>> boeing is that it be near a $14 billion deal with singapore airlines. >> we are watching softbank shares. how the shock and to india's easing cycle is going back to ruby. many sick unoccupied. this is the second hour of "bloomberg daybreak: asia." in hongi'm yvonne man

kong. in newi am betty liu york. we had breaking news on anthem and their bid for cigna. it is being blocked by a judge as anti-competitive. for sigma blocked by a judge as anti-competitive. next, they will be fighting over the $1.85 billion breakup fee. remainses decision sealed for now. we do not know the reasons why it was ruled anti-competitive it is really a costly ruling for anthem. yvonne: it could be a bitter battle. let's talk about the senate beginning the confirmation vote of jeff sessions as attorney general.

it was always the democrats trying to stop the nomination, aw it is the gop taking after after the speech they tried to bar her from giving. then it went viral. we will continue to watch what goes on there on the senate floor. betty: the hearings have been surprisingly interesting to watch. they are normally not this exciting. nothing has been normal from the start of his administration. it has been contentious all around. episode leanede the whole discussion. stalling for 46 hours on the senate floor. that is a lot of time. on wall street we are still waiting for a lot of rhetoric and reality to come through here. let's get some clues on what to look out for. toid: so far it is shaped up be a relatively boring week. that is the best way to describe

equity markets. look at the floor behind me. the story when you look at japan, the yen is just that below 112. lower for longer is boosting stocks. informationhat, coming up from the philippines later. info from japan beating expectations at 6.7%. let's have a look at the board at the real market story this week. the rally in the bond markets. yields are basically down. look at what happened in europe overnight. yields are down across the curve. spanish down 12. down down 12 -- spanish 7.5. very strong options out of portugal and germany. look at what is happening out of germany.

very quickly have a look at copper. that will be in focus today. potential supply disruptions. one in chilea and one in indonesia. two of the world's biggest mines . put everything together, that is 10% of global surprised -- supply. a lot of people are talking about if it does prolong from here, the market will have to adjust to it at some point. i look at gold at 12.42 announced. -- an ounce. i talked about the kiwi dollar. the story is when you look at the euro is back low 107. it fell below 10650 at one point. is saying hold on, let's not get ahead of ourselves.

marian manages to enter the second round, she has a 14% chance that she may get the balance. very interesting session so far. it is the bond and currency markets you want to watch very closely today. betty: indeed, we will. david ingles with the markets. trumpst up, president to limitauthority immigration said it cannot be to limit immigration said it cannot be challenged in the court. trump argued he can stop the entry of any class of foreigners. a panel of judges will decide this week whether to reinstate the temporary ban. it was given to seven predominantly muslim nations. the appeal might eventually reach the supreme court. iran hasis reporting launched another missile.

the missile was launched from the same place that the milosevic -- ballistic missiles were lost from last night. at --ive: said iran was would respond to growing hostility at this week's anniversary of 1979 islamic revolution. down 7%n takata are after reports that the airbag maker will face the loss of $1 billion this year. the company has to settle with the u.s. department of justice on the mass airbag recall. takata they have an after tax profit forecast of $179 million after this year. it is now being revised to a loss. and intense competition in australia's telecom markets. operating costs

-- 4050and $56 million $6 million the company said strong cost management mitigated higher costs. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. bowling is it to be the front winner as singapore airlines closes in on an order for 35 wide-body jets. the carrier looking to take on rivals in china and the middle east. let's get to a correspondent. big order. what do we know? we are looking at an order worth $14 billion. at differenting models. one is long-range aircraft that

boeing will debut at the end of the year. 77 10, a is a dreamliner model. the most expensive dreamliner yet. it will cost more than $300 million. that is about fleet renewal. it is a way to boost its appeal. possibly, a way to pull travelers away from emirates, qatar airways. similarybe hoping for test similar response here. the order may be made official this week. will have to keep an eye out for that. yvonne: it could be some welcome news after we did talk to this week about earnings that were falling 30%. talk about bowling now. how critical is this order. boeing has said it

will cut output of its current model. if and when seeing air sealed the deal, it should give boeing the boost it needs. the aircraft manufacturing space is getting increasingly competitive. even the chinese are starting to get into the market. they will debut a new chinese made jet later this year. it was scheduled to take to the skies back in 2015 but was pushed back again and again. as you can imagine, boeing and airbus are set to they best face more competition as more manufacturers get into the game. yvonne: thank you. that report from singapore. shares are rallying 1.5% in tokyo. the japanese company posted a third-quarter profit of 814

million dollars. they are focused on japan's business right now. doing as they are not badly as it has been doing in the past. take a look at the numbers for softbank postings. they said third-quarter profits 814 million dollars. it was a miss at that front. it was falling 3.2%. expectations were set at $2.6 billion. they do not give a four year forecast. it has been a problem for some bank ever since they reported 80% of sprint. they did add more wireless customers and revenue over the last few quarters, more than expected. cost-cutting has helped narrow losses. also hoping the donald

trump administration will help. era that is more welcoming to mergers than the obama in his ration was. illustration was. doty: there was a day to about their jobs trump was going to create and the money was going to put into the country. we have more details on this? this is part of the vision fun. it is a $100 million fund that will be launched this year. he said the plans and preparations are on track. when he met with trump in december, he said half of that would be invested in the usa. yesterday, he started the give

details as to how that might happen. >> i need a $50 billion and 50,000 jobs minute when i met mr. trump. first, we will set up a new satellite communication venture in florida hiring three dozen people. who also created 5000 positions in sprint in the u.s.. we will have cuts overseas so we will not see any extra cost. this is just a start of seeing the 50,000 jobs i promised mr. trump. rosalind: this is a plan that other technology heavyweights are interested in becoming a part of. are 19 by, or holds, and zero cells. betty: pretty positive. rosalind chin in hong kong. an apartment building boom. we will get a report from melbourne later in the show. yvonne: plus, dollar confusion. what should investors do with the greenback? this is bloomberg.

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yvonne: this is "bloomberg daybreak: asia." betty: a quick check of the headlines. bloomberg has been told that wells fargo may withhold bonuses for top executives. this stocks were slammed by last year's fate accounts scandal. wife is going to make a decision this month. wells fargo was fine when a j $5 185lion without -- was fined million dollars for opening accounts without permission. said toa beer maker is be working with the advisor. it is worth one point $2 billion based on the current price in hong kong. it would not be the first all

right into china for carlsberg which owns 60% of a rival brewer. anti-money laundering investigation. in a filing, the company has said is been asked her information. it is unable to predict the outcome of that investigation. $54 billion in transactions. about half of that overseas. thinks mostst dollar weakness is in the future. this is the head of ficc investment strategy at standard chartered bank. what you say this? are these gains over? >> we think not yet. when the dollar has started to pull back quite a bit since the trump administration took charge.

for us, it is going back to a simple balance of where we see interest rate potential's after current inflation. inhope the view that yields the u.s. are likely to continue trending higher. there is concern that the broad direction that the dollar has already pullback quite a bit. the dollar has some wind in its sales left. it may be more vulnerable in the short-term. betty: does that mean you put your money in the u.s.? >> absolutely. the thing about currency trade and views is not doing on fx trade, a lot of the preferred asset clauses are in the u.s.. the u.s. is one of the most preferred equity markets. certainly in the bond market, the high-yield market is a place to be. altogether, we think it comes

together quite well to make the case for dollar denominated assets. betty: take a look at the treasury markets. i want you to comment on this chart that we have that looks at futures contracts for the 10 year. .ou can see the white line a significant drop here. lots of short betting on treasuries here. a significant drop it just keeps going lower into negative territory. what does that tell you? is that worrying to you? >> in the short-term it is. we have been keeping a close eye on that chart. that is why we think possible yields in the u.s. could move lower before they start to trend higher. having said that, that is something we would like to happen. it gives investors who want to lesser bonds an opportunity to do so. however, there are offsetting factors we need to keep in mind.

goodthe position data is a predictor what it is that extremes. once it is often extremes, it is less useful. second, there are a number of factors supporting yields are it we have not seen yields respect because growth inflation data is putting pressure on yields. we do not think it is a clear-cut case. that's why we think our strategy is we should position for yields to trend higher. lower, that is fantastic, but let's not count on it. yvonne: does that necessarily mean the yen strength is over? the technical indicators show that it is unlikely. you may not be able to see it, but there is a lot of resistance that is hitting the 100 day moving average you see in yellow. 111 or 112 right now. is anything shinzo abe can do? technical on the

perspective you can look at it both ways. we take the view that potentially as we reach the theng average, the yen and euro may be closer to interesting levels for a turnaround. , we think it is more attractive because there are number of other things happening on the yen. the yen's biggest challenge is on the central bank side and keeping a cap on yields. that is one important part of the picture about avoiding the young -- yen running away. it is also about putting -- keeping purchases in place. we think that is the real challenge to focus on. part of it could be about focusing on the fiscal side. reading the notes from your colleague. he mentioned the european

political uncertainty that has not been tightened when it comes to the bond as well as the currency markets. if you look at 10 year treasuries, we are seeing the longest winning streak since brexit. pairs do you think are actually the most vulnerable to that we see in europe right now? >> we take a different perspective. clientk from a private perspective that is one of the reasons why having some source of protection against the kind of uncertainty, particularly european political uncertainty is very important. still withpproach is overweight equities, high-quality bonds are the first listed go. -- place to go. we think from a currency market perspective, the u.s. dollar is still the best place to be in

terms of a currency market perspective. the yen has a traditional risk factor, but there are many other factors at work here. finally, a little bit of allocation tornier traditional risk and assets. we think these are all important asset. keep on the well diversified allocation. there is a lot of uncertainty in europe. that noise is going to create volatility in markets, regardless if the outcome is as bad as some people fear. yvonne: thank you. stripsof ficc investment strategy. toty: the senate is going confirm jeff sessions as attorney general. and if the senate passed votes confirm sessions as a new attorney general under president donald trump. , this is been a

contentions string of confirmation hearings. jeff sessions is probably the most contentious second two that's enough at the end -- to educations as the end -- as the education secretary. .io tinto shares we will have details from sydney in a moment. this is bloomberg. ♪

betty: it is official now. the senate has now confirmed that jeff sessions as the new attorney general in the new administration. this is been ongoing here. it looks like finally this conversation -- confirmation has gone through. downs of rio tinto are

of% after the minor announce a bigger than expected dividend and a surprise share buyback. big things are expected from rio tinto. did they deliver? of results from rio tinto. 5.1 billion is the headline number. that is the first game since 2013. the dividend came in higher than expected at $1.70 per share. then the bike rack program got announced. -- buyback program got announced. what hee net here is had to say. >> opposition had no change. is all about build and small line. the threshold is very high. to be the right

one to ensure that we will be able to value our shares. news,pite all that good the stock down two thirds of 1%. season earnings gathering pace today. what other big names are you looking out for? underlying process of 486 million. it misses estimates. financial services company still showing big gains. another financial services cut by 584 missed estimates million. but it was up .04%. at agl, up 3.7% to address at 89 million for the half. sears also performing pretty well. one and a quarter percent right now. yvonne: thank you. coming up next, intel's talented

job creation plans in the u.s.. after meeting with president trump. more on that coming up. this is bloomberg. ♪

yvonne: 8:30 a.m. in singapore. we are happen hour away from the open of trading there. i am yvonne man in hong kong. betty: i am betty liu in new york. you are watching "bloomberg daybreak: asia." >> theresa may comes closer to triggering brexit. parliament gave approval to begin the process. lawmakers were promised a vote on the final bill. the draft law now goes to the house of lords with with a final

vote expected on march 7. china's war on debt is extended to the short-term paper markets. the smaller lenders have used to shore growth. certificatetiable deposits down 33% from december. that is raising concerns that weaker lenders could face crash crunches and even missed payments. the pboc tightening is making things very painful for small banks. cap rates at abt record low saying that is where they are likely to stay for a prolonged. . the international outlook remains uncertain. new zealand's economy is growing at an annual pace of more than 3%. >> headline inflation has returned to the target band. it is expected to return to the midpoint of the target best to

the midpoint of the band gradually. longer-term inflation expectations remain well anchored at around 2%. monetary policy will remain accommodative for a considerable. -- considerable period. remain, uncertainties particularly with respect to the international outlook. policy may need to adjust accordingly. >> global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. time to see how the asian markets are shaping up so far this morning. here is david ingles with more. david: thanks betty. let's get started with a drop we are seeing across the kiwi dollar. we just heard what they did as far as policy is concerned. he was not speaking to parliament. got as that the market

bit ahead of itself when it comes to pricing where rates would be. he thinks chances are rates will likely stay low. that is driving the kiwi lower as you can see behind. let the boards and look at how this is playing out across equity markets. not a lot as far as the overall benchmark. we are down with the exception of the rc in new zealand. mix with over a 1% pop yesterday. we were talking about potential supply disruptions. you have big mines in indonesia and chilly. you have over potential disruptions there for different reasons. said, to 66 or 267 academically. 106.50 overnight.

we are seeing pressure over the political outlook over there in europe. very quickly, have a look at bonds. and the other things we're following here as well. this story in the bond markets is the rally we will continue to see for the fourth straight day. aussie tenure is back. that is what the german bund did yesterday. 10 points on the japanese 10 year bond. in terms of stocks you are tracking, i know it is thursday. so our viewers are getting thirsty. you talk about the beer maker. talk about the story with carlsberg. would say that, wouldn't you. we are talking carlsberg here. -- tsiway, think how

ngtao is a good here, but it is basically water in my opinion. 20%sberg is that the way a tsingtao stake here in brewery. japan displayed very does impressive earnings, doubling with the markets expected. hitachi getting hit here. it has to do with the deal mitsubishi heavy and singtel. that will open up in 30 minutes time. yvonne: thank you. spend $7s it will billion to finish construction on a semi conductor factory in arizona. it is just the latest in a series of companies to talk up u.s. investment in jobs in a meeting with president trump. ramy inocencio has the details for us.

the intel ceo visited donald trump at the white house today. what would be a $7 billion investment on a new -- itnductor factory turns out it is not as new as he said. it will bring in $10,000 in terms of job growth for the state of arizona. 3000 of them would be high wages and high skill. 7000 in terms of indirect investment. this is in support of mr. for taxation and deregulation. take a listen. >> thank you mr. president. it is an honor to be here today representing intel and to be able to announce our $7 billion investment in our newest most advanced factory in chandler, arizona. we will be completing that factory to make the most in -- advanced semiconductor

chips in the planet. ramy: he also said the company has been disadvantaged in many parts of the world. he also said south korea and taiwan among some of them. bloomberg interview with an intel member earlier today. $7 billiond if the investment was new or not. >> this was already included in our capital forecast for this year. day is tomorrow. we will be talking about capital intensity and things like that there. this is included for this year. so it is already planned is basically what they were saying in 2017 budget. it was already started in 2011. in 2012t barack obama visited it also counting the strength of u.s. manufacturing. looking at the share price, it a.m. p around 11:20 but it was very short-lived and

close just above the flat line. betty: just a few moments ago we had just sessions confirmed as attorney general. related to all this is trump's immigration executive order. what is the latest on this? ramy: it will not be today. three days so far ever since the startedrcuit court taking this up. the spokesperson today said do not expect anything right now. there are three persons on that panel. it might come out sometime this week. the current -- the court earlier said that it would. donald trump weighed in on it. he spoke to a conference and said he is allowed by u.s. statute to suspend the entry of all aliens. he's that even a high school student would understand that. he also took to twitter and said the u.s. will not enjoy security

and safety if the court does not lift the suspension. this is also donald trump we are talking about. betty: absolutely. breaking the rules there. indiabout all things in question mark the reserve bank of india surprising global markets when it did not fit cut its key lending rates. the if the economy does not -- does not bounce back, then what happens? are talking about how it seemed like it was all they best a rate cut. >> it sure did. but he has been talking about this since he took over as the head of the reserve of of andrea. -- reserve bank of india. but yesterday it seemed like he did not have any doubt about it. it held a key rate at 2.65%, a

two-year low. then the engine cycle may be over. here's what they said. the committee decided to change the stance from accommodative to neutral law keeping the policy rate on hold to assess the transitory effect of demonetization on inflation. they think a decline in inflation they pass. as for the markets, the economist overseeing south asia said it was a surprise when they do not cut the rate, but the shock was when they made the change in the statement. look at how it shock bond investors. people holding the india 10 year bond, that yield surging the 2013.n a single day since over 30 basis points. big move in the bonds. you were really taken by surprise. we do expect them to be on inflation hawk here. one of the government decide not to cut?

didn't the falling inflation point pave the way for this? >> that is what everyone was saying. with good reason, pass budget cuts that seem to open the doors and make the r.b.i. make the move. let's look at a chart now. linean see the turquoise headline inflation is down to a very comfortable 3.4%. but, if you look at the quarter rate, it is much higher at 4.6%. he said at the press conference noncredit cpi is sticky and not coming down. that is also r.b.i. predicting a sharp economic recovery back up to 7.4% from 6.9%. economists say, how do you know you can bounce back that weekly? -- that quickly? he said that bank deposits have surged after the demonetization and getting be built in circulation. he says there is for commercial lenders to lower their rate it

has been a rocky road for indian investors the air so dependent on foreign investors, some that thegure tumultuous reign and lack of transparency have to be watched especially in the run-up of five state elections of the party has to go through. we will see if any of this is reflected there. really important now for the markets. yvonne: thank you. up next, the house wins. a campaign in -- cambodian casino maker story. this is bloomberg. ♪

betty: this is "bloomberg daybreak: asia." in hongi am yvonne man kong.

the $458 billion day to buy sigma has been blocked by a judge as anti-competitor. aetna was blocked earlier. combined they would have produced the ranks of the american health insurance there's from three to five. betty: forces have told us that saudi arabia will find is considering a state in six flags. the public investment fund is in talks with the deal with no investment reached. six flags was already in discussions about opening its first attraction is not the radio or the owner of the world's biggest container shipping line has repeated its concern about u.s. trade war with china. emerge ceo said a conflict with have a negative effect on its business. afters fell after a loss

expecting a profit. it is expected to grow to-4% this year. now the earnings from the largest operator in cambodia. the earnings rose 4% compared to a 3% decline that we saw. visitors from china increased 20% last year boosting the numbers. the chairman joins us now on the hong kong set. great to have you. one of the most consistently profitable casino says been top away in asia. would describe orp. casino, nagac >> we are quite lead. it is a very competitive environment. when i look at those numbers and going past -- back the past 6-7

years we have seen consistent double-digit growth this is very positive news as well. as i indicated, it is very competitive operated environment. we are very optimistic in 2017. before the end of the year, we one,be opening the second which will literally double our capacity adding another 1000 hotel rooms. yvonne: what is the timeline? >> by year and we hope to have it open in the late summer or fall. certainly before the end of 2017. yvonne: even though we did see gaming revenue decline, we did see the return of the gaming business. whether you doing to giving those-- in keeping investors from going to macau? >> we have done a number of things over the recent years.

we have upgraded all the vip facilities. we built a new aircraft hangar that recently opened. as the yen depreciation hampered the spending? steady, we see a very the ip jump in business out of malaysia. malaysia continues to dominate in terms of revenue contribution. there is certainly choices whether you're talking about vietnam, philippines, or cambodia. we have taken many of the steps to make us extremely competitive. i see continued growth in earnings from northern asia and asia. you mentioned double-digit growth. it seems like it is consistent that you have maintained a 20% growth nearly every year.

2016 installed a little bit with 7% net growth. what was the biggest contributor of that? will it be in the single hydrogen this year? >> when you look at gaming across the region, we did really good in that atmosphere. there are still some broader economic uncertainty across the region. those numbers are not disappointing in our judgment. when i look forward with the addition of that 1000 rooms in the amphitheater and 50 new areaurants, all of these very much in keeping with what is going on in terms of our own strategy. 5is year, cambodia exceeded million in visitation tourism. tourism will be a key factor. by 2020, 7 million. a 17% increase this year from

chinese visitation. certainly they are adding significantly to our headcount. our hotel and restaurants are filled with chinese visitors. at the end of the day, this is going to accommodate this growth in tourism from china. i would like to briefly share, two years ago we started an initiative with chinese international travel service, osaka airlines. those aircraft at 90% load three times a week. we are going to continue to add to those cities. our strategy is to promote overall tourism wrote in cambodia. growth in cambodia. the best days are ahead for cambodia. we have a very youthful population. it is a very young median age population. in terms ofgs

services and hotel requirements are very much in need we are commenting this increase in growth. betty: that brings up the point, how long do you think he will have it all to yourself before other people start going there? >> we have always enjoyed competition. i can tell you, we have also benefited by having a monopoly kilometerthin a 200 radius. similarly, we have no restrictions on the number of tables or gaming machines that we can operate. our license is a very strong license. certainly if the likes of a wynn or mgm wanted to look to an opportunity in cambodia, we always welcome conversation. new gamingll have a law likely sometime in 2017.

it will provide a structure that we have encouraged and advocated from some time. nothe same token, there is legal issues or otherwise the government has confirmed and our monopoly license through 2035. we are licensed through 2065. we are upbeat and positive about the prospect. is a veryasia separate and distinct market from china. we're talking about hundred 40 million people -- 240 million people. leisured funds for entertainment. new airlines coming into cambodia from next year. that combined with -- we are very upbeat. we can feel your passion for that. thank you so much. much more ahead on "bloomberg daybreak: asia." ♪

yvonne: this is "bloomberg daybreak: asia." betty: ostrow housing industry association has reported slower new-home sales growth with just a 2% rise in december after a 1.6% boost in november. sydni n.l. court continued to be big drivers of growth where there's a frenzy of high-rise development. she spent a lot of time

looking at apartments in melbourne. she is a researcher for australia. a report exploring whether anyone is actually living in these new buildings. buying into are that. the only way to maintain in apartment is to keep it as new as possible. if the yields are at record lows around 2.8% or 3%, then the getting gettingtors are is not worth it. it is not worth maintaining the value of the property. >> these speculative it vacancy report gauges whether they are homes or land thanks. the last report found a 2000 properties in the lord, about 5% of is that cities total housing, use the equivalent of a dripping cap.

yet the apartment buildings just keep appearing on melbourne's skyline. last year there were more cranes then in new york, boston, chicago, san francisco, and los angeles combined. australia's urban development institute projects -- rejects attacks, saying they need new homes every year. corporation completed more than 2000 apartments in the city last year. another 2700 plan for site right across the street. the buyers are not just land banking he says. >> we contacted the supplier prior to the interview just to confirm with them. they said they were 98 of -- 90% of the apartments were being billed as occupied. as of this experience, it is definitely occupied. >> but just like the mining boom, some economists say the

construction boom is now winding down. >> we are forecasting apartment price decline in brisbane and melbourne. fact thatreflect the there is oversupply and those markets. >> paul allen, bloomberg melbourne. betty: the housing crisis for us is not that far of a distant memory here in the u.s. noble andwas just and i saw plenty of cranes like that video showed. we will see how the markets are playing in the asia session. we will look more into the bipolar world. this is bloomberg. ♪ >> are crosses boundaries and kenexa's with the world and a lot of exciting ways. a lot of things are driven by love or hate.

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