♪ >> oil producers consider extending the output cut commencing more time is needed to drain the global inventory glut. about openingsks in the chinese economy, but there is a caveat. lashing out trump at senior republicans, blaming them for the failure of the health-care care bill. what is next? >> hong kong's next leader plans to tackle the cities growing divisions. she won an overwhelming victory.

we will be live in beijing to discuss the latest comments from the pboc governor, and in singapore for the latest opec meeting. we are asking, what is next after that health care build the feet. tax reform, building the wall, also a big week in the u.k. as brexit begins. liveis "daybreak asia" from bloomberg's new york an asian headquarters. just after 7:00 a.m. and hong kong. it will be an interesting week for markets. we see a trump administration pivoting away from health care to tax reform. >> that's right. donald trump had his reputation at stake. he came into office with, i am

the dealmaker and i will make the deal, and the first deal broke down amid politics, so can he get more done. as you mentioned, tax reform at the top of the agenda. ,ood for investors, by the way also revealing his new plan for the wall on wednesday. >> it will be a busy week. let's look at how things in asia are kicking off, a decent quarter for asia ex japan. .3%,w zealand, shares up the key weak dollar seeing gains. on thesee the dollar verge of a racing those gains after the u.s. election. australia, the sydney open, .05%.re on stocks, down the key thing to watch is crude. opec is eyeing extending cuts

beyond june. crude is $48.18 a barrel this morning. we count on the open to japan and korea. 110ar-yen strengthening .6% point 67, bringing us back to november highs for yen. it looks like an ugly day for stocks in tokyo according to chicago futures. look at what we can expect in the region. it looks met in terms of how we gauge how this will play out and how washington will dictate markets. >> that's right. can we pull up in my terminal? let's look at what has been happening with the u.s. dollar. it continues to be on this slide. you can see on the right-hand do with thisto concerned about whether trump

can get any of these policies through. that will likely affect sentiment as we open for trade in the u.s., the dollar sliding today, likely to see red across the board. don't quote me on that. >> we will not quote that. there is a lot of fed speak as well. if we do see more hawkish against, that will play the dollar. the central bank governors saying it is gearing up to open it sector, but depends on how other nations treat chinese investors. tom mackenzie has the details. talking about liberalization, but with caveats. tom: that's right. some interesting lines coming ,rom the central bank governor

taking a line possibly from donald trump, saying we are looking to open up the financial sector, but want something in return. insurance, banking, investment ies, areas where we could see liberalization, but access for investors looking abroad. itsaid when china opens financial sector, we want to get access to better treatment for private investors and other countries. so very interesting lines there. it is a change in tone because we have heard chinese officials talking about the opening up of financial sectors and other this as talking about an organic process, but something that will happen. we heard him talk about it at link, bondnd exchange, foreign invested ipos, so it is a township.

also talking about china's role in trade saying they have a number of deals they are talking through and with their colleagues about. , the asianut rcep regional partners, japan, europe, u.s., bilateral treated.t cheate -- 3-d. he says he wants more consensus when it comes to trade issues. example of china trying to gain leverage ahead of talks in the u.s.? tom: it could well be part of bring incentives, but also pressure points when it comes to tougher talks with washington, with the u.s. they have this bilateral trade investment treaty, but washington has been drawing up their policies for china. we don't know how they will push through and enact some of the rhetoric we have heard him a but clearly china is preparing for these talks. it has a list of pushback items in its back pocket if terrorists

are imposed. this is another area where we can talk about these areas, but we can help your investors get access to our financial sector, but it will involve give-and-take as well. that is interesting in this context, but we know chinese officials have some gripes about investors looking to buy high-tech industries abroad have been pushed back and have faced barriers. you have the example of the german semiconductor maker that was blocked. chinese investors wanted to buy and president barack obama brought that towards the end of the year. the chinese say that committee for foreign investment is using politics to bar chinese investments in the u.s. this is a concern they have in europe as well. also saying they want to create a clear playing field for foreign investors looking to invest in china, something welcome by the europeans and americans, the european and

american chamber of commerce have long complained that there is not a level playing field in china for foreign investors to sell it looks like a bit of tug-of-war over the issues. financial sector opening, but at a price. a big price. tom mackenzie there in beijing. let's get to first word news with paul allen in sydney. the new hong kong chief executive says her priority will be to address the growing wealth and political division it in the city after her emphatic victory on sunday. she received 67% of the vote from an elite representation of political and business figures. her critics say she is too compliant to china's wishes. the civil servant is the first woman to be chief executive. opec an independent oil producers are considering an extension of output curbs, sank more time is needed to trim the global glut. five members of the cartel plus

extension of six months after the current program ins in june. talks in kuwait were assured the level of compliance and current restrictions is high. russia,e moment in among our corporate's, we are seeing all companies conforming with the obligations. it looks like all the companies want to show commitment and don't want to stand out among the full group which is performing. profits will says double in the first quarter as crude prices and demand stabilize. that should bolster plans to boost spending this year by 44%, the first increase since 2014. the refiner reported full-year billion --of six $.8 $6.8 billion. its ipo could raise $10 billion. property developer, a 16% jump profits face and

ownership battle. net income rising over $3 billion. management says it faces unprecedented uncertainties. chancellor angela merkel has strengthened her position ahead of september's general election partyer conservative cdu winning a regional. the result is a disappointment for the new social democrat leader, whose party saw a jump in the polls when he took over. increased its share of the vote from 35% to 40%. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> president trump has attacked republican leaders for the

failure of the bill to replace obamacare, criticizing conservatives in the house who oppose the bill because they said it does not go far enough. if you look at this bloomberg 7124, the dollar took a dip against its g-20 peers after leaders canceled the vote. can you take my terminal looking at the u.s. dollar-yen trade, the dollar right now continuing , partly here based on based on some of this news. our politics reporter has been tracking all of this. how does trump pick up the pieces on this? does he have a lot less credibility or little less credibility going into tax reform this week? >> it is a huge defeat for president trump. it is his first big initiative out of the cave as president. at this point, it is usually a

honeymoon where presidents are given deference. they usually have latitude and credibility to push things, but yes, it is a defeat and does bode ill for future initiatives he tries to get through congress, including tax reform. they are trying to use as some a maneuver that they used on reform,are to do tax and it is also complicated and there are winners and losers. the last time something like this was achieved was 1986, so this is a once and a generation thing and a very heavy lift. wast shows how health care seen as this litmus test of how cohesive the republican party is , and a reality check of how the political process works, so what does this mean for trump and republican leaders now? means they have a new dynamic on their hands, and it is a reality check on how difficult it will be to get

things done because they control the white house and both chambers of congress. there are major divisions within the party. speaker paul ryan is dealing with the dynamic with members on the right flank pushing things in a conservative direction and are not interested in compromising. he also has moderates flexing muscle, saying we will not go along with these hard right bills because this one faction wants to come a so it is a big governing challenge for a party that has been in the opposition of president obama for the last eight years and has gotten good at obstructing and opposing and making their case for what they want to do. now that they are in power, they are realizing it is much more difficult. >> thank you so much. it is essential that opec extends as production cuts. >> plus, china champions free visits newemier li

zealand after his australia trip. we will look at what is on his agenda next. this is bloomberg. ♪

>> this is "bloomberg markets: asia." >> china's southern has confirmed it is in talks to sell estate to american airlines. shares resume trading later today. it had been suspended since lindberghfter reported american was preparing to make an investment of $200 million. >> toshibas nuclear unit is prepared to file chapter 11 bankruptcy. shares soared.

toshiba has said the board will make the final decision. the u.k. government says facebook should open up rate for encryption for whatsapp. home secretary amber rudd told the bbc that it is completely unacceptable that messages can be open. she has called internet executives to a meeting this week. trade is on the top of the agenda during the chinese premier's visit new zealand. it isxt guest says essential for emerging markets to promote trade. the world's vice president for the east asia and pacific is joining us from: poor. i can't help but note the irony chinesecontrast between

premier li making visits around asia talking about integration while this week in the u.k. that -- they will be talking about leaving the eu, this long-standing integration with the various countries, so let's tackle first the premiers trip. that trip atermine success. what have you learned from him visiting austria and now new zealand? you very much think we have to take his trip in the hasext of east asia, which benefited significantly from openness of trade integration. this has been one of the key drivers of the success of the region. , continued focus on trade, integration will continue to be important. i think all the countries are committed to it and we have seen

in what premier li is doing in new zealand, malaysia, thailand, they will have to continue the same focus. we are showing some pictures i and wellington speaking to reporters right now. i'm curious from the u.s. side of things where we sell donald trump come out of the gate very very forceful on protectionist policies, it seems like he will be distracted on health care reform, tax reform, and the wall. is that a blessing in disguise perhaps, that rejection is policies might fall lower down on his priorities? fromll, look, i think atre we sit, we are looking our client nations and discussing what it makes sense to do in the current context. these countries know the

importance of trade and integration. they have benefited from it, and they will continue to pursue their agenda, including continuing to find opportunities to integrate, to do more with the u.s., to continue to receive american investment, to trade with the u.s., and that is an important thing to focus on, so these countries are committed to isan through what premier li doing in new zealand, to find opportunities to trade, to open up, to be competitive, to increase productivity so that they can secure their future and make progress in achieving the objectives of becoming high income countries. ask regarding to the trade deals we have been .alking about, this loss of tpp how significant is that to this part of the region? deald we expect this rcep

preferred by china is going to go through? >> well, look, i think tpp took a long time to work on. tpp is a 21st century trade agreement. trade toeyond just several elemental structural reforms. those reforms continue to remain with or without tpp. our advice to our clients in east asia is to continue to pursue the reforms envisioned in the tpp and find opportunities to continue to integrate within rcep and within asean. there are several opportunities that can be considered that will move along the path of openness and integration. before you go, i am curious

about some of the increased uncertainty in the u.s.. it seemed like a surefire thing that we would get more rate hikes. it still looks like the fed will continue to raise rates, but given the government uncertainty, we don't know where the dollar is headed next. how is that going to possibly destabilize some of the markets in asia? you rightlyk, as said, we are working in the context of uncertainty, and in a context of uncertainty, what countries have to do is strengthen their resilience, really improve their macroeconomic buffers, create space for them to be able to respond if shocks occur that they had not anticipated, so what they need to do is continue to focus on macroeconomic stability, fiscal consolidation them a fiscal foreign-exchange their exchangeed

rate policies well, give themselves the room to adjust exchange rate so that they can respond to unanticipated shocks, work on their financial sectors so that their balance sheets are stronger, and you have a whole series of measures that prepare for whatever outcome they see on the financial and international markets, so as a message and the key for them is to strengthen macroeconomic management, build their reserves, build their buffers, and be ready to survive any shocks. >> thank you so much. victoria kwakwa, the vice president of the world banks in east asia and pacific unit. you have some breaking news. absolutely, we are learning they are looking into a hong kong listing, a $2.12

billion ipo, and we will learn more details on what is plan here. plenty more to come. stay with us. ♪

>> hong kong is to have its first woman chief executive. rosalind chin has been following the election. winningee carrie lam the leadership vote with overwhelming victory, but did lose the popular vote. rosalind: that's right. votes from the select people voting in the selection for the leader of hong kong. polls conducted in the run-up showed the other front runner was more popular amongst the general population. that did not count for a lot in

this". china has congratulated carrie lam, although china studies to formally approve her appointment. by china does not necessarily bode positively for carrie lam because there are increasing concerns in hong kong encroachment of china on hong kong's affairs. recognizes the divisions and frustrations in hong kong society and says she will try to work to ease these moving forward. there is a lot of discontent bank to the increasing wealth gap and surging property prices, property being out of the reach of many young people. she has promised to focus on boosting the economy. she has a projected cash surplus of $12 billion for hong kong in the current financial year, so that should help her, but she said she will not look at electoral reform. >> thank you so much for

bringing up for us. up next, an alliance in the air. american airlines and china southern shaking hands. this is bloomberg. ♪

♪ 7:30 a.m. monday, 30 minutes away from the major market open. betty: very crystal-clear, unusual. things are turning up. sunday evening here in new york, markets closed mostly down on friday, getting back. a bit of a shocker, donald not getting the health care reform it is nowngress, and moving on to tax reform. i am betty liu in new york. yvonne: i am yvonne man in hong kong. you are watching daybreak asia. betty: you mentioned earlier the

headlines, this still company seeking a $1.2 billion a share hong kong listing. it looks as though cornerstone investors, dodging international asset managers. 84a fixed offer price of $15 for each share -- $15.84 for each share, how significant is this for the ipo market? yvonne: looking at the size of the deal, possibly one of the biggest we could see coming in from hong kong so far, interesting on securities, the , thet company international company may made headlines. the chairman was missing, confusion with stock prices, so interesting to see how this will perform. this is looking to be like a big

ipo for the city. we will continue to watch those from longtime do not -- paul allen. says the pboc governor china is preparing to further open its financial sector but that will allow investigations on how other places treat china. areas of potential liberalization including banking, insurance and payment systems. chinese investors must be to reading better in overseas. outident trump has lashed over the retail -- the failure to replace and repeal obamacare. some conservatives said it did not go far enough. he blamed democrats for the failure but has tweeted criticism of the freedom caucus and other right wing groups who oppose the bill. the australian government has ordered the competition watchdog to conduct a review of

electricity prices. they will examine the behavior of car companies and contracts of residential and business customers. --hael trimble -- michael the prime minister said it should not be bad. findings in six months. -- thisll leave brazil is 20% of beef exports and 40% of chicken. they have been accused of bribing health inspectors for the tainted products. the brazilian agricultural ministry said they will meet authorizations from approved slaughterhouses. australia will see its worst storm in several years. the typhoon is going to reach category 4 in greensville. low-lying areas have been told to leave their homes. folk -- forecasters say it is

one of the most significant since another one devastated sugar crop in 2011. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: let's look at how the asian markets are shaping up. sophie: let's get a quick reminder of how the benchmarks fared in asia on friday. we did the it slide the most in over a week. that was after the initial delay in the u.s.. after it was pulled from the floor, we are looking at a muted start, taking a look at how markets opened so far are faring. let's zoom in with what is going .n with the asx 200 we have aussie stocks snapping arise. we have materials and financials the biggest drag on the benchmark, gold miners gaming with gold back above 1250 an ounce.

we have the dollar opening higher. this is a broad dollar weakness because the obvious shrugging off a slider that we saw in iron ever amidorst concerns that it is looking more vulnerable. things for aussie dollar traders to watch for, china manufacturing. we have new zealand stocks up 0.1%, and the kiwi rising for a third straight day. we have the chinese premier meeting with the english minister -- of the prime minister english. look at how futures are looking in the rest of asia. they are looking at a mixed start, muted start this monday here. this was from investors, health care bill pulled from the vote. they are expecting losses to be shallow here in asia with the focus turning to tax reform since we have that on trump's

agenda. we have stocks elsewhere in europe looking weaker, but let's take a look at how asia is looking out. we have the yen picking up strength. get one point it touched the 110 level, and futures also falling down 0.7% at one point this morning. take a look at yen strength, trading at its strongest since november. the dollar bears, they went to the end of the proxy around the sentiment around trump agenda. betty: thank you so much, sophie kamaruddin. that is how the asian trading day is shaping up. what should we be watching for here in the u.s. as the new trading week gets underway? we are seeing a significantly weaker dollar. trading now here is su keenan. su: that is related to the trump confidence issue, but let's get to tax. tax veterans with influential

new york-based paper said that alibaba and tencent definitely could capture at least half of the growth in the simtech market in china, 60% of levels. those stocks get a bump. if we go to be tv #4924, we take a look at samsung, which on wednesday is out with its brand-new galaxy s 8, the new smartphone launch. this is a chart of the percentage of apple by market cap. it is down but coming back. they are on the rebound. as they do this launch, a lot at stake because they have to come back from what call the disastrous launch with the last smart phone. there was a recall involved. should they be able to wow the market with a new phone, they could recapture. you have -- yahoo! is up, and barons said they could add 20%

gain because of liquidation related to their deal with verizon, and that is something investors may look forward to. and they are certainly looking forward to that. trump, i don't know about looking forward, but a lot to watch out for with the wall, him unveiling the wall on wednesday, but also of course tax reform policy. su: more on the economy. we know he is focused on that. we are likely to see moderation and consumer sentiment coming in strong, which trump may take reddit four. 6964 shows us his approval this. has to do with we look at the travel ban, proposal, now the denial of his move to throw out obamacare.

all of that weighing on the president as he presents the border wall, and out many say his supreme court nominee will be challenged as well. betty: and we learned about a potential big deal in the airline industry, southern in talks with american. su: china southern making a the stock filing with exchange. they would need a $200 million infusion by american airlines, who reported this in terms of investment. it will add to americans presence in china, a big extension for that with their arrival delta -- there rival. yvonne: thank you. the u.k. president -- prime minister, theresa may gets ready to talk about brexit. they say it will come at the cost. we going kathleen hays.

she marks the time where it is the 60th anniversary of the treaty of rome this weekend, but not much of a celebration. there certainly was not on saturday, but theresa may will send the letter and trigger brexit. this wednesday, -- trigger brexit this wednesday. [please stand by] euros of that the u.k. have to pay first, that could be a big point of debate, the u.k. saying we want to keep them out of the report. back and forth that has always started on that, but younger is saying we need -- jean-claude juncker is saying we need to do this, so other countries that want to leave, they know there will be a cost.

this minister of sweden for trade and affairs, she said this could backfire, the ultimatums the u.k. is already putting down on brexit. better noheir mantra deal than bad deal is not such a good idea, and here is what she said over the weekend. she said the hard line will backfire, damaging the u.k.'s chance to get a good deal from the u.k. -- see you, and they and they cannot get the benefit without the cost. the leverage for the u.k. is they buy a lot of stuff from the rest of the e.u.. for sweden, the u.k. is the third biggest importer. so negotiations will begin, a lot going on. betty: they will want to keep

that going. are in the u.s., we speaking to fed speakers this week. kathleen: let's see what happens. lay out that. the result of fed speakers, 11. bloomberg television has interviews with three. we have jim bowler on friday, who i will be speaking to on friday this week, who said overkill. it might be overkill for the hike rate three times. on wednesday, eric rosengren has been making a lot of noise. .ommercial excesses he is saying the fed should get out in front of that. that is why he seems to think at least three rate hikes are a good idea. charlie evans tomorrow is speaking at a conference in madrid. michael mckee will be able to set down with him, who was in new york saying three or four increases. the bottom line is this, you

have the two sides represented on friday. jim bullard, might be overkill, the president of the fed saying we are going slow. gradual.e there is a chart on why there is a debate. this is 7123. we are seeing the growing gulf between consumer confidence and spending. the white line goes down to 0.2. that is the forecast for spending on friday. the blue line is the jump in consumer confidence, off of what donald trump might achieve. this is what we will be asking a specials -- the officials this week, how we are coming down on this debate. betty: that will add more mystery to the outlook. kathleen, thank you. cap bring the central bank -- covering the central bank for us. draining the glut. white mckenzie thinks -- why mckenzie thinks opec will have

to extend the cuts. this is bloomberg. ♪

♪ we are counting your down to the first major market open this morning. japan futures not looking good. 110 .51.llar-yen at we see strength in the japanese currency as the dollar continues to take a dip, erasing gains we saw since the u.s. election. i am in on man in hong kong. betty: the markets looking like the weather in singapore. i am betty liu in new york. a look on the business flash group is, china's hna buying a 20% stake in american massive -- asset management that is topped with the $3 billion since the start of 2017. we are pint -- the first is 10%,

completed in 30 days. is broadening its portfolio beyond tourism. yvonne: setback between china and hollywood. the film brothers remain optimistic. they will renew robert simmons ftx entertainment. they will co-distribute ftx thes for next year, but companies are discussing further collaboration. >> we would like to renew and deepen our cooperation with stx beyond slick financing. they have a lot of plans in tech -- television. they have a lot for the asian market. there is a lot of contact in this regard. let's stay on media. another beautiful box office for disney with the live action beauty and the beast receiving number -- number one spot.

the lions gate power rangers took $41 million, and the remake of the 1970's tv series chip, disappointed, making less than $8 million for seven. a walk through my childhood. yvonne: i watched the beauty and the beast, loved it. played the soundtrack all weekend. let's get back to the market, analysts not expecting opec and theirrtners to extend output curves. take a look at the chart, g #btv 706, you can see why opec cuts are being counted by u.s. stockpiles, swelling to record levels. you can see the yellow line, the drawdown in production from opec, not really stopping u.s. shale producers. let's bring in a senior research manager with wood mackenzie to

talk about this. u.s. stockpiles at records, prices below $50 a barrel, is opec left with no choice but to prolong the cuts? opec, theve with production cuts, with a meet in may at the ministerial meeting, we will have -- we had a meeting yesterday, there were two things, one, strong levels of compliance with production cuts from december 2016 presidential levels. -- production levels. the committee is willing to the very -- to deliberate to roll over the production for other six months than the meeting in may 2017. we strongly believe that they will meet to roll over production cuts in six months without that.

we see a significant stock bend into -- in qe and q4. yvonne: what does this mean for prices if we continue to see the prospect of further cuts in the second half? well below 50 right now. if we start to break through 60? pricewe look at the oil for the supply story, we see demand fundamentals remaining. we see oil demand growing 1.4 million barrels per day, but the key is supply and what is opec going to do to sustain the market balancing act. with the assumption they will roll over the production cuts, we see oil price above $80 per barrel for 2017. they are even reaching $60 to the end of the year. betty: i want to pull up a chart

for the viewers that looks at one country's very significant demand for oil, talking about china here. you see the chinese importing the most, as you can well imagine, from saudi arabia eerie that is the yellow line, and the aqua blue line is russia. gold is the white line. saudi arabia is leading the way in terms of exporting oil to china, but since the beginning of the year, demand has waned quite a bit in china. do you expect that to continue? had low numbers from china in january, but pmi has been about the 50 mark. we see some kind of upside to the easing of demand. we see china, india and u.s. as three strong pillars of demand

growth. we see china cooling about 350,000 barrels a day. betty: there may be a weaker pillar in the u.s. or in india. who will really help bump the oil prices? u.s. we have a strong level of consumer demand coming from the u.s. in the case of india, there is some sort of impact with the day monetization -- demonetize asian announced, but we see the growth levels. it may be slightly lower, but it is a growth story, oil demand growth. thank you so much. the asia refining senior research manager at wood mackenzie. you can get the roundup of these stories to get your day going in today's addition of daybreak. bloomberg subscribers, go to

this function. it is also available on mobile in the bloomberg anywhere app. you can customize settings to only get news on industries and assets you care about. this is bloomberg. ♪

♪ yvonne: there is plenty of big stories coming up this week, and we are covering them all on daybreak asia. we are talking to a big line of guests at the credit suisse annual asian investment conference happening in hong kong over the next few days. i will be there over the next two days. we have the welcome address on monday. that man will be joining us on bloomberg television on tuesday as well. we are looking for samsung on wednesday. they will introduce their latest

smartphone, which they hope will revive their fortunes after the note 7 debacle. there is a great amount of resilience given the note 7 debacle and this trial with the chairman jay y. lee. trade, the target price versus the current trading price. you can see it has been relatively very strong for the most part. we look at september, the note 7 debacle happened, there has been stuff, but also in the green. betty: and on wednesday, brexit. that is when theresa may, prime minister of the u.k., is triggering article 40 to start brexit proceedings. i want to show you a chart that demonstrates as you look towards the left of this chart, how the ftse 100 -- the ftse 100 and also the msci financial index

are starting to trend lower from nervousness in the market as brexit is becoming more and more of a reality. the pound, the blue line down at the bottom, has been picking up, of that is part of an effect dollar weakness we have been talking about that we see today. don't look too much into the pound movements, more of the nervous sentiment from the stocks and financials. the question is, what do the london banks do now that brexit is upon us? what else? the open in south korea. sophie kamaruddin has more. sophie: there has been a lot of speculation around the bankruptcy of toshiba. that chapter 11 was filed march 28. lotte group is said to's but

several things with operating. it is said to have operation hope for china. that is what we are watching at the open. this is bloomberg. ♪

♪ >> the yen is strengthening, markets are wary, a weak of fed speeches and data from china. >> oil producers consider extending output cuts, saying more time is needed to drain the global glut. >> the world's largest refiner hopes to benefit from stronger prices. sinopec forecast profits will double. >> hong kong's next leader promises to tackle the growing division has carrie lam won an overwhelming victory. >> this is the second hour of

"daybreak asia" coming to live from bloomberg's american and asian headquarters. >> it is just after 8:00 p.m. in new york. it is a packed week ahead. we need to get through some of the news events likely affecting the asian market open, including what we heard of opec. is looking to extend production curbs in the second half, also looking at washington with this health care bill that was scrapped, and now the government, the trump administration, looking towards tax cuts. how will that play in asia, in particular with the japanese yen? high, ago from higher too it really affecting market sentiment this monday morning. let's get the market open with sophie kamaruddin. sophie: the yen on the comeback trail, building momentum for the

day, pressure on japanese stocks, the nikkei 225 halting a two day rise. coming online weaker. it did fall on friday, but still a top performer in asia with just the nifty outpacing gains. in tokyo, we are keeping an eye on pharma stocks after the u.s. congress failed to push through that health care bill. if we look at the nikkei math, health is down .4%, all segments in the red with financials leading the drop, 1.3%. ,et's switch over to the kospi that stocksn update

with excessive increases in short sales transactions will be banned from trade the following day. there is a backdrop of political turmoil. local media reporting that a special prosecutor is to decide early this week if they will torrent forst former president park. lots of speculation, we were talking about the potential bankruptcy of toshiba's westinghouse unit. it could, as early as tuesday. what is the latest? sophie: it could, as early as tuesday, this according to the nikkei, so toshiba stock up through friday, and now extending gains up 1.1%. we are keeping and eye on

lotte group shares. the stock in focus, looking to perhaps split units into operating companies and holding companies. , extendingndai motor its drop for a third day. it is halting operations in china at a plan. a unit of hyundai motor would develop its own automobile chips under the deal. three chipmakers will design and produce those chips, so we will see if that has any spillover affect into chip stocks today. >> let's get to first word news with paul allen in sydney. president trump has slashed out at republican beaters for the failure of the bill to repeal and replace obamacare. the legislation was scrapped on friday after some conservatives said it did not go far enough. the president initially blame democrats for the failure, but of the tweeted criticism

freedom caucus and right groups that oppose the bill. an independent oil producers are considering an extension of output curbs with six nations saying time is needed to trim the global glut. the five members of the cartel support the extension. kuwait saying it should be six months after june. the talks in kuwait ensure the level of compliance is high. >> at the moment in russia among our corporates, we are seeing all companies are conforming with the obligations which they installed upon themselves. it looks like all the companies want to show commitment and don't want to stand out among the full group, which is committed and performing. >> chancellor angela merkel has strengthened her position with her conservative cdu party easily winning original boat. the result is a disappointment

for the party who saw a jump in the polls. cdu increase its share from 35% to 40%. carrie lam received 67% of the votes from an elite representation of political and business figures, although critics say she is too compliant to china's wishes. the civil servant is the first woman to be chief executive. includes inclusiveness, freedom of the press, and our speech, respect for human rights, and systems which have taken generations to establish, such as the independent judiciary, rule of law, and clean government, matters that we hong kong people find precious and are proud of. as your chief executive, i shall do my utmost to uphold one

tontry, two systems, and guard our core values. paul: china's third brokerages seeking to raise 2.2 billion through a listing in hong kong. offer junan is looking to one billion h shares at a fixed price of $15.84 hong kong. includeone investors several entities. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. forecast a doubling of first-quarter profits on higher crude prices and stable demand. let's bring in china mckinsey. he has been following this for

us. the first profit gain in three years for sinopec, what more do we know? increase 150%e to year on year in the first three months. crudeoint to higher prices and stable demand in china. that demand has picked up 4% in the first two months of the year. you can look to the real estate and industrial sectors for reasons for that. it is looking like a stronger picture for sinopec. does this stronger net income is support this plan, ,ecause it does plan to spend increased spending by 44%, the first time it has increased in four years. we got more details on its 2016 numbers, profits rising for the first time in three years, help to buy margins amongst the refining sector, also the sa lines, and they

increased their dividend for 2016 as well. >> is it a similar story you are seeing out of the other big oil companies like cnooc in china? tom: it is a mixed picture. cnooc are also planning to raise spending around 40%, so roughly in line with sinopec, but in fact they posted the worst results ever on thursday, then we have petrochina, that is one to watch because they will post the results on march 30. sinopec is one of the top three, ahead of these guys because of its refining is this, so it has benefited from the cheap crude prices. analysts is if prices rise to much and too quickly because sinopec would benefit from the upstream business, but likely to offset the downstream parts of its business if those margins became tighter, so that is a key risk according to analysts. another area to look for for

sinopec is they may require this plan for an ipo of their retail business. that could be worth around $10 billion. bloomberg notes they have been reaching out to banks to potentially work on that part of their ipo. >> thank you so much. tom mackenzie there in beijing for us. looking ahead, the french president on a singapore stopover, boosting international relations on his farewell foreign tour. advice from arket quarry securities at the start of the big week. this is bloomberg. ♪

the businesseck of flash headlines. china's southern has confirmed it is in talks to sell a stake to american airlines. shares will resume trading in hong kong later. sinceave been suspended

thursday after bloomberg reported american was preparing to make an investment of $200 million. sources say it will be through china southern's h shares and give american a nonvoting seat on the board. buying hnh group is estate in an asset unit, adding to a shopping spree that has top $30 billion. it is paying 436 million in two parts for the state in om asset management. it will be completed within 30 days. a is broadening its portfolio beyond tourism in aviation. the u.k. government says facebook should open up encryption of whatsapp to security services. british newspaper said the man who killed four people new parliament used to be messaging service shortly before his attack. home secretary amber rudd told the bbc it is unacceptable that messages cannot be open.

she has called internet executives to a meeting later this week. the so-called trump trade has faltered in march, the dollar retreating, the s&p 500 heading for its worst monthly loss since october. let's get to our next guest who says the key lies in china's stimulus. joining us now is victor svets. always great to have you. to be seeing markets as well as the trump administration focus away from health care possibly to tax cuts. this willhis seems speed up tax reforms, or our markets going to be less forgiving now that we see a clear indication of rejection and health care? >> i think donald trump will not succeed in tax just the way he did not succeed in health care, just the way infrastructure investment and boost will be nothing at all. i still believe that americans will be spending more on

thanween suits every year incremental infrastructure investment will come through. i am not suggesting every part of the reform is dead, tax reform could be good, but where do you find the money to finance it did anything to do with the border adjustment tax is against the essence of the u.s., cheap money, and cheap goods. goesorder adjustment tax against both, so if you don't find money to replace the money you might lose through the tax cuts come of the tax cuts are going to be minor, and even if you cut to 25% tax rate come s&p 500 or the entire corporate sector and the u.s. is not paying much more than 25% anyway. >> asia waking up to all this of course. we see a remarkable quarter, the best in half a decade. does this derail this reflation trade we see in this part of the world, because we did see the economic fundamentals improving, but is anything a boost from the

u.s. going to derail that or not derail that? >> who can stimulate in the world, only china. the reason china can stimulate because whatever they do is large, quick, and brand-new money. anyever the u.s. does or western country, it is small, spread out, and borrowed money. if you borrow money, you are crowding out other investment opportunities. country is the only capable of stimulation. they are already responsible for two thirds of credit creation in the world. 80%-90%.rate sector is if china was not doing it, the world would have collapsed, so the u.s. does not make any difference to the picture whatsoever. becomes china does not stimulate every month. there were only three reflation ary ways out of china since 2008. will china stimulate, tighten in 2017?

stimulate, they shorten their own life span, so they know the price they are paying, so will china's to relate only when things went bad ? with they stimulate precautionary? will there be enough growth on a global basis to keep rolling in 2017? i think donald trump in the u.s. will make little difference to this picture in 2017. >> i want to pull up a chart viewthat shows a favorable on asian companies, excluding japan. the forward pe represented by the blue line here, now picking up. it seemed to have bottomed here at the beginning of 2016, so it looks as if investors are becoming more attracted to these companies, and their value is going up. why do you think that is? >> reflation.

basically the more reflation you get, the more stimulus you get, the more growth you get, the higher supply of u.s. dollar to the global economy, lower valued u.s. dollar as a safety, u.s. dollar comes down, emerging markets get reflected on demand and u.s. dollar, and that is what you are seeing right now. that is white emerging markets outperform develop markets 8% year to date. going forward, it all depends on china, the u.s., as well as capacity and supply issues. what will happen if china does cut capacity? what happens if opec cuts capacity? suddenly you have another commodity reflation. the problemagainst of demand. in other words, commodity prices will become too high because of weak demand on a global basis, so that is quandary right now. if you look at emerging markets,

i would expect emerging markets to perform worse as we go through the balance of the year than the early part. my view was we will start 2017 with the help of reflation, march to may, a stagflation area scare when cpi goes up, then we will end up in this-inflation again. >> so given that scenario, argue i buyer -- are you a buyer right now, at least for now? >> we are basically saying the like emerging markets that are local, liquid, and have a lower external vulnerability, that puts us in india in the philippines, china, taiwan, rather than indonesia, malaysia, thailand, brazil, south africa, russia. p back and say reflation will go on, clearly you should double down on brazil, south africa, because that is where you get the biggest bank for your buck.

emerging markets are not extensive, still, even at the current level. on, emerginggoes markets will outperform by at least 30% to 40% is develop markets as we progress through the year. it just does not happen to be my core scenario. >> what does that mean for dollar? we are seeing the focus away from pro growth allis he's and repricing of the fed's, so where does it go from here? >> number one, inflation, in the high growth, u.s. has a current account deficit, no matter what donald trump would like to have. the supply of the dollar increases, the safety value declines, disparity of interest rate declines, u.s. dollar depreciates, euro and yen in peru. if you say we have passed the reflationary peak in february-march, from now on dis-inflation will get stronger, and that should be a recipe for stronger dollar and weaker euro and yen as we progress through the year. forictor svets sets us up

the week. always great to have you, macquarie securities. our interactive tv function, you can find it at tv . you can watch us live in see previous interviews and dive into any securities or bloomberg functions we talk about your day in and day out. you can become part of the conversation by sending us an instant message during the shows. this is just for bloomberg subscribers only. check it out at tv . >> that's right. sweden has a say over the brexit negotiations. quitting the eu will not be easy. this is bloomberg. ♪

>> i am if unmanned in hong kong. this is "daybreak asia". >> i am betty liu in new york.

as thes risk off dollar-yen 110.44 right now, certainly hurting japanese equities. the nikkei two to five down 1% right now. declining. and kospi >> clearly not a lot for the bulls to chew on. to come in the markets. u.k. prime minister theresa may, brexit, eu ministers warning it will not, without some costs come literally some money to be paid. kathleen hays is here with more. billwill be charged of before they talk about trade, right? >> that is what the eu is saying. there is a brexit bill, and it has to do with the cost, the

benefits the u.k. has gotten from being in the eu, and now an accounting of what they have to pay the eu back. before, sodone this it seems like it will be a bit of negotiation. theresa may will trigger the brexit bill, send a letter to eu in brussels. said it is auncker tragedy, set moment, but they are moving ahead and the brexit bill must be paid. they can't make it too easy. they won't want to make it seem attractive. so this is why the eu officials are pushing back. it is interesting come over the weekend, sweden's minister for eu affairs and trade, and this caught people's attention -- the ,wedes have been conciliatory not too harsh on the u.k. get can but this is what she said.

hard-line theresa may is getting ready to take could backfire win the u.k. officials say better no deal than a bad deal. they are damaging their chance to get a good deal. the eu is unified, so look out, and again they can't get the benefits without paying the costs. what is the leverage on the other side? , the u.k. is there a third biggest export market after the u.s. and germany, so it is going to be interesting negotiations. it will take a while probably. >> and the big question is one she does trigger article 50, the ball is in the eu's court. let's talk about the federal quick. a bit of the of fed speakers, including your interviews. >> absolutely. i will talk about that in a minute, but i want to set the stage. on friday, one of the people i'm going to interview, he said something that most fed

officials have been saying, especially since that march 15 meeting when the fed raise the key rate for the first time this year. he said he is not on board with a total of three rate hikes. ,e says three could be overkill while bill dudley of the new york fed says something different. while bullard said the fed does not need to be preemptive, look, it is a shallow path of rate hikes, aiming for a soft landing. he seems to be saying there is a good path for the fed to be on. let's look at this chart #7123. is thequoise line, that consumer confidence, which has bolted since donald trump was elected, then you have spending, set to turn down to 0.2% it we get that report at the end of the week. 11 fed speakers this week, three fed officials here charlie evans monday and jim bullard on

friday, so a lot of fed to digest. >> thank you. coming up next, continuing with the cuts, the growing calls for oil producers to extend production curbs. this is bloomberg. ♪

>> it is a: 30 in singapore, half an hour away from the opening of trade in the lion city, a beautiful day. "daybreak watching asia". let's get to first word news with paul allen. toshiba's unit poised to file for chapter 11 protection. the nikkei news tweet to the face of losses of more than $6 billion. toshiba shares soared friday on the growing belief that a westinghouse bankruptcy is an exceptional outcome. toshiba said the westinghouse

board will make the final decision. isc governor says china preparing to further open its financial sector, but doing so will involve negotiations over how other nations treat chinese investors. said areas of potential liberalization include banking, insurance, securities, and payment systems, but said chinese investors, particularly private investors, must be treated better overseas. sinopec says profits will double in the first quarter as crude prices and demand stabilize. that should bolster plans to boost spending this year by 44% come of the first increase since 2013. the refiner reported full-year net income of $6.8 billion. eyeing sinopec's moves for an ipo next year of its retail business, which could raise $10 billion. property developer china vanke posted a jump in profits as it faces and ownership battle. china's housing boom saw net

income rising $3 billion. vanke says management still faces unprecedented uncertainties after a small group emerged as its biggest shareholder in a move the company describes as hostile. china will lift its ban on meat from brazil later monday. brazil accounts for 20 percent of global beef exports and 40% of chicken. the industry has been accused of bribery health inspectors a win approval for the sale of tainted products. the brazilian agricultural le andry says chi egypt are following china. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am paul allen. >> thank you. time to see how the asian markets are shaping up this morning, the first chance to react after that republican health care bill was shelved on friday. let's get the rate is -- the

latest with sophie kamaruddin. sophie: let's break it down by segment. billsealth care failing to pass, so health care stocks falling. energy shares up a third of a as oil producers consider extending output comes and trump said to reverse obama's efforts to combat climate change. sentimenting bullish drying out. we had brent fall below $50 for the first time this year as the u.s. shale drillers ignore the drop in prices and add more rigs. this monday, brent and wti treading water. elsewhere, iron ore posting a record loss, miners falling and sitting -- in sydney. bhp and rio tinto tinto among them, offsetting gains in gold stocks, arise in prices snapping a two-day drop.

while resilience and austrian stocks are being tested with that slide, we will see if bears will mount to return. the fall through the 200 day moving average could indicate weakness to come, the yen strengthening against the dollar, 110.47, and the korean won rising to its highest level since october against the dollar. >> thank you so much. sophie kamaruddin with the markets. on, i know you have to step out now. , i know you have to step out. >> i have to grab a cab. this is what we are looking at. a lot going on here at the credit suisse asian investment conference. we kick things off with the asia

aipac ceo. last week, we heard this bonus pool being raised, but the falling forers credit suisse. we will see how that pertains to asia and asked how things are looking on the equity side of things, looking pressured as of late. to --p, we are talking about china politics. ahead to this meeting between president trump xi.president prolific come anticipated meeting we are talking about, but one of the biggest speakers when it comes to relations between the two. finally, this is talking about ,he fed speak, dennis lockhart formal federal reserve bank of atlanta president, retired last

month, but interesting to get his take on the recent moves from the fed. he was not a voting member this year, but was seen as moderate and bellwether view on what the fed is thinking, so interesting to get his take on what the future path of hikes will look like for the federal reserve. >> right, he may feel more free to speak about the economy and rates, so can't wait to watch those interviews. we say goodbye to you. thank you so much. in the meantime, let's move on to oil. independent oil producers considering extending curbs on output, saying more time is needed to drain the oil glut. we have the background from kuwait city, where the compliance committee met to assess the outlook for crude. the deliberations of opec's monitoring committee have come to a close. the group represented on the kuwait, algeria, and on the non-opec front, by

russia and oman. this was always going to be about the level of compliance. alliance 6% on the non-opec front lower at 64%, but they are convinced that this will come up very fast. they did cite some of the key challenges in global oil markets. at low seasonal demand, refinery maintenance come and rising non-opec supply clouding the efforts of this agreement and of the group. they are waiting for more data to make a call about a further extension, but what they have asked opec to do is to deliver recommendations about how they would like to go about that extension. on anrmal decision extension is expected on may 25 in vienna. has you heard, kuwait was the first nation to call for extending production cuts,

saying inventories have grown more than expected. are looking for is a five-year average of inventories. 285 above thew at five-year average, so once the inventory start going down, hopefully we we will go towards the five-year average, which we hope to reach at the end of the third quarter hopefully. is also backing an extension, saying it makes sense to add another six months. comes the spring when people starts to move a lot, gasoline demand, the refinery turnaround is over, we will see some positive inventory reduction as we expect. agreement inthis my opinion is highly likely that it will happen. it is needed as well. the opec secretary-general says he's he's a high level of compliance with

these cuts. >> i think we are all moving in the same direction from the discussions that have been taking place in's yesterday. to build on the momentum that has been gathered and the last two months, and from all indications, we expect to see a very, very high level of conformity in the subsequent levels. this will inform the decision on the duration of this decision. betty: maybe even 100% compliance. is going toong kong have its first woman chief executive. beijing's favorite carrie lam won sunday's leadership vote with a majority. rosalind chin has been following this election, and carrie lam doesn't seem to have the backing of the ordinary person, right? did get 67%rrie lam

of the vote, 700 77 votes out of the nearly 1200 people voting in this select election committee, a committee of elite business and political people here in hong kong. the poll conducted in the run-up comed the number two did out as more popular amongst of the general population, so carrie lam does look like she might have a difficult job in hong kong trying to unite the people together, but she will be hong kong's first female leader. china has congratulated her and said she is trusted by central government, although china needs to formally confirm her appointment. hong kong has a projected budget surplus of $12 billion for the current financial year, which will help her to boost growth by increasing spending and cutting taxes. and the current chief

executive officer a press conference and 50 minutes from now. betty: we will be listening about how she will approach these louder voices of pro-democracy in hong kong. how will she handle that? rosalind: we have heard in the last few years a lot more pro-democracy voices. this goes back to the protests protest centered around this 2017 chief executive election, but it is rooted in andes like the increase wealth cap, increasing property prices that make it difficult for young people to get onto the property ladder. this is what she had to say. >> my priority will be to heal the divide and to ease the frustrations and to unite our society to move forward. , unity must be built step by solid ground. it is through real work and actual results that i will us

bond to those who support me and garner the recognition of those yet to support me. haslind: so carrie lam promised on boosting the economy. she could be tested on her very first day in office. betty: she very well could be here thank you so much. rosalind chin in hong kong. up next, capital challenges, former u.s. commerce secretary tells bloomberg he is not surprised that president trump this finding restorations with washington. our interview is just ahead. this is bloomberg. ♪

betty: good morning. i am betty liu in new york. this is "daybreak asia". china southern and talks to

share a stake to american airlines. shares resumed trading in the next few moments after being suspended last week when bloomberg reported american airlines was preparing to make an investment of up to $200 million. let's head to our aerospace editor in singapore. what do we know so far about this tie up? is it a purchase of the stake or are there other elements to the partnership? purchase is one of the things that are being discussed between china southern and american. entail it will anything further, we will have to see. with a stake in the company, it would be obvious they would consider other types of partnerships for both of the airlines. betty: indeed, certainly expanding the networks for both of them. outside of the fact they get to access different hubs and expand

the net work internationally, how else would this benefit american and china southern? who needs this partnership more? >> i would say both of them. for american, it is an obvious oneer to them tapping into of the fastest-growing markets in the world, which is china. obviously with a stake in china southern, if will help american cement their foothold in china, so that will be good for american, but on the other side, it will be good for china southern because you realize that the chinese are actually trying to be aggressively expanding overseas, and obviously the stake with american will help china southern gain more exposure in the international market where it really wants to grow. betty: that's right, wanting to globalize these chinese airlines. thank you so much on this tie up between the two air carriers. a quick check of the business flash headlines at this hour,

the are strained government has ordered its competition watchdog to conduct a review of retail electricity prices. the inquiry will examine the behavior of power companies and contracts for residential and business customers. prime minister malcolm turnbull says electricity markets do not seem to be operating as effectively as they could. initial findings expected within six months. capitals recent controls have set back several deals between china and hollywood. producer remains optimistic. it is seeking to renew and expand the type with stx entertainment. the three year deal will expire says the, but huayi two companies are discussing further collaborations. >> we would like to renew and deepen our cooperation with stx. stx has a lot of plans and television and multimedia. a also have new ideas for the

asian market. we have had a lot of contact in this regard. betty: it has been another beautiful box office weekend. disney's live-action remake of beauty and that these holding the number one spot, bringing in $88 million in north american cinemas. rangers took an almost $41 million to play second, and the remake of the 70's tv series chips disappointed, making less than $8 million to place seventh of the weekend. the former u.s. commerce saystary carlos gutierrez president trump this finding washington more frustrating than he expected in the business world. he said the president is right to move on when things just him go his way. move tonk it was a wise say let's pull the bill and let's go on to something else, because if not, he would be there for three years, and

everyone is expecting that tax reform. that is why the stock market was up, and that is why the stock market is down today. there are questions as to whether he can pull that off. >> isn't taxcutting combined with protectionism a disaster waiting to happen? >> that is the big issue. defense spending goes up, taxes come down, we want to spend $1 trillion on infrastructure, and pay for it through a border tax. now that border tax could very well create a protectionist , andment across the world that could undo everything the it is arm will gain, so quandary, and he does have a jigsaw puzzle to figure out, and it is not an easy budget to figure out. he made a campaign promise to get rid of obamacare, so he spent his first -- all of his

political capital in the first month there. he has to do something about nafta, so now he is forced to do something. he was very aggressive about china. he has to do something. behink the trick here will can he do something that will satisfy his base, but not impact the economy? >> how long does his mandate last? only polarized between democrats and republicans, but has split republicans as well. you are on record for voting for hillary clinton and you are calling that plan by donald trump as leading to economic disaster, so how long does this mandate that he has last? think there is a lot of time. i think that people want to skew results. he came out of the gate so strong that people thought this is for real. we will start seeing things very quickly, and he is finding that

nothing moves that quickly in washington. ?> how about tpp is it realistic to think tpp can survive without the lead signatory, the united states? but think it is doubtful, whatever it is we are going to do, we need to get started. he can't just set aside trade, ignore trade, because asia is regional lysing, and rcep is becoming a reality and asia will become a regional trading block over the next 10 years. can get these stories and interviews, stories, headlines to get your day going in today's edition of daybreak. and in theb bloomberg app. you can customize the settings so you only get the news you care about. this is bloomberg. ♪

guotai junan betty: this is "daybreak asia". our chief international correspondent haslinda amin is following recent developments with france's visit in

singapore. >> the timing of his visit is theificant at a time when world is increasingly caught up with protectionism and the u.s. is pulling away from its asia pivot. he is looking to do the opposite, seeking to boost bilateral relations between france and singapore, but also asia and europe. in 2015, france was among major european powers that turned a deaf here to the u.s. and its call not to join the asian infrastructure investment bank led by china. the french president was key to that. in a speech he said there is a need for singapore and france to show the way for opening confidence in international trade. singapore'sready number two trading partner in the eu. bilateral trade amounted to $11 billion. on top of that, that is a high level of military cooperation

and both work together on cybersecurity, so not surprising president andh the singapore and president toasted strong ties. buty: no surprise indeed, he is also heading to indonesia before wrapping up his visit, so what will be important on that agenda? haslinda: we hear that while in kuala lumpur, the french president may make a pitch for the made in france fighter jet. malaysia is looking to replace its aging fleet and looking to buy 18 fighter jets, and malaysia said it is now down to two choices. at stake is a deal potentially worth $2 billion. as for indonesia, the french president will be the first president to visit in more than 30 years, significant in itself. whichd before indonesia, has the largest muslim population in the world has a

tradition of open and tolerant islam that allows indonesia and friends to share the same message of peace. in a sense, his visit to southeast asia is a hit act a trump and what he stands for. betty: sounds that way. thank you so much for that preview on the french president's visit to southeast asia. that is almost it from us here .n "daybreak asia" rish has more of what's to come on "bloomberg markets: asia". rishaad: various fed speakers, including janet yellen. springs eternal that we get clues and transparency as to the future of interest rate normalization and monetary policy in the u.s. china data, pmi numbers.

we should get the first trading day for this property developer as well. betty: ok, you have a lot of guests to talk about all those issues. , dennis absolutely lockhart, former atlanta fed at 10:40. the crediting to suisse asia-pacific ceo about how the bank is seeking to double profits from this part of the world by 2018. how are they on track to do that? that is number of markets next. ♪

9:00 a.m. in hong kong, midday in sydney, 9:00 p.m. in new york. i am haidi lun. rishaad: i am rishaad salamat coming to you from bloomberg's asian headquarters in hong kong. this is "bloomberg markets: asia." ♪ haidi: the yen triggers a selloff in japan at the start of a week that brings fed speeches and data from china. rishaad: hong kong waiting its first time share sale of the year. so far, guotai junan