♪ >> president trump loses his first battle to reinstate his travel ban. and, quarterly earnings drop, but on track to deliver hundreds of millions in productivity savings. to avoidour request a strike in the world's largest copper mine.

hello, from sydney. i am heidi. this is daybreak a string of. we are just an hour away from the opening of asia's biggest market. we will be looking at how the action will play into the asian trading day. , ourod to be with you first show for daybreak australia. no better time be kicking it off when the u.s. and asia relationship seems to be changing these days. haidi: that's right. it is almost perfect time to launch the show. taking a look at how we are expecting the asian trading day to line up, a little quiet. new zealand closed for the national day in new zealand. futures and australia are

shaping up like this. a negative close when it came to obvious shares on friday. aussie dollar seeing of pop in session.y taking a look out. shaping up. oil, getting half a percent. .ron ore, falling of course, the commodity picture will be key as we head into the rba meeting. in the meantime, let's get an update from the headlines we are tracking for you. david has the headlines. david: benjamin netanyahu says he will be pushing for an international response to the nuclear missile tests. netanyahu told his cabinet that the emphasis will be on forming a partnership against

aggression. asia, peace talks have been canceled with maoist rebels after three soldiers were ambushed and killed last week. he told troops to prepare for a long struggle. that he continues to pursue a cease-fire with muslim rebels. in china, policymakers are calling for improved quality and efficiency in the state sector. seven -- stabilized rice and wheat production. it also prioritized what they call soil pollution.

the national front leader has said that european experience has failed. she called for protectionism saying that a dysfunctional monetary system is ruining france. global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. mrs. bloomberg. thank you so much. president donald trump has been blasted over the latest comments about russia's vladimir putin. the details for us. some more love to russia from trump? more love to russia. basically the question of whether there is moral equivalency.

of course, a lot of people here say no it isn't. mr. trump of all people says yes. trump: we got a lot of killers. you think our country is so innocent? exit you saws an from -- an excerpt you saw from fox news, that will air around the super bowl today. interesting -- the reaction has not only been interesting from democrats, but also republicans. mitch mcconnell saying there was no equipment. not only mitch mcconnell. ofo, liz cheney, daughter dick cheney. with marco rubio, he went further in, when has a democratic political activist been poisoned by the gop. assaid we are not the same

putin. expecttingly, you would the vice president mike pence would have a defense of the present. let's see what he had to say. :ice president pence president trump has never hesitated to be critical of u.s. policies in the past. there was no moral equivalency. ramy: this is the latest of mixed messages, saying that the u.s. has its eyes on russia over the ukraine. nikki haley also think as much that the distinctions will not be taken up. thei: in the meantime, white house lost his bid to reinstate a travel ban. what is the latest on this?

ramy: this just came out earlier today. basically when you think of no, you have to think of liberal folks there. these are little saying, donald trump, you are out of order. a lot of people said mr. trump has the power to dothis or national secury. a little bit of the details here. that judge in san francisco state of washington, minnesota, as well white house to file more arguments by monday. for now, you can unit people are able to travel into the united states from those seven majority muslim nations. counter to this argument is whether the executive branch has the authority alone on national security. mr. pence came out on fox news with this quote saying, it is quiet clear that mr. trump has that authority.

he says, at the end of that, they will win. with that said, a lot of people think this will play out for a very long time. i'm feinstein -- diane feinstein's at it could even go to the supreme court. haidi: we are also looking at the start of the process when it comes to dismantling the dodd-frank act. we are expecting a fight on that. you can be sure of that. we're talking about what is happening and being digested in the past 48 hours or so. there was a business meeting with a lot of ceos from s.nancial at leastis order, starting to scale back much of the system in response to the 2008 financial crisis. he did campaign a lot on

financial regulation and cooling that back. here is what he had to say. trump: there is nobody better to tell me about dodd-frank but jamie. they have nice businesses, they cannot borrow money or give any money. ramy: he is talking about not letting people borrow from banks. hop into bloomberg. you see the white light going got. that is ever since 2010. those are the loan origination. they have actually grown 75% ever since dodd-frank was started. with all of this, critics say there are few specifics on this. it does tell the treasury to tosically start to tell --

look into it. this could make wall street happy. we didn't see a bump in terms of financial stocks on friday. the question is whether this makes main street happy as well as supporters who decided to go for donald trump instead of hillary clinton on the idea that he would not go the route of wall street. is a story we will be watching over the next few days. ramy and since you, -- ramy inocencio, great stuff. first up, we have the aussie p.m.. all of these issues happening in washington. still some damage control. >> sean spicer was referring to him last week. the prime minister was on tv trying to put this whole issue at rest really, donald trump upsetting these refugees.

the prime minister left -- aughed. he said that conversation was frank and forthright, donald trump did not hang up on him. haidi: still trying to play down leaked.osity that was picking off. not a showstopper. fromis is a trading update national australian banks. it is down 1% on year. the quarterly revenue was up. bad debts down. it will be interesting to see if the national australia bank will move on the strength of that

number. betty: we are also waiting on retail sales for the month of december. that feels long ago. what is the expectation there? >> yeah. have not been terrific and australia. this is the christmas period, so we will see how they stack up for december. the market is expecting a 3% growth. it will be an improvement on what we saw in december. we will get that number in just about today's time. betty: we mentioned the threat at the start. the coppermine in chile. it is not looking easy at all. >> no, it is not. areay that the two parties apart, it is an understatement. , a one for 37

contracts. it is just three of the key points in which the company and the union differ. a huge gulf between them. we will see how it plays out. betty: thank you. much more ahead on daybreak australia. we look ahead at the jobs report out on friday. supporting the case for a march rate hike. what that might mean for the rba. that is later in this hour. ahead, a check when it comes to the banking sector. bigfirst of the four earners. this is bloomberg.

haidi: we are counting down to the citi open with futures looking just a touch higher.

looking pretty warm out there in sydney. very different from here in new york. i'm betty liu in new york. to that.can attest it is looking like a sweltering week here in sydney. you're watching "daybreak australia." let's get a check of the latest business headlines. haspanese firm emerged as the leading bidder for the takata company. no final decision has been made. insays it is more interested purchasing part of takata. betty: honda boosting its profit forecast for the second time this year. an increase of 21%, think largely to the weakening of the japanese yen. honda hopes the prime minister

will settle an issue when he meets with the president later this week. we not only have production, nt facilitieslopme in the u.s.. made in0% of vehicle america are made there. there has been misunderstanding as to how much we contribute in the u.s. haidi: deutsche bank has made a costserious sorry for what millions. cases dating legal back many years cost the company reputation and trust. misconduct on a few employees. as we touched on earlier, the national australia bank has released its first quarter results. the first quarter tends to be an

incomplete picture. what are we setting up for here? what do we know? >> it is clear that the year will be a bit tougher for the banks. nothing bad about the results. profits down a bit last year, not that bad. ank earningsgs -- b have increased and increased. haidi: what about the cost? is that an increase? is it a concern at this point? >> something to keep an eye on. wages, essentially, due to the fact that you hope you get payroll. also, regulatory costs are increasing. are these results? what do they mean for the rest of the reporting is in? > -- season? >> this gives investors of

benchmark as to what to look for. a bit of an improvement on the bad debt. sawhe previous season, they improvement on my main -- mining. commodities have been improving. that is probably good news for the rest of the operators as well. biggesthe world's business bank. it will have a reflection of what is happening in the business community. haidi: what are we expecting from the other big lenders for the rest of february? expecting we are maybe a little improvement, but not the big guns we have seen in recent years he the one that everybody is obviously watching is cba. they come in a couple weeks time.

thing people will want the housingon market. as you know, a strange love their property. there has been a lot to report on is the housing market is anymore sustainable. i think we will want to see comments from the ceos how they are managing risk and exposures. nabi: of course, the setting up for policy decisions tomorrow. thank you very much. betty: much more ahead. to asia's best performing currencies could offer -- suffer collateral damage. we will show you which ones to watch out for. this is number. -- bloomberg. ♪

haidi: this is daybreak australia. i am in sydney. betty: and i am betty liu in new

york. if you are long gone any of these currencies, be warned. maybe the biggest reversal in the face of donald increasing protectionism. david has more. tell us the two. david: i think this goes -- gives it away. we're talking the yuan and the taiwan dollar. if you look at the taiwan dollar, we are at levels about 18 months ago. the markets were betting that ese two countries will not be onling up and they are slow currencies. now is not the time you want to stand out in that regard. that said, things might change. thewarning is in

protectionism policy start ramping up, it is these two currencies that are most at risk because of how the economies are actually structure. yuan andind, the taiwanese dollar are on the watchlist. largenjoyed a relatively account surplus. in other words, markets have not priced in protectionism policy outside of the mexican peso. haidi: i suppose the issue is also south korea and taiwan have a lot of overlap when it comes to what their economies export. david: it is the biggest target, but let's face it. when you label someone a currency manipulator, it is more economics.s that

china is obviously the biggest target. at the end of the day, when these things start ramping up, it comes down to the economy. taiwan get 60% of the gop from exports. you look at south korea, and you're looking at about 60%. both are very open economies. net exports and it is actually a drag on growth. it comes back to the argument, which economies are most foldable. you look at how the economies have traded and the structure. it is taiwan and south korea. haidi: quickly, a forecast for this year? both are expected to weaken. shift through

this. thecally, looking at forecast weakening. there is the exchange rate. we are right here. we are lking to weaken about $32. betty: let's stick with currencies. thank you very much, david. let's stay with currencies and move on to the pound. facing new challenges this week as theresa may gets ready to officially start price it negotiations. from london, anna edwards has the details. >> the brexit bill is on its way through the parliamentary process. be will see more of that this week. we will be looking for cues as to whether the self-imposed deadline is still relevant and what extent her hands will be tied. the bill will move on to the

third of 10 stages this week. the vote through house of commons will be followed this week. some daysspending next week making amendments to the bill. it will be voting on it get wednesday evening. the bill will then travel to the upper changer cut -- upper chamber, or house of words. that happens later on in february. it is unlikely that the government will be defeated in any one of these votes. depending on how many of them limits are agreed in the committee, we could see a slightly more rebellious number of lawmakers breaking breaks -- ranks in the next weeks. the parliamentary vote does not look to block rife, but they might have to make concessions

on how hard of a brexit they want, and the timing. ♪ haidi: coming up, looking at u.s. job numbers. this is bloomberg. ♪

haidi: it is 9:30 a.m. in sydney. markets will open in 30 minutes. it looks like we will see a little bit of an uptick when the markets open. that is the iconic sydney opera house on a summer's day. bet: perhaps helped by the rally on friday we saw in the u.s. it is now 5:30 p.m. in the u.s.. you are watching daybreak australia. let's get to the first word news. david: thanks betty. travel banrump's

remain suspended after a u.s. appeals court gave the justice department until monday to submit further arguments for enforcing the ban on people from seven majority muslim countries. it will hinge on at the executive branch has authority on matters of national security. the head of president trump's national economic council has taken aim at the dodd-frank law. he has joined the conversation over deregulation as the administration waits to meet with the new treasury secretary. the trump administration will attack frank -- dodd-frank. >> we want to get the banks working again. we want banks to be back in the lending business. what we think god drank has done -- dodd-frank has done is it has stopped banks from lending to

entrepreneurs. urged the u.s.s to stop making the wrong statements on the sovereignty of disputed islands in the south china sea. beijing's criticism comes after the secretary of defense accused it of shredding the trust of its neighbors. james madison reaffirmed the gen. mat said the u.s.t would use diplomatic efforts to resolve the dispute. is iran carried out further missile test on saturday. commander of the revolutionary guard told state media a range of land to land missiles were successfully testfired in the country's north. among those targeted by the new u.s. sanctions are a company based out of iran. we have you covered. global news. 24 hours a day.

powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's get a quick look at what we can expect with the markets. it is the national day there. a little bit of a quieter start for the week. futures in australia are looking at a positive open. the aussie dollar pretty flat after the jump we saw from the jobs numbers from the u.s.. taking a look at yen, not doing very much at the moment. a little boost when it comes to the metals prices. golden particular and oil. we will keep you up-to-date as trading gets underway in this part of the world. let's bring in a reporter from sydney on what to expect for asia. the headline number was pretty

good. we are looking at rage growth really. picturemade for a mixed when it came to u.s. assets. they do not same to know what to do by the end of it. asian stocks look like they were much more positive. from the point of view of an , it was strong growth but moderate inflation growth. that is about ideal. that is why we are seeing japan, south korea, hong kong, all of the futures indicated pretty strong opens. currency markets are more mixed with the dollar is not getting out of what williams had to say when he indicated rate hikes were still on the table. the dollar had a wretched start to 2017. six straight weeks of decline. that is the longest since 2010. haidi: this is going to be a

week dominated by central bank actions. rba kicking off at the first meeting of the year tomorrow. >> even before we get to the rba. everyone is going to be looking at japan where the boj was forced to come in on friday and by a massive amount of 10 year bonds at a very high price to get yields back under control. haidi: what can they do? >> that is what people will be asking themselves. they move toward a-year-old yield curvel -- a control, asking how much of the market in the control before they leave it completely nonfunctioning. now they have to accelerate purchases to hold down yields. what happens if yields rise again? they're probably happy that treasuries did not rise last week. if they did rise, what does governor kuroda do.

that will make for a nervous start in japan. what will the bond market do? how are stocks going to relate to that? a fairly jittery start to japan. lender,or its biggest mitsubishi. take a quick look at the chart. it jumped by the most since november because they expected an unexpected 17% jump in profits. we would expect similar actions in tokyo today. betty: let's move on to china where policies going the other direction. to boostthe pboc due their short-term money market rates? for the first time since 2013i believe russian mark >> >> a lot of people were surprised by that. a bond or stock

investor, you might have had a bit of suffering. it became back into the chinese market after a five-day break. in the longer-term term, the implications are quite positive. acted because it sees the economy getting stronger. it is confident that the economy is getting stronger. for asia in particular, china is so important that it is overall a positive. betty: thank you so much. that is a setup of what to look for in the asian markets this week. the big question for the u.s. market i momentum from friday and the lly we saw. the dow above the 20,000 mark again helped by the strong jobs report. is here with a report. datahen you go behind that , there is a mixed picture. added 2020 7000

jobs. the biggest job growth we have seen in four months. the pace of hiring the explanation -- expectations. unemployment went up. wage growth lags still shows that there is slack in the labor market. that means that they combined time with interest rate hikes. let's going to the bloomberg. we are setting up for the weekly drop in the dollar. the bloomberg dollar spot index fell in january by the most in 10 months. there's a lot of fresh data that is going to hit the market. there is more reaction to trump's rollback of regulation. what is that mean for investors? you have not heard the last of the rollback on dodd-frank. let's go back to the bloomberg. you have a big trump bump since the election.

they got another bump higher as a result of this latest news. there are some that say it is not going to make a difference. leavingeo jamie dimon the white house last week. clearly this is something a lot of wall street is focused on. the response to the 2008 financial crisis. there is not as much focus on what it means at -- if these regulations were to be gone. sentiment is month the many pieces of data we will be focused on. trade deficit is another key number. you are likely to see the same. in terms of president trump, he will continue to dominate the clinical headlines. we know he plans to meet with japan's prime minister later in the week. and the continued votes on trump nominees will move the market for sure. also, earnings globally

are being released around the world. what about the big names here in the u.s.? su: twitter, toyota, coca-cola. let's start with twitter because that technology stocks have really been fun. twitter has a lot to prove with slow growth. the stock has little changed since it reported third-quarter results. a weekxpected to have year. they are expected toome in at $.12 a share below is adjusted earnings just one year ago. space bracesment for a week fiscal. week nfl ratings. the hurricane hurt some stuff. flat revenue as well. well, but others

performed poorly. expected down from the third quarter. price optimism on oil is going to be weighed on the fact that they are targeting inflow versus outflow gives a lot of investors a reason to look past what will be a lame quarter to down the road. betty: thank you. i finally got to watch "star wars." month after it was released i finally got to see it. about takata.alk it has been looking for a buyer to help with a costly restructuring process. it is been trying to move on from the scandal surrounding its faulty products. we have a reporter in hong kong. takata ande about their safety systems. reporter: yes, key safety

systems was recommended by the panel which is driving the,'s restructuring. has been coming out saying that. systems,k at key data the world's fourth-largest maker of airbags. in 2015, it just had a global market share of 4%. the market is dominated by big players, like a swedish company. key safety systems was bought last year. so they are owned by a chinese company. underperate independently bong boeing to listen -- ning joyson. given the size of takata

forroblems, what is in it key safety systems? reporter: it would boost the market share and make it the world's number two airbag maker. it would give it a lot more access to japanese automakers, a key market for them. thank you so much. while we wonder when the weather might warm up here in new york, and looks like the heat in sydney could break a record. is that right? break a record that is stood for more than 120 years? haidi: that is correct. we saw temperatures at 40 degrees celsius at some of the points this weekend. it was sweltering. if the temperature goes above 35, it will be 10 straight days that the temperature is gone past that marker.

that will set a record. i saw the groundhog said six more weeks of winter for you guys. tt thanks for reminding me. i think i want to spend six months in the winter where you are then here. i will raise that with the editors here. much more ahead. australia's central bank is set for the next policy decision on tuesday. it will be a tough balancing act. we will explain why. this is bloomberg. ♪

betty: this is "daybreak australia." i am betty liu in new york. haidi: i am haidi lun in sydney. according to the soul economic daily, it will start producing

appliances in south carolina. saint-saens is set to make -- samsung is sent to make 2 million refrigerators and washing machines per year. betty: bonuses from two of britain's bailed out lenders. for the first time they will pay out more than rbs. they are said to have earmarked for the $20 million for a donis -- bonus. lloyds has referred -- returned to profit. may remain under state ownership of the next five years. "split,"e movie continues to dominate the american box office. it edged out the horror flick "rings," which debuted in second

place. two new anticipated movies of the theaters next week. the army of will meet tuesday. economists are expecting the central bank to leave the cash rate on hold at 1.3%. with a strong aussie dollar at the moment. a reporter is here. we have talked about this economy before, but it is a reversal. through 2013, western australian and queensland where the growth centers. that was when australia had the highest growth rate in the entire world at that time. now we have a record low cash rate. that is designed to keep western australia and queensland going. roaring housing prices

in75% in sydney, 50% melbourne. the central bank does not want to inflame that further. on the other hand, you have they capital -- the capital of western australia, hurt, really struggling. they have to do it the national aggregate. we are going to be on hold for some time. in sydney isusing 18 times the median when it comes to household incomes. what will they think about doing? investors can tackle it. it will happily look at harder again now. the logical thing would be to raise rates. they are not set up to do that at this point. you keep an eye on whether they undertake any targeted measured steps in the areas of housing.

you do not want to be upsetting it anywhere else in the country. in sydney, it is still very strong. betty: inflation in australia remains well below the bottom of the 2-3% inflation target. does that mean the bank will stay biased towards easing? >> we have a new governor. we had do cuts last year, and that was spurred by the week inflation that you mentioned. the new governor set out that he was going to show more flexibility on inflation. more toleranto be of it running at a lower rate for a longer. of time. rate, itp cutting the would not end up well. the question is, how much of an impact will it have on steering inflation and cutting rates. that wer question is

have a dollar which is lowering too. until not have a target 2018. there not expecting much on that front. anywhere, ita bias would be there. betty: thank you so much. we'll be watching very closely the decision and statement from the rba. mostxt, one of the polluted capitals. thousands of mongolians are now airing their grievances. this is bloomberg. ♪

haidi: this is "a bright estoril this --aybreak australia." betty: pollution is soaring in

mongolia. a reporter has more. reporter: there is growing frustration here because of the worsening air problem. the balloons symbolize the lungs of children dying from pollution. >> save our children. children are dying. people are finally saying they have had enough. reporter: when a woman was pregnant, they would use to wonder if it have a likeness to his mother or his father. but that is in the past. now parents pray that their child's heart will beat. air pollution is caused by a

combination of factors, including high man-made emissions, geography, and climate. influx ofeen an migrants from rural areas setting up their homes on the art scored. the harsh winters mean that half residentsidence -- rely on coal to stay warm in cook food. it is not worth investing in. it is become a city with no future. no results can be expected from here. the people living here are being poisoned. reporter: businesses have added their voice, saying that that air will drive away those who want to invest. >> we have to have people clean the air pollution. a bigger concern is not to lose the talented purse -- people we

already have in mongolia. be ater: it will humanitarian crisis is smog levels are not reduced. small children and children in the womb are the most value -- honorable. soon, mongolia's freezing winter will give way to spring and the need to earn coal will reduce. that was a reporter in mongolia. that is almost it for me on daybreak australia. we made it. we made it without a tweet from the president. we are going to talk about the trump effect in asia. we will try to wrap up the defense secretary's trip in the region. he was supposed to come here to

call the jitters. did he achieve that? he made comments about the east china sea. ask a professor about that. he ruffled some feathers in china, but he stood side-bside with japaand said the u.s. 100% supports their allies. in some ways, he called parts of asia. in others, there are many questions still remaining. we will see how all of that affects the asian markets. money isell you where being put in asia these days. haidi: exactly. where are we at when it comes to the trump rally and what does it mean for asia? trade's,rump financials and industrials are getting too crowded. haidi: looking forward to the

hours with yvonne and betty. that is it for daybreak australia. we are looking at a slightly positive open.

♪ asian stocks poised for gains. the yen slightly stronger. loses: president trump the first battle to reinstate his travel ban. company chinese owned emerges as a key bitter for embattled airbag maker takata. yvonne: honda defend his contribution saying the president misunderstands the situation. betty: this