Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20180114

Seeking 1 billion to get out of its iron ore joint venture in brazil. Betty a billion dollar headache for bhp, a 7 billion windfall for jpmorganwells fargo, that really propelled the market higher on friday. Along with that inflation data. In record territory in the u. S. , what a month it has been. Lets quickly pull up the boards to see how much we gain, the s p closing at a record, the dow adding over 200 points, the nasdaq also higher. I get the feeling a lot of this will be as the markets are so high, a lot of it will depend on the news we get this week, including earnings, the higher the markets go, the more vulnerable it might be to pullbacks. And many of us have wouldhe first of 2018, we see a pullback, it has been dead wrong so far. Saying thech, biggest on record. Find the bears are throwing in the towel. Looking to see some gains with the u. S. Markets closed for the holiday monday. This is how we are faring in new zealand, about 1 5 of 1 . 72. 47 for the qb right now. Thedollar sinking after inflation data, which was a bit strange, but we are capping five straight weeks of declines for the greenback. Most of that has been a euros story, we will talk about that in a bit. Underway,just getting were sing asx 200 of 131 . Breaking above the 79 handle, which has been a psychological barrier for many of the aussie both out there. 2. 78 for the aussie 10 year yield. We see it picking up slightly by three basis points. Were also looking at the rather in japan and light. But we are expecting a speech from the governor of the biggest japan later this morning. At what pointing to higher open dollaryen, 111. 13. Betty we have breaking news from softbank, this is about the nikkei report earlier. Softbank saying that listening listing of the softbank unit is an option, but no decision has been made to proceed with a listing. According to reports earlier, particular from the nikkei, expectations the softbank was ready to list its mobile unit, that would draw as much as 18 billion, or ¥2 trillion. Softbank clarifying, saying it is an option but they have not made a decision yet, we will watch softbank shares at the tokyo open. Lets get to the first word news with rosalind chin. Tanker thatnian burned for more than a week after a collision on shanghai has exploded and sunk. It left a 10 square kilometer oil spill. All the members are presumed dead. It collided with a carrier on anuary 6 and was carrying toxic and highly flammable hydrocarbons. The sec had says always emergency authorities lacked safeguards to prevent the sort of false alert that told residents of Ballistic Missile attack was imminent. An investigation into the incident is underway involving state and federal officials. Hawaii was sent into a panic by the false alarm, the governor blamed on an employee pushing the wrong button. Inet skidded off the runway northern turkey. Said itthe passengers was a miracle the plane was evacuated safely peered pegasus says there were no injuries. It is being investigated. Analysts say the pounds rally may come under investigation as weak come under pressure this week youd desk week. The dutch finance minister agreed to keep the u. K. As close to the eu as possible. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Yvonne thank you so much. Republicans are holding out hope that a deal can be reached to allow young, undocumented immigrants to a low to remain in the u. S. President trump has tweeted the effort is probably dead. Lets go to washington and ross krasny, who has the latest. The president is saying this somers dead, but you have of the people in his own cabinet saying no, that is not true, there is still work to be done with democrats to pass this. Ros it has been a very interesting weekend on daca, immigration, the potential law extension and the shutdown showdown friday. It is very interesting to note that most americans support daca. There was a new cbs news poll this morning that shows that 70 of those polled support the dreamers remaining in the u. S. You wonder if that gets through to lawmakers in the white house, where there is little question President Trump has been influenced by some of his most antiimmigrant advisors and antiimmigrant lawmakers in the last few days. There has also been a nasty turn in the senate. Tom cotton, the senator from arkansas, the republican, today suggesting dick durbin the democrat had misrepresented trump in that closeddoor white house meeting. Thats not the kind of collegiality we expect from the senate, and not the kind of collegiality the gets work done in the senate. A lot of to and fro this week. I dont think anyone wants to see the Government Shutdown. The iranving to nuclear deal, trump is pushing european allies, almost giving an ultimatum to them to make changes to the deal. Do any seem likely to bunch . I know they dont like to show the ultimatum. Ros i dont think european allies like to hear those kind of lines in the sand, this kind of ultimatums from trump, they dont think it is productive and they dont think there is a need to go back in and renegotiate or rewrite the nuclear deal with iran, which as you know, took years of intensive diplomatic efforts to get through in 2015. I think they think iran is more or less into the letter of the law of the deal, and they dont really want to go in the direction trump is going. China and russia would also have to be brought on board. I think we will see more talk about that in the next weeks and months, but it is hard to see the deal being reopened, so that would leave us to guess what President Trumps next move might be. Guessing, also when it comes to punctuation. The walldent disputing street journal that he had good relations with kim jongun. Given the pushback from the president , does it suggest he may have talked to north korea . Ros President Trump tweeted today, he said on twitter that the wall street journal stated said i have a Good Relationship with kim jongun. Engines question hinges on whether he was speaking in the present or future tense. The white house and wall street journal have each released competing audio from the interview. You can listen to it many times, and not come to a conclusion. I think probably the best guess is that President Trump hasnt jongun, but he was a little inconclusive about that during the austrian journal interview. The wall street journal interview. It does seem like tensions between washington and pyongyang have some are down a little at the moment, but i dont think they have gone far enough to have President Trump actually talk to north korea. Trump is warming up for his fake news awards, which according to him, are coming up this wednesday, where he will award certain media prices for being the thickest the most fake. Him, the wall street journal has put in a late bid for a prize. Yvonne we are in awards season. Hank you, ros the week ahead in wall street looking busy despite being shortened by mondays Martin Luther king day holiday. We have a parade of earnings, particularly from banks, and ecodata, and the continuing gyrations in cryptocurrency. Lets get to su. Lets get to that point. Su thats probably the award winner for volatility. In the pastown 19 week alone, it has taken a tumble, a range of 10 . You have to realize it was at 13000 and change, and 14000 and change in the past month. It is down 31 . Its look at the big picture, from a high of over 19,000 in middecember. Decline,s also seen a tumble of 10 . It is now 45 low its high of 332 on january 4. Last week, concerns on social media about possible crackdowns from the asian countries, particularly korea. Say that could continue, the concern at least, andthese are rolling rises falls in the currency, they could come at an increasing currency. Increasing and frequency. We also have a rise of what you could call the crypto culture. We have a wrapper who calls himself coin daddy. He is rapping about the crypto life. Many say there could be a wave of crypto culture items rocketed in the u. S. To take advantage of the mania. In any event, inc. Earnings in the spotlight as well, and the u. S. Currency on track for one of its largest if longest losing streaks since february of last year. Yvonne thank you so much. Su keenan on that coin. We will not stop talking about it this week. Coming up, we will talk strategy , and some of the key themes that could check the markets this year. Betty we also live from the Asia Financial Forum. Stephen engle will be speaking with highprofile guests. Stephen 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. Were counting down to asias 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 shortterm rates above 2 , better than expected data from enough chances of a fed rate hike in march. Here with us is neil duane. He joins us in hong kong. Thank you for joining us. I have a chart here to talk about more about the twoyear him of the moves we have seen, even before the inflation data came out. 3304 on the bloomberg terminal. We see the twoyear yield picking up above 2 , actually or higher. E p what you make of it . Neil i think 2018 is all about whether the feds plan will be met, or whether the market wishes to call its bluff was only one rate rise. I think it makes sense for the market to react to either Stronger Economic growth or higher inflation. Clearly, i think what we saw on friday was a sign that maybe fears are growing that stimulus from the tax reform plus the global goldilocks we are seeing at the moment, would suggest that maybe the u. S. With the rate rise into the markets having to come more toward the fed dot plots. It would affect the dollar at the same time. Yvonne but it hasnt, we will talk about that later. Weve heard a lot of earning reports. And tax reform. Jpmorgan talking about rates down to 19 . The windfall, not that its priced in the markets just yet, do you think . Could we see more of an aggressive tightening in light of some of the developments . Neil although one can get very corporate very cared way of the corporate level with the tax changes, i think the underlying u. S. Economy is struggling to grow significantly. Wasnt trump opening hoping when he elected, there would be better performance. We might get 2. 5 , maybe 3 from the tax plan. I would not get carried away about the underlying power of the u. S. Economy. But it suggest the fed is increasingly behind the curve, is what i think the markets would want to see or anticipate more rate prices from the fed thenpriced in. That leads to the debate. If you get a more aggressive fed, you get an version of the yield curve. Interestinge are scenarios being played out in bond markets and Monetary Policy at this moment. Yvonne we had a guest who called the bond Market Scenario right now a teddy bear market. Does it feel that way right now . Neil i would say it is premature, because i think however one wants to dress up the constructive tax policy we have seen from President Trump and republicans this year, the u. S. Is very late cycle, so i think i could be back here with any year and we would be talking about when does the u. S. Slow and how bad is the recession that may be coming. Know the tax plan is going to extend the cycle, but it is not going to give it another five years or something. Betty you mentioned, even though we have seen pretty much unusual volatility throughout, throughouttility 317, we are very likely or possibly going to see some volatility spikes as we keep seeing the punch bowl taking away by different central banks. How disruptive do you think these spikes are going to be . Could they rise to the level of real tantrums in the market . Neil they could do, i think it depends on the type of cost of the underlying volatility. If it was a war in the middle east, that would have every asset class becoming more volatile. If it was something more around the fact that the market decided that that was going to be more aggressive than even the dot plots were suggesting, i would say there is a lot of leverage in many of the markets. We know at the moment, there are over 600 billion of leverage in the u. S. Equity market through margin lending. I think that is potentially where the pinch point in the markets would come from, we would have people who either took their profits, or had to leverage,y back their and that would then create maybe widening spreads in high heels and certainly more volatility across some of these leveraged etf that of become popular, critically with exposure to the u. S. Tech sector. Youy speaking of tech, mentioned business disruption will be continued thing this year. He talked about regulation on big tex companies you talked about regulation on big tech companies. How do you see that playing out, and how do you play that disruption . Neil i think what were singing now with the use of big data and lets say the changing Business Model is more and more, businesses have to be able to function on a mobile phone as low as the internet, we think that is still going to affect every industry. As i am sitting here in hong kong, the thing i am amazed about wandering around this great city in the last 48 hours, i did not have to use my credit card. I could buy everything on my phone. Disruptionre is coming across every industry, and in many cases, asia as head it hasgame in terms of Better Internet connections, i think many of the businesses are much more savvy. I have less to protect then some of the developed World Industries and companies who dont really want to move into the millennial world. Yvonne thank you so much, neil. We will leave it there. Thank you so much. Newext, j. P. Morgan says tax regulations should provide a windfall what they are implemented, a roundup of the latest Bank Earnings coming up. This is bloomberg. Yvonne this is daybreak asia. Be closelystors will watching citigroup, bank of america, Goldman Sachs shares this week as Third Quarter Bank Earnings continued rollout feud last week we had jpmorgan and wells fargo kicking things off. Wells fargo fell as much as 1. 5 before recovering some losses. Lets head to the wall with ramy. What happens, explain to us the numbers. With jpmorgan, the reason we are seeing this pop to record highs, a were in estimates with earningspershare. One interesting thing, we will be looking ahead in terms of Corporate Tax reform because of the top we are seeing for jpmorgan. Wells fargo a different story, there are litigation charges their links to the account scandal. First, the big weight from jpmorgan and other banks this week, trading revenues. We knew this going in, the same situation in q3. This is for 289. 4289. We know the numbers for fixed equity for jpmorgan. Than anyhart, lower other blue line, also have a billion half 1 billion less than what analysts were expecting. We were reporting on friday this could lead to job losses, so we will be looking ahead to see if that comes to fruition. We revenue was mostly in line, 1. 1 5 billion, but with that said, it is also scraping the bottom of the barrel. Lets flip up the chart come i want to show you the positivity for Corporate Tax reform. You were talking about this earlier, the tax windfall for these and other Ranking Companies come up right here, for jpmorgan and wells fargo, 90 for the Corporate Tax rate, down from 30 . That is interesting. Meantime, lets look at what is going to be happening in terms of citibank and bank of america. You can see that for bank of america, trading revenues are down by about 18 in the Third Quarter, but Bloomberg Intelligence things will be for the Third Quarter in a row for q4, down 14 down 30 . The same for citibank, trading all over the place, like a volatility a lack of a volatility in the past couple of quarters. Citibank report on tuesday, bank of america on wednesday. Forward to that. I had, u. S. Consumer prices picked up last month, we get the latest from kathleen hays. She will big and what that means for rate hikes, next. This is bloomberg. Is 7 30 monday morning in hong kong. Looks sunny to kick off the week. It is 6 30 p. M. Sunday in new york. Markets on friday closed at record territories, we talked about the s p up over almost 7 10 of 1 , the dow adding 200 points. Frigid temperatures again this weekend. I am betty liu in new york. Yvonne i am yvonne man in hong kong, you are watching daybreak asia. Lets get to the first word news. Ros Republicans Holding out hope of a deal for young immigrants despite President Trump declaring a bipartisan deal probably dead. Prospects for a deal were damaged by the president disparaging comments about african nations and haiti. Former u. S. Army Intelligence Analyst Chelsea Manning has confirmed she is running for u. S. Senate in maryland. Her campaign released a video showing images of protesters and White Supremacists in ins with the tagline we got this, she was rented clemency by president obama after sentenced for 35 years for leaking documents to wikileaks. The philippines president has rejected calls from allies to extend his term and cancel elections next year. While supporting moves to shift to a federal government. He said he wants a federal government with a Leadership Structure similar to france, with a president and prime minister. He said he also does not want to stay in power beyond 2022. Bloomberg sources say saudi arabias Sovereign Wealth Fund is answering borrowing from banks for the third time. They are said to have held talks with local and International Banks and could raise 5 billion this year. Stepping up its attempt to turn the pif into a global giant by giving it ownership of aramco. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you, were coming down to the market opening in tokyo and seoul. Inflation back on the radar, which helped propel u. S. To fresh records. Asia looks to gain as well. So the sophie commodities might be one to watch as well. Segmenthe break down by on the imap folks on the terminal, you can see materials are leading the sx asx 200 to a second day of gains. Gold miners holding your a fourmonth high. Have Energy Shares on the up gaining cap percent in sydney. Crude is pushed to threeyear highs by hot money. Oil traders will also have a lot to chew on this week, monthly reports by opec, and on tuesday, China National petroleum is offering its annual outlook for the oil and gas market. It is becoming an increasingly important event for the market. When it comes to iron pork iron ore, we have bhp. Bear in mind, there is a pickup given chinas growing demand for think for zinc. Selloff,at dollar Asian Traders, how will they latch onto that this monday . Support coming through asian currencies because of dollar weakness, they posted a fifth weekly drop on friday, you can see that on 6275. The dollar seeing its longest weekly run of losses for a list year. Soft brexit hopes and the rally on hits a Big Coalition hope in germany, we have it languishing at september lows despite the pickup we saw in the u. S. Consumer prices on friday. As the softer dollar helps spur asian currencies like the taiwanese dollar, we will see how that might weigh on expert earnings. We will get a pulse check from that report in taiwan, it will be a key Earnings Report on tuesday. Sophie thank you so betty thank you so much. U. S. Inflation accelerated in december, will it accelerate to a fed rate hike . Kathleen hays has a look at fridays Consumer Price report in a preview of the boj governors speech later today. Kathleen the slippery inflation number, it had a big effect on it made a loting, a of lost ground on friday. Traders took it seriously when the u. S. Consumer price index on the european your basis accelerated to 1. 8 in december from 1. 7 . Make no mistake, it is still a debate where inflation goes next. Our Economics Team says the core cpi the price is not heralding cpi surprise is not heralding the end of lowflation. There may be some hurricane affect in auto prices. They may have peaked. Medical goods prices were up sharply, but that is not exactly a cyclical indicator, is not expected to continue. Important,ry recovering from a debt last summer of 2017. Goods prices yearoveryear still in negative territory. The markets and reaction, the strong retail sales report for december it came out at the same time the cpi number came out is one of the reasons we saw stocks and bonds move. Also taking a look at the fact , the offer for a march rate hike jumped to 88 , they had been 74 before the number came out. What is next for the fed . Fedpresident of the philly reiterated on friday his view that to rate hikes with inflation staying low will be in the for 2018. The present of boston said again to a 2 price will target, he could see it in a range from 1. 5 3 . Maybe a dovish tone in there. Even so, if we want to take a look at an important term, lets do it now, 711. Was talking to about, the blue line is cpi, yearoveryear up to 8 . Will it keep going . We dont know. People bullish on inflation say it is rising and this will rise as well. This is the fed key index, the cbe core. It has been rising, it is at 1. 1 . This is the 2 level the fed target. Yvonne the bank of japan unexpectedly cut its purchases of superlong bonds last week. We are waiting to see if this is the door opening for the door opening. Governor kuroda is expected to speak today. Will he address it . Shall see,e everything ive heard from governor kuroda, he may not be quite ready for that but you never know. They did cut super long bond purchases on tuesday last week, that is 40 year bonds, and thats why traders are talking about a possible move to even talk about maybe tapering. The bank of japan long bond cut under the demand of the 40 auction on friday. That auction did it struck is demand since may have 2014, a bid to cover 3. 67, ¥3. 6 bid for every one bond they had to sail had to sell. If they are trying to steepen the yield curve, we will see what the boj is really up to. Very of watchers say they this amount, is not a signal yet. Mccain is reporting this weekend theirhe boj may upgrade fiscal your forecast for growth, we will see if that happens week after next when the boj meat. Everything, the governor kuroda drama, will he be reappointed . Most economists are betting they will, some say he better stay around and deal with the issues when the boj has the start reversing policy and moving on. Unfinished business. Kathleen, thank you, our Global Economics and policy editor. Big stories this week, we will cover them all on daybreak asia. But t coronas speech, not just governor kurodas speech, but chinas growth will be released. It has been interesting, i have 6482, we do see the growth target matching economist projections at 6. 7 . Store, but will that be enough momentum for china to continue on its Deleveraging Campaign . We are also expecting property prices, Industrial Production and investment in retail sales out this week, as well. We will see if momentum can continue. Betty that momentum certainly quieting. Of thed less and less hard landing in china, you hardly hear anybody talking about that anymore given the momentum. Speaking of momentum, big week of earnings in the u. S. , we heard ramy talk about this. Stanley, and on friday we have American Express and ibm. Seeican express, we will how if businesses doing compared to Jpmorgan Chase sapphire card. Also, ibm, a subtle management , the cfo wasek relegated to the Senior Vice President of global markets. That has me speculating it might be the that has me speculating in might be the step move into another position. We will hear about that and how tax cuts affect the bottom line. Much more to come, we will hear , joiningceo of lloyds us first on bloomberg. That is next. This is bloomberg. Is daybreak asia. Check of thek latest business flash headlines, bloomberg has been told bhp is itsng for 1 billion for 50 stake at an iron ore venture in brazil. Itswould continue to assume share of the remaining liabilities associated with the deadly dam break. Bhp is also seeking royalties for the life of the mind. Yvonne something says listing us mobile unit may be an option, but no decision has been made. That follows the Nikkei Asian Review report saying softbank may list overseas this year. Y may invest 560 billion ive hundred 60 million 560 million this year. Refrains urges all parties to refrain from using cryptocurrency. They are that inherently risky. The fact that they are used for terrorism funding has the potential to affect dental system stability and harm the public. Yvonne the annual asia financial form kicks off in hong kong this monday, bringing together leaders and leaders in politics and finance. Lets cross over to our correspondent, stephen engle, standing by with the ceo of lloyds. Yes,en thanks a lot, youre talking about inga beale. You might know it better as lloyds of london, but lets talk about asia first of all. The backdrop of the Asia Financial Forum every year is the financing for the big chinese initiative, belt and road. What opportunity do you see in asia in china in particularly . Inga there is a lot of opportunity in the region, when we look around the various regions in the world, the biggest growth and insurance is in asia, it is doubledigit growth, it beats anywhere else in the world. Therefore, it is a big part of our strategy. China in particular with belt and road, think about all of the construction that will go on the entire parkway of that project, it will be lots of opportunities for insurers. If we can step in behind with investment that is needed, in short the Major Construction projects that will be underway, it will be an exciting time for us and asia. Stephen improving Market Street Market Access for this part of the world . Inga when we look at protectionism, it is on the rise, and that is almost everywhere. It seems to be a sign of , a sort ofization feeling around the world. Nursing lots of protectionism from the u. S. Right through asia we are seeing lots of protectionism from the u. S. Right through asia. When we look at the number of trade barriers, they are on the increase. You have some liberalization going on. You have china opening up to foreign insurers, also india opening up. Within that, there is a lot of protectionist regulation that comes along, which means it is difficult to take that risk outside of those borders. We are seeing detections as being an overall global trend across the world. Stephen we will talk about brexit, but as you also expand beyond the u. K. And london, you are setting up an office in brussels, you will be diversifying where you can underwrite. Does asia take a bigger slice of the pie . Have always been london centric, but it has changed. Asia has been a big part of our growth for some time. We have two platforms, two offices in beijing and shanghai. We have about 300 million coming through that platform here in hong kong, we have been here many years, 200 million we write through here. Singapore is another big one, revenues of nearly 600 billion. And yet we opened last year. Very exciting india we opened up last year. Very exciting. How is it going on the comment with negotiations with the u. K. , we have the spanish and dutch may be taking a softer approach as to maybe the key eu negotiator saying, maybe a harder line, hard brexit. What are you saying . Inga still difficult to tell. We have lots of communication ,ith treasury back in the u. K. Theresa may in her government, but they cant give us any more certainty at the moment. What they are hoping to do is why the end of the First Quarter this year, to actually give us some idea about what the implementation. Look like the implantation period will look like. We still have plans to open up in brussels, that will impact the eu 2017 market, about 20 billion euros is this for us. It is. Had, if it is it is full steam ahead. Stephen early on when you announced you were opening in brussels in march, you were , butng about in the tens now it is in the hundreds, it will depend on the Financial Services of the Free Trade Agreement goes. Inga the Free Trade Agreement, often Financial Services are not included. We will have to see where the Financial Services comes within that, but there might be able to be some sort of Financial Services solution, because fundamentally, the whole of europe benefits if london is a Strong Financial center. That is why we are hoping there will be some resolution to this, even though the u. K. Maybe outside of the eu. Stephen you will still be able to have underwriting in london and business on the continent . Inga weve asked to have a delegation to london, and that also goes for a lot of the asset managers, may have thousands of Portfolio Managers giving advice from the u. K. On the basisng that the delegation will still be allowed postbrexit. Stephen theres been a lot of chatter, a lot of uncertainty about if there would be a second referendum. Is that simple is that something that is feasible, or no way . It might end up with a situation where they are worse off than today if they vote for the second time to remain . Difficult tont is tell in the u. K. , in terms of peoples views. Remain, weys out to said it would be detrimental to our Business Model, and we have plans to counteract that. Ill think at the moment the will be a second referendum, i think it is too uncertain and the government is already down the path of negotiating. Whether it is soft or hard brexit, will be really important, i think for the strength of the u. K. Economy going forward. Stephen you getting any indication that the eu officials will give some wiggle room on Financial Services given the fact that others like brussels or luxembourg, frank for it, they are fine for your business . Inga one thing for certain, there is no one Key Financial Center coming up to the top, apart from london. There is nothing particularly in germany, its not attracting one big Financial Center, Harris Harris is not doing the same. Youre going to have the completely frank completely fragmented Financial Center if we are not careful. The more fragmented it is, the more europe loses as a whole. We are hopeful that will be some that cannvironment accommodate Financial Services operations still on the global market. Stephen 42018 and looking back at 2017, one of the costliest years for underwriting, as of the natural disasters, a number of different hurricanes and the fires in california, what will be the impact . Inga we are always there to pay disasters when they strike, and 2017 was very crowded theyre a catastrophic. 2018, because of the uncertainty about what nature will do, it is difficult to predict. Is in a strong position, we have the strongers Balance Sheet we have ever had in our nearly 330 year history, so we are there to whether any storm. Stephen thank you so much for your time. Back to you, more from the asian Financial Forum on morning right here on over to be. Betty thank you so much, atphen engle thing there the asian Financial Forum in hong kong. Dont forget our interactive tv function, tv go. You can watch interviews like that live, catch up on past interviews and dive into any of the securities or bloomberg functions we talk about and be part of a conversation. You can send us instant messages right here in the studio during the shows. This is for bloomberg subscribers only, check it out at tv go. This is bloomberg. Yvonne this is daybreak asia. Betty the u. S. Has once again accused alibaba of selling stakes online, another sign of increased trade tensions. On a list ofluded notorious markets, but alibabas president says it is not an accurate representation of the companys efforts to protect brands and intellectual property. He called it flawed, biased and politicized. Shelling out 11 billion by 2022. The executive chairman says the company is now all in on ev, looking to sell 40 electrical models in total. They are shifting production of an suv for michigan to mexico, and they do not support changes to nafta. Something that drastic is not something we would support. Nafta could be modernized, we could get some currencies into nafta, but nafta has been in place a while and served this industry well. Hnas unit says it does not have plans to sell a subsidiary. They were suspended from trade on friday ahead of a major announcement, but the company says the subsidiary means a strategic investment. Been Flagship Airline has suspended since wednesday pending a possible announcement of a major asset restructuring. Yvonne plenty more ahead on the next hour of daybreak asia. Towill speak with economist get insight on the latest data out of china and what it means for regional growth. Were also coming down to the Fourth Quarter Growth Numbers coming in from china, expected growth to slow slightly to 6. 7 . We are still expecting the annual growth will see an uptick in the First Time Since 2010. The market open in tokyo and eoul coming up. This is bloomberg. We are live from bloombergs asian headquarters. Welcome to Bloomberg Markets asia. Economic data spur optimism on growth. Softbank says a listing of its mobile unit is an option after a planned ipo this year. York. M betty liu in new President Trump says an immigration deal is probably grows on keeping the government funded. Lord feeding Market Information to a swarm of japanese traders. Looks set to be an optimistic monday. Japan in particular as we count down to governor kurodas speech in tokyo. , 5707. Look at this chart we started 2017 on solid footing , Foreign Investors coming back 5. 4the market, buying billion of japanese stocks in the first week of january, the most since october, driven by index investors and etfs. Is hanging on this speech after we did see the boj cut down purchases on superlong bonds. If we see policy shifts, that could stall this momentum. Meetingve the boj board january 22. A report by nomura analysts saying any change in the boj stance has now been nearly priced into the japanese equity markets, shorts covered in the traders andor, so investors are prepared if anything is to change in the boj stance. They seem prepared for it. Closedare, u. S. Markets in asia, u. S. Markets close, but plenty of green. Sophie green is the case in seoul, korea and tokyo. We also have boj bond buying activity in focus. The handle. Ing at nikkei 22 five snapping a threeday klein, up. 7 , as is the topix, and the kospi extending fridays gains. 5 . Morning, thet this bank of koreas subject currency has pushed down export and import prices. Again, the strength of the currency and the dollar weakness is causing concern for regulators in south korea. A newspaper is reporting that there will be an announcement by the government this morning regarding cryptocurrencies. That could influence traders in south korea. In sydney, the index rising for byecond day, led higher materials, gold miners among the ast performers after capping fifth weekly advance. Gold prices holding near a fourmonth high. Energy producers climbing in sydney and tokyo with oil near threeyear highs. The aussie dollar under pressure but holding onto that handle after a fiveweek rally. The latest data that shows the biggest jump in oz elongs sense 2015. Since 2015. Ngs we do have the dollar trading near september lows after a fifth straight week of losses, so that could be something for Asian Traders to latch onto. Thank you so much. Lets get to first word news now. Thank you. Softbank says listing its mobile phone unit may be an option, but a decision has not been made come at that following a report saying the group may list softbank corp. In tokyo and overseas this year. The iranian tanker that burned for a week after a collision off shanghai has exploded and sunk. It went down sunday afternoon leaving a 10 kilometer oil spill. All crewmembers are presumed dead. It was caring almost one Million Barrels of condensate. Offssenger jet that skidded a runway in turkey came to rest with its nose a few meters from the sea. Some of the passengers say it was a miracle the plane was evacuated safely. Pegasus says there was no injuries among the 168 people aboard the flight. Prosecutors are investigating. Authoritiesrgency like reasonable safeguards to prevent false alerts. Fcc had says an investigation into the incident is underway involving state and federal officials. Hawaiians were sent into a panic following the false alarm which was a result of an employee pushing the wrong button. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you. Hope acans holding out deal can be reached to of allow young, undocumented immigrants to remain in the u. S. Despite President Trump tweaking the effort is probably dead and tensions grow about keeping the governmentfunded past friday. There is a lot of debate about these remarks about african countries the president made. Does any of this move the needle in avoiding this Government Shutdown . Hard to tell because the president is saying daca is dead and i will not allow this, and you have different republican senator saying we think we can work this out, but it is important they come up with some kind of deal because the funding runs out for the government on january 19, and they have to do something. The president has said that he will only allow he does not want this program extended, and obamaera program that he has been against, but a deal to allow young people in the states, undocumented immigrants brought to the u. S. As children, to stay there, to have some kind of compromise. And moreore complicated and there is more and more senators who say one thing and the president is tweeting another thing. Time is ticking. Time is ticking. It is at the end of the week. Leading up to these talks between north and south korea, the focus is on winter of them but how much is this clashed between the president and the wall street journal about i and id be thrown into the discussion . Another set of tweets the wall street journal reported the president said i probably have a Good Relationship with the north korean leader. He now says no, i said id as i would have come of futuristic or something, saying it was fake news that the wall street journal reported. The wall street journal is standing by it. They have a clip that proves he is all aut this sideshow to the question of whether the u. S. Will andicipate in any talks whether these talks ongoing between north and south korea, we dont know how large they will be either, but whether the u. S. Will engage. The president has been backandforth on this. Rex tillerson said he would be buting to talk himself, then that wont happen. And bashing south korea for suggesting that the u. S. Would join in. Yes, so it is unclear. The confrontational level has come down. We have not heard too much, the fact that the president is tweeting not about kim and nuclear war, but tweeting about. Hether he said i or id the conversation has shifted a little bit, at least for now. Every little bit helps. What about pushing european allies to make changes to the iran nuclear deal, basically delivering european counterparts an ultimatum they dont like and appreciate. Thats right. President trump has been against the nuclear deal from the saying thes now europeans must accept changes he wants or he will walk away from the deal. It is an ultimatum they dont want. They support the program. They say iran has been in compliance with the requirements of the deal and that if the u. S. Was to walk away from it, they would be further isolated on the international stage. The president would like this inore they have two go again 120 days and report to congress on whether he is seeing them in compliance or not. It is another example of the u. S. Going on its own come as they have been walking away from the climate agreement. Thank you. The latest in washington. Chinas credit growth is slowing faster than expected in december, signaling the cut and Financial Risks is starting to bite, however demand for chinese exports has soften the impact. Tom mackenzie joins us from beijing. It seems policymakers have time this 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 theyre willing to accept a slightly Slower Growth picture next year. Externaloment, this demand picture is helping to support them as they push up with this regulatory crackdown in china. We were just showing and as you were talking about the china gdp numbers this week will be very important for the Fourth Quarter. What are we expecting . What are the numbers and what impact might they have . The estimates are fourthquarter gdp will pick up 6. 7 , compared with 6. 8 in the Third Quarter. The first two quarters will be notched up 6. 9 . The world bank and imf saying 2017 is looking like 6. 8 . Says heleague kitching thinks it could hit 6. 9 , so it will be easily above the target the government set for itself, six. 5 or above. We have potential headwinds in terms of pollution curbs being unveiled and continue to be pushed out, particularly in the northeast of china. Thetential slowdown in Property Market and infrastructure investment. One key area is this u. S. China trade relationship. Trump has 90 days to decide on whether or not to impose tariffs on steel imports from china. That relationship will be key in the growth picture. Most economists 2018 will notch 6. 5 growth. We will get a Fourth Quarter and full your number for 2017 on thursday. Thank you so much. Tom mackenzie with the preview of chinese data. Still ahead, the future of motoring at the detroit auto show. We will speak to the ford chairman later this hour. No hard landing for china according to our next guest. We look ahead. This is bloomberg. This is Bloomberg Markets asia. I am yvonne man in hong kong. The coming week will give investors the earliest indications on the healthy economy, including the u. S. And china. Joining us now is the chief ific asian economist we will start with you. We had a preview on data in china. Also this hard landing scenario that seems to be going away in china. How much will they be affected by what the fed does . Fedou would think tightening is priced in and the consensus is three rate hikes presumably they have price this end. Theof the advantages for chinese is they still have capital controls. They have in different ways signaled a couple of possibilities. One, they could move to policy tightening, and they want to continue the credit deleverage. They have opened the door to a weaker or stronger currency depending on how they choose because they fix the yuan rate every day. They took out a noncyclical factor and signaled they will be yielding back more control. That gives a little protection. Koreaasian nations like meeting this week, expected to hike rates once this year. Will they be more inclined to move if the fed does raise rates and keeps going . That is an important question and nobody knows the answer. Thats right. That, as we were discussing, it seems like china is orchestrating this interesting dance between deleveraging and maintaining growth momentum in china. Do you think the fed will complicate the situation for china . Sure. It will complicate the situation. It has been so easy so far for everybody. It wont complicate it too much though. We are expecting a relatively , so as long ase that is the case, and we see no reason for that to change at the moment, except a more aggressive reaction to tax reform in the u. S. That is the key question. What china should fear is tax reform. Not so much to compete, but the impact on longterm rates. That would make it harder for china to grow while and deleveraging. More in depth on your view of the fed this year, right now markets have gradually raised their rates. For three rate hikes definitely march, may be, but possibly december. We got that core cpi on friday, 1. 8 , moving higher, and the blue line on this chart. Low. Ore has moved up off a you have a sanguine view on inflation and you dont see the fed moving aggressively, but is there a risk of more sustained upper momentum in inflation in both indexes if the fed is inclined to move three or more times this year. This year . Reformepends on how tax impacts the economy and how much more growth we see out of that. If that were the case, especially core inflation given what we see, we still have a 70 price on brent. With that it is hard to see over blowing the target, but core inflation is the key. It is not our baseline scenario though. Should the fed allow the yield curve to invert . We have less than 3 longterm rates treasuries, so we only have 50 basis points and it is already a slight inversion. That is right. That is not what should happen. Full employment, tax reform, growth coming, it should not happen. Happened, you not have this risk of massive dislocation of Financial Markets in the u. S. And massive implications for the world, including china. I want to talk about the china data with credit. It seemed like it was a big mess when it came to social financing and money supply as well. Can they still achieve around 6. 5 growth when you have m2 growth below 9 . Hit his it has been a while since i looked at them. It is cloudy. Ofexcludes of the chunk credit created in china outside those channels. We see much more shadow banking and some forms that were not included have the time social financing was to find, so i would argue it is growing faster than we think. It is deleveraging, but deleveraging at a lower rate. It depends on how you read it. If you think about whether de bt is accumulating, just as the speculating. It is that is all. Which is acute relating. That is all. I dont think it is enough to say china cant reach its growth target. There is still plenty of stimulus out there. Another big picture question for china in 2018 is exports and trade. We know of a lot of china was theare arguing 2017 year we got global complacency because there was no trade war, but this is the year it will start flying from both sides. This chart shows china exports to the u. S. They continue to move higher. Their imports are rising as well, but much lower. At the same time, the trade lines, these turquoise it is hard to say maybe it is topping off, but this is the thing the u. S. Will be focused on. Is that a risk to china and growth in your mind this year . It is a risk. We cannot forget that over time the u. S. Is less and less important for china trade. Is blooming in exports is emerging markets. That doesnt mean that the trade relations with the u. S. Will not have knock on effects to other markets, and that is why this is a major risk to china. China is also without being too intentional showing it can take. Easures it can weaken the renminbi. Counterouncement on the cyclical factors, the pboc may not want to see that in the future. That is a signal for the u. S. More than anybody else. Yes, we are getting in a much more heated environment than last year. Just getting lines from tokyo with a governor kuroda speaking at a Branch Manager meeting, talking about the growth picture in japan here it he says the economy is expanding moderately and they expect cpi to pick up towards that 2 target and japans Financial System at the moment remains stable and they will continue easing to reach that price target. Pretty much squares what we saw with last week with the boj cutting down on long bond purchases. Do you see any sign of a policy shift from the boj . We cant focus on how many jgbs they buy because they are buying other stuff, etfs, and on top of that, they have to targets, the zero price target, and the quantitative target, so we cant know how many jgbs they need to buy. It depends on longterm rates. As u. S. Longterm rates go up, they dont need to buy. Basically i would not focus on jgbs. I would focus on the inflation issue. If they see inflation coming, i would think they can actually exit. One thing i wanted to add, japan has the largest Digital Economy in the world. Because thertant larger the Digital Economy, the digitizationout of , so free access to services and goods you would not have otherwise. An inflation pressure for japan, bigger than the u. S. , so i would be cautious with exit. Thank you so much. We will leave it there. Fromhief asia economist natixis, those lines saying japan is expanding moderately, but the boj will continue easing to reach their inflation price target. Coming up, Masayoshi Son listing a mobilephone unit in an 18 billion call. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats 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. We are kicking off the training way, just look at the mood in the yen. Mood in talking about the 2 target to adjust policies to keep the momentum for that 2 target and he actually sees the cpi to pick up towards that target, no timeframe yet of course but we do see the yen strengthening. Ease towill continue to reach that target. It looks like we are seeing the stabilization of the currency, in the meantime, lets get to the first word news with aslinda. R h haslinda young immigrants are holding out for a deal despite President Trump saying that it is dead. Prospects for a deal were damaged by the president disparaging african nations and haiti. Analystelligence Chelsea Manning has confirmed she is running for u. S. Senate in the state of maryland. Her campaign released a video showing images of protesters and White Supremacists and as with the tagline, we have this. Grantedearold was clemency by president obama after being sentenced to 45 years for the declassified documents. Arabia is considering borrowing from banks for the first time, the Public Investment fund says to have helped local and International Banks and could raise about 5 billion this year. Todi arabia is stepping up turn this into a global giant by giving it ownership of ram tell in what could be the was biggest ipo. The rally may come under pressure this week, sterling jumped on friday after spanish and finance ministers agreed to the for a deal that gives u. K. Closer to the eu as possible. They make for cold water on the deal. They told us the insurer is still plenty for praise it. We are going full steam ahead on our plans. This will look after the business from the eu 27 markets. About 2 billion euros of business for us. Posted ahead, this is going to be a hard brexit, we will be up and running by the first of january, 29. 9. Times you have a asian markets are shaping up. We have been talking about those moves in the end. The dollaryen is the slowest since lowest since september. We do have that they yen movement. We have more pressure coming through on the dollars. Picking, the kiwi also up momentum, take a closer look at the yens move. Theo have traded moving to september party. This is 11084, this is key support through which it does maintain momentum below that. We could see the 110 handle and when you think of the current space, that is looking more like a blip. See that the koran you want is trading at the chinese level since 2014. The currency we getting a foothold after officials warned of stern steps in case of onesided move. We do have it hovering around that 1016 level at the intervention point by korean authorities. The one that has taken its toll on expert prices which fell to. 1 in december and import prices also flipped last month offset this. Er one we are seeing companies with stakes and exchanges binding relief, you can see that could is up. Cacao vidente lost over 44 over a fourday slump. Look at what is moving the doubt in tokyo. U. S. Softbank providing the biggest boost on the back of its latest news, the stock was upgraded to jp morgan but when you take a look at the biggest ones, we have still stocks under pressure and this group is sliding for a fourth day, this is after the president spoke on issues last thursday. Betty we will watch although shares and movements. Looking at softbank, gaining by thatost, we are confirming it is considering listing is Japanese Mobile unit. It is im an 18 billion ipo this year and we will bring our asian reporter was been following the story. With the nikkei reporting that this is happening in the company saying no decision has been made yet, what do we know . You know the extent of our know so far. Company might sell as much as 30 of its mobile operation and this is not counting the broadband operation. The listing may come as early as spring. Apparently new york is also under consideration but they say it is also only one of the options and nothing has been decided yet. Why now . Why would it make sense to do this now . Everything a step back, it is known for making very risky bets and a lot of that was the acquisition of vodafone. This earned him a discount, the company has about ¥19 trillion worth of assets but the shares are only worth 9. 8. Investors and analysts have speculated that one of the quickest ways to lock down that value is to lift a portion of the mobile phone unit and the business is very healthy. It has been a cash cap four years in the First Six Months of the year, a generated 8 billion in revenue. Growth has grown and you have news of possibly a fourth disruptor so perhaps now it is as good a time as ever. Does this have any connection to softbanks bond vision fund . Month 100 billion a vision fund. That vendor is pleasant and saying that he doesnt think of softbank as a telecom company, it is just a means to an end, a much Broader Vision for investing around the world and he has been quite busy in the past year making investments for robotics to dna analysis to artificial intelligence, certainly have a more cash would help him potentially raise more than funding. He did say the vision fund could be one one of many. It investors will be watching citibank and Goldman Sachs to see them continue to vote out, j. P. Morgan and wells fargo kicked off and they climbed to a new record and this is as much as 1. 5 . Lets go to ramy inocencio. What happened here . Is interesting to see this disparity. A lot of analysts are saying forget the Fourth Quarter, look ahead to what is happening with tax reform because that is going to be the potential boon for banks across the board. Drum,e been beating the this is this right here, trading revenues from the Second Quarter and Third Quarter into the Fourth Quarter. Load to the year and year year on your past. For j. P. Morgan, trade revenues, even remember i brought this up on friday. Income revenue, without we would get 2. 7 have 500 million less than that. That was a drop of 34 relative was expected,that equity revenue came in a little on par, 1. 1 5 billion is scraping the bottom of the bottom of the barrel but as i said, there is positivity looking ahead with Corporate Tax reform, lets flip the bar up right here and look at that. J. P. Morgan and wells fargo, we have expecting the Corporate Tax analysts be at 19 , thought that would be around 22 or 20 for both of them. That is relative to the 30 they are now. This boon could equate to a 7 billion windfall moving ahead. Come onto the side of the screen and i will show you these bloomberg terminals. And forfor citigroup the past two quarters in a row, this has been negative growth, we know this, we are expecting that when this other white bar fills in, we are expecting that to be similar because this has been the name of the game for trading revenue over the past few quarters. Also, let me switch this up. This is bank of america, no change when you see the two quarters fall, Bloomberg Intelligence is same in the spells and you could be 15 . So possibly a third consecutive quarter for fixed income revenue there. Finally, looking ahead to revenue, growth and earnings per share, 6253 is what we are looking for on the Book Bloomberg chart. We are seeing this rise for both citibank and bank of america, it did slip into the positive only just recently by looking ahead, Bloomberg Intelligence is a we could see a rise in terms of revenue for city of about 2 with earnings pressure coming up at 6 there and as for bank of america, that could rise 6 . Andings per share may rally doubled it does do that, it would be the best amongst his peers. We look ahead to citibank on tuesday, we have bank of america on wednesday and Morgan Stanley and Goldman Sachs, back to you. Related to financials, acorn cryptocurrencies, we are getting more headlines here and south korea, the government will decide on a Crypto Exchange shutdown bill after a full discussion, there is a petition out among south korean citizens asking that those exchanges not be shut down. South korea has responded to illegal crypto currency trading and theyre going to begin a real live system in cryptocurrency as planned, also, research and Development Investment in blockchains, it is really quite interesting. Governmentsot of washing crypto currency markets for Money Laundering and other nefarious activities but also every person you talk to in bitcoin says the technology is quite valuable and should be purported by both the private and the government market so we will be getting a decision by south korea later today, up next, back in the u. S. We will hear what for motor chairman say about profitability and the oil industry as Oil Climbs Higher in the detroit auto show, this is bloomberg. Is daybreak asia, i am betty liu in new york. Yvonne i am yvonne man in hong kong. Here are the rumble seeming outdated, at least to carmakers, the executive chairman of ford spoke with david at the auto show. Timeless Vehicle Technology is already going into cars and it will help make vehicle safer. Happening so ay lot of this technology is going into vehicles today, connected vehicles are starting to happen, vehicle stop at two other vehicles, all these technologies we have been talking about are starting to happen. So a lot of the pieces of autonomy are going in even as we are sitting here and they are all about making vehicle safer and more pleasurable to be in. So we are not going to wake up it day and had a switch but will be very incremental. But we think the payback on this will be tremendous when we get here, it will change our Business Model in a way that we think is going to be really amazing. Limit theiciency will prophet. The profit per vehicle could be really remarkable, the uptime will be higher, it will be replaced quicker than current vehicles. We had our own projections and we wont know until we get there. What about our emotional connection with a car . Your family is associated with this, this is the darling of america. We all remember our first car. That wont go away. It wont go away, we all wont have a v. It will have its place but as long as you and i are around, the fun of owning a vehicle will still be there that we may not want to drive it every day. If we live in an urban area, you might prefer and probably will prefer to have a vehicle seamlessly take you to a want to go but even that vehicle, we are inused on and you get that av, it is uniquely your av. Have an experience that was really unexpected. Willld born today they have to learn to drive in 2034 . They may not have to, they may want to. There is a joy and driving, i feel it, i love to drive and i was lebanon everyone will agree with that so we have to talk about nafta. You have talked to the president. Have you got the sense of where we are with nafta . Government n to do something addressed it would not be something we support. Modernized, we could get some currency certainly but nafta has been in place for a while and it served this industry well. How bad they would it hurt the Ford Motor Company . I think no industry. Our industry was built around nafta. It depends what you mean. There is a continual me, there is a complete blowup and then there is a modernization, something we would not be opposed to. Again, this whole industry was really built around the notion of nafta and i think we have to be very careful with how much we tinker with it. Finally, go back to electric vehicles, what will happen to the oil industry . What will happen to cobalt and lithium . It is the effect of other industries with the state of transformation . Clearly there will be a fact, far be it for me to speak for another industry. We have been in business 114 years, there have been tremendous shifts over those years and my greatest hope and my greatest focus is making sure that ford is at the forefront of all that for another hundred 14 years. Ceo jimwas ford hackett. On at thelot going detroit auto show, motor show. There is another auto gathering called the tokyo auto show. What is the easiest way to turn a 50,000 car into a 900,000 car . 600,000 swarovski crystals on them. And a nice of them light pink dollar. The japanese know how to dress up their product and this is one way to do it. It is not just outside, you can also get the shift lever started with them, you can get your pink leather seats, it is amazing because as you mentioned, this will be costing about 900,000. You might want a more affordable option if you dont want you can get a license plate for free. It runs about 55, pretty affordable. This is customization for the 1 . 0 isaac i was get a new iphone cover. That is what i will go for. Christ coming up next, the japanese twitter known as the locus because of the way traders insights,ed for the we will look at the mystery, who is behind this account, next, this is bloomberg. This is daybreak asia, i am yvonne man in hong kong area tha. Betty i am betty man in new york. This is in a statement on saturday, Bank Indonesia said Virtual Currencies are very risky and inherently speculative. The fact that they tend to be used for Money Laundering has the potential to affect Financial System stability and harm the public. The chrysler ceo says the company can double profit within five years by explore the potential of the jeep brand. He told Bloomberg News that jeep could grab us with 20 of the global suv market, the equivalent to 5 million deliveries per year. He also says the u. S. Tax cuts could further boost profits by about a billion dollars per year. Hedge funds are secondguessing their optimism on copper, Money Managers have cut their best for the first time in a month, growing demand may be overwhelmed by new supply for my. Copper prices jumped more than 30 last year as the Global Economy improved. And now to this great story about anonymous twitter can switch is any japanese traders this was all by more people than the bank of japan for more social reporters, joining us now from tokyo. All who this tweeter is . That is the biggest mystery of the story, we have no idea who he is or who she is. We spoke with a couple of days traders and other individuals in the financial profession to see if they had ever met him but no one is ever actually seen him before, from the jokes that he makes and the tweets that he posts, we think you might be in his 40s but that is about all we know. As we know, we dont know if it is a him, it could be a her. Tell us a little bit about the tweets that this person has made, why are they so important what are japanese daytraders being to this twitter feed . He is not for tweeting Market Trends moving very fast. Localld other thing like and foreign media websites, financial newspapers, stock he wouldclosures and between get out into the public within minutes and even second so we could see how daytraders really look to him for market news on a public place like twitter. I think it was interesting that the doj announced a interest rate, some people ,aying this post sent my life this really speaks to the trend of the micro bloggers out there. Are there any others like him or her on japanese social media . Yes, he is only not alone in this feat, there are many other twitter users in the japanese poster world that would market moving news onto the platform so you can really see how social media is becoming a part of our Financial Markets today. It is very interesting, we will watch that. The clue is coming up from that twitter taylor twitter handle. That is our social velocity reported joining us from tokyo. Time for a quick look on what is coming up in the next few hours. Heidi, someone who is always on social media, what are you watching . Haidi we had the big picture stuff, speaking to none other than david lipton who is the International Monetary Fund First Deputy managing director will be live in hong kong in the asian Financial Forum. Here are the big risks when it comes to asia, is it the fed, the policy misstep . Is it these tensions between north and south korea . We do have the talk of the next hour, these talks between north and south resuming as well after reports that south korea is bringing the u. S. Some concern side,t comes to the north relatively speaking about expectations, where the dollar is going and the impact on asia. Lot is going on in the two hours. That is it from daybreak asia. Continues with heidi next, standby for Bloomberg Markets, this is bloomberg. It is 12 00 p. M. In sydney, 9 00 a. M. In hong kong. This is Bloomberg Markets asia. I am haidi lun. Asdi the yen at a high governor kuroda moves away from describing easing efforts as aggressive. Asia extending on Global Growth optimism. Softbank one of the winners after confirming it may list its Japanese Mobile unit. A