one area is in southeast asia.elivery service to the region, including here in singapore. it promises to bring products like groceries to your door injust two bring products like groceries to your door in just two hours bring products like groceries to your door injust two hours by ordering on their app. it is the current —— the company's first for a into this region, and it is going head—to—head with china's alibaba. earlier i spoke to the chief of a consumer technology website and asked them why these well—known companies had a difficult learning season. companies had a difficult learning season. you companies had a difficult learning season. you never companies had a difficult learning season. you never know what happens in the financial world. it is quite interesting in terms of the innovation. for example, amazon prime, promising to our delivery times in singapore, that is quite exciting for the south—east asian market. we have never had anything like this before. let's look at twitter. twitter is failing to g

ig asia joins us next.his is bloomberg. ♪ yvonne: we are counting you down to asia's first major market open. look in tokyo, futures as well, down 120 points. 111 territory.nd the fed holds a two day policy meeting this week. no one is expecting any changes. thestors will go over post-meeting statements about reducing the balance sheet, any indication of the timing of that. let's discuss all that with ig asia live from singapore. great to have you. when it packed schedule comes to earnings, the fed, and that gdp fron print on friday. what will you be watching the most? >> a lot of the attention has been on monetary policy, but the and fomc capturing the market attention. ,2 gdp at the end of the week expectations on growth and earnings will be continuously pouring in. for u.s. earnings, especially s&p 500, we are in the heart of the earnings the season. yvonne: everyone still seems to think that equities still have further to go here. far, we haveso seen stocks and bonds rally, which is counter intuitive. c

good morning, asia. hello, world. welcome to another edition of asia business report. it's a monday. it is gearing up to be a big week for corporate earnings and monetary policy in the region. later today, we expect quarterly earnings from japan's panasonic and british lender hsbc. on tuesday, the reserve bank of australia gets together, expected to keep interest rates at i.5%. midweek, india's reserve bank will decide on rates. rio tinto will give interim earnings as well. here are more details. if you look at what has been good in the japan economy, it is technological goods. panasonic is high. from the profit planning perspective, a lot of them use the yen. certainly, there is room for profit. rio tinto may be different in the sense that expectations for the commodity sector have been poor. 90% of their revenue comes from iron ore which is doing well. investors are expecting a buyback and higher dividends. there is good news. what about big financial giants like hsbc? will they mirror what we have been seen from other big international banks? they will hope their tr

the second hour of daybreak asia coming to you from the u.s. and asia had orders. on 8 a.m. here in new york. and sherry, of course, we're watching how the markets are opening right now. market delivered by earnings season. netflix, this huge subscriber growth not just in the u.s. but also overseas. for netflix and gearing up for goldman sachs, ibm, bank of america, so many more. we also have data points to look at property prices out of china, not to mention the minutes. excluding japan. remember, japan was on holiday yesterday. the markets get going. -- so i wonder >> this is now at a three-year low. with the function to show you how. weaker there at the end. slight gains in sydney and soul just fluctuating at the open here, this having slight gains on monday. take a look at the aussie dollar down about .2%. ahead of the rba minutes. we have offshore snapping a five day advantage. the support level, watch that level closely. born.have iron flat-ish in 2018. we have aluminum falling in june. the way we went this morning, but now it is up about .2% at $48 or $50 a barrel. th

why asia? we have beenin property bubble. why asia?a for 44 years, we thought it was the right time for this project, which we brought back in 2015. ultimately it stems from being a multigenerational company in this new and vibrant community. that isa this new and vibrant community. that is a bit ofa this new and vibrant community. that is a bit of a challenge, because if you build it, will they necessarily come? the great thing is that we wa nt come? the great thing is that we want a retail and residential cycle today, and we have seen are starting today, and we have seen are starting to pick up. we are pretty confident on the singapore market. we think it is going to start turning and growing from this point on. the other thing you are doing is you are trying to target the elderly market, thatis trying to target the elderly market, that is a problem in asia. tell us how you are doing that? in australia, we are the largest owner and operator. it has been a core pa rt and operator. it has been a core part of our business. china has a g

from daybreakit asia.are there many who said i want to be the leading cellist in the world? >> in music there is no such thing as this is the greatest anything because it is about learning forever. >> what about where you play? >> you don't have to be there. i don't have to be there. if were going to spend time together, let's make it count. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪ david: i don't consider myself a journalist. and nobody else would consider myself a journalist.

this is "bloomberg markets: asia." ♪

this is bloomberg. ♪ ♪ yvonne: "daybreak: asia this is "daybreak: asia -- this is "daybreak: asia."'s talk airlines, because spring airlines is set to restore some flights from china to japan and south korea. the announcement comes as political tensions ease between china and its neighbors. yvonne: the deployment of the missile system seems to be the of contention. the ceo told tom mackenzie that giant airport being built in china will provide more spots for private carriers. fly more flights from japan, korea, and the southwest asia region. japan is most profitable. -- it is -- those countries are larger. we are still developing. we are looking for the new .resident tom: where is the competition coming from? itit high-speed rail? -- is high-speed rail? not direct from the airline, but from china we see lots of opportunity occupying probably 80%. important,na is very especially for the young generation who likes to use the online. think -- tom: how much of a challenge is getting new slots? >> a lot of airlines have no place to go. beijing has known slot, -- has no slot, shanghai has

and could be hitting asia.about what happened in the past several hours in europe. the selloff, commentators saying it was more technical, nothing fundamental change that much. sophie just mentioned it, there auction.k french bond also a spanish bond auction. the german booming deal hit an 18 month high. they broke above where they have been since early 2016. what is going on? mario draghi last week spoke at the ecb for him and was talking from turning the economy deflation to growth into a more reflationary trend. it was taken as a very hawkish comments suggesting the ecb is getting ready to purchase fewer bonds and getting ready to ease buys. we did get the meeting notes and we found that it was discussed a possible exit from this easy policy. nothing was decided. there was a lot of caution which was expressed again today by the chief economist of that european central bank trade he says we have to be patient with this policy. no surprise, the president of germanyhist bank from says he see's the exit door bec

it's wednesday, good morning, asia, hello, world, glad you could join us for this edition of asia businessico hizon. narendra modi is on an historic three—day trip to israel, he is the first indian prime minister to visit and it signals warming relations between the two sides. defence deals are expected to top the agenda. india but has become israel's biggest export market for arms as it seeks to counter china and pakistan. it gets an estimated $1 billion per years in weapons —— per year. the fact neta nyahu the fact netanyahu received modi on tuesday at the airport signals the strength. india has been historically supportive of the palestinian cause but quietly it's been working on its relationship with israel and until now mr modi has given credit to israel. the main focus of the trip will be economic and strategic. india is already israel's largest arms market, buying weapons worth $1 billion every year. on this trip mr modi is expected to push forjoint development and sale of drones, missiles and radar systems and the signature make in india campaign. bilateral trade between the two co

you "daybreak asia" are watching "daybreak asia". let's get to first word news now.ater the government is changing its tune on brexit and use a speech to business leaders are adopting as realistic tone following the snap elections. splitns about an abrupt from europe were not be discussed. iran will sign a deal on monday to develop the roads biggest gas field in collaboration with total and china international petroleum. 51.1%, whilentrol see in pc will also have an interest, and iran, 19.9%. the trump administration is considering separating the repeal and replace component of abolishing obamacare. white house says the president wants to pass the deal soon. toldweek, mitch mcconnell the senate health care bill from consideration, facing opposition . revenue in macau missed estimates last month's concerns grow about tighter gambling regulations. it follows an 11th straight month of increasing revenue. wereer, median estimates for a 30% rise. almost 30%ks rallied this year through friday. the launch of the latest bess x mission has been aborted -- space x mission has

coming up, the race to asia's top aviation hub.his is bloomberg. ♪ shery: the race is on to be the top aviation hub in asia. around half trillion dollars is this -- to be spent around the region. our asiang in aerospace reporter. tell us the reason behind this drive. >> the reason is basically with the economy rolling, there are more middle-class people here in asia. a lot more in china, a lot of coming up in indonesia. there are more people that can afford to travel now, so that has driven the market. boeing and airbus, they estimate the air travel market to grow 2.5 times bigger than what it is now. the chinese for example are expecting travel to grow almost quadrupled from what it is now and become the biggest market in 20 years. obviously there's going to be a lot of people who want to travel and that's why people are investing in airports right now. we think about travel hubs in asia, we usually think about hong kong or singapore. how are they trying to cope with this? tothey are also expanding keep pace with the growth in dem

in asia you will find the smoking prevalence asia you will find the smoking p reva le nce over asia yourevalence over 40% of men, they are smokers. this translates into big business. not just smokers. this translates into big business. notjust for bat but the tobacco itself. when you look at large make it to markets such as indonesia where two out of three men are smokers, this is a huge pocket. in the philippines you have 17 million smokers. the future profits of bat is asia and other emerging markets. ‘s a quick look at the markets. ‘s a quick look at the markets and how they have opened here in asia. than japanese market is flat as is the australian. that is flat as is the australian. that is that make it for this edition of asia business report. the top stories this hour. president trump's eldest son could be called to testify in the us congress — over allegations of russian interference in last year's election. after his latest setback — the us president says the new republican healthcare policy should be to let 0bamacare fail. later today the bbc will publish its annual report, wh

plenty more to come on "daybreak: asia." this is bloomberg ♪ yvonne: this is "daybreak: asia ."hays in new york. yvonne: i'm yvonne man in hong kong. a quick check of the latest business flash headlines. japan's most popular messaging service topped estimates after handing office photo and camera business. vine's operating income soared $130 million in the three months through june, smashing forecast of $52 million thanks to the one time photo gain of $93 million. however, user growth has flagged as focus shifts to fight facebook's whatsapp and messenger. kathleen: the nintendo switch is becoming a money earner. profits topped estimates. operating profit was $145 million, beating forecasts of $95 million. currency gains helped to boost profit after the yen fell 10% against the euro. nintendo collected 25% of its revenue from europe. kicked offc has earnings season for singaporean banks. second-quarter income rose 22% to 796 u.s. dollars, 15% more than what analysts had been expecting. the companies saw growth in its management and insurance operations. ocbc acquired barclays wea

this is "daybreak asia," live york andmberg's new asia headquarters. am in new york, it is after 7:00 p.m. yvonne: and it is just after 7:00 a.m. here in hong kong. lots to talk about. much from president xi and chancellor merkel. but we are focusing on the fmoc minutes. a divided fmoc when it comes to the balance sheet timing. betty: absolutely, the timing is key. a lot was propelled by confusion or what is confounding fed officials, and economists everywhere, which is, where is inflation in the u.s., despite seeing lower unemployment rate numbers? we are almost nearer full unemployment in the u.s., yet no inflation. that is complicating the fed's direct timing. coming back from a long weekend, we saw the markets at first it dipped then they rallied with tech shares. we will go into detail without any minute. a slightly mixed session in asia. yvonne: it looks to be. 50.ty flat on the anz the kiwi not doing much, .7289 right now. oil bouncing back in the early asia session after that 4% drop overnight. we are sitting at 4555. we are seeing a bit of a b

yvonne: possibly here in asia as well.rly fourth of july to you in the u.s. to talk about the thin volumes. we saw pronounced moves overnight. talk about the 10 year treasury yield jumping to 2.34%. the dollar was also the big star. better manufacturing data out of the u.s. let's look at this function to look at how the asia state of play is so far. we are continuing on with the upbeat sentiment, particularly in japan with futures there. up .6%. the nikkei 225 is up .6% because it is a hollered -- higher dollar-yen. mixed for fx in asia so far. and the kiwie yuan dollar. the aussie is holding flat. no change expected even though there is an rba decision later on. hawkish statement coming from the governor there. betty: a good summary. the rba decision will stand out in today's trade in asia particularly before close tomorrow. let's get to the first word news with remy inocencio. ramy: the japanese finance minister is strengthening his political power base to give him more control over the ruling liberal democratic party. h

this is "bloomberg markets: asia." ♪ haidi: asia pacific markets in a downbeat mood, but it is adriftair as investors await janet yellen's testimony. rishaad: t

the second hour of daybreak asia coming to live from bloomberg's u.s. and asia headquarters.after 8 a.m.. >> and i'm betty liu. a tired market in the u.s.. a lot of the focus turns to asia. we've seen china continues to accelerate. raining and financial risks. we are raining in the boj and we see the dollar fall. what does that mean for the asian currencies? a lot in the asian markets. we will talk about that in a little bit. let's get to the market open. the weaker dollar and the tech space can lead to some gains here. but we seelly, tiredness and perhaps a lack of direction. for clues around the economic growth story, company earnings will also be weighed when it comes to prospects there. to go look at the equity markets. we have the nikkei 225 sliding .2%. and in sydney, rising .2% after that deep selloff that we saw on tuesday. over 1% slide shares, a mixed start when it comes to stocks and bonds. the climbing tracking the rally. they hold ground above 1242. wireless lighting. arising u.s. supply. it may deepen the export cuts, steal and aluminum, potential u.s. tariffs.

and asia headquarters., we are building on the rally we saw on friday into the asian markets, but you get a feeling we are waiting with gdpd breath for the chinese numbers and economic numbers to come out and set the tone for asian trade. one,at will be a big especially fixed asset investment, retail sales slowing down, but 6.8% gdp. in two hours time, but let's look at the market open. sophie: quite a bit to consider monday aside from the china gdp data this morning, the work conference to consider over the weekend and what president xi jinping highlighted, deleveraging and risk management the main priorities, so the offshore yuan strong ahead of that data drop. the core inflation numbers out of the u.s. on friday did not dampen wall street's enthusiasm. shares in seoul, korea gaining .5%, the tech heavy kospi tracking tech shares in the u.s.. marginallyks lower, lower, down .1%. trackingds dropping, the drop in u.s. 10 year treasuries. japanese markets closed, but futures hinting at weakness. the yen stre

asia obviously a huge region. 0ther response happened. asia obviously a huge region.ading the new infections of hiv? well, there are about ten countries in our region that make up the bulk of the new infections, but amongst those, there area infections, but amongst those, there are a couple of countries, the philippines, pakistan, that show us that they need to be looking at where is the epidemic occurring? and it changes. the virus is not taking a rest. it is changing. new populations are being affected. png, which saw drastic declines in new infections, is now starting to see increases again. so it shows that these countries among others need to maintain vigilance and improve their prevention programmes. new innovations, self testing, community—based testing, preexposure prophylaxis which is showing 90% reductions in infection in other countries, need to be introduced into the populations here in our region. you are highlighting what they need to do. have you had any indication of from any of these countries in asia that they are willing to have an open dialogue abo

you are watching "daybreak asia ."matic day in the saw mike pence cast a tie-break vote to allow debate on health care legislation to proceed. however, it is still not certain if it will go to a vote. senator john mccain returned to apply both sides -- to applause by both sides. he said he will not support the latest version of the republican bill. taking a greater role in financial regulation. they will step up supervision of institutions, a job that previously fell to the china banking administration. the bank also says it will pursue monetary policies to keep money growing at an appropriate pace. the two new boj board members say it is too early to talk about the program because inflation remains far below target. replaced board members who lost faith in governor kuroda's strategy. they underlined the view that japan may be behind its peers in unwinding stimulus. raise three point $5 billion in its first visit to the international bond market in more than three years. they are trying to move on from a debt crisis th

this is daybreak asia. i am betty liu in new york where it is just after 7:00 p.m. >> it is just after 7:00 a.m. in hong kong. i am yvonne man. misslk about mrs. today -- es today in earnings. south korea coming in negative at 3% drawdown or the month of june. the estimate was for quite a sizable uptick at 1.1%. also not looking great. we are seeing it down .2%. economists were expecting a 1.6% spread. we did talk about gdp yesterday, which did slow down from the spread we have seen in the first quarter. we will continue to watch how this ways out in korea in just about an hour's time when they inct -- plays out in korea just about an hour's time when they react. tech has a lot to the downside. day loucheave had a of earnings. we are going to amazon in a moment. eluge of earnings. we are going to amazon and a moment. we will have retail sales as well as inflation giving more clues. the fed seems to be on hold with rates. what is the boj going to do? it looks as if the ecb and others are on a tightening tren

sachs asia-pacific strategist tim moe.ay you were in the third phase of the business cycle for asian equities. what does that mean? >> in simple terms, what we are doing is looking at how nominal gdp growth is also leading to time. the reason -- rishaad: it is always oscillating. of course, but what we have noticed empirically is if you growth,nominal including inflation, it is much better correlated with earnings growth and market performance then real gdp growth is. we look at a measure of sequential growth, because markets look at things on a derivative or delta basis. as we look at a proxy of monthly gdp, how that goes through time, you can identify four phases of cycle.ess this is nothing new. kind of standard. the first phase, you are growing above the trend and accelerating. the second is about the trend but slowing down. the third is below the trend and falling. the fourth is when you are recovering from below the trend and bouncing back. season --nto earnings >> typically when you are above and accelerating, that

hello and welcome to asia business report. i am sharanjit leyl. to asia business report. i am shara njit leyl. taiwanese electronics manufacturer foxconn just announced plans to build a flat panel screen plant in the united states. at an elaborate press conference in the white house a short while ago, foxconn said it is investing million —— $10 million. i asked our correspondent how big a deal this is for the us economy. president trump campaigned on the idea of bringing manufacturing jobs back to the united states, especially in america's heartland. so certainly from his perspective, and from his base‘s perspective, this is a really big win. you see this is a really big win. you see this company coming in, investing $10 million, that is going to create 3000 jobs, and is just $10 million, that is going to create 3000 jobs, and isjust beginning. from the perspective of the governor of wisconsin, where the plant will be built, he has said this is going to then explode into up to 13,000 jobs. so there is certainly a lot of hope with this company coming into wisconsin. all ri

this is bloomberg. ♪ 11:00.s >> this is bloomberg markets asia. ♪ --di: asia-pacific markets the yenraight games -- days. >>

and therefore all of asia. just your thoughts on leadership in asia as the role of america. >> i'll take the t.p.p. piece. we can talk about north korea. that's a moreably cated dynamic as it relate -- more complicated dynamic as it relates. the u.s. withdrawal from the trans-pacific partnership again, as was indicated in the survey results, devastating to perception it's of the united states -- per essentials of the united states -- perceptions of the united states. ely: the reason why that matters, there's a growing perception in asia that the future of the economic order will be china-led. it will be china's rules, china's institutions. multilateral or informal that will be convening the region and determining its course and the trans-pacific partnership was the best mechanism to provide an alternative to that. the reason it matters primarily in my view is not just because of the economics of the effects of the trade deal. in fact, i think there are questions about how pronounced that would be. but because t

asia isa most important thing for asia. asia is a very attractive market.creating a platform, even without the us, makes the entire area more attractive. trade talks are keeping going. this is very helpful. but the linchpin of this trans—pacific partnership is the united states, and it represents more than 60% of the initial members' gdp. without the initial members' gdp. without the us, the ii the initial members' gdp. without the us, the 11 remaining countries will not represent a whole lot. absolutely. it would bejust15% will not represent a whole lot. absolutely. it would be just 15% of world trade, and a lot of that is already covered by existing ftas. within asia most countries already have that relationship, so that the question is, where is the value? it's easy to see from the american side, canada, mexico down to per room, they don't have these trade agreements and they are very interested. the drivers are australia and new zealand who needs of platform access to the asian markets. now japan is of platform access to the asian markets. nowjapan is g

like in southeast asia.t asian companies have -- countries have become a hotbed for chinese investment. it is a pot -- popular hunting ground this year. yvonne: how do you see this playing out? do we know how for these probes can go? obviously, we have to continue to monitor the situation. i would say the overall is not entirely a surprise. lots of companies have taken on a lot of debt, a lot of companies have been very acquisitive. sections we are going to conducted this year will be more discipline and strategic. it will be within our core sector. we will look at transactions not within, and the main drivers behind it. yvonne: good to have you, head of china m&a, joining us in hong kong. we like to bring to your attention our interactive tv function. find us by going to dayb on your terminal. you can watch us live and see previous interviews. on the right side you can dive into securities or functions we talk about. you can save it to your own library. if you have a big question you want to ask for ou

we talk about the underlying aspects of asia.rs, ifvalue you by higher valuation price to book stock, and a-shares you do well compared to buying a low share. that's because the book value is more reliable than the income statement. it's just a young emerging-market in that sense, but the msci china and hang seng, hang seng in particular, has been going since the 1960's, these are markets global investors can be involved in. highly sophisticated investors, high net worth individuals and institutions, they can all be involved in hong kong blue chips, which have massive chinese drivers to their earnings. that's why we find that you can constitutively that hang seng and msci do a good job of rejecting future china macros. it was not particularly surprising to see strong china macro yesterday. haidi: always a pleasure, jonathan garner, chief asia strategist at morgan stanley.coming up , a blockbuster quarter for netflix, seeing subscribers top 100 million. but has it finally managed to profit? we will break down the earnings and see

considers that the alliance system, especially in asia or at least certainly in asia, has contributedto the stability of the whole region, which has allowed china itself to prosper and we, i think, recognize in the u.s. the alliances come in a rather broad spectrum of difference kind partnerships and commitment. another difference. the u.s. applauds china's ambitions to make greater contributions to the global development, but has also expressed some concerns about whether these chinese-led institutions will develop norms of adequate transplantation parent si and governance, and those concerns, among others, let the u.s. to decline to par tis -- to join aaib, but i think as we indicate in the u.s. report, there's been a change that are views on the u.s. side and the report remmed that the u.s. consider -- recommends that the u.s. consider ways of cooperating in aaib and as you probably mostly know, a high level u.s. government representative was recently sent to the forum in beijing. the most complicated and difficult difference that has emerged in this area concerns the phrase, liber

this is bloomberg. ♪ yvonne: this is daybreak asia asia. i am yvonne man in hong kong.i am betty liu in new york. plunged your the car rental company said late friday it could not meet all the conditions to read team its 2019 -- it owns -- there is speculation that next week's earning report will be worse than expected. barclays analyst's predict stock will fall to nine dollars. yvonne: heineken outshone rivals in the first half with emerging africa-driving growth. the brewer to the crown of best performer from another. there is demand for tiger in vietnam. adjusted operating profit grew 6% to $2.1 billion. analysts had expected to billion dollars. to $2 billion. added more than $12 billion to his fortune this year. has $33.5 billion. $1.7 billion behind on bonnie -- ambani. i hope people realize that was irony. [laughter] betty: speaking about someone who is not for it at all either is jeff bezos of amazon. really interesting story on the bloomberg i want to point our viewers to, which is donald trump talks about how much he ?entions -- right on amazon.ing the word ama

this is "daybreak asia" live from bloomberg's u.s. and asia headquarters.t is just after 7:00 p.m. >> it is just after 7:00 a.m. in hong kong. happy monday. d.c., dysfunction on the health care bill, what will come next? a lot of earnings to talk about. data of the the day. this hour, we get output numbers from japan. absolutely right, seems like every other day we are getting strange new headlines from washington. sort't think anyone can out what the cumulative impact is of all this infighting going on. who knows what we will wake up to tomorrow in the u.s. you are waking up in asia, so how does it look so far? positive, looking at new zealand, some profit taking in terms of asian stocks off 10 year highs, but more of a picky market as we look at her earnings downgrades in some markets like india and indonesia. .20%, the kiwi still a two-year highs and no signs of stopping as the dollar heads back into those lows as gdp rebounded, but not as much as expected. australia, the rba meeting later this week. pointing to again with the asx 200 after capitulation

peter wong, the ceo of asia's busy asia—pacific has said that this will bea asia—pacific has said thator the continuing development and globalisation of china's bond market. optimism from hedges busy. and this trading link is coming so soon after china's inclusion in the msci. it is another opening in the chinese financial markets? absolutely. this is a significant step. one of the requirements in the recent listing of mainland chinese shares is that foreigners could access the shares. investors, chinese bonds will soon become a part of global bond indices. —— some of these were via hong kong. —— with unfettered access by foreign investors, chinese bonds will soon become a part of global bond indices. the philippines is a standout in the region. it is one of the korean economies in asia exhibit infrastructure spending and robust demand. according to the world bank's most recent projections, this could see growth of 6.5% — 7% this year alone. this week, i spoke to be head of the philippine central bank. in his first interview since taking job, asked him whatjobs lay ahead. we arejust jo

contributing to peace and shared prosperity in asia pacific and beyond. [speaking in a foreign language] [speaking in a foreign language] >> translator: just before coming here i held talks with president trump. and prior to that had a series of americans with american secretaries and politicians to discuss ways to strengthen our partnership. we agreed on range of collaborative actions to realize the twin objectives of growth and jobs beneficial to both sides. we will encourage our businesses to better connect our two markets in a way that would bring the most benefits to our people and to our businesses. [speaking in a foreign language] >> translator: the heritage foundation is an independent research institution, having positive influence on america's policy making process. your initiative and recommendations have been implemented. the foundation's core principles and values are crucial to social progress here in america. your insightful analysis, policy recommendations, and initiatives, are useful sources of information and reference for many nations,

and asia.etter position today than what we experienced in 2013 that caused the taper tantrum and the moves at that point, so pockets are still attractive. you have to keep looking for that. well, of course we have janet yellen speaking this week, but does that have an impact on what is happening here at the moment? how do you look at emerging-market debt currency? how popular is that with the clients you are talking to? very much in the discussions. we are seeing inflows in emerging-market that as an asset class to the course of the year, with a small turn in the last couple of weeks. looking at the strength of the emerging markets and emerging asia and other countries come in terms of the balance sheet, the investor positioning and the valuations, i think the emerging-market debt will stay in favor come although investors will get more selective between now and the end of the year. rishaad: how carefully our people and companies looking at ,redit denominated in dollars preferring their indigen

this is bloomberg. ♪ >> this is daybreak asia.n talking all morning, talks between the world's biggest economies make a rocky start, wilbur ross upgrading china over the trade imbalance. there is warning of a trade war. no one would win in that situation. >> it is important the u.s. stake out its position in terms of specific types of products or services that are now closed to u.s. companies, and how they need to be opened up. the united states needs to press china for a timetable and commitment. a measurable commitment to opening up so many sectors of the chinese economy that are closed to u.s. participation. number oneerica's export destination. tradeexports, and two-way , support and create millions of jobs here in america and millions of jobs in china. the more we can sell our services to china the more jobs we create at home. -- needsso many needs and demands of the chinese consumer. these are the win-win propositions we need to keep pushing. >> what is the most successful way to push those solutions? is it just through dial

d i did the asia pacific paper. but with a lot of participation from bonnie and doug paul and other experts around town. and this is a good discussion. and now for the really hard part. i'm going to invite the next panel to come up. we will give you room now. thank you very much. [ applause ] >> good afternoon. the first panel really did a stellar job of staying within the time limits and in staying within the guidelines of not simply summarizing their papers but actually looking for area, of convergence and divergence between the views of the two sides. and particularly those with policy significance. our panel will be dealing with a different set of issues. but ones that are actually also fundamentally important to the bilateral u.s./china relationship. economics. this was the area which during our election campaign seemed to be the most controversial issue between china and the united states. unlike the exciting north korean issue which gets a lot of the attention, the problem with the north korean problem. the a

david: this is "bloomberg markets: asia." ♪ haidi: japan leads the asia-pacific down at the start of week dominated by earnings and the fed. the yen heading for a fifth day of gains. david: watching oil weakening as producers discuss output. fears growing that current curbs won't drain the current glut. eases the strain as the city looks ahead to the olympics. china has a puzzling problem, the labor market tight, unemployment low, yet wage growth continues to be week. -- weak. we rarely talk about wage inflation in china. the other thing counting down to the open in china, last week, we that roller coaster ride brought together the nasdaq -- have a look at my chart btv 6495 on your terminal. we are looking at valuations about the same, 35 times current earnings. is downhelp the chinext 14% while the nasdaq is up 18%. perspective,ion right at parity. we talk about the nasdaq the nearer ring of that gap. we have a huge week when it comes to tech earnings, amazon, facebook, twitter, also big financials. that will determine the tech rally-software that goes from here, then looking ahead

bonds and asia tracking treasuries.ollarave the softer powering asian forex today, the yuan stronger for a six straight day, and the aussie at a two-year high. the offshore yuan, a high for 2017. the yen gaining ground, 112 level, which is dragging on shares in tokyo. seoul and sydney not tracking fang stocks on wall street. .4%, justcks climbing recovering from that loss on tuesday. that climb led by banks. dropping, weakness in oil and other metals like copper, but steel and aluminum rising amid potential tariffs from the united states. given the dollar weakness, the aussie is the best g-10 performer to date. retreating from the 14 month highs ahead of the ecb meeting. questioning whether this rally could be at risk with a more and theario draghi, pound continuing to fall after a drop in u.k. inflation to 2.6%, so concerns over global growth weighing on investors minds. haidi: absolutely. , the boe hasanner more to think about with that inflation. let's get you caught up with first word news. paul: the white house has

trading in asia, we look at adam haigh.bout the moves in the yen, some political moves we are seeing in japan. yeah, it is all about the assembly in tokyo, and this is one of the latest hurdles shinzo abe has got to clear. a lot of turmoil he is building around him. assemblyre this election, there was talk with you would need to redo his cabinet. people have been making predictions that will happen in august or september, so we are seeing strength in the yen-dollar, but it has come back a bit. so don't go too overboard on the move. storyis an interesting where the advisor to shinzo abe, his indication that he thinks doernor kuroda should not another term. but some of the pressure the economy faces. japan trying to find inflation somewhere. it has been a tough year .or any dollar bull history tells us it will get even worse. it does. this, 697, it shows us the picture of how poor performing the dollar has seemed this year. this is tracking the dollar against the economic surprise index which we know report after report just

hello and welcome to asia business report. i am sharanjit welcome to asia business report. i am shara njit leyl. welcome to asia business report. i am sharanjit leyl. from exploding mobile phone batteries to its chief executive being behind bars, samsung has had its share of scandals, lately. despite all about, has had its share of scandals, lately. despite allabout, it has had its share of scandals, lately. despite all about, it is more money than apple in the first quarterfor more money than apple in the first quarter for the first time, with profit coming in at over $12 billion. and as this mobile research a nalyst billion. and as this mobile research analyst explained, it is all due to its chip business. samsung has found itself in a fortunate position where there is undersupplied in the chip business and there is a strong demand for high capacity, high density memory chips. so that has driven the prices up and, samsung being the one with the biggest capacity in the technology, has benefited tremendously. shareholders have been driving the shares up in recent months. do

this is "bloomberg markets: asia." ♪ haidi: asia pacific markets , the dollar its lowest and was a yearshaad: president xi turning his attention to the public sector, state owned companies will be held accountable for debt. haidi: frankfurt is the brexit winner, deutsche bank and citibank the latest to confirm their move. rishaad: show us the money, any money. the cashless economy and a market worth trillions. it seems like all the event risk is behind us. forward to some people putting their feet up boj, allay, ecb, coming out with policy statements. conundrum presents a for mario draghi. despite being incredibly dovish after that ecb lack of action yesterday, we have a split on whether the ecb should be changing its quantitative easing language, deferring how and when on the next to towards normalization later this sheer. index, a basket of currencies, back to levels before qe started, in fact, slightly higher. the conundrum is if you look at inflation, it has crept up to being higher than that. , and indeed,enign perhaps, that does portend, tell you some dovish this in the european c

11:00.s >> this is bloomberg markets asia. ♪ --di: asia-pacific markets the yen is halting -- holdingive straight games -- days. saudi arabia -- haidi: his vision for korea. seeking to create much-needed jobs. now says ite world is controlled by charities. a major shareholder has dropped out of sight. now.ing news right group -- growth on better exports. you this better budget that will be fleshing out. mentioned that 2% target. just extrapolate that from 3%. have a look at markets right now. has the market ended or are we about -- when you look at what happened on wall street , flatght, look at asia for a second straight day. the momentum that has actually been built in, still very much intact. there is a lot on this chart we have right here. let me bring up the panel for you to give you a sense of what it is looking like. we were almost worried, do we get below 40 on the rsi? usually that is a signal that it is about to turn. in a lot of ways, you look at this chart. it does seem high. it is very much alive, kicking, and well. is all about perspective. it is only been -- has only be

or in the asia pacific? >> i think that's the whole question about collective security. i mean, it really does show the predominance in agreement where they can defend themselves from an armed attack and also something that we've been talking about which are hybrid attacks and these are ways of trying to find common ideas which would make us find common goals. but it's difficult. but it does help, for instance, having just been. i've just been in georgia and ukraine. they are not members of nato or the eu, but they are kind of have affiliated memberships and that helps them even, and the hope that they would be a part of it. and you were talking about democracies. it gives a sense of confidence to democratic legislators within their countries that if they moved the process forward in term of value systems that they could be a part of a club that really reflects those kinds of values that then leads to a liberal world order. so it builds up. >> in response to that, i'm going to take us off topic for a minute,

this is "bloomberg markets: asia." ♪ haidi: asia pacific markets edging higher as we start the secondalf. equities flirting with a record in seoul, korea. inhaad: confidence on the up japan, optimism among large manufacturers up for a third straight quarter as exports drive expansion. haidi: china's latest hong kong connect starts today, giving overseas investors access to the $10 trillion debt market. beijing taking aim at washington after the pentagon sent they've or shipment to disputed waters. half an hour away from bond connect. the whole idea is to connect the world through hong kong, sending the northbound traffic to this $10 trillion bond market, corporate and sovereign as well, in china itself. what do we have? the idea is we have this big premium over china debt over u.s. 10 year debt, and hoping this will create demand, pushing yields down as we see that you cap balloon -- gap balloon. of 120 five basis points difference between what you get in terms of yield in the u.s. compared with china. that's right. we are looking for the onshore rate as well as the dim sum bond and f

welcome to asia business report. trump says apple's chief executive is committed to building three plants in the united states. the investment would help the administration follow through on a big campaign promise, revising the country's manufacturing industry. earlier, i spoke to our north american business correspondence about how significant this move would be for us manufacturing. this was in an interview with the wall streetjournal. donald was in an interview with the wall street journal. donald trump was in an interview with the wall streetjournal. donald trump came out and said that tim cook had committed that the tech giant would yield three big, beautiful plants in america. we reached out to apple, they would not comment at this point. we are left wondering how much of this is true. did the conversation take place? one must assume that it did. we am not sure of the nature of the conversation. one thing is clear. ever since the president came to power, he has talked about america first, a policy of bringing m

. -- in asia. chart. -- can weows us is have it on? what we do see is from december , 55% of totalasia revenues. this is down to about 27% now. time, growth is 12% in terms of the revenue coming out of asia. that suggests the whole pie is getting bigger for the bank. paul: i think one of the focuses in earnings today will be the push into the delta that hsbc is undertaking, more flavor on that and more of a sense that this overall strategy of the big asia putsch -- asia push, more detail on how that is going. i don't think that is going to change, we are not going to see a strategic shift today. hsbc is coming up for a leadership change, they will have a new chairman since. aig.ad: formally paul: that is right. this will be all about seeing how they are performing on the existing parameters as opposed to any big surprises in terms of the asia push. haidi: overall, the bank is looking stronger than what we covered a year ago. isit fair to say that this looking for resilience and no nasty surprises t