♪ >> keeping the faith, warren buffett helps shareholders invest light ahead, and naysayers calling a nonsense. rishaad: china opens the doors -- yvonne: china opens the doors to more ipos. betty: gopro sees a bigger picture, launching and editing app on smartphones. singapore listed noble growth, renewed questions i'm amid the --amid the tie up with simulcast. yvonne: we have world

coverage. china allowing more countries to list, and why singapore is questioning iceberg. betty: we will look at donald trump's first address to congress. this will be on tuesday. asia, coming to you from the u.s. and asian headquarters. i have betty liu. it is after 6:00 p.m. yvonne: it is after 7:00 a.m. in hong kong. it is pretty quiet in asia, not a lot to the eco-agenda. the cautious mix should be the big theme. we await president trump's speech to congress. betty: the markets are watching this speech in particular, for any kind of indications whether the markets here should break out, upside or downside. i just want to point to this chart. let's bring it up, because it shows you how to low the volatility is in this chart.

it shows you if you divide volatility, the shares, how much it has risen very given that, there are questions whether trump will change all of that on tuesday. we see the dollar breakout, stocks breakout, bond yields possibly. yvonne: possibly. maybe the dollar as well. we are looking for meet on the bones of what the trump administration really wants to pursue, tax reform, infrastructure. out inee how things turn the asia-pacific. pretty quiet as i mentioned, taiwan holiday. new zealand starting off with positive, up 1% for the index. the qe dollar just under the u.s. dollar. -- kiwi dollar just under the u.s. dollar. australia, a good level. we have fallen five of the past six sessions, so we are continuing that trend at the

open in sydney, 76.71 for the aussie dollar. here is how seoul, chicago futures are pointing. we could see losses. dollar-jan, holding on -- dollar-yen holding onto strength, but 12 territory for the yen. and china is allowing more companies to list 18 months after regulars clamped down on the market. let's bring in the top stories. why the change of heart? announcer 2: basically the market is -- reporter: basically the market is ready. they have recovered from the route of 2015, $5 million wiped out. it is things are getting better, more stable. we saw the uptick in the number of ipos approved in 2016, so likely we will see more in 2017.

the new companies can increase market liquidity and attract additional capital. investment value increases, confidence strengthens. fx from previously tried to clamp down on the spending ipos has proven to be what was not good. there is concerns more shares could depress the market. changing their view on that, and ipo cuts couldn't fix long-term market issues. givingmpanies will be the lesson to the yield. for a company could gradually increase their faith in their local securities. more than 600 companies are looking to list, looking for approval. 248 company's completed their ipo's. saying reforms are still needed, but for those to happen, we need

stable, capital market. moore ipo's have been approved, but there is new curves being introduced. rosalind: just last week, we saw new curves being issued on the secondary market. what is noted is that there is something happening where we see some companies are quite small ipo's, they get regulated approval relatively quickly. then they issue more on the secondary market here that is something the csrc has noted, keeping a close eye on. they are keeping a note on the pace of the placement. the stock market refinancing rate, six times as new listings. they want to clamp down on the number of shares and it cannot be more than 20% of your company's total shares. you see the brakes coming off a little bit at this chance of ipo's, but also a sharper i on the secondary market.

betty: thank you so much. rosalind on that big news about ipo's in china. let's get the first word news with paul allen. the london stock exchange, the european commission unlikely to approve the planned merger with deutsche board. they will not commit to divesting the nts unit as requested by competition watchdogs. there is an electronic trading for european government bonds, asserting the billion dollars byger, regulators will rule april 3. takata and the u.s. justice department appeared to have nominated a veteran lawyer to run the fund to compensate customers for the potentially lethal products. kenneth feinberg's appointment will be discussed by a court in detroit where sources say takata will admit to hiding the dangers for 15 years. they are linked to 17 deaths

around the world. u.s. governors have been told millions of americans could lose their health coverage under republican plans to replace obamacare. consulting firms as earlier stated thisackenzie over the weekend. 15,000 people gained health care that channeled billions of dollars to the state. the white house says president trump once nobody to lose coverage. the south korean talk to divisional court holds its final hearing on monday on the impeachment of president akron hey. hei.rk guen say -- sources say they must decide whether this is local -- legal. the independent french presidential candidate emmanuel final,has won a third

becoming the favorite. he is seen challenging the former prime minister for a place in the second round. leader marine le pen expected to win the first ballot. she is seen losing in the second round. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am paul allen, this is bloomberg. donald trump first base to congress, janet yellen's next economic update on friday, the week ahead will provide guidance on macro questions. kathleen hays here with more. have we gotten any clues on people like steve mnuchin on what trump might say on tuesday? kathleen: he spoke over the weekend to fox, and he said donald trump would touch on tax reform in his speech. repealing obamacare, jobs, all of these, but according to steve

mnuchin, the trump team is focused on sustained long-term growth. if you follow the steps of boosting revenue, getting gdp up to 3% on average, but not touching entitlements for now, no changes to social security or medicare, he says maybe a lower tax rate may not cut revenues. tell that to the u.s. gdp ratio to debt. there is a lot of discussion among experts, 3483 is one of the bloomberg charts that show this clearly. you can see the white line is ,he percentage of debt percentage of gdp i should say. that is the white line. look what has happened to nominal gdp growth. it has been declining, not as strong as it once was. some consider that a danger signal to have that high of a debt to gdp ratio. if donald trump cuts taxes but

doesn't make it up, the economy does not grow faster. that is why people fear this could get even worse. donald trump's speech to congress is being seen as a de facto state of the union address. bloomberg intelligence want to know if he is on board with paul the republican leader in the house, for a more stringent kind of tax reform and basically, so many people including liberally intelligence saying, we will not get any more economic impact until next year. that may be something. it seems it does hit the markets as you were discussing. betty: janet yellen though, she will be capping off a week of's fed speakers. she will make a speech in chicago. there is a -- eight. kathleen: the question for janet yellen, will she he will these that's in that we might actually go for a rate hike at the two-day meeting march 13 and

14th, or downplay the sense of urgency? world interest rate productions on the bloomberg, this is the futures trading sort of aggregated, 44%, the odds of that rate hike. last week, they were around 34%. people are getting the idea maybe it could be seriously considered. the eco-calendar, they have more numbers to choose from. before the open in the u.s., we get durable goods orders, tuesday revived worth quarter gdp. 2.1% from 1.9% in pce, that is a key measure. that could be one of the most important numbers of the week. and the beige book, 12 regional banks, views of regional economies, all of the officials at the meeting in washington, marching to afford -- march 13 and 14. yvonne: big events and major data points in asia. you talk about pmi, japan and just -- adjusting inflation.

kathleen: we get the pmi manufacture, very important, closely watched around the world. the chinese pmi is one of the biggest, seen moderating in march. and china is having the two session congress. you get the top legislative body, the political advisers, coming together to look at the big issues that will be on the table, the 19th national congress in the fall, the biggest event of the year, but this is the second biggest. getting the five year growth plan, maintaining the 6.5% growth target, structural form on supply-side and agriculture, globalization. the chinese are talking a lot about that and why it is important as donald trump puts it a little bit on the chopping block against you could say. -- i guess you could say. and europe, german inflation,

spanish inflation, but another #3221, a diverting path between headline inflation and that is the turquoise line, and that core inflation. the headline is up almost 2%. that is the ecb's target, but the core is not really going anywhere. the germans have always been complaining about inflation getting out of control, the ecb needs to stop buying bonds, raise rates. mario draghi fought back saying as long as the core is rate -- is weak and there is monetary policy for all of the nation in the euro, this is the number to watch, the flat white line. it will be interesting to see the response in the market and from european officials when those numbers are out as well. a lot is going on. yvonne: thank you. looking ahead, singapore listed noble growth is showing emerging earnings later on after the reviews from an anonymous but it

sent shares tumbling. betty: and market seeing the birth of a new reflation regime. we will talk to them in a moment. this is bloomberg. ♪

♪ we are counting down to asia's first major market open this morning, trading in sydney already underway. as expected, indicated by 0.3%.s, down this is a break asia. i am betty liu in new york. yvonne: i am yvonne man in hong kong. two of asia's biggest names are joining forces in investment joint venture by issuing $600 million of new shares in the softbank subsidiary to unify scott -- a unit of foxconn. they will take a lead on investments. the man has been retooling his empire in the emerging field,

the are and ai. -- vr and ai. betty: google looking for a new partnership in china with huawei. gopro has suffered slowing sales for rugged action cameras in the largest markets under pressure from the lower-cost rivals. the company was disappointed with quarterly sales broadcast before -- well below estimates. yvonne: samsung has a new tablet targeting video gamers and professionals. they are trying to bounce back from last year. the galaxy tab s3 and the s book were previewed. samsung delayed the s8 expected to be revealed now on march 9. betty: veteran investor billionaire warren buffett has underlined his state in the u.s. economy, telling investors that america's best days are already

ahead. investors must be ready for difficult times and take advantage of those opportunities saying, every decade or so, dark clouds will fill the economic skies. when downpours of that sort occur, it is apparent of -- imperative that we rush out carrying washtub's, not teaspoons. will be a big problem, bigger than president trump or central banks at the moment, and the banks are optimistic about the timing and magnitude of the tax cuts that will be put in place. joining us in singapore is michael kelly, the head of multi-asset at pine ridge investment. michael, this is again classic buffett saying, when everyone is fearful, you should be diving headfirst into the market to grab what you can. are we getting to that moment when we are going to see this rally in the market? michael: you know, we look at reflation as more of a good

thing than a bad thing. there is a big difference between reflation and inflation. and so in the 1950's, the world was re-fleeting, and you -- reflatiing, and you saw the stock markets go up. we should not be on route watch, it should be opportunity watch. betty: why the handwringing that we are hearing? michael: because we have regime change. we have been in since 2009, we have been in a regime that was the stall skate regime, and any upshot could send us back into the deflationary trap, central banks. people have been trained to worry about everything. handwringing about everything, but reflation is about earnings beginning to accelerate again, gdp beginning to accelerate, and slowly,es going up, but

not as fast as earnings. it is a good thing. at any big turn, in my view, this is a big moment. it is not a couple months' enthusiasm about trump. this is a multiyear moment. any moment like this, there has been maximum handwringing, to be expected. betty: there was a big change, people don't like change, it does rattle their nerves. you also say that markets are too optimistic about the tax cuts and fiscal stimulus that is expected to be implemented here. witho you reconcile that your view that deflation is going to be a good opportunity here? theael: yeah, so really trump agenda did not cause the pivot to reflation. it began in the middle of last year. the stall speed economy was really about after every financial crisis, the private sector he leverages, goes on for deleverages, goes

on for a long time. march the be the beginning of year nine three the private lever.has that happened before trump, the be getting. -- the beginning. trump is an accelerator of these trends, not so much of tax cut and the infrastructure spend, but the other big thing that happens after financial crises is we typically have regulatory spikes, and regulation is not necessarily bad. it is not necessarily good. it is the pendulum. it always goes what too far one way and then the other. it went too far in terms of restraint and growth, restraining the ability. the agenda that trump brings to put new heads into the regulatory bodies to ease up a extremities, the

that is the most positive thing he brings, and you don't need congress for that. that will go ahead, but not the trump agenda. it is its time to shake off the disinflationary pet tendencies -- disinflationary tendencies. yvonne: our valuation is getting too stretched in hong kong. there was a call about how first quarter earnings would be choppy , but what is the inflection point for you to start getting worried about where these valuations go from here? michael: if interest rates were about to go up very far, very fast, then yes, valuations would be stressed -- stretched. five years, buffets will rise faster than interest rates. faster thanill rise interest rates. in the stall speed, people stay

cautious, risk premiums higher. high, but that is because interest rates have been so low, not because risk premiums have been low. they have covered high. risk premiums will relax as reflation starts and offset the first couple chapters of rates slowly going up. for a while, it is just very good for earning streams that will begin to accelerate with reflation. betty: michael, great to have you. global head of multi-asset at pine bridge. joining us from singapore. warren buffett says investors have wasted billions on hedge fund fees in the past decade. his annual letter. ♪

♪ betty: this is daybreak asia. i am betty liu. yvonne: i am yvonne man.

warren buffett wrote about the hefty fees charged by hedge funds and the benefits they are reaping at the expense of clients. with more, ramy inocencio joins us in hong kong. all of it was good fun, what he highlights to investors. what were the takeaways. the take away is you have got to go into passes, because they make better returns. he was talking about how active likened them to monkeys. he is also saying that the proof here is in the competition, the friendly competition he wagered with an asset management firm known as protege partners, $1 million. we are almost at the end of that . they picked a set of hedge funds , the vanguard fund.

winning,e is he is buffett is winning. they compounded annual returns. buffets index fund is up 7.1%. if you through in $1 million at the start, you get $220,000. if you through into protege, you get $850 million. interesting what has been happening. warren said a number of smart people are behind this, but he said their iq will outweigh the fees that are involved in this. seey: always interesting to buffett going against the tide in the financial world, ramy inocencio there with more on warren buffett's annual letter. always a great read for the investment community. gopro ties up with smart thing -- smartphone maker huawei in china. that deal is coming up. this is bloomberg. ♪

♪ , chilly outside in hong kong. 30 minutes away from the ager market open -- asia market open, expecting trade numbers out of hong kong. betty: we are watching that, and is 6:30 p.m. sunday evening here, kind of a chilly evening, after several days of warm. unusual warmth for february. markets are closed as we saw friday, markets closed higher or near record highs. how many more highs can we hit? i am betty liu. yvonne: i am yvonne man, you are watching daybreak asia. now to paul allen.

paul: china will allow more companies to list support for the economy. the securities regulators dismissed concerns that a wave of new shares could depress trading. that is a mainstream view and has been welcomed by the market. they promised breakthroughs in market reforms. the ceo of the saudi stock exchange says the board is moving closer to msci emerging market status. he told bloomberg he sees increasing foreign participation in the saudi market. he is set to host the ipo of a stake in oil giant saudi aramco, which to be the world's biggest listing. representatives will be meeting with representatives in new york and hong kong next week. >> the announcement of msci announced thousands of offerings on the saudi market. all of that, we think, will

result in msci inclusion in the near future. paul: deutsche bank cut its 2016 bonus pull by 80% according to reports from the frankfurter. a quarter of the bank's 1000 staff will be affected. the --e told employees amidst legal expenses. the airport with the exiled half-brother of north korea's leader was killed is safe from any talks in. the health and -- any toxin. agent caused the death to him in 30 minutes. they want to question a north korean diplomat over the killing. role and denies any wants malaysia to stop the investigation.

joined by ex judge in qualifying to run the post of chief executive. the march 26 election comes amid concern on how much influence china will wield over the vote. hong kong's former chief secretary is widely screen -- seen as the front runner. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am paul allen, this is bloomberg. thank you. let's look at how the asian markets are shaping up on monday morning. here is sophie kamaruddin. sophie: despite the rising u.s. stocks, asian stocks are set for a mixed open. there is this on the horizon, we have trump and yellen speaking this week. there was the lowest in the week, that could spur the yen

strength, clear to gain, though it is coming off a session high. what look at the futures board to see how that may go into the performance of japanese shares today, looking at 0.6% lower at the open for japanese shares as well as weakness across korea, chinese and hong kong stock. on the agenda, we are on the lookout for hong kong and titrating data out this afternoon. -- thai trading data. over in the asx 200, we have energy and materials dragging on australia equities set for a thursday of losses. this is back down $54 a barrel after trading at a high on friday. we have to be insurance that, but stronger by we have joe morris health care falling -- jakarta health care

falling. japan is closed for a holiday. yvonne: so that is like year, looking a little tired. rally is that the petering out? sophie: the hang seng has rallied, the highest since august 2015. check out this terminal on #btv 6270, you see the index orbiting around 24,000 this february. climbs key, and the last to this level was september. after it failed to hold the level, the hang seng lost 10% over the next few months. we saw this go up, and the bull run in shares overbought territory. but hong kong is the best place to make money. china's top stock seeing more upside as earnings reprove -- approve.

we will find out if this is a victory. yvonne: all right, sophie. we are watching noble shares today, the company due out with earnings after facing fresh attacks from iceberg research. there was a report -- rulers on friday. -- release on friday. let's get to the southeast asia correspondent, haslinda amin. what has iceberg said this time? haslinda: here we go again. taking issue with nobles contract, saying they are not correctly valued, the company not worth its normal value. potentialsay any strategic investment which it feels to find needs to value the commodity contract. the report from iceberg prompted a massive selloff on friday. if you look at the chart, it was down 17% after hauling as much

as 22% earlier. a half020, one and cents. there were two horrible years after the iceberg report, criticizing its accounting. at that time, battling as well, everything from lower commodities prices to mounting debt. remember iceberg research is anonymous. we don't know who is behind it. no one can dismiss iceberg research saying it is the work of a disgruntled former employee , but that has not stopped investors from getting into it. yvonne: nobles said it has found a strategic partner here at how much do we know about this, and how concerned are we there is agreement with this partner? haslinda: what we know is that people familiar with the matter, negotiation's are the final camp. they are still at early stages.

interesting to see the tag from iceberg will derail the stocks. trading,est in noble's that includes oil, coal, natural gas. noble has been lambasted, cutting expenses, debt, trying .o prop up its balance sheet its credit rating has been cut to junk. what is happening to noble shows how difficult it is to get investment. much more ahead on that story, i am sure. thank you so much, haslinda. gopro editing app called quick will be a part of huawei's newest smartphone. it will boost sales in china. su keenan has more. gopro is flailing. su: they need more sales, chemchina be the answer? if you look -- can china be the

answer? if you look at wall street back in the day, gopro was extremely higher. the secret was the fact that many videos being hosted by these camera users would make .hem a huge media company people taking pictures of themselves doing dangerous sports, and it hooked people for a while, then they got used to it. will the quick app, which was downloaded more than 12 million times last year, work once it is integrated with the huawei phone? they need more global growth, the revenue is 18%. can it boost it? they will try to reverse the sales, check out the year to date chart. you will see gopro is trending slightly higher by way down from your one. -- year one. yvonne: is this more about selling cameras in china?

it needs to sell cameras, not just in china but elsewhere. people use this trade quickly, put video and photos together, perhaps the china market, it will jump to the new clients buying cameras. buyingpeople in asia be $300, $400 tiny cameras when there are lower prices, that is indeed the question to determine. as for huawei, it is a big company that sells 170 countries , branched down into businesses from smartphones to wearables, and the question is, can they move the noodle again? one man says he doubts it, he really thinks it cannot solve gopro's problem. here is the white line at the top, the americas.

an upward line where sales are increasing but way below the peak. the bottom line is asia-pacific. there is not enough volume there, analysts say, to create much optimism. but gopro thinks it is worth the push. yvonne: they do like the mobile marketing -- editing app. targets await president trump's street -- speech to congress. any signs of detail on economic policy, and leading fx and commodity forecasters. ♪

♪ betty: we are counting down to asia's first business market, japan futures heading lower with dollar-yen hovering around 112 territory. i am yvonne man. betty: i and betty liu in new york. a quick check of the business flash headlines at this hour.

here is a blast from the past, hmd global has launched a new range of phones including a redesign on the classic nokia 33. the move is a major move to get nokia's glory days back. other also releasing two nokia handsets. run the google android operating system. a flash from the past. yvonne: so many memories when it comes to nokia. the world's biggest telecom companies joining forces to push for a faster move to 5g. at the conference in barcelona, more than 20 companies signed up to set standards for the next iteration of global networks. they hope that will accelerate the rollout of new technology to 2019. joined and even rivals the effort. betty: the damages from

volkswagen diesel emissions scandals now almost $24 billion. the fourth quarter chart was pointing to $4.6 billion after they resolved to reach agreement in the u.s. , and they still intend to pay shareholder dividends. yvonne: the treasury secretary steve mnuchin has signaled the fiscal stimulus will be modest. the expectations that trump could announce proposal that this proposal before congress. joining us now to talk to us from austin, texas is the president have prestige economics, one of bloomberg's top forecasters of forex and commodities. great to have you here. let's talk about the dollar here. we are still stuck in this tight range. it is boring these days. we see it heading lower, the dollar bonds traded.

it looks like people are taking risk off the table after the surge of the election, and trump -- put his speech to congress this week helped the dollar break out of this range? >> not sure if his speech will do it, but there are 10 separate speeches on the docket this week. janet yellen's will be on march third among that cohort. that could send the dollar significantly higher. we are above the 30 day and 100 day moving averages, and on friday, levels were tested. that was the feeling for march is5 until november, so that the critical support level of both. if the market begins to speed up, and the fed speaks this week about the prospects of fed rate hikes on march 15, that greenback will go higher. yvonne: what dollar pairs are you watching closely who toured

is it better now, you get a tweet from trump anytime, there is a little risk in europe right now, and the fed speak you highlighted, is it more tactical when it comes to these traits, move in and move out rather than have a longer view of the dollar right now? euro: the currency pairs, is one that i am watching closely because i actually think the euro is a bit oversold. european data has been getting very strong. the february info which came out went up again. that is good for pmi to manufacturing, pmi for february will be strong. so even the dollar strengthening, the euro will see fundamental support as well. for other currencies, the commodities are a big trade. commodity currency, we have seen big moves in oil, metal. you will see that trend higher, then you look at the aussie dollar, that is under pressure

as we have seen in the past few days, copper and other metals taking a bit of a hit last week, but those will kind of be part of that. it depends on the chinese machine pmi, critical for metals. ,vonne: as you mentioned, china i was going to ask you about the confusion we saw with steve mnuchin who sees no urgency in labeling china as a currency manipulator. but then you hear from trump saying china is the grand champion of currency manipulation. who do you listen to when it comes to these stories, and where do we go from here? goingve mnuchin's comment to ease concerns we are not going to get a trade war? jason: there is a couple things. one thing is that so many issues discussed in the election and postelection. period, what is talked about and headlines, but you will see more reasonable policies in

place, what is exciting to hear during an election. that being said, one thing we couple of the last months, one of the recent goals is because the expectations of policy have widened. there is an uncertainty that has made the tail end of the distribution policies a little bit wider, so there is an certainty. i would love to say we will see a reasonable policy in the election, but you have got to have some surprises. that is something the markets are trying to reconcile across currencies and across financial assets. betty: uncertainty is the operative word these days. i want to pull up one of our favorite charts, the one you know, work, wirp, and this is what is confounding to me, jason. there is a 40% of ability as indicated by fed futures that we will see a red hike -- rate hike

in march. but a few columns over and over to december 13, there is now only 24% chance we will see three rate hikes this year. that is lower than last week, which was at 27%, 28%. there is more uncertainty of a march hike, but there is more certainty, what is going on? jason: that has been my view for a couple of months. bloomberg talked about the case for a march rate hike. you look at the euro inflation numbers, and the probability the fed goes in march, which is our expectation and has been, is pretty high. you look further out the year, the thing is, we want to know where u.s. equity markets up so much? markets are trying to price in the increased valuation to companies if you get a 14% corporate tax. and that number, the market

,eally has its teeth sunk into doesn't come to fruition, you could see is this investment pullback. last year, business investment spent a good chunk of the year in recession. business investment could be quite fickle. that could pullback, and that might need to wait until later in the year for a second rate hike. we don't expect previous rate hikes. betty: do you still see a recession or probability of a recession? jason: there is a significantly reduced probability, because you have seen so much optimism on the corporate side. our clients, 89% of our clients in october were expecting recession, either the fourth quarter or 2017. the most recent survey of were 21%.om 2017 to go from 86% just in this year down to 21%, that is a really

big drop. there is a lot of car -- corporate optimism. but if the tax cuts don't happen, that investment could pullback. the big upside is the legal markets are good, and even though investment was in recession last year, consumption did quite well. this could be a good year for consumption, and i expect deficit spending to loosen that up the gdp numbers in the second half of the year. betty: a lot riding on the fast -- tax cuts and fiscal stimulus. thank you jason. on of the most accurate forecasters by bloomberg. up next, mexico's top trade negotiator outlines plans for a pacific alliance without the u.s. vix goes coming up this is bloomberg. ♪

♪ this is daybreak asia.

betty: president trump's withdrawal from the transpacific partnership has left remaining nations wondering what is next. australia has suggested pursuing tpp minus one, but mexico's top tpp couldtiators says be the answer. inwe have a meeting in chile march 14, and we are trying to really put the center of these discussions, meeting with tp countries -- tpp countries in this meeting. theant to open the door for trade pact. and the countries that were in tpp, the alliance pacifico could be a change for tpp. reporter: do you see china as a major trading partner? >> we have not had any kind of discussions with china.

we have widening and increasing trailers and should -- increasing trade relationship. we have been talking with xi jinping, and we have an open market for mexican commodities. decreased, we are sending more of a condos to china. -- avocados to china. i still believe we are very similar economies, and therefore we are not like the profile that you have in latin american countries like brazil what are basically primary nations where they have a natural compliment to china. have more of a competitive profile. reporter: you mentioned brazil as a trading partner. how fast could ramp-up trade in a country that is even more closed and has an economy

without a lot of growth potential? >> brazil is going through rough times economically, but we do believe that latin america is the important market we have a strong relationship with them. we are basically trading $10 billion with the brazilians. we see a very high potential, but mostly right now, mexico, in terms of agriculture products, we are fully depending on the u.s. economy. even the fact we have to prepare , we have ton times strengthen our relationship with brazil and latin america, because without the grains, foodstuffs, wheat, corn, they haven't. -- they have it. betty: that was mexico's foreign minister speaking to bloomberg. let's go to japan here. you see how futures are trading.

they were looking very optimistic at the start, given how dollar-yen has moved, still 112 territory. could be a bad day for stocks in tokyo. ♪

♪ >> asia-pacific markets in a featuringttern, speeches by president trump and janet yellen. >> warren buffett tells american shareholders days are best ahead. doors toopens its ipo's, concerned that a wave of new shares could depress the market. the good times are back in macau , high rollers pull casinos out of their two-year slump. >> this is the second hour of "bloomberg daybreak: asia" live

from bloomberg's u.s. and asian headquarters. >> it is just after 7:00 a.m. in new york. it looks like the high rollers are back. they are placing bets, in a winning mood. let's see how the markets are this week. >> u.s. stocks at record highs, still struggling for gains from here. that move lower in 10 year treasury yields something to watch in asia as well, which has softened a little bit. how things are looking in the region this morning with sophie kamaruddin. sophie: with that drop in treasury yields, some support for yen strength. fridaykei 225 falling come extending that drop, down .7%. taking a look at the movers at the start of this day, we do have the likes of toshiba falling over 2% on friday. we did get updates on its chip

division sale, looking to split operations and complete this entire commission by this year. either movers as well. over on the kospi, a big event today, the final hearing for the south korean president, the kospi marginally higher. rate and samsung on the dar. by .25ralia, lower percent. this monday, on the lookout for australian inventories and company operating profit for the fourth quarter. a strong rise expected, led by the mining sector. and dampenedlook with the pullback in commodities prices.

materials and energy segments have been the biggest drag this monday. looking at some movers, australia's largest global insurer up 6% after announcing a a 5%million share buyback, increase in annual profit. a quick look at the bond space given how that may give us some sense of the market sentiment ahead of president trump's and janet yellen's speeches. bonds climbing, the yields on the aussie ten-year has fallen about four basis points to 2.7%. >> thank you. china is ready to allow more companies to list 18 months after regulators clamped down on the market. we have the latest on this story. we still remember the summer route of 2015, but is this a signal that we have turned the corner? >> yes, they are signaling they and to see more of ipo's,

that should support china's economy, so saying that china is ready for what they call after aately sized ipos stronger than expected recovery from that 2015 route, $5 trillion wiped out there, so it has taken time to recover from that, and enough regulators think we can release the floodgates a little bit more for ipos. clearly shows the shanghai performance in the last couple of years. a chairman say the entry of new companies can increase market liquidity and attract additional capital. he also says some of the previous practices of slowing down or suspending ipos was not good and is concerned it could depress the market, which is what some have been saying. in theas been an uptick number of ipos are approved for

the second half of the year last year, and also a slight depression of the market as well , but he is saying that is not a concern. an ipo can't fix long-term market issues. there has been a backlog, 600 company seeking approval, 200 approved in 2016, 248 completed ipos. he said reforms are needed, but -- approved,os have been but there are more curbs as well, right? >> new curbs mainly in the secondary market. we have seen a bit of a phenomenon where we see companies going for smaller ipos in order to get regulatory approval faster, then issuing shares on the secondary market. this is something that has been noted and they are starting to clamp down on. so they are looking at the pace

companies are offering shares. the number of shares cannot be more than 20% of total shares. the chart shows the secondary market equity sales in the china market, clear growth, then i slump in 2017. they also say additional share have 18st in principle months of the capital raised from the last sale and place. so six times as much as new listings last year, and the csrc said it would take steps to control public companies from raising too much at one time, some new rules they talked about last week as well. >> thank you so much. rosalind chin on the ipos about to possibly fled the chinese market. now let's get to first word news with haslinda amin in singapore. exchangendon stock says the european commission is

unlikely to improve its planned merger. the board will not commit to divesting its unit as requested. it is an electronic trading platform for european bonds. the $13 billion merger would have created the dominant trading operator. regulators will rule by april 3. takata and the u.s. just apartment nominating a lawyer to compensate customers over its products. appointmentberg's will be discussed by a court in detroit today, where takata is set to admit of hiding dangers and its airbags for 15 years. police in malaysia say the airport where the exiled have rather of north korea's leader was killed is safe of any toxins. the vxlth ministry says nerve agents caused his within

15-20 minutes, kim jong-nam. malaysian authorities want to question a north korean diplomat. north korea has demanded that malaysia stop the investigation. n has won a third endorsement, underlying the feeling he is the favorite to win. macron is a scene challenging the former prime minister in the second round, but the far right leader marine le pen is expected to win the first ballot, but losing and the second round. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haslinda amin i am -- i am haslinda amin >>. thank you. from donald trump's speech to janet yellen's update on friday, this week will be jampacked with some guidance on some very big macro questions at our global

economic and policy editor kathleen hays is here with more. what clues have we been getting what trump might say? >> the treasury secretary giving a couple of interviews since spurs they has given us some sense about the physical side of this, because on a trouble have a lot of talk -- to talk about this the're calling defect estate of the union speech when he talks to congress prime time around the world. latest mnuchin in his interview, one of the big newsmakers was he said that trump will not touch entitlements for now. social security, medicare, particularly if you're talking about cutting taxes, which are suspected by the trump team to boost growth. , paran see boosting gdp that back and you can get the economy to grow at least at 3% annual rate when it comes to gdp. steve mnuchin says it is a big job but they help to get the tax plan on the table by april.

again, you cut taxes, how do you pay for them? let's jump into the bloomberg and see what people are concerned about. this is #3483. the white line is the debt to overatio, and it is now up 6%, and that is a concern to some people. the blue line is nominal gdp growth losing strength. you need gdp to grow faster than to have more tax revenues, but this is the concern out there. bloomberg intelligence is going to be listening to hear if donald trump gives a signal that he is on board with house republican paul ryan's tax reform plan which does have measures that would pay for tax cuts through spending and other measures, and bloomberg intelligence is also expecting more and more that we want see any impact on the economy from trump's fiscal steps in 2017. it will take until 2018. a noted expert said the same thing. i wonder if that will sink more

and more into the markets after they hear from trump tuesday night? >> so trump first on tuesday night, but a series of fed speakers before janet yellen speaks on friday, so what is expected or hoped for their? speakers, including janet yellen to cheek caps off the week on friday with a speech in chicago. the question is will she fuel the sense that a march is on the table for the fed or does she down play it, close urgency, not worried about inflation? let's look at world interest rate projections, march 15, the odds of a hike are up to 40%. a week ago, they were 34%, so the markets are getting more and line with idea that it could happen. a lot of economic data this week, setting up for that very important debate on monday, later today in new york come of the trading session durable

goods orders, an important number for manufacturing. tuesday is revised fourth-quarter gdp, 2.1%, the main inflation indicator. i asked them inflation kicking off psi's around the world, beige book on wednesday, anecdotal information from 12 district banks, getting ready for what the economy as they have that all-important debate. events in major data points in asia and europe, so go through all of that for us as well. >> there are too many. china pmi is the big one. it is big as the u.s. certainly because we are concerned about china growth and if it is continuing. those numbers seen moderating. china will be having a couple of weeks of the national people's congress, the top legislative body, and the cpp, the chinese people's political consultative conference going on at once,

looking at foreign policy come at the economy front and center, 6.5% is the growth target. chinese leadership was dizzy that met throughout the whole year. some structural reforms in agriculture on the supply side, and globalization. we will also be getting a area inflation, hotspot for the week, a bit later. >> a lot ahead. thank you for wrapping that up for us. still ahead, the high rollers returned, macau gets a live from wealthy chinese gamblers. up next, from tax reform to deregulation, we look cap president trump's crowded agenda and whether we will see movement on his market from the policies. this is bloomberg. ♪

this is "bloomberg daybreak: asia". >> a quick check on the latest

business flash headlines. two of asia's biggest names are joining forces in a joint venture by issuing $600 million ofnew shares to a unit foxconn. foxconn will own more than 54% of the venture and take the lead on investment. the chairman has been retooling his empire and investing in emerging fields such as virtual reality and ai. samsung releases a new tablet targeting video gamers and professionals as the company tries to bounce back from the note 7 debacle. they were previewed at barcelona. samsung delayed the release of its latest smartphone, with it now to be revealed on march 29. >> gopro looking for a boost in china through a partnership with huawei. it's apple will come installed on new smartphones. sales underffered pressure from low-cost rivals.

earlier this month, the company disappointed with quarterly sales forecast far below estimates. next guest is cautiously optimistic on global growth and still favors domestic market equities as markets face challenges, potential rate hikes and a stronger dollar. he is a global market strategist for j.p. morgan asset management and joins us from melbourne. great to have you back. let's start with emerging-market concerns. we saw a lot of that with the strength of the dollar. the dollar interesting the unknown for over the last several weeks has gone nowhere. the dollars talk of slipping if we don't get what we want in the u.s., if tax cuts and fiscal stimulus don't go through. so are you still as concern or worried about emerging markets because of the dollar? >> good morning. is not saying it

is as burnable as it was in 2013 and what happens if rates go are in the u.s. of the dollar goes higher, but i think there is an attitude of things are improved, but not perfect. current account deficits have come down. we know reliance on u.s. dollar lending has come down, but we still have talk about protectionism from the u.s. coming towards the emerging world we still have concerns for the growth outlook on china, but while it is stable, it slows. we know a lot of what we see in the emerging world has been back on the improvement in commodity prices, so it is a diversion story. we look at emerging markets and say there are attractive opportunities, but more opportunistic and how we approach it. the dollar,out rates, and about protectionism, which can have a negative effect on sentiment. >> you say there are pockets of

opportunity. where in particular do you see that? is deathly about those commodity stories, so we look at the fact that the great performance out of russia and brazil for the last year or so. level of reform is probably will not be repeated, but russia, the currency is still relatively attractive, the growth story in proving, still coming out of that recession. commodity prices may not move higher from here, probably looking relative stable and a positive outlook for commodities producers. that's what we see in terms of attractive opportunity for emerging market opportunities. when we think about the long-term, we would argue that under weights that portfolios have had should be re-addressed and factored to more neutral in the near term. worry last week was when we saw u.s. treasuries,

yields at the lowest level in a month, 2.3% on the 10 year. 2.3%?f that breaks below could that signal more of a rotation and lead to less bullishness on these u.s. equity rallies we have seen, and could that have an effect here in the asia-pacific region? certainly there was a lot of expectation and this great rotation towards equities and out of fixed income, but a lot of money is still flowing into bond markets as well as into equities, so the trouble investors are having as they are cautious about exactly how high yields will raise even though we are thinking about this inflation coming through and this inflation trade. right now it is about the timing. the inflation outlook is improving, but one of normalization around the world. we think about inflation rates going back to 2.5%, not much over that, and so yields will not rise a huge amount in the near term, so we think about the

u.s. 10 year treasury yield around 3%, but australian 10 year, something similar, so you start to move up to something that looks more attractive from a buying opportunity, you will see it come down until you get a clear view about where that inflation will come from. the 10 will be driving year from here on, the fed, trump, or political risks in france? >> i think once you get the political risks, the european election cycle is a great example of that. and the eurozone has an improvement in the economy. the latest pmi numbers, some of the consumer sentiment figures, or even the employment, improvements we are seeing there, underlying growth looking better, plus politics. our best case is that politics will pass relatively uneventful in terms of not having a right wing party come into power.

economy, andthe inflation will pick up through the earnings numbers coming out, but that is where you see a that and the equity markets performing better come and therefore you start to see inflation and bond yield number start to creep up again. >> if you could look into your crystal ball and say for 2017, if you could 10.1 thing that you believe could actually trigger a global equities route, which is on the minds of people these days, what do you think it would be? question to tough narrow it down to just one thing. there is always a stack of worries people have. the biggest thing that would be triggering the route is that the fed did not raise rates this year good that would send a negative signal about where we are in the world or what will happen with politics, so if the fed becomes more cautious, expectations rising for a march rate hike, but if the fed

becomes more dovish intone, that will send a shiver down the spines of investors in terms of that improving outlook for equities. we know they favor low interest-rate for a long time, but ultimately you want to see earnings growth move higher to help that story. >> thank you for joining us. the global market strategist for j.p. morgan asset management. freshg ahead, noble faces questions, sending the stocks on a tumble. we will look through all the accusations next. this is bloomberg. ♪

this is "daybreak asia." >> noble group due out with earnings today, fresh attacks from iceberg research and a report released on friday. the anonymous researcher criticized nobles accounting, sending shares tumbling. haslinda amin is here with the

story. what is iceberg research saying this time? pointing to nobles contracts, saying they are not correct, saying the company is not worth its book value. any potential investor noble says beware. there is nothing new in the report. in fact, nobles operations have improved, but the market still got nervous. investors went into a selling frenzy. take a look at how it traded when iceberg released that it went down as much as 26% before ending the session 17% down. noble shares have only just begun to recover following the first iceberg report criticizing its accounting. it was at that time getting a beating from cheap commodities and mounting debt.

it is surprising how to greet the market has been given that iceberg research is anonymous. there is no name or face behind the report. noble said it is the work of a former disgruntled employee, but investors are not dismissing it despite investors brushing it off repeatedly. >> noble said it found a strategic partner. how much do we know about this and how certain we are the could reach an agreement? >> we know very little. what we know is that people familiar with the matter say negotiations are with a china state owned company, but still at early stages. it will be interesting to see if the latest attack from iceberg will derail those talks. the company is said to be interested in nobles coal, oil, and natural gas businesses. live froma amin singapore.

up next, warned buffett released his annual letter on saturday, and he had a few choice words for actively managed funds. we will tell you about that next. this is bloomberg. ♪

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♪ yvonne: we are half an hour away from the open of trading here. betty: you are dodging -- watching daybreak asia. let's get to first word news. the south korean constitutional court held its final hearing on the impeachment of park geun-hye. she was suspected of scandal over on do influence involving a -- and some ofr south korea's biggest companies. they must decide whether it is legal. local media expects a verdict in two weeks. -- the of the study

saudi stock exchange say they are moving closer to emerging market status. he is increasing foreign participation in the saudi markets. they will host the ipo of the giant saudi aramco, which could be the biggest listing. he will be meeting investors in singapore and hong kong next month. >> the recent announcements of market, all ofdi int meeting that will result msci inclusion in the near future. betty: deutsche bank cuts its 2016 bonus i almost 80%. -- and by almost 80%. a quarter of the 100,000 stock will be affected with key workers offered long-term incentives as a consolation. bonuses would be reduced and low interest rates and low legal rates.

to run for the office of post chief executive. this comes amid concern over how much influence china will wield over the vote. hong kong's former chief secretary is widely seen as the front runner, and gives -- endorsed by senior members in the communist party. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am rosalind chin, this is bloomberg. how the asiansee markets are shaping up. trepidation is what we are going to see in the region this morning i had of plenty of features not just with president trump doing his first speech to congress but plenty of fed speak as well. sophie kamaruddin has the latest. betty: lets the -- let's see how that plays

out in the markets. we see u.s. 10-year yield over the 2.1% after falling to the levels on friday. this amid concerns over rising french elections and the policy, but blackrock's chief fx strategist said the bond markets and be wrong, but the window to change is fast closing. we are seeing japanese bonds set to extend last week's events. the 10-year yield continuing to retreat this monday. it is the closest to the 0% target in a month. on tuesday, the boj will release guidelines for the bond purchase program by march. the boj wants to be more transparent by operation, especially after the 10-year yield surged last month, the highest of the year following is a point numbers. -- disappointing numbers. they may look to share the exact date and amount of supply to limit speculation around its policies. looking at how equity markets

are panning out this monday, we have the kospi now swinging losses here. of the big decliners, falling 16%. in terms of points, we have the likes of chipmaker samsung electronics and more on the kospi dragging. samsung -- the company said it completed supplying batteries for an energy storage system in the u.s. i want to add what is going on in australia, the asx 200 down in the red. we had the aussie fourth quarter company profits coming out, ,ising 20% quarter on quarter suppressing the median estimate for 8.8% rise. yvonne: all right, thank you. in an annual letter to berkshire hathaway shareholders, warren buffett highlighted what he has for more than a decade, hedge

hefty fees.charged let's get more from ramy inocencio joining us on the hong kong set. it has a ripple effect on where investment goes from here, but what was the main takeaway? ramy: go into the fund, because you will return there, and $100 billion of bond. what actively managed funds are racing in terms of investors' money over the last decade or so. if you look at his playful note, he likened investors to month -- to monkeys. he has only met 10, he said, let the tide take you out. hadhis $1 million bet, he with protege partners, a u.s. management firm, over the past nine years, he challenged them to pick a set of hedge funds. 2.2% over the last nine years

versus a low-cost vanguard that warren buffett himself has invested in. if we break apart what protege is actually invested in, it is five hedge funds. you can see those. fund c, 63%. and mr. managing fees, buffett says they take away 60% of the gains. it is more interesting. [please stand by] you can't overcome the cost, always being a little cheap. if mr. buffett wins, as expected to do, basically the money for this will go to a charity of his choice. betty: certainly he is clever with his language and make his

point. tell us about the data. what are we seeing, passive funds and active funds? ramy: really interesting stuff. let's go to the bloomberg. i will show you the bart chart activempares assets to assets in the u.s. blue's act -- passive assets. in the past quarter, $4.3 trillion is where we stand with passive assets. that compares with $5.1 trillion in active assets for the first quarter of 2017. look how much the blue has grown since 2009. it is now at its highest. the yellow has started to come off from 2015 or so. we start to see investors redeem some of those moneys out of the looking ats and passive funds. january for vanguard actually set a monthly record, another lovely record year on year, $47 billion back in 2016, $300

billion. you can see the share price over 23%.ast year or so, up black hawk also in 2016 saw inflows of $200 billion. this is just a general storyline we have been talking about over the past couple months. boost as they the get a pullback here. most asset managers have seen money go far away. morningstar, 40% -- 40 of 50 companies have seen redemption. betty: thank you so much. two weeks from the next rate decision, bond markets not alive,ed that march is despite what janet yellen and others have been saying. earlier we spoke with the incoming global head of fixed income for janet henderson global investors. we are seeing a revival of risk in the market? >> the s&p and the dow setting

new record highs. they rallied a little bit. we are not sure what trump's policies are going to be and with he will implement them at all. been to 30hey have two to 60 in the past several months. it continues from where we are today. reporter: last week we had the record $8.5 billion in australia. that suggests that will continue? >> it is one of two countries with positive yields. australia, new zealand, the u.k. , the u.s., most of europe is zero or negative, japan is zero or negative. corporate bonds are good to be when issuance is high. you get 3% in australia. in europe, you get less money in the future. it is a weird situation to be in. that is why you are in asia and the u.s. been a weirdhas

reality, but we accepted yet so far. i want to ask you about the dollar. it has been in this tight range. no one knows where this dollar is going to be headed, a lot depends on the u.s. does that bite some time for -- buy some time for australia? >> yeah, you have got to be bullish to the u.s. dollar . you would argue the u.s. is well ahead on growth. not only do you get stimulus from monetary policy, but with trump and trump's policies, if implemented, you get stimulus. you have got to push up asset prices in the u.s., and you have to be long the u.s. dollar, but what other currencies are you shorting against the u.s. dollar? the euro and again, because they are still -- the yen because

they are still stimulatory. the aussie dollars starting to go up. if you are going to be longer on the u.s. dollar, the negative has to be the euro or the yen. betty: have you expect that commodities story to be for australia in the coming year? inar: after the fall commodity prices, now it is not the issue of supply. they are not building new mines or anything. demand is picking up. china used to have positive growth, india gdp is coming out. you see the low-end prices starting to pick up. when prices pickup and commodities, australia, aussie dollars a should benefit. it should be positive for the australian economy, and the rba being on hold, that should be positive. it could go higher from where it is today. was speaking on daybreak australia early on. up next, a two-year slump,

running through the numbers. this is bloomberg. ♪

betty: this is daybreak asia. i am betty liu. yvonne: a quick check on the latest business flash headlines. launched a new range of phones including a redesign of nokia 3310. it was a major text to revive nokia's glory days -- major push to revive nokia's glory days. they are releasing to others. -- two others. the three and five will be released separately. right, such a flashback. some of the world's biggest telecom companies are joining .orces for a faster move to 5g

at the world congress in barcelona, they signed the standard for the next generation. they are hoping that will accelerate the rollout of the new technology in 2019. intel andven rivals qualcomm will join the efforts. yvonne: the damages spill from diesels -- from volkswagen diesel emissions scandal is more. there was an agreement to resolve consumer claims in the u.s. operating profits rose 14% due to improving sales margins and intends to pay shareholder dividends. betty: the go from editing app called quick, to use it, it is a part of huawei's new smartphone. they want to increase sales in china. pretty clever, using an app to get more customers. is a gateway.

they say it is a must-have for editing photos and videos. they hope people will stop buying their cameras as a result. check out the picture. you can see what wall street was talking about years ago. you thes come down, but video as a lot of sports cameras enthusiasts posted their videos, but now it appears to be a camera company that has had trouble with sales, 18% of the revenue comes from this. they said, let's integrate this app with the huawei phone. it will raise the presence in asia and perhaps raise the sales, which certainly, if you look at the latest stock price or gopro, it could use the boost to the bottom line and price. yvonne: tell us more about the partnership with huawei. is this about selling cameras? su: that is what they need to do, but the design is about brand recognition.

,f we look at the china market many say, will chinese customers $500,ling to buy $300, or when there is so many other cheaper prices. 170huawei, it sells countries, so it is a positive partnership for gopro. many say it the strength of this , the bright spot which should be the global sales. take a look at this bloomberg chart. it shows the global sales for now. the upward line is america, down from its peak, the bottom line is asia-pacific, not a big piece of the pie. back to you. betty: chinese highrollers seem to be back in the cow -- in macau after the slowing economy. they are gaining revenue from big gamblers on the up. let's bring in a reporter.

good to see you. what about this chart? it is interesting you can see the relationship between where the revenue is going, but it is china property prices. as we seesuggests this surge in building prices in china, obviously investors with a flush of cash are heading south to macau. is that what is sparking the turnaround? reporter: yes, macau revenue has been in a big slump since 2014. we have seen revenue cut because the most sensitive to the anticorruption campaign, but since last august, the revenue saw the dropping, and the pricing started to grow even stronger than the mass market. one of the rain -- main reasons is china's second half of last year started to see some

recovering. the property prices are rising, and the industrial profits are improving. so a great number of the businessmen, who see more profits during that time, they came back to play. betty: the large chunk of operators are the biggest beneficiaries when the ip market recovers. have we seen the followthrough with that? true,er: ok, so yes it is the largest operators have been more than 20% year on year growth last quarter through the chinese new year. almost doubling the market average. actually gainn to such a great performance is since last year, a lot of the operators, junk operators have shut down the business because ofhe market to tuition. so there investors turn to

invest more money to the larger ones were still doing business. with more liquidity, they can get, they are able to attempt more vip gamblers to come back to macau. notne: so the vip growth is sustainable, or is it more prudent for them to focus on the mass market? daniela: that is a good question, because the market is not sure is how long the recovery will last. the big question marks remain on whether china will tie in the policies related to capital outflows and property markets. for now, the macau casino operators, including local crown, are still focused on emphasizing the long-term focus on mass-market, even seeing the drop in economy in macau. betty: one of the world's top soccer clubs is ramping up investment in china's young

players. we speak to barcelona's president about his goals in asia. ♪

♪ yvonne: this is daybreak asia. betty: spanish soccer giant barcelona will open its first football

barcelona will open its first football academy in china later this year. it will be -- [please stand by] in this case, the idea of principle is to bring to the young people in china our concept, our love of football, teach them how we think football should be played, because the way we play it is quite different from other teams. we want to bring this knowledge to china, but the objective is that in a few years, the players that play the super chinese league could be born in our academy. we want them to come play to europe. it would be really something. it would be an objective, but it is not the principal objective. the first one is really to teach the young people from 8, 9 to 18 years old from china the go to our academy to really teach them about our football. much: china is putting so

effort into this industry. how long will it take china to catch up to the level of european football? josep: football is not easy today. it is very tough. official football even for us, sometimes it is difficult to compete with other european clubs. so i hope it will be a short time, because it means the object of the chinese is accomplished. i really like the idea the version of china republic said about putting football, making football to society to the young people and making china a big football country on football, which isn't easy. , it wouldes quickly affect world football. shery: we are seeing more and more players move to china because of wages. is this a new trend? josep: wages are going from some

clubs in europe. not all of them, because in china probably they have more economic capacity sometimes. but wages aren't everything. wages is something important, but in the end for the player, most important you can say, the project of the club, players look also have various projects where they can win and win titles. they can have the glory. at the end, not always is money. shery: is the arrival of china putting pressure on your wages? josep: no, no. the wages in europe, you can imagine there are clubs, not our case, because we are a club person, because we are a social club. we are very open, very transparent, very democratic decisions. so everything is very clear, and

we cannot sell chairs. but you have in europe experiences like a city or pse board chelsea or other clubs -- or chelsea or other clubs. they cannot compete clearly on high wages. shery: how big is asia in terms of your revenue? josep: i don't know exactly the percentage, but it is a fast-growing area for us. we are growing very much in asia. we have new agreement with a lot of projects to do. we are new with schools not only the one here, the biggest one, but also other schools we are promoting. the growth is very, very high. we are confident in the future. betty: that was the president of barcelona football club speaking to bloomberg's shery ahn. let's talk about the stars on oscar night. hollywood's brightest and best walking the red carpet.

the musical love story which has had all of the buzz, la la land, leads the way. oft is 26 nominations ahead the paramount movie. betty: i have not watched that. so interesting about amazon, earning its best picture nomination. one of six spot for manchester by the sea. it sort of just shows you that it is heating up. we are not watching all of the best content not just on the big screen or on the tv set. yvonne: absolutely. plenty more to come on markets. stay with us. ♪

♪ it is 9:00 in hong kong, 8:00 p.m. in new york. i am haidi lun in sydney. this is "bloomberg markets: asia" ♪ haidi: japan leads the asia-pacific down at the start of the week dominated by speeches by president trump and janet yellen. china opens the door to more ipos, dismissing concerns that a wave of new shares could depress the market. headlines, but the catalyst is not smart phones as the