping for a win-win cooperation. if there is any term that says

nothing, that is that, win-win cooperation. similarily struck a tone, saying the two country should strive for an updated more desirable version of globalization. president xi jinping at davos said protectionism and trade war is not the way ford for globalization. editorial, china listed the number of steps china said it is taking to open its markets to foreigners, relaxing restrictions on foreign investment in long standing closed areas, banking, insurance, others. senior officials say they plan to announce further steps to protect intellectual property rights, which has been a big thorn in the side of u.s.-china relations. past editorials, china has blasted what they perceived to be the great wall of protectionism coming from the

new and mr. trump. there are some anti-trump stances, not anti-china, but viewed that way. >> where does china draw the line on this with the u.s. and trump? they are not willing to compromise on the one china policy. is off theiwan table. we do not discuss it, that is what china is saying. also, the south china sea, claiming about 80% of the south china sea and reports they are weaponize and those islands. aree are areas china says nonnegotiable. another editorial i alluded to is from the people's daily, much more strident in its tone. i almost want to crumple it up and throw it away because this is what they have been talking about for 60 plus years, the communist party of china, saying democracy has reached its limits

and deterioration is the future of capitalism. article on this. this is something china has been saying a long time, so. you so much. stephen engle on u.s.-china relations. much more ahead, inauguration hangover, why the head of suntory sees tough times ahead under the donald trump administration. guess says the honeymoon is already over for the new president. he joins us to explain. this is bloomberg. ♪

>> this is "daybreak asia". i am in yvonne man in hong kong. >> i am betty liu in new york. the eyes of the world on the

u.s. let's discuss all this with my next guest. we have been asking this question, is the trump rally going to last? >> i think it has reached its peak short-term. he ran on hope and change and one fairly. fair to talk about the crowds at the inauguration -- unfair to talk about the crowds at the inauguration and protest. now we have to see what he will do. tomorrow will be the first full trading day. a lot of things will not get done by trump for the first couple of months as congress fights back and forth. foreign policy will be changed, and he can do that quick the, but domestic policy on taxes or obamacare will take the summer

before we have meaningful change. >> this is why you are saying this is peaking? >> we have had a gigantic rally, d, and uncertain perio earnings have not been great. we will have a lot of earnings in the next couple of weeks. ge, ford, not that great. >> you are worried? >> not worried. we are long overdue for a 3% to 5% correction, which is not crazy. seen 3810% corrections that there was nothing wrong, so 38 10%ertainty of -- corrections that there was nothing wrong, so there is uncertainty. >> i want to point to a chart, the dollar-yen trade, the 115 level is technically and

historically significant according to some analysts. so we are at this level right now, and it is interesting because you see it hit 115, then the dollar falls dramatically. you see that as an indicator for the trump rally? the dollar started to fall because he backed off on some of his infrastructure plans for spending because they will take longer. the problem really is that the world is having currency wars, everyone wants to dbase their currency to help their exports. that is the bigger problem. we have to get through these currency wars. everyone wants to do the same thing, and it does not work because we all do it. the dollar should technically be strong because our rates are higher. our 10 year as higher than most other countries, and that to me is the strength of the situation. you talk about trade

tensions, looming trade wars, do you think these concerns are still over done after the inauguration speech? could the u.s. stand to lose more, especially tech companies with 10% of revenue coming from china? they has a very good, and will change some of their opinions. the original opinions on trade wars were a little outrageous, but his cabinet is good and he will listen to them, and there will be some posh string here and there. there will be some import tax, but you can't have trade wars. i know we all want to be number one like muhammad ali would say, but we all can't be number one. other countries want to be number one too. we will give him time and see what he can do. he will do the best he can. with elevated inflation

expectations, could this catalyze a more significant bond to stocks rotation now? what could it mean for equities moving forward, you mentioned that inflection point, the trump trade back in fashion, could that lead to a crowded trade like an equity bubble? >> you may have a good second half in 2017. i think the first half for equities will be somewhat disappointing. littley flat to down a bit. i think interest rates will stay low, so i don't have a problem with the bond trade. to 2.2year could go down zero because a lot of these programs will take longer to take affect in the first part of more optimistic on the markets in the second half of 2017, not the first half. beok, the second half could

this which here, but how will the fed respond to that? >> there will definitely be two rate hikes. if the economy slows in the first half, one, probably little chance of three or four. i think oil will decline because most of the countries need the money, so what the opec, they always have to an agreement, but no one lives up to the agreement, at least what i have seen in the last 10 years, so to $50. be $45 it retail sales continue to be disappointing, and the two areas where trump is going after is defense and health care. as i said to betty liu, we may go to some uncertainty in the next couple of weeks and months. >> always great to have you. a quick check of the latest business flash headlines. saudi arabia's energy minister

says opec and other producers have cut supplies by 1.5 million barrels a day since january 1, more than 80% of their collective target under last year's deal to stabilize prices. the bestt is one of agreements producers have had. a meeting indiana agreed on monitoring to ensure 100% compliance. weighing ahairman is joint investment with apple and a display factory. an article is saying the facility would cost $7 million and could create 50,000 jobs. the u.s. protectionism is inevitable, american sumer's may not be willing to pay higher prices for products made at home. chat remain the most popular apps with 80% of the population using the messaging and social media services. china'sl survey by online watchdog show the big three internet companies dominated the market after

wechat were the most popular. next, samsung said to point the finger of blame for its galaxy note seven debacle. what the company says cause its phones to catch fire. this is bloomberg. ♪

.> this is "daybreak asia" i am betty liu in new york. yvonne: i am in yvonne man in hong kong. samsung could reveal the results of what caused galaxy note seven phones to overheat and catch fire, costing the company an estimated $6 billion and killing off a flagship device. the finger seems to be pointed

towards this lithium-ion batteries. rosalind: bloomberg sources are saying samsung is expected to say the batteries made by an affiliate was likely the cause of the note 7 smartphone overheating and catching fire, a huge problem for the company last year. consumer safety agency and the u.s. said that the batteries were slightly larger and therefore pinched when inserted in the phone. not a huge surprise after many investigations, but an expensive problem, the cost could be more than $6 billion. some of that has been recognized in the results for the third quarter and fourth quarter for the company. damage to the consumer in terms ,f recognition and trust

samsung taking this seriously, saying it has launched investigations and is learning from mistakes. st will launch a new galaxy line device in march this year, so hoping to not make any similar mistakes. the problem was with the note 7. critics say that it may have been rushed as they were trying to get the note 7 device before apple had its launch. over all, sam suns business has held up despite all of this. rosalind: that's right. we had the fourth-quarter guidance saying it had its biggest operating profit last year at $7.8 billion in three years. some consumer products may have been struggling, but other divisions, for example, the chipmaking division doing well. more results out tomorrow from

samsung. >> thank you so much. much more ahead, donald trump ups his rhetoric, and we look at his hard stance. ♪

startretty gloomy day to in the lion city. we are half an hour away from the open of trading. we are seeing a little risk off move, that he, after trump's inauguration speech, dollar-yen breaking below the 1400 handle. i'm yvonne man in hong kong. betty: looking quite foreboding in singapore. i'm betty liu in new york. let's get to the first word news with haidi lun. aidi: the chairman of a private equity firm says brexit will lead to dramatic changes in the u.k. economy. he says real wages could decline 30% over the next two decades, with interest rates rising to

cover greater perceived risk. he says the decision to leave the single market will ultimately benefit the u.k. economy and his business. sadly, and this is always one of the strange things about business, i think it is probably bad for the majority of people, in fact for the country, but i think for my business, it is going to be good. haidi: turkish lawmakers have given their approval to everyone's campaign to secure sweeping executive authority. members voted in favor of making the president head of the executive and abolishing the job of the prime minister. the move triggers a referendum that could be held in april. opposition parties say the changes concentrate a dangerous amount of power in a single authority. hong kong has retained its rank as the most expensive housing market in the world. a survey found the median home price was 18 times the annual household income. a lack of affordable housing has

been a headache for the city's chief executive, cy leung. prices jumped almost 8% last year despite new taxes and cuts on mortgages. secretarypine finance starts a visit to beijing today to discuss $15 billion worth of investment. china agreed to the deals during lastdent duda day's trip october. he is calling on beijing to help rebuild philippine infrastructure as part of the spit it away from washington -- part of his have it away from -- pivot away from washington. yvonne: thank you. president trump's inauguration speech on friday pretty much asiad up in two words, first. markets not taking it positively this morning. let's get the latest from sophie kamaruddin. >> let's start off with what is going on with the korean stock market. there is a broad risk off

sentiment given what donald trump had to say on friday. investors are still not clear on his policy direction. what we are seeing on the kospi, health care shares offsetting the gains we're seeing in tech and telco counters. chipmakers on the rise today. on the samsung front, we have them set to announce the root cause of the galaxy note seven fire. we do have fourth-quarter gdp to be released on wednesday. something to set up for the week ahead. take a look at the broader action. we are seeing weakness across the board. japanese and australian stocks falling after that rally in u.s. markets on friday. taking a look at the asx 200, down 0.4%. we are seeing weakness across the stocks here. goal miners -- gold miners on the advance. we have brambles falling almost

15%. this company leases shipping pallets and plastic containers. it is a seventh straight day of declines in the stock. down 3.7%.food maker goldman has cut the stock to sell from neutral. the company is possibly facing class action over allegations it misled shareholders. over 1%,i down snapping a three-day advance. automakers among the decliners we're seeing today. toshiba leading the charge among gainers on the nikkei. rising as much as 7.3% earlier in tokyo after the acai paper reported that the company will to cover itsllion nuclear write-down. another mover to watch in japan is sharp. gaining as much as 4% earlier. this after reports of foxconn

possibly jointly investing with apple in a u.s. display factory as well. sharp saying that samsung electronics is seeking arbitration over lcd panel-related damages. generally speaking, given that dollar rally weakening, we do have yen strength also weighing on japanese stocks. securities says the dollar selloff is dominating because of the lack of specifics in trump inauguration speech. takata also waiting for shares to trade. sophie kamaruddin, thank you. donald trump straight talk got even tougher in his inaugural address. will that extend to the u.k. when he sits down with theresa may this week? kathleen hays in town here in hong kong, welcome. what did president trump say that actually added fuel to this anti-trade fire? >> he is just so adamant.

when he was on the campaign trail, we know he was hitting the trade deal, the unfair trade deal, he would say bad deals for america, but as he takes the white house, he doesn't seem to be letting up at all. let's take a listen to something he said during his inaugural address. >> every decision on trade, on taxes, on immigration, on foreign affairs, will be made to benefit american workers and american families. we must protect our borders from the ravages of other countries, making our products, stealing our companies, and destroying our jobs. it wasn't just what he said in the address. the white house website, which now is reflecting the views of donald trump, that also happens when you become president officially, vowing to withdraw and tpp, renegotiate nafta,

if he cannot renegotiate that nafta.ithdraw from he wants a fair deal for workers. charttake a look at a that shows the impact of nafta over the past several years. 80% of mexico's exports go to the u.s. this is important to them to do. you can see where nafta starts at the far left of your screen. the white line is u.s. exports to mexico. the blue line imports from mexico. both of those have risen. the purple line has been falling steadily and that is u.s. manufacturing workers. interesting that they start falling about the time that china enters the world trade organization. some say the trade with china has had a much harder impact. the president of mexico said over the weekend is seeking a

respectful dialogue with trump guided by mexico's national interest. he's getting ready to meet with donald trump on january 31. it seems like a lot of global leaders are stepping past the roughness of the rhetoric and getting ready to do some serious talk to preserve some of these agreements. kathleen, we know that theresa may is going to be in washington to talk to trump about this possible trade deal with the u.k. we expect they are going to get out of this meeting with trump? >> she wants a deal that kicks in as soon as a brexit deal is negotiated with the u.k. she did say the u.k. is open for business. she seeks to build on the special u.s.-u.k. relationship not just in trade, but in national security. trump officials for their part believe that they helped make her more aggressive on those

pre-brexit talks and pushing for it very hard and this will help her in her negotiations with the e.u. australia also saying they are going to open talks on a post-brexit trade deal with the u.k. seems like may is making some progress. betty: but they are both facing pretty tough weeks. what is going to happen for trump and made? >> this sense of being a little bit disappointed in donald trump, in how quickly he can get his steps and acted, already hit the markets. it is hitting consumer confidence in the states. our team writing that when you look at republicans' consumer comfort, it is down to 43.9. democrats, their confidence dropping as you can see on your screen. independents are the loan group that are seeing it a little better. maybe because they are the people that in large part voted for donald trump. as for theresa may, there's a

coalition that may form it on tuesday a supreme court does not uphold her right to unilaterally trigger the brexit. if parliament has to get involved, they may push back on some aspects of it, particularly the hard brexit. betty: a very big day. thank you, kathleen hays in hong kong. the ceo of japanese food and beverage company suntory says he's worried about donald trump's protectionist stance on trade. we spoke to the k.g. nina me at the world economic forum in davos. >> let's get right to the heart of things. yours is a global company. are you worried about the rise of protectionism in the breakdown of free trade? >> i'm worried. we have the uncertainty, this level, this made me feel worried about what to do in the future.

--tectionism should be should not be implemented. i'm optimistic, but still worried. >> what do you do? you do things differently as a company if this continues? >> we enhanced each country's production to serve more to the local customers and in addition to that we will concentrate more production into the u.s. that is the biggest market for us. >> so you will move production into the united states. >> we did, from mexico, just a little production line, to produce in kentucky. but that happened almost six months ago, before -- >> so this has nothing to do with trump and the threat he might pose to foreign companies manufacturing in mexico but

selling in the united states? >> exactly. i believe for the u.s. to export to other countries, that is why i try to concentrate on kentucky. that means the u.s. should have enjoyed globalization further. that is my belief. trumpyou think donald will be good for your business? >> i don't know yet. we have to be careful and we have to analyze the impact of what he will say and what implementation will happen. >> it has been almost three years since the been deal. this is one of the things we should remind people. suntory owns a whiskey dealer in kentucky. three years since that deal closed, does suntory today have the capacity to do another big deal? >> still we have to concentrate

on the integration with beam- suntory. after succeeding, we will have lots of options. i believe two years from now we will be able to say, we did it. we have to concentrate. >> what kinds of options are you considering? >> we can go into the small weitions, but definitely have to work on integration now. until we have the options, but i don't think we are thinking to suntory because we want to control 100%. our position happens, but i don't think ipo is an option. betty: that was the suntory holdings ceo at davos. next, as traders try to second-guess president trump, we look at why one particular currency paring is on their watchlist. ♪

."tty: this is "daybreak: asia i'm betty liu in new york. yvonne: i'm yvonne man in hong kong. president trump has made no secret of his opinion on china, accusing it of currency manipulation. he's not the first president to take issue with beijing on this matter. let's bring enda curran here to explain. we're talking about bill clinton during his presidency, in slapping that label on china. what is different here? >> between 1992 and 1994, the last time the u.s. did label china as a currency manipulator, it was whether or not to support chinese application for wto membership. china desperately wanted join that trading

club, they had leverage. it made it easier for importers to get foreign currency. so it got to the point where the u.s. lifted that tag in december 1994 and they haven't labeled it since and the relationship progressed. betty: these proposed new tariffs on china, why might american companies not support this proposal? >> i guess it is more deeply intertwined these days. [indiscernible] there are a lot of u.s. companies working in china. exports from the u.s. to china have increased by 400% between 2006 and 2004. and then there's -- we're not just talking about china and the u.s. we're talking about the supply chain, south korea, taiwan, japan. if we were to go down a road of

severe trade tensions, you could have a scenario where it is a spillover consequence that would hurt the asian and the world economies. yvonne: thank you so much. enda curran there on this thorny relationship. speaking about another currency, let's talk about the japanese yen. it is about what the dollar-yen trade has to do with this trump rally in the markets. that's find out more with david ingles in singapore. this 115 level is important. what they are saying. it is a fairly obvious place to look, dollar-yen, if you want to look at dollar strength. here's the thing. this 115 level comes at a time when we've actually started to see yields in the u.s. appear to start picking up.

2.5% lastom 2.3% to week. chart, weook at this are hitting our head on the ceiling of 115. we start talking about it, then we're going the other way. have a look at code relation between the two. this is 40-day code relation between dollar-yen and u.s. 10-year yields. level,above this 0.8% which essentially we've done that four times over the last 15 years. stay with me here. look at quarterly co-relation between the two. we are basically at the highest level on record. these two pairs, these assets, are basically as romantic as they can get, holding hand in hand, walking down the beach, by the sunset, going back to 1980. we started to see this co- relation really strengthen. when you hit 115, if we see a

decisive move above 115, that is essentially evidence that the trump trade is back on. any failure would be overenthusiasm over stronger dollar starting to wane. yvonne: absolutely. this romantic relationship between those two. is it going to be rosie when it comes to the rest of the asian markets? what is the impact there? david: you can only date one person, right? when these two 10 to do this, the love for asian equities starts to fade. if you want to use a love interest analogy here. have a look at outflows. this is very simple. ofs is data last week, as friday. each time we saw the dollar strengthened and yields go up, immediately when markets close in asia, exchange data basically showed outflows continuing. what we saw were net portfolio outflows when yields started to

pick up and the dollar started to strengthen. right now we are seeing the opposite of what i'm saying. not surprising there. yvonne: a lot of flip-flop there. david ingles, thank you. let's look at the business flash headlines. building companies in california are seeking more than $1 billion to promote electric cars. firms are looking to boost spending on charging stage and's to meet -- charging stations to meet the goal of 1.5 zero emissions vehicles on the road. california is cutting greenhouse gas emissions despite donald trump's promises to kill similar efforts at the federal level. cynosure is said to be exploring strategic options including a sale. cynosure makes lasers for treatments in here and tell to removal. valued at around $1 billion, it is said to be attracting interest in companies in

germany. universal psychological thriller "split" topped the north american box office, raking in $40 million over the weekend. the movie was directed by m might show milan and stars james mcavoy as a man with 24 different personalities who kidnaps three girls. not sure if i can watch that one. just don't like the thrillers. not a big fan. betty: it is a sign of the times in the american psychology that that tops the box office. we got a tv personality, a president-elect personality as well. yvonne: we've got to keep track of all our personalities. the market is tight in singapore. workers may not have it that bad so far. more on that coming up. this is bloomberg. ♪

betty: this is "daybreak: asia." a quick look at what is coming up on bloomberg. rish, good morning to you. rishaad: just going to kick things off with donald trump and this fractured relationship, what is becoming a fractured relationship, with china. we've got chinese authorities questioning the western democratic model and suggesting the communist ar one perhaps

works better. this war of words continuing to some extent between washington and donald trump there as well. moving along, having a look at what else is going on, we've got this samsung. they've identified who was at fault. we will tell you who that is. in a little while, talking about how turnover at the world's biggest banks is costing individual ones an absolute fortune. going to discuss that. that is all coming up on bloomberg markets. yvonne: thank you. singapore's unemployment stands at its highest in about eight years, but it is still one of the easiest places in the world to find a job. to explain the disconnect, let's bring in haslinda amin. this must be something of a relief for you. a lot of people in singapore have it easier than everywhere else. haslinda: we have a tight labor

market, especially since the government clamped down on foreign workers and immigration. even before europe, before the u.s. started talking about immigration issues, singaporeans were complaining about how foreign workers were taking away their jobs. measures were implemented. as a result, companies are struggling to fill positions, especially in the services sector. despite a slowing economy, singaporeans can find a job in eight weeks. those in other developed markets take twice as much time. even older workers can find jobs here. almost all of those who retired at the age of 62 were rehired. i want to show you this chart. it shows how singapore and hong kong have the lowest long-term jobless rates, but no reason for complacency. that is a rising mismatch between skills and jobs in singapore. companies embracing technology more and more.

many factory workers will be at risk. yvonne: all right. that is one silver lining. [no audio] that is it from us here. plenty more to come on "bloomberg daybreak: asia." we are talking about the risk off move we have seen since donald trump's inauguration speech. america first, that was a big message out of the incoming president. we are seeing dollar-yen breaking below the 114 handle. the nikkei down more than 200 points. this is bloomberg. ♪

♪ it is 9:00 a.m. in singapore, midday in sydney, 8:00 in the evening in new york city. i am rishaad salamat at bloomberg's asian headquarters. this is "bloomberg markets: asia." ♪ rishaad: taxing questions, the white house says donald trump won't release his returns i has team offers alternative facts. democracy isstern flawed, but ready to work with the new administration. samsung