enda curran joins us. if there were some relaxing, how might this play out? enda: good morning.rency is giving them breathing room. and easing capital flows is a bit more to weigh -- two-way. it is early stages. there might be some tweaking or softening of inflation -- investor flows. capital controls settings are neutral, indicating perhaps they won't be clamping down with new measures. it is a wind of opportunity for them to ease pressure. i do not expect them to ease capital controls overall. rebuilding ande they will not want to reverse that anytime soon. yvonne: i guess 2015 is still in the back of our mind. do you think that is a still in the back of regulators when it ands to how easily gradually they will be list -- they will be lifting capital control? enda: it has to be. trillion worth of reserves at a record pace. they're looking for opportunities to soften control of moneymore two-way and flexibility in the exchange rate. there is a feeling that yuan can become strong and is somewhat eroding china's strength. as you say, that does not equate to [indiscernible] yvonne

enda: it certainly raises a question of hazzard.the same time, there is a feeling that throughout the near-term pain, authorities are clamping down on companies that borrowed in a big way. they want to slow the pace of credit growth, which will mean near-term economic pain and disruption. longer-term, this is about putting the economy in a more sustainable, durable footing, and moving away from the debt funded growth. it raises questions of moral hazard, but the bigger picture, it is part of a shift. alix: thank you so much for staying with us. and the current, bloomberg's chief -- and the current. -- enda curran. inflation challenges faced by japan and europe. ♪ : will thatx continue? european stocks on the upside despite the fact that core inflation did not go anywhere. the final read at 1%. the brexit drama continues to roll out. deal without hearing the specifics, plan or no plan. look at what is happening with sterling. it is a broader story with the exception of what is happening with the cable rate, almost hitting 140. in the

enda: yes -- mr. ding shuang: yes.result of last year about 8% growth. mainly because of broad-based global recovery. but imports on the other hand, can decelerate quite significantly, because of lower import price inflation, as well as the slower growth of deleveraging. betty: where do you stand on inflation? do think there will be a surprise to the upside on inflation in china? mr. ding shuang: we look at the january number. dropnflation could significantly from the december level. mainly because of the pace. last year, the chinese new year fell in january. but that base effect could be reversed in february. there could be a strong pickup. but is more important to look beyond the short-term volatility. we expect annual inflation to rise this year. and it may surprise the market. forecast 2.7% cpi inflation averaged this year, up from 1.6%. the main drivers are normalization of food price, the pass through from the producer price, and service inflation. you mentioned earlier about the chinese currency and where you se

enda: people do point to certain episodes.s efforts to clean up its own environment. yvonne: they are also talking about forest fires in canada that control prices, as well. enda: that is right. it shows you china's importance. while it is an example of inflation expectations [indiscernible] we do occasionally get spikes. yvonne: is it still a stretched but this as toilet paper, eggs, and link it to a policy shift? enda: for now, no one is calling a major policy shift. its space to the idea people are nervous watching for episodes like this. they are certainly watching emerging markets. fooddes like this, be it or something else, it sets off inflation. david: it really is. if there is any single risk out there, it is inflation. that is the thing that is going to, pardon the pun, flush it. [laughter] yvonne: that was pretty good. david: the story is also on the website, fantastic, the delicate stuff and what it says about broader monetary policy. yvonne: [laughter] group,watching noble they will open in half an hour's time. the

always thinking about a lot, enda curran. thanks, again.e for analysis with wisdomtree's japan jesper koll. great to have you back on the show because there is so much swirling around the bank of japan. let's start with the gdp figures. is this a one-time because imports were up? is it really a lower level of growth of that will be permanently here? what do you see? lookr: no, i think that, -- the good news is, domestic demand is driving growth at -- as you point out. the pool of imports is stronger than expected. that reduces the net exports contribution. the key point is that domestic demand, virtuous cycle, consumption, business cycle, that has started. and i don't think it will be derailed quickly. kathleen: what could derail it? enda curran was dealing -- focusing on the stronger yen. he thinks it is not a problem at 110, 105, 100. he thinks the yen would have to get a lot stronger before it would hurt japanese exporters. what do you think? jesper: i would very much agree with of that. the good news is, volumes of japan's exports are b

enda curran, we appreciate it.ward to your briefing on this news from the political moment of china. coming up, we have a wonderful show for you today. fox,f with jon ferro, pimm including a briefing across asset classes. please stay with us. from new york this monday, this is bloomberg. ♪ francine: this is "bloomberg surveillance." i'm francine lacqua in london. tom keene is in new york. let's head over to germany. deutsche bank has announced its intention to sell shares in its asset management unit. the initial public offering will take place in the earliest available window. the move kicks off what is usually a four-week run-up to the ipo. it will only sell existing shares and doesn't plan to issue new ones. joining us is steven arons. he joins us from frankfurt. thank you for joining us again. when you look at the deutsche bank turnaround, how dependent is it on the ipo of this asset management unit, which you could say is the crown jewel for deutsche bank? steven: it is. interestingly enough, the turnaround is

also, rosalind and i were talking about eight twitter comments enda kenny from a viewer.aybe theresa may should take on the rambling border... —— a twitter comment came in from a viewer. lots of roads keep crossing over, was the points. and there are farmers would land on both sides and there are people that work on one side and on the other across over every single day. jeremy, thank you for your tweet. let's look at the times. embattled universities face limits on powers. they're really under the spotlight at the moment. and with good reason. all these vice chancellors arnie crazy 6—figure salaries. there is reason to think that we should look at many of these issues. however, iwould that we should look at many of these issues. however, i would add this looks like government meddling in a way that seems really quite questionable to me. essentially, the new office for will tackle not only management issues such as salaries, which has risen to... also academic matters including interest of degrees and the number of contact hours. that does seem sort of micromanaging of un

against another offensive this time from turkey's military and its allies turkey's president wretch of enda one says he wants to free the area of kurdish terrorists that's the official line these officers here find out both maddening and amusing. on the gun how can you free a land from its own people he wants to free it from the people who freed it from my ass while thousands of fighters died in order to defend the slant of. the. town. to do fight though with any with any. yet in some villages in northern syria people are fearful again like intel. one sixty five christian orthodox families live here now there are only seven of the. women. most fled because of ah yes it's especially in christian inhabited communities where the terrorist group left destruction in their wake expelled or killed the population and blew up churches. has said when i saw that i was in shock and just cried. in this house i assume militants showed their wrath and left their names on the walls the family here was able to flee in time now that this village is freed the inhabitants have to worry again along with ed the

enda: it has to be very significant. it is a higher office. are a series of meetings in china this week. next week, he is already the topic. offers some kind of concessions, opening up certain markets. already promised opening up financial services to deliver and all of ranch. they have some exciting to be because the backdrop of the changes in the chinese leadership, which is raising questions on the global stage about china's adherence to its own internal rules and what that means for the kind of role it wants to play on the global stage. while he might try to talk up a bit story, there would be a case of explaining, too. line as will be a fine he heads to washington. given the trade tensions we are seeing escalating this year, is china going to retaliate? they certainly have the tools to do so, but they have not signaled that just yet. enda: relations have already deteriorated further. ammunition to strike back. they could, of course, target target chinese orders for u.s.-made goods. boeing is the classic example. the biggest importer of so

enda: it is another step in these measures the u.s. is taking against china.g on the aluminum reports from china. we are not in a trade war, but there are creeping tensions. economist are worried about this. that is what we heard from those going to washington this week. francine: we need to put this in the context that this is the week that president xi extended his tenure beyond 2023. what does that mean for china, and the rest of the world? enda: certainly, it is over the consolidation of xi's power, doubling down on the narrative with what he wants to do in the economy. there might be a little bit of plea six line from the u.s. delegation, saying, you have shown a willingness to tear up your own internal rules, but what does that say about the global stage? a cloud is cast over china, i think. there's a bit more pressure on china when it comes to these traded talks because it is not just the u.s. other countries are complaining, too. tom: this is incredibly important. singh joined us yesterday and of course, his classic one volume on hong kong at the unive

enda: we have. david: many times.eauty pageant question is wise it important for economic growth? enda: third is the feeling that if you have more company investment it will lead to better productivity among workers. remember sluggish productivity -- then around the albatross around the global economy's net for some time. and that should lead to higher wages and higher wages, better everything -- consumption and healthy levels of inflation and the like. yeah, and of course, there's the cash. much, live you so for us in hong kong studios. possibly new tariffs on steel and steel imports into america. people talk about china, right? but when you look at the data, and here is some great stuff from our guys of bloomberg intelligence, china does not in terms in the top 10 of where the steel imports in the u.s. come from. it is number 11 if you are curious. the top 10, 70 7%. i would say if you are a marketer or your strategic industry press -- professor -- in any case, you're looking at rebounding steel prices. chinese main

bringing 0xfam into disrepute, enda kenny wait abusing people who may have been beneficiaries... a discussion of how the organisation should respond, but we didn't act on it, and more significantly, because there were not formal complaints, we allowed him to move on to another post, and that was our failing. 0xfam's bosses were called in to meet ministers this morning with questions over the £32 million the charity receives from the government. ministers here at the department for international development no british charities do good work overseas, but with 0xfam half the story of what happened with its staff in haiti it has now put pressure on the entire charity sector. 0xfam says it investigated 87 allegations of sexual abuse or exploitation last year, and save the children looked into 31 cases of misconduct. christian aide said it had two cases, one of which was reported to the charity commission. i don't think anyone can see in good faith operating in an environment like ours, that we can eliminate all risk as a matter of 100% certainty. what we can do is put on 100% best ef

enda: is that is your feeling, that the currency could weaken further? mr.hat is right. february data will be much weaker. that is the renminbi sentiment. yvonne: is it because of what we see in the u.s. and europe? it seems the trump administration is trying to talk down a weaker dollar. -- are we in a bit of a currency war? notshen jianguang: we have yet reached a currency war. but a strong renminbi [indiscernible] thee is a reason kind of weak export data. yvonne: thank you, shen jianguang, joining us from mizuho securities. take a look at the interactive function, tv . dive into any securities or bloomberg functions we talk about. become part of the conversation. you can send us instant messages during our shows. this is bloomberg. ♪ ♪ ."onne: this is "daybreak asia i am yvonne man from hong kong. kathleen: i am kathleen hays from new york. its outputs, ci ting rising incentives to find buyers in the u.s. billion, below.2 estimates. higher debtthere is income after the recent u.s. tax cuts. after: mayer has plunged a slump in the key sales period. th

mikio: japan is kind of the case -- enda: japan is kind of the case for everyone. a recurring theme when you listen to governor kuroda and other policymakers. they talk about how they need a handle on their aging population. it is not just japan. south korea as well. the central bank is constantly thinking of the need for a higher birth rate. the risks that are posed, heavily indebted to society by an aging population. you move around and see similar issues in taiwan and malaysia and singapore also, who complain about this. the offset in asia are the young populations of india, bangladesh, and the philippines. you have a burgeoning yield consumer growth story, not quite the same fears that some of these other material economies like japan or korea have. haidi: and what does the venture relative look like? like?ntuality look i was surprised to see thailand in the first economy that would become one out of its cohort as well. enda: it is fascinating. when my colleague was looking at saidissue, latin america not to do it. through reforms. got to push through majors to

enda: this is a big question.people who are saying china should be much faster on reforms, both in opening up the economy as well as opening up its financial markets in the wider economy. xi jinping's government preaches the reform narrative. they say they are committed to it. the boardin davos, would be surprised. the bigger picture view is that china has a lot more work to do and it is in their own interest to do it. yvonne: they are heading to the u.s. as well. we will see how that is received. our chief asia equities correspondent. jack ma shows an increasing appetite to improve alibaba's last delivery network. the company is said to have agreed to buy out baidu and other investors in a food delivery startup. let's get to stephen engle, joining us for more now. we have talked about how competitive the food delivery business is. why is alibaba adding more to this now? >> it is about that last mile. are you hungry, right? it runs a large network across -- scooter food delivery services, and they are buying this

in which case, and as bertie ahern has said and enda kenny used to say, that we do not need a hard borders a paper published by the european parliament and drafted by the secretary general of the world customs organisation saying you do not need a hard border. you can use technology and risk based policing. are you ruling out completely any kind of technological solution to the issue that the british want to divert from the single market and customs union regulations, and that means some kind of checks at the border? what we're going on is the agreement in december made by both the european negotiating side and british government. we're staying true to that agreement that will be no return to a border on the island of ireland. people talk about electronic options but we have seen no detail. brexit happens in 13 months. reassuring speeches and soothing noises are no use at this stage, unless we see substantive detail, which we have not seen. there is no real solution. by maintaining there is no border on the island of ireland. effectively, you are saying the uk must have a border, an inter

thanks to end a karen and -- enda curran and mark cudmore. jessica summers.the unexpected release raises questions about the korean government possibility to reform big business. lee was the most high-profile corporate figure that was caught in an investigation that brought them park geun-hye. father and other executives have been tried for corruption only to receive suspended sentences. eliot management calling on bhp to review it will structure with a view to creating a unified company. it has seen the $22 billion rise in value for the minor. one company was headquartered in australia. it operates as two entities. new study shows pension funds in australia have grown at the fastest pace in the world over the past 20 years. it extended 12.1 percent on average, outpacing the u.s., the u.k., and japan, according to research. savingory retirement rolls and a preference for riskier assets are among the key drivers of the growth. , the fedpolis president says acceleration in u.s. wage growth is not support faster rate hikes. he reckons friday's job report indicat

enda: absolutely. in terms of the u.s. story, it seems to be all positive. accelerate growth in the near term. when the imf upgrades their global growth forecast, this almost of it on the back of stronger u.s. growth. the risk is the fed goes faster than anticipated. that would have fx not on the u.s. on markets, but globally, as well. they are tightening in sync with the fed, far from a uniform picture. in asia, if we watch a hawkish fed, that could impact current markets and cause banks to respond in ways they haven't anticipated. gradualmally a approach. when might see pressures and the money markets, especially emerging markets in asia, for example. haidi: at this point, we have been putting aside the idea we will have a repeat of the taper tantrum, but the central banks focus, as well. what's interesting at of australian and new zealand to you? to build on what miss yellen said, it would be interesting to build on fresh commentary from these policymakers. in inflation signs taking off. what do you think u.s. tax reforms mean for is a story and what does

francine: enda, thank you. still with us, david bloom from hsbc.here a read across from this story? the chinesey, authorities are really serious about cracking down on these things. and therefore, it means it will be a healthier and more stable economy and therefore, impacts the economy. >> if you go back six to nine months, people were worried about the chinese growth. and today, nobody is worried about it at all. that is a very positive environment. most people think it is constructive to deal with a problem that exists. is taking itsbi own way. this is a more volatile currency. there has been strength since the beginning of this year. our forecast now is 620. we are now looking at dollar weakness and renminbi strength. i think china is moving along very nicely. we have seen 6% to 7% growth, which we would love to have such a thing in the u.k. things have been reasonably well, which is a very good environment. tom: let's go back -- david bloom, too much to talk about. he is with hsbc. coming up, an important conversation regarding policy in washi

matt: thank you very much, and an joining- enda curr us from hong kong.e will look at the stock you want to keep your eye on today. that includes bayer which has said it will sell more businesses. as the wants and to acquisition drags on. and other companies we want to cover with earnings. the open is 10 minutes away. stay with us. this is bloomberg. ♪ guy: six minutes to go till the start of cash trade. let's look at the stocks to watch this morning. let's start off with bayer. it cool down quite hard. the monsanto -- they may have to make some more disposals to get that done. is that the reason the stock is down or their -- are there other factors? >> it might be closer to midyear but also maybe some earnings numbers were not quite as good as one would have expected. we are seeing some premarket pressures. shares are down. guy: this is an interesting story. they are going to get a bigger bite of the apple. getting more business out of apple. >> that is also the bad news. they are massively dependent on apple which has hinted they powerdevelop this manag

to do everything tony talked about enda kenny talked about. to lay it out and show what it is every day because the audience has never been more interested in what it actually is we do and how we go about doing it. there are market pressures, partisan pressures, but there are enormous opportunities to do this right and show the way. >> thank you. a few other colleagues that want to come in. we will make a decision with the rest of the time we have. >> i will try and be brief. i think his point earlier on about where do you start, elections was well made. with mynstituency magnificent majority of 30. i am one of 11 members when i left the under 100 club. a few hundred votes, you change the government in the u.k., that is how tight it is. i want to preface my question, i am a journalist myself. accurate,a fair, free, responsible press is vital. the new media, digital media organizations are for their useful role. they wouldn't be as popular if they didn't. as far as your companies are concerned, they are taking large chunks of your revenue. argu

yvonne: thank you, enda curran kong.g us here in hong we are going to continue our conversation on globald out why reverend lee says the ecb will be one of the key drivers of rate normalization in 2018. kathleen: later in the show, -- asia is ae major growth outlook for airline manufacturers. we will return to the singapore airshow to find out how boeing is trying to take it of demand. this is bloomberg. ♪ kathleen: this is "daybreak asia."i'm kathleen hays in new york. yvonne: i'm yvonne man in hong kong. asian futures, tumbling almost 11% -- 1%. let's get the view from sydney and raymond lee, kapstream capital portfolio manager and ahead of credit, joining us here this morning. welcome back to the show, of course. of course, it's been about the bond market. we've been talking about this for months now, but what do you think has shifted now that we have seen treasuries and that at 5%? raymond: i think treasuries were bound to go up in terms of yields. it hit a low of 2% or thereabouts in september. with global growth estimated by the imf at 3.9%, fundamentals u.s.,ly, not just in the are

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