♪ >> 8 a.m. here in hong kong. i'm yvonne man. on friday is declines. the biggest one-day swing in a year. traders are concerned about the great tax debate in washington. a capital uphill battle. and i am betty liu here in new york. just after 7 p.m. on this thursday evening. president trump taking his message to aipac. we are going to have a touch of

retail therapy as we just talked about. alibaba single day features millions, raked in billions. we will be live in honcho. ♪ yvonne: betty, not sure how much shopping president trump is going to get when he had to vietnam. he might be missing out. .e is expected to head in their tweeting out from beijing. meetings were very productive on both trade and the subject of north korea. he is a highly respected and powerful representative of his people. it is great being with him. betty: a lot of warm words exchanged during this today visit. when it came to tangible results

that wereion of deals announced. not much outcome. it was really quite interesting to see president trump tone down some of that rhetoric. we have got to remember that i is coming off at the elevated level. he has more leverage against president trump. the kind words from trump's tweets have a little more meeting behind it. he is finding himself at a more disadvantage against president xi and see how different they might be. in the meantime, speaking about the conversation. >> saudi arabia planning to cut

oil exports to all regions of supplies as opec's tries to clear the global. shipments will fall by a hundred and 25,000 per day. deliveries to the united states will decrease month on month by 10% in december. bloomberg is told wealthy people in saudi arabia are moving abroad and out of the gulf. told investors are liquidating holdings and that some are talking to banks about moving their wealth overseas. saudi authorities say investigations show much money has been missing in corruption. billshan $250 billion of most of them are old news. boeing deal for 300 planes,

are largely for planes included in other orders since 2013. int deals are nonbinding agreement. recovering from initial after our slump, as news of an apt free streaming service rope. raising investment on parks and online services. q4 earnings missed expectations. following ad sales, and weak movie debuts. warned that fiscal 2017 would be an anomaly. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney collins, this is bloomberg. thank you. amidst all that debate perhaps a lot of jitters. as we wrap up the trading.

japan having an ugly start so far. betty: ugly start of the session in tokyo. investors are reminded that investors are a one-way trade. plus we have oil cuts to contend with. trump's leg of his asian tour in vietnam. taking a look at what's going on with the nikkei. today's lunch. -- a two day slump. it is the most intense price swing since april. take a look at what is going on with soul. down 4/10 of a percent. .t could snap i wanted to take a look at what is going on with the ringgit. in 2018.rate hike it is rising for the straight

session. it sounded more confident while downplaying recent pickup in inflation. the aussie dollar is study. aussie shares are halting a three day rise. holding above the 6000 level. have oil prices also on the back foot. thank you for going through the markets right at the early going. the great tax debate has moved one step forward. the house ways and means the gop tax plan. their republicans unveil own overhaul. bloomberg editor jodi schneider joining us now. incorporate tax rate down to 20% but it does include the delay down until 2019. is this 20% rate going to stick?

jodi: it looks like it. both chambers have agreed on it. this has been in the plan since the white house came up with its talking points on tax overhaul. so 20% probably isn't the problem. probablyear delay isn't a huge problem. what are likely to be problems -- because in the end both chambers have to pass the same bill -- are some differences in more specific things between the bill. in the senate they can't afford to lose many republican votes. no democrats are supporting it at this point. betty: very tight indeed. -- they are bracing for debate points. what are the most difficult points to get through? betty: this is where it gets

tricky. can probablyambers agree on that. when you get specific, you can start losing votes. on state and local tax deductions, the house bill limits it to $10,000 per year. the senate bill gets rid of it. republican. in the house there are a handful of members who represent states like new york and new jersey, -- that is are popular tax rate. they will have trouble defending that vote. again, they cannot afford to lose too many people. will fightdustry very hard. once lobbying gets involved it will complicate the process. with the course timeline, there is the threat of

a government shutdown in december. is that enough of a reason to get the gop moving? there are all kinds of reasons. we are starting to talk about 2018 and possible challenges to gop control. they want a quickly. they hope by doing it quickly, there won't be much time for the lobbying and outside interests to get involved. potential shutdown with the budget, no one is talking about it quite yet. there talking about the bill. it is complicated in getting anything done quickly in congress. it is tricky. betty: the last thing they want is controversy. we did see that with the alabama senator.

with the allegations of sexual harassment. how much is that going to be detrimental for the gop party? jodi: it certainly a complication. race that isate going on. that is not something they were worrying about yesterday. now it is in the news today. that could be a potential distraction that they do not need at a time they are trying to pass complicated inflation. of course, mitch mcconnell saying that more should step aside. get more on the roundup of this story on today's edition of daybreak. mobile onable on your the bloomberg anywhere app. you can customize your settings to get the news you care about. this is bloomberg. ♪

>> tgif. this is daybreak asia. yvonne: i'm yvonne man in hong kong. international correspondent is there for us. good morning to you. a lot of issues when it comes to north korea. what is going to be the top priority at aipac this year? doubt trade. seepundits are waiting to what trump has to is say. is that trumpote is appearing, is attending this apec summit. wereoo long ago, there

rumors that he would not attend. that is significant. it shows some sort of commitment , some sort of engagement. the leaders here are waiting to see what his policy would be in this part of the world. let's get some insight perspective from the former u.s. ambassador to vietnam. this is an important trip for trump to show he is committed to this part of the world? >> absolutely. there are two or three things that he wants to do here. wants to show asia that the united states is a pacific power and wants to remain in asia. he will also talk about economics and trade. everyone is interested in what he will have to say. >> so he is not liking trade agreements,

but he is not doing bilateral either? >> most of us are hoping to hear what his grant dayton is for the region? >> is there a vision? >> that's what a lot of people are saying. , doing has no vision everything on a transactional basis. his opportunity to show the world that he does have a vision. that he believes in there, open, trade. at 2:30 p.m. we will find out what he does think. >> there is a 60% chance that he will disappoint. what are the implications of that? >> it depends on what disappointment means. if he comes out and says that , it will be ass terrible disaster for the united states. we believe they are quite the

opposite of being useless. they are getting even more useful the day. is note united states taking as much of a leadership role as they have. we can talk about many of the issues that trump says are very near and dear to his heart. fair trade. how do we balance off the people who have not had a voice in trade going forward? there are a lot of reasons for him to actually want to engage here. think he is going to disappoint. i think he actually will come up and say that multilateralism has a place, but it is not for him. he believes that working through things like nafta, bilateral basis -- he has more leverage. the jury is out on that. we will have to wait and see.

i myself prefer multilateralism. is the sense you are getting in terms of security issues? will the u.s. be engaged in this part of the world? he does not really want to be a big part of that. the south china sea is something that probably keeps general mattis up late at night. i think that is a sensitive issue, and one in which the united states has some very important interests at heart. freedom of navigation trips around the region, i know that general mattis is doing a lot of talking about the south china sea. right now, the focus for trump is north korea. he is very laserlike focus on that. i don't know that there has been a lot of discussion on anything but that. coming here, there may have to

be more discussion on things like the south china sea. particularly here in vietnam. we have a robust relationship with vietnam that has grown over the years. we are doing more and more exercises with the vietnamese. , wethat the embargo is over can sell weapons to vietnam, i would think the president might be talking about that with the prime minister. there is a sense here that asia-pacific economies are talking to the two big giants. will nations have to choose eventually? >> the united states for a long time has tried to make it -- to try to have a relationship with southeast asia so that countries did not have to make a choice. there is a big world.

there is enough room for all of us. our objective has been to make sure there is enough space to let the southeast asian nations to decide for themselves. i thought it was interesting that xi said that now there is a choice. there is the western way, or the united states way. and now there is capitalism with socialist characteristics. whatever that means. how data and's are going to interpret that, could give us some indication as to where we are going in the future. i don't believe they want to make a choice. we are certainly not going to push them to make a choice. >> is there any asian leader influencing trump in a positive way? abe was one of the first to influence trump.

abe, particularly in these elections, is showing himself to be a global player. he has been traveling all over the world talking about japan, kobe a. --oda.e a tpp11.taken a lead in he is stepping up as a good proponent, a good spoke system -- a good spokesperson. i think that he is playing more of a role in terms of stepping into that vacuum that we left hen we lefttpp. i think we can look from more from him. not --day here and do

big day here in danang. we're going to have more big guests joining us from aipac. david cunningham will be joining us later this hour. at 8:40 a.m. in just a little bit. ceo will join on bloomberg markets. this is bloomberg. ♪

>> this is daybreak asia. betty: i'm betty liu here in new york. apple has been trying to break into the video content. film and television are very different from music. all is not lost.

an idea that could solve this problem in one sweep, by netflix. >> apple has discovered moving into the video content side, it is a much more challenging game. they want to participate in the service and fee-based side because that is becoming a growing business for them. they're very much lagging behind other players like roku and on the content side, amazon and hulu. seeing the same leverage with the film intelligence industry. let's bring in lucas shaw. how likely would we see a tie up like that? a rumor that has gone on for years. the bigger netflix gets, the

harder it gets for apple. apple wants to by netflix, why would they start a studio in-house. i'm not saying it's impossible, and it would make a lot of sense , but it seems to be trying to build rather than by. >> it makes sense in a way because they have this huge war chest over $250 billion. should netflix and amazon be scared because they have hundreds of billions of dollars to spend? >> they are scared for that reason, because the show they , they committed to 20 billion dollars. they outbid netflix for that show. that one case is a reason for netflix to be scared.

but the ceo of netflix has been clear in his statements. he doesn't think that companies ase apple are as committed he is. he is more afraid of companies that will go hard at it. right now, it seems more like an experiment. as long as it is an experiment, he has less to worry about. >> it's an experiment, but given how much cash they have, if there is still a lack of a strategy it seems for apple. are we getting any indication for the money they are spending on, the directors, the staff, the shows. are we seeing any more decisiveness coming through? : the strategy right now boils down to potential hits with the names that have broad appeal. they don't want edgy shows, they will not make house of cards.

if yount to show that walk into an apple store, you would feel comfortable having your kids the at on a big green. ,here is a sweet spot for them but it is not as exciting as we have seen from netflix, amazon, and hbo. as far as how the shows will get out, or what you will pay, there is not much of a strategy. i assume the first shows will be available to anyone with an apple device, but where, i do not know. >> early indications of this reese witherspoon, jennifer to man show, it speaks betty in particular. betty: moore you, then me i think. yvonne: that's for sure. it is all about morning television here at daybreak asia. you can be jennifer aniston, i'll be reese witherspoon.

were going to be live and hong joe. more on that. ♪

yvonne: happy friday. it looks like the clouds are gone. 830 in singapore right now. i'm yvonne man in hong kong. betty: not a bad way to start the weekend at all. let's get to the first word news with courtney collins. trump's up, president tour of asia rolls onto vietnam for meetings and speeches. present hised to vision for a free and open vision.

we are the importance it plays and america's economic prosperity. danangeaders will be in and expect that trump will meet with put in. the key provisions on the individual side include retaining seven income tax brackets, but the rates would change slightly. with a top rate of 38.5%. it was outlined in a memo to gop senators. area economy is in the best shape for almost 20 years. it is time to prepare for a slump. s agree that more are needed for crises. taking a rather bleak

view. >> that would be very personal view. i think we are encouraged why the way the economy continues to grow. mostly so far, so-called soft nature. it could be stronger. that would not surprise me. courtney: none for guiding economic policy behind the scenes, seems destined to stop for -- step into the sidelines. beijing has announced a new regulatorsverseeing , leaving liu to take over. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney collins, this is

bloomberg. we've got some breaking news from australia. a focus on inflation. lowering their forecast area paul allen has the main points of this. paul: as you mentioned, i slightly lower expectation for inflation. one of the headlines coming out of this. we are seeing the aussie dollar fall a little. underlyingsaying inflation remaining steady. a slight downward revision there. the growth rate also appears to be revised downward. 2.5% for risk of fiscal year 2017. aboveing before getting

3.25% by december 2018. the underlying employing the outlook. changed. the bank has said they do not expect to reach that label -- that level of employment for a few years yet. the bank or shadowed a lot of this on tuesday. indicating, there was likely to be no substantial change to the economic forecast. with the exception of a slight tweaking of those expect haitians. -- of those expectations. yvonne: take a look at the aussie dollar. a bit of a dovish till. atty: let's take a look that. one aussie dollar getting you less than 77 u.s. cents.

it is set for its first weekly gain. aussie has been fairly range bound. they have not been able to reach that for a while. shows japanese stocks are sliding the most since august 18. we are keeping an eye on trading volumes. retail participation hit a one-year high. the nikkei 225 is set for a third day of losses. utilities are falling over 2%. energy is the only sliver of green. taking a look at some movers in falling, losing as much as 8% on reports it is planning to raise 600 billion yen in capital.

tire makers are continuing to slide. bridgestone falling over 6% after cutting their profit forecast. falling the most since may. the company made a loss last year, but it is set to return this year. the company does anticipate metal prices to fall in the second half from current models. -- from current levels. betty: thank you so much. so many decliners we are seeing in the early going. ander than thanksgiving could beay, alibaba's generating a record $24 billion in sales. , it seems like

these numbers -- when the numbers can't get bigger, they get bigger. what is the twist on singles' day? tom: the annual homage to the consumer gods. this is a global event. it is bigger than cyber monday and black friday. it is a huge event. single day largest focused on online shopping. sales willstimating come in at about 24 billion u.s. dollars. twist,said, there is a that alibaba is now tying into its network, about 6 million mom and pop stores. they are allowing these stores to integrate their technology to be able to line up on their shelves, goods that they know are popular. increase this data

feedback loop. then they can get a better idea of what their customers want. this, is a new religious exports. this is the backbone behind this massive e-commerce day. thatogistics company drives alibaba's. they are injecting $15 billion in over the next five years. presidentn with the and asked him what the singles' day event meant for his company. take a listen. it's not just for the alibaba group. it is for the whole it industry. stress test.

it will help us to improve our ability to deal with this kind of volume. tom: so a big push is the automation of the logistics industry. china is undergoing something up a revolution. automated warehouses across the country, with robots. they have the largest in southern china with about 150 different robots. they have international expansion plans as well. it is a big, ambitious push. maybe talk a little more about their international ambitions. a lot of logistical difficulties, dealing with the traffic expected to see this weekend.

what sort of model do they have to expanding abroad? m: what they told us was a big part of the focus is southeast asia. that is where we have seen alibaba expand its footprint. building out more automated warehouses and teaming up with partners. the way they describe it is it is an ecosystem they are trying to create. this is about connecting online and off-line retail sales as well. of course, there is a big push on data for them. this brings up huge amounts of data. there are spending heavily on rmb as well. --r&d as well. investaba and china will for a larger scale.

also for the development of hardware housing. local logistics structures. r&d.spending on they are looking to expand in the tech sector. look forward to a busy weekend for you. more about the retail market next. whether alibaba and amazon are disrupting the business. this is bloomberg.

>> this is daybreak asia. betty: i'm betty liu here in new

york. the anon is in the spotlight this weekend. our chief international correspondent for southeast asia is there. among the 21 trading partners will be key in the discussions, right? >> that's right. .lso, key to discussion is tpp they are trying to push through. now that the u.s. has with her drawn. some provisions will be suspended. hours we still 24 still have to wait and see what happens. perspectivet some from david cunningham. he joins me this morning. david, all eyes on trump. asia each.be his key what are you anticipating? >> i'm not sure exactly what to

anticipate. watching him so far, many messages seem to be moderated a bit. no fire and fury. hopefully the administration and president trump are getting an appreciation for the complexity, the size, and the scope to the u.s. and trade. >> are you more encourage now compared to a year ago? >> i am encouraged in many different respects. when he was elected, when the administration came in and said we will do this, with nafta, with trade, with china -- many of those things have been moderated. the importance of the relationships have been appreciated. >> do you think there will be a better understanding now that trump has done his asia trip? >> that is an important part of the equation.

that he is spending so much time in the region. fedex, asia is very important. what is driving this optimism? >> we've been in this region for a very long time. since the mid-80's. we have seen ups and downs. today, we are seeing growth rate going from 2.5% to four percent. the asia-pacific usually grows at a multiple of that. -- we seeing our numbers are expecting a record the season. million percent up. a strong growth by e-commerce and traditional trade. reflectedthat being in asia? >> it really is an middle-class story.

10 or 11 years ago, the anon hosted the summit. , in that 10 year. , exports have grown. parts the most important to me, you have seen poverty level plummet. what is that? that is the small to medium-sized enterprise. that is the benefit of trade. >> given what you have just said, what are your future plans in asia? of things got a lot going on. on the fiscal side, and the physical side. we expanding infrastructure around the region. in shanghai, we are opening later t this year. we're building and expanded airport is a witty.

-- airport facility. doing, wehat we're are creating fedex delivery manager. .ou can redirect shipments you can pay, in china, versus having to use money. it's about convenience and efficiency. it's about ease-of-use for our customers. >> security becomes an issue. is being done to ensure that doesn't happen again? it's cost the company a lot of money. >> it was a big deal. what we focused on was hardening of the systems. we're back up and running. we have commitments to the marketplace and to our board to 1.2ove our profitability by

to $1.5 billion in 2000 2000 -- .n2020 that attack did not infiltrate the fedex system. having said that, would it make sense to seek insurance against cyber attacks. ? that, and looked at we continue to look at it. insurance in the past would not have prevented, or have funded the attacks. in churnse be industry. >> we thank you for your insights. one of the ceos who are here. putinent trump, and also

will be speaking to the gathering here. yvonne: thank you. great interview there. if you missed out on some of that conversation, feel free to go to our tv function. you'll be able to watch us live. you can go back to previous interviews. you can also pick up part of the conversation. you can send us instant messages during our shows. check it out at tv . this is bloomberg. ♪

betty: this is daybreak asia. yvonne: i'm yvonne man in hong kong. we are watching. it is friday -- it is fighting to survive. above for the year so far 3 billion. let's go to our asian metals editor. singapore, the saga going on for some two years now. were there any surprises? flagged of the loss was two weeks ago. one of the things we will be looking at is the shrinking cash available. cash and continuing operations $1.5 million.

towas down by more than 40% 800 million. this raises the whole question as to whether or not the company is generating enough cash to manage its debt going forward. so what is the company's strategy now? james: its assets sales. it is talking to its holders. trying to raise more money from its underlying business. we had the sale of the gas and power unit. oil recently of the business. it is still uncertain how much money that is going to generate. was saying yesterday it could generate 560 $570 million. it's a moving target at the moment. it's also looking to sell other

assets. , foruld see some assets instance some aluminum operations, which may come under the hammer. like assetsounds sales are continuing to shrink. what is the outlook for the company now? has 3.7he company billion net outstanding debt. in0 million of notes due march. a $1 billion bank loan. 20ere are bonds maturing in 20 and 2022. going forward, there will be talks with creditors, talks with holders, and more assets sales. yvonne: thank you so much. on the continuing situation.

we're going to stay on commodities. we are going to be drilling down into commodities later. special onorks shale. the history. the players. the environmental effects. it airs on saturday at 4:00 p.m. in sydney and 1:00 p.m. in hong kong. betty: alix steel working very hard on this special. flash headlines. first profits. gaining traction. one dollarofit was and $.42. rates improved. future investment will drag on earnings into next year. >> macy's optimistic.

management gets benefit of the doubt. shares were up. the most in over a year. after reaffirmed fiscal guidance cap margins steady. e-commerce and if loyalty program fueling sales. planning and investment in a crane company in sick more -- in singapore. 29% of tax on holdings. stand chart is still trying to make money from high risk, high equity. that is it from us on daybreak asia. a quick look on what is coming up. tour of asia.p's the final leg in vietnam as well. >> were going to be looking at

all of that with singapore. whether heng at managed to achieve his goals. did he get his unfair trade deal sorted out? the jury is out on that one. we will be back at the apex summary. talking. in this part of the world, it has been in a bit of a retreat. >> what do they do about amazon? >> exactly that's the point, isn't it?

in hong kong.ere in singapore, and 8:00 in the evening in new york. haidi: this is bloomberg markets asia. rishaad: japan leads the asia-pacific. biggestlling after the swing in one year. haidi: