anchor: stocks jumped the most in weeks. anchor: the lack of a hit show means netflix mrs. subscriber forecast. profits are on the rise. another so-called temper tantrum as the bank trims its balance sheet. anchor: sending a message. what is on the agenda as the vice president visits asia. we have the world covered here on daybreak asia.

tokyo andve in beijing to talk about the u.s. vice president's trip to asia. we will also be in singapore to talk about the property sector in the region. anchor: that is right. what is to buy in asia in poverty? in new york -- in property. breaking down netflix's earnings. is "daybreak: asia," coming to you live. i am betty liu, here in new york. yvonne: it is just after 7:00 a.m. in hong kong. i'm yvonne man. investors had a pretty good easter break. we are seeing markets with quite a turnaround here. a very strong data out of china gets to be a potential game changer as well for markets and does comments coming out of steven mnuchin on a strong dollar, saying it is a good thing. betty: it is a good thing and kind of undermining a little bit all the bluster, so to speak,

that we heard last week from trump about meeting a weaker dollar in order to propel the economy. again, it kind of drives home that point, yvonne, that there does not seem to be a unified voice coming out of the white house, and that continues to confuse investors. yvonne: he still expects a deal sometime this year. perhaps that could be stealing some of the risk appetite here. that from the holiday, the dollar getting -- the kiwi holding at 13 u.s. cents. futuresy it flat for for stocks in sydney. could be seeing it flat for futures for stocks in sydney. 'span looks to be pretty firm

first today. we are seeing a potential 180 for the nikkei 225 in tokyo today. dollar-yen, 109.03. we are well above that moving average for dollar-yen. may getting some of the downside risk we have seen given these geopolitical concerns we have seen in north korea and much of the region, so kind of helping with the sentiment on wall street as well. betty: it did help the sentiment and to get a quick look at what happened on wall street, but is pull up a board on the indexes here. stocks pretty much rallying all the way through, closing right at the high of the session. that is bring up the board on stocks. su keenan has a bit more on the stock markets here. su" not all the players are

back from the three-day holiday. su: not all the players are back from the three-day holiday. based a pretty broad- rally. almost 200 point gain on the dow. if we look at some of the big movers, they were the big movers after hours. ual giving up the board of stocks in the spotlight. ual up before announcing after the bell earnings. after beating the street, saying it would boost capacity. .the ceo said the recent event is causing worldwide outrage, then dragging a passenger off due to what they called overbooking, was a humbling experience and watershed moment for the company that they hope will make things better in the future. net let's also up before and after thereafter the ball report of a higher profit.

the latest drug trial had bad news. a go to bloomberg #btv 6598, ten-year break out in bonds, breaking out of a range, very big story and no kathleen hays hit on me last week and we will continue to harp on because real estate and utilities stocks were up as a result, but it really has a broad-based effect on the market. >> you know, despite today's remains a keyity focus. we are getting fresh signs of a bumpy ride ahead. yeah, weah, -- su: have seen volatility go up. let us go into the bloomberg, because there is a question about whether most people use the vix correctly or interpret it correctly because it can be misunderstood. here is a chart that shows the ,ix stability hints at spikes and it is a long-range view that takes into account the 20 day

moving average. there is a big analyst out there that points out that it is very important to view the long period of low volatility through the glimpse of a 20 day moving average because the view that after a long period of calm it will snap back to tsunami like volatility, is not correct. have to view it through 20 day differentials. let us listen to a banking analyst on how the rally is not really there yet. >> people are looking for a trump bump in over a month or quarter. the second thing i would say is once you have the changes, it will still take time. you have not habitats reductions, trade dollars, infrastructure investment, deregulation, or anything like that. extended timeframe for when you think the banks will benefit from changes from the trump administration. hisy: his mesh it -- su: message extends the timeframe.

the gainsbeing about from m&a and the fact that there is a second year now that the trump bumped is not going to come anytime soon. he combined that with content on the market and a look that there will be a question as to whether today's rally is sustainable. >> see kamen, thank you. first word news with nina melendez. nina: bloomberg is being told president trump plans to nominate a bush era senior at the treasury to be the top regulator. no decision has yet been made. the post has great sway over the playng sector and would into the president's pledge to ease regulatory constraints. the former korean president park geun-hye has been formally charged with abuse of power. she is accused of coercion and leaking state secrets in a widening corruption investigation into links between the presidency and the business. has also beenrman

charged with following more than $6 million to park. the front runner to succeed park is promising extra money to kickstart the korean economy. moon jae-in is proposing a special budget of $9 billion for job creation, startups, and to bolster small to midsized companies. the numbers are broadly in line with expectations from private economists. it follows the bank of america economist who says it is not accommodative enough. globally, 24 hours a day, 120red by more than countries. i am nina melendez. this is bloomberg. anchor: nina, thank you. tensions on the korea and on thela continue -- korean peninsula continue to overshadow that. with terror also. we are joined by tom mackenzie, joining us from beijing and isabel reynolds in tokyo.

isabel, a when you start with you because it seems like japan wants to avoid a lot of issues when it comes to a weaker yen, when it comes to balance, whether wilbur ross joins these negotiations. will he get their way? isabel: that is hard to say and probably unlikely at this stage. that it has seen is been overshadowed by north korea but the initial idea was for mike pence to come over. it was japan's idea to create this dialogue between the two deputies to create a dialogue and keep these issues away from donald trump and prime minister abe in order to maintain a friendly relationship. this is turning out to be an extremely brief visit. only a few hours spent on bilateral issues, and i think the part of it that will be spent with prime minister abe will be about north korea in the main. then they are moving into this discussion about the economy, but what has happened that is

unexpected is wilbur ross, commerce secretary, will be in tokyo on the same day, holding his own separate talks with his counterpart, so this could open up a new wave for the u.s. to start pressuring japan about these issues, about the yen, access to agriculture markets, which are extremely sensitive in japan, so perhaps, those are not quite going the way japan hoped. , and things are rapidly deteriorating as well on the situation in north korea, tom. it looks like relations between china and north korea are becoming even more frosty. tom: yeah, that is interesting, isn't it? there's reports brought by bloomberg reporters that got this information about two senior format here in china who are apparently snubbed. including the minister. they made overtures to the north koreans and the north koreans brushed them off and did not get back to them. i think that point as well to a question over just how

much political leverage they have over korea. certainly they have the most political leverage, but when it comes to the political leverage, that is something people have questions it is the north koreans know very well the chinese are terrified about the prospect of hundreds of thousands, millions of north korean refugees flooding across the border should the state collapse in north korea, and they use that to their advantage and we saw that possibly playing out with them very brazenly in many people's eyes, just turning their backs on senior chinese officials. by the way, diplomatic talks between a korea and china has taken a lower level since 2013, since kim jong-un executed his uncle. betty: tom, what does it mean for the u.s. now that china seems to have not as much weight when it comes to the conversation when it comes to north korea? has that changed their stance on how they will approach pyongyang ? tom: that is the question.

has not the u.s. radically changed its approach to north korea from previous administrations. there is some military posturing and tweets from trump, but they are still following on from the obama administration in terms of things that the missile defense shield and they are putting in place and south korea and looking to do more that in japan and try to pressure china in whatever way china can to try to push north korea and kim jong un away from his nuclear program. washington is drying up their plans to north korea, so maybe there will be shifts. it is possible they could look at putting sanctions and voice on chinese companies that have economic ties or business relations with north korean companies. it is difficult to see what radical new approach they could take. it was interesting to hear from vice president mike pence, who went to the demilitarized zone between south korea and north korea and the trump is looking for a peaceful resolution, but also look to what he did in

that and afghanistan with huge bomb as evidence of strength and resolve. the situation is totally different to what you would see in north korea, the military implications of any conflict there. yvonne: indeed, tom. isabel, back to you with this trip by pence. are we going to see any kind of -- usually, the temperatures are accompanied by discussions and announcements on deals, and direct investment between the two countries. are we going to see anything like that, or have we seen anything like that? isabel: we have heard nothing about that. a tentative will be first step towards talk about the economy. there are going to be talking about the framework for talks on forward, timetables, but i do not think there will be any concrete message. there will be a joint briefing between mike pence -and --

but i do not spent a huge amount of news to come out from them. the visit is so brief. what could be more interesting now on the trade funds is to look at what wilbur ross comes up with his counterpart. that could be a more interesting outcome. yeah, but as you mentioned, a quite short trip for the vice president. isabel reynolds, joining us from tokyo. mackenzie, for joining us. anll ahead, netflix has hit international milestone but disappoint on growth. we will take a look at the first quarter results later on. look atp next, a closer china's property markets ahead of the latest housing numbers due later this morning. this is bloomberg. ♪

betty: this is "daybreak: asia."

i'm betty liu in new york. yvonne: and yvonne man in hong kong. trillion yen ahead of the chinese property prices we are correcting to get later on this morning. let us take a look at the chart about have seen a couple months of these curves in china's efforts to cool down this market. we have seen the first tier cities in white. it has slowed down quite a bit. we are seeing pretty solid gains. there has been a lot of sentiment here on whether these curves are strong enough at the on the buyerat frenzy we have seen. let us talk about this more with the next guest. ofwart crowe, head asia-pacific capitals market, live from singapore.

it makes me wonder about these capital controls and curves have seen in china. do you think they are just too timid at the moment, or is sentiment just too strong? stewart: well, sentiment certainly is strong, and i think you pointed out, in the tier one cities, you have seen some of growth slow and some of the transaction volumes slow. recent times,ore you have seen even in tier four cities some of the curves being discussed and that is likely to happen. sentiment does remain strong and there is a voracious appetite. we are starting to see that take certainly having an impact, and although prices are not forecast to decline steeply, transaction volumes are slowing. transaction volumes are

slowing. what about investment than? en? we have seen private investment was really what he won't the first quarter gdp to a beat as quarter. officials are saying these curves are really starting to ,ite as you guys mentioned here starting this month, so when do you see this policy company really start to take affect? ramped be significantly up for the rest of 2017? stuart: i do not think we are thinking that there's going to be there's going to be a significant decline in volume sales and price declines, but it is going to be a flatline or plateauing of pricing across theetier one, and some of other smaller markets, so i do not think we are seeing it immediately, or as being extremely steep, but it is starting to take hold, and that is true of china and hong kong.

but where we are still seeing huge amounts of investment and volumes is in the nonresidential sector, in the commercial sector. many of the global clients and domestic companies, with some of the capital controls in place for chinese investors going offshore, they are looking more building, office shopping centers, and logistic facilities, we are seeing very strong price growth, rental growth, and large investment volumes forecast for 2017. betty: i want to just throw up a chart that we have on our bloomberg terminal, which is think illustrates a lot of anticipation, some of the buyer anticipation, where we have seen shares of developers, chinese soaring whenust you compare it to the msci china index. i have to say that i

think the developers have been active and what gives people confidence in the market is that land prices remain high and land prices throughout china , particularly in the tier one markets, remain very strong, and developers continue to replenish their land banks, so to that extent, replacement cost for residential will hold and although, as i say again, the volume of unit sales might plateau for a while, would you not see a decline in pricing. the other thing you are seeing is for selective projects, particularly in shanghai and beijing, where there is, you know, very strong vocational ,ynamics or a great development that we are seeing really strong presales and particularly people that have presale licenses or clearance, you are seeing strong demand for this. so, yeah. many of the developers are going a goode, so that is

example. very active in markets such as malaysia, very active in australia, and they are diversifying. and speaking, about going to other markets, your note,in there are other property markets that are more interesting or more investment. australia is one of them, even though i know we have been talking things ad nauseam about a huge fight we have had or the rise in the run-up of housing prices in australia, and whether some of those markets are getting stretched. well certainly, in the nonresidential sectors, so in the office sector and the retail sector, we are seeing a huge flood of foreign investors into the australian market, and i think more than 60% of all of the transactions that are taking place over the last two years of any scale have been with foreign investors that have been attracted to the yield and

rental growth dynamics of that market. residential, indeed, in pockets arguablyrne and brisbane, there is concerns about oversupply, and i think some of the capital controls, as you pointed out, for chinese investors going offshore, will have an impact in the short-term. again, the underwriting dynamic side that there is a housing shortage in the market, and many of the large chinese developers are attracted to that, attracted to the transparency and maturity in the market. they are very active there. anchor: stuart crow, thank you. how united stocks seem to be weathering the airlines storm. this is bloomberg. ♪

>> this is "daybreak: asia." the latest check of business flash headlines. fthansa starting an airline. qatar airways said it was planning an airline in india with up to 100 planes, market projected to sell tickets in the next 10 years. singapore airlines and air asia have bought states and local carriers. betty: former consultants to airbus are suing the plane maker misstatementspped and omissions in applications for export credit financing your the annual report, airbus says its review of business relationships and associated legal matters may have impact on future financial statements. it is too early to determine the extent of liability. boeing is planning to

lay off hundreds of engineers in washington state and may eliminate more jobs later. the latest cuts take effect in cut and follow a separate of workers who agreed to leave earlier this year. betty: yvonne, staying on the small airline theme, really cannot tell about airlines without talking about united, right? and we heard them reporting their earnings and oscar munoz saying he was humbled by this terrible incident that happened last weekend. i wanted to show up a chart as to why it seemed like there was going to be a moment like this, yvonne, whether it was united or another airline. factors have been going up and up for airlines. you can see it pretty much right at capacity here, in the 80's, and that is essentially, you know, these airlines have very data analyses were scientists say you can over but by this much in order to keep

your planes filled, and you just knew that at some point, this was going to happen, it was going to be overbooked and someone was going to -- and now this. yvonne:

anchor: 7:30 a.m. tuesday morning in hong kong. marcus coming back here in the city after the easter holiday. after this quick turnaround we saw overnight in wall street 330 minutes away from asia's first major market open. betty: it is an uncle 30 monday evening in new york. it is getting darker later. i know i'm betty liu in new york. yvonne: you are watching "daybreak: asia." first word news with nina melendez. nina. erna: turkish president i dogan saying the referendum was

democracy beyond compare. "no it'shem it should place." know its his political supporters say turkey will return to normal. >> it has improved. the government system has been settled. we backed the agenda and that would include structural reforms. nina: mike pence twice to japan today, changing his message to trade. he warned the north against testing america's newfound resolve restaurants. john gains on voice -- nvoy to the u.n. said they are pushed to the brink of war. peninsula,nt on the

to say nothing of the in northeast asia. nina: they bought $5 million of bank stock in a bid to rebuild confidence. regulatory findings show chairman stevens, $3 million. he led the board investigation fakee figure ca -- account scandal. a u.s. judge has ordered a company to pay fines after latin america's biggest construction company admitted bribing officials around the world to win business. almost $2.4 billion will be paid to brazil and $92 million to the united states. the judge agreed that although all the breck -- the company has accepted the penalty, it could not afford that much. global miss, 24 hours a day, powered by more than 2600 journalists in more than 120

countries. i am nina melendez. this is bloomberg. anchor: we are counting down to some of the major market opened in the asia-pacific. chamber, -- in that yvette shankar. we heard about these housing risks in australia, but one one, we'll be looking on and focusing on. the last meeting, the rba left interest rates at a record low 1.5%, signaling an extended pause. they will be looking at china and gdp data. on the other hand, iron ore slipped overnight and we have prices falling to $40 a ton this

year, so investors will be weighing both of those things. the dollar however is mostly study this morning and following gains from last week's job reports. among the stocks that we are watching is horizon, and the while thebeen halted company reviews its forecast in lieu of hurricane -- i should say cyclone debbie, earlier this month. betty: i know you're watching a lot on the agenda today in asia. i know you have got china property numbers that are going to be out a little bit later, but also you are watching the vix, gold prices. what will stand up to you? -- stand out to you? guest: i think it is the lack of pessimism that came through the u.s. market. the s&p 500 closed the highest in more than six weeks or have

the biggest gain, i should say, in six weeks, and the vix, which is called the fear index, now and then, fell the most in three months. it is trading at the highest at about five months, but you know, gold is again at that level. highest about five months. we will see how much of that, you know, respond sentiment comes back into the -- risk on sentiment comes back. markets, early gains. watch: certainly a lot to as the markets are opening them. here is betting the fed will not raise rates as much as it says it will. the central bank is monitoring those moves and stanley fischer says he does not expect to rattle the market by cutting the balance sheet. has more.ays we have bill rhodes here

yesterday, who said i'm sticking with my forecast. only three hikes this year. kathleen: it-- will stop reinvesting proceeds dollar4 billion trust balance sheet. it is a big balance sheet, so people are starting to get nervous. as much as the markets are watching the fed, stan fischer's speech makes it clear the fed is watching the bond market. he was talking about communication. he basically said it is better not to surprise the markets. 2013 whenhappened in he mentioned they might start buying fewer bonds, tapering off on the purchases. taper tantrum, showing it is not easy to avoid surprising the markets. balance sheet changes coming, jump into the bloomberg with me. 75.15 to see why this is such a big deal. look at 2007. nearly $4.5 trillion.

as the balance sheet got bigger, look how the white line grew to the top. that is the s&p 500. they come off the lowest yields, higher prices, but still, much lower yield than they were before. that is why this is such a big deal. trying to figure out what is going to happen to the markets, stan fischer said this. he said he is confident or at least expecting that this will not cause another taper tantrum. here's what he said earlier. >> we have to recognize that complacency must be avoided. that is to say, as we continue to discuss and eventually implement policies to reduce our balance sheet, we have to continue to monitor market developments and expectations. carefully. concern, yes, we are watching closely. stan fischer -- anchor: one thing he noted that was a very interesting speech is how in march of this year, the

head did a survey expecting what they expect about reinvestment and one of the things that struck me is that there was a wide dispersion when the markets expect, when the dealers expect the fed to make its reinvestment announcement, but even the earliest was the end of this year. they are spending an announcement. middle of next year, betty. it seems like the markets are not in step with what the fed seems to be signaling. that is one more way in which they are out of step. traders are saying only two. betty: you have to question why right?connect, every fed official said rate hikes are coming in balance sheet cuts are coming as well. nina: what is happening once isin, data -- isabel: what happening once again, data may be same one thing. saying itter gdp

won't be your .5. that is the one most closely watched. the cpi has decelerated after rising year-over-year. bottom line, rate hike odds are receding, too. let us look at a bloomberg intelligence chart because it makes it very clear. one is the probability of the june hike, the white line. look how it steadily rose. now, it is tapering off in the last week or so. same thing with the probabily of a december hike. interesting that stan fischer, at the very end of the speech had two points you wanted to make. he said, you know, the fed could be to predictable. arehe market, if the data changing, incoming data are changing, and the fed stays on a course for rate hikes or whatever changes they are going to make. then it is to predictable.

we had to start talking about it. are looking one way and we are staying another, maybe that is another thing the fed is getting ready to come to terms with. today, the speech was all about the balance sheet, and he's making that clear he's going to be very careful as they proceed, yvonne. yvonne: trying to ease some of those concerns. kathleen hays, thank you. netflix heading into its most expensive quarter as it prepares to release a bunch of new shows. cominghouse of cards" back. how it stacks up. this is bloomberg. ♪

anchor: this is "daybreak: asia." i am yvonne man in hong kong. betty: and i am betty liu in new york. fidelity purchased by chinese insurance company. to win regulatory

approval of the past two years and valuations of uslife insurers rose during that time. stl says it will weigh other possible th deals. yvonne: berkshire hathaway's real estate brokerage is expanding its global reach with a push against wealthy chinese buyers to buy homes in the u.s.. the homes services unit will begin advertising on a chinese-based portal that is about 2 million visitors a month. the brokerage owns 38 realogy companies and was acquired when chairman warren buffett. the energy business in 2000. betty: toshiba is said to be planning a written response to the sale of its chip business. western digital said any sale could violate their joint venture and told toshiba's board it should negotiate with them first. toshiba wants to sell the chip units to shore up finances which are losses to westinghouse's nuclear business. yvonne: netflix is slightly

higher in extended trading, recovering from an initial fall after sewer first quarter user --'s lower first quarter user growth. let's get to our america telecoms and media reporter, joining us live from l.a.. the lack of this big production hit kind of led to the poor new subscriber numbers for the first quarter. the return of hits like what with thecards -- return of "house of cards" how will the second quarter fare? driverends to be the big of new customers for netflix as opposed to something new that people might not know and might not be enough of a reason for people to sign-up so in the next quarter, they have a new season of house of cards, which has always been in the first quarter of the year. a new season of "oranges new "orange is the new

black." you see the first quarter and fourth quarter of the big ones and two and three are a little softer. you have all these returning shows in the second quarter whereas the first quarter is stand up special and no big flashy title. betty: it seems like there is a trade-off. you either get rapid subscriber growth or a trump in profit. you cannot really have both for netflix. what effect is that going to have on profit? lucas: profits are going to be down. never put reported its highest profit ever in the first quarter -- netflix reported its first highest profit ever in its first quarter. in the second quarter, international goes back in the red and their eps dropped from $.40 per share to $.15 per share. they have to pay for things. before they had -- because they have much of coming on in the second quarter, they had to a cow for all of those and there is a marketing component to it.

netflix said in its press release today that it will spend more than $1 billion on marketing and 2017, which as far as i can tell, is a new high. there is more competition for eyeballs. they had to spend a lot to support it. there is this bargain that they strike where they are investing a lot of in programming and marketing to try and bring in new customers. as they do that, it tends to push out the profitability of little bit. betty: absolutely, because they are spending so much money up front. is there a big difference netflix operates internationally and in the u.s.? what are the margins? to be most tend successful in the places they have been the longest. you know, netflix to operate a whole lot down territory by territory, so it is difficult to make snap judgments. unfamiliar with their bazillion did -- i amecause i

familiar with their operations because i did a story on that. what they say publicly is that they are, they tend to be breakeven or profitable in a place after a couple of years, maybe longer. a place like canada, latin america, some parts of western europe, they are profitable. in eastern europe and national africa and asia, they have not figured out the right mix, with a few exceptions that the u.k., canada, australia. in places where they do not speak english, it takes netflix two or three years to figure out the right shows to satisfy the local population, especially for a market that does not love western content. anchor: especially for content that is not translate that much. thank you for joining us. on to another company we have been watching closely. united airlines back in the news. this time, for something more neutral. betty: earnings. releasing first quarter results a few minutes ago. ramy inocencio here.

ramy: talking about the numbers, but really it is about what oscar munoz said and the word everyone is gravitating towards his humbling. humbling experiences. they talked about the numbers first, but they got straight to the meat of this and he basically said "sorry." he did not say that the first couple of times he's had some statement. a sickly he was thing the incident that took place aboard flight 3411 has been "humbling experience." he says "i take full responsibility." this will prove to be a watershed moment for our company and we are more determined than ever to put our customers at the center of everything we do here. that is basically what he started off with, betty. we have to take a look at the numbers here. let us take a look at first quarter earnings here. revenue earnings per share, both beating estimates here. a .4 billion is what came out. 4 billion is what came out. earnings per share came in a

couple cents higher. rasm wasthem -- p unchanged. capacity is going to increase by three to 4% or so and for the whole entire year, they see total capacity, 2.5 to 3.5% higher. betty: that is key because you want to see that growth. ramy: the question is whether they can sell those seats but a lot of people are saying that usually, they can. they will not be increasing those seats unless they think they can do that because they operate off of razor thin margins here. the only profit, by about $96 million. they pulled in $3.8 billion in their costs. we are seeing these thin margins they are operating on. betty: as a business, you can see why they want to jam as many people in as they can and fill

those seats up as much as possible. when the news broke, i was flying, and it was shocking about the video with everyone thought, "my goodness, this could happen to me." i call jetblue and asked if they overbook their flight, and they said "no." so they much better. ramy: they are one of the on companies that do that. i wonder if there will be some regulation that comes out of washington that says this needs to change, except it is one of the few industries that allows are to overbook and say we going to book it just in case. i do not understand that. it is something near and dear to my heart as well. with that said, i want to go into one of the bloomberg charts here. hop into the bloomberg terminal. what has been happening here is investors are pretty optimistic at least on what has been happening. up 1% in after-hours trading here, but of course, after the debacle, they fell by as much as

4%, so we are seeing that this could be a very short-lived instance in terms of -- betty: in terms of re-zillionth -- in terms of resilience. it is not the first time something good for business is good for the consumer. you have to run your company in certain ways. ramy inocencio on united. you can get the stories you need to know and you get your day going in today's edition of "daybreak." bloomberg subscribers get to dayb on their terminal. it is available on the bloomberg anywhere at. you can get news on the industries and assets you care about. this is bloomberg.

♪ asset-management is one of the largest public funds in china and manages nearly one hundred $50 billion

in capital. its performance was the best among all such funds in china last year. china aims you like the hong kong market in particular and ce the ceo remains optimistic. >> domestically, we are up be on the equity side. we see positive development in the cyclical sectors. we see positive developments in some of the environmental protection areas, and also manufacturing sectors. also with the launch of the iphone eight, there is interesting technology sectors benefiting from that product. globally, we still think that upside going on, and that the same time, hong kong market is offering their attractive value to investors. >> possibly, you may see greater exposure to hong kong stock? >> we have seen quite

interesting capital inflow through the hong kong shanghai and shenzhen programs. at the same time, global investors have been relatively the hong kongt market. when we see the hong kong market for their move toward the upside, the anticipated for the inflow from the national investors as well. >> are you seeing any impact results from the capital controls that have been put in place here in china? quota andl have some with the latest launch of the hong kong shenzhen stock, that gives us great flexibility in investing in hong kong markets, because this is the first of a kind that does not have an overall court at all, so that provides us enough of a flexibility in the hong kong market. canada is now your

second-largest shareholder. aes that say anything about move to open up the markets to foreign investment? what should we read into that? >> the increasing of the shareholding of the power corporation of canada is in the process of getting approved. they're shareholding in us demonstrates the opening up of the market, those initiatives by the pboc, by different regulators, start to bear fruit. will investr corp. for china for over 40 years, so they are increasing shareholding in us and it demonstrates the international long-term investor still favors china's market. betty: that was of course our own tom mackenzie speaking with the ceo of china as it management. plenty more to come with asia's

first major market open. yvonne: that is right. let us bring in sophie, watching the opening sydney, tokyo, and seoul. sophie: it was an interesting monday. we are seeing geopolitics ease on tuesday and we did see in seoul the former president happen hey being chart -- president park being charged with abuse of power. was indicted over bribery charges related to that influence-peddling scandal. that is look at related stocks here. that chairman avoided prosecution. when we look at what is going on with japan, we have mike pence on the second leg of his asia tour there. he says he wants to make it easier to sell more american products there. in the past, trump has lambasted japan for exacerbating the trade deficit thomas a look out for auto stocks in tokyo. ore prices continuing to

slump. a higher open when they come back online. that is what we will be watching

♪ in >> asia-pacific market set to extend overnight gains in new york. wall street rose the most in six weeks. of netflixflip side is that profit is on the rise. keeping home, the fed number two does not expect a taper tantrum. korea's fallen leader is formerly charged. the former president charged with abuse of power. yvonne: this is the second hour

of "daybreak asia." in hong kong.n and it ism betty liu just after 8:00 in new york. quite a different day and we saw in the holiday break. we saw a rally from that interest rate sensitive share. s&p rose. strong leading to a in asia. but not a huge carry-on so far. it raises questions about the reflation trade continuing on. kennedy sustainable at this point? let's see how things are looking at the asian open. looking positive so far. that seems to be the case, but we are questioning the turnaround. we take a look at what is going on in seoul.

we are seeing resilience on the one as well as investors are more focused on the fundamentals versus concerns over geopolitics. we had the dollar finding its footing after a fresh set of economic data which did dampen the odds for a fed rate hike in june. let's take a look at what is going on. the nikkei 225 advancing .8%. weakerin sydney opening on the downside after a four-day easter break. we do have the aussie dollar steady on the head of the rba april meeting. chinese property progress -- prices from march, we will be taking a look at that. numbers.chinese gdp cba banks that the aussie can't sustain a move above 76. it is encouraging chinese economic activity. checking out what is going on in the bond space.

we do have bond yields picking up across the curve. that. take a look at we have iron ore prices continuing to slump for a five-month low. gold sliding .2% here. take a look at what is going on with the yen. i want to show you this chart. we do have dollar-yen back above 1.09. this is coming from steve mnuchin's comments on dollar strength. we see something of a short-term base hit. the dollar yen remains top-heavy with wariness about the bilateral economic talks as mike pence begin his second leg of his asian tour. betty: thank you so much. let's get to the first word news. presidentmer korean

has been formally charged with bribery and abuse of power. she is also accused of core version and leaking state corruptiona widening investigation into links between the presidency and big business. -- on auto group chairman has also been charged with funneling more than $6 million. front runner to succeed the president is promising extra money to kickstart the korean economy. he is promising a $9 billion foret for job creation small to midsize companies. it is in line with expectations from right economists. governor ofows the the bank of korea who says that is not unknown. netflix gains, but still falls short of estimates. profits quadrupled. netflix warned that a range of

new shows in the second quarter might reverse that. the ceo says the market is so vast that sleep is a bigger rivals than -- bigger rival that amazon and hbo. >> we are excited to cross my hundred million this weekend. that is unexciting a college. you look at you to having one billion active users and one billion hours every day. when you look at facebook's multibillion numbers, we see the internet is a phenomenal opportunity. shares fell after hours after a report that a hazmat crew has been employed in nevada. the company issued a statement said cleaning solvents spilled at a loading dock. employees who may have been exposed to the chemicals were taken to the hospital as a caution. tesla says it was a minor accident with no serious injuries. global news.

24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ chinese government is back with a real estate focus. tom mackenzie is looking ahead to that. we see more evidence of capital controls raining in the property market? we can be looking for that. this is when the government that publishes the prices for 70 cities across the country. for the february numbers they came in above estimates. they surprised economists because more cities solve price rises that have been expected. it will be interesting to see what the march numbers show. we did get indications from data that broke yesterday. we saw that new home sales remains of 18% versus around 23%

in january and february. also saw that construction remain pretty strong as well. so much of this is tied to continue demand from chinese house buyers. a heard reaction from reporter earlier. remain strong.es there is a gracious appetite across china for residential. we are starting to see that take hold. it is certainly having an impact. chart thata terminal shows what is been going on. fromovernment has posted 64 cities across china that put in new or additional curbs to reign in prices. those third and fourth here cities, the smaller ones, prices continue to rise. for some, that is good. that points to progress from the

government. but still there is an element of as the prices came up more than possibly expected. some of this is buyers rushing into the market before they get frozen out or fear that they are going to get frozen out. to put sometimes have down a deposit of 60%-80% for your property. yvonne: i think in a month of march alone three dozen cities implemented stricter controls when it comes to home buying. obviously we could start seeing that start to affect it. what are the implications for china's economy? real estate also affects other sectors in china. >> it does. every time we bring this story up it is worth looking at. it is central to the economic growth in china. it is essential to the resiliency we saw in the stronger than expected first-quarter number that was out yesterday. so much of that was down to

sales and investment around property. it is worth highlighting. aboutin things construction materials and general consumer demand and sentiment. the wealthier people feel the more they will be spending, we saw strong retail numbers yesterday, that ties into property sales. in terms of the curves and when they are going to have an impact, we heard from the national bureau of statistics yesterday. they said it will start to curb investment in april. bloomberg intelligence says it is starting to push people into these third and fourth here cities. development zone that is touted by the government. there are such a rush of interest from chinese buyers in the new zone that they had to close off all the real estate agents in the city. all of them are and shuttered because there was so much demand. most people had never heard of these things until a few weeks ago. another indication about the

man. this is a keeper the health of the chinese economy. the march property prices will be released around 9:30, hong kong. yvonne: they raise their forecast to 6.7% that they also highlighted that the real estate market is debate uncertainty that could lead to uncertainty in the outlook for the economy. still ahead, south korea's former president formally charged with bribery and abuse of power. we will look at what happens next a little later on. we sit down for trade talks in tokyo, what are both sides looking to achieve on this trip? officialu.s. trade provides insight just ahead. this is bloomberg. ♪

yvonne: this is "daybreak asia." betty: i'm in new york.

u.s. vice president is going to talk trade with the deputy prime minister on tuesday. let's get some insight into what they might talk about. the senior at the center for american progress. he is the former ceo and former trade official. great to have you with us. earlierur reporters noted how short this trip is. that is compared to prior ones we have seen in other administrations. does that strike you as unusual? what do you read into that? >> vice president pence is on a poor country trip over a 10 day. . south korea, japan, indonesia, and australia. this was planned two months ago -- abeime minister they visited president trump.

this dialoguesed to talk about investment and growth in the united states. this meeting with deputy prime kickter also is meant to off this initiative. from the u.s. side this is to have a framework for the discussions that are going to take place from now on. they have some very clear objectives. what are they? the japanese objectives are clear. they want to accomplish one thing and avoid three things very they want to accomplish investment in the united states that will -- by japanese companies, that will stave off the u.s. they want to avoid a bilateral u.s. japan fta negotiation because that could lead to some tough negotiation on issues such as agriculture or automobiles. secondly, they want to stave off

discussions about currency because there have been accusations about japanese currency manipulation. the third day they want to do is between thelink security issues and the economic and trade issues. those are the three things the japanese want to a college. the u.s. will probably go along with that because this is the first and very general meeting. i want to tackle the first point you made about the japanese wanting to see more investment your from the u.s. i want to pull up a terminal country byshows country, region by region the biggest investors in japan. perhaps not a surprise that asia-pacific leads the pack. taiwan after, then europe, then the european union. how do they get the u.s. to do more in japan? much going to have to be

more of a trade-off between the two? >> you are talking about u.s. investment in asia right? i'm talking about japanese investment in the united states. the japanese are hoping that if japanese companies invest in the u.s. -- united states, that will satisfy the u.s. and satisfy the notion that the u.s. has that we need to have bilateral trade negotiations in order to open up the japanese market. so that is the trait investment issue. betty: don't they also went u.s. investment in japan? think --o, but i don't they would prefer to have more u.s. investment in japan, however japan is a shrinking market. the population is declining. there are many more attractive markets in asia. yes, they would be happy to have more u.s. investment, but the japanese do not believe that is going to al a the concerns that

the u.s. has about the imbalance in the trade. the japanese solution to this is companiesore japanese investing in the united states. they are hoping that vice particular,nce in having been governor of indiana, will appreciate this. yvonne: he has been a welcoming sign in that he has experience getting japanese investment in the state of indiana. i want to go over some lines that are coming out talking about his meeting coming with mike pence. detailed plots before u.s. personnel are in place. economic talks should be a model case for the asia-pacific and no discussions up on fta at economic talks with the u.s. so not talking about anything too concrete here. they're trying to divorce what trump has been trying to overlap

here, which is been trade and security issues. with china,deal saying it you want to make a deal, solve the problem in north korea. benefit from a softer trade policy stance from the u.s. economy? why are they trying to divorce from it? >> it is a complicated issue. first, let me go to the comments that the deputy prime minister said. he is correct in saying that the u.s. side is not have the people in place to have the negotiations. even the u.s. trade representative has not been confirmed yet. there's a whole group of people, hundreds of people in the u.s. government that need to be in place before detailed negotiations can take place. secondly, about the question about the stance on trade, the japanese are concerned in part because the u.s. has withdrawn from the tpp.

they withdrew on january 23. under that agreement, there would have been some benefits to american companies, for instance there are 38.5% tariffs. tariffs on2% australian beef coming into japan. the australians had a 10% advantage. if this continues, the us trillion tax will go down to 18%. there will be a 20% gap. if the u.s. would have state in the tpp, both the australians and the u.s. would have had 9% tariffs on beef coming into japan. the american be producers other people that are really disadvantage right now. theerday's are beating american beef producers in japan. the u.s. beef producers what a bilateral deal with a can get lower tariffs from japan. device for other areas as well. as a result of the u.s. withdrawing from the tpp, it has resulted in some detriment to

certain american manufacturers and producers. i think the hope is that there will be bilateral negotiations that will make sure that the u.s. can take advantage of openings in the japanese market. bring up the to issue of trade tensions. this is an interesting interview that the treasury secretary gates to the "financial times." i don't know if you had a chance to look at this interview, just came out in the last couple of hours. he said "as the world's currency, the primary reserve currency, i think that over long periods of time the strength of the dollar is a good day. it is a function of the confidence and the strength of the u.s. economy." a little bit of the pressure off of these tensions that we are seeing between the u.s. and japan?

in the u.s. and china as well? the think that is true to extent that the u.s. treasury secretary says a strong dollar is good, it takes some of the pressure off those who are criticizing. countries such as japan, china, germany, or other countries that are unofficially manipulating their currency to make their currency uighurs to the banister exporters. so that is true. however, there still a lot to be had before we get to that point. ultimately, what will be success from this trip? u.s. has rather low expectations in the sense of trying to get concrete specifics. they have announced, even before the arrival of the vice president, that their main purpose was to set the framework for future negotiations and discussions. also, there is a secondary purpose to this trip which was not that high on the agenda on

february 10 when the president and prime minister met. that is north korea. as you recall, at mar-a-lago, the prime minister was told that they were launching missiles. the idea of the north korea threaten the need for the united states, japan, south korea, and onna to work collaboratively this has become a major issue. the vice president is raising this in his trip at this time. yvonne: a lot on the play. thank you for joining us. you can get a roundup on all the stories. go to daybreak on your terminal. also available on your smart firm -- smartphone on your bloomberg anywhere. this is bloomberg. ♪

betty: this is "daybreak asia." i'm in new york. yvonne: i'm in hong kong. let's check the headlines. the united airlines ceo is saying the error line will -- the airline will recover. closed 2.5% of snapping three days of losses after he said the issue will be a watershed moment for united. they are determined to put customers first. their first quarter financial performance beat expectations. yvonne: wells fargo ceo and chairman has built despot more than $5 million in bank stock. he brought $2 million worth on monday and relaying dollars -- and $3 million by another.

they hold their general meeting next week. hollywood's creative artists agency is launching a joint venture in china. the agent to many of the u.s. film industries biggest names. ca china will be a partnership with a chinese company. the terms of the deal has not been disclosed. we have been talking about vice president mike pence and his trip to korea and japan. is nowe president speaking to business leaders in south korea saying that the u.s. -- saying we must be honest about where u.s.-korea trade falls short. the hard truth is that the trade deficit doubled and that the u.s. is reviewing all trade agreements how including the one

with south korea. also saying that south korean companies have made significant investments in the u.s. economy so offering generosity there. that is despite some of the hard work about needing to be honest. certainly, you might be hearing the same thing when he speaks with japanese leaders as well later. yvonne: the choice of words is interesting. they are appointed. they want to have a hard line when it comes to the trade imbalances they see between the u.s. and japan. it is funny because you heard just a few moments ago that they are not expecting any free trade announcement deal to be made during this trip. he said there is no discussion. detailed can't have talks between the japan and the u.s. because u.s. personnel have been put in place yet. it will be interesting to see how these will be sitting down at the negotiating table and

what they will be discussing. absolutely. certainly, there will be a framework, but no specifics out of this. we will have much more in a moment.

>> 8:30 in singapore. we are happen an hour away from the opening trading there. yvonne: i am yvonne man in hong kong. in new york liu here. let's get the first word news. >> china releases property data in the next hour with prices expected to remain resilient. pledgee seeking to inict curve enforcement figure tear centers to prevent a housing bubble. bloomberg calculation shows sales up 11% by volume.

there was a genuine chance the u.s. will default on its debt. the markets are not paying attention. investors are fixed on the here and now and they're not making plans for the future. he said he does not expect the worst to happen, but the market should meet -- make plans just in case. >> if we got down to the wire and there were default, what is worrying me is there is no mental preparation in the market for this. it might come as a complete surprise. that is when your chance to some sort of dislocation that results from it is greatest, if we are not considering this as a real possibility. >> bloomberg is being told that president trump lanes to nominate a bush era senior treasury official to be the fed's top banking regulator. he is being put forward, but no decision has been made yet. he has great sway over the

banking sector and will play a pivotal role in the president's role to ease regulatory restraints put in place after the financial races. tokyo is redrawing the fine line and is near completion. the city is expecting 45 new skyscrapers by the 2020 olympics. firm says 75% of new construction in the next couple of years will be in the central districts. ultralow interest rates are fueling the building. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ time to see how the asian markets are shaping up this morning. sophie: i want to focus with what is going on in sydney. rba minutes to look

forward to. forwardt more to look in that market. take a look at the aussie dollar. the currency is sitting under short-term resistance. -- below zone around the current level. that the aussie is vulnerable to any dovish tone from the rba. i want to look at equity movers in sydney today. ppg telecom shares plunging after another round of capital raising. is seeking to raise 400 million aussie dollars. take a look at this full-screen. shares falling today after it agreed to sell its odyssey gaming unit. crest sliding 6%

following friday's seismic event. goldwas the second largest operation this year. i want to wrap up what is going on with this minor. they have reached an impasse with regulators in australia and is now walking away from a $20 million deal with american company peabody energy from australia goal line and a minorities day in and export terminal. cyclone hitfter the cooperation back in march. betty: thank you. back on the bond markets, the fed will not raise rates as much as it said it would this year. it isy fischer is saying not expect to rattle the markets by cutting the balance sheet. kathleen hays is here with more.

we are getting a disconnect sometimes between fed speak in with the markets believe, right? reporter: i wonder if that officials and stan fischer are looking at the fact that they if there isoard or a disconnect between what the fed plans to do with the balance sheet, start reducing it by not reinvesting the proceeds. a simple step, but potentially a powerful one. they talk about how it is important to avoid the market, but is not always easy as seen by the june temper taper can't or. ben bernanke was the fed chair. he said we might start tapering off, we might stop buying fewer if the economy keeps in clothing. we know from the fed minutes that they are changing the balance sheet, it is coming. 7515. look at #

this is the mountain, and now it has plateaued. $4.5 trillion. the turquoise line shows how bond yields came down in the treasury market rallied over those years stocks rally. it could affect the markets, that is not surprising. the speech at columbia university, the fed chair stan fischer said he is aware of all of this, but he does not expect a repeat. here is what he said. that have to recognize complacency must be avoided. that is to say, as we continue to discuss and eventually implement policies to reduce our balance sheet, we will have to continue to monitor market developments and expectations. toty: so the fed is going watch the market very closely. also interesting in the speech

-- i would say read it because there are a lot of interesting points he makes. he was talking about when they asked dealers about the reinvestment change. whenhing he notes is that you look at the dispersion of answers that one group did not happen, evenng to in terms of the announcement until the end of this year. ofer solve the first quarter 2018, others the second quarter of 20. the fed is already talking about it. interesting that the vice chair is watching this up close. betty: there's a disconnect on the timing of that. also, the bond market is out of step with the fed. the fisher talk about that? not directly, but it is clear that traders see two total at most because if the fed starts reducing the balance sheet to put it back to where was before the financial crisis, that is a form of tightening.

recently, other things are going on. retail sales came in week. the atlanta fed gdp tracker reduced to 0.5 in the first quarter. have maybe pete and started to come off. there is a big wage-price spiral pushing inflation higher. hike is of a rate coming down. this is a chart from bloomberg intelligence. i like that they lay it out so simply. the white line is the odds of the hike coming in june. you can see it when up 66%, now it is about 50%. odds of a december hike, also the same pattern. people are pulling back now. stan fischer said the fed can be too predictable. saying it would too predictable if it does not respond to incoming data and

response to the policy forecast when data is changing. yvonne: what about geopolitical tensions? is that going to have any factor in the fed delaying them? reporter: that is a very interesting question. we know the high anxiety is having a big impact on the stocks, bonds, and the dollar. there's so much geopolitical uncertainty. what is going to be the response to north korea? what is going to be the response from north korea? we had the french election coming up on april 23. it is a close horse race. if you look further, if we can't get a budget deal, there is a threat of a government shutdown. let's look at another chart. 7828, a financial market stress anxiety index. it is volatile, but we are back

out to the highest for the year. remember in early 2016, the fed was on course for four interest rate increases. market volatility stop the fed. fed, theowed down the vote on june 23 in the middle of the summer. it is one more thing the fed has to way. in june there is the main meeting, but there's plenty of time for the uncertainty to settle down. the way the world is going, i do know -- do not know if i could bet on that. betty: it is hard to bet on a lot of things. kathleen, thank you so much. we have big bet -- names coming up to shed some more light on the situation, including on interview with the kansas city fed president. that is at 10:00 a.m. if you're watching in new york. publishes itsmf health check on the world economy, we will hear from his

chief economist. after that, the l.a. clippers owner and former microsoft ceo is going to be live here in our new york studio. you have got to stay tuned for that interview. i don't think i will be up at 2:40 a.m., but i watch later. south korea's former president has been charged with bribery and abuse heading the state for trial that could and in a long prison term. now the chairman of another group has been indicted in the same corruption probe. let's get more from our asia government editor. first since on, now another company. this has been a very difficult year. they've been facing retaliation from china over the deployment of selling land for missile defense systems in south korea.

they have been taking a hit on the chinese business. now they are dealing with the latest indictment. there is also a succession struggle. yvonne: is anything different we should look out for in this case? reporter: it is more of the same. it is part of a big network of money for favors that is allegedly the prosecutors that took down the president. whatlotte group did is samsung did, giving money to the president and her friend for special business favors, this was a duty-free license for one of their buildings. betty: you mentioned there was also drama on succession issues. what is going on there? reporter: the two brothers are fighting over control of the company. his 90's now into and is not going to be around forever. they're looking at who is going to take over. it is adding to the uncertainty

over the company right now. allegationlot of swirling around about bribery. there is a separate case in addition to this one. there are a lot of issues that the company is dealing with now that are distracting them from getting on with doing business. yvonne: not great for shareholders or the business at all. thank you for joining us. up next, netflix making international gains. provedmpetition in asia too much of a great ball for the streaming ryan? this is bloomberg. ♪

yvonne: this is "daybreak asia." a quick check of the business flash headlines. on alaska's north slope is no longer leaking.

it was discovered on friday and cap. environmentalists say the well is out of control and what the authorities to investigate. it is well below the 1980's peak of 2 million barrels a day. yvonne: the man who cofounded apple with steve jobs is confident the company will still be on top of their game in 60 years. steve wozniak says the company should always be looking for new growth areas and apply the company's interest in autonomous cars. facebook --ogle, these companies will still be huge and large an ongoing. the trouble is, you get to a where 60oint of well years is too soon at time and it could go out of business. just: singapore could it

added a new technology billionaire. he is planning to invest $109 in southeast asia within five years he said he is frustrated with regulation in japan as well as the education system there. he has relocated to singapore. he is the younger brother of a softbank leader. all these billionaires. netflix is higher in trade after an initial fall after slower first quarter user growth than analysts had expected. still millions that they are growing by. lucas shaw is joining us now from los angeles. we are a bit closer in asia trade right here. competitors,n the if netflix has any competitors in asia and their business in asia. how are they growing in that region? asia is the biggest trouble

spot for netflix all around the world. inflix is doing phenomenally the u.s., fairly well in latin america, very well in western europe, but asia has been a slow go of it. they had admitted it to me. the c eo has said they have a way to go. in a letter to shareholders to go they said asia, the middle east, and africa are slower. one, because they are different where netflix normally operates. in any time to develop it. betty: is the content? that they do not have content that is cater to the asian viewer? >> that is one of it. netflix is expensive for people in india. netflix is not lower its price genetically in places with large amount of lower classes. part of it is acceptability. you need a high quality of

internet in order to stream netflix. that is why late last year please introduced the ability to download and have off-line viewing. part of it is content. --flix are still figure out figuring out what people in that area want to watch. they have a three-pronged approach to figure out how they can improve and how they can compete with local players that have popped up in different places. yvonne: you talk about local players, they are quite diverse. inre is one called iflix malaysia. you have netflix want to be in china as well. his there anyway netflix can catch up to these local players? >> maybe not in mass numbers of consumers. cheaper a much proposition. they do not want to spend as much on original programming, at least not great long time. if netflix can get enough subscribers paying a higher

rate, from a revenue perspective they could be as meaningful. mark.is the big question u.s.net companies from the have a hard time making it. i would anticipate it that the local players there would dominate the market for the foreseeable future. yvonne: take a look at the company itself. we have heard the growth story about spending money on original content, but do investors care more about profit and more of a mature company? >> not yet. 's has tried to push this idea about caring about profit, operating margin, and revenue whenever subscriber growth is not what they have hope. thatsts still fixate on because if you listen to the ceo of netflix, he brings up companies that have a billion

users as his dream. he wants for her journaling, 500 million, 600 million customers in as long as that is the goal, that is why you are investing. $149 a not investing at for no reason, you are investing because you think it will get to 500 million users. there --etitor out what are the big foreign competitors? who gives them the biggest run for their money? jack ma? globalerms of the marketplace, other than reed hastings making the comment that sleep is netflix is biggest competitor. in the specific market of online streaming, amazon is the biggest competitor because of the hits

and because they are operating everywhere. it is the only company that has gone head-to-head with netflix everywhere. in specific markets, there are people there are -- they are more worried about. if they ever get in china, it would be alibaba and others. elsewhere, it becomes more of a regional question. hbo is a big competitor for , as is thethe u.s. rest of the tv business competing for shows and talent. in europe, a company like sky. in africa it might be a certain company. it breaks down on a regional basis. thesouth america a would be big telecom companies in south america and brazil. betty: so not one big global looking at all, by any means. they keep forgiving us that perspective on netflix and the streaming wars. will getlibaba involved in a bidding war. we will look closer at that deal just ahead.

this is bloomberg. ♪

betty: the bidding war for money gram is on hold as euro net says there are reviewing a improved bid. they offered $18 a share for money gram on monday. we had a reporter here with more. what is the state of play? is this deal done? what is going on?

higher the deal is 36% than what was offering. this makes the deal more attractive. even money gram has said that moreview this deal as attractive. it is pretty much a closed deal. euro net is trying to say that they believe that the u.s. draw upnt will try to this deal. in terms of pricing and whether board with anon financial, that is all set in stone at this point. yvonne: it is interesting because your own that's offer was 15.20 on their and. it are any indication that they will have to of the anti-? at this point all they can do is raise the flag of the potential security issues and issues of whether and financial could lead any information.

they have said that on that front they are firm in terms of protecting user data and how ,hey are using the servers keeping it in the u.s., and protecting it to make sure that everything is going to take. that all the servers are going to stay in the u.s. yvonne: possible political obstacles. financialfor that ant and money gram potential deal. that's it for us on "daybreak asia." let's look at what is coming up. the vicee have president taking his to her of asia, going to japan. also, out of pyongyang we had geopolitical concerns running through this product the world. donald trump and his pledge to do something about north korea.

we have prices out of china. a head of property research having a look at what is going on there. we see further growth will a cop -- when it comes to housing. betty: a great lineup there. what other guests do you have? rishad: we have a currency trader who will be talking about the geopolitical situation. and then is the dollar rally over with. then does singapore need a third derivative extension. the head of the london stock exchange is live. that is in about 15 minutes. he will answer that very question.

haidi: at 9 a.m. in hong kong, 11 p.m. -- 11 a.m. in sydney. rishaad: i'm rishaad salamat from bloomberg asia headquarters in hong kong. this is "bloomberg markets: asia." ♪ haidi: trade talks and tensions. mike pence goes to japan on part two of his trip to asia. rishaad: regional stocks extending gains. new york has the biggest gains in six weeks. haidi: fidelity and guaran