is a veryave here active interventionist movement by the pboc.erhaps they are sending a message to donald trump. anna: china says they are doing some expectation management. lookesting that when you back to january of last year and what this spike in overnight lead to,yuan deposits it led to a strengthening in the chinese currency over the next two months. whether that will occur again we will see. hasus bring it into what been happening overnight in the asian equities session. yuan is a little weaker. we saw the pboc strengthening the yuan, the fixing, the most since 2005 the it was less than expected. mexican peso, a little stronger this morning. fromng the advance yesterday's session after donald trump turned his attention to the japanese automakers in mexico. manus: one pervasive theme. intervention. the pboc is intervening and the mexicans are intervening. regrasp arying to moment of control. it is jobs day in the usa. saying it had dropped 10 basis points. rallyasia-pacific -- the in stocks fizzling a little. a mixed performance from asian

the pboc has instructed banks to curb new loans.ame and told not to increase the amount of mortgage lending or the rate of outstanding mortgages relative to the fourth quarter. we did try and get in touch with the pboc, but they did not actually respond to this. let's get some reaction now. james from bank of singapore. tell me, what is your reaction first of all to this? they're getting worried about the housing market is the first takeaway. i think one of the risks facing china this year is the housing market. it's slowing down, a lot of leverage is tell you in the property market. therefore, i think this is part of the measures to try to cool the market in china in a sustainable way. and i think the economy of china is currently -- by stop and go. if inflation gets out of hand, the government will come in to curb it. if it is too slow, they will enact fiscal measures, monetary easing. i think 2017 will be a year characterized by stop and go. rishaad: stop and go. well, that, of course, is going to be contingent on what happens wi

. -- pboc updates its listing. trade troubles.hina set to be considering significant retaliation if donald trump delivers on his protectionist promises. how far could follow spread? it is job day. obama set to hand over his successor the best stretch of jobs growth since the night -- 1990's. can trump deliver wage growth? what's happening around the your gmm, yen down by 7/10 of 1%. still trading 116. dollar, british pound 3/10 of 1%. bloomberg dollar index up by 2/10 of 1%. in terms of bond market, we are waiting and watching to see exactly what happens a little later on with that. the spread between boones and treasuries, just beginning to tighten up a little bit. this talk about where we are in the weei and will reach the markets to go in 28 minutes. london looks like it will hold, but the rest of the spread across europe looks like it will be negative. payrolls will have a big contributor factor later on in the afternoon. let's get the first word news. >> thank you. the offshore yuan has paid its record weekly rally is china's

the fall comes at the pboc at thames to stabilize the yuan.'s go to our beijing and bloomberg chief asia economists. what did we learn, the fx reserves holding their head just above the $3 trillion mark. >> that's right. china has succeeded in studying, but not stopping, the outflow of capital from its economy. the second half of 2016 was a story of escalating capital outflows. what we saw in the december date to that came out of or the weekend is that capital flows continue, but they have stopped getting bigger. for: is the worse over china's capital outflows question mark big question for 2017. -- capital outflows? bothere are forces in directions. one factor that should drive more outflows at the beginning sf the year, chinese household have a $50,000 quoted that resets in january. we will see a lot of households hungry for dollars at the beginning of the year. direction,the other china has taken measures to stabilize the currency, put up barriers. our view is they have probably done enough. the long-term story remains negative, but in the

we have a more official communication from pboc, from the government on the china's yuan policy.this helped to make authorities and tensions more predictable and well-known to the markets. i think that helps with the conflict. we have a quick check of the latest business headlines. two of india's largest technology services companies are warning employs about the threat of political and economic conflict around the world. the chick does the chief executive is -- asia's biggest providers of i.t. services have lost business as customers rain and spending. in spending. $249 available october, but it is now expanding its horizon. they're trying to find a way it -- expanding to europe with at least five x in 2015. capital flow after deliveries fell shy. totaled just over 76,000 for the whole year. has left has been aiming for at least 80,000. it has been trying to maintain sales of the model s and the model x ahead of the less expensive model three, which will not begin production until late this year. coming up, one of china's biggest search engines is considering a u.s. share sale.

is that going to get a bit of agreement to the pboc now. griever to the pboc now? of not giving a forecast but looking at a consensus, that it will drop limit $3 trillion. the pboc's inhan regards to capital controls? what are they doing that could reduce demand for the r&b or reduce the amount of money being seen. is that hasntrance money offshore should bring a back into china. of u.s. dollars, it is not a bad position to be. a bad position, but given were china stands right -- where china stands right now and everything going on in financial markets, do think we could see china being more focused on maintaining stability without hampering the reforms right we have seen recently? >> stability is the mantra within central government, in terms they do things very long-term, planned and orchestrated as well, i think they're starting point is looking at history. back in 2007, 2008 when all those capital inflows came in. they include that increased climate reserves in the bank. -- increased credit reserves in the bank. looking at what the market does, we look at next

that personifies -- pboc throwing mud at the wall trying to stop the yuan.y have to stop transactions unless they can balance the books. dollar-yuan seems to have paul. anna: pausing for thought toward the end of the week. yesterday we saw dollar weakness coming through with donald trump --manus: it was a shakedown wasn't it? anna: moore to be expecting too much if we thought he is going to lay out policy. 20 of talk about russia. what we have been over the last couple of hours. down by .1%. the futures in there for you as well suggesting we could be stronger at the start of the trading day in the united states. manus: bond markets, interesting , moves 2.37. what does it take to move those yields higher again in the united states of america? that is the debates. we have pulled back a little bit. and bondng auctions yields, 30 year -- 30 year wants demand was not insatiable. just taking down. japan, what will the bank of japan -- japan due to defend their position? anna: let's get caught up on the first word news. turn exports remain subdued as weak global de

the pboc thinks the the pboc i don't think thinks the way it used to. manus: we have put some of the components together. here are some of the elements. oil and iron ore. oil up 52 per -- $52. at what point does the bias from the pboc shift? when do we begin to talk about iris? -- bia? global pmiook at the manufacturing, they are hitting nearly three-year highs. and that implies that this increase in the commodity prices is likely to be maintained. thisit tells me is that reflation story we are talking about over the past four or five months does have a significant backing from aggregate demand. now, it may-- right seem quite premature to talk about tightening in china but if things pan out the way they seem -- i think it is conceivable that we will start talking about potential tightening later this year. anna: we will have to watch the cpi number. we will keep an eye on that. thank you very much. program -- the manus: taking brexit to berlin. philip hammond embarks on a diplomatic push ahead of formal talks. latest addition to team trump. his son-in-l

one source says pboc may punish noncompliance lenders by hiking insurance cost.f its recovery program. it is planning to sell 20-30% to multiple investors. not including a partner western digital. toshiba may withdraw from

the pboc strengthening the fixing since the most since 2005.back thursday, and this expected to some relief to a currency plagued by capital outflows. s&p global ratings, tell us what you are making of it from your perspective here. obviously chinese corporate's have done a lot cross-border. we estimate 6% or 7% of that is in foreign borrowing, mainly the the dollar, so every time dollar strengthens, for example, last year, we mentioned the renminbi has gone down 6% or 7% against the dollar, so working out the math, that is 50 basis points in terms of additional costs for chinese corporate's. you did mention people speculating about the renminbi depreciating further. some of these are corporates fearing it could depreciate , soher, buying u.s. dollars causing the depreciation they were trying to avoid. unfortunately this is contributing to the currency situation. rishaad: so what does that tell us about the state of chinese corporates? obviously while the bond market and the banking market has become much more developed, still in terms of compa

the pboc is said to have ordered banks to strictly control new loans.includes a request from the pboc for banks to keep increases in new mortgage lending in particular, two in the first quarter, below the increase we saw in the fourth quarter. >> after months of negotiation, johnson & johnson one over actelion. they are buying the drugmaker for $30 billion. they will help johnson & johnson come a leader in blood pressure medicine. what made the owners of actelion go with johnson & johnson? how did they structure the deal? >> the answer is in the structure of the deal. everybody had been openly talking about the fact that the was reticent in giving up control of the company, and i think this is the best deal they could've put together in terms of the structure. he gets to run actelion two, whenever you want to call it, and johnson & johnson gets the assets it wants in terms of bringing in near-term increase in sales growth. >> a bank settled on dublin for its main head -- hub in the eu. according to people with knowledge of the decision, choosing dublin

composite up .6%, a lot of focus is on where the chinese currency goes as it extends its losses and the pbocowers their fixing by the most in six months. , on ax 200 gaining .9% tear, gaining every single day this year. japan on holiday, coming of age day in japan, but the japanese yen right now losing .3% against the dollar. yousef: in this part of the world, two hours away from the opening of the emirates market. this is what happened in the last trading day. you saw broadly positive picture, dubai up, insurance stocks in focus and a theme throughout the program, down side against petro chem. egypt,record highs in foreign investors taking a breather. theh what is happening on turkish lira, still close to record lows as the government struggles with economic reforms and politically as well. check in now with first word headlines from around the world. an agreement as early to sell 80% of operations in china for mcdonald's. citigroup will take a 52%, and oflyle 28%, 20 years franchise rights, valuing the business at $2 billion. will retain a 20% stake. to a new record after posting its best

pboc plugging the gaps as capital continues to flow out of financial systems.ave a terminal chart that shows exactly what is going on. we are talking about the median term lending facility and that morelance increased by than $100 billion in the months of december alone. that is the biggest jump since we start to get details about this facility back in december 2014, and it really is continuing. growing pressures as a result of these outflows and of course, the youan. it also highlights the contortions of the pboc having to get itself into now as it is on the one hand seeking to maintain funding like this to continue to support the financial system, but on the other hand, tries to tackle these risks we have heard so much about, tied to these high levels of corporate debt. it is trying to move to a more strongerolicy in the economic picture. anchor: we know beijing is taking this on foreign exchange transaction. what impact is that going to have, what impact is that having? tom: that's right, so we have seen more capital controls put in place. the latest researc

inve seen the pboc step several times over the past year, year and a half or so.ey have succeeded in doing, even if they intervened a little bit, they succeeded in guiding the market. we've seen in december, november, the pboc officials, chinese officials, talking up the currency. we've seen support for the currency here and there. handled widespread ethics on the markets so to speak. this time, there is a lot of weakening against the yuan. the pboc cannot control what the dollar does. at this time, it is more a dollar story. if trump does make good on his threats to do whatever he's said he will do, brand china a currency manipulator, impose tariffs on chinese exports to the u.s., that could spell a lot of trouble. i think people are concerned about what will happen after he takes over. francine: thank you so much, robin ganguly, asia emerging markets editor. let's get more with steven barrow and mark burgess. i'm not sure whether it is a trade war story or whether it is all about the yuan. can the pboc stem the decline? it can, if push comes to shove. we've got

that's what a pboc official told state media.ter they require the country's banks to report overseas transfers of over 50,000. the pboc says the new measure are designed to prehaven't mven laundering. and really had had a bruising year against the u.s. dollar. the big question is how is the pboc going to react to that in the face of increasing dollar strength under president trump? >> and when you look that devergence, that was raising alarm bells for some but the government has been very quick to say nothing to worry about on this one. and when we talk china, we often think about the crucial reports for apple. it is set to cut production of an iphone by 10%. that's according to a nikkei report. the article says accumulated inventory was the main reason for the cuts. the semiconductor are trading lower on the news. we won't get a print on the apple stock state wide today. these tend to rattle investors slightly. and it was interesting because yes, they are cutting down the number of iphone 7s and demand exceeded their expectation

we have had a pboc advisor proposing a lower growth target. forking of the challenges the chinese, we have the federal reserve and what happens with the dollar, but the second would be what donald trump does and how that will play out in terms of the growth target. what is the latest thinking domestically on the growth target? been moree has discussion of that lately. our own reporting has indicated that the president may be open goallaxing the five-year to keep gdp growth above an average of 6.5% through 2000 -- through 2020. coincides with policymakers taking a hard look on how to manage risks and not going to too much of a debt fueled expansion. there was a note yes -- last is onhat said that china the way to getting rid of growth targets in the next couple of years. this commentary over the weekend from the pboc advisor to be right in line with that and confirm there may be some thinking along those lines that targets are not the the all to end all or the economy. targets, targets, targets. thank you so much. joining us on site is the euro

the pboc is said to have indicated it may punish banks that don't comply.he idea that china is the world's driving economic power is unusual. in exclusive interview, weighing in on the world's second-largest economy. they built a system that's going to need to restructure. it happens to be metastasizing right when trump gets elected. what is happening in china is going to happen on its own, on top of the fact that trump will get a better deal for the united states. those things are going to cause profound change in china. manus: metastasizing reckless behavior? .ascinating use of language is all going to come crashing together. >> it is a bit of a dark cloud potentially if handled wrongly. but let's take a step back, even before mr. trump, china has a big dilemma. guess what the magic number is, close to 7%. it has an overheating housing sector in particular. when that happens through the shadow banks, problems occur. the interesting flip side of protectionism is potentially china addressing its slower growth through pushing down the renminbi. the irony is

>> i am encouraged i the very positive comments on pboc --aiib .ry senior officials in the u.s. government. i heard about the comments. both democrats and republicans who served in various senior positions in the u.s. government. think the consensus is forming in washington that it or atmistake to ignore least turn a skeptical eye to the aiib? a i don't regard this as mistake. mistake is something you did and cannot take back. we have 30 countries waiting to join. they did not become members for various reasons. you can not tell me they made a mistake. how concerned should we be of a potential china-u.s. trade war, and what steps will you take if trump goes ahead with some of the policies he is talking about on the campaign trail. >> i think it is important for china and the united states to work together. ramy: how concerned are you about that relationship? >> i am by nature an optimist. sense china every opened its door in 1980, i was involved in the bilateral dialogues between u.s. and china, and i and the witness to a huge amount of benefit acc

depend more on what trump will do and what the dollar index will do, but that said, don't see the pbocanyone in china willing to let uan tumble and create panic. that would create immense financial risk. while the chinese policymakers may be happy to let it decline to an extent, i'm not sure they will let it fall rapidly at any point. anna: there's more of the thisrsation, do you see move move seen in a chinese gain on the biggest record going back to 2010? ?s it just a short squeeze or is it something that has some legs? this has got positioning written all over it. in december we were hearing more and more about this idea of it breaking seven, and i think there was a substantial long dollar position that has been built up. we all remember how 2016 kicked off. that was the turmoil in china related to fed expectations 2017.tightening in in that sense, this was very much the authorities stepping in at an opportune moment when the dollar generally has started to correct a little bit and it's a reinforcement move. it doesn't make sense, the idea weakenina would let cny to make trump look

what was interesting was the injection of money from the pboc .he equity markets , declines across the hang seng, 10 points above 23,000. morgan stanley out with a note, saying this year could be the first time that we see property prices fall in hong kong since 2008. haveuld underscore that we heard that every single year for the past three or so years. this year, they see residential prices dropping 5%, retail rentals also falling 5%. composite, 3100. money market rates, 250 billion. us 250 are telling billion, rates on the way down across the board. 2.16, that being said let's change the graphic. actually lower after these injections, and slowly creeps up, or at least that is what we have seen this week, so five day chart, friday, monday, tuesday, wednesday. there is thursday, lower at 2.25, then we start to climb up again. markets continue to climb, they might have to inject more. obviously there are other our meditations -- permanent haitians rishaad: the center of the wall street session, citigroup and goldman sachs making headlines again. b

the pboc strengthen the yuan parity, offshore yuan sticking below the level. set for the biggest gain since september, leading the charge in asia. , the philippine peso jumping to the strongest level and seven weeks, the ringgit coming off a 1998 low yesterday, and the rupiah joining that advance. the aussie dollar is looking at a third day higher, but could be vulnerable to testing a maiy low. 6,do have data on january but aussie weakness of boone of sorts. aussie services index, 57.7, the highest in a decade. gold set for a third day of gains. halt its advance, slightly lower as we did see an expectation that u.s. supplies are expected to fall and opec cuts underway. rishaad: thank you very much indeed. there.kamaruddin let's get back to those caixin numbers coming through. 53.5, this is a composite pmi that includes all sectors of the economy, services and manufacturing. this comes after the record high for the caixin manufacturing pmi on tuesday, so manufacturing services have always been strong. the services number for december comes in at 53.4 at 53.1 in

there pboc operations, are some changes. they talk about prudence and neutral policy, but the neutral is more in the sense of the traditional policies like the policy rate, credit growth has been stable, but if you look at the macro financials, money markets, the interest rate has moving up, bond yields moving up , and tightening measures in the last 3-4 months. these are on the condition that the growth outlook is stable in the near term. will today's data, they continue to tighten on this macro financials side. >> you typed, but there's no way they will relent when it comes to fiscal stimulus and investment and investment in infrastructure. >> fiscal policy was expansive last year. the fiscal deficit number increased significantly in 2016. that is one reason why infrastructure investment is so .trong this will continue in 2017, although we believe to a lesser extent. on the policy side, credit growth will be stable. >> right, but there are a couple of things. we have u.s.-china relations, how do they of all? -- they evolve

another part of that is if you remember, the pboc kind of started this liquidity crunch. also a bit concern about the situation. who is injecting the most cash. ,he most on record last month the pboc itself wants the situation to get a bit better. betty: can we expect the relief to continue? reporter: there is still some factors hanging over the markets. there is chinese new year coming up. it actually falls a bit earlier than usual, at the end of january. the other point here is also the yen. the depreciation pressure is mounting. april are worried there will be more capital outflows. thing is that if the u.n.'s week, people are worried the authorities might want to keep rates high. betty: much more ahead. president-elect donald trump plans to boost the economy with tax cuts and influencing the fed rates decision last month. we have the latest on the fed minutes. what did you think of them? i was just speaking to bloomberg radio in hong kong. these minutes a very banal. i say they are always very banal. the fed spends weeks writing these minutes. they are very precise. i

the pboc not responding to comments, but this being reported by reuters.having a huge impact on dollar-yuan. just trimming back some of the gains. it is a davos day. this is bloomberg. ♪ guy: you are watching bloomberg markets. this is the european open. i'm guy johnson. i'm in london. matt miller is in berlin. erik schatzker joining us from davos. what are we watching? the trump era begins. the president-elect takes office at 5:00 p.m. u.k. time. what will the next four years old? treasury secretary nominee steven mnuchin takes on wall street, weighing the return of a law that split the banks. and china's

the pboc is set to stop processing crop order you want payments unless inflows match outflows. they supply both companies and individual transactions. individuals have been boosting transaction, leaving china in the local currency. shares are looking like this in mumbai. at 37.1me came in billion, that was 4% higher than analysts forecast. it top its 2017 growth forecast. global news. 24 hours a day. powered by more than 2600 journalists and analysts. in more than 120 countries. you are watching bloomberg. let's get you a check of the markets. hong kong and china are currently closed for lunch. here's how they are china trading -- trading for the morning session. content index of .5%. hang seng index up .5%. welcome to the best of bloomberg markets middle east. you're the best of stories driving markets in the middle east. united arab emirates says oil around $50 a barrel will not cut it. we are in abu dhabi for the update on the mini opec meeting. there is no let off for turkey's beleaguered currency. we look at how the political quagmire, central bank in action, and higher th

one source says pboc may punish noncompliance lenders by hiking insurance cost. stake in part of its recovery program. it is planning to sell 20-30% to multiple investors. not including a partner western digital. toshiba may withdraw from construction while keeping designs and delivery. china's a chin a group has been shopping again. one of its units have outbid 18 developments. holdings.the property aging a one with the bid of 709 million u.s. dollars. global news 24 hours a date journalists in more than 120 countries. let's get a check of the markets. china, allg and markets are looking positive. ♪ >> this is "bloomberg technology" the tech earning season heats up . the results ahead as the dow clocks in above 20,000. , the ceoco swoops in tells us how the $3.7 billion firstition terminated the major tech ipo of 2017. finally, lucky money turns digital. shenzhen to show you how that -- how the chinese tech giant is gearing up for the lunar new year. the earnings parade continues. ebay reporting results after the close. the chipmaker reporting sales that came in

the pboc denied reports that many reached seven for the dollar.ink wes sooner than later before the chinese new year. is we would expect ongoing gradual depreciation in currency. the only tool the pboc can use to effectively stabilize the chinese economy. underlying the economy. chaos inn'expect any earlier instances in yuan depreciation. though we have seen more resilience lately. >> one is if you look at the electoral exchange. that is clearly weakening. have at is whether you big drop-off like january. if you look at the currency stable it has been very since october and around 95, gradually going higher. i will show you the news before the year ends. 13 to 24 currencies. they're keeping the currency stable against the basket. that is what it is. the economy of it is against the u.s. dollar. that is still a weaker path for the chinese currency. >> despite beijing emphasizing that. thank you for joining us. 2016 made a few headlines with brexit and the election of donald trump. we will ask what 2017 may bring. this is bloomberg. ♪ shery: this is

the pboc fixing the yuan at 6.9234.pening with consumer prices -- rishaad: thank you. let's get to china's reflation story. the factory game prices climbing. steve is with me. these latest inflation numbers -- we had 54 months of ppi be a negative. suddenly, this is amazing. steve: hello, world. this will eventually factor into cpi down the line as they pass it along. or five months ago, we had deflation at the factory gate. now the fourth straight month of inflation and we're expecting 4.6% rise in december. we had a 5.5% rise. it was 3.3% the previous month. there is a lot of reasons why. commodity prices are up. there is reduced slack. a lot of the overcapacity has been reduced and the weaker yuan. more expensive. look at these numbers. we can run some video of some old factory footage we have while i run through these numbers. rishaad: those are new factories. steve: robots, no longer people. producer goods, mining goods up 21% in december. raw materials up 9.8%. manufacturing producer goods up 5.1%. a couple of mon

that is what the pboc is concerned about., we are watching inflation, we are watching the crowded trade on rates. what is another thing people are not paying enough attention to that they will be at the start of this year? >> i think growth is picking up and people are behind the curve about how much it is picking up. the data has been exceptionally strong everywhere in the world. that growth pickup is bigger than people think. another thing happening in the moment i needed to be reminded -- once central banks step away from markets, the market can do some funny things. the dollar can probably fall several percentage points and still be in the long-term uptrend. everyone is saying the fundamentals are good for the dollar. i would say once the central banks step away, don't rush to buy too quickly. the dollar-yen, it is risen to 101.20. dollar-yen can follow another 4.5% and still they on a long uptrend. was our correspondent in singapore. the priceup, what is of oil saying about 2017. this is bloomberg. ♪ scarlet: i am scarle

it looks like the pboc is doing every thing it can to keep cash in the hands of its consumers.: the biggest human migration. amazing some of the numbers that is happening around the lunar new year. easyjet revenues did ok but effectively what we got here is a warning on fuel. a warning on sterling. what do we make of this? know sterling was not looking promising. with the airlines obviously most of their fuel and currency is hedged. only so much of that is so. percentically the other that is really causing them the nightmare this morning. guy: i hope i can get this to work. what happened with easyjet? a really big hit the run of the brexit vote. rallying since then. plus the moving averages. did the market over do it initially? are we starting to get some of the worst fears confirmed? compare and contrast where the market has been going in terms of direction with easyjet. benjamin: it contrasts to the other airlines. if you look at the original drop a lot you can see that it continues to decline into october. the recovery we have seen has not brought as back up the odd levels -

it's a delicate balancing act for policymakers in the pboc. tom mackenzie joining us there in beijing. i guess to still with us here on set. sensech concern do you among the chinese policymakers if they are coming up with these contingency plans, they've rules andnaldo he's for what purpose of a transferring money into other currencies? how much panic are you sensing? >> i think it has been around for most of last year. yuan,seen the move in the they've only managed to slow down the rate of decline. as your reporter mentioned, many companies are quite logically not converting their dollars back into yuan. why would you if you think the currency is going to fall? you will get a better rate tomorrow. is that whenicture you have an economy that's becoming more market oriented, it becomes more difficult over time for a central authority to control things. the chinese government are not the only ones who will find this. one thing is to consider a quick devaluation. the fx reserves declining as you can see here. treasury is the lowest in six years.

let us talk about what is happening with the pboc. why this decision to lower the rrr?chinese new year holiday is coming up next week. the biggest holiday of the year. typically, the chinese focusities make sure to on liquidity. it does not necessarily mean there is a u-turn five the central bank on easing monetary policy because let us not forget they are happy where the economy is. -- they said they are in neutral territory. is if anything we will be looking at is if anything wel be looking at tightening of the monetary policy at some point this year. this move today is more about the excitement over the chinese new year rather than the pboc stepping in to stimulate the economy. matt: it is not a panic or a rescue, it is really to fund cash needs for the lunar new year, a seasonal phenomenon. growthtalk about the gdp number we saw. 6.8%. it is kind of punchy. what is driving that kind of growth? a very good result for them if you consider where we were a year ago. you talk about a hard landing in china. along the way we had a property issue, troubles with the yuan and

the pboc pumps record funds into the financial system before the lunar new year. samsung hangs in the balance. the company's heir apparent has just left court as he awaits the court's decision on his possible arrest. he's being investigated on bribery. brexit hits hsbc. the ceo said some bankers may need to move out of london. manus: activities covered specifically by european legislation will need to move. that's about 20% of the revenue. ipo, thering up for an all tax will be cut to lower investors in all options are on the table when it comes to the listing. >> looking at new york, looking ,t hong kong, london, the u.k. all markets are being looked at. >> and the rise of populism. our debate on the crisis of the middle class. that is live on bloomberg at 8:00 a.m.. ♪ anna: a warm welcome to "bloomberg daybreak: europe." , i'm annain london edwards. manus: i manus cranny. is at the world economic forum. looking forward to banking with the big thing, hsbc, we will hear more from them. that will be a big theme in the next 30 minutes as well. francine: we will spea

the pboc doesn't necessarily have to follow the fixing models.omorrow, what will happen is very difficult to say. is lastingnk this even maybe until the end of next week or so. guy: we're going to leave it there. thank you very much indeed for all joining in. mark cudmore, robin ganguly, jonathan bell. we are minutes away from the market open. up next, we going to take a look at today's movers, which could include persimmon, the housebuilder, which has seen a rise in revenue. that story next. this is bloomberg. ♪ guy: 7:53 in london, 8:53 in frankfurt. minutes away from the equity market open. let's talk about the stocks we are watching. persimmon. the stock collapsed post-brexit. the housing market does seem to be fairly firm at the moment. the company is talking about a rise in completions, average selling prices being of 4%, the forward sales also in terms of value up very strongly. the housing market is certainly still with us, despite the predictions of a great deal of bleakness, and it does look as if the government is going to provide some

on sunday, the pboc adding to record cash injections ahead of the lunar new year.let's check in on how chinese markets are shaping up this morning. the shanghai composite and the kong, gains in hong of over .1% and shanghai, rising for a second day, telcos and consumer staples leading the rise. adding .3% so far with industrials leading this market higher, snapping a two day drop. rishaad: right, let's get you to breaking news that came through from the top of the hour, samsung has confirmed that faulty batteries did cause some of its note seven models burst into flames. what has samsung been saying since then? it is about the wrong size battery. rosalind: that's correct. samsung has been saying that regularly sized batteries caused overheating and said the separation film was too thin in the batteries, which caused the fires. the original laterally was made ofsamsung sdr, an affiliate samsung electronics. the problem was that the replacement batteries were also uplty because of a ramped production to get those to replace the faulty ones. those replacement batterie

what people are expecting going forward is whether the pboc will continue this crackdown, not just on after purchasing of bitcoin and usage of the crypto currency. a lot of people think that if they did so, they could crack down on the companies, bent it is hard to prohibit people from buying bitcoin. also, china risks the opportunity of the industry, the technology, and the next tech boom that might come out of this industry, so regulators have to take care of and take caution on whether they want to step into this field once they start regulating. people will expect everything that happens in the sector as their responsibility, so that is something regulators across the world have to take into consideration. thank you. talking about bitcoin here. that is it for us on "daybreak asia". when you watching? rishaad: when you look at hedge funds, under pressure at the moment. we will be looking at them with michael price. brexitthat, how does play out with theresa may expected to speak in london about a hardg brexit and a brand-new relationship with european neighbors and out lies. -- and

six was expected, it is the injection of cash that has come so far from the best this week in the pbocnalking about 460 between seven-day reverse repos hundred 75 billion on monday. -- 175 billion on monday. let's have a look at the money market rates overnight. we are down to 2.16%. we are nearing chinese new year. cash might be quite tight. it's a seasonality factor. i think that's the best we can describe it. 2.16% is your overnight rate. equity market in hong kong half of 1%. we are seeing broad-based declines across the region. a hundred on the upside, just below 23,000. it looks to be a broad-based rally with the exception early on. the philippines just opening up at the moment. 7100 at your level. we are still seeing broad-based declines, but we have come up most of the day. i showed you the dollar-yen bucking the trend. down to't look to be single stop, because just about every stock is on the way up there. rishaad: getting to these home prices out of china. prices declining in 46 cities as opposed to 55 in november. some of the headline figures here, beijing and shanghai on a

comes to china, s&p says the pboc is faced with uncomfortable choices as it rattles pressure on its reserves -- battles pressure on its reserves. xp want stability. they have 3 trillion and reserves, although they used to have 4.2. if they tighten the controls, they will never get to the point where the you want is seen as a global reserve currency. they will have to make an isfortable -- the yu seen as a global reserve currency. they will have to make uncomfortable choices. >> xi jinping steps into the spotlight when he addresses the world economic forum. he will be the first chinese head of state to address the gathering. great to see you again. xi jinping trying to frame himself as a championship -- as a champion of free trade. >> this is significant. time when the rhetoric coming out of the u.s. has changed sharply, with trump preaching trade tariffs. here, we have xi jinping bringing the biggest chinese allegation to davos. issues like globalization, and have plain sailing. there is skepticism around trading policy. you have to think, you have to have a pretty willing audience willing t

expect a strong adjustment in that fix coming from the pboc coming out in 45 minutes.won, one-month high. the ringgit and the aussie dollar at these levels. david.thanks, netflix is building a world of binge watchers. me, too. it is doubling down on original shows while expanding its international footprint. they will release fourth-quarter results on wednesday in the u.s. here's a look at netflix by the numbers. >> self-confessed binge watchers here. netflix turn the media on its shows.ith original the strategy comes at a huge cost. it must guarantee it is sustainable in the face of competition by the likes of amazon. for net -- for netflix, it is about subscriber numbers. they added over three point 5 million streaming customers, topping estimates in the u.s. and internationally. that brings the subscribers to 47 million in the states and 39 million around the world. netflix is turning to international markets for growth, 40% of sales in the third quarter are generated overseas versus just 16% two years ago. on the chart, you can see how the global growth rate, the o

yvonne: the focus is on china with the pboc, as well as inflation data.. ♪ ♪ rishaad: midday in sydney, 8:00 in new york, i am coming to you from the asia headquarters in hong kong. this is "bloomberg markets." changes at yahoo! marissa mayer is quitting the board. brings brick-and-mortar, with hong kong listed. jack

pboc setting that fix the strongest since november.ome analysts giving it to donald trump as he talks more protectionism, and they are going the other way, even though analysts were calling for the yuan to weaken further against the dollar. the hang seng up by .3%, some solid reports from energy players, and materials stocks lifting the asx 200. as you mentioned, we are still seeing weakness coming through from the nikkei as the yen fairly unchanged. a great map behind you, thank you for that. let's check in on first word headlines. sophie kamaruddin has the story. rex tillerson is almost certain to become secretary of state as the foreign relations committee gave its approval and sent his nomination to the full senate. marco rubio says he will now offer his backing despite questioning tillerson's links to russia when he was exxon mobil ceo. the senate voting on mike pompeo as cia director. he has now been officially confirmed. steven mnuchin says he will examine trade relations with china and "assess the damage of china's practice int

. >> the pboc defending that $3 line?ion >> well, finally china only has $3 trillion. been talking about this nefficiency of four trillion or reserve and ridiculous developing country financing -- [inaudible] down.ow it's i think from long run trend this is a good news. measures ect further to contain the capital outflows? >> i think the market is respond, so from that point of view, i don't they will go further on that. >> china's reinflation stories gets a lift again. cpi study about producer prices overshooting. >> it was just a few months ago like yesterday we were talking about continued persistent deflation at the now four te but straight months of inflation, faster than expected as well. he main reasons, commodities rallied. oil and iron ore and other commodities are up. don't make too much of these numbers. grabbing eadline higher expectations, but keep in mind a year ago prices were down same.ost the so over a two-year period actually prices are unchanged, so what looks like a big re-flation is not the beginning rising inflation, inflation, rising price pressu

concerns about chinese authorities and how they may tighten their oversight of the crypto currency, the pboce shanghai branch and onlineent conducted an exchan e bitcoin exchange. it hit an all-time high last week as it was seen as a safe haven. a former director jailed for assing inside information to plumber for cash and free work. stephen mcclatchy pleading guilty to offering merger tips used to make 10 illegal trades worth around $55,000. the plumber pleaded guilty and work with prosecutors against stephen mcclatchy. right, singapore has jailed its first foreigner on charges linked to investigations into .ilitias investment fund 1mdb this wish national is the fifth person to be convicted, amounting to more than $1 billion. we thought this clampdown was going to be a short brief one, but it has had some legs, hasn't it? absolutely. singapore wants to take a strong stand, to take action to theerve its reputation as least corrupt nation in asia. is swiss national convicted jens fred sturzenegger, a branch manager of falcon bank closed down since the event. charges, including failure to obse

having a look at the offshore down.eimibi it is the pboc, strengthening the yuan the most since 2005.ll have more from london at the top of the hour here on bloomberg television. this is bloomberg. caroline: this is "bloomberg technology." back to the top story of the day. are intelligence chiefs standing firm that russian governments officials hacked during the u.s. campaign. james klapper and michael rodgers said the intelligence community's confidence is "ve ry high." meantime, rudy giuliani announced thursday his consulting firm is partnering with blackberry on cyber security software. spoke ofhn chen earlier to the cyber hearing in washington. are not hypotheticals good things to respond to. -- look, hypotheticals are not good things to respond to. cyber intrusion is the fastest-growing form of crime. the director of the fbi, james comey, says there are two types of companies in america. those that have been hacked and know it and those that don't know it. this is becoming ubiquitous. the reason companies and countries need us is because we can come in and tell you whether you ha

with the chinese markets, we saw a nice rally in shanghai as the pboc has said they're going to injectporary liquidity for 28 days to avoid any sort of crash crunch during the lunar new year holidays which starts this friday. back to you. >>> good to see you. thank you very much. foxconn became the latest tech term to announce plans to up its building in the u.s. according to a report from the nikkei. it would be a joint venture with apple and create up to 50,000 jobs. >>> qualcomm instigated action over the chip maker. they accuse apple of charging too much for patents and with holding nearly $1 billion in rebaits. however it welcomes the opportunity to disprove the claims in court. >>> now phillips lighting sales and net income both missed expectations in the fourth quarter. they remain committed to achieving positive comparable sales growth this year. it's projecting the margin to pick up by between 50 and 100 bases points in 2017. shares are higher by around 5%. >>> and esentra is trading at the bottom this morning. that's after they would meet only the lower end of its forecast. c

the didi oc has ordered banks to strictly control thanks i keep increases in new mortgage pboc orderedsister to control -- has stashed johnson to be thelp j&j forefront in medicine. owners to gothe with j&j? how did they structure the deal and the end? >> the answer is in the structure of the deal. everybody had been openly talking about the ceo was reticent and giving up control of the company, and this is the best of the critical together in terms of the structure. he needs -- j&j gets the assets it wanted. barclays bank has settled on doubling its main hub. it will move 150 of its staff. choosing dublin as a hub for the european union is one thing. >> barclays has never been on the end of some of the apocalyptic warnings of the demise of london after brexit. that with the plan to hire and moved to dublin. what we can see as cities emerging as winners -- we have dublin, number of banks looking to go there, and we have frankfurt and lloyds looking to in other cities. london is losing a bit, but this is not quite the end of your's financial center yet. ♪ ♪ welcome back to "bloomberg be

the pboc pumps record funds into the financial system before the lunar new year.n the balance. the company's heir apparent has just left court as he awaits the court's decision on his possible arrest. he's being investigated on bribery.

the pboc is said to have asked banks to stop processing cross-border yuan payments unless inflows matchup flows. authorities have been boosting measures to limit a record amount of money leaving china in local currency. shares are looking like this in mumbai, falling 2.5% after its earnings topped estimates. although net income came in at 37.1 billion rupees, 4% higher than analysts forecast, we are seeing it falling right now as it did cut its 2017 sales growth in dollar terms by up to 7.6%. a day,news 24 hours powered by more than 2600 journalists in more than 120 is bloomberg.s let's get you a check of the markets. afternoon trading just getting underway in hong kong and china. this is bloomberg. ♪ caroline: i'm caroline hyde. this is "bloomberg technology." amazon lining up job offers for u.s. workers. plus, the $85 billion dollar elephant in the room. at&t objects the with the president-elect at trump tyler, but the merger with time warner never came up. and the next let's -- and the next let's blueprint. -- netflix blueprint. brazil becomes the latest target in a globally ambitious