fourth straight session. >> apple returns to revenue growth thanks to the iphone 7. it could buy almost any company in the world. president trump changes his plans as he prepares to announces supreme court pick. this is daybreak asia coming to

you live. 8:00 a.m..after i know we have more breaking news coming out from south korea on trade. >> take a look at exports. 11.2% gain for the month of january. the estimate was for a 9% gain on exports. seeing a pickup when it comes to global demand. that is probably why we are seeing that with exports rising 18.6%. the estimate was for 10.1%. i think the export figure is the biggest we have seen in five years. that makes the trade balance. expectation to the

of $5.4 billion given that jump. we will see how the market reaction is now that korea is back online. >> we will get into the specific movements on the costs and just of the. we are seeing some weakness coming through after the regional benchmark was able to close 5% higher. today we are seeing weakness coming through in oil and gas. take a look at what is going on in the region. it is gaining half a percent here after those trade figures came through. did have the finance minister priming us with expectations exports would move on the cost.

we have this type of movement happening on the index here. that was anticipated given the 10 gaining strength overnight and continuing to remain below. we are anticipating earnings out from the day. in australia, slightly higher given the rise in energy and materials. let's bring our tech reporter joining us live from san francisco. it seems like it was the iphone 7. that is what drove apple's success. likes thank you for having me. the iphone 7 plus was very interesting.

they talked about how they did not anticipate such demand. we are talking about the larger of the two models. >> what about emerging markets. >> india and greater china are the two key markets. they have had discussions about their own retail source in the region for a couple of years now. that is going to happen over the next year or two. in terms of greater china the sales numbers down 20% year-over-year. greater china used to be a big

market for apple. cook referred to as the hypermarket. we will see if apple is able to knock it out of the park again but for now things are slowing down. >> interesting things have changed in just a few years. what about new products. i want to know. >> a lot of investors are banking on this, whatever they end up calling it. steve jobs introduced the iphone in the beginning of 2007 about 10 years ago from this month. he said the iphone is five years ahead of every other phone. that was the case. , they areke google starting to catch up.

a lot of people are expecting that to happen at the end of this year. >> thank you so much. first world news. >> nintendo shares are down in tokyo. despite third-quarter earnings that topped estimates. given by a weaker yen and sales boosted by the pokémon franchise. console is switch the future earnings driver for nintendo. it goes on sale in march for $299. thanks to record income from operations abroad, $629 million. the firm joins goldman sachs reporting higher earnings.

lawmakers are debating the government permission to begin leaving the european union. davis said any rejection of article 50's timetable would destroy public trust in politicians. the prime minister hoped to start talks on her own initiatives but the uk's a prim to to seek parliamentary approval. president trump postpone the signing of his latest executive order to deal with the growing number of lawsuits on his desk. york my massachusetts and san francisco have launched legal action against the travel ban facing protests. administration is trying to course local authorities and to implementing the order. that i is not a step take lightly but it is necessary to defend the city, state and this country from the overage of a president who has shown little

respect for the rule of law. by 2600l news powered journalists and analysts in 120 countries. >> and less than an hour from now, donald trump is going to be announcing his new choice to sit on the bench of the supreme court. you are looking at the steps of the supreme court in washington. moments away from this and going to be another big battle in congress. , the tworobinson finalists, one of them will be picked. they come from different backgrounds. >> they do. from a more typical background. he has an ivy league pedigree. he went there with president

barack obama but he did a quick stint in the doj and kicks off the lines on the resume the current justices seem to have. she drove a taxi to pay for law school. he went to georgetown. they couldn't be more different in their background. both have strong conservative credentials that republicans can get behind. >> this is going to be contentious. as we recall last year, merit garland was filibustered by the republicans. we expect the democrats to do the same thing? thatere were some names would guarantee that the confirmation battle would have been a knockout drag out by. these nominees are somewhat more itatable to democrats and

may be they want to save their real tough battles with the next supreme court justice who is likely to come in the next few years. several justices are approaching an age that they might want to retire. that would shift the balance of power in the court and it may be that with tough elections coming save themight want to fight for the next supreme court nominee. >> they may pick their battles. three other justices are at least 78 years old. interesting to see how the changeion is going to the makeup of the court. especially issues of abortion and religious freedom. >> that is right. the supreme court has been known as a pretty conservative court. there have been some sweeping and dramatic victories for liberals including things like abortion. that is one area where donald

trump has said he wants the nominee to go the other way. he wants somebody who is going be overturning right to abortion in this country. that is going to be hard to do. if donald trump can seat somebody who is against abortion and wants to roll back abortion rights, and gets a shot at appointing another justice we could see a dramatic shift. >> that decision is less than an hour away. thank you. have in makings a push in to hollywood. could the white house policies change the stakes? to speak to ag longtime advisor to the chinese government. complicated of decades. ♪

>> this is daybreak asia. >> our next guest is a longtime advisor to the chinese government and the author of how china's leaders think. he is just returned from beijing where he spoke with business leaders about president trump's policies. you missed all of the action here. >> we follow it very carefully. china is very interested in stability. this is an important year for china. they have the 19th communist party congress in the fall. it is not on the table right now.

>> he blasted mexico and disinvited the mexican president on twitter. how is china going to deal with this? >> china is used to american politics. in american politics china is often the target and then things get back to normal. this isle wonder if different. the first reaction is to be cautious and not react to every tweet, not to overreact. china really wants stability. they had to respond to the phone call. that is so sacrosanct to china's self conception. they had to do that. they are doing the minimum

required to make sure america and the current administration understands their feelings. no more than that. they're not escalating in any sense. >> half of the administration is a lot of that talk against china. it becomes toothless because they know how important that relationship is. do you think that is going to happen again? >> i hope so. >> you think it is going to. >> there is a danger president trump, because he is less knowledgeable, for whatever reason, china will continue to be this target. officials --ration >> are they prepared for that?

>> i spoke to senior advisers to the top leadership. what i know is they are preparing scenario planning. prepareding to be before the inauguration. ofna has in place a series counter moves to whatever move is expected. been given the order to prepare the different alternatives. they know how they will respond. maybe some agriculture. maybe some soybeans. not ratchet it out. they want to ratchet it down in every sphere. >> you solve that with what happens in mexico. is going to be

able to do that against china? >> he said china should not think the -- is one of his 16 republican opponents in the campaign. there is a difference between 1.4 billion people, the second largest economy in the world, and one of their rivals. roberts, in the last two weeks we have seen him withdraw max come in ports to pay for that wall, and the salvo about currency devaluations in china hand japan. do you think the trade war has already begun? >> there is certainly talk about it. it is in both countries interests not to have that. there is no benefit on either

everybody would -- would recognize quickly. a tear is a tax on all americans to pay for the jobs which can be good public policies if we want to make that subsidy but in this of china relations, will increase the collective wealth of both countries and the whole world if we optimize economic relationships. the vast majority see it that way. this white house under trump will be cautious in dealing with china because it certainly has enough problems. the potential danger is if there are problems erupting in other places. we hope we won't see that. in china, the lens look at everything is through the lens of stability versus a pride in nationalism.

with this congress coming up china needs this stability to have a successful congress for the party. they have to be strong, have to look nationalistic. that's a human trait that every country goes through. china must do that. given the choice between sovereignty and stability, china will choose sovereignty and pride over stability. >> i want to get your take on the presidency. his speech and davos. think china could be a leader of the free world?

>> we have to unpack that. certainly china wants to be a participant in a globalized world. china is the country that has benefited the most. it needs to continue to do so. china wants to see that benefit to go to other countries that would follow along the same path anda had in parts of asia africa. china has some grand feelings about the world and feels its participation can be a real contribution. it doesn't want to be the leader for the first half of this century. china just wants to be a fully developed country. they have their goals of a moderately prosperous society and a 2050 goal of a fully modernized country.

roughly 100 anniversary of the people's republic of china. to do that china needs the global -- globalization and global integration. they want stability. they are not thrilled to see the u.s. aggregate its responsibility. >> it could lead to china taking that spot. >> china may be forced to do that. china is not thrilled about that. you would think that they would be. they are happy to see trump not caring about some of the other allies. that is a superficial pleasure

some people in china would have. more sophisticated people see that as a danger. china needs more stability. they dealt want their political system criticized all the time. that makes them feel bad. they have strong feelings of sovereignty in the south china sea. that is very strong inclination. those are limited areas. they want to see a stabilized world. ofy don't want the collapse the u.s. as a global force for good. that would put china to quickly into a position. >> that would be a danger itself. >> much more ahead. counting the cost of india's ban on a high denomination votes --

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>> india's second-largest sector by loans has seen the highest debt in years. this.test on them post a drop of 19% in the third quarter net profits to $260 million. that was better than most had been expecting. bad loan ratio, we see it widen. for the first time in seven years, down to $90 million. .hat has impacted results and possibly a drive on the

banks. >> there is a lot more to watch in india. we have wednesday, it is budget day. what do we expect? a windfall from some demonetization process? >> one of the questions people want to see answered is how is it going to handle the big budget deficit? asia has the biggest in compared to other countries. it also has seemed to boost spending. essentially the budget deficit has been growing. bloomberg survey will try to thenk it starting april first.

>> attention is going to be turning to the fed. we will talk central-bank policy in a moment.

>> there it is. beautiful looking in the evening and washington, d.c. the steps of the supreme court at the front as essentially the court, the balance of it in limbo right now. donald trump half an hour away from naming his justice pick. and at the white house, he will be making that announcement very soon at the top of the hour. it will be either neil or thomas hardiman. mayooks like neil gore such be the lead right now but you never know when it comes to donald trump. we will be listening closely for his pick. it is kind of like a reality show here or you got to bring

out the two finalists. i am wondering whoever loses, what happened there? does he get sent home with something or what? it's a dramatic sent home like they do in the reality shows. he picks time time to reveal this supreme court pick. way. really going to >> president trump's final two continues. -- contenders are summoned to washington. they play the signing to focus white house attention. already affecting his investment

decisions. >> it is beginning to creep into our investment. >> trade data beat estimates in december. beating forecast of 9%. although the corresponding numbers have fallen sharply. the data start. industrial production that almost doubled estimates year on year. despite third-quarter earnings

beating estimates. the combined home and mobile unit really goes on sale in march for $299. nintendo everything to explain results. by more than 2600 journalists and estimates and more than 120 countries. >> falling 100 points or more overnight on wall street. the big picture could be on the currency market. the operation markets, we get enough date with sophie. >> let's take a look at what is going on. the best performer.

actor we had the trade figures out this morning, exports with january rising more than expected for that third month when it comes to x ports for korea. and we do have head of asia research to say that korea's current account makes the beneficiary of higher. weakest levelsts since november following trumps comments that japan and china are devaluing their currencies below fair value. ethics strategists said the tolar-yen is still looking move upward based on market consensus for two to three fed rate hikes. the preference remains a risk.

the currency moves around the broader dollar that we are seeing. >> we have a slew of earnings out in tokyo. tell us some of the highlights. >> we had nina mention briefly what is going on with nintendo. the gaming with a five-month low here. not to boost the sales outlook. it also cut the profit forecast. around 10 a.m. tokyo time. we also have fujifilm falling over 6% here, the most since july. the company amounts to 15% drop. we also got an update that it is hiring banks of about 150

billion yen worth of bonds. forecasting a swing into annual profits. turns he assumptions and improved business efficiency. within anticipating loss, given some of the factors, it will see some positivity there. the markets in the u.s., they show the dollar capping its worst months since march as the trump administration is reiterating the preference for a weaker dollar. su keenan is here. su: it is helping commodities get a lift. in terms of the trump rally that continues with the close, the nasdaq managed to eke out again.

the big movers show that we still in the peak of earnings and that this is having an impact. under armour, it missed on every front. retail challenges were mentioned. a big and reporting earnings next week. getting a big jump on coal volume. btv. go to the bloomberg 5554. been creeping higher, and bigger picture is lower from where we were back in june. but if you look at the options on volatility, a lot of the smart money betting on this vix going higher and that means a bumpier road. >> and it came to the trump fact, it was quite positive when it came to top drugmakers.

>> surprising that it's going to pop. trump pummeled them by saying they were getting away with murder on pricing. the big drug companies and says he felt the need to come down on pricing but said the prophet didn't would probably be more than offset to his reduced regulations and his promise to speed up fda approvals. in the stock market seemed to like it. it was big and it might push the nasdaq and the positive. huge winner. jumpsf the other very big and it extended throughout the regular drug companies as well.

flexible has been shiny. >> benefiting from the uncertainty since trump has taken office. old games or is the biggest we have seen since june, which was requisite with uncertainty. is a certain level of what the thing going to do now that he's in office. in terms of the dollar continuing to decline, it at the court for one of the top four is out there saying this gold rally has had a run. earlier in the day, it is below 53 as a lot of speculation continues. we get the report wednesday for midmorning. administration affects hollywood. how bad do they need china?

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>> daybreak asia. the decision to stay on hold and the focus now shifts to the fed under president trump and if it will overshadow the policy meeting. kathleen hays is watching the central-bank action for us. will we see as, more hawkish fed in light of the president haslinda shall decisions? >> you know, yvonne, an interesting question or madeley -- may be a more dovish fed. decisions that might be made differently and more unknown. they sit down to make this very important sandwich.

the unknown tax code, regulation and trade. and immigration. uncertainty is rising according to the latest from the intelligence team. are talking about economic uncertainties. you can see how it spiked hugely. it is moving upwards. sayingrg intelligence that they've got all this trump uncertainty that hasn't changed and it's gotten a bit more intense. they might have a slightly more dovish tilt. it is something to keep in consideration. expected bychange anybody on wall street right now. but even any charity. it could be in june.

they have it interesting, a key lawmaker wants u.s. banking to halt international agreement until president trump has a chance to review the work and replace top negotiators. it is another way where donald trump is casting a shadow over the fed. >> it seems like the governor was pretty guarded when asked about from's impact on policy. they were cautiously optimistic on inflation. >> there was want to tread carefully because they don't want to cause unnecessary storms, shall we say. questionsto many yesterday afternoon, he said he's watching trump's policies very closely. no details are making this all clear.

>> global trade and economic growth but the importance of the global framework is recognized by wto and imf. i don't think protectionism will widely influence the global economy. >> they be he's getting it right. the main inflation gauge hit 2%. asking for his target. will push inflation substantially higher.

>> what about central-bank policy divergence. >> it is just striking how much central banks are in step around the world and how it started to change. bank of japan held steady, the bank of england the next day. the end of 2000 to about the beginning -- were and of 2015. look at the yellow line. the fed starting to raise rates, the bank of england cutting rates. the big move they made last summer. actually turning the key rate of it negative. i don't think we will see much divergence right now. bank of england on thursday may have a debate about when their move will eventually come.

>> in tokyo for us, it will be a big week. latest check of the business headlines. but airline indigo plans to further increase capacity despite a 5% drop in quarterly earnings. the equivalents of $70 million the last quarter. analysts were expecting an increase. failures dropped 16%. it is matching competitors on ticket prices. the most ind fell november after fourth-quarter revenue missed analyst estimates. earnings increased 10% from the year earlier to $2.76 billion. the company said it stronger dollar affected results in europe and revenue may be hurt as it spends more on rebates and incentives. they expect revenue growth to be in the low double digits. option to be considering

for a diabetes care business including a sale. it is also said to be weighing a partial sale or spin off. bloomberg sources say the unit could fetch as much as $5 billion. caution is devaluation could be affected by pricing treasures in the industry. diabetess have quit treatment of falling prices. >> said to be renegotiated this month. >> the senior industry analyst, good to have you here. how higher the stakes for both of these countries? stakes are high for both u.s. studios as well as for the chinese movie industry. effect in 2012. it allows for movies to be imported into china on a revenue-sharing basis.

china is so very important to these u.s. studios. it is the second-largest global movie market. the big-budget release. they play out really well in china to boost the theatrical receipts of their movies. especially as domestic sales are kind of stagnating. important to have more of their content play out in that market. >> mentioning the renegotiation process. and will it be to relax the quota? >> regulators have been fiercely

protective of their local movie industry. these in place because they want to restrict thattition and make sure there is a slight relaxation. the local chinese movies should be playing in the theaters for at least two thirds of total running time. doing all they can to reinsurer that local movies perform well. it's what we've been seeing. chinese movies have not been performing all that well. they do much better.

some of the industry experts have attributed that to lower quality chinese movies compared to that. >> after this. what happened? >> it is really a spectacular year. there is a multitude of factors that led to some weakness. we actually saw almost a 4% at china. box office that was due to a multitude of factors. the performance off the local films, some said the quality wasn't that good in the chinese moviegoer has become much more discerning. subsidies from

regional distributors. we saw online ticket is getting lesser discounts. there were many factors at play. we will see a big rebound and box office sales. onthink you for joining us the always interesting story of hollywood studios operating in china. of playing out like a movie, waiting to hear president donald trump's pick for the supreme court. a television show here unfolding before our eyes. the decision and reaction as it happens. the supreme court nominee and donald trump's pick. .t's a live shot they will be appearing in just a few minutes. moments away. this is bloomberg. ♪

>> this is daybreak asia. a >> it has been a long day here in washington. just moments away from president trump announcing his new choice for the supreme court.

we at the white house. certainly lots and lots of anticipation. is most likely, right now, the leading candidate for this job? >> this is a decision very close to the best. the president knows the answer and kept it very close. he wants to make it a big reveal. he's a former reality tv show star and he's having a primetime address. pick, it hasn't been that he is a very highly seen contester for this position. he's in the lead but you wouldn't put it past the president to have a surprise. >> have the president come out

with two of his picks and announcing it live on television? .> is very in usual it has been from the get-go. to be usingy going the same set up that president obama used when he announced the death of osama bin laden. have the cameras on his picks and he wants to make it very much atv friendly affair. this is something he wants to have great ratings and wants there to be millions of eyeballs watching. unlikely and unfamiliar for people that are used to watching the white house and the presidency see both picks coming to washington. >> here in hong kong, i can

sense the suspense leading up to this decision. tell me about the democrats. how will they stole this vote? vote?lled this they may filibuster. >> they need at least eight democrats to confirm this pick. they have already begun to resist the idea. they invited several democrats to the white house. >> thank you so much. bloomberg markets: asia is up next. ♪

>> 9:00 a.m. in singapore, midday in sydney, 8:00 in the evening in new york city. this is bloomberg markets. we are to get straight over to washington. the supreme court and live images coming over. 8:00 in the evening over there and do see -- in d.c. president trump will get to the lectern any minute now. we have two people, each apparently asked to go to washington tuesday. the decision process by donald trump saying that he will be announcing that choice any minute now.