. -- betty liu in new york.antas ready to lift off as profit tops expectations come also announcing a share buyback worth $300 million. ♪ >> always lots of airlines pu ns. , in theof up and down bond market, this chart 6473, a constant worry for market participants when they look at the high-yield corporate debt markets represented by the white line. we have seen a declined in the high-yield corporate bond etf's. that has some worried whether this decline will spillover into equity markets. that does not seem to be the case when you look at the gap between high-yield debt and 10 year treasuries. range, has stayed within represented by the blue line, and that is reassurance or market watchers, seeing the high-yield behaving like what we are seeing in treasuries, so not likely to be a catalyst if there was more market turmoil. we don't see contagion when it comes to the credit space. the price action after the fed minutes, we got more clarity, but towards the late part of the session, yields picking up on the 10 y

this is bloomberg. ♪ betty: i'm betty liu in new york.a: alibaba says -- yvonne: alibaba says it has agreed to buy out by do and other investors. largest backede by tencent. an army of delivery people across the country. it did nothing to stop the alleged sexual misconduct of steve wynn. the board was aware at least 2016. japan may shakeup the rules and let's in tech companies go head-to-head with traditional lenders. ♪ mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. >> 7:30 a.m. tuesday in hong kong, taking a look at clear skies on tuesday morning. the winter coming back this week , 30 minutes away from asia's first major market open study. >> 6:30 p.m. monday in new york where markets closed considerably higher. nicer for the bulls. the s&p up

i'm betty liu in new york.e watching "daybreak: australia -- you are watching "daybreak: australia." tell us about turnbull's new number two. will be a question that quite a few australians will be asking themselves is running. who is michael mccormick? he is 52 years old and a former journalist. publisher, heas a is relatively unknown to the general public in australia. is the veteran affairs minister. he has jumped from a position of relative of here need to become the deputy prime minister of australia. he was selected as leader of the -- party.already ofdi: the less and in terms how our international viewers might not have been looking at the headlines. fill us in on terms of how our international viewers might not have been looking at the headline. >> one of the local tabloids revealed that burnaby is a father of four and had an affair with his media advisory. she is now expecting his child. this would not go away. it prompted a very interesting debate in australia europe banks. what should be private and

betty: i'm betty liu in new york. you're watching "daybreak asia." st word news with jessica summers. jessica: thanks, betty. jay powell has indicated the possibility of four rate hikes this year. he acknowledged the strengthening economy and inflation. and hinted that may prompt a rethink. investors marked up the probability of a hike in the fourth quarter to about 50%. the chances in the second and third quarters picked up to about 80% and 70% respectively. that's while the chances of a rise next month remain near 100%. >> while many factors shape the economic outlook the some of the head winds the u.s. has faced in recent years have turned into tail winds. fiscal policy has become more stimulative and foreign demand for u.s. exports is on a firmer trajectory. jessica: mean while, the british cabinet has discussed the aranco i.p.o. after the visit of saudi prince salman. they are battling to host the company's second listing. saudi arabia has signaled it will sell about 5% of aramco to raise $100 pl. -- $100 billion. to rance form the kingdom and wa

i am betty liu in new york.concluded and they do the the votes to pass funding for the defense department, enough to fund another year. this is going to keep the government-funded until mid-march, march 23. the final vote, 242 to pass this bill and send it over to the senate during the senate working on their own budget bill. the president threatening a government shutdown if he does not get immigration reform in place. all right. we are watching the events in washington. the international monetary fund has warned that the number one threat to indonesia's economy is the risk of spikes and financial volatility. we have seen a lot of that lately. bloomberg's economics editor, kathleen hays, asked the imf mission chiefs how resilient indonesia is to market turbulence. now is notappening really new. we have had episodes of financial turbulence in the last two years after the u.s. elections, when china changed afterchange rate regime the taper tantrum, and so, this is not something that is new. doneesia has in the pa

from bloomberg's global headquarters, i am betty liu in new york.nping wins a power game in china. party is to change the constitution to let him rule indefinitely. a chairman embarks on a goodwill tour of germany. he is now the biggest shareholder in dime where. -- daimler. we have got some positive tailwinds on this monday morning in asia. friday, yields heading lower, stops bouncing back. we did not see late day selling. #btv 938. i don't know if it is all clear for japanese stocks yet. ,his is a gauge on the topics which measures the selling strength to buying strength. we have been below zero for 17 straight days now, the most bearish we have seen in two years. the last time we hit that negative sentiment, we were stuck in the 200 point range for some nine months. we could still be seeing some downside when it comes to japanese equities, especially if we see more trade tensions from the u.s. betty: i think some of that fear is from rising trade tension, particularly with the u.s., and of course the rising yen not helping sentiments either. -nom

betty: i am betty liu in new york.ia ." >> a senior british official says china is wary of providing trade agreement until they see how brexit plays out. the u.k. hopes to negotiate a new deal with beijing during the two-year implementation period after march of 2019. they launched a review of their $77 billion trading relationship during theresa may's visit last week. ,> we asked members of the e.u. and we won't be able to implement any visit. the launch of the second chapter clearly endorsed by both sides. germany has agreed and outlined coalition giving chancellor merkel a fourth term. describesge report the arrangement as a new awakening for europe. already promised germany will take a leading role in europe. new research claims the u.k. will leave the european union as the slowest growing economy, even if they can says -- even if it keeps the same trading relationship after brexit. it grew to 1.4%. euro area economy will grow faster than anticipated, with growth more balanced than at any time since the financial c

let's toss it to betty liu. betty: take you so much.t's so exciting to be here with the minneapolis fed president, neel kashkari. thanks for joining us here on this big weekend. it was a great weekend. my -- did your team win? neel: i'm a lifelong cleveland browns fan, so i'm crossing my fingers. but for last night i was hoping end, good game and in the the eagles pulled out the victory. i got both. betty: i felt the same way. good game. that was a big event over the weekend, but we also have the big event that shery just mentioned, the swearing in of jay powell, coming in at a time when people were saying -- look, up until now it has been goldilocks. stock markets were rising until the last couple of days. now it seems like the markets might be testing things at this point. do you think that jay powell's job is about to get harder? have all been waiting for inflation to come back up to the 2% target. on friday we saw a hint that -- wages might be rising. that's a good thing for the country and a good thing for workers. we need to see.

hel kashkari tells betty liu doesn't actually see a bubble there.rning from japan. >> in america, people are quick -- bankcize the bank of of japan saying they should have been more aggressive trying to do with inflation. it's also easy. we may be in a low inflationary environment for a long time and we've seen the struggles with japan. it's how powerful low inflation expectations are in a society. a central bank can raise inflation by 10% or 100%. we don't know how to raise inflation expectations 5.5%. that is the trick. japan has learned that. they take an extraordinary measures to boost inflation in their economy but overall they want to still maintain credibility. toh the federal reserve need continue being humble. look at the japan experience. we should not declare victory too early on inflation. we've seen a painful it is if one does that. >> he said were going to keep our foot to the pedal and continue. how does japan get out of this low inflationary environment? >> i wrote about this in an op-ed. population growth. americans are challenging

betty: i am betty liu in new iphone touches a break as sales in the holiday quarter were below estimat

tty: this is "daybreak asia i am betty liu in new york.ed four day rally as investors saw a new trend emerge after the fomc minutes. .oining us is divya devesh you see the dollar depreciate 5% 8% this year. what a call. how do you get to that call and depreciation? we saw a pickup this week and some are saying it is the pent-up demand finally coming through and snap. i think some of the traditional correlations between rates and fx markets have broken down. while we see this inch a little higher, it is not going to be sufficient to support the dollar. i think there may be two reasons why we think so. on ourf all, based fundamental valuation model, the dollar is still about 10% to 15% overvalued. secondly, markets -- i am not only talking about hedge funds -- the broader market positioning including central banks, corporate's, real money fund, is still a long dollars. that will probably change of sometime this year. we have had this u.s. austerity only growth story. but that is not true anymore. we have seen europe pickup. we have seen japa

. -- betty liu in new york. qantas ready to lift off as

i'm betty liu in new york or it is just after 6 p.m. on this tuesday.ost amid new warnings about u.s. show production in the opec led market, rebalancing in washington. getting tough with china. slapping tar

from bloomberg headquarters, i am betty liu in new york and it is just after 6 p.m. on

betty: i am betty liu in new iphone touches a break as sales in the holiday quarter were below estimates although the attempted quite did quite well. ♪ about we've been talking the investors worrying the last few days with yields continuing to march higher in anticipation of higher interest rates, itever the month of january, looked like a pretty good month for the bulls. i want to bring in this chart, as we round out the month. you can see s&p stocks the best performance since march of 2016. president trump will take a look at take credit for this. the market is still doing well. if you look at that chart, investors are optimistic about prospects and we might be hitting an inflection point. markets are rebalancing as well, and what we saw with the bond market overnight was significant of 10 year treasury yield spiking to 2.97%. that is the line in the sand and it is a worry for many equity bulls out there. mentioned,vonne just the 30 year yield breaking through a significant level, that 3% yield. and it seemsh us, like equity investors are paying attention to the bond market. that level