♪ together with hundred percent, president trump pledge to reinforce the alliance. the buyback is laying out a challenge for mining rights. the heir apparent is summoned bribery prosecutors for investigation. it burning debate over australia's equity futures. the record seen over the bush

fires. sydney, i am haidi lun in. we are just one hour away from the opening. indeed, is just after 5:00 p.m. we are new york area just looking at how all the action will play out in the asia-pacific trading. heidi, we are going to be kicking off with a great of aview from the sea fo company. they are riding high on a .ommodity boon the question is, how long is this going to last? a are posting some of the best balance sheet among the minors. they may begin by the -- buying as well. are you able to have a little bit of fun with that balance paycheck. take a look at how things are shaping up here in the early trading session.

when it comes to some of these major markets, it is about tenths of 1%. seeing theis is lowest level next to the qe. we are seeing it pretty nice of the there. averagerading above the . look at quick commodities, there is a little that we look at gold. it is looking pretty constructive. iron ore, taking a look at that. we have a very positive basis. is going to hit multiyear highs. and singapore.

we it are watching the company's air be summoned again over allegations of bribery. taking to -- we're expecting him to take questions. for an arrest warrant on citation of evidence. two other executives are also expected to take questions. the uae is up beat. when they are trying to curb the local oilcloth. goods, in itsf history. the energy ministers said he would like to see that in the next couple of months. is neededs more time to find inventory and price. no, this with have -- this was

have rejected a multinational agreement, it would increase the burden on taxpayers. switzerland is under international pressure. 12% of thenerating country's economic output. chief sees the global economy picking up in 2017 into 2018. she said that oil prices were higher and that encouraged oil .xporters she also said that geopolitical uncertainty had public finances building millions. global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. this is bloomberg. now iseight, joining us

our guest to talk about the new learning week. >> there is quite a little bit out there today. theree the first firm out today at $54 million. .18% we up almost zero will have the ceo on later this morning. there is a fierce first half for verizon. >> wedded. it has been for -- what time it has been for gold. it is an extraordinary story isnt it. we saw the minors taking a ride there.

if you have a look at the chart, it is doubling in the past few months, iron ore and copper or. ceo with us a little bit later on. exactly. >> how good can the good times last? corporate bonds are looking at the australian dollar strength. >> here is the story we see on the bloomberg. they rely corporate bonds. he sees them continue to outperform. , this look at this chart is in the treasury index. it is probably in the global average, you can really understand the appeal. the cash rate is at 1.1%.

these bullets on the dollar as well. all right, paul, thank you so much. in sydney, shinzo abe and donald trump wrapping up their weekend. overshadowed by north korea which launched a ballistic missile and the middle of this golf outing or did. they were getting along great and then this happened. >> basically in terms of the local climate, north korea had a huge reaction. it is something the prime minister wanted to happen while he was here in the united states. let's take a listen to what mr. trump had to say. it was one sentence in

particular. >> i want everybody to understand that the united states of america stands behind , 100%.t's great ally there on bothces mr. abe and trump. they are now giving way to some geopolitical realities here. back offt trump comments about the one china policy. looking at some golfing that it happened before, but they are talking about is the trying to get some happy and optimistic face time. trying to get some happy and optimistic face time. one senior japanese official said they are using the love of golf to be an icebreaker. japan is thethat

world's biggest surplus after china. >> that is a point of contention. japan, butrest of president pence is going to take the lead. this is after the economic mr. abe said to trump to come over and golf with me. >> there is also an aspect towards golfing. it seems prime minister oblique does not want to get his hands dirty with the details. his deputy can do that with mike pence. for policy, this could be the start of a replacer for the tpp. they could find bilateral trade ties with those countries that were involved. as far as a new economic

going to be are looking at a fiscal monetary policy. it includes infrastructure, energy, tighten security, and i lateral trade. it will be an interesting point of contention here. for japan there is the , mr. trumpl sector did campaign to bring jobs back to detroit. he wanted those rust belt states beating clinton. they be interesting what are going to be doing besides building cars up ahead. >> all right, thank you for that. we have the latest on that meeting over the weekend. news, a goldking miner. it is about $187 million right now.

it has been coming under pressure since the trump train rallied after the election force. bucharest mining is showing a cash flow of $280 million. we are getting a little bit more analysis on that. still ahead, feeling the heat. as early as battle with record temperatures, what can they do to avoid this? >> you just said the bucharest results, rio de janeiro's ceo is us.ing us. investors are quite happy with that. this is bloomberg. ♪

. futures are looking at a slightly higher open. in daybreak us really a, we are here in new york. we have breaking news, as you mentioned luke arrest mining is coming out with their earnings. we are getting more details right now. the first half is showing underlying profits right now. mentioned earlier, they're not profit coming in at $187 million, the gold sale is at $1.5 billion for the first half for bucharest mining. we'll be talking about the rio tinto cfo. >> that is right. inalso have earnings coming talking in that earnings are going to be the key to rattling what this week comes with. there is $27.5 million in this share.

the first half at 209 australian dollars. it is hard to see with this comes with with a smaller or bigger lens areas. sorry that is $20.9 million. the commodities store, it has been extraordinary. people have been delivering on plans to invest in that interest the -- industrywide downturn. millions about $1 per-share buyback last week. it is great to have you. stay, is thisto the new phase of the money.

>> i think the key thing really is we do not want to put ourselves in a position where we cannot afford to be there forever. we plan around a series of videos. we saw this whole commodity process on hold. our cost structure is in good shape. that will launch the productivity drive across the nation. will improve our ability to adjust production. we like the idea of the higher prices. i cannot give you any justification to why it higher today as opposed to yesterday. >> not even yesterday government, you are going to see

the full to extension. it is the dramatic. you can see the prices are lower. , it is in twol directions though. i would not say it is going to fail. is arounde key issue the price goes up down or sideways. christ it is hard to predict prices. a lot of the analysts in the market say it depends on a bad coming in from china. china,expect at least in a similar piece of what you saw year? >> i think>> there is one more fundamental shift going on in china. efficient sides of the industry are coming out. it is being encouraged, there

are more efficient bills to get supply. you see some of that coming through. you can also see the higher prices. that demands the higher quality iron. up, you see the stock fell in the minus that is not good. be thefactor may not biggest risk as well. some said there might be a peak in demand by 2020. what which use think? have thaticymakers do have taken hold. if we were talking about our business, they would have been focus primarily on china. seeingwe think about it it from a light of geopolitical

politics. it is a very well run the economy. we expect this to continue. hopefully they are moving to their infrastructure today. toefully they are looking build into the assumption and services. it will not be the same strength, but it could have the same growth for commodities. good, dohe is looking we know the past three reviews. is that going to be something you metric? after this. of getting your accounts in order, are you taking more of a look at that balance sheet? cash kick -- we talk about flow and then we allocated. it was a fairly low year. about sustaining

capital. you will the ordinary dividends had atareholders, we least one dollar. i had not in the dividend. it was $1.3 billion. thatyear we are forecast $5 billion. next -- the year for that we will think about $5.5 billion toa any cash generation goes sustaining capital with dividends. capital,m with growth we will see a more return of reduction of debt. wherever that cash is -- growth?is m&a >> look at that that is a lot of things. they really cannot of last year.

we're looking at standard market caps, the value did not change it even though the debt was still there. that was still happening when the detriment of the market. we will be back with more in his few minutes. there is going to be one interesting merger, this is bloomberg. ♪

♪ >> this is a break australia.

i am in sydney,

>> that i'm in new york.

possibly a fifth straight session of gains. 55% of stocks trading on the asx are above their 20 day average. we could see the 100 level well in sight. that is a shot of a beautiful day here in sydney. betty: things are looking bright there. it is 5:30 p.m. in new york. you're watching "daybreak australia." david: let's get things started here with the white house. president trump and shinzo abe at this late solidarity over north korea's ballistic missile launch. on sunday, the north lines was an intermediate range missile. it traveled 500 kilometers before splashing down -- splashing down in the sea of japan. shinzo abe called it intolerable. mepresident trump assured that the united states will always stand with japan 100%. the president and i completely share the view that we are going to promote file -- further cooperation between our nations. we will further reinforce our alliance. largest moneyld's manager has a taste for australian corporate funds. blackrock is betting against

rising global interest rates. inputs asfixed blackrock likes the extra yield. they expect the moves in the u.s. market will create a spur in prices. the speaker of the british house of commons is being pressured to client after saying that he voted to remain in the eu. said theyhave said will vote for no confidence in the speaker. planid he would veto any for president trump to speak in parliament when he visits the u.k. this year. 80 bush fireslia, are burning across the australian state of new south wales after weeks of record heat. dozens of properties have been damaged or destroyed.

for monday. arrived the high temperatures are expected to return at some point midweek. with onerecord highs, day reaching 40 degrees celsius. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's get more on what we should be watching as trading gets underway in asia. we had another record high for the s&p in the u.s.. that has to lend a little bit of cheer as asia gets underway. >> i think it will. the overall message is that there are rumors of the reflation trade having died. i think that is exaggerated. the bitter support in japanese equities. we are seeing futures sticking a

higher for a strike, china, and hong kong. we had a huge rally in commodities on friday. that will keep things going strongly. haidi: we had the highly anticipated meeting between president trump and shinzo abe over the weekend. are we expected to see much of a reaction when it comes to dollar-yen? >> currency trade is not making much of this move. it is laying the groundwork for what we are going to see over the months ahead. a huge amount of details come out of this. plenty to look forward to on the relationship between president trump and shinzo abe. betty: blackrock australia's fixed income head has been discussing how he is navigating the entire global interest rate environment. tells about the aussie rates and what they are buying to take advantage of that? this is crank 40 at black rock. he is saying those inflation

expectations are underpinning a lower tax rate environment staying over 1.5% in australia. tot is lending support assure government debt that he is key -- keen on. also, plenty in the corporate space in the local corporate debt that is dollar-denominated. ,hat is the view of markets swaps markets are very sure of that at the moment. are expecting a possible cut later on. it is pretty much there for black rock. stay long aussie corporate debt. betty: thank you so much. now we turn to the week ahead on wall street which will see janet yellen appear before congress on tuesday and wednesday for her semiannual report on monetary policy. they will continue the parade of

earnings and economic reports. a lot on the agenda. su: picking up from what adam addressed, the big question is can the reflation trade get reinflate. will the records we saw be powered even higher? friday inl around on ngrt due to shares rallyi after some announced they would retire. the highest have been in correlation as we go down the road. we see again more support for higher level. we will likely continue to see that trend. we can also take a look at the bloomberg chart. the dollar rebounding after six down weeks. we saw this last week in part due to president trump strong remarks about the business tax.

he said we would hear details into-three weeks. we could see more of that in the week ahead. betty: speaking of details, what about janet yellen making the testimony? what do we expect? su: she will be delivering her semiannual address to congress. it will be a time to get questions on monetary policy. investors will be listening to what is going to be set here. what is also important is the dollar rally could gain momentum from her remarks, particularly if she leans hawkish. that might see a march rate hike which is odds of 50% right now. trump is also meeting with israel's benjamin netanyahu at the white house this week. he has promised to be more sympathetic to israel than the

obama white house was. the fourth week of skirmishes over the cabinet nominations. earnings, pepsi co., alliance, a lot of names coming at us. we are on the back side of the peak of earnings. 75% of the companies have been seeing profit. that spent -- trend is expected to continue. haidi: you also have data. what are you looking at? su: there is a correlation between the consumer price index which is due out on wednesday. a key data point indicates that rising prices for the consumer could eat away at the consumers spending ability. that will be something to keep an eye on. pricesow economists see rising at the same pace as last month. retail prices are expected to have fallen in january.

economists attribute that to the amount of car sales. production is another big report that is expected to be out. economists think there will be little change in the prior month. price index on wednesday will be the key thing that the market will focus on. haidi: thank you. in a couple of hours from now, a special prosecutor in south korea will summon the samsung employee. other executives are expected to be called in as investigations continue into allegations of bribery and embezzlement. a reporter has been on the story for us. it is been an interesting few months. reporter: it has. of samsungo head will be summoned two hours from now. a special prosecutor is looking

into whether samsung gave money to a close friend of the south korean president. bribery is the issue. samsung has consistently denied the allegations. last month, a court ruled that the special prosecutor did not have enough evidence to keep lee in jail. he will face more questioning this time around. a special prosecutor team will decide by next week whether to seek an arrest warrant for lee. this is the second try to get on arrest warrant. last time he was question for 22 hours. specialzel -- prosecutor has been considering to widen the investigation. betty: so far they special prosecutor has not had much luck. what more can they get? reporter: the prosecutor has said that they do want to present -- question the president.

investigators have been trying to search the presidential office. they were not able to. they showed up with 10 search warrants to it cover the entire presidential compound. the president's office had security concerns at the time. they will try to question her regardless of whether they get to search her offices. untilecial prosecutor has the end of march to wrap up the investigation. the constitutional court is in the process of deciding whether to improve on the decision to impeach the president on charges of abuse of authority and leaking classified information. the president has denied wrongdoing. there is increasing pressure on the president. betty: certainly a lot more ahead. thank you so much. still ahead, janet yellen said to testify in congress this week on the u.s. economy. we will look at what progress a

quart -- report we can expect. this is bloomberg. ♪

haidi: this is "daybreak australia." betty: a quick check of the headlines. the world's biggest coal producer has reported a 20% decline in profit. it dropped to $432 million. it missed analyst acts estimates -- estimates by 6%. they wanted to cover potential salary increases for employees. a bigger share of the u.s. pickup market. redesignntroduced the for 2015, he said the company

would reach 100,000 annual sales and 5% market shares within two years. nissan fell short last year. they captured less than 2% of the market. as for the company, the ceo remains optimistic. >> we benefited in 2016 of a strong european market. we expect to see the same thing in 2017. the reasons for which we showed some results is we have a good performance in europe. in only have we participated the growth of the market, but we gained market share. we have a fresh lineup. basically the reasons for which are profit is that the record level. betty: there is inflation. walt disney has increased its u.s. theme park ticket prices by almost 5%. regular entry to the magic

kingdoms in order and california will cost you $110. the rise in admission is less than last year. the peak holiday price of $124 will remain the same. the theme park is the only one of disney's four divisions to post an increase in profit in the last quarter. we are more breaking news. haidi: yes. this is the hong kong information and communications company. they provide broadband and internet. to raise 8.5 3ng billion hong kong dollars. that is around one billion u.s. dollars. the trust placement for pcw at the moment. betty: let's turn back to the u.s. and what is going to happen

this week. janet yellen preparing to testify to congress this week on the state of the u.s. economy. president trump's proposed rollback of the dodd frank act is also on the agenda. about stanley fischer and what he said over the weekend. reporter: he said something that is echoing other beneficial. we will get the same kind of remark on janet yellen on tuesday and wednesday. aboutportance for the fed the fiscal uncertainty. >> i don't think anybody knows what is going to come out of the process which involves both the administration and the congress. on fiscal policy any variety of other things. at the moment, we are going strictly according to what we see as our responsibility according to the law. betty: according to the law, the

fed has a dual mandate. it has to ensure that inflation does not get out of hand, and it has to make sure that jobs grow. you're looking at the bloomberg chart now. unemployment is down to 4.8%. this is close to the most optimistic fed targets for the year 2017. is much closere to the 2% target than it was. stanley fischer was also asked about donald trump wanting to roll it back. that is one of the main pillars of dodd-frank, reducing capital requirements. weekthis, remember last when mario draghi was speaking to the parliament and was dealing with issues that donald trump had proposed. you need safety from dealing with capital. fedy: do you think the

feels like they are under siege. reporter: let's remind everybody who dan trujillo is. was the chief man on bank supervision and regulation. he said he was leaving somewhere in april. that is a five-year early departure. he was a policy analyst. he is one of the most powerful bank regulators since alexander hamilton. trump's thou to rollback dodd-frank is that direct tarullo. to dan low -- that means that donald trump can fill three of seven seats on the fed board. president obama never officially ullo to the fed board, but that is the role that -- plate.very

we know that janet yellen will talk about the economy and rates. if she also going to talk about the overhaul of dodd-frank? reporter: i do not think she can help it. in december she defended dodd-frank. henryast month, patrick warned the fan not to make -- the fed not to make any more agreement until donald trump has made his views known. they want to know if janet yellen will endorse three fed rate hikes this year. the bloomberg intelligence team says yes, she will repeat this view of fiscal uncertainty. economists only expect one rate hike in june, and another in december.

up next, a record it wave -- heatwave across australia. there is a threat of blackouts. we have the details ahead. this is bloomberg. ♪

haidi: this is "daybreak australia." betty: australian prime minister is advocating more gas and hydroelectric power generation after the biggest date narrowly avoided blackouts during record temperatures. --haidi lun you have been telling me about this for the last week or so. much strain has this heatwave put on the power infrastructure? >> a huge amount of strain.

, which had a small blackout last week, and in , they on friday experienced an all-time record of energy demand. the heatwave has put demands on the energy structure. prime minister is saying hydroelectric or clean coal. would any of those help anything? >> the prime minister is talking and making a distraction. he is playing politics. energy supply is starting to become unreliable is that we have had 10 years of policy chaos. aboutides have argued crime and change in how to respond to it. in that time, we have not had the experts looking at how to

better manage the grid. we have not had people investing. has been caught in a never never land. now the chickens are coming home to roost. haidi: what needs to be done? is there a model elsewhere in the world that can be copied russian mark -- copy? >> policymakers need to come to an agreement and the knowledge that the carbonization and climate change is an issue. that is the heart of the problem. you had have security, reliability, and it has to be clean -- that is what we talk about with energy. if you do not have those three aspects, it collapses. particularlys not helpful, but thank you for those insights. avoid theage to

blackouts. let's see but we have coming up on "daybreak asia." focused on the south korean scandal. the chairman has been re-summoned once again, less than a month after the court rejected the request of his arrest. there seems to be new findings here according to investigators. they also want to question the impeached president. but there is push back on when and how that is going to happen. haidi: two turmoil and south korea to turmoil in the u.s. about how speaking the trump trade will continue.

the honeymoon is over. the fiscal tax policies will not get done until 2018. health care as well. he sees the u.s. economy slowing in the first half of the year. not a great picture there, betty. betty: he also sees oil topping out as well. going to be playing games with money in the markets. but what about playing games online? you must be secret gamers, right? -- maple these games stories, dungeness fighter? apparently they are popular in korea and china. i'm curious to hear from them and what they think about the online gaming market after pokemon go and super mario run. what is the next hit question mark -- hit?

haidi: looking forward to the next few hours of "daybreak asia."

betty: asian stocks poised to extend the global rally. investors look ahead to the fed speakers and u.s. data. yvonne: 100% united, donald trump and shinzo abe pledged to reinforce their alliance. head ofhe south korean samsung is going to be questioned again. yvonne: china's central bank cooks up i'll bet suit of