he is a former kmt lawmaker. he is now advisor to the kmt.l taipei. this is bloomberg. ♪ rishaad: that is a roundabout in shanghai. csi turning negative. the shanghai comp currently is in the positive space. there was some optimism earlier on with the latest inflation and trade numbers coming out. trade perhaps better than expected. ultimately we had inflation read suggesting a deflationary trend, albeit one where the inflation number was slightly more benign than expected. it does mean people have been betting on the medium-term lending facility to be reduced by 10 basis points to 2.4% on monday, that according to our survey of some 15 economists. the pboc seeing perhaps they might inject 120 billion yuan into the system to boost liquidity. this is the hong kong market which has now gone negative. it is the tech and property side of things that is changing sentiment to some extent. as those chinese traders go off of their lunch break, we have the japanese ones in tokyo returning. the nikkei 225 was up in excess of 1.8%. we are off those high

now, he was pulling mostly from the kmt. tpp had not run, then it's possible we would have seen a kmt victory. what that says is that the kmt itself is not speaking to taiwanese voters, they still say that a close relationship with china is the best way to guarantee taiwan's security. most taiwanese voters, or many taiwanese voters, just don't feel that that's true anymore. ali: how markedly is this going to affect cross-strait relations? bethany: well, at the end of the day, here are the facts. china wants to unify with taiwan, and taiwan doesn't. and, you know, regardless of how the voters in taiwan vote, that's not going to change. which means there is going to inherently be some level of tension with china. but what the voters were looking at is, you know, a continuation of the past eight years of dpp rule. now, the dpp is a party that china has cast as a separatist or independence party. in fact, when the current president was elected in 2016, china cut off all formal communications with taiwan. and since then have stea

., ~ , kmt, i think._ kmt, i think. what do think it tells us about the appetite for - kmt, i think. what do think it tells us about the appetite for dpp's - us about the appetite for dpp's politics? t us about the appetite for dpp's olitics? ~ , ., politics? i think it is tied to the rise of taiwanese _ politics? i think it is tied to the rise of taiwanese as _ politics? i think it is tied to the rise of taiwanese as an - politics? i think it is tied to the | rise of taiwanese as an identity politics? i think it is tied to the - rise of taiwanese as an identity and solidifying as an identity. in the 80s and the 90s, some polls showed that when people were asked what their identity was, they would say either chinese or chinese and taiwanese and now 70% of the population will say taiwanese. it is tied to that massive identity shift. with that identity shift, you see that only strengthening going forward? it is hard to see that that would move back or shift in a backward movement towards china? absolutely a

siphoning away some of the votes from the kmt.— from the kmt.wan and how - from the kmt. if we talk about. identity for taiwan and how they from the kmt. if we talk about - identity for taiwan and how they see themselves, in the context of a relationship with china, this new party, the taiwan people's party, has a lot of support from young people in taiwan that perhaps want a new path or want a bit of a change from the more established two parties of the dpp and the kmt? yeah, and i think that is their strategy that they want to be a little ambiguous about how they identify themselves and throughout the campaign, the tpp have been quite clever and at times signalling that they are more of a taiwanese identity and that he will shift back, ko wen—ji. at least to the younger voters that i have talked to, they seemed to like that ambiguity in terms of identity and it also is linked to their masterful use of social media. they are able to tap into that.— use of social media. they are able to tap into that. how would you rate their success _ to tap in

votes who did not vote for the kmt.r to the km to -- kmt yesterday and he told me if the kmt were to lose this election, as they did, kmt will go through some serious changes. they need to change their narrative, they need to get younger, so this is also a complete rebuke on the presidential election level of the kmp. >> what is the view out of washington? they are sending a bipartisan delegation to the island. >> obviously also a japanese delegation coming here. these are the whole concept of friend-shoring, taiwan is in that grouping with the u.s., south korea, taiwan, japan, and the like so yes, they are sending former government officials here to get the sense of what the priorities will be going forward. he will take over the presidency in may. but to give a sense of continuity in policy. antony blinken said the election shows the strength of taiwan's democracy and that the u.s. is committing to seeing the peaceful resolution of differences and free from coercion and pressure. i guess that is the next thing we are

the kmt try to stay away — centre.dentity, and the _ from talking about identity, and the tpp says, we are good for everything. what you can see is— for everything. what you can see is everyone is trying to say, — see is everyone is trying to say, we _ see is everyone is trying to say, we are less extreme than you think. _ say, we are less extreme than you think, and we are not for china — you think, and we are not for china or— you think, and we are not for china or we _ you think, and we are not for china or we are not for us, and ithink— china or we are not for us, and i think everyone has also affirmed taiwan's international relations, orforeign affirmed taiwan's international relations, or foreign policy direction, which is taiwanese to connect with the world and needs— to connect with the world and needs to _ to connect with the world and needs to better relationship with— needs to better relationship with china and for that, everyone split their vote. without _ everyone split their vote. without moderation to th

for taiwan's main opposition party, the kmt, the| opposition party, the kmt, the result today was anotherhe whole party leadership bowed their heads as they beg for forgiveness from their supporters. the kmt�*s candidate hou you—ih had run on a platform of getting closer to china, a policy which may have contributed to this defeat. choosing thing loads and is directed presidential wind. now everyone is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news, taipei. live now to liberty square in taipei and our presenter steve la i. thank you. we have had the results and reaction. let's dig into the main talking points from the election. to do that i am joined by a guest, raymond rand. it am joined by a guest, raymond rand. , ., rand. it is not third term when. rand. it is not third term when- -- _ rand. it is not third term when. -- raymond - rand. it is not third term when. -- raymond kuo. | rand. it is not third term | when. -- raymond kuo. it rand. it is not third term - when. -- raymond kuo. it is for when. —— raymond kuo. it is for more years to the consolida

coming up next, opposition party kmt is seeking support we will.n update from one of their rallies just ahead. this is bloomberg. ♪ vonnie: you're watching "daybreak: asia." china has top envoy to the u.s. says beijing has no room to compromise with those advocating for taiwan's independence. the ambassador also urged the u.s. to follow the one china principle. taiwan votes for its next president this saturday. china has previously called taiwan's ruling party, it, lai ching-te, a troublemaker, whose rules risk sparking conflict, relations with china are top of mind with voters ahead of saturday's election stephen engle. reports from a rally for one of the opposition candidates from the traditional beijing-friendly kmt party. stephen: it was a homecoming crash for a position kmt presidential hopeful toyota e as he rally the faithful -- hou yu-ih as he rally the faithful. the other presidential candidate of the taiwan people's party are making separate last-minute pushes to defeat the more independence's-minded ruling tpp and its candidate. it's a t

for taiwan's main opposition party, the kmt, it was another humiliation.n on a platform of getting closer to china. the kmt is the party xi jinping would prefer to see running this island. instead voters gave the party he loathes an historic third presidential win. now everybody is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news, in taipei. rana mitter is the professor of us—asia relations at harvard kennedy school. i asked him to explain why the us, although it backs taiwan, does not support its independence. this is something that has been an issue for more than 50 years. when the people's republic of china was recognised by the united states back in the 1970s, part of the overall deal was that they would not acknowledge taiwan as a separate internationally recognised state, and that still stands today. although the american presidentjoe biden has made it clear that he would defend taiwan — he has used that phrase before — if china were to attack it, he has also made it clear, as has secretary of state antony blinken, tha

the biggest winner was the taiwan people's party which won eight seats, whereas the kmt and dpp eachand 51 seats respectively. it seems strange to say that with eight seats, they are the big winners in this election, so what's sway will they have? with basically a 51... forthe dpp, the president of the cannot count on his party to pass bills which requires 57 seats, a majority , what's way what this means is both parties can work with the dpp and he may have a deciding vote on everything from defence bill the domestic reforms on housing, energy policy but very important in this means foreign policy will take some time actually to make decisions on. it seems like it could complicate things somewhat, so how will washington and beijing be able to interact with this new government? as you said, jim hanley, sorry, steve hanley andjim steinberg are already here in taipei, so the reassurance the united states wants to give to taipei and beijing at the same time is already under way. i think beijing will probably wait until the us presidential election to step up the heat, and to intensify t

for taiwan's main opposition party, the kmt, it was another humiliation.n on a platform of getting closer to china. the kmt is the party xi jinping would prefer to see running this island. instead, voters gave the party he loathes an historic third presidential win. now everybody is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news, in taipei. let's cross now to prof rana mitter, who is the professor of us asia relations at harvard kennedy school. thank you forjoining us. i first want to focus on the relationship with the united states because it's a little complicated, the united states backs taiwan and yet they are not pushing for a formal independence, are they? they absolutely _ independence, are they? they absolutely are _ independence, are they? they absolutely are not, _ independence, are they? they absolutely are not, this - independence, are they? they absolutely are not, this is - absolutely are not, this is something that has been an issue for more than 50 years. when the people's republic of china was recognised b

stephen: these two kmt supporters felt the same way and see closer ties with china has a benefit, not -- as a benefit, not a threat. >> we need to keep good coming occasion with the chinese communist party so we won't have work. stephen: the two main opposition candidates agree that the dpp is putting taiwan at risk and that they must defuse tension across the taiwan strait. on the other hand, they cannot show to the taiwan as people ahead of the selection -- the taiwanese people ahead of this election that they are cozying up to beijing too closely, and their efforts could put the long hard-fought democracy and freedom in taiwan in jeopardy. >> i think being closer with china for trade is not such a bad thing, but freedom of thought is what i want more, so i don't want to be closer with china. stephen: it may be the very issue that decides the vote and sets the broader geopolitical tone in east asia. >> it is very, very important, this election, because it is life or death for the republic of china. because china is our roots. china and us are inseparable. stephen: stephen engle, blo

they would hope the kmt nationalist party _ would hope the kmt nationalist party take the presidency because the kmt typically— the parliament, because the kmt typically has a more pro—china stanca — typically has a more pro—china stance. they advocate more dialogue, and they accept the one china policy — this idea that— one china policy — this idea that taiwan is a part of china. so that taiwan is a part of china. 50 china _ that taiwan is a part of china. so china has a preferred winnen _ so china has a preferred winner. they're really hoping that— winner. they're really hoping that the _ winner. they're really hoping that the current ruling party doesn't _ that the current ruling party doesn't get an unprecedented third — doesn't get an unprecedented third term. doesn't get an unprecedented third term-— third term. that the ruling .a l third term. that the ruling party. the _ third term. that the ruling party, the democratic - third term. that the ruling l party, the democratic party, has ruled for the last eight years. unprecedented if they were to win again. we'll see how it pla

just the main opposition party, the kmt, has -- is set to concede this race.e'll see who actually wins the presidential race there on the island. >> yeah. but obviously it cannot be good news for beijing, which seemed to have favored the kmt party candidate. we'll stay on top of this and we'll give you more as we get it in. >>> meantime, this morning, the u.s. carried out a second round of strikes against iran-backed houthi rebels in yemen. it's in response to the recent spade of attacks on commercial ships in the red sea, but u.s. officials say they don't want to see a wider conflict in the region. >> we know people are anxious there about escalation. we are, too. and again, everything we're doing and everything we're trying to do is to prevent any further escalation. >> uk hit dozens of targets in its first wave of strikes against the militant group. the houthis have vowed to retaliate. cnn's oren lieberman has the latest now from the pentagon. oren? >> reporter: victor and amara, the u.s. carried out further strikes against houthi targs in yemen on friday n

right now the dpd candidate is leading in the polls but the kmt- leading in the polls but the kmt candidateial election but his party is fielding more promising candidates in the legislative election. the key here is, do those voters who are interested in a third party candidate break for either the ruling party or the opposition party in the end because the amount of support that he is getting could decisively influence the election if those voters break from one of the other party. in those voters break from one of the other party-— other party. in the wider context, why should _ other party. in the wider context, why should people _ other party. in the wider context, why should people around - other party. in the wider context, why should people around the - other party. in the wider context, i why should people around the world be interested in these elections? what consequence do they have? thea;r what consequence do they have? they will set the tone _ what consequence do they have? they will set the tone for _ what consequence do they have? iie: will set the tone for at what consequen

the opposition kmt, their candidate says taiwan needs much better relations with china and they are partyeve that, over the last two and three years, taiwan's exports to china have fallen by more than a quarter and a massive drag on the economy here. but the kmt says, we can rebuild relations with beijing and in that way, exports will start to grow again and that will help to boost economic development here, economic growth but wages and job prospects. the ruling tpp, which has been in power here for the last eight years is exactly the opposite. it says it's overdependence on china's economy that is the problem that allows beijing to use that dependence as a weapon of a pressure on taiwan, that is exactly what beijing has been doing, they say, over the last two years, sanctioning different taiwanese countries and businesspeople. they want to see taiwan companies diversified to other countries, to south east asia and newmarkets in india and africa. the unemployment rate of southeast asia's largest economy currently sits at 5.3% and those between the ages of 15 and 2a make up nearly a fifth

the kmt�*s candidate, hou you—ih, had run on a platform of getting closer to china.ave contributed to his defeat. instead, voters gave the party xijinping loathes an historic third presidential win. now everyone is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news, in taipei. live now to steve lai in taipei. good to see you there, steve. to begin with, what do you think this election result means for both taiwan and the region? means for both taiwan and the reuion? ~ ~' ., means for both taiwan and the reuion? ~ ~ ., ., , region? well, it kind of means a bit of the _ region? well, it kind of means a bit of the same, _ region? well, it kind of means a bit of the same, in _ region? well, it kind of means a bit of the same, in fact. - region? well, it kind of means a bit of the same, in fact. i'ml a bit of the same, in fact. i'm here in liberty square, or freedom square, built by the founder of the kmt, and you can sort of see that the mood here is very calm, very relaxed, the day after the elections. but what this means is an unprecedente

so the opposition, guomindang or kmt or their candidate says taiwan needs much better relations with that over the last two or three years. taiwan's exports to china have fallen by more than a quarter, and that's been a massive drag on the economy here. the kmt says we can rebuild relations with beijing, and in that way, exports will start to grow again. and that will help to boost economic development here, economic growth, but also wages and job prospects for younger taiwanese people. the ruling dpj, or democratic progressive party, which has the ruling dpp, or democratic progressive party, which has been in power here for the last eight years, says exactly the opposite. it says it's overdependence on china's economy that is the problem, because that allows beijing to use that dependence as a weapon to put pressure on taiwan. and that's exactly what beijing has been doing, they say, over the last two years, sanctioning different taiwanese companies and businesspeople. they want to see taiwan companies diversify to other places, to southeast asia and to new markets in india and afri

the kmt�*s candidate hou you—ih had run on a platform of getting closer to china.ributed to his defeat. instead voters gave the party xijinping loathes an historic third presidential win. now everyone is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news in taipei. to talk more about this, i'm joined in the studio by shirley martey hargis — senior china policy fellow from third way think tank. shirley, good to have you with us. firstly, what can you tell us about president elect william lai? former national taiwan university graduate, former mayor. also harvard graduate, former mayor. also harvard graduate, former mayor. also harvard graduate, former physician, now turned politician and as we know now, current president of taiwan. he said throughout the campaign and in this speech as well that he intends to keep the status quo when it comes to keep the status quo when it comes to relations with china. he is now going to be in office though. what do you make of that? do you think he well? i do you make of that? do you think he well? ~'

the party who controls _ controlled by the kmt. controls the executive branch and the party— controls the executive branch and the party who controls the legislative branch will have lots of power~ _ legislative branch will have lots of ower. ., �* . ~ legislative branch will have lots of ower. ., �* ., ~ ., power. you're talking about the parliamentary _ power. you're talking about the parliamentary vote _ power. you're talking about the parliamentary vote that - power. you're talking about the parliamentary vote that is - power. you're talking about the parliamentary vote that is also l parliamentary vote that is also taking place. dpp had a majority over the last eight years with more than half of the 113 votes. you don't think they will achieve that at this time round?— don't think they will achieve that at this time round? probably not. it is very possible _ at this time round? probably not. it is very possible that _ at this time round? probably not. it is very possible that one _ at this time round? probably not. it is very

we'll be speaking to representatives of the dpp and kmt later today on bbc news.they have conducted military strikes against targets linked to the houthis in yemen. us president joe biden has released a statement on that and we will have more of that on our website bbc .com. goodbye for now. hello there. it was another day where some of us had sunshine, some of us had cloudy skies on thursday. the cloud, again, was coming in from the north sea, bringing with it some patches of drizzle for east scotland, eastern areas of england. but as the cloud came around the area of high pressure that's dominating to the northwest, it actually mixed in some slightly drier airjust above the cloud layer as those winds went across the mountains and that drier air evaporated the cloud. and so, what a glorious day it was across parts of the highlands, with not a cloud in the sky. we're going to have a similar kind of weather prospects, really, over the next day or so. with these clear skies in place in scotland, it's a very cold night in places, temperatures getting down into minus

, - democracy. jason, you are affiliated to the kmt, the | affiliated to the kmt, the opposition, butyou have to come here and vote. tell me your reaction to the results.— the results. absolutely, it's not a result _ the results. absolutely, it's not a result we _ the results. absolutely, it's not a result we are - the results. absolutely, it's not a result we are happy i the results. absolutely, it's - not a result we are happy with, but we — not a result we are happy with, but we know _ not a result we are happy with, but we know that _ not a result we are happy with, but we know that it _ not a result we are happy with, but we know that it was - not a result we are happy with, but we know that it was a - but we know that it was a victory _ but we know that it was a victory of _ but we know that it was a victory of the _ but we know that it was a victory of the people - but we know that it was a victory of the people in l victory of the people in taiwan _ victory of the people in taiwan. and _ victory of the people in taiwan. and no- victory of the people in taiwan. and no matterj v

that's because the kmt— the parliament. — pro—china stance. i advocate more dialogue and they accept that one — more dialogue and they accept that one china policy, this idea — that one china policy, this idea that taiwan is a part of china — idea that taiwan is a part of china 50 _ idea that taiwan is a part of china. so china has a preferred winner— china. so china has a preferred winner and _ china. so china has a preferred winner and they are really hoping _ winner and they are really hoping that the current ruling party— hoping that the current ruling party does not get an unprecedented third term. the rulina unprecedented third term. the ruling party — unprecedented third term. tie: ruling party the democratic progressive party has ruled as you mentioned, for the last eight years. unprecedented if they were to win again and we will have to see how it plays out later today. will have to see how it plays out latertoday. how will have to see how it plays out later today. how is the china taiwan relationship evolving than

kmt says that we can rebuild relations with beijing and exports will grow and that will help to boostlopment and growth here but also wages and job prospects for younger taiwanese people. the ruling democratic progressive party, which has been empowered here for the last eight years, says the opposite. it says overdependence on the chinese economy is the problem because that allows beijing to use that dependence as a weapon to put pressure on taiwan. and that is what beijing has been doing, they say, over the last two years, sanctioning different taiwanese companies and business people. they want to see taiwanese companies diversify to other places, southeast asia and new markets in india and africa. the southeast asia and new markets in india and africa.— in india and africa. the race ofthe in india and africa. the race of the largest _ in india and africa. the race of the largest economy - in india and africa. the race of the largest economy in l of the largest economy in southeast asia currently sits at 53% _ southeast asia currently sits at 5.3% and those between the ages— at 5.3%

had been campaigning against the democratic progressive party and for its favored candidates in the kmtlso wasn't the clearest win for the democratic progressives. they got 40% of the vote but kmt got 33% of the vote in a relatively new party that is preaching a middle way between anti beijing and pro beijing got 26% of the vote. those are a lot of numbers but what this means is that yes, the democratic party got another term and that's good for the biden administration. but every time they go to the taiwanese legislative body now, they've lost their majority and they're going to have to do deals with the pro beijing party. so yes, a good result for the white house. result for those who support democracy and independent or at least a taiwan that stays the way it is right now. but not so clear cut. >> yeah, i mean, and taiwan and the u.s., they've been bcenterig their ties. the u.s. has been increasing support in arms sales to the island but there's also been, kim, there have been these visits from congressional leaders that have angered the chinese. might that need to sort of be dialed

we'll be speaking to representatives of the dpp and kmt later today on bbc news.ng into that. in i understand you've been looking into that. .. ., i understand you've been looking into that. ., ., into that. in fact i went to a tpp rall that into that. in fact i went to a tpp rally that this _ into that. in fact i went to a tpp rally that this week. _ into that. in fact i went to a tpp rally that this week. the - into that. in fact i went to a tpp rally that this week. the crowd l into that. in fact | went to a tppi rally that this week. the crowd at the tpp rally is quite young and energetic and really kind of on board this message called smashing the blue and green, which is a political message that the tpp is pushing. they're putting themselves as an alternative to the two main parties. as an alternative to the two main arties. �* , ., ., as an alternative to the two main arties. �* i. ., , , parties. and the youth vote plays in art, parties. and the youth vote plays in part, 1,000,001st-time _ parties. and the youth vote plays in part, 1,000,001st-time voters

have the kmt and tpp got through -- had that dpp and kmt got through, with the coalition we would'veresult. the percentage of the vote, 40%, is the lowest we have seen since 2000. also, the dpp lost their overall majority in the parliament permit so this is the divided government that lai will have to govern which means that dpp will have to reach across party lines and work with other parties in the legislative yen to get legislate legislation through. that will impact the agenda of the dpp. haidi: what have we heard from beijing so far, john, we have heard a few comments from the foreign minister. john: the response so far, i would say has been muted. foreign minister wang yi was in cairo. at a press conference on sunday, he talked about the fact that no matter what the outcome of the election was, it was indisputable that according to beijing, taiwan is a part of china. that has been the ongoing theme. we have also heard news from the foreign ministry in beijing, they have sent stern statements to the united states after the state department set congratulations to taiwan following

for taiwan's main opposition party, the kmt, it was another humiliation. platform of getting closer to china. the kmt is the party xi jinping would prefer to see running this island. instead voters gave the party he loathes an historic third presidential win. now everybody is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news, in taipei. mr lai's presidency will likely be judged by how well he manages an increasingly aggressive beijing and whether he can avert a major crisis in the region. the chinese communist party has never ruled taiwan, but claims the self—governing island is part of its territory. earlier, our china correspondent laura bicker updated us on china's reaction to the election results. we've just had a statement from the taiwan affairs office which says that the results of these elections in the taiwan region show that the democratic progressive party cannot represent the mainstream public opinion on the island. that's obviously a nod to the result that william lai, the new president of taiwan, new president—e

key question in the legislative end of the parliament especially with arms sales for taiwan will the kmt and tpp opposes that they may have the power to do. i think it would not play very well in the taiwanese public we know in the election, they did say they wanted to that you can talk to china, but in a position of strength i'm not sure what fissures we'll see. it is a complicated with the three-party split. politics is unpredictable. taiwan is a democracy. we will see. >> ben, a quick question to wrap up the risk of the military conflict how likely is that do you have a percentage in mind >> few people in the world plan to invade other countries for fun. obviously, there are terrible leaders who do that kind of thing. i don't think it is likely that xi jinping or the chinese are sitting on any invasion plans. we don't know what is in their heads. the issue for taiwan is the pressure to undermine the taiwanese society. the missile tests needs to cycle a provocation or miscalculation. i don't think anyone thinks there is any imminent plans for an invasion of taiwan. >> ben, i appreciate

the main party headquarters for the announcement — this is the scene now at the headquarters of the kmt taiwan's main opposition party. my colleague steve lai is in taipei and joins me now. this is in taipei and joins me now. is all progressing rer quickly. this is all progressing remarkably quickly. it this is all progressing remarkably cuickl . . , , , this is all progressing remarkably cuickl. . , , quickly. it really is, it is a demonstration _ quickly. it really is, it is a demonstration of - quickly. it really is, it is a demonstration of what i quickly. it really is, it is a | demonstration of what can quickly. it really is, it is a - demonstration of what can be done when it comes to electoral processes, perhaps, counting by hand, but those numbers continue to roll in. i have someone from the local news network with me, and in a transparent way, you can see the numbers getting refreshed in ten seconds. william live from the democratic progressive party is currently in the lead with 6.7 million votes. behind me is hou yu—ih from the kmt, the largest opposition party, in second pl

the kmt�*s candidate, hou you—ih, had run on a platform of getting closer to china.ave contributed to his defeat. instead, voters gave the party xijinping loathes an historic third presidential win. now everyone is waiting to see how china's leader will respond. rupert wingfield—hayes, bbc news, in taipei. for more on the us response to taiwan's elections, the bbc�*s tom bateman sent this update. the us government has congratulated mr william lai today, while at the same time saying it does not support taiwanese independence. that is nothing new. it's the long—standing policy of the us, but i think the way it's being reiterated so bluntly by president biden is meant as a message of reassurance to beijing, because it is the very long—standing unofficial possession of the us of support for taiwan, possession of the us of support fortaiwan, including many for taiwan, including many years fortaiwan, including many years of military sales, that so grates on the chinese and worries them so much. remember that china has never ruled out the use of force if it came to it for

for the kmt candidate, hou yu-ih, taiwan needs to engage with beijing more actively in order to preservey and autonomy. nick: this election also features for the first time a third-party candidate, former taipei mayor ko wen-je, popular among young voters. >> he's not that different on the major policy areas. his position on cross-strait relations is a little bit hard to discern. but i think his appeal is that he's a new face. the prc doesn't like any of these candidates, but they dislike lai ching-te the most. >> that's led to what taiwan calls beijing's unprecedented election interference. including lai deepfakes. that's the real lai on the left, right. -- that's the real lai on the left, manipulated lai on the right. and what the us and taiwan call disinformation about labs with dangerous viruses, and bioweapons. independent researchers have also found a campaign of fake online accounts, disparaging lai and promoting the kmt. taipei accuses beijing of cyber attacks, co-opting local officials, and increasing economic pressure. >> china has intervened in every major taiwanese election,

there's the more conservative and beijing—friendly kuomintang, or kmt.yu—ih. he's promised to boost the island's defences while restarting talks with beijing. there's also the smaller taiwan people's party, or tpp, which lies somewhere between both parties on the political spectrum. their candidate is former taipei mayor ko wen—je. joining me is our asia digital reporter tessa wong. taiwan prides itself as having a vibrant democracy and an engaged electorate. you don't have to go far to see political dialogue, debate and disagreements all play out in the media and in public forums. but that openness also means that it can be vulnerable to disinformation. joining me is our asia digital reporter tessa wong. tessa, great to have you with me up here. let's focus on this information with regards to the taiwan election. what does that mean? set the context.- mean? set the context. what we've been — mean? set the context. what we've been seeing _ mean? set the context. what we've been seeing in - mean? set the context. what we've been seeing in the - mean? set

they would hope the kmt nationalist party take the presidency and the parliament, because the kmt typicallyne china policy — this idea that taiwan is a part of china. so china has a preferred winner. they're really hoping that the current ruling party doesn't get an unprecedented third term. that ruling party, the democratic progressive party, has ruled for the last eight years. unprecedented if they were to win again, we'll see how it plays out later today. how has the china— taiwan relationship evolved under xi jinping? relationship evolved under xi jinuin? , g , relationship evolved under xi jinina? g , ., jinping? does xi jinping want to invade taiwan? _ jinping? does xi jinping want to invade taiwan? the - jinping? does xi jinping want - to invade taiwan? the comments he made when he first came to power, he said early on in his tenure that he thought taiwan was not an issue that should be passed down through generations. some people thought he would want to deal with taiwan very quickly, some thought he had an appetite to invade. we certainly have seen heightened military exercises dur

are essentially on home turf when it comes to— we are essentially on home turf when it comes to the kmtle of new taipei city here and — have the male of new taipei city here and his supporters are all around — here and his supporters are all around her. —— the mayo of new taipei _ around her. —— the mayo of new taipei city _ around her. —— the mayo of new taipei city i_ around her. —— the mayo of new taipei city. i think supporters are looking _ taipei city. i think supporters are looking for— taipei city. i think supporters are looking for a more relaxed and dialogue —based relationship with beijing _ dialogue —based relationship with beijing. we were just at the rally of the _ beijing. we were just at the rally of the ruling party as well and tens of the ruling party as well and tens of thousands of supporters have rallied _ of thousands of supporters have rallied across taipei city and new taipei _ rallied across taipei city and new taipei and — rallied across taipei city and new taipei and you get a mix of things, for example, the economy that has come _ for example, the economy tha

for the kmt, we have hou yu—ih and we have set for the tpp. —— ko wen—je. we have set for the tpp. --ko wen-“e. ~ . ., ~ , i, wen-“e. which way do think it is to o? wen-je. which way do think it is to 0? at wen-je. which way do think it is to go? at the — wen-je. which way do think it is to go? at the moment, _ wen-je. which way do think it is to go? at the moment, it— wen-je. which way do think it is to go? at the moment, it looks - wen-je. which way do think it is to go? at the moment, it looks like l wen-je. which way do think it is to go? at the moment, it looks like it will no for go? at the moment, it looks like it will go for william _ go? at the moment, it looks like it will go for william lie. _ go? at the moment, it looks like it will go for william lie. the - go? at the moment, it looks like it will go for william lie. the most i will go for william lie. the most recent polls, and you are able to according to poll is ten days before. whether tpp�*s failing a bit. and how much is election contention issue? .,, , and how much is election contention issue? , s, and how much is

there is no doubt that their preferred outcome would be victory by the kmt.hey have been quite upfront with saying so. the taiwan affairs office in beijing, that's the organization in charge of promoting unification with taiwan, has urged taiwanese voters to make what they call a wise choice. which is clear in that they mean vote for the kmt. but it's very much up in the air. we're currently in the blackout period, we're not allowed to report on or discuss opinion polls, even previous ones. but one thing we can say for sure is that it's going to be a tight election, so whether or not china will get is preferred outcome, we will have to wait and see. in terms of the united states, that's the other big player in this three-white relationship. opinions are very much divided. the united states has repeatedly said they do not have a preferred outcome for the election, they respect the will of taiwanese voters, but is widely viewed as they would prefer a dpp victory, in that they would have a much more willing negotiating partner in taipei if that were the case. kr

the opposition kmt, their candidate says taiwan needs much better relations with china, and they areachieve that. over the last two or three years taiwan polymer exports to china have fallen by more than a quarter, and that has been a massive drag on the economy here. the kmt here says we can rebuild relations with beijing, and then export will grow again and then export will grow again and that will help to boost economic development here, economic development here, economic growth, and wages and job prospects for younger taiwanese people. the ruling dpp, which has been in power here for the last eight years, is exactly the opposite. it says its overdependence on china's economy is a problem because it allows beijing to use that dependence as a weapon to put pressure on taiwan, and thatis to put pressure on taiwan, and that is exactly what beijing has been doing, they say, over the last two years, functioning different taiwanese companies and business people. they want is a taiwan companies diversify to other places, to southeast asia and newmarket india and africa. —— new markets.

across town, the opposition kmt is holding its own huge rally.n a peace dialogue with beijing. we prefer to get along with them peacefully, right, so our economics can be improved. yeah, that's what we want. yeah — we don't want our young people to be requested to get into the war. they may differ on how to manage the threat from beijing, but both the major parties in taiwan agree on one thing neither of them but both the major parties in taiwan agree on one thing — neither of them wants unification with china. rupert wingfield—hayes, bbc news in taipei. it's the final day of south africa's landmark case at the international court ofjustice against israel, whose been accused of genocide in gaza in its war against hamas. who's been accused of genocide in gaza in its war against hamas. israel has slammed these allegations, telling judges that the case is distorting the truth. in an emotional testimony, israeli lawyer tal becker showed images of the 132 israelis still captive in gaza — saying the allegations deny israel its right to defend itself. h

there is the kmt and the tpp parties. you gave us scenarios which could be good and bad for investors. i want to start with the incumbent party. what is your outlook? >> i think this could be marginally hostile given you could provide checks and balances with the ruling party which would take the position with the parliament. we know if the dpp candidate wins, we should see more continuity of the policies in taiwan. including the relationship with mainland china. that should be a neutral outcome if he wins. if the party wins by the kmt, the opposing party, who has more constructive and pro-chinese stance, that should help improve taiwan and mainland. i think the markets will receive that positively. overall, the outcome should be neutral to slightly positive. >> one last question, you mentioned the economy is heavily levered to chips. what is the outlook for the economy? we don't know the outcome of the election, but in general, with the restrictions from the biden administration on china and competition with a.i. in ge g

as for the kmt, this is a party that china has traditionally favored.ing said, both of these parties are parties that have focused and stressed the sovereignty of taiwan, saying the fate and future of taiwan is determined by the people of taiwan. so a number of analysts, even officials inside taiwan say no matter who wins this election, it is expected that china will continue to make investments including military investments to put the pressure on taiwan which your a destabilize -- which would have a destabilizing effect on taiwan, the taiwan strait, on the region it would affect the global economy as it would affect trade, shipping, the global supply chain. don't forget that the world's biggest contract chip maker is based in taiwan. i'm talking about tsmc. back to you, kim. >> we'll find out in a couple of hours. thanks so much. >>> u.s. launches a new wave of strikes on houthi targets in yemen. but as western missiles rain down, houthi leaders try to win political points at home. we'll explain that coming up. stay with us. get over here kids. time f

if the kmt comes into power, there is a good chance that tensions ease somewhat.: let's see what we've got coming up in terms of the big stories we are following globally. chinese president xi jinping claiming he will deepen and anticorruption crackdown. state media suggesting finance, pharmaceutical and state owned firms. it targeted a record number senior officials including high-profile bankers. thailand's plan to pay for a $14 billion cash handout has been given the green light for its legal advisor. a controversial plan to give out about -- raising plans it will stave inflation. a lot more coming up right here on bloomberg. ♪ yvonne: looking at markets, the risk rally continues throughout the region and following what we saw in the wall street session. i think it surprised a lot of people, all the things that happened toward the last few months of 2023 are happening again. fed speak was a little more dovish, and then we had the ai trade coming back in full force thanks to nvidia. some big movers to tell you about, shipping stocks, some reports talking about a

but as they kmt candidate has said, he is not going to make any progress toward unification if he wins: unfair question. do you think will win? ava: i think as of now lai appears more likely to win. before the polling blackout began on the third of january lai has held a consistent lead over the other two candidates. the key question is whether this lead will hold and whether it will be a statistically significant edge that lai will have over the other two candidates on saturday. guy: great stuff. thank you for the analysis. one of the key elections at the beginning of this year. we have seen the issues the red sea is producing in terms of supply chains. we are going to watch taiwan closely. ava shen of the eurasia group. thank you very much. these are the final numbers for the week. we are flat on the week. up on the day, but flat on the week. saul martinez is going to join us next. jp morgan having a cracking day. citi a little more mixed. we are going to talk about all of the details next. the view from hsbc next. this is bloomberg. ♪ psst. hey, sarah. hi. if you had to choose, woul

there are some varying policies from the kmt and dpp. phase out nuclear plant by 2025, so that would mean good news for the wind power companies that have been benefiting from the policy, but the kmt win would mean a slower development shifting toward renewables. we had all three presidential candidates saying they will be increasing the defense spending to bolster their military capabilities, so we will not be seeing a lot of change there, but a dpp win could mean good news for shipbuilders because they are trying to build domestically produced submarines. also for tourism, we have some of the restrictions we have been seeing, so tourists coming from mainland china, md -- and the kmt candidate said he will open the border immediately when he gets elected. rishaad: there we go. thank you so much. our asia stocks reporter having a look at the implications of whoever wins in taiwan. more on those elections on bloomberg. let's show you what we have coming up. we will be looking at india as it gets ready to announce its gdp projection a bit

the opposition party candidate who usually of the kmt says he will push for more dialogue.h china. gaining traction with younger voters. rupert wingfield—hayes reports. taiwan elections are noisy, boisterous affairs. in front of the presidential building in taipei, supporters of the ruling dpp are hoping for an unprecedented third presidential term. young voters told me they want to send a message to beijing that taiwan is nothing like china. in china, you cannot stand for your rights on the street and the way to express our opinion, we can vote for president. we can have many, many different voices, no matter if you support the government or not, but in china it can get you only one voice.— only one voice. there is nothing _ only one voice. there is nothing like _ only one voice. there is nothing like this - only one voice. there is nothing like this in - only one voice. there is i nothing like this in china. this is what sets taiwan apart does make people here are free to choose their own leaders. they are proud of their democracy but also fear it is now under threat from

if kmt wins this election we see the potential for a resetting dialogue between taiwan and the prc and of itself. i think we will see more of this icy relationship between two sides. regardless of which party wins i do not see a major change between the taiwan and us relationship. all three presidential candidates have made multiple trips to the united states to ensure that make sure the united states and all three are taking a similar approach meaning they will continue robust dialogue and slowly build up relations between the two countries. we ma see between the two countries. we may see some movement depending on who wins this election. how would you characterise the relationship they have at the moment? fist relationship they have at the moment?— relationship they have at the moment? �* ., , moment? at the moment it is cold. moment? at the moment it is cold- the _ moment? at the moment it is cold. the prc _ moment? at the moment it is cold. the prc has _ moment? at the moment it is cold. the prc has decided - moment? at the moment it is cold. the prc has decided it l cold. the prc h

on the flip side the uncertainty of who's gonna win at the moment is the kmt hold, the parliament thento the geopolitical events for that we could also get something at the end. parliament, unfortunately, it tends to be a president. so on that front that will probably be where we're getting geopolitics as election comes through as well and will continue for the update you got the over all, which candidate in indonesia come through. regardless of which president comes through a lot of their reform has already been done. and it's all good economic reform at the moment and that will likely continue. not much reaction in the current. then india where the general majority expects president modi to win again. and i think that's probably the best bet at the moment. pulls out today, polling will continue. that will be the biggest shock is, if they do lose and upa and the imd a party takes charge then you will see much bigger action. sharing her thoughts on currencies and the impact of elections we will be seen throughout asia. apart from the taiwan elections at the weekend, a few other economi