ur tom mackenzie has have written access to one of the minest digital currency in the world and filedport from a goalie a. -- mongolia. tom: the world of bitcoin can mines seem abstract. here, the cryptocurrency comes roaring to life. bitmaine is operated by in. one of the largest in the world. this is really part of the central nervous system of the bitcoin economy. there are 25,000 mining machines transactions,ng and generating new bitcoins. the machines solve complex equations to record each bitcoin transaction to a decentralized ledger. miners are rewarded with bitcoin. difficulty increases, requiring faster processing power and more energy. something that comes cheap here in mongolia. >> in china, the cost for a farm is very low. when people make a decision to have a money farm, you can do it asked at a low cost. tom: this mine employs about 50 people and generates a quarter of a billion dollars a day in revenue. many of the bitcoin and of traded on the currency exchanges, some of the biggest in the world. they come under the scrutiny of regulators and bitcoin being used to funne

as get to the first word news with tom mackenzie. part in korea and japan in their first talks since 2015. the summit is an indication of warmer ties between the three countries, and sets the stage for the visit by president xi and shinzo abe. relations have been strained by competing territorial claims. said toa talks have have taken a step forward with negotiators agreeing a new major to combat corruption. talks that were supposed to conclude last year are expected to drag on for months, and maybe even extend to 2019. resolved,e been leaving substantial work for future meetings in mexico city at the end of february and washington the following month. lease ofat one a new life with a surprise victory over u.s. tariffs. they ruled against boeing saying the american aviation industry has not and harmed by c-series sales. commerce department to impose duties of 300 japan -- stranger percent in the united states. by marty a jump to the most in almost two years to its highest in three years. commonwealth bank has named matt, and its new c

tom mackenzie is looking at this for us. has been going on for so long, is it the chicken coming home to roost? drip feed ofeen a bad news. certainly this is not an insignificant cash crops. this came out at a meeting that agent a held at high and am. they also said that in the second quarter they didn't to divest some of their assets. this is a company that has assets as of june of last year of 190 billion u.s. dollars. including deutsche bank. short-term debt obligations are about 29 billion u.s. dollars. quite simply, according to bloomberg's calculations, the cash and earnings are not enough to cover the short-term debt. that brings up the question of what they do next. one strategist said this will come down to whether the banks are going to continue to fund hna. time is running out. rishaad: the conglomerate under this spotlight -- how are they dealing with this? certainly concerns by policymakers at some of the riskier barring. what they are trying to do is look like set a's stage. they have been in conversation with

back to thes get on some of the latest insights from tom mackenzie.ant to ask you what we can expect from chinese policymakers. management, ors what else is in their toolbox? it is always difficult to figure out what the pboc has up their sleeve. viewe a somewhat different on the removal of the countercyclical mechanism. i thought the pboc were happy with the structural way the andinbi complex was trading felt comfortable enough to remove it. that was designed to curb capital outflow. we don't see that picking up right now. we saw and that as a vote of confidence and were encouraged. u.s.e back of the stronger dollar, that is really driving the momentum right now. where is the line in the sand for the pboc? given the fact that they are in a happy spot right now with comments from central bank reserve places that these central banks are acquiring the yuan, i don't think they are ready to step in front of the party bus right now. i think the yuan bulls will be running wild in the china shop for the rest of the week and month. yousef: we understand accor

tom: tom mackenzie, bloomberg, mongolia. ramy: good stuff from tom mackenzie. mongolia. south korea says hackers from the north are not targeting crypto miners to search for castle amid tough national sentence. ul says a unit seized a server in 2017 and mined about $25,000 worth of monero coins. the hackers seem to prefer it as it is focused on privacy and easier to hide than bitcoin. issuestransparency clearly not easing up when it comes to cryptocurrency. coming up, we will talk all things auto. electric cars in 2018. talking about the latest players. which if any can challenge clearly not easing up when it comes to cryptocurrency. coming up, we will talk all tesla's position at the top and become the new leader of the pack. also, taking a look at where some of the geographic hotspots will be for electric cars. this is bloomberg. ♪ ♪ haidi: this is daybreak asia. hyundai says stalling global growth and rising protectionism will dent demand in major markets. it and its kia affiliate is due to report sales later this tuesday and likely to fall short of predicti

tom mackenzie -- said it would retaliate. tom mackenzie, bloomberg, beijing.k: time for the biggest business stories in the news right now. profits beatr estimates at morgan stanley, driven in part by the bank's who hasanagement unit, climbed to a record thanks to the booming stock market. that is offsetting a 45% drop in the fixed-income revenue. a takeover in the hotel business today -- wyndham worldwide will buy a hotel franchise and management business. the price, about $1 billion in cash, repaying $750 million of debt before the deal takes place. off a realill spin estate investment trust. a dive for the struggling a380 program -- the dubai airline has bought more of these superjumbo planes at a list price of $9 billion. it has options to buy 16 more. earlier this week, airbus told bloomberg that the jet program risks being shut down if it doesn't get an order from emirates. the airline is the world's biggest operator of a380's. that is your bloomberg "business flash." right, what is up next? we are approaching the close. ftse is down, dax up .6%. check o

let's get with tom mackenzie in hong kong.e: opec and russia save will maintain oil production curves through 2018. they hint that they are ready to cooperate beyond that. the minister told bloomberg that were structured and's would stay until the market rebalances. neither he nor his saudi council will confirm the curve what extent into 2019. the international energy agency expects strong crude next year. we assume that corporation between our countries is long-term. regardless of whether it is in terms of the markets, market stabilization or other areas. our corporation is based on the agreements we have in china. years, we will.5 have implemented this. we have shown a very successful run. afghan security forces have ended the siege intercontinental hotel, killing the last of the six militants involved. at least 18 people died in the attack, including 14 foreigners. the taliban carried out the attack at the heavily guarded building that is popular among tourists and afghan officials. a new bloomberg survey suggests bank of j

correspondent,na tom mackenzie joins us for more.investors likely going to be focus on -- focused on? squarely in focus will be the for your number, six point 8% is the estimate for 2017. is the estimate for 2017. the fourth quarter number is expected to stop from the previous number of 6.7%. below that number you will get the likes of retail sales that will pick up 10.2% of the month of december in line with what you got for november. we will get industrial production for the number of 6.1%, also study -- steady. up 7.1xpected to come in percent. that would be the slowest pickup in fixed asset investment since 1999. we have a terminal g #btv 6323 that shows the monthly gdp tracker put out by bloomberg. the yellow line is the tractor. it is moderating somewhat. we did hear from him saying he expects growth and could top six point 9%. talking about strength in corporate profits, household incomes, fiscal revenues, those the -- those details that could propel. they are looking for the rest -- forward to the rest of the year. rose about

matt: that was vanguard group's chairman speaking with bloomberg's tom mackenzie. crypto, let's get more on that subject. ledger, has sold over a million units. these are hardware pieces. they announced this morning they would raise $75 million to grow the business. eric has grown businesses before. eric, thank you for joining us. that me ask you about ledger. explain the business. how does this product work? do you carry it around with you? impossible to hack? what is the idea? parts of the biggest crypto concerning -- cryptocurrency is security. you need a digital safe. product, itrdware is impossible to penetrate. it is going to secure privately. or physicala safe gold, you have a safe for bitcoin. you can keep it with you. what it does is keep your .rivate key which caters to owners of cryptocurrencies. we have sold a million units in more than 165 countries. matt: what happens if -- i once bitcoin in a wallet since 2012, and have not been able to find the password. it is worth more money now than it was then. what happens in that case? if that happened with on

that was tom mackenzie. thanks to lars peter hanson. with the bank's ceo. that will be 11:40 hong kong and 2:40 this afternoon if you are watching out of sydney. our interactive tv function as well, you can watch us live and catch up on past interviews and dive into series or bloomberg functions we talk about. become part of the conversation by sending us instant messages during our shows. it is for bloomberg subscribers only. make sure to check it out. this is bloomberg. ♪ this is bloomberg. ♪ ♪ this is daybreak asia. betty: a quick check of the business flash headlines, u.s. justice department lawyers have sought out farmers, a vote that is a $66 billion takeover of monsanto, creating stumbling blocks to the biggest merger everywhere in the global feed and crop chemicals industry. farmers who attended three separate meetings were interviewed about concerns over the deal. the buyers say they are confident in closing the deal this year. yvonne: tencent has held talks of getting a myanmar-based social group in london about commercial part

i'm tom mackenzie. this is bloomberg.ishaad: headlines coming out. the finance minister in japan talking about a group not targeting currency rates. fxics rates, not fixed -- rates not fix. also trump talking about a specific partnership. he would join if you could get a better deal. trump waiting into the currency markets, wading into that debate over the dollar saying he favored a strong dollar after one day after his treasury secretary endorsed a different currency. mario draghi says someone was not playing by the rules. >> the exchange rate has moved reasons,ecause of namely the improvement in the economy. at have tor reasons th do with communication, but not by the ecb, but by someone else. notthis communication does -- not the ecb communication, but this someone else communication -- [laughter] >> does not comply with the agreed terms of reference. rishaad: no comfort for the dollar, saying the robust growth justifies a stronger euro, pushing it to a three-year high ahead of trump's comments. of prognosise ceo advis

here is tom mackenzie.pec and russia say they will maintain all production curves through 2018 and they are ready to cooperate beyond that. energy -- the energy minister told us the structure would stay until the market rebalances but they would not confirm the curbs will remain through 2019. they anticipate strong growth this year. >> the cooperation between our countries is long-term. regardless of where is in terms of the markets, or other areas. our corporation is based on the agreements we signed in china in 20 16 in september, and i think over the past 1.5 years, we've been actively implementing this, and we have shown a lot of success, a successful run. tom: a new bloomberg survey governor kuroda is increasingly strong favorite to win another term at the bank of japan. the governor has been in charge since 2013, implementing an unprecedented stimulus program in an attempt to kickstart the japanese economy. the euro gained as germany social democrats voted to open formal talks with chancellor merkel.

let's get more on this with tom mackenzie in beijing. - this is coming out in drips and drabs. exports ins and terms of u.s. dollars -- in december, up, you're on your. imports up 15.9% year on year. trade balance, $54 billion. that compares estimates of $37 billion for the month of december. the surplus came in net 45 billion u.s. dollars. we did get the overall 2017 numbers an hour ago. they painted a picture of a strong year in terms of trade for china over 2017. we saw exports up 10.8% in yuan terms. imports up 18%. a report from the customs bureau in beijing talking about the trade picture, saying it was better than expected. external demand remaining relatively strong. also pointing out some base effects. 2017 was a rough year in terms of trade for china. given that base effect and the relatively strong year we had in 2017, if the pressure on the numbers for 2018. the giver breakdown on the trade around north korea, a hot button topic. saying trade between china and north korea was down. a little over $5 billion. they also pointed o

francine: that was ubs ceo sergio ermotti speaking to tom mackenzie.hat is what ermotti sees for 2018. still what does, athanasios vamvakidis -- still with us, athanasios vamvakidis and alberto gallo. is it overvalued? you are saying there are a lot of institutional investors waiting to come into europe. >> i would not say the eurozone is remaining here. all of the levels will tell you the euro-dollar a condemning equilibrium is about 1.20 to 1.25. you are almost thre. -- we're almost there. the recovery is ahead of the eurozone recovery. do not expect the euro to be so strong today. it's not a stretch position, but this position could be at risk. or, in the market, pricing repatriation of profits in the u.s. because of the tax reform. tehse are the two factors that could support the dollar in the short-term. francine: when you look at the kind of -- you were saying about the hawkishness of the ecb, that might surprise on the upside. what would that mean for the markets and the german bund? >> i think the market has been repricing europe since the elec

tom mackenzie joins us now from beijing for more, and tom, why is tencent doing this deal, and why ising it now? tom: clearly, they have been presented with an opportunity, offering up this stake in their commercial property unit, but it is part of this date focus now -- big focus now to combine some of their online presence, services, and businesses, with what is happening offline as well. big push into brick-and-mortar retail space here, worth $14 trillion so far. of these china -- some big tech giant think they can revolutionize. they are harvesting the data from consumers. mobile payments for tencent and alibaba, both financing for market share pretty aggressively. tencent leading this acquisition, buying about a 14% a'ske in commercial -- wand commercial property unit. it is backed by alibaba. this is part of a trend that we are likely to see in its infancy at the moment. it could reshape the retail sector here in china, possibly further afield. this deal worth about 5.4 billion u.s. dollars. it has: it does seem fallen to some extent. where does this leave him and the ambitions

tom mackenzie joins us from beijing with more. what is likely impact of these new regulations? tom: regulators laying down the gauntlet in the new year with these new regulations, trying to clear out the risks of shadow banks, trying to tackle concerns they have in the financial system. what the impact is likely to be targets three key areas. and trusted loans held by banks, insurance firms and some of their lending practices, and bond trading. morgan stanley says the key areas of impact be the property sectors and infrastructure investment, which rely on these mechanisms and loopholes for fundings. those are areas to watch more broadly and over a longer time frame. we should expect to see a slowdown in the broader credit environment. they told us they expect credit still in 2018 to pick up by about 13%. moreis likely to be about targeted approach to credit. want to ensure it goes to small and medium-size enterprises. -- want to weeded out, weed it out. betty: give us details on the new roles that have been announced. clarify for u

joining us now is tom mackenzie. good to have you on the program. may hoping to get out of this visit? trade deals is always the banner that every prime minister wants visits. to one of these i guess that is what she is after. yeah, you are right. the trade deals are certainly up there. number one and two. yeah, you aretrade deals and oe opening the door to potential future formal discussions with china on this fpa that will happen in 2019 when britain does finally leave the european union. those are two main goals. she has come here with a delegation of 50 business leaders from the likes of hsbc, bp, small and medium-sized enterprises making up 60% of the mix. she is looking to open up the market, particularly the chinese consumer. that is why she has food and beverage companies. she has said she would not shy away from talking about things like human rights and an eroding of democracy in hong kong. she started her visit in the central city of wiluhan. she will be meeting with a premier at some point in the next few hours and will hold a press conf

rishaad: tom mackenzie with rene buehlmann of ubs.onds, our next guest thinks sweet yields are made of these. that is next. ♪ ♪ haidi: bond traders are turning their focus to this week's crucial u.s. inflation data after friday's jobs numbers for short of expectations. us now is our next guest in singapore. great to have you. to the nonfarm numbers being a miss, and this week's inflation numbers, how much does that change the narrative for you in terms of what the fed does this year? >> the fed should be quite happy with those nonfarm payroll numbers. jobs growth was strong enough to confirm the recovery in the economy, and there was not any acceleration or inflation worries either. in terms of unemployment, it was roughly what the fed told us to expect when they published their dots. it does not put pressure on the fed to accelerate its pace of hikes come up but does not take away any hike probability either. -- pace of hikes, but it does not take away from any hike probability either. it is still gradual for the fed. haidi: does it

let's cross over have to ubs greater china conference in shanghai where tom mackenzie is standing by k's chief china economist. tom. you.betty, thank joined by the chief china economist at ubs. time thisfor your morning. as but he was saying, we got the inflation data out tomorrow for china. what are you forecasting for cpi and ppi? >> our forecast is cpi will have a bit of a rebound to 1.8%. to decelerate. tom: is that posing a risk for profits? the corporate did pretty well as producer prices picked up last year. is that a risk for corporate china? >> ppi rising was driven by upstream prices. all materials and commodities. while those upstream companies have enjoyed very good profit, it put a bit of a squeeze on downstream companies. deceleration of these commodities prices or a drop of those prices make a shift? feel asstream may not much of a squeeze. it is not all bad. tom: it is a mixed picture. in terms of the exports we are expecting, exports and imports coming out on friday -- is there a softening trade environment in china for 2018? are those numbers went to edge off, and wh

our china correspondent tom mackenzie joining us from beijing for more on this. hat are we expecting out of these trade numbers? we are expecting china to round out the year, relatively robust footing when it comes to exports and imports. exports will have slowed marginally. these are the year on year numbers. the forecast expected to increase 10.8% from 12.3%. if you put november to 15, that will still be the strongest pickup they have seen since june of last year. the imports will soft and as well. -- the imports will soften as well. that would be the weakest increase in imports from china since august of last year. overall, a relatively sordid picture, even if there is softening around the edges. around $37 billion. down marginally from the previous month when it came in a $40 billion. this is something of a sticking point between the u.s. and china. president trump has bashed china over, the deficit between the two countries. the deficit the u.s. has with china. that is something to watch. u.s. will be encouraged by this slow down when it comes to export numbe

let's bring in our asia editor and tom mackenzie. this discussion, let's start with you. let us know about the key messages. tom: he is an increasingly giving us a bit of a tease. he did not give us concrete details about what these reforms might be but said there would be a stepped-up approach to opening up the markets, particularly around the financial sectors. he talked about the tech problem and said it was in focus for policymakers. he said that being the fragile reduction and expansion in credit, which we saw towards the end of 2017. they will try to control the debt gdp ratio. said we will continue to open up and step up the place around the financial sector. we have seen those barriers lowered. there is excitement in beijing when you talk to banks operating there about opportunities. yvonne: why was he passed with delivering the speech. was he was quite -- it unusual that he was there last year. the first time a chinese president has taken to the stage. surprise that he was there. he is expected to take on the role as vice pr

. >> that was the ubs group ceo sergio ermotti speaking exclusively to bloomberg's tom mackenzie.aid to be discussing a large plane order from china during the french president's state visit this week. sources say talks are focused on 30, although the a3 the size of the order is not final. has approachedup brokers about the sale of two office buildings as it seeks to cut its debt word in. tots missed payments due chinese banks, prompting lenders to freeze the borrowers unused credit lines. impact forbuying $1.1 billion upfront and payments contingent on regulatory approval for new medicine. impact is developing a drug for treating blood cancer and bone marrow disorders. the company has been under pressure to replace revenue from its cancer treatment before copycat drugs eat into sales. your bloomberg business flash, a quick preview of what is still coming up, the saudi government and the salary hikes. citizens should have plenty of cash to spend in theory, but will they use that money to buy stuff? we will break it down in terms of what it means for corporates. how will investors

let's look at the latest from tom mackenzie. about the revelation surrounding age and day. how significant is the latest development? tom: the revelation seems to be coming on a weekly basis. it throws into sharp focus the financial challenges that this conglomerate is facing. this came about from a meeting. they outlined some of the financial struggles, including this short term shortfall of 2.4 billion u.s. dollars. they said that in the second quarter they expect the pressure to ease. it does raise the question about the viability of the business itself, it is a business that has $190 billion worth of assets, including in companies like deutsche bank and hilton worldwide. short-term debt obligations are around $29 billion, bloomberg has been punching the numbers and says that according to our findings, it is cash and earnings that is not enough to cover short-term debt. this is a question of whether or not the banks are going to issue more funding for hna to tie the motor -- tie them over. the clock is ticking. >> it certainly

tom mackenzie joins us from beijing.s pretty well, one offsetting the other. ,> it seems quite fortuitous like they have hit a sweet spot. credit growth did slow substantially for december. supply, that is up 8.2%. the forecast had been 9.2%. that is the lowest growth in money supply on record. potentialint to the risks around this at deleveraging campaign as they try to pull out some of the credit into the system. as you say, offsetting the pain is this global growth environment we have been talking about, and the fact we saw exports picking up for november a 13% china posting annual increase in terms of the surplus with the u.s., so that will be key to watch as policy makers roll out these regulations just since the beginning of the year. we have seen them ramp up the regulations around insurance companies, banks, and we heard more on that over the weekend. this will be key to watch. it is about this balance. the chinese government said they're willing to accept a slightly slower growth picture next year. externaloment

tom mackenzie caught up with sergio ermotti for an exclusive interview and asked for his thoughts onl macroeconomic climate. do >> we continue to see a robust economic growth. the 3.8% we saw, the mix of this growth is going to be -- we will probably lose momentum in the u.s., or not a strong as 2017. some from the rebound of commodity prices, generally speaking. on the other end, we expect brazil and india to develop well. we need to watch on the other end the repercussions of the normalization of monetary policy. >> are the u.s. beginning to look frothy? is that synchronized recovery underpinning valuations? >> i think we can say that starting the year we believe -- is a good place to be. valuation across all asset classes are high. >> what are you seeing in terms of trading, volatility? are we starting to see a pickup now? >> january is too early in the quarter, but in general, you expect january in the first quarter to be more active. in terms of market volatility and realized volatility on financial markets, it is still very low. i don't see a change in the trend. if i looking t

tom mackenzie spoke to the we should at the ubs greater china conference.. >> we have guided investors in our series where we sell 20 or 30,000 cars. how much of it is down to have this replace the factories and buildout because we see this concept cars being launched at auto shows that when it comes to this, how do you manage to get over that? what are the challenges? >> data capacity for 102,000 cars so with a process of tilia now and putting all the robots and blind assembly, i think we will have as difficult a time with made treasury has tesla did, china is the king of manufacturing so it is a jvc know how to manufacture cars. >> you are squarely focused on the chinese markets but where are the biggest markets beyond china for the done the line? >> we are targeting to be in the u.s. in 2020 and we also had to europe as well. terms of the infrastructure in china, charging points are very important, what are you seeing in terms of the buildout and the starting point and ensuring that the arm can get from point a to point b smoothly and efficiently. >> we

emily: that was bloomberg's tom mackenzie with nio's cfo. it for this edition of "bloomberg technology ." we will be live at ces again. you won't want to miss our conversation with elaine chao. a reminder, we are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ chalene: the following is a paid presentation brought to you by beach body, but filmed by me on my iphone and directly from my heart. hold up. i want to ask you a question. how do you feel when you look at yourself in the mirror? not so good? like, gross? who is this person? like you know you have to do something, but it is so confusing. there are fad diets, extreme workouts, and it is working for

haslinda: vanguard chairman and withill mcnabb speaking tom mackenzie.aking of exclusive interviews, we have lots more interviews. for me live in davos extensive coverage of the world lotsmic forum, and we have of big names. also, analysis from pharmaceuticals. come up byight now .2%. this is bloomberg. retail. under pressure like never before. and it's 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. >> the lion city taking a breather from the rain, but still clouds out there. we are in the middle of the trading day. taking a look at the sti, reversing yesterday's slump. it posted its biggest gain in and looks last year, to do more. >> as you know, temperatures in hong kong edging to slightly higher. not as warm and hot as sin

another exclusive interview this week took place in beijing, where bloomberg's tom mackenzie sat downabb. they began by discussing his company's prospects in china, as the nation open its financial system. opportunitya lot of for what i would call low-cost investing. there is still a lot of high-class product in the asian market, and whether it is passive or low cost active, you could make a case for both. likely you will see us doing both overtime. >> the likes of fidelity are starting to push back and lowering their fees, becoming more competitive. what changes are you seeing in the fund management industry? >> i think for the first time, there is widespread belief that price actually matters. there are couple things driving that. one is our success, blackrock success in the etf space. people aren't coming to us just because we are lower cost, they are coming because the net return to the investor is better, and that is the whole driver. i think people have awakened to this, the data are overwhelming. -- if youan't charge are an active fund in charge with hundred basis points, you h

bloomberg's tom mackenzie caught up with sergio ermotti for an exclusive interview and asked for his the global macroeconomic climate. >> we continue to see a robust economic growth. the 3.8% we saw in 2017, the mix of this growth is going to be -- -- going to be different. we will probably lose momentum in the u.s., or not a strong as 2017. some from the rebound of commodity prices, generally speaking. some of it from the property in china. on the other end, we expect brazil and india to develop well. of course, we need to watch on the other end. the repercussions of the normalization of monetary policy by central banks in the future. >> are the u.s. and europe starting to look frothy? is that synchronized recovery underpinning valuations? >> i think we can say that starting the year we believe equities are still a good place to be. at least in terms compared other assets. at current levels we believe it is a good place to be. valuation across all asset classes are high. therefore, we focus attention on quality and diversification. >> what are you seeing in terms of trading activiti

rishaad: thank you, tom mackenzie there in shanghai.e have a conference coming through from the intel chief executive, talking at the consumer electronics show. there he is, explaining what is going on with the impact of the security glitch, as it were, in their chips and others. this has led to what people have been talking about as a chip industry meltdown, there has been no reports of customer data being access. the extent will vary. he is talking about, the impact will vary according to workload. those are the lines coming through from the ces in las vegas. this is bloomberg. ♪ ♪ strategyis a has a new and heavy hitting partners are interested in a new concept car. we are joined by our auto -- our auto reporter. toyota is calling mobility is service. what does that mean? basically all of the legacy carmakers have this problem in that they don't want to end up being what ibm ended up being in the revolution in software, when basically ibm ended up making the box in which microsoft and other companies put their value-added software. t

we will get that story and more as we go over to tom mackenzie and the first word news.he ecb council said the bank must and qe as soon as possible. that is ahead of the dutch central bank class. single reason to continue with it. mario draghi said there were signs of rising inflation. is --t and persistent patience and persistence is continuing. president trump said that he would have been handling present differently and would have been tougher on russell's. sources in westminster say that conservatives have given may 3 months to raise her game. >> that is not the way i would have negotiated but i have a lot of respect for your kindness to and i think they are doing the job. i think i would have negotiated differently. i would have had a different attitude. >> what we have done? -- what would you have done? >> i would have said european union is not cracked up to what it is supposed to be. i would've taken a tougher stand. >> japanese crypto exchange point share says it will use its --coincheck will use its own capital to repay any customers hit by the theft of -- toke

and tom mackenzie next as bloomberg markets continue. this is bloomberg. ♪ tinue. st 11:00 in hong kong. tom: welcome to "bloomberg markets: asia." ♪ politics looms over the markets as lawmakers wrestle with a showdown -- a shutdown, a vote has been pushed back as the senate calls it quits. tom: there is concern about the effect of week consumer sentiment. david: and telecoms dial the right number. pack,nd the leader of the governor kuroda is increasingly favored to win a second term at the boj. we are live in tokyo. david: this time tomorrow, we will get the latest boj policy decision, and if you hours -- a few days after that, we have more information. on the markets. we are down about 1/10 of 1%. the outsized move coming from samsung, providing a little more pull where the index is concerned. it is looking worse than it is, we are placing weeks put half-half. majors trading 1.10. let's look at the two markets opening up now, one now and one later on. you have the clients at the open . trade numbers coming out and about 27 minutes. a quick look at the features in

rishaad: that was tom mackenzie there in beijing. ,hief executive officer jonathan. y? the equity rall obviously when you have a big rally like that. you will see china and the underlying marketplace for you will see a lot of rebalancing. people will become more comfortable but the marketplace again. rishaad: when we look at what is going on in the bond market, a massive move there. yields of 2.4%. we are looking at 2.5% on the handle there for the year -- for the 10 year yield. the yield on the s&p 500 is now less. jonathan: yes. rishaad: how do you put the jigsaw together? some saying that is the end of the rally coming up. jonathan: there is no doubt you see inflationary pressures. you have a big tax cut when you have near full employment. you also have cyclical factors in the economy. it is economy is strong here. i'm not as afraid of tapering and interest rises as other people are. i think the marketplace is ready. i think people will be surprised on the upside in terms of where interest rates will go. when they go up a little bit, everybody gets scared. you might

in an exquisite interview with tom mackenzie, sergio armani weight in on equity and olatility and whatnormalization will affect the economy. >> we see a robust economic growth. the 3.8% should be repeatable. the growth will be different. we are probably owing to lose some momentum from the u.s., or at least not as strong as we had in 2017. some are from the rebound of commodity prices, generally speaking. some of it from the property are in china. on the other end, we expect still and india to develop well and we expect to watch the other end. what's the repercussions of the monetization of the monetary policy by central banks? are equities starting to look a bit frothy or is that signal has global recovery underpinning those valuations? >> i think we can say that starting the year, they could the a good place to be. at least in terms to other asset classes, it also on their own, i think at current levels we do believe it is the place to be. valuations across all asset and they wantgh to focus attention on quality and diversity. tom: what are you seeing in terms of trading activity wit

anna: that was the ubs group ceo, sergio ermotti, speaking exclusively to bloomberg's tom mackenzie.iscussing china and ubs's intentions toward china. we are also keeping across headlines from emmanuel macron, who is speaking in china, in the old imperial capital. he is talking about how france and china must work together on global balance. he also says china has powerful leverage on north korea, occluding to the french president, who was delivering a big foreign policy speech at the start of his visit to china. joining us here in london, james foley, head of fx strategy. good to see you. let's talk about china and where you see this going. 2018, clearly the expectations around the fed are that we get a number of hikes and opinions vary. how much does the pboc follow along with that because they don't want to risk changing too much of that yield differential? >> well, the last few months, i think it is clear that they want a stale renminbi, but i think that is coming at the cost of the market. if you go back to the start of last year and the year before, there were a lot of doubters

our correspondent tom mackenzie joining us now from beijing for more on this appeared explain this movet is seen as a window of opportunity really for the pboc given the week this in the u.s. dollar. the yuan traded against the greenback at -- percent. you have seen those of bearish bets on the yuan being crushed has givents say that the pboc a bit of confidence to step back from a little bit of their control, to loosen their control just marginally. we have a terminal that shows what has been going on. 5135. you will see may, that is the blue circle, that's when the countercyclical factor was included. there is a one element in the mix when the banks amidst to the pboc at the end of the day they also include things like trade and closing price for the yuan. that allow them to factor in strength of the economy as well, being to reduce volatility seen in the early parts of 2017. you will see on the back of that you see the yuan pick up against the dollar and then it was removed. the yellow circle points to it being suspended and then you see the dollar picking up marginally against the c

it is prompting speculation about possible steps, but attempts at controlling and tom mackenzie joins us live in also correspondent over the from the asian financial form in hong kong. how much higher do policymakers are going to tolerate? everyones the question has been asking themselves will and of course hilda solis we will the move to suspend the cyclical process. we have been hearing from the likes -- -- others say this is more of a dollars story. you can see relatively more stable. in terms of what it means, not sensitive to the yuan as well. >> now the reports upfront joining germany. this is pretty significant in terms of beijing's nationalization. thehen i was speaking to deputy governor yesterday, he had this speech where he slipped in the fact they would and the anddy to their reserve pile he said you have picked up on that and then he added this is big news. reservations as limited well as flexibility. works it is the right way to do it. it is not a major amount, but it is something we decided long and want to be part of. again, another step given we don't know the size th

china correspondent tom mackenzie joins us from beijing. tom, after the.detente, we are approaching where the rhetoric turns into some trade action. certainly, the administration in the u.s. has been signaling that it is preparing to act. president trump has a few weeks in which to decide whether or not to impose tariffs on steel and aluminum exports. clearly, the president and the u.s. is irked by the fact that he has failed to close the gap on the deficit. by 25 billionup u.s. dollars in 2017 you. therein lies the rub for president trump. you have seen other moves in the u.s. for example, a committee that oversees foreign investment in the country taking a tougher line. blocking those deals. also, trying to team up with at&t. all of those things pointing to a more robust approach from the u.s.. numeralot the likes of pointing out that you have the midterm elections coming up in the u.s.. the gop and president trump could take a tougher line. i saying constructive dialogue is needed. the chinese have been pretty open in saying that if tariffs are imposed,

bloomberg television corresponded tom mackenzie spoke ubs sergio ermotti at the greater china conferenceghai and asked him how ubs is preparing for new chinese brink -- bank regulations. startedve been -- discussions with our partners a few months ago about not only going up to 49%, we also -- in the near future want to go up to 51% and legislation allows that to happen and we are pursuing that strategy to continue to grow our business in china and we are very pleased about those developments. >> what is the timeframe for that potential increase to 51%? there's always back-and-forth discussions between us and our partners. we were very happy with the experience we made with our local partners. we want to find a win-win situation for everybody in a matter of months and over the weekend, the result is -- up to does that set ubs expand in china going forward about -- sergio: we have been in full control from a managerial standpoint in china and it's agreementsfinancial than it is from a strategy standpoint. we have been growing our business. two years ago we set ambitions by 2022 to double

tom mackenzie has an update on the big stories of the day.cets. >> we are speaking to >> spooner spooner at cmc markets and this environment on the back of president's decision to implement these tariffs. we will look at the winners and losers has a result of this. kong stocks, is there more value in the hang seng? mojo?t have the it has had its best start to the year in more than three decades, up 10%. gap createsaluation opportunity or time to take money off the table? rishaad: that is something we will discuss in the next hour. stay with us. ♪ >> it's almost 11:00 in hong kong, 12:00 p.m. in tokyo. david: welcome to "bloomberg markets asia." the equities rally in the asia-pacific stalls as the yen rises to 110, its strongest level since september. the dollar is at a three-year low. president trump confirms new tariffs and says he is looking at new areas as well. global trade rivals are not impressed. and a race is on to clean up the streets. we have a special report on the cleanup mission of taiwan. david: the broader picture looking like