the bank is seeing the aussie dollar falling back to $.75 range. will talk about the decline for the u.s. dollar. this is bloomberg. ♪ ♪ are counting on this monday morning to the sydney open. you can see strong opening expected by the sydney future, up about .5%. getting that strong lead in from the record territory that we closed at on friday here in the u.s. bullied by not only better than expected jpmorgan earnings, but also by that slightly hotter than estimated inflation numbers. i'm betty liu in new york. haidi: i'm haidi lun in sydney. you're watching "bloomberg daybreak: australia." sterling rose to its highest levels after some signs emerged that some countries want a soft brexit. talking about the implications when it comes to the u.s. dollar is the head of fx strategy. it was a sterling story, but really -- regardless, there is so much negativity when it comes to the dollar. >> absolutely. if you were given those numbers two days and advance, don't think anyone would have expected the dollar would be lower rather than weaker. i think th

the aussie dollar ticking up to the 80 sent handle. of gainsstraight weeks for the aussie dollar.ook at what we should be watching as trading gets underway in asia with adam haigh. even after the phenomenal start the year, asian stocks are looking cheap when you compare to trading in the u.s.. adam: they're actually getting cheaper. pe,, the part of the equation is increasing faster. let's jump into the terminal and look at the chart, 5545. it shows you the spread on the pacific index and the price-to-book ratio and price-to-earnings ratio spread. you can see how much that has been coming down to levels relative to the u.s. we have not seen in many years. one interesting observation being made by mark tinker is that a lot of this looks like 1997, but the fundamentals are completely different. comeau --ook weiss . e e-to-book-w he is advocating for bullish positions. ramy: we have to talk about inflation. has been widely flagged as one of the key risks for markets in 2018. i know you have been tracking a top fund is a place to benefit from this. adam: this is really kind of the equ

the aussie dollar at 8104. we have had this seven straight weeks of gains for the aussie dollar.his is the longest rally in 18 months. it is bringing out the bears, saying it will likely trade closer to 77 -- $.70 rather than $.80. perhaps this is as good as it gets. let's get the first word news with remy. >> thank you. good morning. said to haveks are taken a step forward with negotiators agreeing new measures to combat corruption. from talks that were said -- year,ed to conclude last may extend into 2019. it leaves substantial work for future meetings and mexico city at the end of february and washington the following month. leasedi eight won a new of a surprise victory over u.s. tariffs. the u.s. international trade commission ruled against boeing saying come of the american aviation industry has not been harmed by sales. the vote blocks a commerce department decision to impose duties of almost 300% on bombarding a sales in the united states. it has jumped the most in almost two years to its highest in three years. the man said to be saudi arabia's richest businessman has bee

the aussie dollar is up 14. e of his data comes out, you could see a little bit of a reversal in the u.s. dollar position, little bit of moves in the interest rates markets and i think back and see some of these trades come unwound a little bit. it does not change the overall picture. not change that longer-term picture and the debate on whether the fed will raise 2, 3 or four times this year. ramy: looking ahead to 2018, we have to talk about volatility because in 2017, not so much volatility. let's go into the bloomberg one more time. it seems investors are betting on volatility. follow the green arrow. this is looking ahead to the three months of volatility. what are your expectations for this moving ahead, do you agree? saw the average was over 11% for the vix. the next 30 days. i do expect that to pick up. sayoes not take a genius to that was the range last year was so narrow. but has to be a fundamental change to the picture that will the implicit and explicit volatility structures to be unwound and that is

so that weak dollar applies also to the aussie dollar, the swiss franc and the canadian dollar. weak dollar, the pound close to 1.41. what does this mean for markets? in asia, the nikkei has sold off in light of that stronger yen. elsewhere we have a bit of green on the screen. of course it has been a fantastic start to the year for asian markets. hong kong in particular. european trade for you, surprisingly less effected by that strong euro having said that, we are looking lower, but not as low as we could have expected given how strong the eurohas been. in particular germany, which is near record all-time highs and very much an export economy. the ftse 100 down 0.4% >>> jay powell officially confirmed by the senate to run the fed. this will make him the 16th chairman of the federal reserve. powell won't assume his duties until janet yellen's term expires february 3rd >>> to the world economic forum in davos, switzerland. gary cohn outlining the goals of president trump's trip >> america first is not america alone. i said in my remarks when we grow, the world grows. when the wo

the aussie dollar is strengthening as iron ore prices are looking grim. four dollars for a second straight session. it is trading at an august 2016 high, which paved the way for a rally in malaysian stocks, and is malaysia's best-performing currencies so far. it is climbing for an eighth consecutive session amid the election speculation. we will see how the stocks are at the open at 9:00 local time. the kospi is higher for a second straight day. you have one of the bankers leading gains. when it comes to the laggards today, we have ask a chemicals. that is sliding the worst. it needs to be included on the kospi 200 index today. and when it comes to the biggest drag, lg electronics falling over 3% this morning ahead of fourth-quarter reporting. samsung also on the back today. betty: thank you so much. let's talk about oil. oil had its strongest opening week for any year since 2013. refiners and exporters whittled away at crude inventory. joining us now from singapore, will that continue? what does it signal for the rest of the year? we are definitely seeing

that certainly beat the estimate, given it it of a kicker to the aussie dollar.s what you should be watching for the day. anna: the german economy minister's estimate at 9:00 a.m. u.k. time. 3.5 hours later, an account of the december policy meeting. president dudley delivers his keynote speech on the outlook for the rest of the year. let's get the bloomberg business flash with juliette saly. juliette: ferrero nearing a deal to acquire nestlÉ's confectionery business for 2.8 billion dollars, according to a person familiar with the matter. the business inclusive butterfinger and baby ruth rants and is suffering a decline in revenue. selling 1.5 billion euros more of its remaining stake as part of its ongoing plan to focus on drugs and life sciences. the german company has been steadily paring its stake in the former division as it shifts away from industrial chemicals to focus on pharmaceuticals and cross chemicals. it's agreed to buy monsanto, a deal that will test buyers financial firepower. rio tinto has dropped out of the bidding for a stake in one of the worl

in that and that is going to restrain the aussie dollar against the u.s. dollar.looking at the crypto with this topping $19,000 on december 18. it hosts some of the a guest one of the largest digital currency -- >> the world of bitcoin can seem abstract. in mongolia, the crypto currency machines are whirring. maker of chipsa and machines and is one of the largest in the world will step what's this is part of the central nervous system and there are over 25,000 mining machines that are crunching the code and processing the transactions, generating new bitcoins. adding these to the block chain. each is mind and the difficulty increases and requires faster processing power and more energy . it is something that is cheap in mongolia. people can do this at a very low cost. employs 50 people and generates a quarter of a million dollars a day in revenue. here arehe coins traded on the crypto currency exchanges, some of the biggest in the world. they come under the scrutiny of regulators who are anxious about this being used to funnel money abroad. 20,000pany claims custo

i've been looking at the aussie dollar and how it is the most overbought in 10 years.now we've seen a little bit of weakness with that data coming through. and looking at oil, looking at another technical, the relative strength in dekes. above $64 a barrel but it has been above 17 for little while now, looking a little over balked according to this measure. brexit is in everything, that's a message of british prime minister theresa may. the leaders are expected to discuss a raft of lateral issues that have little to do with brexit, including the issue of migrant cap surround the port -- migrant camps around the port of calais. mrs. about four macron? -- what is this about macron? all about brexit, but because of brexit, accra knows he will have some leverage -- macron knows he will have some leverage around theresa may. what he wants to achieve during this visit is a new treaty, a new border treaty with the u.k., in order to solve the migrant situation in calais. a couple of days ago, as you see in these pictures, macron met with some migrants in calais. remember a yea

the dollar fed is below 80 as we from on job data due australia. aussieapping a two day drop. let's look at key movers. we have energy. the biggest drag as it cut its output target. take a look at some of the best performers. medical continuing to gain ground. aussie banks also in focus. they are up 1.5% there. i am looking at headlines right now as you were talking about the markets. you have the nikkei climbing to past 24,000level, for the first time since 1991. don't forget the topex rising past 1900 points for the first time since 1991 as well. and goodies, despite lots of concerns of are we to richer in the markets, certainly not stopping at all. carrying over from the big games we saw here in the u.s.. -- u.s. let's turn to china. china's economy expected to show a pickup. correspondent,na tom mackenzie joins us for more. what are investors likely going to be focus on -- focused on? squarely in focus will be the for your number, six point 8% is the estimate for 2017. is the estimate for 2017. the fourth quarter number is expected to stop from the pr

we do have the aussie dollar percent.p .2 of a .esuming gains let's keeping eye on the same dollar.head of the december export figure. gold is on the rise here. climbing for third session at a september high. we are seeing new york crude below 54 bucks a barrel. slightly higher up .2 of eight percent. taking a closer look at stocks sydney. surging the most since june june 2015. yvonne: now, trade tensions between the u.s. and china, withve surfaced again president trump calling china's leader to tell him the growing deficit is not sustainable. joining us now from beijing is tom mckenzie. .ere it is again u.s.-china trade tensions. china bracing for more trump trade?h on >> well, they are aware that the rhetoric is ramped up again in washington. ebb and flowed in 2017. coming how the administration and white house from officials there, suggesting that they are going to be taking tougher line on the u.s. where president trump has on his decisions to make when it comes to whether or not to impose tariffs on imports from china. of course, they're aware that has failed top reduce the def

australia, the dollar back into the doldrums. the aussielying for a seventh straight week, bringing out the bears, 81 against the dollar. some see it closer to 70 and set of 80 in the coming months if the fed keeps raising rates. 287 for the aussie 10 year yield. japan, lots of focus on that crypto hack with coin check. strengthening 1% as the boj said we have to backtrack, this is not a change in the inflation outlook, we are still holding below 100 94 dollar-yen. 109 four dollar-yen. let's get the first word news. paul: the nafta talks have said forward, butp talks that were supposed to conclude last year are now expected to draw down -- drag on for months and may extend the 2019. none of the issues of the issues at the result, leaving substantial work for future meetings in mexico city in february and washington the following month. a new lease of life with a surprise victory over u.s. tariffs, that international trade commission ruled against boeing. it blocks a commerce department decision to impose duties of -- bo 300% on a barnier mb

the euro, the yen, the aussie dollar -- pretty much every currency rallying against the dollar, whichsitting at three-year lows on these comments by these top u.s. officials about the weakness of the dollar being good for the economy. we are looking at a pretty weak day when it comes to these equities feeling the impact of the yen. south korea gdp also disappointing. let's look at the shy -- the shanghai in the hong kong. you have stocks snapping a seven-day advance, and the index under pressure following 2/10 of a percent. this amid speculation that tiny's state backed funds -- chinese state backed funds in the internet. it is been a roller coaster ride this week for shares in this, but the shared age has extended the rally for a 20th session. hang seng is up for a straight day. -- up 48 straight days. high, witha 27 month no signs from the pboc as the dollar falls to a three-year low. it is coming in below 640 for a second day. the yuan has been rallying hard against the greenback. almost back to levels we've seen since 2015 devaluation. let's check in on sands, china and absence. t

i want to highlight what is going on with of the aussie dollar.ssie 10-year note. extending gains. going back to what is happening with the korean won, the recent gains for the currency are showing the dollar selling against the won maybe overdone, with the index for the pair near a five-year low. citigroup is saying you should ignore that, as the korean won has a strength -- room to strengthen. , which isn the kospi rising for a fourth straight day, most industry groups losing ground. materials and i.t. helping to support gains for the index so far this wednesday. steel miners leading the materials space. pushing theothers sector higher. betty: sophie kamaruddin with an early look at the markets. 2017 proving to be a tough year, especially for hollywood. moviegoing falling to the lowest level in a generation. admissions in north america slumping to 1.2 5 billion, the lowest since 1992. joining us from l.a., our reporter. what is the cause of this? bad movies or people being lazy? what is it? >> it puts perspective what is -- has been going on. we

big moves in the swiss franc sanctions are expected from the united states, and in aussie dollar retreatingrom iron with losses in ore. , a squeeze concern on the supply side driving price gains. and showtch the board you the energy trades with brent crude specifically, still the years aslose in three hedge funds increase their bullish bets to a record high. up. 10 year, we have marched , 2.68% currently. the gold trade mostly unchanged. stand out in emerging market has been dollar-lira. let's check in on first word headlines with debra mao. u.s. trade representative robert lighthizer hopes a deal can be done to save nafta according to the republican chairman of the house ways and means trade subcommittee. the latest round of talks are due to wrap up in montrÉal later. but major issues still remain unresolved. a member of the ecb's governing bank mustid the in qe as soon as possible. it says the program has done what was anticipated and there is not a single reason for continuing with it. last week, mario draghi said there were signs of rising inflation, but patience and persistence are sti

prices are on track to reach 20 aussie dollar's per kilo.ina will spur demand but it is also targeting significant growth in the u.s.. they are now under pressure from government crackdowns. dave, how the mighty have fallen. let's start off with h and a -- hna, what we know so far? bow high securities is one of andcompany's security units they have already pledged most of their entire stake against borrowing. what we learned today is that there was a little bit more to scrape out of that so they pledged yet another piece of that stake. what this tells us is that they are really screwed me the bottom of the barrel to raise money here. ais is a company that has long track record of using stakes in companies it holds specifically, to back are owing. when we have had disclosures about bond yields that they have been having, this is a company that is rolling over debt at very high rates. they really need to raise capital in every way they can. the announcements have been coming on almost on a daily basis. investors are on high alert watching ever

one of the biggest winners against the softer greenback overnight alongside the aussie dollar, which t about $.79. we have the biggest increase on --itions since the office since august, 2015. we have the kiwi trading at 01914. we are also seeing the dollar out, theplaying dollar-yen advancing. the sterling pound is also jump in 1.379 three, a gain of a half a percent, strongest students june, 2016. the u.s. 10 year yield is unchanged. in the friday session, we had u.s. stocks closing and going at record highs. let us get more on the reaction to the east the governor's comment on tapering. adam haigh is here with us. we saw further strength in the year in the equity session. what do these comments do in terms of changing the narrative? guest: in a sense, this was not a change in position for him, but a reiteration of what he believes that may be going into the summer, there may need to be a tweak done in the language used for guidance. we are ready know that the ecb is pulling back from its buying of bonds of this year. the have really rained back -- you have really rained about back.

the aussie dollar liking that data, jumping to a two-month high foreign rba rate hike.k session helping support gains across asian currencies. commodities, we have aluminum extending its rebounds, gold climbing as well as copper. we're back below the four handle. the korean won coming off a four-day drop. weaker.an rupee chinese large caps snapping an nine-day rally. when you take a look at the mood in hong kong, we have a battle between the bears and the bold area the hang seng's record run very much under threat. dragged to the most. the nikkei 225 falling by 0.5%. nearest sixfixed weeks high. let's check on the futures in mumbai. we perhaps could be anticipating weakness at the open in mumbai. space, comes to the bond rupee bonds expected to remain under pressure with indian that sales friday. david: that is the bad part of today's market story. give us something to cheer about. small caps in korea -- last i checked, we were feeling love. are we still? sophie: i could put on my positive cap. we see the kosdaq trading at a high. a persistent spot of green in a sea of

the aussie dollar off. look at the bond space, essentially following what we saw in the u.s.market. you are seeing asian bonds, mostly lower. yields rising across the board with the exception of china, the yield on the air to your note down by 4.3 basis points. theing at what is driving market action today, the story of what we saw on wall street as well as tech players living in the region. -- lifting in the region. seeing very strong movement in mining stocks today as well. that is despite the fact that we have started to see a little bit of a switch out of aluminum dropping on china, and oil out of its two-year high. ♪ emily: this is "bloomberg technology," i am emily chang. the tech industry's relationship with the trump administration got off to a rocky start after many of silicon valley's largest companies protested his immigration policies. one of the loudest voices was microsoft and chief officer brad smith. tom keene and francine lacqua spoke with brad smith on a of surveillance. they started the conversation by asking smith about the role of technology over the next

the aussie dollar come under pressure today. that is due to cross flows coming through.ussie off by .4%. iron orein singapore is down 2.7. let's have a look at some of the snocks the region. there are quite a few corporate stories coming through today. in india, a big opportunity to grow in financial services without relying on acquisitions. this is india's largest conglomerate. a share price up .25%. l.d., we have been watching all session. down .5%. and unchanged. that is as we saw the u.s. slapping these tariffs on importers' washing machines. there hasn't actually been too much reaction in part aside from l.g. electronics. having a look at the sectors, you can see every sector moving higher. defensive healthcare up 1.1%. energy still very much in focus .le%. we are on track. another session of record highs here in asia. yousef: breaking news hitting the bloomberg. u.s. president trump has taken to twitter to describe his first reaction to the break shhthrough that happened overnight. let's read that out to you. big win for republicans as democrats cave on shutdown. n

forbig thing to watch is dollar renminbi, pushing higher as well. the yield for the aussieyear are also pushing high. they are waiting for the opens of japan and korea. we are expecting a uptick in dollar-yen --164 110.60 for the dollar-yen. they are very aggressive about easing in japan until japan sees that 2% inflation target. : the strongest yen in about 10 years has people speculating. it reached its strongest level on monday since december, 2015, against the u.s. dollar. the pboc might intervene. the euros gains against a weakening u.s. dollar, might continue if gains continue to be seen and inflation. ecb's representative said that this is something to be seen. investigators are trying to work thewhy a floor at indonesian stock exchange collapsed. police say that they found no trace of explosives. turmoil has not been affected despite the turmoil, and the indonesian market we started after its usual lunch break, with the benchmark edging higher. have a feudb states brewing again, after a emirates flight to dubai the was stopped by qatar. an xl qatari royal said he wa

. >> we did, from the rix bank the aussie dollar are not exiting ultra loose policy, are they never gotuper loose there. >> well, the point is when they do a turnaround, compared to other economies, no. but their economy has been doing quite well but it's the turnaround from loose policy you know, australia is saying, no, we're not going to hike. we're not going to hike. one day you wake up and they say, we'll hike, like canada last year and you get a 10% depreciation in currency that's why we like that. those central banks will turn the corner, when they do, those currencies will rock >> what's your view on sterling? you were one of the names that expected it to fall significantly last year. which it did the opposite of where do you stand now >> thanks for reminding viewers of one of my failures. that's very kind of you. appreciate coming on the show. i had to tell viewers i got euro right, i suppose i was too bearish on sterling last year. the bank of england raised rates. i haven't given up, i'm afraid to say i'm beaten but not completely giving it up i'm worried cyclically, one of t

haidi: what happens to the aussie dollar?he rbaple stuck between a rock and a hard place. >> interest rate differentials matter. now the differential is close to zero in the short rate. aussie dollar has done well because commodity prices went up. probably $.75. $.81, the low is 70's sense, but there is nothing exciting one way or the other. haidi: thank you so much. happy new year. thank you for joining us. you can catch all our interviews on our interactive function tv . live or dive us into securities or functions we talk about. you can join in on the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ ck it out at tv . this is bloomberg. ♪ rishaad: this is "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. bloomberg has been told that china's hma group has approached another company about the possible sale of buildings. sources said units of age in a missed payments due to chi

the aussie dollar, the norwegian krone, the swedish krona, yes there is a relationship. for the dollar and for the single currency. let's talk about let's happening elsewhere. we could be about to head for the first negative week for iron ore in quite some time. it looks like chinese mills have completed their inventory rebuild. it signals a bunch of things. it could be an interesting session for the miners here in europe. let's get back to davos. he you is ready to sign off on his position for a brexit transition. . on monday to expected to lay down a december 2020 expiration date. but those familiar with the discussions in brussels are apparently open to extending the deadline. let's get back to davos. >> the eu commissioner five financial and economic affairs. good to have you with us. we heard that perhaps brexit is not as bad as expected. david cameron was against brexit so he knows how bad it is. it was a lose lose situation. we would be much better with the u.k. in the eu. now we need to manage. we need to make it as smooth as possible. reduce the losses. that's wh

the aussie dollar continues to power ahead. we are up another 0.4%.hat rally is absolutely fascinating and the relationship with what is going on. the bloomberg dollar index is trading down this morning, 0.2%. the euro is pushing up and you are wondering whether we start to think about its effect into the equity market. there was a nice word on "first word," talking about the effect the big european companies have. we could see the effects of the stronger euro, which over the last three or four sessions has gone north. ghere is a lot of prancin taking place in the states. take a look at this chart your screen. you'll notice a sharp downturn. a lot of weeping. the commodity story is going softer as oil goes higher, balancing each other out. iron ore is trading down by 0.4%. here's juliette saly. carillion has said it will take steps to end the compulsory liquidation. concludedy's board there was no choice but to take steps with immediate effect. talkscision came after with stakeholders, including the u.k. government, failed. ofald trump is an asteroid

the aussie dollar is up for three days in a row. nice numbers coming out, commodities rallying.s is what you should be watching for your day ahead. speak inresident will philadelphia. anna: an hour later, we get u.s. job data and will watch the nonfarm payroll number. juliette saly is in singapore. how are you doing? juliette: very well. the world's biggest chipmakers are coming to grips with the weakness that leaves vast numbers of devices separable to hacking. google researchers discovered a feature present in almost all the billions of processors that run computers and phones that could give hackers access to sensitive data and his remedy could drag on device performance. intel shares fell on the news. tesla has pushed back of production target for its model three after shifting -- shipping fewer accidents and expected. they expect to make 5000 model three so week by the end of june , delaying plans to reach the milestone by another three months. elon musk company did not come close to achieving a earlier for christ -- forecast for the industry 17. tradingplans to begin on th

the aussie dollar is trading lower, down by around .5%.ommodities are generally lower, the commodities index is lower. let's move you want to the commodities blocked to show you there. iron ore trading down, the singapore contract down by 3.4%. crude is bid, then -- brent is bid, but iron ore trading lower. that is feeding into the aussie market. that will be interesting to see how that impacts the european open. talking of trade that is dominating that boss. let's look -- davos. francine lacqua, what have you got? francine: thank you. we have a packed show. we will have a panel on the future of banks led by tom keene, speaking to mr. corvettes and i will be doing a little later on this week, talking on a panel on easy money, monetary policy. we have seven heads of state addressing the congregation over the next couple of days, including president, due to talk on friday. friday, we have the portuguese economy minister and carlos from the mitsubishi alliance and i have to say, i am looking snrward to speaking to mr. gho about protectionism.

aussie dollar trading down, yen trading down. thisu reasonable mix, and the yen is usually an indicator as to what's going on. it about doesn't seem to be in e equity markets this morning. let's talk about asia, mixed session, thailand up, bangladesh is down. i'm not sure it will have a meaningful impact into monday morning for europe. let's talk about the numbers, ftse 100 trading at the moment, looks like it will be a fairly flat open, down at less than .1%. continuing this very strong run as we have seen. anna: thank you. emmanuel macron is in china for a state visit that will test his ability to simultaneously win over his host, xi jingping, while threatening to make life harder for him. a very controversial trade decision on his first trip to asia since winning office. the french leader is seeking orders for airbus while calling for greater market access in china. bloomberg's caroline connan joins us now from paris. caroline, good morning. emmanuel macron will see a few headlines about him calling for establishing a trusted

in terms of where the commodity story is feeding into the equity market story, look at the aussie dollarading down .3%. china is off a little bit, but the bid is up .2%. let's get a bloomberg first word update. here's juliette saly. juliette: in the u.s., steve bannon has issued a lengthy apology to donald trump and his family over comments in a book. the former white house chief strategy said donald trump junior is both a patriot and a good man after fire and fury at your read comments to been in over his 2016 meeting with russian nationals to get damaging information on hillary clinton, saying the gathering had been treasonous and unpatriotic. in the u.k. after a year marked election, thesnap departure of several high-profile ministers and an unfortunate conference speech, theresa may is looking to enter 2018 on a stronger footing. she ended months of speculation and confirmed a cabinet reshuffle is imminent. price that the after green departure before christmas changes will be made and i will be making changes. juliette: the u.s. federal reserve won't need to pick up the pace if the r

it's a very much risk on at the moment. .3%,ese yen fading, down the aussie dollar also down .2%.rading up. -- back into the start, copper trading down .2%. oil is reasonably flat. we have data yesterday, payroll is coming up later on. interesting to break them down. just a quick look at what is happening in terms of fair value, ftse is trading at a slight decline at the get-go of trade later on. back to you. anna: guy, thank you very much. angela merkel's plans to extend her alliance with the social democrats is facing public skepticism is the chancellor begins talks with the rival party. back theggests 45% grand coalition, 53% favor her serving another term. for more, matt miller joins us from berlin. good morning. what does the latest tolling mean for merkel because there seems to be preference for her serving another term but not necessarily in the combination being discussed at the moment. consider that to the broader poll covered everyone who may have voted for the extreme right, the afd party or the extreme left. ,f you take out those people for example, say 20%, and also s

the aussie dollar, that is back. recovering from yesterday's blitz. week of gains. struggle to maintain that momentum after being burned at the 80 handle. yvonne: thank you so much. watching the australia share markets. the clock is ticking on capitol hill. closely,tching this preventing the government shutdown. the house is going to vote on a short-term spending measure. let's get more with derek wall bank. -- derek in washington. >> as of about 10 minutes ago, they got remarkably better for house republicans. the freedom caucus came out and you firststatement saw on bloomberg, they were going to back the bill. it looks like they may have the votes. this is going to be the third in the voting series. you can expect the vote coming up in the next 15 or 20 minutes. house.s better senate, republicans are short of what they need. they are going to need 60 votes at some point. they have 51 and do not even have a majority of among themselves. in terms of where we are, we are no closer than we were. it certainly does not move the ball forward. even if it do

the g 10 here, this is one model, and other models, you can see very much undervalued, and the aussie dollarys up there. we also have a lot of speakers coming out of davos. let's see what he says, but inflation nowhere near -- not even half. with are we expecting to hear in japan? gains if nothing changes in the next 30 minutes or so. of course, australia is closed, india is also shut today, we're looking at a few markets. a record high -- you see the pullback of shares, the first day in 20 days, so we are inking at a mild pullback the first 30 minutes of trade. of course, you have been talking hitachi, and that is on the back of caterpillar sales. disappointing results i should say, about an hour into the afternoon session yesterday, so still worth watching in the two markets open up. >> david, think you so much. it's get to first world news now with courtney collins. house officials say president trump is prepared to sign an immigration law and would give a pathway to citizenship for as many as 1.8 million immigrants to the united states as children. well to the united states with offered

potential for ataliation, and also would be negative potentially for some currencies like the aussie dollar on everything you just mentioned that this winning trade of settling down bull, going long on equities, would it be safe to assume that is a safe trade for the next three months? it's always difficult being a contrarian, but are really do think we are getting to the stage of this rally in equities both in terms of its duration and in terms of valuations where, you know, the bias, i think, should be towards just going to bit more defensive, looking for opportunities in things that look particularly overblown in terms of exposure to cash. that is probably the most difficult thing to do as an investor, but generally speaking, i think the overall outlook for economic and proper growth is benign. valuations are getting to the stage with a market is particularly vulnerable to the unknown, like trade problems we just talked about, and the time to take a little bit of defensive action is before those problems emerge. that hasmething emerged as a sort of sub fame, and the reason i ask is becau

the aussie dollar sliding.ok to chinese trade data today, some impetus when it comes to sentiment here today. betty: thank you so much, sophie kamaruddin. at theanother gaze chinese economy. our china correspondent tom mackenzie joining us from beijing for more on this. tom, what are we expecting out of these trade numbers? we are expecting china to round out the year, relatively robust footing when it comes to exports and imports. exports will have slowed marginally. these are the year on year numbers. the forecast expected to increase 10.8% from 12.3%. if you put november to 15, that will still be the strongest pickup they have seen since june of last year. the imports will soft and as well. -- the imports will soften as well. that would be the weakest increase in imports from china since august of last year. overall, a relatively sordid picture, even if there is softening around the edges. around $37 billion. down marginally from the previous month when it came in a $40 billion. this is something of a sticki

oni want to get your view the aussie dollar. this is the kind of turnaround we have seen. been one of the biggest benefactors of this sort. do you see that really being supported by the commodity stories as well as a patient -- chinese will remain stable? the game is on to pick the next currency and we are trying to take advantage of the dollar weakness. as you say, given the environment and strong commodity , the aussie is a move higher and we believe the aussie will play catch-up, moving above $.80. >> what about the yen? is that going to stop becoming a headache? tom --yen over the shirt short-term has been resolved. between now and april, there will be lots of speculation and uncertainty in respect to risktment, so we have a for possible yen strength. technical target is very possible over the short-term. having said that, once you move into the second half of the are, with not forget that the feds have hike once or twice, so that may save the dollar yen in the second half of the year. upside risk for the dollar? >> it has in the same since the market has swung. not as

aussie dollar gaining ground, 0.2% higher. rter bottomon data due at the of the hour. elsewhere, the ringgit under pressure. the kiwi dollar gaining ground so far today. let's take a look at the movers we are watching in tokyo. fuji still in focus this morning. this amid reports they could be nearing a deal that could come as soon as tomorrow, when it comes to the announcement. it lets check in on stocks we're watching. to report earnings today, nintendo and others in tokyo. in seoul, we are waiting on others.biologic and samsung under pressure, down 0.33%. tuesday, whendrop it fell. you.e: thank it let's look closer at samsung earnings sophie just mentioned. the record earnings on robust demand. let's get more analysis from bloomberg intelligence's senior editor here in hong kong. initial opinions when you look at these numbers? it seems the super cycle in chips could be over, maybe premature? i think a selloff may be a concern about the currency boost. [indiscernible] in terms of memory chip demand, the company remaining opti

the aussie dollar under pressure but holding onto that handle after a five-week rally. st jump in oz elong's sense 2015. since 2015.ngs we do have the dollar trading near september lows after a fifth straight week of losses, so that could be something for asian traders to latch onto. >> thank you so much. let's get to first word news now. >> thank you. softbank says listing its mobile phone unit may be an option, but a decision has not been made come at that following a report saying the group may list softbank corp. in tokyo and overseas this year. the iranian tanker that burned for a week after a collision off shanghai has exploded and sunk. it went down sunday afternoon leaving a 10 kilometer oil spill. all crewmembers are presumed dead. it was caring almost one million barrels of condensate. offssenger jet that skidded a runway in turkey came to rest with its nose a few meters from the sea. some of the passengers say it was a miracle the plane was evacuated safely. pegasus says there was no injuries among the 168 people aboard the flight. prosecutors are investigatin

i think the aussie dollar and aussie yields may be about as good as they get for quite some time. be looking at as we get those nonfarm payrolls? ,> the key for nonfarm payrolls it still comes down to wages. even if we got a surprise further drop in the unemployment just confirmed the fed will raise, but raise gradually. same with the actual payrolls numbers. thate in such a good spot a big surprise to the downside would not worry people. be looking for if wages started to pick up, and that could bring out the good news is bad news for stocks, which we have not seen for a few years. i think that is something i would be watching. ouri: garfield reynolds, mliv person in sydney. take a look at the commodities narrative, record-setting gains thanks to a jump in crude oil, booming manufacturing sector globally, and helped by a weaker dollar as well. our bloomberg commodities reporter has been tracking this out of melbourne for us. given that we had a 5-6 bear cycle for commodities, does this mean for that to run for the bull cycle? >> absolutely. there seem to be further gains and

the aussie dollar beating estimates. the hong kong dollar is softer for a six session.track as gullible global rates spike compared to the u.s.. there was a pop in the yen following the boj is action. haidi: thank you so much. lots of action and fx land today. also crypto, let's check in on bitcoin. this is what is currently trading out after resuming its slump in the new year. a terrible end to the year after what had been a phenomenal rally up. 10% decline over the past two days for bitcoin. about coming amid a broader selloff in the crypto space, regulators stepping up. also the move by china to limit activity by crypto miners in terms of how they use it. let's get to our macro strategist. mark, is it an extension of the cryptok that bitcoin or bears have warned us about? mark: absolutely. beforerote about christmas, there was an expectation of a pullback in january, there has been a pullback every january for the last three years. it seems to perceive the chinese new year, when the chinese market dominated bitcoin, and they cashed out ahead of new year. we have seen

mcgrath group flagged a loss of 50,000 aussie dollar's and announced the ceo and chairman will leave.its foreign debt. it is selling assets. back in july, the group sold most of its the mastic themepark and hotel assets for more than $9 billion, it cut its debt by a list of $7 billion and reason about $10 billion in cash. saw reliance industries inome rise more than 5% the third quarter. results too strong face growing competition. --ir first quarterly parfitt profits -- david: i want to know the dollar is down, we're looking at gains across the small caps index in -- shenzhenhange in market up. were going for seven straight weekly gain. .et's get more on where we are we have our head of asian equity strategy. thank you so much for coming on this morning. i look at some of these charts and frankly i get nervous when i see something like this. using we are just getting started. -- you think we are just getting started. >> we are in the 90 or of the global upswing. of ave seen several years track record of superior stock market returns, but in asia, we just started to see an outperforma

the aussie dollar had another good day yesterday has been weak, and that is probably good news for stockseurope overnight and has long been the case in australia in particular, but also korea and taiwan, too much currency appreciation too fast can hurt exporters, and exporters are what asia is all about. haidi: this is a theme for the rest of the year given how unloved the greenback is. >> a bit of a race to the bottom against the greenback, isn't it? the only currency in recent toes that has been willing give love to the greenback is the yen, and even it is doing well now. to some extent that helps things because there is no currency that can stand out as long as everything is falling against the greenback. .he biggest risk is the won it had a spectacular year and is getting towards 1000, which it has not hit for many years. outid have korean officials overnight saying they are becoming more vigilant about the currency, and that help to put a cap on the recent rally. come the nexteld thing we will have to deal with is to avoid a shutdown, and looking to what we have coming up, payrolls d

thousands of its songs without the rights the company wants one point six billion dollars in damages among the aussies concerned a probably quite a few names you may have heard of. tom petty is one of the most well known names in the dispute neil young and missy elliott are also there the music publisher wixon music says spotify only secured copyrights to pay music labels for each track and ignored royalties to songwriters and music publishers like weeks and weeks and says spotify owes it for more than ten thousand songs it wants one hundred fifty thousand dollars a pop spotify has over sixty million subscribers in dozens of countries and billions in annual revenue the company is expected to go public this year the firm has faced persistent problems with royalties it settled with a group of songwriters for forty three million dollars last year other cases are ongoing. all signs of the music industry isn't ready to back down. britain's prince harry is to marry meg and mark on the nineteenth of may it wins a costal an experts say that's going to add at least off a billion pounds to the u.k. sluggish eco

dollar, yen dynamics. we are back to levels that we last saw in september. let's head back to australia, thewe are seeing a flat -- aussief course is seeing a tremendous dollar weakness here. yields in the aussie tenure is higher with treasuries overnight as well. in new zealand, we got the inflation numbers but also missed expectations for the fourth quarter. up about a fifth of 1%. a look at first world news with courtney collins. >> a panel of brazilian judges has voted to uphold corruption against ignacio silva. but kills his chances in october for the presidential election in which opinion polls had him winning the field by a large margin. the stock exchange] the record high on the news and it was up by 3%. in dia has new capital in state-run banks to help without hurting a recovery in credit growth. most of the money will go to ibb i bank it more than double that of the or viral -- of the overall sector. is at a 25n growth year low in 2017. the world's second work the richest person is warning that president trump's campaign could influence its relationship around the world. bill gates said that in the balance of h

dollar is indeed the goal. even with steve mnuchin walking back his comments in davos -- the u.s. winning against japan -- others, that is helping we have the aussie, bucking the trend. fromte the dollar sliding that hawkish rhetoric. lenovo earnings coming through in the fourth quarter, and the top line, that was a over $2 billion, and the bottom line was a miss your. 280 $8 million -- there were expecting a profit of a hundred 24 .5 million, so we are sunni to losses for lenovo, but it is down to the pc growth which is driven by europe, latin america, and china are you there is weakness when it comes to the u.s. as well, so we will continue to watch those lines from the local -- lenovo. helped by cloud businesses, the tax charge caused the company to report a net loss. have go to seattle, and we been listening to the company conference call. what are the highlights here? you mentioned the very large tax charge which is related to the new u.s. tax law that --uires the company to take to pay taxes on overseas income. billions and short-term investments part overseas, and we were expecting that. the question we haven't got an answer to is that if t

rather than euro-dollar, the columns as you could see even bigger in euro-yen. guy: why doesn't the market like the aussieally? think the market is being cynical about -- has been cynical about the aussie rally for a long time and got on the wrong side of this. bes -- there continues to ongoing concerns about the housing market there and there is a general view that the ,verall economy in australia there are concerns the banks might be vulnerable if the property does pop or collapse. people have generally been cynical aussie. behind all that, and this feeds through from the economy, is the fact that the yield premium for australia has tended to be eradicated against the dollar -- erratic against the dollar in the months. you no longer see the yield -- the and that seems market has tended to be short aussie and are getting caught offside. now they are seeing metals rally so strongly. there could be more pain ahead for aussie bears. matt: we just got a red headline out of china. china said to suspend countercyclical factor in yuan fix. what do you think about the importance of this? yuan fix is- something i

dollar strength. the kiwi sliding and aussie .alling .1% equity markets looking subdued while bonds are mostly fallingxed 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

warm welcome you are watching aussie international broadcasting to you live from moscow i make aaron. the u.s. embassy in iraq has announced one hundred fifty million dollars is to be spent rebuilding cities.

as the dollar loses ground, the kiwi up above the 72 handle. aussieg a second day, led lower by health care and i.t. sectors. tokyo, wes roundup in await a flurry of reports. fast retailing numbers are due this afternoon. thank you so much, sophie kamaruddin with an early look at the markets. selloff inng for a units treasury that pushed the yield up from a 10 month high. and we have the benchmark within striking distance of the highest yield level since 2014. china making good on this threat. in fact, sell more? kathleen hays here with more. rhetoric and then there is action. kathleen: good way of putting it. so far it is all talk, no action. if you are a bond trader, you will not wait to see if this very important story broken by bloomberg news overnight, where chinese officials say they are recommending slowing or halting the purchases of u.s. treasuries. we did have quite a selloff. remember, china is the number one holder of u.s. treasuries, .198he world, with $1 trillion. we have been looking at this one a few times today. you can see where you

dollar's general weakness. taking on equity trading in sydney, we do have aussie stocks gaining 0.5%, lead higher by, telcos and ground when it comes isthe best performers, it miningin the metals space. energy is the worst-performing stock. and energy producer. more on the data docket ahead this friday, taking on the is trading atgit, the four handle trading in august. is due out later today. they remain in double-digit territory. pricesand set higher crude as well as tightening from the government of malaysia is generating this. it will hopefully boost the ringgit. cost could see the benchmark join global -- after thursday'ss stellar start to the year. in this risk on mode, we are singled under pressure although easing the losses from earlier this morning. gold traders and analysts from bloomberg have traded neutral on gold prices. in the metals spaces, will get to that slightly -- in a little bit because we're seeing the loss of the dollar down 0.8%. checking back on palladium, it is coming to a 17-year high as supplies are tightening. other commodities have far to go when it comes to breaking records. 0.33%