♪ >> republican hopes of delivering reform by the end of the year. >> that set stocks to new highs while the dollar extended its gains. the snp rising the most in more than two months. faces hiswell confirmation hearing, telling the senate that it is coming together for a rate hike next month. betty: north korea fires its first missile in two months. president trump says he will handle it. >> taking care of the situation,

what does that mean? hello and welcome to "bloomberg daybreak: asia." i'm haidi lun. betty: i am betty liu at the mobile headquarters in new york. we've got one i clearly watching what is happening in the korean peninsula. in the meantime, we are watching what is happening here in tax reform and u.s. markets. it looks like tax or formal possibly passed by the end of the year and markets will move higher,. i want to pull up a chart that shows perhaps a little bit of a warning sign. it just shows you the valuation of snp stock versus the euro stoxx 600uro companies. you can see how the valuation so muchinues to widen, so that it has some investors saying even if stocks rally, maybe there is better value in other parts of the world, particularly europe. maybe it is europe's time to shine next year.

haidi: absolutely. it is interesting, this idea of momentum and sentiment driven rally we have seen. haveore record highs we seen overnight as we get closer to closing out the year. usuallyet period between thanksgiving and christmas, but not letting any of that sentiment come through from north korea affecting positivity. we are seeing a positive open when it comes to aussie markets as well as japanese equities, the sessions just waking up in asia. let's take a look at new zealand. the kiwi dollar bounces up about half a percent in the wake of a statement saying they are loosening mortgage lending restrictions as part is -- of the review. trading in australia is just getting underway, the aussie

dollar also one of the better performers. we see a little bit of an inching up when it comes to the dollar index. asx in sydney, stocks higher about a quarter of 1%, checking higher when it comes to futures. we are counting down to the opens in tokyo and seoul. these are key markets given we see some of these assets falling, or reacting, in the wake of that overnight icbm test from north korea. largely watching dollar-yen, holding steady at 111 after selling in the immediate aftermath of the headlines. let's take a closer look at the u.s. market close, where despite the north korean missile firing what appears to be a few obstacles on the road to tax that new record highs. su keenan joins us. reporter: earlier, we looked

like we were on a record rise. we had some good news on tax reform, although it looks like there is debate ahead. a lot of focus on the fed confirmation hearings. that has banks on a tear. they were up 3% to 4%. some of the big names and regional banks moving higher. looks like pretty solid confirmation, a rate hike in december. in general, there is a view there will be a more hawkish person at the head of the fed. snp -- s&p 500 index, the biggest gain in more than two months. that had a lot to do it the senate committee advancing the republican tax bill. let's go into the bloomberg on the undercurrent, which was the north korean missile test. right, you can see a

huge rise in the number of tests. it shows we are on a trend that is more, not less, of this geopolitical conflict. that is something on the side of this rally that investors are keeping in mind. haidi: we are also looking at commodities. copper taking a slight, but oil in particular, as we each -- inch closer to the vienna meeting. reporter: we had been at a two-year high. we were fluctuating a bit at one point down below 58. we have hit cross currency here. not just on supply, but a growing increase in the number of output in the u.s., but also dealcern that the russian for the supply cuts will not come together so quickly. it might get extended further. bulls toausing the have some doubts, oil a bit

under pressure. copper is a separate story. ls taking a bit of a move back. hours,is rising after but in the regular session was definitely taking a hit. there are conflicting stories about a two-week strike in peru affecting output. the picture from copper is not clear going forward. back to you. haidi: thank you so much for that, su keenan for us. in the meantime, let's get you up to date with emma chandra. emma: south korea is said to have staged what it calls a precision strike missile exercise in response to the latest launch from the north. pyongyang's earlier icbm test is north korea's first response to president trump's decision to label them a state sponsor of terrorism. military chiefs say it reached about 4000 kilometers and altitude, 1000 kilometers across the sea of japan.

in london, british and european negotiators have reached an outline of the brexit divorce bill, but the final some is yet to be sealed. the telegraph reported the agreements and says the figure will be between 45 billion euros and 55 billion euros. bloomberg sources in brussels say agreements have not been reached, but talks are progressive -- progressing. the bank of england has warned about brexit saying anything but a smooth transition could mean financial disruption. spoke afterk carney the latest stress test. barclays and rbs are considered to be in the weakest position. >> informed by the stress test theour own risk analysis, banking system can continue to support the real economy even in the unlikely event of a disorder sleep -- disorderly exit.

the international airport is to remain closed, leaving thousands of tourists stranded, unable to leave the island. the volcano may a route that anytime. hundreds of flights have been canceled. lava is rising in the crater, and 100,000 people in the area has been told to evacuate. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. haidi: thank you so much for that. back to our top stories. north korea has fired the first ballistic missile since president trump labeled the country a state sponsor of terrorism earlier the month -- this month. they called it a precision missile exercise. president trump had this to say. president trump: a missile was launched a little while ago from

north korea. i can only tell you that we will take care of it. we have general mattis in the room with us. we had a discussion on it. this is a situation we will handle. haidi: with us now from congressn is bloomberg editor. we heard from the president saying the situation will be handled. what have we heard from the other parts of government? reporter: the pentagon just put out a statement confirming the missile test. they did say that it flew higher than any previous north korean missile. that would probably put it in range of the continental u.s. there is an increased threat from the north korean missile launch. there has been no word of any movements of perhaps aircraft carriers or any other military assets into the area, other than the south korean missile test which you mentioned. the next steps are still a little unclear. did not expand on what he

meant by "we will handle it." haidi: right. because of that, we are all trying to decipher the tea leaves. betty: of course, lots of people have been deciphering the reactions and machinations in washington about tax reform. does it look like it may actually passed by the end of the year? reporter: they got a lot closer today than they were yesterday. there were several measures that were endorsed by president when he went over to the capital to meet with senate republicans, including a proposal to stabilize the health care markets in the u.s. that was key to the support from senator collins and lisa murkowski/ . they were holdouts that had sunk the obamacare appeal earlier in the year, and they were thought to be holdouts from the tax plan, but they have gotten some

assurances on that. ron johnson, the senator from wisconsin, did not throw up any roadblocks. the next step is moving it to floor. there will be some changes made. there are a couple of other hitches that have cropped up since. betty: another day that will bring a lot more headlines. thank you so much. our bloomberg congress editor. ,epublicans hope for tax reform and hopes are rising as president met gop leaders on capitol hill. he says he's confident the bill will go to a third -- a vote by thursday. we are joined by micro strategist michael hansen. is this priced in? >> we saw strong reactions. a lot of it is priced in, but i

don't think it is completely priced in. the big hurdle will not be getting the senate to agree, it is getting the house and senate to agree with each other. great point. a they have to iron out their deals together. however, there's a lot of questions about how beneficial this will be for companies. so far, it seems that companies are going to benefit from this bill. i want to pull up a chart here. it shows you how already investors are making some bets here. they believe companies that are going to reinvest in capital expenditures, they have already been bidding those companies up in anticipation of revenue from tax cuts. that is compared to those who have been traditionally buying back shares, issuing more dividends. they have not performed as well. does that sound right to you? >> it is an open question of how much investment this will actually spur. there was a meeting a few weeks ago when gary cohn was on stage,

and there were so few hands saying they would undertake investment. it depends on how it is structured, how it saves -- is phased out, all of this will matter. until we get that from the house and senate, we don't know what it will look like. betty: is there a bigger chance of a continued rise in stocks, or that we will see a major correction? >> a major correction seems unlikely, unless there are shocks. betty: or another missile. >> the market was not happy about that either. there were some rumors. i think the general trend in the market is upwards until either tax reform is done, or we get to the point where congress can't agree and the market finally gives up hope. either way, i think that is a ways off. haidi: are we overpricing be

optimism around tax and underpricing other events like the potential for a partial shutdown next week, given that trump tweeted about a deal? >> it is a risk and it complicates tax reform, it seems like. it is hard to imagine you will get the house and senate to a greet -- agreed to a detailed plan before december 8. they have to hammer out some sort of agreement. it does look like there are a number of sticky issues, and certainly some of the comments we've gone from president trump suggest that the administration democrats are not on the same page. this will be a bit trickier than the market is expecting. haidi: a wide range of outcomes. michael, stay with us. we will continue to discuss that. looking ahead, we are joined by

the former new york stock exchange ceo in the next hour. he's now a power -- we will get his take on what's happening in the markets. betty: later, we will hear from hiscredit suisse boss on outlook for the global economy. that is about an half an hour time. stay tuned. this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." i'm haidi lun in sydney. liu.: i am ready -- betty our global economics and policy editor kathleen hays talks about what she wrote about jerry powell. reporter: he has been on the board for five years and has worked in washington for five years, undersecretary at the treasury, working on domestic finance and more.

he has testified to congress and giving speeches. he already has a policy infrastructure when it comes to banking. he voted on monetary policy. one thing that was very interesting, one of the things i think everyone on wall street wanted to hear, what about the december rate hike? he said definitely the case is coming together. unemployment is low, the economy is growing, he sees all kinds of reasons to move ahead. but was interesting though in a discussion about inflation, he he's got a little bit of room to wonder what's going on. you can call it dovish if you want to, but he's paying attention to what he sees. let's listen to what he said. >> we don't see wages signaling any tightness in the labor market. there's no sense of an overheating economy or tight labor market. reporter: in fact, he said

wages, the fact that they are stagnant and flat, is a sign there is still slack in the labor market. that goes along with a sense that there's no sign of overheating. you can see the labor force purchase a patient rate of prime age men, 25 to 55 years old, you , he says that's another signal of slack. about the pathg and 2018, especially if inflation remains weak. one of the reasons we were he wased about health, nominated by a republican president, maybe the republican congress favored him, will he be influenced? he said he will be independent and the fed will be independent, including stephen mnuchin, who

was one of his biggest backers. he's very supportive of looking at regulations like dodd-frank, but wants to hold on to reforms. he is not taking on any big changes. haidi: thank you. michael hansen is staying with us. is this going to be a case of jerry powell being janet yellen 2.0, or is he going to feel the pressure of forging his own path and making his mark? >> it's an interesting question. i think it looks like right now that he's not advocating any major changes on the monetary policy front. he was very clear that the balance sheet unwind plan the fed announced, he anticipates fully supporting and implementing. it doesn't sound like he will do anything big on the -- on the regulatory front, he's more open

to making changes. he's not interested in a wholesale repeal and replace of dodd-frank. we know it is going to be data dependent. policymonetary perspective, the market is already heavily priced for december. the market is still a little skeptical of three rate hikes for next year. we didn't really hear anything to clarify that. one thing we particularly didn't hear was how the fed might react to a tax cut.yellen seemed to indicate the fed would view that as expansionary policy in the midst of employment, and therefore there were not additional rate hikes to ward off overheating. powell didn't say one way or the other. interesting an place where he will have to be accountable to the administration and congress in terms of how the fed will handle that.

betty: do you think it will be expansionary? >> i think it will be limited expansionary. there is evidence to suggest fiscal markets are not large. a couple tenths may be, at best. betty: it's interesting to see the market react in equities and the bond markets data that is out there. i want to pull up this chart. it shows the flattening yield curve. investors soond skeptical? >> the market is starting to price in fed rate hikes over the period where you had the decline. the curve is flattening because the short end is deepening. the fed is not the only game in town. other central banks are engaged in buying assets that has an

effect on global markets. to been the market seems excited about fiscal stimulus, not really pricing in a big deficit impact on rates at this point. that's an interesting disconnect. view: so you don't buy the that we are at peak rates and the bond markets are telling you that? >> i'm not convinced that's where we sit right now. betty: given that, if we continue to get data that is supportive of more rate hikes -- in fact, goldman's saying we might see three or four rate hikes next year, do you think there's a chance we might see a huge disruption in the credit markets and bond market, which could spill over into a tantrum? >> yellen was very good in avoiding debt and being very clear with her communication. the fed learned a lot with the experience with bernanke when they were caught offguard. my experience is that powell

will also be sensitive to those issues. conditions financial go both ways. if you do see signs that the market is concerned that the fed is making a policy mistake, fed officials will take that on board. betty: it won't be too late? -- that is the question. i think fed officials will be attuned to not just economic data, but to the markets as well. they don't want to be overreactive to the markets. betty: michael hanson, td securities chief u.s. macro strategist. don't forget, you can find in-depth analysis like this and today's newsmakers on bloomberg radio. tune into "bloomberg daybreak: asia" 7:00 a.m. hong kong time. download the app or access by bloombergradio.com. ♪

haidi: some breaking news with regards to the saudi crack downs. the saudi prince has been reported to released after a settlement deal with officials. we are getting this through the twitter accounts of a number of royal family members. his settlement is believed to be exceeding $1 billion. at least three more suspects have finalized settlements as well. he was the former head of the powerful national guard before being fired in early november. the second most powerful man essentially in saudi arabia. he has been held for more than three weeks at the ritz carlton. we are getting reports he has been released and was once seen as a contender to the crown. dozens of royal family ministers to beounded up and seemed aimed at strengthening the power

of the crown. we are getting reports from royal family members, and it does appear this has been part officials.ment with plenty more on that story to come. this is bloomberg. ♪ his is bloomberg. ♪

9:30 a.m. wednesday in sydney, 30 minutes away from the major market open in asia. betty: 7:30 p.m. tuesday here in new york, where markets closed much higher, the dow adding more than 200 points today. optimism on tax reform. a beautiful skyline here in new york. i'm betty liu in new york. haidi: and i'm haidi lun here in sydney. let's get caught up with first word news. chair nominee jerome powell says that case for raising rates it is coming together. he told a senate panel that while unemployment is low, he

has no sense of an overheating economy.his comments align with a more dovish wing of the som see -- the oecd has issued its latest global forecasting the world economy is growing faster than at any time in the last seven years, with more people finding jobs. however, it warns high-growth will not last and wages remain stagnant. the organization sees sustained expansion in the u.s. and euro area, but is calling on governments to tackle debt and do more to ensure higher living standards. households and corporations have reached record levels in many countries. particularly worrying are high levels and continued growth of corporate debt levels in china. given the importance of china to the world economy. reporter: indonesian media and real estate tycoon has told bloomberg he's not running for president in 2019 and will back

the current president for a second term. he pboc said he felt that he -- heusly thought he previously said that he felt inspired. >> i have to make it very clear here, looking at the situation today, i will support the current president for 2019. >> why is that? >> he has shown his ability to maintain his position in the middle. he stands for everybody. >> what you yourself run as vice president? >> i don't know. >> is it possible? >> i don't know. emma: a rare oval-shaped diamond has been sold for $32 million at christie's in hong kong. it went to an unidentified bidder just after a sale that lasted just three minutes.

sales lift up to the sales promises. they were expecting it to go for $42 million. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra, this is bloomberg. thank you for that. we are counting down to the market open in tokyo and seoul. -- keyets given events markets given events overnight. we were waking up to the news of north korean missiles. are we expecting to see a reaction given that the u.s. largely shrugged it off? shrugged it markets off, helping the s&p 500 climbed to record gains. we are expecting asian stocks to track that moved. emergingconcerns are around the latest publications.

might be more focused on the positives laid out before the. anxiety.y, we did see we did have the hang seng with little change, but we could see positivity for that market as well. taking a look at the board, we will see how futures in tokyo are pointing higher, as the yen is holding steady with little reaction to the missile launch, with dollar-yen traders focused on u.s. tax reform. we will also have october retail trade data today. the reaction is perhaps subdued, unless this will take a more sinister route. moon speak up.t

gold has been struck -- stuck in a rut. there are investor concerns and economic growth. what else could see gold shine? sophie: gold hasn't been able to break out of its recent trading range. a flattening u.s. yield curve will also prove a dampener for gold. gold futures continuing to point lower, as you see on the blue line on this chart. the yield curve continues to flatten. he doesn't see this offering -- does see more opportunities looking attractive for investors.investors consider economic growth against political uncertainty. ascing for gold has soft and well. 30 day volatility is holding near a seven-year low that we august.ched in

doesn't look like we are seeing many signs of concern in the safe haven space when it comes to the latest show of aggression from pyongyang. betty: thank you so much. sophie kamaruddin there. the u.k. and eu seem to be heading at last toward a brexit as the thornyeven issue of the irish border is a corn that must be crushed -- rossed. kathleen hays is more -- here with more. reporter: there have been so many clouds, especially the last couple of weeks, hanging over a possible brexit deal. according to web bloomberg news reporting has shown, the u.k. and eu have outlined a deal on the divorce bill. in other words, how much does it cost to separate? the u.k. is expected to pay for things like budget obligations

and pension payments. some say it is estimated up to $60 billion. talks are headed in the right direction according to officials. some people told bloomberg's that intensive talks are building on momentum. the u.k. has until monday to forge a deal to come up with something on the irish border, keeping it open. they don't want a hard border with the rest of u.k. and ireland for that matter. the foreign minister has also said that there's more reassurance needed here. they don't seem to quite have a deal yet they could put on the table. dublin apparently has almost an effective veto. ireland can step back and say no because they are one of the players here. they could veto any deal. ireland's eu commissioner has said he will if the border does not resolve to their desire.

there's a whole other political scandal over with the deputy prime minister. she agreed to step down. it had to do with a whistleblower case. brexit,the focus is on particularly getting the irish border settled. the stakes are clearly high, but according to mark carney, higher than ever. reporter: he seemed to double down on his brexit warning because he's so concerned that instead of a soft brexit, there will be a hard brexit. on was that touched the banks will need at least 18 to 24 months for a transition period. the deal needs to be done sooner rather than later to avoid economic pain. let's listen. >> a disorderly brexit what have economic consequences in terms short-term, in our

view for growth, slower growth, higher unemployment, higher inflation, lower sterling, those are the broad directions. pretty unappealing list. mark carney has been negative unbranded it -- brexit. one thing the bank of england is doing is increasing the countercyclical capital buffers to provide curve cushion in case the harder brexit scenario looks more present. i would say the latest news looks very promising. onresa may is having lunch monday. at the very least they will be about to announce that the brexit bill issue has been settled. maybe they will have an irish border deal as well. we will see. haidi: things are looking little

bit warmer. thank you so much, kathleen hays, our global economics and policy editor. speaking exclusively to bloomberg, he said the banks restructuring is headed into the final year at credit suisse. >> next year is the final year of restructuring. we are focused on management. we believe in personal financial assets. we are 17 in emerging markets and nine in developed markets. we think it is paying off. we believe in integrated strategy we have of the investment bank. we have the right side

investment bank. it is progressing well. as far as we are concerned, for a year-and-a-half of work, we have had good components. 17orter: you are targeting billion in 2018. what comes after that? >> it is a bit of a tricky conversation. that is something we will discuss. discuss publicly, but we did $1.9 billion of net savings and $1 billion in 2017. we believe that is competitive compared to our peers. fundamentally, my belief is that any organization should improve productivity. was to restructuring

reach a plateau at which we could evolve at a good pace, the pace at which the world economy is evolving. if not, you are falling behind. when you have to do a big cost reduction program it is because you are not keeping pace with .he industry it is more effective and less painful than having to do that. reporter: where do you see the growth coming from? you mentioned wealth management. you talked about productivity, then you need growth for revenue. >> we are very positive about the world economy and about the u.s. very positive about emerging markets. noticeably we are very positive about europe, which is new. ,e had the election of macron france and germany powering

the economy. for once, we have three major economic zones doing one at the same time. we have a major shift in the world economy. it can create a scenario where you have high growth with low inflation, because productivity fills the gap. if you invest in capital and productivity grows, you can get into a healthy growth scenario. , i think it has been well-managed, and the communication is very good to drive market expectations. when i said valuations are as high as they are, it is

important to take investors by the hand and not surprise him or her. i think so far, the central banks have done a really good job at that. we think emerging markets will be all right. and and a, we think the strength of corporate earnings and, cash sitting, and the availability of credit. the lack of availability was hindering them from growth. that is starting to shift. we can support currency and and and a ambitions. betty: that was the credit suisse ceo tidjane thiam speaking to francine lacqua. up next, the trump administration turns its attention to chinese aluminum. we will assess those options, next. this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." i'm haidi lun in sydney. betty: i'm betty liu in new york. -- commercements department has put aluminum at the heart of new trade tensions. we will leave watching prices. news of the probe came after commodities trading closed in the u.s. we have more at the wall with the bloomberg charts we need to know. reporter: thank you. i want to take a look at the share price reaction. exactly when the news of that probe actually hit here in the 2:00 p.m. our -- ho ur in u.s. trading. -- the day,f did century aluminum was up by more than 7%, hitting two week highs. it is chilling there is bullishness in terms -- it is showing there is bullishness and

what can happen. i also took a let -- look at what is happening. turns out there were no sales for either of these company stocks. the next bloomberg terminal chart takes a look at the aluminum premiums here. early 2015,that in we hit records for both the aluminum price in japan as well as the u.s. we are definitely well off of those lows. the white line is u.s. pricing. that is down by 4% here today. in japan, it is down by about 8%. bloomberg intelligence says this possibly could be squeezed even more because of more supply coming online from china. they say also just look at what's been happening this year. through august, it -- imports year.p by 5.7% year on

looking to what has been happening in terms of how it compared to other base metals, the yellow line is aluminum. ands up by about 26%, copper is trailing just by a little bit. china is the biggest consumer of china. iron ore is definitely down in the dumps, down by about 25%. goldman sachs says it could fall even further because of rising global supply. as for copper, that could also fall. chinesee falling demands. those are the three bloomberg charts you need to know, looking at what is happening with copper when it starts trading in asia. haidi: what a ride it has been for some of these industrial metals. a lot of uncertainties going into 2018.

we are waiting on numbers coming out of japan. they are expected to cross the bloomberg at any minute. let's take a look at how you can of my favoritene functions on the bloomberg terminal is tv . watch us live, catch up on previous interviews from the hours. or the past few do a deep dive into any of the bloomberg functions or the securities we talk about. you can also become part of the conversation. if you have any questions for our guest sore reporters, -- for our guests or reporters, send us a message. we had retail out for japan for the month of october, coming in flat. expectations of a modest gain of 0.2%, certainly down from the prime month of 8/10 of 1% we were expecting. year on year, retail trade for october coming in at -0.2%, also

missing expectations. quite a significant slowdown from september, where we saw growth of 2.2%. a little bit of weakness when it comes to the retail consumer front for japan. we will get more analysis on those later. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." i'm haidi lun in sydney. betty: i'm betty liu in new york. and future was supposed to be the electric car company that would rival tesla. they are struggling with bills,g debt and

potentially in the hundreds of millions of dollars if they can't meet targets for the next funding round. it's the latest in a round of problems for the investor, who once boasted ferriday would overtake tesla. what happened? selina wang has been covering this for us. what details did you learn about faraday future and what does this mean for the future of the company? beenter: faraday has struggling to raise a new round of funding for several months now. we reported in may they were seeking to raise $1 billion, and now they are struggling to raise even half of that amount. this line of funding is critical for several reasons. one of them is that if they don't raise this by december, at least $400 million lost in income immediately payable.that puts them in a precarious position .they already have about $100 million in unpaid bills. in addition to that cash crunch, they have also yet to produce anything more than just a couple of concept cars and prototypes.

this is all that came from a company that claimed to leapfrog tesla. they also claimed they would build a $1 billion game plan in nevada, which also has not come to fruition. betty: how does this fit into the context of his dwindling empire? reporter: faraday is the latest peace to start falling apart in this giant collapse. his goal was to create a, margaret -- conglomerate that would span multiple geographies and sectors. it came off the growth of video streaming in china, which is publicly listed. from there, he expanded into a smart electric cars, movie studios. crunch. he admits they expanded to fast. he actually stepped down as chairman of the publicly listed

streaming company to refocus on faraday. he reinvested hundreds of millions of dollars of his own capital into the company, yet we are seeing faraday fall into the same path many of his other ventures did. his u.s. business has almost all that shuttered its doors from the hundreds of u.s. employees it had at its peak. haidi: this implosion of let echo -- leecho was a sign. reporter: at its core, it is a lesson of the risks of expanding to quickly of a china-based company that was large and disruptive, that wasn't able to export their model abroad. it certainly isn't the first business that tried to bring chinese hardware to the u.s. and failed because of big traditional players. i think it's an interesting contrast to the fact that

giants have tech set up modest offices in silicon valley. the real focus is dominating the china market and then tackling southeast asia. they recognize the u.s. is already a developed market and there is not a lot of room for chinese players. they are trying to be flashy and made headlines, but do not have the profits or products to show for it. haidi: thank you for that, selina wang in san francisco. just the latest affliction when it comes to china's corporate expanding abroad. , theap of the top story firing of the intercontinental ballistic missile from north korea overnight. french president emmanuel macron condemning the missile launch. we also heard from south korea.

as we saw in the overnight session, it is likely -- we will have much more on the market coverage. this is "bloomberg daybreak: asia." ♪

♪ --asia-pacific stocks set to investors shrug off the latest provocation from north korea. betty: a two-month low comes to an end after north korea fires another ballistic missile. president trump says he will take care of it. >> jay powell moves closer to taking the reins at the fed. he says there is a case for a rate hike next month. low.: high sierra brought

the operating system has a significant flaw that could put data at risk. this is the second hour of "daybreak asia." >> and i am paul allen here in sydney. the big story today, north korea missile tests. just a few notes for physics fans. that missile flew 53 minutes, trajectory may have hit 2000 kilometers. if they aimed it at a different angle, that is enough to put washington, d.c. in range. betty: it is pretty scary seeing some of those headlines. but some of the markets did not seem to react that negatively to the headlines. the markets took it in stride in the u.s., and we continue to rise to these records, closing at the new, all-time highs. which makes you wonder, have a price did in?

-- have they priced it in? or have they been too dismissive of chaos? paul: president trump did say he would take care of it. feeling a little bit reassured? betty: possibly, we need to figure out what that means. let's get the first word news. >> fed chair nominee jerome powell says that the case for raising rates next month is coming together. he told senate panelists while unemployment is low, there is a sense of a heating economy. the labor market can become stronger without creating inflation worries. the latest global forecast issued, the world economy is growing faster than at any time in the last seven years, with more people finding work. but wages remain stagnant. the organization sees sustained expansion in the u.s. and euro area, but is asking them to

ensure higher living standards. corporations and investment has reached record levels in many countries. particularly worrying are the high levels of continued growth of corporate debt levels in china. given the importance of china to the world economy. >> the saudi energy minister said he is looking forward to a robust discussion with opec and other oil producers meet in vienna to talk about their output cuts. extended,g should be there is now a call on when and how to end those. technical issues need to be hammered out before and exist strategy is agreed upon. >> i still have not arrived in vienna. it is too early to talk about disagreement. but there are concerns about reaching the normal levels for inventories. the question about a normal level of inventory is a

technical issue that needs to be studied and discussed with other parties. users discovered a significant security flaw in the mac system that allows anyone to login without a password. it was found in the high sierra os released in september. the glitches are rare and potentially embarrassing for apple, whose software is regarded as less prone does stop -- hacking and malware then windows. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra, this is bloomberg. time to check on the markets with sophie kamaruddin. north korea's nuclear tests have not boys rattled the markets. that seems to be the case this morning, doesn't it? investmento focus attention away from pyongyang. retail trade, the test to hit a

fresh record. asian stocks coming along toward capping an 11th month of gains. there is no safe haven shine. 111.60.eeing the edgingkei and the topix higher, the nikkei 225 adding 0.7% as the yen is looking softer this morning. taking a closer at what is moving the dial-in tokyo, in retail stocks, following the october sales, falling for the first time in 12 months on her yearly basis. tech coming in unchanged on a monthly basis. consumer shares joining the upgrade of other sectors. financials are gaining over 1% this morning. turning our attention to the session in full. how the kospi is faring so far.

little change, but adding the two biggest changes. the market impact of the missile tests will be limited. the korean once on -- the korean won little changed. concerns over a chinese slowdown will moderate. that is paying off. you can see that on g #btv 3098. swap.was a credit default pricing has converged. they gained 48% through october. we are seeing utilities dragged the most. higher byocks led korea aerospace today. betty: we are continuing to watch the impact. thank you so much, sophie kamaruddin. tensions rising in asia, governments holding emergency meetings after north korea fired

the first ballistic missile since president trump labeled the country a state sponsor of terrorism. south korea responded with a precision missile exercise. japan protested in the strongest terms while president trump said simply that the u.s. would handle it. pres. trump: a missile was launched a little while ago from north korea. we will take care of it. we have general mattis in the room with us. we have had a long discussion on. it is a situation we will handle. betty: we want to know what that means. south korean president moon condemned the launch and called on the north to come back to the negotiating table. shinzo abe strongly protested and ordered an emergency meeting of the u.s. security council -- un security council. in previous launches, the yen spiked briefly. if you take a look at our , we see a g #btv 2771

familiar pattern. which is in asian markets after each launch, there is a dip, then it continues to move higher. let's dig deeper into the response in the north korean threat. has more than 25 years of experience in the global financial services industry, including seven years running the new york stock exchange. -- it is great to have you this evening. i you surprised by how resilient these markets are? >> i do not know if resilience is the word anymore. it is almost oblivious. it is so interesting. if you had told us a short while ago we would have the market setting all-time highs, the vix at an all-time low, on the day we were greeted with this before the market opened, i probably

would have taken the other side. betty: is it like the boy who cried wolf too many times? suppose. the markets must be speculating this is unlikely to escalate to a terrible place. i think you saw a lot of world leaders calling for everyone to get back to the table, so it does not escalate to that point. the other thing interesting about this years market, it is another example where the market has just gone up, and you have never had those moments during the year where you were nervous for a few days or saying, here is the pullback we have been expecting. we keep getting hit by these things in the market just plows ahead. betty: i want to bring up a 008.t, g #btv 2

ceo confidence, demonstrated by the white line, at the highest level since before the financial crisis. if you look at the inverse correlation, perhaps having to the anticipation of lower tax rates -- does that make sense to you? duncan: i think so. and it is funny, having run a company myself at some point, you are at -- or an optimist by nature, if you are leading people. but that chart is compelling. it tells you corporate profits are good right now, the economy is pretty strong. we heard from the fed chair today about the need to potentially raise rates. the danger is, it is unsustainably low, we are not in danger of it running away from us. the opposite, actually. i think ceos are feeling pretty good about their prospects.

feeling pretty good about putting money to work if repatriation becomes a reality. they are feeling good with the progress today on tax reform. it seemed better. betty: encouraging. duncan: who knows. all of that is starting to be priced into the market. i only hesitate to finish on a bad note. but that chart you just showed we are a goodus eight years from the financial crisis. financial history tells us, you get seven to 10 years between problems. so we are pretty deep into it. looking a little long in the tooth. but the market shakes it off. paul: duncan to miami am interested in the point you make in history. is a correction coming, or where you could potentially see it coming from. it is a question we have

all been asking ourselves. the shadow banking system is bigger in this country than a lot of us probably think it is. it would be odd if history would repeat itself there. i think people are looking around saying, is it a dead issue we heard earlier about in the program? is there something in asia or south america that would come back to bite us? no one can put their finger on it. but the financial crisis may feel more recent than it was. having lived through it on the front lines, we are eight, almost nine years away from the. -- that. everything is about as good as it can get in terms of equity markets and low volatility, and the yield curves are under control, flatter than they have been historically. not obvious to me wearable come from next. where itvious to me

will come from next. seen to be a landmine. some saying avoid bitcoin like the plague. attacheda lot of risk to this interesting asset? duncan: let's try to put some of these things in context, first of all. i am sure you have a chart, one of the ones on the screen, let alone the price of bitcoin, which is hovering around $10,000. if i understand it correctly, that should take the market cap of all the digital coins out there up to $300 billion. in terms of the global economy, that is not a terribly large number. it is a pretty large number when you think that in january of this year the number $300 billion was something like $10 billion. i think it is more likely these digital coins move into the mainstream.

i think there are issues around the edges of this. i personally have been more focused on blockchain, a couple of investments we have made our focused on the infrastructure. betty: you like the technology behind it? we hear that a lot, actually. the technology is very good. duncan: i think distributed technology and what it promises for the future of not only financial markets, but any asset transferred between two people or corporations are cap table isagement, t it isoo -- it to me that these things can be so easily digitized. i agree with paul, the bitcoin market is speculative right now. betty: where do you think it is going? what is your target for bitcoin? duncan: i would have to say it is going higher. i would thinkhs, we would be talking about

bitcoin at a higher price. betty: above $15,000? duncan: for sure. betty: stay with us, we have more to talk about. former ceo. we will hear from an indonesian tycoon about his business partnership with the trump organization, and why he is backing someone for a second term. this is bloomberg. ♪ ♪

paul: this is "daybreak asia." i am paul allen in sydney. betty: i am betty lou in new york. there may be a case for december rate hike. economics and policy editor kathleen hays with a look at the senate confirmation hearing, and what we learned about jay powell. kathleen: he made clear he will be independent as fed chair.

they are appointed and then given free reign. he will remain independent of the treasury secretary, one of his big backers. it is interesting, especially on bank regulation. a lot of people thought trump wants that, republican once that. but he made it clear he is sticking to his guns. this rates question, everyone wants to know where he is heading. case isit clear, when a coming together for december rate hikes, he is coming on board. unemployment is falling, and normalized interest rates. there may be a slightly dovish held -- tilt. he was talking about slack in the labor market. let's hear what he said to the banking committee in the hearing today.

>> we don't see wages signaling any tightness in the labor market. there is no sense of an overheating economy or a tight labor market. if you give me a second, i was so busy and interested listening to our guest talk about some things. what we're talking about now is labor force participation for men 25 to 54. it is down here, it is not moved very much. he says low wages are a sign there is still slack in the labor market, even with unemployment down 4.1%. jay powell has said on banking, yes, there were a lot of rules and regulation passed on the dodd-frank legislation, in the aftermath of the financial crisis, and yes, some needs to be reevaluated. he knows the technical aspects,

it is one of his specialties. but he is supportive of higher bank capital and stress testing. they have made the financial system more stable. there is no doubt he is in for any major overhaul of dodd-frank. paul: kathleen, thank you for that. for more now on the future of the fed, let's back to former new york stock exchange ceo duncan niederauer. inflation is weak, it sounds like he is wishing for any of these problems. do you see two hikes in 2018? order -- or is there even a case for that? duncan: i think we will wait and see. he telegraphed the december hike. i think there will be two hikes in 2018. what i liked about what he said today, when you go back to what

we were talking about bank regulation, one of the things he has been saying and said again today, he is not looking to make wholesale changes. -- it does think that should be correlated with the size and complexity of underlying banks. let'ss his way of saying, not bludgeon the smaller banks were not terribly complicated and are not systematically dangerous for the u.s. economy. let's not go out of our way to relax too much of the regulations. thebig banks will tell you, new capital rules and stress test rules have been on -- have been helpful. i like what we heard from that incoming fed chair today. betty: i think wall street liked it, as well. duncan: very balanced, thoughtful. paul is right. he is coming in and a time when -- in at a time when inflation

is almost unsustainably too low. we will see a normal cycle where we now raise rates two or three times in the next eight to 12 months. betty: what are the chances they might make a policy mistake, given inflation is nowhere to be found? duncan: what you heard him say underneath his testimony today is, that is a bigger concern of his than came through in the comments today. you will see a rate hike. and you will get two more, if it does not appear to be a risk. but if inflation does not continue to show its head, i do not know why you would be compelled to do that, to raise more rates. if you take a giant step back, four months ago, rates were the lowest they had been in the history of the period we have measured interest rates, which is centuries. now there is a second or third

lowest we have been measuring. a couple rate hikes i do not think anyone should be worried about. betty: that is why there is so much concern. the fact they are so abnormally low, it seems. there is room for perhaps a policy mistake. if there is, what impact that will have on treasury markets right now. it seems really expensive for where we are at this point. duncan: it seems that way. let's keep an eye on it. betty: it is his first appearance, he has many more to come. duncan: he will get better at that. as you mentioned, you have been investing in many different companies. one we will be talking about in a moment, a new social network on the app store. chances are, you will not be allowed to get it. onlinen invitation only

community for wealthy investors and philanthropists. you are one of the charter members of this. you, lay outask what exactly is clade. >> clade is a technology platform for sophisticated investors and philanthropists, united and globally. we are trying to disrupt and reinvent private banking. requirements? the what are your clients concerned with and what are the qualifications to be a part of this? >> that is a good question. most of our clients possess aboveicant wealth, often $50 million. they are highly accomplished in their field, and have a good, strong track record of engagement in philanthropy. we pull our members from the business and finance community, as well as arts, media, entertainment and politics. betty: why did you want to

invest in this? >> i like the idea a lot. it is not a wealth management platform. there are a number of those out there. the more you develin private dabbting -- the more you le in private investing and philanthropic efforts, you learn that if we could be in a group of sophisticated and like-minded people, and be on a platform that makes it easy to collaborate, particularly on the nonprofit initiatives, we are all of like-minded on these things. i spend a lot of time in the veterans arena. is happy to get involved in the veterans arena. but if there is no easy way to collaborate and get that multiplier effect of doing it together, we all do work, but it is not -- we all do good work,

but it is not optimal. ourselves -- it is much more powerful to do it together. betty: it is one plus one equals three, that impact. duncan: it appealed to me that i doingtalk about what i'm in the veteran space with like-minded people that i think will understand it right away and say, well, instead of me working on that, i will team up with you, let's figure out how to tackle big issues together. i am excited about that prospect. betty: tell us about what the clients are concerned about. >> it has been a bunch of things. a very diverse group of people. but there are a couple of commonalities. the concern about philanthropy and leaving the world in a better place and solving pressing world issues. that is across the board something they are concerned about. they are also concerned the next generation of their kids do

well. that theymmon theme, are motivated, have good values. there are a lot of great lessons learned in that space. is $10 trillion plus of international -- of intergenerational wealth transferring. it is important how that money gets allocated. our members are concerned it is a smooth transition. betty: thank you so much for joining us, jonathan looked in, ceo of clade. and also, duncan niederauer. coming up, the apple operating flaw that could put your data at risk. live from san francisco, this is bloomberg. ♪ bloomberg. ♪ is this a phone?

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singapore. we are half an hour away from the open of trading there. i am paul allen in sydney. in newi am betty liu york. you're watching "daybreak asia." theyports from london say have reached an outline agreement on the brexit divorce process. sterling strengthened after the news reported the agreement. between 45will be billion and 55 billion euros. sources in brussels say the agreement has not been reached, but talks are progressing.

the bank of england has repeated its warning about brexit, saying a smooth transition could mean financial disruption. mark carney spoke after releasing the stress test to the u.k.'s top seven lenders. to deal well-placed with exchange rate slumps. informed by the stress tests, we judge the banking system can continue to support the real economy. even in the unlikely event of a disorderly brexit. >> new zealand's central bank will ease mortgage lending restrictions next year because it expects government policies to dampen the housing market. their report says banks will loansore low profit home january 1, while down payments to investors will decline. they said it is unlikely to repeat the market.

reaching a settlement said the top $1 billion. an official in riyadh says the tuesday, andeed on three others have agreed to yield. his father was a late king of doha. until recently, he was seen as the second most powerful in the kingdom. a rare diamond has sold that christie's in hong kong. it went to an unidentified phone bidder after sales of only three minutes. it failed to live up to presale promises. for had expected it to go $42 million. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. ♪ time to see how the asian markets are shaping up so far

this morning. here is sophie kamaruddin. risks arefew systemic seen by investors, even with pyongyang's latest missile test. you it isderauer told looking a little long in the tooth. equities are continuing to our power ahead. stocks are climbing and seoul, sydney. japanese shares climbing even in the face of lower-than-expected october retail sales figures. jpmorgan sees consumption picking up in the fourth quarter. in seoul, health care stocks leading the charge. as. stocks under pressure samsung is on the don't -- is on the downtrend today. financials continuing to climb as the regulatory risk is

moderating for the industry. the kospi on a second day of gains. plumb new highs for the year. we are waiting on the bank of korea meeting thursday. taking a look at the yen, it is continuing to be under pressure, along with a tight spot in the asian forex space. the best performer on the nikkei 225 this morning, after raising its full-year net income. yamaha motor shares are the worst performers on the nikkei 225. toray industries has a five day drop. flipping the board to show you stocks and seoul. hyundai motors climbing after being upgraded. keeping defense stocks on the reader, korea airspace gained 1% this morning.

betty: thank you so much, sophie kamaruddin. one them over might be apple. apple users have discovered a significant security flaw in the latest operating system. anyone can login without a password, using the word "root." potentially and embarrassing oversight for apple, whose software is known for being less prone to hacking and malware infections. they say they're working on a software update to address the issue. mark gurman has the latest on this from san francisco. i have a mac laptop, i'm worried about this. how widespread is this going to be? >> you should be worried. i have been covering the company for a long time, almost 10 years. closely watching apple. and is by far the simplest most embarrassing security flaw

i have ever seen on the mac side. who is vulnerable? anyone running the latest and greatest mac operating system, high sierra. inn high sierra was released september, it was positioned as an upgraded version of regular sierra, from the year prior. security and upgrades to the file storage were some of the main components of the update. it is in a bit of an ironic discovery today. betty: absolutely. when are they likely going to have this update? >> it is not the first security flaw they have dealt with on the mac os side or ipad side. past history shows apple takes between a few days and a few weeks to get fixes like this out the door. this seems like a significant one. i am sure apple engineers are working around the clock to get a fix out as early as this week, i would hope so and assume. paul: who does this affect?

if you are slack in operating -- updating your operating system, are you safe? >> it is specifically for high sierra users. it is a mixed bag in terms of how we look at this. apple makes it super easy to update your mac, get the latest software and features and security fixes as soon as they are available. a lot of people running the latest mac hardware on laptops and desktops are likely running high sierra. we tested the flaw across all the version updates of high sierra. to the original version in september, through the current updated version that came out october 29. that had the issue, as well as the beta version of high sierra. we also tested regular sierra from 2016, and i did not have the issue. so it was introduced to the mac what the first high sierra version two months ago. paul: mark gurman san francisco,

thanks for joining us with that. indonesian media and real estate hason hary tanoesoedibjo told bloomberg he is not running and hesident in 2019, will vote for the current for a second term. he said he was inspired by his business partner, donald trump, to take a shot at the office. he spoke with haslinda amin. built two projects. one is in construction and another [indiscernible] i'm building also a golf course and country club. those are under construction, also. the second one i am building and bali. a hotel, golf course. >> everything is on track?

>> yes. >> you talked about needing to acquire morland. -- to acquire more land. it has been successful? >> yes. >> your relationship with the has access to- the trump family changed since trump became president? >> [indiscernible] i can communicate with them at any time [indiscernible] do you think of the trump brand has helped you? >> the trump brand is a good brand, high profile. [indiscernible] from the beginning i decided to do that, even before he became president. >> you said you are inspired by mr. trump himself and have noted before you have aspirations to run for president.

do you find yourself in that position now for the 2019 election? >> i have to make it very clear here. ,m going to support mr. jokowi the current president, to run again for 2018. >> why is that? >> he has shown his ability to maintain his position. [indiscernible] would you yourself are run as vice president? is it possible? >> i do not know. >> what you make a president jokowi's reform agenda? >> the infrastructure has been successful. it is important for us to have an operating infrastructure. not only in the big city, but other places on the island. the distribution of wealth will be more even. was haslinda that

amin speaking with the mnc group founder. much more ahead, hong kong stocks dip on worries china will restrict investor flows. whether beijing is blotting a stellar year for the hang seng. this is bloomberg. ♪ ♪

paul: this is "daybreak asia."i am paul allen in sydney. betty: i am betty liu in new york. putting aluminum at the heart of new trade tensions. commodities trading closed in the u.s. we will watch aluminum prices when they restart trade in asia. ramy inocencio at the wall with the charts we need to know and reaction so far. ramy: looking at u.s. trade, it was down about 1.5%.

is this probe continues, we might expect less chinese alumina might head to the u.s., increase the glut we are seeing in china, causing prices to fall. we will have to see what the market says to that. let's look at reaction to u.s. aluminum companies. alcoa and century aluminum. this is g #btv 2654. you can see when news of the probe hit headlines. the blue line is century aluminum. it is up by seven talk -- it is up by 7.2%, its biggest jump in three days. alcoa in white, up 3% at the close. both at their highest in two weeks. it is capitalizing on double-digit gains. the analyst recommendation, there are no sells for either of these companies. we will see how this continues trading.

let's check out g #btv 2660. these are aluminum prices dropping from records. you can see those lasted in the early part of 2015. your today, premiums both in japan and the u.s. fall by 4% in the u.s. and 8% for japan. bloomberg intelligence saying these pressures we are seeing could stick around a while longer a cousin that glut that is growing in china. exports this year through august are up by 3.25 billion tons. finally, g #btv 9395. i want to show you how aluminum compares to other base metals. in yellow, lumen in yellow, alumina and is up your today by 25%. yellow, aluminum is up, you're to date -- year to date,

25%. because of falling chinese demand, the price could struggle to advance. goldman sachs says for iron ore, that could fall to 50 metric tons. there is a new mine in brazil opening up. we are watching the aluminum price when asia-pacific trading begins. paul: thank you very much. the hang seng of faces a potentially difficult day after concern china might turn off the tax. regulators could restrict the inflow of mainland money, which helped hong kong to a rally this year. joining us to discuss, our guest. he thinks the shares will decline in the long-term.

want to get us started off by hopping into the bloomberg? we will show you this chart, g #btv 2978. the mainland buying into hong kong where the stoxx connect, outweighing trade going the other way. what will it take for investors to put their stocks into asia? >> the key point is, you can see to november [indiscernible] this amount has brought flowing to the hong kong market. but at the same time, they are targeting new economy stocks, like hang seng insurance. those stocks rose 20%, 40% first quarter. .here is a lot of china money

it is pushing up to a higher level. time, china for risk management, continues to have lots of money flowing into the hong kong market. that may cause a bubble. it turns up the cap coming from china. paul: chinese funds allocating into hong kong stocks will no longer be approved for the mainland. what do you make of that? >> it is understandable china would do that. remember, there are lots of investors that can buy stocks in hong kong. i think for the moment, a large amount of money -- if you have lots of equity in the china market, it is not easy to have

liquidity in the hong kong market. but individual investors still have a chance to make individual investment in the hong kong market. [indiscernible] on the hong kong side, liquidity is so high. i do not feel it has a big impact. but the turnover may be affected. it is more than 100 billion hong kong dollars every day. they may make adjustments now. betty: i am kerry is how big of an impact you think this might have on overseas -- i am curious how big of an impact you think this might have on overseas investors, this restriction? when overseas investors are looking at this, they see the momentum of the hong kong market stop.

remember, there are two types of investors in hong kong. some look at liquidity from the other side. and now you see investment from china. [indiscernible] because the hong kong market is thereg their pe shares, is great momentum for the rise of the hang seng index. if we have a lacking of momentum from china, there is also a good idea [indiscernible] it may be good for the market to go up again. this news is reminding people how increasingly tethered hong kong is to china. while that is always good on the upside, when things like this happen, it reminds investors

there is also a downside to this. it is a reversible, it would only get more close, would you say the correlation between hong kong and china? >> the correlation is higher and higher every year. in the capital market in hong kong, lots of china stocks listed here. and also engaged in the capital market. i think overseas investors, looking at hong kong, should be looking at china outlook. the china outlook is good for hong kong because it is positive, it is robust. hong kong has a platform for companies that have high-growth. long-term, china has a good position for market development. betty: thank you so much for certainly something to continue to watch in hong

kong and china. don't forget our interactive tv function, tv . you can watch us live, catch up on past interviews and dive into securities or bloomberg functions we talk about. become part of the conversation by sending us messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪ this is bloomberg. ♪

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betty: this is "daybreak asia," i am betty liu in new york. paul: i am paul allen in sydney. the u.k. secretary tells bloomberg he is prepared to take a tough line with the e.u. they are in talks with brussels. they say they have done enough brexit talks. hopes rise of a breakthrough. he says he and the government are not afraid of the talks. open, liberal, comprehensive agreement to increase market access and ensure we do not have impediments to trade. we want to work toward that agreement. it is in the interests of the prosperity and people of europe. we not afraid not to get an agreement. terms. agreed on wto betty: bitcoin seemingly

unstoppable surge toward $10,000 has yet to convict -- convince some. one had a blunt message for new york, "ovoid bitcoin like the plague." he says nothing is supported except hope, he says, when it comes back to $100. musk has denied being the creator of bitcoin, tweeting he has misplaced his own stash of the currency. there was a viral blog post claiming he was the mysterious satoshi nakamoto. this story is a story -- bitcoin just keeps on giving.

i want to pull up a chart because we are all waiting with bated breath. g #btv 1183. can you pull that up on my bloomberg? it shows you live where bitcoin is trading right now. some of the other exchanges have passed the $10,000 mark. 39. can see live it is at 99 paul: it is a game everyone can play. it is fun watching these bitcoin charts. bitcoin's volatility makes the korean won looks positively stable and boring. that is an impressive feat on its own. we are waiting for bitcoin to break the $10,000 barrier. i did like the remarks from mark bogle, avoid it like the plague.

to $20,000, but when we get to $100, we will talk. that gets to the volatility and risk involved in playing with bitcoin. we heard some of these guys talk about how they do not like bitcoin, like jamie dimon. but they have no problem profiting from it. we will see vanguard start a bitcoin index. we will see if that will happen. meantime, that is it from daybreak asia. we have more with haidi lun on bloomberg markets. will be joined by an investment strategist in about 10 minutes. stand by for bloomberg markets. this is bloomberg. ♪ is bloomberg. ♪

>> it is 9 a.m. in hong kong, i am haidi lun and this is number of markets asia. ♪ -- this is bloomberg markets asia. ♪ haidi: north korea end two months ofs relative calm. maligneds increasingly and someone says it is time to listen to the governor. flaws has a significant that could data at risk in the