♪ in hong kong, we are live from bloomberg's asian headquarters, i am yvonne man. welcome to daybreak asia, the top story since wednesday, a mixed outlook from asian stocks after wall street keeps adding to all-time highs. the nasdaq is making it six out of six for the year. this is a bear market for bonds as treasury yields soar ahead. i am betty low here in new york, this is after 6:00 p.m. on this tuesday, north and south korea agree to military talks but the north says its nuclear program is not on the table. and is tech trending away from apps and back to get this? --will be live this hour

back to gadgets? we will be live this hour. ♪ betty: a jampacked day today. you cannot get the bond king's to not talk today. this is noting that the 10 year, seemseasury bull market to become to an end and the bear market is starting with a yield and hitting 2.5% and then you have jeffrey, coming out of the later, also in his outlook and webcast when he talks about bill gross saying that this might be a little early but with these yields rising, it is going to hurt u.s. equities, he noted that everything about two point 63% is going to start hurting

equities and that is why he sees the negative return in 2018. heard that from a lot of the analysts we have heard talk to. but perhaps he jumped the gun when it comes to calling and confirming the end of that bowl, on the market. -- bull-bond market. it is going to be very interesting when it comes to the face income and currency. >> let's see who is right we did see another day of record in tear, the s&p , --igher and as you can see all that is having his we will get earnings out and it will move these markets have become a better than the forecast. >> stocks in asia, treading water but it will be the fixed

income and a story today. this is the bonds selloff. this is the key right now, stocks are flat. juststralia, sydney is getting underway, piercing stocks up about 10 points are so, we are asking the obvious, 7821, piercing the odds resuming that month-long rally overnight after we did see those building approvals, trying to iron ore futures. look at oil, 63-47, a three-year high so that commodity rally is continue to support the currency on the yield, up six basis points, that is to 73, looking up or chinese inflation data out. japan, we will watch federal session. that dod -- the boj, they are

stepping back from their monetary policy, that would be a key focus for the currency. 63 right now, j.p. morgan among might beng that it early to go along and given that we suit -- do see years -- yields picking up. yvonne: let's get you caught up with the first word news with katie lyons. >> they have agreed to hold military talks in their high-level dialogue after an 11 hour summit on tuesday. however, the north criticized this out for raising its nuclear program. kim jong-un's chief negotiator called the issue a strong complaint over the issue, usually a great that they would join the winter holidays in the southern town of pyeongchang. bloomberg told that -- has been told that china changed the regime to manage the yuan. effectively removing a component to deal with this. the pboc told some lenders to

adjust their so-called countercyclical factor. analysts see that china is confident in the you on -- yuan 's current trajectory. blasted byon was president trump over disparaging family. about his will consider voting his alibaba units, this is allowing listings of the dual clashes. china's emerging man -- which is meant is while doing this. a listing from one of china's largest corporations would be a triumph for the hong kong exchange which is considering a number of changes to attract international businesses. dayal news, 24 hours a powered by what and 27 hundred

journalists and analysts in more than 120 countries, i am kaylee lyons, this is bloomberg. >> hours after that's what selloff and -- they declared bear market and bonds have begun. we heard another bonking saying that is another -- a little early. kathleen hays is here with more. this was in this webcast that he put together. what is did he say? >> one of the original buntings, he is now the henderson capital advises but he says the bear market and bond has started, here is what he said, he broke a line.r trend we are now going back 25 years because this is pretty instructive, here you are with the benchmark 10 year treasury thing as high as 2.5, that was a pretty big move as you can see,

you have to go back to march, that is when they were making their first rate hike of the year and then you saw this move up, back then, you get to 2.6%, you have a bear market but we didn't, things turned around, inflation was reeked. -- week. ak. what is interesting, on this this is the double in, the gross is it that of it early, he says if the 10 year we have get over 2.63%, a ways to go on that, it will head higher. he also said that the 10-year note has to close at 3.22% and actually and the market and bonds, i'd do see that he says this is plausible sometime in 2018 and he says it looks like a 2.5% two-year treasury could be

in the offering. this whole business of what happened, doj, the regular operation, they all made something shipping, congress and i don't think so, the boj is ready to change their bond and it helped spur the sellout that was over to the u.s., $60 billion of bonds coming to the u.s., you get, japan and germany. the u.s. treasury getting ready to sell the most debt in eight years as it has to do with the deficit caused by the tax overhaul. there is a lot of supply coming on, central banks moving away from bond purchases, it seems like it is a perfect as perfect selloff. this has turned into a full-blown their market and pulled that yield steadily higher. this is what we see with the pboce span, china, the

will choose the way it manages the yen and also in the mix of market forces in the past 24 hours. so how can we interpret this move? >> just something us to throw in the make as a what else is going on here, the pboc have put on their website darius comments but this is one of the most transparent central banks in the world. let's look at #btv 51. yuan.s the drop in the it was the biggest drop in two months on the news and right now, with the way the wind rate goes, it can trade a maximum of 2% on either side. what they are saying is it is a countercyclical factor that the banks have to take into account. that factor was put in way back , may, june because the currency weakened. it helped get it stronger, it certainly seems that way because you can see the strengthening

getting back on today's nice, stronger levels again and now the question is what does it mean? there very least in ms. more confident in having a strong chinese currency, it could also mean they want to get closer to a more freely floating exchange rate. it means that they could want a new division. this will is more headwinds in 2018 and need more help. tweakst of technical there. now from bonds to stocks, look at the new round of all-time highs, this is a tone that it sets forth the major earnings report, we will look with su keenan. the s&p and nasdaq keep trudging along, hitting records every day this new year. sue: six straight days in a row. the dollar getting a boost from policies, check it

out, this is right across the screen. lookds once again, let's at some of the big movers, bitcoin is a theme here, let's call it codec coins, look at the huge jump in a company that was bankrupt a couple of years ago. toward digital film and now it is announcing codec coins, getting into cryptocurrency. jazz pharmaceuticals getting a big bump, this is one of the -- first companies to specifically and that's the tax reform will be very, very good. this is a mid-single-digit drop in the tax rates. that the pressure should stocks are continuing to be other in light of the fallout, samsung's profits will get to that in a day. meanwhile, let's go to bloomberg because who is afraid of the big

bad valley? , aarently not very many performance of fund managers and individuals alike, all very bullish. this was all around the world, the s&p 500 index chart against the several indexes. this is all in the overboard territory and again, the average of these rising to a record -- record late last week. again, indicate no one is really ready to say jumped out just yet. -- jump out just yet. >> that big stocks soared today has been jumping on a report that appears to be working with optionstanley on including a potential sale, what is the latest? >> pressure from the major activists out there and what you have is bloomberg reporting that sources close to the meta-, they are not be publicly identified

and they are saying that they have hired morgan stanley to pursue options, take a look at the stock chart, you can see there has been a significant rise, the activist paul singer is really involved in pressuring countries to get involved, there is a 6.5% stake in the company, we are not hearing directly from ,ither singer or morgan stanley however those close to the matter said the options that are being reviewed, the strategic review could include a sale or it could go nowhere, that that is what we are hearing now. if you look at the year-long stock performance, you can see the pressure the stock has been under an singer is known for coming in at a weak point and buying a lot of stock and putting pressure to make changes that add value which explains why a lot of investors have jumped on board as of late. >> thank you so much su keenan. later on daybreak asia we will be live with the consumer

electronic show in las vegas, don't miss our interview with the president and ceo, that is coming up in 20 minutes. --will be speaking to the martin sorrell. lots of great guests coming up. >> lipo to that. more on that rare face-to-face meeting between north and south korea, we will go live to so and speak to park strategies who say they will have a sign that they are hurting pyongyang. his is bloomberg. -- this is bloomberg. ♪

♪ >> this is daybreak asia. i am yvonne man in hong kong. yvonne: i am betty liu here in new york. clear thatas made it

is nuclear program is not on the table. when that wased brought up. stephen engle is falling all of the developments from seoul. can you describe to us how the talks went, as you mentioned early on, it started off promising. >> actually, it started promising. it even started with a joke from the head of the north korean delegation who basically said that the relationship with the and ofas been frozen course, you can see the steam coming from my breath, it is extremely frozen here in the koreas right now, minus nine unders here in seoul but blue skies, that is a plus. but again, the money session was all about the low hanging fruit and that is the olympics and south korea's desire to have games that basically personified intent and that is goodwill and

not have the threat of war hanging over the games. so south korea was able to get that by allowing more promising the north koreans -- offering the north koreans to come march with us and bring your athletes, bring a high-level delegation, the north koreans, this video the games as a korean of the games, not just in -- not just south korean games. so there was goodwill around and there was also progress made on the military, the military hotlines, they will be reconnected after more than a year of being disconnected, that will be reconnected today, starting today. there was some progress and goodwill in the morning session and then they broke for lunch, a separate and went there are various directions, north and south for lunch and came back to the real nitty-gritty working level discussions, that is what it started getting a little testy. they started getting into other issues, the south koreans pressed for a possible restart of denuclearization talks and

wanted more answers on north korea's missile and nuclear programs. while the north korean delegation took exception to that and basically drew a bit of a redline, north korean delegation, mr. lee issued a strong complaint that south korea even dare to bring up this missile and nuclear program so relations,e start of just the first day of discussions and at the end of the day, the discussions went late into the night towards midnight and if not beyond that. not helpe could himself, he made the statement saying all of north korea positive high and strategic reckons -- weapons are targeted at the united states. he doesn't like a north koreans will back down from their programs. it looks like they went back to being quite frosty at the end there.

steve: that we wait and see of the stock is going to last into thaw will last into the spring. will these discussions on the limits escalate or broaden to them as a programs and other issue between the two koreas? we are standing here at the blue house complex, the government center of south koreaf because later this morning at 10:00 local, we will hear from president moon jae-in who will give his new year's speech and keep in mind, since he took ,ffice, in may of last year there have been 11 missile test by the north koreans, including their six nuclear tests, there are a lot of questions that south koreans have of the president in his first year in office.

quite good points, thank you. stephen engle, or asian correspondent joining us live from a very frosty so. up, a former u.s. congress official, now the senior vice president of park strategies to talk a little bit more about what is next. it seems the momentum has stalled pretty early on, was at the right move from south korea? to bring up the issue of denuclearization on the first round of talks? >> i guess they thought they had to. north korea has made it clear that they are not given of the nukes, in fact, they cannot, the north korean response is exactly what i would have expected. >> the ball is in whose court? >> etiquette is a south korea's court to walk away. intellectually we can't argue with the talks because we always told pyongyang that the road to washington runs through seoul, we can talk to them until i talk to her ally. -- southe in danger of

korea is so desperate for some kind of -- it is bad enough that they're coming to the olympics, now we hear that south korea is paying for it. why don't they pay for it -- pay for a few rockets as well, as i see it we are desponding the enemy. this breeds a lot of questions about the redline, there's been some uncertainty about what president month red eyes are and how they line with president trump and how do you see how he deals with these stocks and how some of the liberal predecessors who historically have been pretty solid when it comes to these negotiations with pyongyang? >> we had sunshine in the past and it seems like moonshine is a little tougher than sunshine because while he is a liberal, that is the korean nationalist he is x special forces and seems to be a lot tougher than his two liberal predecessors and still is pretty closer to the united states, the czech republic is a lot tougher on the north that was 10 or 15

years ago so i think he will roll over for the north like his two liberal predecessors did that he will not be as tough as the other two as to conservative predecessors. >> are you disappointed with how the talks came out? >> definitely. i didn't expect so soon that they would be willing to send goodies to the north just for them to smile and then to i skaters to john chen. >> they are walking a very tight line here. >> are they afraid that north korea is going to attack them if they don't go to the lipids? they're kicking the can down the road, giving more money to the regime that has been under the gun. pay them now or pay them later. i guess they see having -- >> what about diplomacy? >> i am open diplomacy but diplomacy at what end? at it we should talk to them but giving money before there any concessions, that is how my diplomacy, that's as i can one-way street and i know have just mood has an incentive for north korea to be at the

olympics. the last time korea posted the others in 1988, north korea blew up a korean airliner to scare people away. they may do some kind of propagation on the border but the idea that they would attack themselves, that was far to begin with. >> so kim jong-un's overture on wasyear's day, you think it a complete farce? there was no genuine meaning behind that? inside the head of kim jong-un. i don't even understand what is going on in this country let alone north korea. i thought it was a decline down from north korea. the three had refused to engage the south. them, the south was a foreign control colonial puppet. for us to refuse to engage the north and reach out south, north

korea blinked. the talks themselves don't bother me. >> does this put the u.s. in an awkward position? other questions -- to choose between retreating from this fire and fury language and actually planning for some type of war? does this hurt or help this south korea good cop, u.s. bad cop strategy? >> outthink was in the cards but we are in a spot because as i understand it, south korea asked us to delay the exercises during the liv-ex andy lopez are february 9-25. is jong-un's birthday february 16 so that could have always been an excuse for another provocation. so we delayed it out of there will. what now? what about when we do do this, the next exercises? and we look like the bad guys" occupier, north korea may say that you had to delay further, then what? asks ussouth korea

again and win of doing exercises on her own without south korea. i think it could be a potential public relations trap for us. but we had to support the south and the right to talk. what do they present from should do next? >> at executive what he's doing what do more of it, keep tightening the sanctions, any chinese oil company that supplies north korea and stuck in a series about secondary sanctions on the chinese banks and entities enabling the north, cut them off, we have them on the ropes, that his wife. i'm not on twitter myself, i don't know. >> now, a quick check of the latest business flash headlines at this hour, microsoft says that exist to the security flaws in intel chips could significantly slow down some servers for personal computers. this is just the slowdowns could be more substantial than the

previous indicated. the machines running windows 7 and eight or 2015 earlier would be affected. intel chips are used in more than that present of laptops and 88% of desktops. thatberg has been told there is boring strategic alternatives to a sale. this internet copy was targeted by elliott management which would say that it would seek ways to improve shareholder value. we are told there working with morgan stanley on the process. >> and a hedge fund run by john paul punts about 70% over the past four years, a setback for the billionaire whose claim to ago, thea decade paulson partners enhanced fund units doubled down on his trade and spokesperson for the firm declined to comment on it. coming up next, light at the see of confidence, it is time

for the ceo of samsung's harvard unit as it takes both steps toward its future in the auto market. this is bloomberg. ♪

♪ wednesday in hong kong, just the warm-up when it comes to the temperatures. we are not 30 minutes away from the major market open. >> it is 6:30 p.m. tuesday in new york. this is pretty brisk and full but not as much as we have seen in the past few days and is know what empire state building in empire city. i am betty lou in new york. betty: yvonne: i am yvonne man in hong kong. let's get to first word news now. bill gross is calling a bear market in bonds. courts of the li na fund manager saying that the bear market confirmed. broken inf trendlines

five and tenure maturity treasuries. they have climbed to a nine-month high with treasury seen the most in three weeks, just ahead of a delusion. and another billionaire fund manager is weighing in with his prediction. he says the s&p 500 will end the year with a negative return in investors webcast, are pricing in no recession which is why he falling after decent run in 2018. he also says shorting bitcoin today will make you money. leaves china on wednesday after a few concessions on trade and little in the way of commercial breakthroughs. despite bringing an entourage of over 50 business leaders, the biggest perspective deals for airbus remains only for them. he told reporters that he prefers follow-up rather than just figures. and president trump plans to this

the meaning of the global financial elite is a form for the kind of free trade thinking starkly at odds with trump's populist and protectionist america first agenda. day,l news, 24 hours a within 2700 journalists and analysts in 120 countries. >> we are counting down to the countdown in tokyo and seoul. the focus is going to be fixed income. off is largely shrugging bonds, perhaps taking a cue, little bit cautious as we head to the japan open. >> that could be because of the yen following the boj's move, we do have teachers that appointing lower but when you take a look at the yen's biggest two-day gain since october, that white prompt traders to anticipate

that there could be a breakup of the currency pending in either direction because of course you have the yield of differentials as well but when it comes to the others forced are, that does remain bullish. you can see on g #btv 5167, even with the yen, we have both the nikkei and the top-of-the-line in white radio. imagine this going to court is have your house. this is a japanese expert volume climate to track that pick up in global demand and that is voting for corporate earnings. this is from the world bank, listing is global growth outlook , their reporting that the boj may consider raising their gdp forecasts at this month's policy meeting. >> the correlation between the yen and stocks and the inverse relationship, things have broken down late last year already so maybe that is not going to be a headwind now when it comes to japanese markets but what we're seeing in the bond selloff, we have quite a bit of brutality,

especially in the long and, where the wanted? we heard that before, every time they cut back on their bond is notes, they said this tightening. >> the boj has had plenty of times not to take too much stock from these operations, they take place weekly, we have to keep that in mind and they have been cutting back on their bonds since 2016 when they introduced that yield curve control policy and several economists including a former boj official say that there is a long way to go before boj start meaningful normalization and inflation, that is still not meeting the target and we have seen from the boj governor, he is saying the deflationary mindset will be hard to shake off and that is up does not signal intent to exit policy stimulus so when you look at g #btv 5046 that could be in debtwith the boj's basics of cut in quantity, especially after a 30 or 40 year curve last

month. we see a steepening of the yield curve and we might see that all,nue tuesday at all in what we did learn was that should we see any meaningful shifts on the boj, -- of thatspeaking reaction, we are sitting at $63 or wti. it seems the stars have aligned with this opec deal working, also, this commodity rally, -- >> that balancing is in full effect. on 5.62, this is due in part to the u.s. stockpile shrinkage, we do have five-yearring the average after being about that little for three years. keep a close eye on transport stocks. so taking a look at some energy

clearances better on the radar , thatney, you have origin is being downgraded to neutral at j.p. morgan and we do have qantas flight for a second day but keep in mind that qantas has been on the back for some time now. much, sophie kamman there on the market and what is shaping up in asia, auto technology is shaping up as a big story in this year's consumer electronics show in las vegas, samsung's u.s. made common is making a play within the best driving platform for autonomous vehicles joining us now from the harmon president and ceo, great to see you there from las vegas and i have to started to sound like a detroit auto show was so much focus on autonomous vehicles. on, detroit auto show,

they're starting to wonder what this hasten bird but become a car electronics show, they're excited, the conversion of technologies to create connected experiences here, this has gone around the whole show. >> i can imagine, let's talk about what you unveiled, as you are under the umbrella of samsung, tell me a bit more about this digital cockpit that you are developing for cars, driveline path -- platform, what is it about? samsungve been part of for not even one year yet but in travel collaboration, we have produced these three travel relaunch drive lines, those are the words for us. autonomous driving, that means you can bring in signals from high-definition cameras around the car, the

other sensors and you can integrate them so they created is highly automated service which has security and safety, leading up to all the way autonomous so that is one, number two which is very important is five g technology but as you know, five g -- five g is 100 times faster than the current 4g or healthy and it five g will be really -- be able to take data from car to car and infrastructure, this is billy helping that industry. leapfrog, the times experience and development and what we have lost is a digital cockpit. ais is basically converging multitude of fragmented islands of information rather than discussing and what have you as the compliant with automotive security. so there we have brought in the samsung hospira technology of

quantum led and migrated with the full 3-d and 2-d. >> socially there is a lot of questions with each of those that you outlined but let's talk about the first part which is cars, in platform and thought mobile i had the market stamp on that. anydo you plan on making inroads in a market that mobilized which is brought by intel, they are the dominant player in this field. right, is absolutely this was the first to enter in this market, by 2030, automotive byustry groups cost six seven joined dollars. the autonomous market right now in terms of revenue is about a billion dollars. good and an is very

extra derek lowe's platform so it doesn't allow the development of communities to come participate so what we have lost is an open source, open platform, it is still comply with all the requirement. this is the multitude of developers. >> who you expect will be customers for you? with these new platforms, will be your customers? we do with all automotive customers, all of these are the customers of hours and we will see in asia, china will be part of our advantage, the chinese customers are really leapfrogging, they have the appetite for these two technologies, they will not wait for it to be first implemented in high-end luxury cars and of course, american customers so we had in the last two days, we had ceo level of customers from

europe, asia and america obviously, great interest because these guys one personality, he wanted to have open source of they come participate was automotive autonomous experiences so personally, decided that because it is harmful and an industry spokesperson, industry was waiting for open fax to come out and that we need to make it expand on that. and hear all of this stuff i see all of these pictures and they look incredible, we are basically turning our cars into entertainment centers, computers but i also worry, i can barely walk down the sidewalk you're in new york and not bump into someone because i'm so distracted by my phone, isn't there a concern that with all this capability in your car, we are making them actually less safe?

>> that a very genuine concern, that is a concern of ours, the only way you can solve it is and make as intuitive it suggestion about and cognitive, that is where we will be spending our money and dollars so you can speak to the cockpit, you can use google intelligence, google home, amazon or samsung's boys enabled interface so boys would be a big deal of until now, i have been investing in automotive and voice has not been mature. so i think we are seeing our explanations develop, the retina best, so less personal -- and digitalovation cockpit is a big step forward in that direction. just tell us a little bit

more about the connectivity and the promises that you have had since 1998, how is that evolved over the years into what you are seeing in innovation now and what is the risk? any newusly, developments you do have had their own risks, this jumps to connecting cars without worrying cybercybersecurity and safety compliance issues, i really care for that because once you bring in the big 54 5g, you are also going to invite undesired and unintended intruders in the car, cybersecurity needs to be talked about a lot, banking is secure, defense is secure, automotive industries are not, they were not designed that way so that is the concern and the risk and you need to her about the car, it is not your cell phone or smart device, it is light and death. so we understand that and that is one reason why samsung

brought us under. i think we will use that experience to minimize those risky factors but that is another reason why when people get excited about autonomous cars, it is a journey, it will not happen tomorrow, is a multi-your process, we have to test this things. >> we have been asking many of the ceos when they have been taking a broader look at the well, i know you are so focused on your technology, in terms of what you're seeing and talking to customers around the world, what is the biggest risk right now, the biggest global risk in 2018 in your view. risk isiggest global what you all talk about in your network, the trade war, we do not want that because technology has no boundaries, innovation, collaboration needs no boundaries, so look at harmon and samsung and in china and markets like china, that is the biggest market opportunity not

to just develop but as consumers for automobiles, consumer electronics, professionals, enterprise and in those emerging markets for us, very big opportunities so we do not want protectionism, i think innovation will always find ways to country the boundaries. christ thank you so much, the harmon president and ceo joining us from ces and we will have much more from the conference because of next we are joined by the was largest ad agency, wpp's martin sorrell, this is bloomberg. ♪

♪ this is daybreak asia, i am betty live in new york. kong,m yvonne man in hong a quick check of the business layer/headlines, boeing landed

on hundred 12 the jetliner orders last year with a list value of $135 billion, judging sales of is highly profitable 737 and carpet cop oz a tree and theysed concerns said on a conference call that by every measure, it was an extra nearly good year for boeing, airbus will reveal the full results next week. profits for this chinese carmaker doubled, topping analyst estimates that expect them. they may have the doing of founder to turn his focus to another major acquisition after buying boeing 2010, they wanted triple in hong kong. the strength of advertising is any indicator of a global economy, how are businesses

spending? our next guest oversees the largest ad agency in the world, how a rising global risks and the fight for online ads stays impacting his company and the industry as a whole. the ceo and founder martin sorrell joining us now from the consumer electronics show in las vegas, always on the move. >> first off, before we get to talking about technology and advertising, i have to ask you about how you are feeling about economic growth. growingstock markets like gang busters, there are tax reform now, how do you feel about the u.s. economy right now? what about the global economy? >> you look at it from the outside, all the analysts are talking about synchronous growth , the first time we have seen for a number of years, the on all economy firing

cylinders and you look at all of the events that are going to take place this year in korea with the winter olympics and russia with the world cup and the midterm congressional is what we call and many quadrennial as opposed to the maxi which is in two years time that,0, having said all there is a scope for caution as well. from is pressure activists, there is pressure from zero-based budget is, people are generally funny from inflation, it is a lopez and pricing power is difficult to pressure onhere is costs. so there are these balancing factors but overall i would say the environment is a possible -- a positive one and possibly 2018 will be better than 2017. >> what will be the biggest risk to that global growth?

,argin: when one looks at it the big drivers of the world, the g2, u.s. and china, the outlook is pretty positive, president trump is certainly driving his agenda, his agenda about tax and infrastructure spending and last but not least, reducing regulation, all of that bodes well for the u.s. economy in the short to medium term. president she is taking a very long-term growth orientated approach, as you see here, the -- peoplee developing believe that china are followers on technology but they could again, they are leaders. look at all these, both of whom who brought major part of western-based electronic manufacturers, they will become

significant compared to those in the future so i think for the two biggest economies in the at 20 trillion, one at 10 trillion, 30 at about -- and of -- look at western europe, brazen, latin america where i was over christmas, pretty positive, parts of asia placing some difficulties but other parts such as india, the philippines, vietnam, really showing some strength, south africa, some positive political development recently so all in all, i think we are looking pretty positive with the caveat that client are still very focused on cost and i think we will see a dappled one play out amongst the big tech giants, you have the big five, the seven sisters as i call them , the two chinese companies alibaba and tencent and the 1.5n companies always over

trillion market capital. those are the big seven that will be fighting out on artificial intelligence and voice-activated devices. that is the duopoly in the advertising world, google and facebook which are most disruptive and dominant in the advertising world, what do you expect this year in this duopoly ? how that affect wpp? particularly as facebook is trying to attack this issue of fake news. think you have to give us some perspective, our immediate look is about 75 billion buildings of which 50 billion is our medium. if you look at that, in 2017 and even 2018, google and facebook will be extremely prominent, there will be number one or even one and two. if disney and fox go through, they will be a strong number two whereas last year, facebook and

fox were pretty much the same. so what has happened with the , what you see in the duopoly is the growth of a partnership with the agencies, ourselves included which has friend and 8 -- france had become much more possible in their approach, i think the biggest thing in 2018 will be what happened with google amazon threatens on search and threatens google on their advertising, it is very small probably around 2 billion, to onelion but close hundred billion in advertising and google and 40 billion on facebook so in its infancy in the foothills and a pen on the health is backside but haven't said that, amazon is coming fast and coming quickly, in addition to that, there is not in the foothills and both which is in the process of formulation and development so there are some

threats to google and facebook but they are still dominant. i think the big one is amazon. i think what you will see his regulation starting to rear its head, not just in europe but in the u.s. as well as the five big the two inies and china, tencent and alibaba become more and more important. >> i have to squeeze this last question and, you were probably expecting this but there was a lot of disruption going on in the advertising world but for you, the disruption is coming som the consultancy world, consulting.t wpp where do you see wpp in the next few years -- do you see yourself being bought by one of this?

>> stage rendered balance sheets every year. of one's i couple gemini but where they get into our space is not through digital or creative as you positive. where they get in is at the cost side. figure two ceos as a they are spending too much in this noninflationary come across -- cost driven environment and is a they will reduce cost and you will pay as a percentage of the reduced.t will be i think that is very short-term thinking. data, they know what consumers are doing, they pose a big threat to our client in terms of the long-term and control of that data and consumer experience, that is where we can help by consolidating our effort in

media and data and intelligence in a more effective and integrative way, where we compete, we'll see a couple of things later this week where we cap computer consultants and outdo the consultants. in our direct space, they are in that cost it is -- cost driven space which is where they may traction and i think in the long run, that will be to our benefit, not to our disadvantage. >> we will leave it there and always great to see you. yvonne: a great conversation there, we are counting down to the open in soul as well as in tokyo, let's get over to japan as he have futures are playing out right now, we are expecting a little bit of weakness here at the open in tokyo but has been mentioned, the story has really been in fixed income as well as

as x after we heard the boj talking about how their looking to reduce purchases of the long bond, the hit of the central bank stepping back from it monetary policies, the here,-yen seeing weakness plenty more to come here, this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. headquarters, welcome to " daybreak asia." wall street keeps adding to records, making it six out of six for the year. the latest moves to give market forces greater influence. from global headquarters, i'm betty liu. our market for bonds, treasury yields soaring ahead of global offerings. and rest these in 2018 as more make a ships of used global capacity -- boost global

capacity. ♪ >> the battle of the bond kings taken the market. we are at the end of this a bond , bull run. we are not quite there yet. equities exist for now, i have do a highlight what he thinks is a line in the sand. he says we have further to go in this melt up in guilds. 10 year when.s. this truly becomes an equity story in peoples have to start worrying. we have seen this multiple times and struggled to hold those levels. the asia central banks as well, the boj also in this bond

selloff. wety: as you have mentioned, have seen this before and her those calls at the end of the bull market and bonds. we have been wrong. those folks have been wrong. it is a necessity to see if the deals they about this level and reach 3% in a sustainable fashion. but we have heard it looks like low rates are here for the long-term. bill gross is if a premature a little bit or a lot here. in the meantime let's get to the worst word news. >> north and south korea have agreed to hold military talks and further high-level dialogue after an 11 hour summit on tuesday year at however, the north criticize the south or removing its nuclear program. earlier agreed that the north that would join the

month's winter olympics in th pyeongchang. the lender rates expansion estimate for this year to 3.1%, up .21% from june. it says investments in manufacturing are driving recovery, loose monetary policy, and increased confidence. bill gross is calling a bear market and bonds. term trend lines broken in five-year and 10 year maturity treasuries. the treasury curve steepening the most in three weeks. another billionaire bond manager is a weighing in. jessica mark says the s&p will end it year with a negative return. the founder says investors are pricing in no recession which is

why he sees the benchmark falling after a decent run in 2018. he also says commodities may be one of the best investments of this year. and china's transport ministry says no major oil spills happened attentive after colliding with a cargo ship. they believe there is a still hope of finding survivors because the engine room is not directly affected by the fire. the body of one crew member has been found, but 31 remain missing. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. lyons.lee this is bloomberg. let's take a look at the market open ropelike. a mixed session when it comes to equities, but south korea get we did see the talks fall during the day yesterday, but there has been one story, which is next income. a bond rout

continuing. when it comes to equity space we fairlye picture look mixed in tokyo. drag on the benchmark while the yen is holding gains below that 113 handle, but the yen is sliding this morning. the yuan is back above the 1079 ,andle, a dollar sliding .5% four day of losses for korean currency. also risingp gauge 1% this morning. pulling up the risk radar to check in on u.s. treasuries, i'm going to closely watch this space as the ten-year yield roque 2% for the first time since march. new york accrued, that is extending gains from a three-year high why the -- while the rebalancing is being drawn

down. the biggest ups in september after the pboc tweeted its axing policy with the market looking to play a bigger role. investors may be disappointed as they are expecting drastic signs of reform. when you take a look at the currencies very much under pressure given the dollar strength. the kiwi sliding and aussie .alling .1% equity markets looking subdued while bonds are mostly falling. it we do have a mixed session, but mostly looking a little pessimistic here. >> it is, indeed. china's central bank has moved a pillar of support to the u.n. dropping a countercyclical factor using that change some the currency lower. our correspondent tom mackenzie joining us now from beijing for

more on this appeared explain this move and why now. well it is seen as a window of opportunity really for the pboc given the week this in the u.s. dollar. the yuan traded against the greenback at -- percent. you have seen those of bearish bets on the yuan being crushed has givents say that the pboc a bit of confidence to step back from a little bit of their control, to loosen their control just marginally. we have a terminal that shows what has been going on. 5135. you will see may, that is the blue circle, that's when the countercyclical factor was included. there is a one element in the mix when the banks amidst to the pboc at the end of the day they also include things like trade

and closing price for the yuan. that allow them to factor in strength of the economy as well, being to reduce volatility seen in the early parts of 2017. you will see on the back of that you see the yuan pick up against the dollar and then it was removed. the yellow circle points to it being suspended and then you see the dollar picking up marginally against the cny. analysts expect to see a bit more volatility and the yuan, a little bit more interesting for pboc as confident in the trajectory of the yuan this year. is this a signal that they are determined to liberalize the chinese currency? that is the key question and

it is something that policymakers say they haven't lost focus on, that they have consistently said for some time that they do want a more market that they havecy pushed for. but that was derailed somewhat after the market shocks of 2016 and controls were imposed. factored in as well. they are taking baby steps toward a more monetary oriented currency. they could widen the trading ban around the fix. that could be adjusted. they could start to ease back on capital controls, but most economists we have spoken to say that is not going to happen certainly this year. there are marginal steps to give the market a bit more of a role around the yuan, but no big

moves expected. agile moves, perhaps. president trump has obviously made a big play complaining about china intervening as he says, the currency market. he wouldn't want to see a stronger nmb, but this is another fact to bear in mind. >> thank you. let's continue the conversation and ring our next guest. senior emerging markets economist joins us here in the studio. good to see you. as he mentioned, these are baby steps, but are we closer to a clean flow to the currency or the mom at we see volatility pick up, the greenbacks a pickup, are we going to see a region section -- of the -- again? inactually, i think yesterday's move by the pboc

they see the recent a appreciation -- >> that line in the sand? policymakers,and they see it as -- people mentioned that trump wants to marketstrong yen and the is also trading a strong yuan side. we know from past experience, of market turnaround expectations when the market places a one-way bet on the yuan. >> does this remove a big source of support for the yuan? now that we see two way flexibility, are you rushing to change your work as for 2018 now? hao: actually not. our forecast is 6.8. two-way volatility

going forward. on the other hand, the problems market -- most of the market trade, what is happening yuan --hey trade the it's a positive carry trade. have done this policy carried trade for a long time. it makes it difficult, because at this point everybody long .rades yuan we see it strengthening quickly because of the one-way chase and one way expectations. that's what happened yesterday, pboc tried to remove some support. do you think it will have any implications, the last time we saw the pboc sounding the alarm, we thought higher treasury yields, stronger dollar, and a

triple arc cut as well. hao: yes. they always look at external factors. the most important thing for them is they have to strike a balance between growth, debt, currency, and also look at growth potential and deleveraging effort. in this case we see complicated policy in terms of managing china's yen. i do think they want to see two .ay volatility reduced we haven't talked about the data we are in flex think -- expecting later this morning. you are saying that inflation appears to be picking up. where do you see this going for 2018? will it be a concern for the pboc?

largely they have been not too worried about this. the feedthrough has been pretty muted. hao: i think we have been in the cpi right now. i do see it will be picking up a little bit in the coming year living that demand has been improving from china's perspective. on the other hand the most important thing is where we see the inflation picking up in china, actually when demand corporations have the ability to increase price over time. that's a factor for the cpi to pick up, but the problem is when it picks up there is little room for china's central to maneuver. we know that from a deleveraging perspective china should tighten that part of policy, but if cpi picks up there naturally is --

the policy will be tightened on the margin at least. in this case, for the real sector, it will be under pressure. if the inflation continues to rise, inflation expectations on the rise. higher but if we see rates, the big losers are the corporate's with higher debt? hao: that is a problem also. that's what i'm concerned about. if the inflation is higher and rates are on the rise, we do see that on one hand the real sector will be under pressure because of the high funding costs, but especially corporate with high debt. it's an even bigger risk going forward. in this case, i believe that there is little -- a significant

upside or the rate for china's interest rates over time. i do think that right now the rates are already quite high for china corporate. thank you so much for joining us. our correspondent from commerce bank. and how sony plans to stay on top of the wave of media consolidation. of next, the two koreas agreed to keep talking but the north is not interested in discussing the nuclear elephant in the room. this is bloomberg. ♪

asia." is "daybreak >> btw he is have agreed to hold military talks and rather high level dialogue, but the north

has said its nuclear program is not for discussion. let's bring in our correspondent from seoul. we always knew denuclearization was a so-called red line for pyongyang. where do we go from here? we go to see if this can broaden the dialogue into the olympics and after the olympics. the north koreans got what they want? . koreans got a security blanket over the olympic games. they won't have threats during the games, but the end goal what obviously be to get the north koreans back to the bargaining table and discuss their nuclear programs here it did we get any progress on that in one day of talks?

probably not. the mood indicates that the north koreans are not willing, at least at this point, to discuss their missile programs. we have heard from the head of the delegations of the north koreans who began in a jovial the colding about relationship in relation to the weather outside. but as the afternoon were on and they got into smaller working level meetings and when the south koreans wrought up possibly restarting the nuclear .ialogue the south koreans did press them on the issue. the north korean side issued that theytatement

would even bring it up. he made more worrisome comments later in the day, why is the south korea media so obsessed with talk of denuclearization? notbiggest missiles are pointed at south koreans, they are pointed directly at the united states. a very disturbing revelation or statement from them. this is at least guaranteeing some sort of peace, you could say through the olympics, steve, but after that are we back to square one. >> we could be. the north koreans are not budging on claims or missile and nuclear programs here it if that is the elephant in the room and they are not willing to discuss it, how much further can the talks go? we will have an area of

agreement for the olympics, march together in opening ceremonies, but after that the big question remains well the north get rattled again by were games that the united states and north korea will resume in april? my guess is yes, they want like that. >> in terms of u.s. response, how much does this jeopardize international sanctions? could we see more of that now? that is the big key. donald trump has said talks are good, but you can't have talks for the sake of talks. also, the unit united states -- the united states has said we don't want the north koreans to talk to south koreans directly and try to drive a wedge between the south korean and u.s. relationship. the bottom line is the redline that the united states has and

that is complete denuclearization of north korea. back to square one, i guess. sounds that way, steve. certainly it was heartening and disheartening to see that the talks ended up not panning out as one would hope. steve engle, our chief north asia correspondents. findive -- you can in-depth analysis on bloomberg radio. you can download the app or access it via bloombergradio.com. this is bloomberg. ♪

>> this is "daybreak asia." i am betty lou in new york. akamai technologies has

been working with advisers to form a strategic -- involving international sale. they said they would seek ways to improve shareholder value. we are told i come my is working with morgan stanley on the process. atbit said to be considering wearable device for children and struggled to revive demand for fitness projects by pushing into hardware categories. gadgets for children has been a discussion for months. bloomberg has been told that will get it and mazda has selected alabama for a new car factory for $1.6 billion. one spokesperson says the announcement will be made on wednesday in montgomery. the plan plans to open -- the plant plans to open in 2021.

>> boeing landed jet orders last year of $135 billion. 737 and 787table dreamliner is concerns of an aerospace slowdown. by everyalyst said measure it was an extraordinarily good year for boeing. full results next week. look at markets trading. it seems that when treasuries sneeze, everybody catches a cold. we were seeing gains earlier, but we have seen that given up 61 35, the asx 200, pretty flat. looking at government paper in south korea and australia, all

rising. daybreak asia," " this is bloomberg. ♪

>> 8:30 in singapore. i think we are all dreaming about warm weather in most parts of the world. man in hong kong. imf betty lou in new york. >> let's get the first word news. bloomberg has been told that china has changed the regime used to manage the yuan. the pboc told some lenders that contribute to the fixing to adjust their use of a so-called countercyclical factor. china shows it is confident in

the yuan's upward trajectory. control -- emmanuel macron says china is needed. told reporters he prefers a follow-up rather than figures. the u.n.'s chief brexit negotiator is maintaining a hard-line stance to european markets. he says there can be no move allowing them to operate freely across the e.u. but there may be certain cases where they are given the equivalent of the -- president trump plans to attend davos this month, the first president to --end since they'll clinton bill clinton. china's xi jinping used last

year's forums to rebut trump and trade wars. and spacex is facing an apparent setback after losing a satellite launched from one of its rockets. they say they did everything correctly, but due to the classified nature of the payload, no further comment is possible. there will be another falcon nine launch in nine weeks. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm kerley lines. this is bloomberg. >> thank you. time to see how the asian markets are shaping off. the only thing holding steady is crude. gave it't know what away. it was looking fairly risk off. we do have oil, pretty much the only bright spot here. gold is under pressure fighting

.2%. we have bond sliding although benchmark treasury yields are sticking around in the dollar is holding on. might point to support from asian central banks following moves from the pboc. up on the dollar is causing questions how much can high risk equities appreciate. whentors are heating had over complacency. we do have the asx 200 sliding after a five day advance, the nikkei down .3%. inking at the first drop four days, but taking a look at the equity movers in tokyo, i want to highlight advantage

climbing 4% after an upgrade on chinese smartphone demand and honda timing to a 2015 hi. is -- the company is recalling vehicles in the united states for faulty airbags. take a look at the bottom half of the panel here here it we have 2017's best performers among the worst performers to date. pulling up the board to show you some gainers, positivity and today's session. the best performer on the cost feet this morning, platinum asset management, in sydney after being raised to equal weight in morgan stanley. beach energy is among the gainers, lightest energy acquisition. but the moon is looking -- mood is looking dour in the asian

market industry. >> it is. the bond market selloff spurred bill gross to do -- to declare a bear market bonds. kathleen hake is here with a look here it is this going to feed the fire here? >> we shall see. it was a pretty steep and significant move in trading in the u.s. on tuesday. after that big of a move a be we have to reassess and wait for something else to happen. also knew the bank of japan was going to change the amount of arms it purchases? i wanted to update everybody on what we just went through in the u.s. and trading on tuesday. bill gross saying we are

the bond king's, jeff goodlatte, saying i think he's a little bit early. let's take a look at g #btv 5143 and it shows two point 5%. this is the 10 year u.s. treasury yield, up about 2.6% back in march. back in march bill gross said the bear market is going to start, well it didn't. we had inflation beginning to add in go through moses summer before we see yields rising again. the fed's signal more rate hikes in the year in that's as the unwind started. he says the 10 year have to get past 2.63% and then it will had higher, but it has to close at

3.22% to put an end to the bull market. i think what jeff is saying you have a big move up in yield, but maybe not a true their market until we see something further happening. also, what is happening, it seems that the bond market focus is shifting just on the fact that governments are going to sell more funds and do it at a time when fats are not dying as many. ecb doesn't want to buy as many either this year, so you have $50 million worth of sovereign bonds from the u.s., the u.k., and germany and the bigger picture is the u.s. is going to offer -- on the deficit, all of that coming -- it is likely to start a fire, you have the logs, starter, paper, and then a match hits. don't know if the flame is going to start up and die down or keep going. >> i was taking a look at the

jgb market, opening weaker. what is next? kathleen: i think one of the most interesting stories we have had in the last few hours is something that sophie touched on. dollar bear is getting a warning sign as asian banks pushback. a lot of asian banks don't want to see it continue to weekend, but the pboc is seeing it as a way to keep the yuan from strengthening. they hope to see that reverse a bit. south korea has been warning about its stronger currency. taiwan jumping in as well. let's take a look at g #btv 5209 and it you can see how the asian currency index at a 29 month high pullback after this latest an analyst quoted in

the story saying when the chinese made this change, this aiming down --s slowing down the gains in the chinese currency and after that the dollar rose for four weeks. that's when u.s. yields climb from the year's lowest levels. maybe this is about a lot of things, but one thing is simple, asian nations are dependent on exports here it if currency gets too strong, that could be a problem. it all reverberates, all next to markets here to mean something not just for currency, but for bonds, and maybe equities can rise above it, but some saying the higher they get, the less the equity bulls canned ignore it. does that become more hurtful for equity, that will be the big question. to bitcoin now, you may remember jamie dimon calls the current see a fraud.

in the intervening four months it has nearly tripled in value. now the ceo of j.p. morgan chase has changed his tune. thoughts, ramy? ramy: it seems that way. when you take a look at where bitcoin has done for the past few months, you can be a bit more understanding. taking a look at where he said those comments, that was on september 12 here it followed the white line annotation and you can see it's up about 238% since then. down just buy a couple percentage points today, but you can also take a look at where it has been at a peak. we can see there is some remorse in terms of what jamie dimon said a couple of months ago because of these two huge rallies. let's flip the board and see

what he actually said. he said the blockchain israel and a lot of people said the blockchain is real. it helps transparency in transactions if you have them. he goes on to say you have crypto yen and dollars here it he goes on to say he just has a different opinion than others and he himself is not interested much in the subject at all. i am interested if he will change that as well if it continues to rally higher, but one person who is pushing orward is mike no progress -- a famous wall street trader he says he wants to start a merchant bank with some of his money, $200 million. he has laid out a plan. he wants it to start with galaxy buying canadian cryptocurrency called first coin capital. after that, he wants to merge that with a shell company called

pharma. he wants to raise money and then farming.at galaxy -- this is actually -- if it happens, it will happen quickly over the next couple of months or so. he says he wants this wrapped up by the first quarter of this year. >> certainly no relief at all in our crazy focus on bitcoin. thank you so much, ramy. containing shipping -- container shipping companies are bracing for expectations that increased capacities will outpace demand of the first time. first off, what is the biggest challenge that container

shipping lines are going to face this year? will be the it increase in capacity. over the last are years we have seen a decline in capacity because all shipping lines have basically been reporting losses, smaller profits, because the overcapacity that they have seen over the years have pressured their profit and we saw the collapse of one of the top whichner lines in 2016 are up a lot of discipline. -- wencrease in rates will probably see a bump in capacity this year, next year, but we should see that even out with a man going forward. expect morethey demand going far with these container ships? seen, thend a we have

consolidation we have seen over the last three years or so has really pushed the top five to dominate the whole market. there's a bit of competition among the top five to basically get more market share and the more market share they can get is pretty much from ordering all of these ships as well. the other part is unit costs. you can pretty much bring down your unit costs in that is ineffective if we are in a market where prices might be higher, other costs might be going up. it is a double-sided and that they are looking at, unit cost bringing down the cost for them to improve profit, but also to defend market share as well. >> and global trade picture looking better, too. you talked about consolidation that we see in these big giants

now, the supersized shippers. how that change the market, the bankruptcy of hands and an costco? >> obviously the whole am in a consolidation we have a nova the last few years has really been brought because the container shipping market has been making losses ever since the financial crisis and obviously that couldn't be sustained. they had one of their most years in terms of freight rates and profitability and that led to the collapse. i think a lot of the troubles that they had faced brought in a lot of discipline, which i think a lot of shipping lines are maintaining, but at the same time some shipping lines are obviously the ways they could probably secure more market share in an environment where the top five putting much dominate the market. that doesn't mean that the m and

a activities are going to be finished. we are still expecting more, but probably a smaller size in the past few years. obviously it is still a changing market in this industry. >> thank you. joining us live from singapore there. coming up, a major hollywood thisr, the company's ceo is bloomberg. ♪ , in just a moment.

>> president xi jinping is it andng a growth oriented -- as you see the chinese are developing -- anybody in america believes that the chinese are followers on technology, think

again. they are leaders. >> our focus is on enabling partners. we have been working with partners to build data --patible smart from smartphone viewers. i continue to see that to be our approach in the future. >> we think our way of organization is inefficient, so we begin a new one with investments up to $200 million a year for the next plan was as up to more than $1 billion in order to support turning the car into a elected, autonomous -- electric, autonomous. >> those are some of the big names we have seen in las vegas who will be there all week long. disney made a shocking -- to the landscape. chang ceo spoke to emily

and he wants the company to be a buyer in the media consolidation raise. >> it is premature to start naming names. the strategy now is to make sure we have a strong operation first and foremost before we start looking at options. as the successes, we will enter into a them, but the idea -- the first priority is to make sure we sure of our own studio. emily: what that involve better ip, better distribution, better ties in asia, a focus on more niche movies, for example? think you hit great points. i think the first thing we need to do is to look at the ip libraries we have, spider-man being one of the greatest. we also have two monti, for example, something of an arrival for us and make sure we go back into our library and take

advantage of the library we have. think there is a lot of potential for packing into our videogame ip, those discussions are ongoing as well. and it is also making sure that we have the right kind of as we go into motion picture production to make sure that we have the appropriate producer fees and make sure week control production costs, another area we need to focus on more. you are a stakeholder in spotify, what do you think their plans are directly and does sony have intention of selling shares? this point we have not made determinations in that regard, obviously it is one of five's decision to go into the public market and i think that will give them more ability to make more investments in their business going forward.

emily: the music and is shifting dramatically. i'm curious what your expectations are for you to paid music service and how that will impact the record industry at large. i think with youtube, spotify, any online services we have wheels with, both on the recorded using side and on the publishing side is going to make sure that the recording music industry continues to grow and that we give artists more opportunities to really get their music out to the consumers through visa services. i think the music business is a very important reflection point for further growth and i think that -- we were talking about the decline of physical distribution but now all services are coming online. i think it is a great time to be in the music business. sony made a deal with

facebook, what is the motivation and what you think facebook's intentions and music are? z: i think with other online players they are looking to make music a part of their service but they provide to the customers and you know, i think it is a competitive edge that a lot of the other providers need to have, because music is an integral part to everything that we do in terms of how we enjoy content. emily: looking out through 2018, what do you think is the biggest risk to economic growth this year? z: i think from a sony perspective, we want to make sure that -- whether it is multilateral or bilateral discussions that happened between countries and territories that there is a free flow of content product, also data as well, as well as people. every time there is an issue or some hindrance to stop that free

flow, that's going to impact business in a negative way. i just want to make sure that in these discussions, free trade of various goods and services is on the forefront of everything we talk about. ceos: so, sony traditionally have a six-year tenure, you're coming into your sixth year this year. i'm curious what your intentions are and your own plans are for this year? i serve at the pleasure of the board and shareholders. our secondleting three-year session, going into our third as of april. we want to make sure that we plan and execute accordingly. that was the sony ceo speaking to emily chang. if you want to see more of the interview, don't forget our

interactive tv function tv . you can catch up on past interviews and dive into the bloomberg functions we talk about. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ s is bloomberg. ♪

rishaad: