♪ >> trump vows to take his travel ban fight to the supreme court after judges u.s. doors open to immigrants and refugees. the presidents of the security of the nation is at stake. we will have all the reaction from washington, san francisco and in the markets. also, shinzo abe prepares to meet the president, trying to sell the benefits of their alliance to longtime skeptics. twitter shares tumble after revenue fall short. ofs is the second hour daybreak asia.

it is just past 8:00 a.m. in hong kong and just after 7:00 p.m. in new york. >> what an hour we just had. the ruling that came out from the appeals court essentially --olding this ban on this upholding essentially the decision not to enforce this travel ban that was issued by the white house. of course we saw donald trump on his twitter saying he is going to take this all the way up to the supreme court. >> we were waiting for it. it just took mere minutes after the decision. quite a setback here for the trump administration looks like this will be a lengthy legal battle. looking a horse -- looking ahead meeting.ump, abe

dollar-yen dominating the market. hope is that president trump is in a good mood when he eat -- when he meets. you -- news because folks will understand it. i'm wondering if it will be as lengthy as we thought. dollar-yen, 113.50. gold is cheaper as well. $17 lower compared to this time yesterday. not much of a reaction when you look at currency markets overall. dollar index still holding onto those gains. the u.s. 10 year yield, about 2.4%. where only speaking on paper. if you try to extrapolate all

the news, you are starting to see the trump government hit. that could be dollar negative and we could see yields come down. that is on paper. we have yet to see that on markets. we're looking at gains across the region. japan obviously leading the gains. 1.6% out of the gate. 19,200, a session high. south korea, new zealand. think trade will be in focus. do we see a rebound? very quickly let me check in on chair -- shares on toshiba. a lot of news coming out when it comes to how much a breakdown will be. -- a write-down will be. as far as the chip business is concerned. all yours. >> some of the early movers.

the latest on the federal deals -- the bid ton of reinstate the president's travel ban. shortly after the ruling trump tweeted out, see you in court. the security of our nation is at stake. is our reporters. basis byg details which the appeals court decided to reject reinstating the travel ban. what were the reasons? >> the foundation of the department of justice argument has been this is an executive order issued by the president. you do not have standing to review that. they wholeheartedly disagree, litany of litigation in which there has been judicial review of executive orders and ruled three-nothing in the favor of washington. >> the fact it was unanimous

speaks volumes. as we look ahead to this decision going to the supreme court, who will be deciding over it? >> first it seems it will go to district court come where the original temporary restraining order was issued. but there is a deadline of midnight tonight for the state of washington to apply for a preliminary injunction that would be the next step in permanently banning the executive order. it is another temporary step. there are a number of deadlines over the next week or so before there will be a hearing in the seattle district. >> greg, we have seen donald trump tweet out, see you in court, but we are getting headlines from the white house saying they are still reviewing this ruling and the justice department as well. his trump just jumping the gun? >> he did not say which court.

there is something that will be going on at the district court level as well, a longer-term order or in argument for a longer-term order blocking this ban. , there is anime excellent chance the administration will go to the supreme court and try to get the supreme court to do what the ninth circuit would not do, which is reinstate the ban while litigation goes forward. so, if that is the case, at what point -- is there any timeframe by which the administration has before they run out of time to appeal? >> at the supreme court there is still a deadline, said -- except they want to put the deadline -- the ban back in place. there is this other litigation going forward in district court. at least as a formal matter, what is happening at district court could supersede what the

supreme court does because what is happening now is what is called a temporary restraining order. it is designed to be very fast, just a couple weeks. at the happening district court is a preliminary injunction designed to last much longer. generally when courts do these things, the temporary restraining order is supposed to die of its own weight once the own preliminary injunction gets issued. it is a lie the -- it is a lot of legal procedure but you're going to have fights going on at local let -- at multiple levels. keep an eye on a lot of different things. you guys are certainly going to be busy. is reality sort of sinking in for the trump administration? that they are starting to learn the limits of -- learn the limits of the president's powers? >> is a good question. it doesn't some of the president had taken any lessons from this.

he believes it is legal and constitutional. it is certainly possible the supreme court will disagree. that thelying argument president has brought power over who gets to come into the country and the ability to say there is a national security interest, there is not a lot of debate about that. it is more about the implementation and particularities of this order. one of the keys to this appeals court decision tonight was they were saying in the shifting interpretations of this executive order -- at one point originally it seemed like it covered green cardholders and that was what -- other reasons they did not have a lot of confidence about how it would be applied. if the administration went back and re-issued an executive order with a little more thought, they would probably stand a much better chance in court. given --ndering, just

ok, this is the washington attorney general speaking about the case. let's listen in. >> attorneys professional staff around our office. in different offices around the state all working in different ways to assist us with these filings which have been done against intense time constraints, as you might imagine. i want to emphasize this has been a team effort from his law firm. i could not be more proud of the teamwork that has been involved. with that i'm going to turn to he will summarize essentially what the ninth circuit court of appeals did here today. then we will have a few words from colleen. >> thank you. what we argue to the court yesterday was it is the role of the court to say what the law is

and to serve as a check on the executive branch, and that is what the court has done and this will reason, careful, thoughtful opinion. be considered all the arguments and rejected them. it is important to recognize the real impact this is already having on people's lives. we're hearing from people all over the country about what a difference this is made and we are thrilled for that. i want to thank attorney general ferguson for having the braver is -- for having the bravery to bring is the case in the first place in offering for us to do all this. i think the governor and the peak of the state for all their support in bringing this case. most especially want to thank the people across the office. people in my office like japan, kelly would -- like ann, kelly, i' going to forget people -- was the attorney

general. for winning this case in the ninth circuit court of appeals. are you still there? >> iamb. >> -- i am. >> so clearly a victory for washington state in this case. i know you are no travel expert but what happens now? now going tolly happen travel-wise in this country? remains totion that be seen is exactly how the executive order will be enforced , if at all. it likely should not be. , peopleith green cards with visas to enter the united states, students, people on h1- b's, refugees, people who thought they could not enter the united states should be able to pursue some amount of entry.

how this will be enforced at the border is a question. there are attorneys at airports all over the united states who , makingl spending time sure that if there are people arriving who they believe could be targeted by the executive order, to ensure that they do get to at least go through the immigration process. >> all right, thank you so much. our court reporter in san francisco. us.k you for joining let's get to the first word news with courtney collins. >> first up, the white house plans to tone down its tough president trump meet with the japanese prime minister friday. shinzo abe landed in the u.s. just over one hour ago. he is looking to reinforce a decades-old alliance that has been rattled by trump. but currency manipulation against japan will not be a priority come with the main focus set to be the auto industry.

economists surveyed by bloomberg are expecting to see if you percent rise in china's january exports. that is up from a 6.2% decline in december. last year's plummeting export growth and this years lunar new year holiday could play havoc on the data, which is due out later friday. twitter shares tumbled after quarterly revenue and profit missed analysts estimates. a close 12%, the most in almost four months. it is having trouble luring advertisers and users to the platform. it added only 2 million monthly active users in the fourth quarter. reinn says it will seek to in card rebates in the u.s. after posting a third consecutive drop in operating profits. they spend the most among japanese automakers on u.s. discounts. outlookained its profit while competitors have raised their earnings forecasts. what reason for the rise in

u.s. discounting is resell more cars and trucks compared with the average. the ratio is now reversing and we will focus on releasing more profitable trucks. the rise is just temporary and our north american operation will remain the same. >> global news 24 hour was a day powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. >> still ahead, the philippines leads its benchmark rate unchanged even as inflation pressures rise. we will hear more from the deputy governor later on. >> managing uncertainty in the year of the rooster. we talk investment strategies, next. this is bloomberg. ♪

♪ this is daybreak asia. i am betty liu in new york. >> and i am yvonne man in hong

kong. happyooks to be a pretty friday, particularly when it comes to tokyo. up 1.6%. the yen weakening the most in three weeks. that is certainly helping the sentiment in tokyo as mr. abbaye arrives in washington to meet the president for their weekend meeting. we are expected to hear the monetary statements from the rba later on. to talk for a higher givency with the dollar the growth outlook for australia at 3%. a good day from the markets. let's get more from head of asia investment. great to have you. a lot going on. we are not seeing a lot of

reaction when it comes to the travel ban and donald trump losing this battle. i think it was a letter to that the markets have been focusing on. how big of a significance do you see this constructive relationship that trump says he wants to have what china? >> i think this year the factors around -- will be a key theme. could reflecttter the intention of president trump , who has sent out a friendly gesture. -- ease the and tension. but we still need to wait and see. there is a lot of uncertainty surrounding the u.s. china trade relation. manyill do not see substance in regards to the potential change in trade policy. , there is a lot of

talk about all this uncertainty and volatility. some investors say this is not too bad, this could be a buying opportunity. i want to play what howard marks of oaktree said. the more unpredictability there is, the more you should build and caution. on the other hand you have two that unpredictability is not necessarily bad. sometimes things go unpredictably well. 2016 was unpredictably good year. i think it exceeded everyone's expectations in terms of market performance. ,> given all this uncertainty might this actually turned out to be a good year for investors? year the this uncertainty and potential risk rising from trade protectionism will cause market volatility.

we do see strategic opportunity for investors and markets, which are well supported by structural growth opportunities. emerging-market, particularly emerging asia will remain well-positioned to deliver solid growth despite the global uncertainty. the rift of the u.s. china trade war as a national do not see it as a high probability event. -- we do not see it as a high probability event. this is going to be the driver for investment opportunities. ,> if you look further out let's say in europe where we have had several guests this week tell us europe might even be a buy. you do not see that? >> we do not see european equities as compelling at this

level, especially ahead of the eurozone election. see the rather wait to better clarity after the french elections. the geopolitical uncertainties in the eurozone will likely way john -- wage on. we also see a higher potential taber later this -- taper later this year. >> we saw the market move a bit after he learned about the letter trump sent. it is cheap compared as a sean -- to a shanghai composite. it has narrowed a bit. that discount. does it still have a little to catch up on? >> we are positive on china equity outlook.

it is more driven by the positive driver from the improved profit margins prospect. given that ppi in china has means aositive, this recovery. think policy typing is happening in china. -- cting liquidity it doesn't mean that the central bank now shifting to a broad-based monetary. fiscal stimulus is still going to supplant growth in china. >> thank you. of next, the president's enthusiastic use of twitter has not been enough to boost the platform's bottom line. this is bloomberg. ♪

♪ this is daybreak asia. twitter shares dropping the most in nearly four months after revenue growth slowed to just 1% , suggesting efforts to win more pay off.ng is yet to our check reporter joins us now from san francisco. i think what happened half an hour ago is emblematic of what is going on with twitter. trump takes to twitter first to let the country know what he thinks about this ruling by the appeals court, but that is not enough. that is not enough to save the company. what is going on? >> the company has really never been more influential in the global conversation about what is happening, especially propelled by trump. but has not made a dent in user growth or engagement. i think that is because twitter is still a product that is

mostly used by politicians, celebrities, sports figures. is not a product the everyday people feel they have a reason to use. the people -- the company has been trying to change that. they have added live video, streaming nfl games. that has not started moving the needle and it might not. they have done little tweaks but user growth was still just 2 million. >> and there are still a lot of questions about how jack dorsey can actually manage and remain ceo of the company. can it still be up for sale given such a weak earnings report? the eps as well. >> absolutely. eps in the first quarter was very lagging what analysts wanted to see. the prediction was falling way short. that showed they might have trouble reaching their goal of

profitability for this year. >> sarah i will let you get some water and leave it at that. [laughter] a look at some business flash headlines and get you up to date on some of the stories we are looking for and tracking. is forecastingn a 58% surge in profits for this year. the company suffered from a food scandals in the last few years but it sees net income as $76 million in 2017. mcdonald's japan says there is no update in the sales process and it is confidential. over $22 over $22 million for failing to be open and cooperative with british regulators. define was enforced by the u.k. authority. they expect all firms to be open and straightforward and -- in dealings. of were find violation

enforcement -- daybreak ahead on asia. economists predicting chinese exports may have surged in january. we have a preview. this is bloomberg. ♪

♪ morning.ful friday we are half an hour from the open of trading in hong kong. >> gorgeous there. you're watching daybreak asia. we have some breaking news out of australia. 4/10 ofns rising about 1% on the month. that is slower than what economists had estimated. surveyed for a gain of 1%. prior to that it represents a slowdown from the prior month. of course lots of concerns in some parts of australia. now let's get to the first word news with courtney collins. tweeted,ent trump has

quote, see you in court, after bid torejected his reinstate travel bans. it means the u.s. will remain open to refugees and visa holders from seven muslim majority countries. the justice department failed to convince the san francisco appeals court of its national security argument. suggests he will ask the supreme court to step into the case the tests to limit of executive power. the central bank should not be in any rush to raise rates next month. he says continuing uncertainty over trump policies is clouding the economic outlook. the next meet in mid-march with investors saying there is a one in four chance of a rate hike. he says the risk means the low rate regime should remain. >> the regime will not go away naturally and therefore, a relatively low policy rate will

go forward. >> some banks in major chinese cities are said to be raising mortgage rates for first-time buyers. in the latest move to reign in operative prices. sources tell bloomberg that branches have reduced their mortgage discounts. to have told banks to control new loans in the first quarter of the year with particular focus on mortgages. global news 24 hours a day powered by more than 2600 journalists and analysts and more than 120 countries. this is bloomberg. how the asian markets are shaping up so far this morning. let's go to singapore. david, it took one phrase from donald trump, phenomenal tax plan, to sit the reset button for tax markets. >> in a lot of ways. look at the potential in

tangible impact on markets we have to extrapolate with more details them actually have. that said, but we do have -- let me talk you through breaking news. this is a statement of monetary policy. here is the key line, they are 2017 annual gdp forecast by 1%. -- th is not likely to spur we're looking at recent evidence that wage growth is unlikely to ease further. glass is half full, glass is half-empty. have a look at markets behind me. japan is on his best day since the start of the year. , justcally every stock over 200, on the way up. dollar-yen on the way up, lifting the overall tide. it is one of those days where

you take all the corporate news for the most part and set it aside and you see the broad rally up. at the broader markets. treasury fell on thursday. we went from 2.3 coup -- 2.32, up 1 to 2 bips. have a look at the spread between those two. hit 2.6%. no surprise the yield on the japanese 10 year. discussions between shinzo abe and president trump -- i talkede a look at -- about the yen. i want to talk about gold. yes, three month high. $18.irly steep drop, about

when you look at the survey of traders, they are still bullish. seven straight weeks of they are bullish on gold. you look at technicals, the uptrend continues. it is not overbought compared to oil. copper. fairly constructive on the gold price. have a look at the aussie dollar. just to put everything into context. coming he is saying it is hard to justify -- it is hard to argue that the aussie currency is too high when you put this within the framework of growth at 3%. that said, it will be interesting to see how this all plays into how the markets position on this currency. there is an argument to be made that i might be getting too strong. someone fromg from

the rpa governor. back to you. >> thank you. japanese premier shinzo abe has arrived in the u.s. for talks with president trump where he has decided to stress the importance between the ongoing alliance between the nations. let's get more from a reporter traveling with the prime minister. great to have you with you -- great to have you on the phone. i cannot imagine what the president is going through right now after the appeals court denied the reinstatement of the travel ban. makes the task a little harder for the prime minister and what he is trying to accomplish this weekend. >> right. i think prime minister shinzo abe, clearly his first priority is really to talk about the bilateral alliance and defense terms and security terms. had to defense secretary over

in japan just over a week ago. he did say all the right things about how the alliance is still as important as it ever was to the americans. but i think there is a feeling in japan and possibly elsewhere in the world the perhaps the current u.s. government is not speaking with one voice. they want to hear it right from the chop -- right from the top that president trump will stand by alliances. >> what will be considered success? what will be a successful trip for abe? >> i think one of the most for aant things is to personal relationship of trust with president trump. things like a golf game for the weekend will be very important in creating the image that the two countries will work very closely together on this leadership. japan does have its own agenda. obviously president trump rejected the tpp which japan had

been very much behind. mark will be a question over how trade relations develop going forward. has said heump wants bilateral trade negotiations. japan is not necessarily keen on that because that opens up all kinds of vulnerabilities in its own arrangements. it still has a fairly protected agricultural sector and it might not want to open that up to more competition. i think it wants to at least be able to -- japan wants to explain his view that multinational trade can be beneficial for america, too. i think also one of the aims of the trip for prime minister abe will be to allay concerns among the japanese public. there is an incredible amount of concern about what the trump residency means or the economy -- means for the economy. >> and we will see if that is

mission accomplished at the end of the strip. thank you so much -- end of this trip. thank you so much. china's january exports expected to rebound. we will get the official data in just a few hours. our china correspondent joining us now for a preview. tom, how is the export picture shaping up? is for anecast increase of 3.2% in china's exports for january. that would be falling off from december's 6.2%. if that comes to fruition that will be the first time we have seen a growth in exports since march of 2016. there is a few reasons why forecasters are feeling optimistic. one is we have seen a pick up in new export orders. the other is south korea's a stronger exports is something of a bellwether for china. it picked up around 11.2%. stronger,s trading

but on a trade weighted basis it is down. in the fourth quarter of last year against the dollar it was down about 4%. imports are expected to take up 10% for january versus an increase of 3.1% in december. caveats,- a couple of seasonal factors. the chinese new year means some factories were shuttered in january which means they might have had impacts. bear that in mind before we get the data later today. >> there are seasonal affects but we are just speaking to agencies, they are in avoiding exporters in general egos of this fear and risk of protectionism president trump's policy. presumably that will be a key risk for china exporters. , the number center one risk absolutely. goldman sachs has been crunching

numbers to see what possible scenarios might be. they say if washington was to impose tariffs of 10%, that would see a reduction of chinese exports of 25%, which would in turn reduce growth by about 1%. they are saying in order to avert any kind of trade war, they could take certain steps like increasing outbound tourism. to be fair, it has already been doing that. says the most realistic prospects is a washington will on targeted tariffs, turning things i steel, machinery and auto parts. we're going to get data numbers out in the next couple hours. singapore has announced strategies to drive his growth after what it calls a dark shift away from globalization. says free and open markets remain crucial for the nation and the global economy. let's send to singapore.

what is it going to take to secure singapore's economy over the next 10 years? means -- it needs to resist protectionism. moreey take away is it is important for than ever for singapore to remain a free and open market. it is a small and open economy. two thirds of gdp generated by external demand. i want to show you a chart which shows how critical trade is. it depends more on trade than any other asian economy. the rising anti-globalization sentiment we are seeing right now is a major risk for singapore. 3% for theeep above next decade it has to deepen international connections. it needs to seek opportunities and new markets. singapore's main resource is its people. it must also ensure that people in local companies are skilled.

they are skilled to adapt to new realities. changing supply chains, rapid technological advancements. today everyone is talking about innovation disruption. adjust or be left behind. strategies reform how strategy has been doing. any change from previous practices? >> interesting, singapore used to identify key sectors to drive the economy. a.c.t. manufacturing matsuda goals. it is no longer do that. instead it is getting the private sector to take the lead. to drive innovation and capital. the idea to give the private sector to get creative. the government will now play a role of enabler. it will be taking a step back. >> thank you so much. much more ahead. looking at the philippines. holding fire, leaving benchmark

interest rate unchanged yesterday even as there are inflationary pressures. the deputy governor will be joining us. this is bloomberg. ♪

♪ this is daybreak asia. i am betty liu in new york. >> and i'm yvonne man in hong kong. us -- have told three are said to have asked why the compensation was increased to $7.3 million last year. he was paid $682,000 for a partial period in 2015. revenue is expected to climb 10% this year compared with 17% between the us year. fidelity is free to seek new

buyers after china's insurance failed to meet its second deadline to buy the u.s. insurer. the deadline for the $1.6 billion deal was initially in november and then this week. it is been extended to the end of may but now allows for new bidders. en banc has struggled. holdings is -- tv-b is trying to figure out who is behind an unsolicited bid for almost 30% of the country. they said they received an offer from a company called tlg movie but did not include any information about the owners, source of funds or anything else. shares close to their highest in 11 months. at hows take a look markets are trading here in the asia-pacific. it has been a happy friday after we saw a record highs on wall street with president trump talking about how he could be

laying out a tax plan in the next coming weeks. dollar-yen, a lot of yen weakness. the lowest in three weeks. asx 200 up three quarters of 1%. >> it shows that at least for today there are believers in relation very trade. more fiscal trade. it is not just a u.s. phenomenon also looking at other countries. particularly asia. then reflecting their economy as well by fiscal stimulus. >> big trend. >> absolutely. we just got a statement of monetary policy for the rba. we are seeing they chuck the seeingforecast -- we are

-- philippines essential bank leaving its key rate a record 3%. it might not stay there for long. inflation racing to a two-year high last month. clearly automating inflation. it has been trending very close to the target rate, or very close to the borrowing rate. getting very close to this pressure of needing to raise rates. let's ask the philippines deputy governor joining us on the phone. the day after they left rates unchanged. deputy governor, how long given the pressure that seems to be building in prices, how long can you keep interest rates steady? >> hello, good evening. the monetary board yesterday --iew the data and the

reviewed the data and the conclusion is for now we can leave our policy rates steady. of course, the monetary board reviews the situation every six weeks or so. the decisions have always been very data-dependent, yvonne. based on the inflation outlook, it seems to be still quite manageable in the amended forecasts we have for 2017 and 2018. the inflation path into the middle of our inflation target range. this is betty, yvonne is joining in on this interview but i do not want to confuse you. >> i am sorry. >> no worries. you've on and i like trading places sometimes. [laughter] tradinge and i like

places sometimes. [laughter] >> you have got me there. >> if the fed continues and perhaps accelerates the cycle, might that put pressure on you? it is been active in a very data-dependent manner. depending on the signals we see, bsb has shown it is ready to move as quickly as possible to address the situation. so far the approach has served us well in keeping inflation stable and at the same time supporting the strong growth prospects of the philippine economy. deputy governor, does your inflation forecast, does it play into consideration of your tax reform plan, which the government is seeking deputy gor to raise levies on oil as well as car purchases?

also cutting of the income tax. how much are you factoring that in? >> yes, the latest inflation forecasts already factor in the potential impact of the tax changes. like for example, the inflation forecast for 2017. it, the last time we said it was a 3.3%. the adjustment is now 3.5%. for 3%. the forecast is a slight increase now to 3.1%. these factors are considered in our assessment of the situation. governor, i know the governor, his term and's this summer. you are among the top contenders in a possible list of candidates to succeed him in this role. would you be interested in the job? >> oh, i was actually earlier

interviewed by i think one of your bloomberg colleagues and -- we have always worked as a team here at bsb. >> would you assess if they asked? >> i'm sorry, can you repeat that? >> would you accept the job if they ask you? >> yes of course, if it is offered to me. >> deputy governor agreed to have you here. -- deputy governor, great to have you here. another profits plunge, we will be live in tokyo to break it down. ♪

♪ nissan seeks to -- we're seeing shares up 1%. what happened? >> the shares are up 1% but it is below the market. is thing that stands up selling expenses. .s. is itse u biggest market.

they did not give us an answer, saying how they're going to rein in their expenses next year. plateauingrket is and decapitation -- and the competition is intensifying. emerging?mon themes yeah. this quarter is really a yen story. ironically despite the noises trump made about cars, japan, mexico, japanese carmakers are actually benefiting from trump's victory because the yen has fallen, the dollar is stronger on expectation of trump's stimulus policies.

at least for now they are benefiting. >> what about the border tax? look at of -- what impact might that have? >> japanese carmakers are just taking a wait and see approach. but we can probably imagine that they are coming up with contingency plans. we do not know what they are discussing yet. [laughter] >> i think i just heard your phone. [laughter] what's an eventful week. bloomberg markets: asia is next. bloomberg markets: asia is next. >> ♪china trade.

♪ midday in sydney, on this thursday evening. this is bloomberg markets. ♪ see you in court, trumpet suites he is taking his fight all the way to the judge. ,ith the immigrant and refugee the unexpected surge in china's exports. singapo w