♪ 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 is "bloomberg markets: asia," coming to you

from new york and asian headquarters. yvonne: it is just after 7:00 a.m. in hong kong. betty: busy week for us in asia. not just because it is super bowl sunday. the region is waking up to more news from president trump regarding russia and the travel ban. yvonne: you mentioned the super bowl. you brought it up. i just had a friend text me a video from their saying that i am missing the action. i have to stay on the job. it is all about the markets today. betty: we can switch in between the commercials. at the asianlook pacific. new zealand closed today. australia looking pretty flat right now a couple of minutes after the open.

how much airplay will that get when the rba meets this week? we are also coming down to the open in japan and korea. the yen's might not bode well for the next few days. we could be seeing a little boost here for some stocks. what a wild day for the bond markets in japan. to .01%lds back down after they bought bonds in the secondary market. what are we looking out for on wall street this week? betty: we just got through the big jobs report on friday. we will look for more economic data later this week. earnings are likely to push the markets around. a look at what is ahead for wall street. su keenan is here. su: a lot of mixed data in the jobs report.

220 7000 jobs were added which exceeded expectations. also, the biggest job growth jump in a few months. unemployment picked up to 4.8%. wage growth lagged. stillwed that there is problems in the labor markets. there is still room to get to their targets. there is no reason to raise rates. that impacts the dollar. if we look at the bloomberg 4620, it shows this season of the weakening dollar. the bloomberg spot index shows the dollar fell by the most in 10 months. president says he wants to see a weaker dollar. betty: he has been talking that down. there is a lot of fresh data. also, more reaction to the

rollbacks of financial regulation. su: for many on wall street this is very big news. let's go back into the bloomberg because the trump bump is in full force for banks. this is one of the biggest rallying sectors from the election. look at that sharp rise higher in the green line at the top. that is in response to this move to deregulate financial institutions. dodd-frank was responsible for cleaning up the 2008 financial crisis. concerned,street is wall street is happy about it. economists think we will see some weakening in january. the trade deficit is expected to stay the same. headlines, the trump he will meet japan's prime minister this week. we are also getting the

peak of earnings. whether the big names? coca-cola., twitter says they have a lot to prove thanks to high expectations of revenue. disney is bracing for a potentially week fiscal first-quarter. cable was hurt by week nfl ratings. wars," did well, but many other films performed poorly. let's get to the first word news. benjamin netanyahu says he will push for a united international

response to iran's missile tests. shinzo abe we will meet with theresa may just days before he meets with president trump. china has urged the u.s. to stop making wrong comments on the sovereignty of disputed islands in the south china sea. the criticism comes after the u.s. secretary of defense says the u.s. would help defend two uninhabited islands in the south china sea. the commentsmade on saturday after meeting with the japanese prime minister. he also said the u.s. would use the atlantic efforts to resolve the dispute. the filipino president has canceled because after three soldiers were ambushed and killed in the country south.

he admitted that a lasting peace with the maoists may not come during his term. he will continue to pursue a separate cease-fire with muslim rebels. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. betty: thank you. president trump has been blasted by both republican and democratic lawmakers over his latest comments of vladimir putin. ramy inocencio has the details. ramy: it is really disturbing. bipartisan congressman, from both sides of the aisle, say they are confused and angry. the issue is whether u.s. actions are morally equivalent to russian actions around the world. president trump says yes. let's listen to what he said. we have a lotp: of killers. do you think our country is so innocent? decent -- do you think our country is so innocent? ramy: that was a next her from

erring on the most of american of days, the super bowl. it is getting a bipartisan reaction. house speaker mitch mcconnell said there is no moral equivalency. senator marco rubio of florida said, when has a democratic political activist been poisoned by the gop? are talking about the poisoning of the ukrainian president back in 2004. also, the dollar of vice president cheney saying that moral equivalence is deeply troubling and wrong. there is one person who is not backing down in terms of their defense of president trump, and that is vice president mike pence. he is criticalat of past government policies. mike pence: president trump

throughout his life, his campaign, and this administration has never hesitated to be critical of government policies by the united date in the past. there is no moral equivalency. ramy: one thing that is interesting is that he is talking about government policies. but when it comes to russia, there is mixed messaging. has pence says that u.s. its eyes on russia. the u.n. ambassador says the same. back and little bit of forth between the president and the vice president and others. betty: what about the travel ban? the white house losing the van to reinstate the travel ban. ramy: looks like this is a backward step. the ninth circuit court of appeals in san francisco, traditionally a liberal leaning court, said that the white house does not have the ability to

actually stop people from coming into the country based on national security issues. asking the state of washington, minnesota, and the trump white house to file more arguments on monday. we have 24 hours left before anything new might happen. until then, the people can still travel to the united dates. mike pence said that in any courtroom am especially the supreme court, they think they are going to win. it is clear that the president pushhave the ability to through national security issues. remember, this is a liberal leaning federal appeals court. thinkseinstein said she it is going to go to the supreme court even if it is a divided supreme court. just executive ther, it is supporters of dodd frank act after donald trump are -- ordered a review of

the law. ramy: on friday, donald trump issued another executive action laying the groundwork for the guiding of dodd-frank. because mr.sting trump himself said businesses cannot get money to cut the banks will not let them borrow. look at this chart. if you believe in numbers, numbers do not lie. i guess we do not have the chart. u.s. loan data has been rising 75% ever since the inaction of dodd-frank back in 2010. it is interesting to see what is happening there, despite mr. trump saying that banks are not lending money out to businesses. there is the, issue of wall street needing a bomb, but main street wondering if anything will come of it. a chinese airbag maker

has emerged for a buyer for takata as they try to move on from a scandal. let's bring in rosalind chin with more on this. tells us about the potential buyer, key safety systems. they were recommended that key safety systems be a purchaser. no final decision has been made. let's look a key safety systems. they are the world's fourth-largest airbag maker. that does not make it that day, with only a global market share of 4% in 2015. the market is dominated by a few big players. it was bought by a chinese company last year for $920 million. key safety does operate

independently of the company that bought them. they have been talking to takata in these talks. like a lot ofds problems they would be inheriting. what is in it for key safety systems? rosalind: it would give them an immediate boost to the number two airbag supplier in the world. they would get a lot closer to the number one. they would also have a lot more access to japanese automakers, a key market for them. betty: thank you so much. still ahead, from toilet seats to cosmetics. find out how china might be punishing south korea over its defense decisions. plus, the rba is set to make its first rate decision of beer on tuesday. what about the aussie dollar?

this is bloomberg. ♪

toty: we are counting down asia's first major market opens this morning. trading in sydney is already underway. stocks are trading higher and .6 -- .06% on a monday morning. this is "bloomberg markets: asia ." yvonne: a quick check of the business headlines. samsung appears to be the latest foreign company to sign on to president trump's american any fracturing drive. they will start producing home appliances in south carolina. they will intimate 2 million washing machines and refrigerators every year. last year, they reveal they were

considering bought -- building a new factory in the u.s. printed anbank apology in full-page ads in all german newspapers over the weekend. they said legal cases dating back several years cost the company reputation and trust in addition to $5.4 billion. the misconduct on a few employees. yvonne: honda has boosted the profit forecast for the second time this fiscal year. they say profit is up $7 billion, an increase of 21% thanks to the weakening of the yen. the car tradeed between the two countries unfair. the japanese prime minister said he will settle the issue when he meets with president trump this week. australia, new zealand,

thailand, and the philippines are all expected to keep their monetary policy unchanged. event thatat the will drive markets this week. a reporter joins us. let's start off with what we saw on friday with the u.s. jobs report. a surge in payrolls make it seems like a rate hike is back on the table. how might that affect thinking in asia? reporter: good morning. and looks like the fed will continue to normalize policy this year. there might be to hikes, one in june and when he december. the fact that out they could be liberal and have more. what it means for central banks in the asia is that they will be more cautious. for some of them there have been easing, like they reserve bank

of india. they will take a more per cautious stance in terms of whether they seek to deliver further rate cuts. the last forely be this fiscal cycle. betty: i want to bring up this chart that our viewers can see which have to do with the dollar. even though we are seeing robust economic data coming up from the u.s., the dollar has been weakening over the last month. part of it has to do with donald trump. theave been talking down dollar. how might that be a complicating actor for the central banks who do want to ease, but might not be able to? reporter: the weakness in the u.s. dollar is actually helping central banks in the region. a lot of them were concerned about the significant strength in the u.s. dollar and a

significant pressure on currencies in a particular markets, like china. the weakness in the u.s. dollar is coming as a relief. however, we should not forget that u.s. bonds are still holding up. while central banks in the region are a bit relieved that the u.s. dollar is falling off a little bit, they will still be keeping an i on u.s. yields as well. i think it will be a favorable environment for equities. the u.s. dollar will continue to trend lower in the short-term. we are seeing continued strength in u.s. activities as well. reflect in asian

equities. on top of that, we will see a return of foreign investors back into asia because they have sought out quite aggressively since the presidential election. they will be keen to get their toes back in. selloffwhat about the on friday after pboc came off with more tightening. it should not be a surprise that they are doing this, given the news that they want to deleverage. what you think there was such an immediate impact when it comes to the pboc? it suggests they are quite comfortable with the way growth is going. now they are starting to address the other risks in the economy, mainly financial stability risks. this is a further attempt to

stabilize the currency which we know has been under a lot of the presentation pressure on the last few months. and looks like they are starting their first that's toward a and rain in growth and property prices. that suggests they may be willing to sacrifice a little near-term growth in order to achieve financial stability. yvonne: what does that mean for the yen? throughtinue to burn their foreign reserves. will that be an option for pboc? reporter: the foreign currency situation will continue to be important for china. it is clear they want to maintain stability. not necessarily the yen against the u.s. dollar. with the dollar weakening of

late, that is taken pressure off the chinese yuan. for now, we expect a slight decline in fx reserves. we want to see the u.s. dollar come back and rally again at some point, that might signal the next rate hike. we would also see the chinese you want, under pressure again. thank you. up next, 18 months ago one of australia's it is banks changed to a more domestic strategy. this is bloomberg. ♪

yvonne: shares of national

australia bank right now up 1.3% out of sydney. let's get the latest from a reporter john -- joining us from sydney. this is falling in line with market expectations, right? reporter: yes, what the market was expecting. it is about $1.2 billion u.s. it is down 1% on year. quarterly revenue was up 1%. it probably has a lot to do with bad data charges. that is a pretty good result from national australia bank. expenses were also up 5% in the quarter due to regulatory costs and wages as well as staff pay raises. broadly speaking, a pretty

positive first-quarter trading update. yvonne: two more of australia's banks are going to be announcing their results. does this indicate anything of what we can expect? reporter: we have commonwealth bank coming out with first half results on the 17th of worry. february. the regulatory environment is becoming cover for all of the australian banks. policy mayw higher have seemed to have come to an end. the real challenge is to control those costs. that will be the theme for the earnings season out of the rest of the banks. betty: we will be watching that for the rest of this month. much more ahead. we are talking about china talking tough as the u.s. reiterates its pledge to protect

japan's interest in the south china sea. we will talk about the territorial dispute next. this is bloomberg. ♪

a.m. monday in hong kong. 30 minutes away from asia's first major market opens. betty: it is 6:30 p.m. sunday in new york where markets are markings have not closed, markets closed on fridays. we are waiting for the markets to open. kickoff right now. 6:30 p.m. of the super bowl in houston. yvonne: plenty of action there. but you can keep watching "bloomberg markets: asia." haidi: president trump's travel ban remains suspended after a

u.s. appeals court declined to grant on administrative repeal. it gave the justice department until monday to submit further arguments. will hinge on if the executive branch alone has authority on issues of national security. the head of the national economic council has taken aim at the dodd-frank law. the former number two at goldman sachs has joined the conversation. he says the trump administration will attack all aspects of dodd-frank as it works toward jobs growth. >> we want to get the banks working again. we want banks to be back in the lending business. what we think dodd-frank has done is that it has stopped banks from lending to small and medium-sized businesses and also entrepreneurs. haidi: the far right candidate

for the french presidency has promised a brexit style referendum. campaign, le pen says the brexit experience has failed. she calls for economic patriotism. spoiled economic monetary system has ruined france. >> who can find confidence in the system that does not work because of his malfunction. that is why when i am elected, i will announce the referendum within the first six months of my mandate on whether to stay or leave the eu. out -- carriedry out further missile tests. a commander of the revolutionary land told state media that

to land missiles were successfully testfired in the country's north. companies based in toronto, lebanon, and china all were in. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. start to theve asian session. let's see how asian markets are shaping up so far. david ingles is joining us from singapore. to go on with a lot of things not seeming ideal in the world. are getting very good moves early in australia. 70-80%u look at sydney, of stocks are on their way up. that is carrying the load. have a look at yields. yields are being offered at 280 on the aussie tender. back toe you

mid-november. if you look at the forecast, chances are we might see that have a little more upside this week. when you look at the dollar, not a lot of movement on the currency markets. it is very early. we are coming off a sixth straight week of weakness in the u.s. dollar. you can look at the u.s. bloomberg dollar index. ,hen it comes down to the fed you look at the probability of a move in march. betty: the futures though. tell us what their .24 tokyo and korea, just about to open? david: just under 30 minutes away. we are looking at gains for both markets at the open. will be curious for japan because the yen is on a strengthening trend. .112 onlose to dollar-yen. it was a horrible week in japan

of a drop on the nikkei 225. a lot of earnings will be on focus. watch stocks like toyota as well. one stock we're following closely is day will shipping. as i mentioned, currencies are not moving a lot. formll take gains in any they come. betty: the bulls will take those gains. what are other stock that will stick out on this monday session? david: japanese banks. despite were very good that these banks had to endure a year where the majority of the time yields were very low. it is showing up in earnings. latest 12 was the report.

u.s.w a move of 7% in the let's have a look at the bond markets. on friday, a comes back to the story about how that boj is starting to reassert its control over the bond market. they caught -- they came out and ond they up offer to buy unlimited amount of bonds. this is from the morning session on friday into the closed your it we were up as much is 15, but shot back to 10 this morning. this might provide some list for the banks which at the moment look to be the driving force when tokyo opens up in 26 -- 25 minutes. guys. haidi: thank you. president trump's top man at the pentagon took a more measured tone with china this weekend.

us on generalwith mattis's trip. reporter: look at the comments coming from trump's top diplomat, rex tillerson, in his hearings. he insinuated possible military action to stop china from accessing the south china sea. then you have the defense secretary coming to asia and saying we need to use diplomacy. a bit of a role reversal there. this is what james mattis had to say. mad dog mattis, that is his nickname. what we have to do is exhaust all diplomatic efforts to try to resolve this properly. stance to be one that reinforces our diplomats. he added, at this time we do not see any need for dramatic military moves at all.

he did say china's actions in the south china sea are a regional threat. this is the first trip abroad for a cabinet member of donald trump's administration. he assuaged some of the fears in seoul and tokyo that the united states will not stand by its alliances. you mentioned that japan has of a partner country. also, he said that need to strengthen the alliance further. he also mentioned about the that are administered by japan. mr. james mattis says it falls under the treaty, not something --t china agrees with terry agrees with.

betty: military response is exactly what is troubling on the minds of many with this type of position the u.s. is taking. what is china's response so far to general mattis's trip? reporter: the response from the foreign ministry is predictable saying that the u.s. japan alliance is a result of a cold war. this is a comment they have used repeatedly. keep in mind, this is coming after james mattis met with shinzo abe in tokyo. the japanese prime minister will meet president trump later this week in washington. china reaffirmed their claim to those islands that japan also claims. we urge the u.s. to take a responsible attitude and stop making wrong comments on the sovereignty of those islands. beijing was measured a bit but still strong in its claim of both in the south

china sea and the east china sea. betty: resolute but still predictable and the response. now south korea is fearing china may be stepping up economic retaliation on his decision to deploy a u.s. mitchell -- u.s. missile shield. a reporter has been looking into this side of the story. give us the details. reporter: that's what we have heard from the south korean finance minister. he suspects china is using unfair and in direct measures to punish south korea, particularly on imports in south korea to china. in light of this u.s. defense shield that seal in washington said they are set up in deploying later this year. is the defense shield that is aimed at targeting north korean missiles to defend south korean from those missiles.

they say it is being aimed at china and curbing china's military progress. there is contention around this. the south koreans are trying to grow their exports. we saw the numbers pick up in december. domestically, they have seen consumption been crimped by political turmoil. uptick in the an number of cosmetics from south korea that have been rejected by the chinese. even flights and travel being affected. also, cultural exports. also, a singers concert were canceled for no reason at all. china is this a case that is exploiting the political crisis in south korea? reporter: we spoke to eight china export that said that

might be the case. china might be trying to grow the opposition in south korea to this u.s. missile defense shield. the made also be hoping next president may delay or scrap the system. in terms of what we have seen, the official data has not filtered through. we will have to look for the numbers. most are agreed that the tension between south korea and china is unlikely to of the as james mattis said. haidi: thank you. a we will carry on that foreign affairs discussion. with the white house favor a military strike? this is bloomberg. ♪

yvonne: this is "bloomberg markets: asia." betty: a quick check of the headlines. bonuses from britain's bailout lenders tell a contrasting tale. lloyds is forced to pay out more than rbs. rbs has earmarked forager $20 million for its bonus clause. that is $60 million less than lloyds. lloyds return to profitability while rbs remains mired in issues. key safetynese owned systems has emerged as the lead bidder for takata. no final decision has been made.

a swedish company is a rival in the auction. betty: the new psychological it" held the number one spot in the american box office for the third weekend. ngs," whicht "ri debuted in second place. "lego" movie new comes out. i know what i'm doing next weekend. yvonne: let's move on. president trump has triggered a legal battle over his immigration ban. he questioned the intelligence community and battle diplomatic allies. a reporter is joining us from melbourne. so china is the biggest worry

for him. it is great to have you on the program. given what is happened in the last two weeks in a trump administration with russia, mexico, and asia, what should we be focused on? focusing on what on china asolicy far as the asia-pacific is concerned. anhas shown that he has isolationist view of foreign-policy. on the other hand, he seems to be intent on having a belligerent approach towards china. we see that over taiwan, the south china sea, and now the latest where america seems to be joining japan in its dispute with china over the islands. from jamesdid hear mattis, the defense secretary,

he showed a difference then what rex tillerson said, which was blocking chinese ships from accessing the south china sea. he wants moreaid diplomacy and that military maneuvers are not needed. does that symbolize the stance? >> it is hard to say. there seems to be confusion at the white house at the moment. the foreign policy we see a emerging is still very difficult to understand. the main thing is the drive against china. the attempt to challenge china in ways that are undiplomatic. seem tottis's comments be at odds with rex tillerson's comments. that shows that there is not agreement in the white house itself. there might be people in the white house who are thinking

this might be the time to take china on, rather than waiting 10 years when china will be stronger in military terms. betty: absolutely. as we look ahead, this is something that prime minister shinzo abe will be talking about with trump when they meet this week. what will be the key issue? the first meeting was a cordial meet and greet. since then they have talked about currency devaluation. how can shinzo abe better this relationship in the next meeting? >> very interesting question. i think there are certain things that trump and shinzo abe have in common. shinzo abe has always been very interested in building japan back into a normal power. thatis having a military

is able to take part in military exercises and engagements around the world. japanese, the constitution at the moment prevents that. shinzo abe wants to get rid of clause nine in the japanese constitution or in mr. trump would be very pleased to see go to so that japan can join america in america's attempts to deal aggressively with china. be -- i do not want to feel like we're talking about this issue that you have just stated at the outset that you are worried about china. one thing he said in your notes is that you are wondering if there is a mood in the white house for a strike on china in the near future. what do you mean by that? difficult to find the approachese kinds of

that mr. trump has taken towards china. he has been flirting with china policy. he has been cozying up to the taiwanese president. betty: what are you talking about a military strike? what are you talking about here at -- about here? take china on economically into a trade war. a trade war will push china into a push back position. iswill negate whatever it that trump does economically. suggestionllerson's that america will do something aggressivena's military moves in the south china sea. we really need to know what the thinking is here. my idea is that it could well be amongst some of the hawks in mr.

if americainet, that takes on china now, it would be in a very strong position militarily. but it would be that -- disastrous if military thinking is what the cabinet is moving towards. that: do you really think that is something that is being prepared in the white house? you believe asian leaders are entertaining that possibility and reacting to that? >> i think there is great concern all around the asia-pacific at the moment. very great concern. one cannot be clear what the thinking is in the white house. it seems utterly chaotic. we only have the straws in the wind. support of taiwan.

rex tillerson's threats over the south china sea. is, bestames mattis james mattis's comments about the japanese islands. we have to take all this very seriously. betty: thank you so much for joining us. principal fellow at the asia institute at the university of melbourne. profit, honda racing is forecast for the second time this fiscal year. we break down the results and ask about its outlooks. this is bloomberg. ♪

haidi: some of japan's against automakers aren't headlines today. let's bring in an asia auto editor. more about those earnings, let's hear something. what about the honda results?

report shows that they raised their operating profit forecast for this fiscal year. of a much the back weaker yen. the currency has weekend 7% since donald trump stepped into office. early investors are looking at what this means for the oil issues this week. tell us about those reports of a tie up between toyota and suzuki. toyota said they are not the thece of the report on suzuki pact. they're holding a board meeting today on this issue. this headline just coming across. toyota and suzuki have been

in talks about cooperation. this was a couple months ago. it happened after suzuki this all its partnership with volkswagen. suzuki wants to do this because it is a small automaker. costs are high to develop new technology. idea is to bee able to build an ecosystem. we are seeing toyota have taiex across the industry. betty: thank you so much. we will be watching out for the toyota story. those are bloomberg automotive reporter. a lot more ahead on "bloomberg markets: asia." plenty more to come with asia's major market opens moments away.

absolutely. a little bit of a lift here for asia

♪ >> asian stocks make a early gains after friday's rally in new york. the yen weaker. >> president trump losing a battle to reinstate his travel ban, but they say they will win the war. a chinese owned company as the key better for embattled airbag maker takata. >> shares fall, but prices rise. ofs is the second hour "daybreak asia" live from

bloomberg headquarters. i am yvonne man in hong kong. >> i am betty liu on super bowl sunday. in the u.s.ke a win markets on friday after that better than expected payroll number. the question is what does that mean for the fed, right? full,is the half a glass but mixed. the headline number was a blowout figure, but wage growth slowed. net gives the fed time to determine whether and when policies will take effect for 2017, possibly the next year, but in the meantime, but a win for the stock market. let's get the latest from david ingles. david: right. risk on. let's have a look across assets before we look at the equity markets.

interesting moves, the dollar on a six-week slide, gold bid up, oil back to the highest levels so interesting, to see this diversions of do we get a bid for risk haven assets now there is uncertainty? we are not seeing that at the moment. 2.46 on your u.s. 10 year, speaking to this goldilocks moment. the probability of a fed hike 30%, leading to more dollar weakness. have a look at the bloomberg dollar index. in japan, south korea, and australia. japan on a bond-based rally at the moment. up,nikkei 225 on the way we aree yen weakens, but

under 113, so watch this space closely. there is australia for you. divvy upat how things and australia come on the way up . korea,u look at south 2085 is your level. let's check japanese banks, one group we will be following closely. adrs, unchanged at the moment. , 1% up,ook at the topix and there is your yield spread in japan. >> you could not end there is yourself. what are you talking about. millions of people are watching all around the world. david ingles there.

president trump blasted by republican and democratic lawmakers over the latest comments about vladimir putin. that being broadcast all around the world. ramy inocencio has more on his comments. ramy: so many people watching this development. it is a question of moral equivalency, whether u.s. action around the world is a cleveland action.an strangely, according to many, president trump is saying, yes. killers.e a lot of you think our country is so innocent? do think our country is so innocent? ramy: implying the u.s. kills a lot of people as russia. a lot of eyebrows rising, bipartisan eyebrows, passion, anger, and confusion. for example, mitch mcconnell saying there is no moral equivalency here. senator marco rubio tweeting out "whensponse, saying that

hasn't democratic political activist been poisoned by the gop, or vice versa." he says we are not as the same as putin. liz cheney, congresswoman and daughter of dick cheney saying this moral equivalency is wrong. for oneexpect that person in the white house, president donald trump's vice president mike pence, has a defense. let's listen to him. >> look at, president trump throughout his life at his campaign and this administration has never hesitated to be critical of government policies by the united states in the past , but there was no moral equivalency. he is talking about government policies, but with russia, it is here, there. president trump pulling back on

remarks and criticisms, while mr. pence is saying the u.s. is watching russia and saying sanctions remain. a fine line mike pence has to walk of these days. reinstating this travel ban, so what is the latest? ramy: it is not an effect right now because of what happened in san francisco, the ninth circuit of appeals, the judge said two states as well as the white house all have to resubmit arguments, and more arguments on top of what they said, including washington state and minnesota. suspension ofhe the executive order on the behalf of department of homeland security, as well as the state department, so mix to signals going on in the backcourt to the white house argument is does the executive branch alone control national security.

mr. pence, vice president, says yes, the executive does have absolute control. this is his quote here. "it is quite clear the president has the ability and we will move quickly and they expect to win." they do have to convince the ninth circuit court of appeals. dianne feinstein of a california says they expect this will go to the supreme court. just given the fact we saw that boost in financials on friday, it really was donald trump and the move towards the 2010 dodd-frank act, repairing it or changing it. how will that be tested here on your side of things? ramy: it is interesting because the testing will come from democrats and supporters of the dodd-frank act, but as of friday, president trump started

the process of cutting, and some critics say, gutting the dodd frank act, designed to regulate businesses in the wake of the financial crisis, but at the white house, he met with j.p. morgan, blackstone, and they were in attendance when mr. trump said this specifically about dodd-frank. we don't have that, but i will tell you what he said. he said basically they will cut a lot out of dodd-frank, and they think businesses can't get money right now, but the banks are not letting people borrow. i do want to show you one thing , 558e bloomberg terminal nine, look at that white line. on the left side 2010 come on the right side today, that is the amount of loan origination that has happened since dodd-frank was enacted, up 75%. lending is at a 70 year high.

this goes against what mr. trump has been saying that loan originations have fallen not. he points to small businesses and a negative effect, but the numbers don't lie that that is still rising. we do have to look forward to what is happening, the trump am far on friday, but also wall street versus main street, and a lot of the people who supported mr. trump might say you can campaigned against wall street, and now you're sitting with them. ramy inocencio, thank you. first word news with haidi lun. benjamin netanyahu says he will push for a united international response to iran's ballistic missile test. the israeli prime minister is due to meet theresa may monday ahead of his white house visit with president trump. benjamin netanyahu said the emphasis will be on a

partnership against iran's aggression. discuss trade to and technology ties between the u.k. and israel. china has urged the u.s. to stop making wrong comments about the sovereignty of disputed islands in the east china sea. criticism comes after the u.s. secretary of defense said the u.s. help to defend to uninhabited islands that japan controls, but china also claims its own. he made the comments after meeting prime minister shinzo abe and said the u.s. would use diplomatic efforts to resolve the dispute. china's policy makers calling for quality and efficiency when it comes to the farming sector. state media saying the communist party central committee has published documents focusing on agricultural reforms and sustainable development. and want to stabilize rice wheat production and increase corn acreage. up toshares are rising,

percent in the early session, after the company boosted forecast for the second time this fiscal year. it says operating profit at him a $7 billion, an increase of 21%, thanks largely to a weakening yen. trump has slammed currency moves, but hopes are that premise row they will settle the issue when he meets the president this week. >> we not only have production, but development facilities in the u.s., about 70% of our vehicles sold in america are made there. i hope mr. trump will realize there has been some misunderstanding about how much we already contribute in the u.s. haidi: global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: thank you.

emerging as the lead bidder, the ag maker hasb been looking for a buyer after scandal surrounding its products. rosalind chin has the latest on this now. airbag world,e key safety is a player here. rosalind: the fourth biggest airbag maker in the world, but only has a market share of 4%, so pretty small. revenue of $1.6 in 2015. last year, it was bought by a $920se company for about million. it says it operates independently and has been , soing directly with takata key safety systems was the company put ford by an external 'smmittee driving takata

restructuring efforts, but decisionys no final has been made. key safety is working with bain capital, which will take a 30% stake. >> what is in it for them. takata has a lot of problems. rosalind: and a lot of liabilities. key systems will get boosted to be the world's number two air back maker if it does go ahead and purchase takata. the thing is that key safety ,ystems itself is not that big but this will give it a boost and it will be closer to the industry leader. there would also give it access to japanese automakers, one of the key markets. >> thank you so much. the story on going on takata. trump'sead, president chief economic adviser pushes to overhaul the dodd-frank rule. we will hear from the former

number two at goldman sachs, gary cohn. >> the dollar expected to continue to weekend in the near term. we will have more. this is bloomberg. ♪

>> this is "bloomberg daybreak: asia." i am betty liu in new york. >> samsung electronics the latest foreign company to sign up to president trump's american manufacturing drive. will start producing home appliances in south carolina with a new plant to make 2 million refrigerators and washing machines every year. last week, trump thank the company on twitter after it revealed it was considering building a new factory in the u.s. bonuses from two of britons bailed out lenders tell a contrasting tale.

mark $420y rbs your million for its bonus pot, 60 million less than lloyds. returned to profitability, while rbs remains mired in issues and may remain in state ownership for five years. >> deutsche bank said a public sorry for serious errors that cost the lender billions. cases datingal back several years cost of the company reputation and trust. billion in to $5.4 fines since 2015. it blames the conduct of a few employees. in earlycks higher trading in the wake of job numbers out of the u.s. is central banks as australia, india, the

philippines, and new zealand set monetary policy. happy new year. great to see you. let's talk about the u.s. jobs report. a bit of a goldilocks solution, solid headline growth, but really wage growth that was a letdown here. had you gauge this. fed has bought some time to determine when the next the feds is, but williams sang march could be on the table. >> what i try to do is avoid the thisal narrative around hindsight and building a story on how the market has moved. it's more interesting to think about where positioning was going into the event and how that influenced how the market moved. are seeing thewe largest speculative short and the treasury market in history. the largest short in history, into her cleat when it has been

this short are near the short in the past, treasuries have never fallen, so we know it is really a big portion of the shorts are cta's. >> these are the hedge funds. >> exactly. they are momentum generated, so that is important. ouricing on top is that analysis suggests the signals around ctas are suggesting they will start moving in the other direction soon based on where the signals are going, so a lot of this is built into this perfect storm over the next few months for lower yields, defensive equity positioning, both in developed markets and emerging markets. >> what does it mean for this rotation from bonds to stocks. this it have further to go? we talk about financials, industrials, is this a chance to

rotate into other assets like emerging-markets? these stocks to bonds rotation is overblown. what you see happening typically is a rotation from bond-like -- theationary assets, by far most crowded sectors and all equities. the least crowded sector and most under owned our u.s. utilities, staples, and the philippines, i highly defensive equity index, so you will see a t rotation back into these trades. there be a lot of bloodletting in those sectors? >> i think the pain trade is clearly in this direction. the unwind will be painful for a lot of players mostly because the active hedge fund managers like these high data rates -- beta rates, so it is not hard to

get behind them. when you do get the reversal, it will be painful. >> i'm not sure if you can see this chart, but one of our tech experts or chart experts came up with this chart where he is showing us the equity yield, real earnings yield, of the s&p 500 is actually coming down further to almost 2.0, showing perhaps we may be seeing the end of at least for now this rally in equity markets, particularly the s&p. give me your view on this what the real earnings tells you. agreebe frank with you, i for the reasons we spoke about, i think the real earnings yield is based on a multiple that can move up and down for lots of different reasons that have

nothing to do with fundamentals. in the u.s. equities market, it is heavily crowded, so when you look at position across developed markets, the u.s. is the most crowded out there. japan is neutral, and europe is neutral, but turning up. it is clear that the bulk of money that has come into the market since the u.s. elections is bound for the u.s. i would agree with the conclusion, which is there is more downside in the u.s. you mentioned emerging-market seeing opportunity. where does china lie and that? after this lunar new year holiday, they came out and said we will start tightening things, ramping up interest rates on the opera market -- open market. does that continue? are lotsledging there of european headlines on the horizon and the u.s., i think china is the single biggest risk for global markets. not because it will take down large equity indices in the but

, within our positioning data, the single most crowded non-equity out there is copper position. it is at historic highs. we have never seen anything like this in the history of our data. most of that position is driven by chinese retail investors and chinese ctas, so again playing a big role. >> more speculation come you think? >> we think it is all speculation of p or the economy has not changed that much in the last 3-4 months. the other thing is that the cta signals are starting to turn copper and indicate you should be selling copper in the near future, so a lot of things are happening that suggests some big moves. >> great to have you here. still ahead, australia bank earnings with the decline, details live from sydney next.

this is bloomberg. ♪

>> this is "bloomberg daybreak: asia." i am yvonne man. shares and national australia bank higher, up 1.3% after unaudited cash profit for the first quarter of $1.2 billion. for more, paul allen in sydney. this is broadly in line with market expectations, right? paul: pretty much. no great surprise with that 1.6line number, about billion australian dollars, in line with what the market was expecting, but down 1% on year. quarterly revenue was up 1%, dragging that backwards, expenses rising for national australia bank, mainly due to regulatory and staffing costs as well. really trading,

and we see shares up 1.3%, bad debt was down 23 percent, so i reversal of what we saw in the second half last year, so bad debt charges down, the market trading the good news there. of australia's major banks will announce results this month. are we expecting a soft quarter for them as well? paul: commonwealth bank on anz on friday. they do face the same challenges, the regulatory environment tougher, lending growth has slowed, costs are rising, and if we look at what said, funding cause elevated, competition remains intense. i would not be surprised to see a variation of those two from the other ceos next week. >> paul allen from sydney.

up next, honda raises full-year operating profit for a second time this year. we will look at what is driving the optimism. this is bloomberg. ♪

singapore. we are halfway -- half an hour away from the opening. watching "daybreak asia." a big week in australia on the monetary policy. our retail sales numbers are coming in lower than what economists had estimated, a decline of 1/10 of 1%. in december, there was a gain of 3/10 of 1% during the holiday shopping season. --ching economists ask

estimates of 1/10 of 1%. we will see how this and other --bers might affect the affect things. let's look at how the asian markets are shaking up. sunny in singapore and painfully humid. hot markets. asia-pacific, 4/10 of 1%, a very strong start to the week. apart from equities, i want to point out this rally we are seeing in the home market space with oil. of 23.t bid, 112 the reason i bring that up is because of the inflation story.

all of these reflation numbers we have seen could perhaps be something more, that argument could have firmer ground when you see what is happening in oil. gold, perhaps telling the same story on the same side of the coin. the dollar seeing a little bit of gains coming up after six weeks of decline. a lot of movement we are tracking, let's took the board and look at the names we are checking in japan. mitsubishi. to the upside, surprise profit growth. , it is the company that makes electronic synthesizers for us 1980's babies. they're saying they're going to lose a lot of money, or they missed estimates, rather. has come up and said it is

going to lose less money. no ring is net loss forecast for the year. it reported a surprise profit. for sharp.ght trade the value has tripled since last august. let me wrap up with new crest. we talked about gold. how does this feed into the earning stories for new crest? 80% of the company's revenue -- ourrom digging up colleagues are basically saying we have to see more details from new crest on how it plans to bring down unit cost for gold. given just the dollar weakness we have seen, we have to talk about asian currencies. two of the best-performing currencies may be poised for big reversal according to some analysts.

goldman.kes of a warning, if you could call it that. we're talking about the south yuan. jan -- you on -- why did we see this rally? the thinking is is not an andrtune time to stand out intervene, if you will, and try to stem the rally because of the risk you could be labeled a currency manipulator. currency gains have outperform. us, iney are telling asia, markets and investors don't seem to be pricing and properly risks that once these things come into place, these currencies could be hit the most because of the structure of these economies.

taiwan gets about 60% of its output from gdp -- output from exports, rather. if economies get hit, you have automatic mechanism that the currencies will adjust to soften the blow. that is the thinking. david live from singapore. it's can update on the headlines. >> president trump's travel ban remains suspended after the u.s. declined theirt appeal. he gave the justice department on monday to submit arguments van.epealing -- for the -- ban. the head of president trump's national economic council has taken aim at the dodd-frank laws .

the former number two of goldman sachs has joined the conversation on the deregulation as the administration waits to new -- t has -- see its >> we want to get the banks working again. we want to get banks back in the lending business. we think dodd-frank has stopped aches from lending. lending.from >> iran carried out further missile tests on saturday. a commander of the revolutionary guard told state media that a range of missiles were successfully testfired during drills. among those targeted by new u.s. sanctions are lebanon and china. president -- told

troops to prepare for a long .truggle with the maoists he said he will continue to pursue a separate peace fire with rebels. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 160 countries. this is bloomberg. >> thank you so much. and a question for the u.s. market on monday is momentum. the dow closed above 20,000 on friday helped by a strong jobs report. we have a look ahead. let's dig deeper. picture. a mixed

there is still slot in the labor market. -- slack in the labor market. that impact the dollar. forll see we will set up the sixth drop for the dollar. it is inflicting pain on the dollar bulls. president has said he wants to see the dollar weekend. >>'s than the continued wall pack of financial regulations. >> talk of rolling back dodd-frank, there have been big talks of this.

on the far right hand, you can see, it looks like they're going to well back. dodd-frank was a response to the financial crisis, it was put in place to sort of balance excesses in the market. the banks are running away with the positives will have for their industry and profits. we have consumer sentiment, it was one of the big report, economists say is that it is weaken.o begin to -- you also in the peak of earnings season. ontwitter will be out thursday. they have a lot to prove and a lot at stake since slowing

growth has been the story. starte have is that the -- stock has had little change. they would have the weakest year-over-year growth since it went public. disney bracing for a potential weak fiscal first-quarter. cable advertisements are expected to be weak. even though there was the rogues of "star wars: one," it is expected to be weak compared with last year. finally, bp. from third quarter a year ago. i'll price optimism could outweigh the fact that short-term the company has some

downstream weakness. >> thank you. it's look at earnings. some of japan's biggest automakers in the headlines. let's get to our asia auto editor joining us from tokyo. what is going on with honda's third quarter results? >> honda reported on friday earnings that met expectations. they raise the operating profit by 21%, setting the weaker yen and cost reductions. weekend -- weakened 7% since donald trump took office. reports of a type of toyota and suzuki. could this be in the cards? >> suzuki and toyota have been

in talks about cooperation. this happened after suzuki dissolved its partnership with volkswagen. suzuki is a relatively small carmaker, so tying up with toyota would give them more skill, and toyota, suzuki's presence is good. >> thank you. up next, u.s. defense secretary accuses china of shredding its neighbors dressed. this is bloomberg. ♪

asia." is "daybreak >> president trump's top man at -- will ben says

visiting asia. really his mission was to, the jitters in the region. was he successful? to confirm their alliances and south korea and japan and assuage fears that the united states will take less of an interest in protecting the so-called u.s. security blanket over those nations. reaffirm thedid commitment to the alliance. in tokyo he said they needed to strengthen the alliance further and that japan has been a marvel . one of donald trump's complaints of been that seoul and tokyo have not kept up their part of the bill. you have rex tillerson taking a

more hawkish tone. he would take more military action to prevent china in the jameschina sea, where is mattis is more of a diplomat saying that diplomacy must avail. here is what he had to say. he have to do is exhaust all to dramatic efforts to resolve this properly. our military students should reinforce our diplomats. he added, at this time we do not see any need for dramatic military moves at all. he did say that china's actions in the south china sea are a regional threat. >> china's response, what has happened so far to his trip? bringing up old rhetoric, calling the japan-u.s. alliance result of the cold war. abe inet with shinzo tokyo, and abe will meet with

trump and washington, d.c.. tokyo sayingn in regards the u.s. to take a responsible attitude, stop --ing wrong, some 70 of the .overeignty of the islands james mattis accused china of shredding the trust of its neighbors. >> china may be stepping up economic retaliation over the u.s. missile shield. correspondent has been looking into this growing attention. give us the details. finance korea's minister says he fears china

could be using unfair in direct measures to target imports south korea. punishment fors the u.s.ng ahead with defense this year, something they say is protecting south korea from north korean missiles which china sees as a threat to them. south korea says china has been pressuring are anything upm cosmetics, a large take rejected,cosmetics electric vehicles powered by south korean batteries, and reduction in a number of flights between beijing and soul and forests traveling over. -- tourists traveling over. famoussouth koreas most

sopranos has been canceled. >> is also the case that china is exploding the political crisis in south korea? china may well be doing that given the political turmoil in south korea, the relative folder ability as they look to greater exports abroad and domestic consumption drives up in light of the political crisis. china experts are telling us that china may be setting on the opposition winning power later this year in sending a message there will be economic pain if you continue with the u.s. missile shield. , it seemsment tensions will persist particularly in light of the u.s. secretary of defense visiting the region over the weekend. his reiteration of his determination to go ahead with the shield at some point this

year. >> thank you. just ahead, president trump ramps of his deregulation agenda. we hear from a man spearheading the push against dodd-frank. this is bloomberg. ♪

asia." is "daybreak >> time for a quick look at what

is coming up. a lot of risk on today. six banks in this part of the world coming out with their decisions on the course of the next four trading days. the reserve bank of india, australia and new zealand and sri lanka amongst those. is the reflation trade back on. we have someone from deutsche bank talking about his long calls. long u.s. dollars. japanese banks also having an effect with what happens with donald trump. regulation or deregulation as we get more flesh on the bones of reform in the pipeline. commodities.at we have a guest from wealth management joining us.

he is asking the question, is the long dollar position the right call? he has serious doubts about the upside for the u.s. currency. as a taste of what is coming up in the next two hours. a deregulation is emerging as key focus of president trump's agenda. administration focuses on the dodd-frank law. we were told the administration can get a lot done with or without the support of congress. >> we can do quite a bit of what we need to do. we are to work with congress. withet this morning committee members to talk about what we can do with the house. it wants to be very active and helpful with us. are going to engage the house, we're going to engage the senate. they're equally interested in

performing some of the regulatory processes, as well. we can do quite a bit without them, but the more help we get from congress, the better off we will all be in making the job creation vehicle more effective. not just and financial services, we are talking about regulation in every different industry group. when the auto manufacturers were in here, they were talking about the epa, when the manufacturers were in here they were talking much different regulatory groups. we are going to need help from the senate and we're going to get some help from the white house. >> there is a wide panoply of regulations. let's be specific. you know dodd-frank as well as anybody in the country given your experience at goldman sachs. as you look at dodd-frank, what are the specific areas you think need to be changed? >> let's look at the big issue. overarching issue that we want to fix is we want to get the

banks working again. in the banks to be back lending business. we think dodd-frank has stopped banks from lending to small and medium-sized businesses and stopped them from lending to entrepreneurs. we know the big job creators in this country are entrepreneurs and small and medium-sized businesses. banks have been forced to court capital. it not been allowed to lend money. we need to get them back into the lending business. when he to get capital flowing back into small and medium-sized businesses. >> does that suggest that changing and repealing the role is not that important to you, because it is hard to draw a line between the boko role and lending to small businesses? >> a big needs to hold capital, it prohibits them from lending.

-- dodd-frank. the united states has a huge competitor advantage of having deep, liquid am a orderly and transparent markets. we want to preserve that advantage. we're going to be look at the vocal role, as well. we're going to free up regulatory cost. all the banks have been written by regulatory costs. that was the director of the economic council. our sports's put hats. super bowl 51 is underway in houston. falcons facing the new england patriots. the falcons are currently up. many companies are paying about

$5 million for 32nd spots. president trump is backing the patriots, no surprise given that he is friends with the owner. this is been the europe and about -- in the year of the underdog. it sounds like you are putting your money on the falcons. >> i put no money on any of this. >> speaking of the prices, we were talking about the food and beer, is quite shocking. ♪

♪ 9:00 a.m. in singapore, midday in sydney, 8:00 sunday evening in new york sydney. i am rishaad salamat in hong kong. this is "bloomberg markets: asia" ♪ , asian: talking banks lenders lead markets higher on the u.s. push to rollback regulation. promising hundreds of millions in savings. a year of negative rates,