stephen engle, bloomberg news.as stephen engle reporting on china's first vr themepark. it looks like they are killing space zombies pretty passionately. ramy: i remember the days when i would go to the shopping mall and put $.25 in and play pac-man. the children of the now and the future totally have something so awesome and so amazing. i definitely want to get into it but i am curious about the price, especially affordability both in china and the u.s. haidi: i am just happy to have super mario on my iphone. when it comes to these things. ramy: we are in the same bandwagon. let's continue on because we have a couple of hours ahead for us. that is it for daybreak australia, but plenty more ahead for daybreak asia. we will be looking at into the future. we will be speaking to old mutual global investors about his outlook for the brand-new year. haidi: golf course, crucial to this year as every other year, china, the outlook for china. we will be hearing from head of china economics, larry hu, at 7 p.m. new york tim

our chief north asia correspondent stephen engle take a look at how this tech upstart backed by formervice president al gore is disrupting a gas entrenched market. stephen: locals call this the school -- the scooter waterfall. noisy, obnoxious, albeit necessary mode of transport. here's the thing -- taiwan wants motors by 2021. this company is called by some the tesla scooters. for about 10 years, taiwan's government has been pushing for an electric scooter to turn this very dirty mode of transportation into cleaner transportation. throughout the 10 years, it was extremely unsuccessful until we came along. equivalent --he it can go zero to 50 kilometers an hour in just four to five seconds. top speed is 100 kilometers per hour with a 110 salon arrange. ,hen the batteries are zapped just swap them off at a kiosk. >> will change the game ultimately was the way we fuel the vehicle. pop it in. by late or not there's anything wrong with the vehicle. talk to the server, program the new batteries. it takes minutes, not hours. stephen: another green tech company not spending time that's not wa

our chief north asia correspondent stephen engle take s a look at how this tech upstart backed by formervice president al gore is disrupting a gas entrenched market. stephen: locals call this the scooter waterfall. a daily torrent in taipei of taiwan's nearly 14 million motorized scooters. obnoxious albeit , necessary mode of transport. here's the thing -- taiwan wants to ban oil motors by 2021. -- 2025. that is a long way out, but one start up is getting a head start. this company is called by some the tesla scooters. stylish, cloud connected, and juiced by and panasonic rechargeable battery. >> for about 10 years, taiwan's government has been pushing for an electric scooter to turn this very dirty mode of transportation into cleaner transportation. throughout the 10 years, it was extremely unsuccessful until we came along. >> it has the equivalent of a 5k engine, and they say it can go zero to 50 kilometers an hour in just four to five seconds. top speed is 100 kilometers per hour with a 110 salon arrange. when the batteries are zapped, just swap them off at a kiosk. 30,000 batteries a

stephen engle has more.e product, from apparel all the way tissues. all the way to fibers from manufacturing, the soles off issues, cotton. you can turn that into different versions. >> is this soundproofing? >> this is architecture soundproofing. is taking off the sound. >> made from nike shoes? >> nike shoes fiber. >> i love this, can you guess what this is? >> this is made from cigarette butts. we turned it into a beautiful architectural material. it feels like travertine. >> countertops? >> yes, for countertops, product display. it can become an ashtray, for example. >> how many cigarette butts is this? >> 2000. cigarettes i have seen. how wasteful a species are we, and how wasteful is taiwan? of countries.oad we are too wasteful. all the consumption going on, now going down. especially with all the packaging, all the disposable goods we are creating, all the fast fashion and how fast we are changing. we have to envision that moore trashes coming. but we must -- we have to envision that more trash is com

joining us is bloomberg's stephen engle. detente?nt -- stephen: it is definitely a step in the right direction given all the stable -- saber rattling we have seen between the united states and the north over the last year or so. obviously, since donald trump took over as president of the united states. it is a step in the right direction to get the north and south korean's across the table. in the dmz,e bridge about five miles from here, is where they have been holding daylong talks. there was a lot to gain on both sides. the north would obviously like to participate in the upcoming winter olympics here in south korea one month from today. didn't want the specter of war hanging over winterwo weeks or so of festivities, which should be a celebration of brotherhood and peace on earth. they both at least achieved those goals today. however, going by -- beyond the olympic games is a big question, whether the tension will be ratcheted up again when the u.s. and south korea maintain drills in april. matt: does this give the u.s. an in to s

we are off to korea where we speak to stephen engle's.earnings coming up, and of course brexit with the cabinet reshuffle that was not quite as genius as expected. tom: i sent michael wolff to write on it. i have no idea what happened. david merrill will stop by and a couple of hours. i have no idea what prime minister may did yesterday. francine: this was a show of then from theresa may, and she basically tells all the ministers to come and see her and two say, no, and one and's up resigning. -- ends up resigning. tom: are the cats ok? ok.cine: the cats are still let's get to the bloomberg first word news. taylor: there was an early agreement as north and south korea began their first high-level talks in more than two years. kim jong-un's regime has agreed to send a delegation to the winter games in south korea. the south wants to resume negotiations on removing nuclear weapons from the korean peninsula. tom: taylor riggs, thank you so much. francine, why don't you start our data check? francine: there is a little bit -- there is quite a

heidi: stephen engle. talks should have begun by now.e will get more as developments become available. still ahead, could rising oil prices and tense competition block del ambitions to fly to chinata's -- detlta's ambitions to fly to china? rishaad: we will be talking to david mann. this is bloomberg. ♪ rishaad: we are back with "bloomberg markets." north and south korea are due to begin talks in the dmz. they should have begun at the top of the hour. they will talk about the upcoming olympics, and the nuclear program in north korea. let's bring in the global chief china bank, david mann. the biggest risk to this benign outlook is complacency. tensions geopolitical in north and south korea -- all of this was brushed aside by investors last year. the risk is we won't be able to brush aside these this year as easily as we did last year. it will be particularly difficult in the second half of 2018 because the activity of the major central banks are tightening up. had -- we have been looking at the dollar delta of the major central bank bala

we'll start with stephen engle. >> thanks, frank. well, with regard to the governors that i studied, there are two sort of categories of -- i don't know whether they would be called enemies or perhaps just oppositionists. early in the war john andrew and the radical republicans who were representatives of the various states would probably come to regard lincoln in a frustrating way because the war, as it turns out early on, is a conciliatory war to maintain the border states within the union. and john andrew and israel wash burn in particular become fairly exercised about the slow, slow progression of the war, especially during the fall of 1861. and so these governors begin to find ways to move the administration along to advance the war quickly, in order to end it quickly, to maintain the volunteer spirit that they were struggling with back home. early in the war, i would say that the radical governors were really oppositionists to lincoln's mentality about how to fight the war. and, in fact, andrew and washburn would be among the l

stephen engle has more on this area -- on this. government is vowing to crack down on irrational purchases and the debt loads at these big conglomerates. it is a crackdown. those companies you just mentioned, including hna and also anbang insurance. they are kind of in the vise grip of the regulators and authorities, to sell or dispose of a lot of assets that they have been accumulating. let's start with hna, the parent company of how non-airlines and other ventures. as of the end of june, they had 185.2 billion yuan in short-term debt. the have a short flaw -- shortfall paying off servicing the debt of $2.4 billion funding gap. they are said to be repaying the debt to stave off a liquidity crunch. 80% of this, according to people familiar with what is happening behind the scenes, 80% should be executed by the second quarter of this year. theyfamiliar spent tens of billf dollars gobbling up stakes in companies and properties around the globe, stakes in deutsche bank, hilton. $14.5 billion property investments over the past decade,

bloomberg, stephen engle, about the yuan's standing. >> we had different balance sheets.nly talk for our balance sheet. the middle of last year, we made the decision in the bundesbank, talk about i cannot the amount we will be investing and i cannot talk to about the technicalities, how we will be investing but we have been in touch with our colleagues from the people's bank of china maybe half a year ago about this. the ecb goes first, the right way to do it. other central banks have moved before the ecb, that is also fine. we thought that this would be also right, to be proud of the german currency reserves. amount, but itor is something we decided on and we want to be part of so the fact that, that is included in the sdr basket, and the fact that european central bank has factors.o, were both inclusion your probably have similar concerns the currency is not a free-floating currency. it has restrictions. there are capital controls in germany. do you share these concerns? >> yes we do. nevertheless, we may have to say part of our money to the imf, we need accounts, we ne

thank you so much, stephen engle , in south korea who is monitoring these talks for us today.uch more ahead on daybreak asia. we will discuss the future of health care with a top executive. hear what david redfern has the cigarette president trump's impact on the industry later this hour. yvonne: just ahead, we are joined by the chief equity judge from blackrock. she shares her market views for 2018. this is bloomberg. ♪ yvonne: japanese stocks are coming back online. open and open, close, now open again. nikkei futures are higher by 4/10 of 1%. gainsks like these record we have seen in u.s. stocks, even if it was a mixed session today filter through for optimism in asia. futures showing a higher open. futures showing a higher open. i'm betty liu in new york. thank you for joining us. just to set the scene in what we have seen in january for 2018 -- we really see what looks to be a thest 2017 making way for january we have seen so far in terms of annual returns. we have not seen these kinds of returns in january for some time now. does this set the stage on how the rest of the

stephen engle will be speaking with high-profile guests. : you know, we might talk about it coin, as well. well.ut bitcoin, as we have a full docket, first up, we have the ceo of boys will. we will talk about how 2017 shacked up for the underwriting business. a lot of natural catastrophes in 2017. also, we have to talk about brexit. also, later in the morning, we will talk about the first deputy managing director of the imf for a global economic outlook and where he sees the most financial risk, all of that coming up. ♪ ♪ we're counting down to asia's first major market open this morning, japanese futures looking sharply higher after the big gains we saw on friday here in the u.s., propelled by results from j.p. morgan and the inflation data. this is daybreak asia. the u.s. to year yield talked a key level on friday for the first time since the financial crisis. core inflation accelerated unexpectedly in december, pushing short-term rates above 2%, better than expected data from enough chances of a fed rate hike in march. here with us is nei

emily: joining us now is stephen engle was spent all of last week in taipei.hink the corn check heist situation the rails taiwan's hopes of becoming a cryptocurrency hub? >> it depends on who you ask whether this is good or bad. it could enhance regulation or oversight, but could also put a damper on the innovation that taiwan is trying to achieve. a younger breed of lawmaker trying to facilitate this revolution through that innovation that they passed in december, this whole story and japan blew up just as i was wrapping up my reporting, and i got a lot of messages. they are wondering how this will play out, because keep in mind, the cautionary tale in taiwan is what has happened in china, with the fraud there. japan is looked upon as the model for which to build a cryptocurrency hub in asia. emily: taiwan has a lot of advantages. there is a lot of processing power on the island. how can we see them exploit these advantages, what about bitcoin mining? >> mining is a question that was put up, and the latest results showed a big pop up in revenue that led to th

that was stephen engle, thank you always for that update. report on wednesday that mark zuckerberg has pledged that his company has to do better for society. sarah frier takes a look at the mission ahead. it has been a rough year for facebook. the company's response to russia spreading thickness on its site has spiraled into a full review of the social met -- social networks role in society. >> this is the tip of a large iceberg. >> debating whether it is before your mental health. >> they have unleashed this mine control machine. >> were good for democracy. >> the echo chamber will get worse. >> none of that will harm facebook's financial results. with 40 .2e excited billion in revenue. of 46% from the prior year. most of that revenue comes from mobile advertising. some analysts are concerned about the future. in response to all the criticism about facebook newsfeed, mark zuckerberg has announced a major trump to show more posts family and friends and less from media and brands. it is a move that could potentially lead to less engagement on

he spoke with stephen engle at the asia financial forum. >> some of the predictions before january was be barriers to trade because people would not have met certain requirements, and looking back on january 3, it was a smooth start. there is no indication that there will be less trading by traders outside the eu into products in the eu. >> are you having to battle a perception issue? >> as a regulator there is always the need to emphasize the objectives and what we are trying to achieve. rules and regulations and fly costs. it is important to see the benefits. in this case, it is about investor protection, ray transparency, and more standardization. >> i was bringing up the moody's story a sickly saying mifid ii -- basically saying mifid ii will be credit negative. how do you weigh the downside risks to these beefed up regulation? iiit is clear that mifid with the greater transparency around costs and on the bundling is that it will make it more competitive. that is a preferred direction. lower charges and improve performance of your products. that is not necessarily a negative from a

stephen engle is falling all of the developments from seoul. describe to us how the talks went, as you mentioned early on, it started off promising. >> actually, it started promising. it even started with a joke from the head of the north korean delegation who basically said that the relationship with the and ofas been frozen course, you can see the steam coming from my breath, it is extremely frozen here in the koreas right now, minus nine unders here in seoul but blue skies, that is a plus. but again, the money session was all about the low hanging fruit and that is the olympics and south korea's desire to have games that basically personified intent and that is goodwill and not have the threat of war hanging over the games. so south korea was able to get that by allowing more promising the north koreans -- offering the north koreans to come march with us and bring your athletes, bring a high-level delegation, the north koreans, this video the games as a korean of the games, not just in -- not just south korean games. so there was goodwill ar

let's get back to the asia financial form where stephen engle is with him.eman you are speaking about is benjamin hung. of north regional ceo asia and china. you are also on the belt and kongcommittee here in hong . love to be discussed about belt and road -- a lot to be discussed about belt and road. we know china can play a financing role, will it? hong kong banks are not policy lenders in china, they don't have to go on board. are they? yes, i think china plays an interesting and strategic role in the space. if you're thinking about this year, you're talking about today , there were interviews with a few people on stage. a great panel. we talked about the world growth is starting to pick up its pace, and underpinning that is china's growth, driving that, and fundamentally, china needs a financial center to help and augment. a lot of things china can offer the shanghai doesn't. isphen: i want to know what the role of hong kong going to be in 10 or 20 years? benjamin: think about it, chinese a huge amount of i would say outbound investment through elton wro

emily: stephen engle from taipei. edition of the "best of bloomberg technology." tune in each day 5:00 p.m. in new york, and remember all asset -- and remember all episodes are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ nejra: the mifid squeeze, moody says europe's new regulations are damaging to asset managers. how credit negative is mifid ii? a deal favorable for the city of london. plus, trump one year on, the differences the president has made towards differences in the american financial sector and what is next. welcome to "bloomberg markets: rules

emily: stephen engle from taipei.this edition of the "best of bloomberg technology." tune in each day 5:00 p.m. in him new york, and remember all episodes are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ >> coming up on "bloomberg best," the week and conversation from the world economic forum in davos. davos leaders in business, economics, politics and finance share their insight and outlook on critical global issues. >> you have markets in global high but we know that these things do not go in a straight line. >> it feels stupid to own cash in this kind of environment. >> i think it is one of the big crimes that we do not talk about. >> high-profile guest addre

emily: stephen engle from taipei.dition of the "best of bloomberg technology." tune in each day 5:00 p.m. in new york, and remember all episodes are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and now, get a $200 prepaid card when you buy an iphone. it's a new kind of network designed to save you money. call, visit, or go to xfnitymobile.com. carol: welcome to "bloomberg businessweek." i'm carol massar. we are inside the magazine's headquarters in new york. this issue, the next generation of digital currency. america eyes energy independence, and an inside look at one of london's most secretive members clubs. all that ahead on "bloomb

betty: that was australian revenue kelly o dwyer speaking to stephen engle atbetty: the an financial in hong kong. we will be back later today. to the european security and markets authority chairman stephen mazor, 9:10 a.m. hong kong time. institute oftional research president will be joining us to discuss the outlook in china for 2018. staying on china, china stepping up its crackdown on cryptocurrency. we will look at what trades are in regulatorswe will look at whe in regulators sights next. this is bloomberg. ♪ loomberg. ♪ ♪ indi: it is 9:30 a.m. here sydney. futures are pretty tepid in the markets right now, not much of anything going on. features in sydney in going down by one point. we are looking for cues from the obviously, the martin luther king jr. holiday today. betty: i am betty liu in new york, it is 5:30 p.m.. here's first word news with rosalind chin. rosalind chin: two of its commercial planes have been intercepted. the emirates flight from dubai to the capital was one of the flight flagged by qatar. on monday, and an sound qatari royals said he was being held agains

emily: stephen engle from taipei.dition of the "best of bloomberg technology." we will bring you all the latest of tech throughout the week. tune in each day 5:00 p.m. in new york, and remember all episodes are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ >> brilliant ideas, powered by hand a motor. ♪ >> a south korean filmmaker, his films are poetic, sometimes dark and unsettling. marginalized and overlooked, his video work show deep themes like

stephen engle filed this report.orth korea's delegation to these talks just about five miles down the road across the bridge in the demilitarized zone. kind of broke the ice in the morning talks by saying that relations between the north and south had been frozen more so than the natural weather and i can attest that the natural weather is pretty cold. it has been subzero temperatures all day. trying toake progress resolve some 67 years of facto state of war on the korean peninsula. the north koreans will send a delegation to the upcoming winter olympics in pyeongchang south korea which began about a month. they will also send some athletes and a cheering squad and for the south koreans they got a bit of a victory because they do not have the specter of looming war hanging over what should be a celebration of peace on earth being the winter games. when the south koreans proposed a restarting of denuclearization talks the north koreans did not react. they just said that they would like to see some sort of outcome from

stephen engle is with me for a look at the highest and how it heists -- a look at the and how it affects as a model for mixing innovation and regulation on cryptocurrencies and blockchain, as opposed to china, which was more of a cautionary tale because of the fraud and subsequent heart crackdown by authorities on initial point operating -- initial coin offerings and the like. taiwan has been sitting back and looking at how the different players are regulating but also allowing innovation. taiwan, at least some of the newer, younger people in legislation and regulatory eyes are trying to push good -- to push. the 23 brew company is at the intersection of old and new. it is an establishment challenging the establishment, or at least the established way of buying around. their pintspay for bitcoin. >> we are forward thinking, we want to support that coin and kickstart that in taiwan. give power back to the people. stephen: in light of the coin inst in japan and crackdowns other countries, taiwan is trying to figure out where it stands on cryptocurrencies. should the government and regulato

stephen engle, the author of a great book about lincoln and the nation's governors. jonathan white, author of "midnight in america." and soon to be with us, a book, "our little monitor." and of course, catherine clinton , no stranger to us, author of many books. and, and author of a great ongraphy -- as well as edward's stand-in, called "stand on edward stanton, called "stanton." he told me, and i hope i am not revealing any confidence, he has a glint in his eye. good luck with that. i am sure we will hear about secretary of the treasury salmon chase from professor clinton. let me start with this. john barr, one of our members, wrote a great book but it is a door stopper, it is huge. lincoln."led "loathing he said in his introduction that william f. buckley, jr. once said americans shall not remember why lincoln was loved until we come to understand why he was hated. both emotions were shown after his assassination in 1865. even those who as william , petersen said, even those who commemorated or tried to memorialize his death with a -- bunting secretly harbored a wi

was the bundesbank board member speaking to stephen engle in hong kong.thoughts on the coming in from the cold of the chinese currency and as we said earlier, already included in the imf special drawing. why broader acceptance by global central banks? >> i think it is necessary for bundesbank.bank -- larger than the chinese at the moment, so they might be increasingly having some need to buy some just for that reason. anna: he was talking about the need to pay the imf. in terms of the chinese growth story and a lot of the talk is about synchronized global growth and the chinese economy. , theo the trade risks spats with trump and the trade risk affect your view of china at the moment? chinese economy is one of the less resilient ones but the chinese leadership has -- -- we areecting experiencing a slight slowing in the background, but the chinese may whack against it. that worries me more than trump because trump still needs to stay alive with the china -- with the chinese as long as little rocket man is there. anna: the chinese do play that whack-a-mole

stephen engle went and enjoyed an immersive experience in beijing. >> watch your back all the time. irtually impossible not to see the potential of virtual reality when one is immersed in a deep space killing spree. >> it is like a combination of a movie and a game. stephen: all you are really doing is walking around a barren foam padded basement. this is freaky. the vr venture is cofounded by one of china's most renowned film visionaries who transform may one of his most iconic silver screen works into vr. >> for me as a director, this technology is significant. you can be very imaginative. it is not flat. it is not flat. you can see color in 360 degrees. you can even interact with it. it opens up a whole new world. stephen: he wants to open up a whole new industry of vr theme parks around china. this 10,000 square-foot venue is a pilot project to a larger theme park to be built this year. >> it wants to become the universal studios of china. why? because it is backed by a wealth of intellectual property. parks around china. stephen: idc says chinese vr shipment units will raise six

stephen engle. stronger, higher, faster. tom: it's all about strong thumbs.ick check of your business flash headlines. walmart has forged another alliance with -- in its battle with amazon, partnering with record time to improve -- raku tan. it will bring the e-book catalog to walmart later this year plus a revamp of the company's food operation. that will roll out in the third quarter. shares rose sharply. the best quarterly profits since 2014, but efforts to secure long-term mining rights in indonesia remains challenging. indonesia last year ordered foreign minors to divest ownership to interests. the ceo said the apparent willingness of joint venture partner rio tinto to give up its share of future production may change the game. david: lambert has been told to chinese companies have expressed interest in mechanical drive units. sources say a lender could raise $1.2 billion as the biggest engineering company seeks to streamline operations. .iemens made a satellite unit quite a week. markets poised for a seventh straight weekly gain. tom: looking forward to