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

let's delve more into the japan gdp number and bring in enda curran to break it down for us. a bit of a reality check for japan. [laughter] enda: but it is. eight quarters of growth, a nice headline. but there is a lot more the economy still has to go. can see the contribution from net exports growth was actually zero. even though it is a trade rebound, it shows japan getting not much of a dividend and the moment because of the strong currency. certainly a wake-up call reinforces the idea that boj, when governor corroded -- kuroda says -- kathleen: our bloomberg forecasted 0.4 instead of 0.5, even though the consensus may have been higher. exports versus imports, it is a surge in imports. it is not so much suffering with exports. enda: absolutely, there is good, strong consumption having -- happening in japan. again, disappointed in this morning's numbers. it is reflecting the strong record, corporate profits. that is on the back of the robust exports. at the same time, the yen is acting as something of a dampener on the exports story, or may come a going forward. especially

we now welcome enda curran from hong kong. tell us how dramatic this was. here, this seemed like quite a big announcement. enda: that is a very big announcement. it is something of a cinematic fall. one analyst described it today. there are two sides to it. you have an in sure that ballooned in size through there arens, and questions about financial stability, how they are being financed, and asset and liability mismatch because they were shilling's -- selling short-term management assets but buying long-term. there is also a real political, economy side. is serious about taking risk out of the financial system. the state rules over everything in china's economy, and if you youa private enterprise have to fulfill the national interest and meet the communist party objectives. david: he said all of those things and the congress. what reaction are we seeing in the markets in asia to this action? enda: the market reaction has been relatively controlled, because as you say, there has been an expectation or understanding that china is clamping down on these congl

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 curran,'s joining us on the trade numbers in china. global hacking, revealing the increasingly dominant role played by north korea. this is bloomberg. ♪ ♪ cyber investigators are increasingly blaming north korea for a wave of hack attacks across the globe to read pyongyang's prowess in this area almost as them oppressive as there nuclear threat. inside of the world of kim jong-un's cyber warriors, having spoken to a defector, the reporter of that story reporting from seoul. what does hacking mean for kim? what does he care about technology? >> a lot of people tend to think north korea is such a backwater that you would not expect any type of technology, but that is not true. it is true that internet access is very limited in north korea. regime excepts's a lot of things that would improve the productivity of the factories they run. so technology is very important. kim jong-un is personally a mac user. he is a big fan of apple products. i have spoken to defectors that officials carry around ipads in the offices. technology is important

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

for more, here is enda curran. what is going on, what is causing these jitters?alyst was trade numbers yesterday. we had a big shrinkage in the trade surplus. more demand for currency out of china. biggeralyst was, the backdrop is, perhaps the yuan has gone far enough for the authorities against the dollar and a basket of currencies. there is a feeling china's currency is going into pain territory. they may ease up on capital controls. buting overly substantial, signaling they are willing to let money flow out easier. yvonne: i want to bring in our joiningianguang shen, us on set. you might want to bring up a chart. not just with dollar renminbi, but what we have seen against the basket. beenis what the market has watching out for. we see the renminbi strengthen against this basket, the most in two years. have we reached an inflection point, that this is too strong for the chinese government to tolerate? >> i think so. it is approaching 6.2 last year. they have signaled their concern over the renminbi. data, 30 badxport actually. that is one month before the chin

yvonne: let's bring in enda curran to talk more about this. on coming back with a vengeance? enda: in this case, just about toilet paper. it is making people a lot of nervous out there. the feeling that an incident like this is a reminder of how quickly inflation expectations can change. the global backdrop has changed since 2011. labor markets tightening the most in decades. companies spending money. people nervous inflation will come back. shortages indicate in economic terms, production is surpassing capacity. we talk about the gap in inflation. it is toilet paper in taiwan. are we seeing similar instances across asia? enda: people do point to certain episodes. in taiwan, people blame china'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

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

i thought and the current report -- enda curran report on china was wonderful and it's not just abouts around the world. francine: it is. what we are trying to figure out and we have our morning must read on it is whether this is something china will continue to do or whether it is on one person and the and bank -- embank chief executive. tom: it's a fascinating story, an important story overlaid on other chinese companies. taylor: u.s. treasury secretary steve mnuchin is brushing aside signs investors are growing nervous about rising prices. mnuchin tells bloomberg trump administration policies will raise wages without causing broader inflation. long-term treasury yields have part recently part -- in due to budget concerns that will raise inflation. deputy atrmed sheriff the school where 17 people were killed took cover when the shooting started instead of going after the attacker. the deputy has resigned after being suspended and the sheriff said his office received two dozen calls about the suspect over a decade that may not have followed up adequately. pakistan is going to be plac

enda curran joins us now. there's an external review that janet yellen gave.lternate reality where she stays on for another term. a: absolutely. there was plenty in that interview. not just for miss yellen, but a lot of policymakers. the global economy seems to be in good order. there seems to be a certain risk to the growth stories and it may come from markets. that's because of the devaluations in stock markets. we are seeing that in asset markets. and of course, we are seeing it in traders. there's a real sense that miss yellen was articulating the idea that the economy is fine. that's a feeling around the world. that the storys could be upended a something happening in the market and we are seeing that with catching up with inflation pricing. that's where it worries. she was speaking to concerns of money on that point. haidi: also had some fed speak adding to these jitters. you can see what's happening when it comes to the market reaction. the markets have priced in three hikes this year, only to get more than that according to what we heard from robert ka