It is just past 9 00 a. M. In australia. Betty its after 5 00 p. M. In new york. Im betty liu. We have breaking news right now. Exchange,ptocurrency japans Financial Stability agency, fsa, will be issuing an improvement order to coin check on monday. This is according to the nikkei. This follows that fascinating story that arrested on friday evening wear coin check, essentially came out and said they were packed. A group of hackers took 500 million in Digital Currency out of the cryptocurrency exchange. Really, a story that highlights how risky it is to be in the cryptocurrency market. Risk in a litany of risks if you are a crypto there. It unveils how much in terms of the propulsion of cryptocurrency around the world are being stolen by hackers. This is one of the biggest heist in history. 500 million worth of digital tokens per you can argue whether that is real or not, given the rise and fall of bitcoin. Still, another risk to think about. Exactlyour money, not safe and cryptocurrencies. In the meantime, we will be talking about money exchanging hands. This week will be hugely busy for bond and stock investors. Employment data on friday, Janet Yellens last meeting on when wednesday. President trumps state of the Union Address on tuesday. Lets get a quick check on how we ended trade on friday and the equity markets. Certainly, ending on a high note. The dow up 223 points. 224, really, making up for losses. The nasdaq forging ahead. Up 1. 3 or the s p adding on over 1 . That is setting up for a solid start to asia trade. Solid indeed. You have to wonder where this rally is going. Lets take a look at how the said up setup is. Trading is underway. About 3 10 of 1 . The kiwi dollar trading at 73. 44. The u. S. Dollar sinking to its first week in eight months. Pretty much intact. So much negativity when it comes to big green back at the moment. Features in australia, this is how the sydney open is setting up. We are seeing an upside of 30 points. The aussie dollar at 8104. We have had this seven straight weeks of gains for the aussie dollar. This is the longest rally in 18 months. It is bringing out the bears, saying it will likely trade closer to 77 . 70 rather than . 80. Perhaps this is as good as it gets. Lets get the first word news with remy. Thank you. Good morning. Said to haveks are taken a step forward with negotiators agreeing new measures to combat corruption. From talks that were said year,ed to conclude last may extend into 2019. It leaves substantial work for future meetings and mexico city at the end of february and washington the following month. Leasedi eight won a new of a surprise victory over u. S. Tariffs. The u. S. International trade commission ruled against boeing saying come of the american Aviation Industry has not been harmed by sales. The vote blocks a Commerce Department decision to impose duties of almost 300 on bombarding a sales in the United States. It has jumped the most in almost two years to its highest in three years. The man said to be saudi arabias richest businessman has been freed from detention in riyadh with his companies urging the most since 2014. Were wase prints held in a corruption crackdown. He described his detention is a misunderstanding. Expects control of the holdings are President Trump has compiled more pressure on u. K. Prime minister theresa may by saying he would have handled brexit differently. It will he would have been tougher on brussels. May was hoping for endorsement but he offered and onions unflattering assessment. Conservatives have given may 3 months to raise her game. Zach would it be the President Trump what it be the way i would negotiate . No. I have a lot of respect for your Prime Minister to i think i would have negotiated it differently. I wouldve had a different attitude. What would you have done . Said trump i would have the European Union is not cracked up to what it is supposed to be. I would have taken a tougher stand in getting out. Ramy global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Haidi thank you for that. The world bank has named an outgoing ceo in the rev. Allen is here with the details. What do we know about incoming ceo . It is surprising that they the better updates of getting someone from outside. External candidates are considering what are going what is going on. That mightve been a different haidi an argument. For sure. He does have a good pedigree. He has been in the business for 20 years. He has held a number of Senior Leadership roles in that time. Appointed thes Group Executive of retail banking. He is leading the development of Digital Products and services. On paper, a good candidate. A rev, be replacing in who will retire before the end of june. Does this mean, does is provide a clean break after the scandal surrounding the breaches of Money Laundering . Paul that is very much what haidi was talking about. The bank currently facing more than 50,000 breaches of Money Laundering town or terrorism. Each one of those breaches carrying a potential fine of 21 million. No one is suggesting common well banks can do that. It is certainly a serious matter. This relates to cash deposits of half 1 billion made under those banks. Police alerted them to the risks. It failed to act after that. The claim runs over 700 pages. Used byunts were being convicted terrorists who tried to move money from australia to lebanon. The australian new pace picked newspaper spoke to a number of people. One said, its time to press control alt delete. That sheaid he said stands out as a good executive. There is concern he has been tarnished. As heidi mentioned, some interesting questions about the optics of this choice. Interesting indeed. Thank you so much. Paul allen on commonwealth. That news i just broke a little while ago. President trump delivers his first state of the Union Address on tuesday. Hoping to build momentum for infrastructure and immigration legislation ahead of crucial Midterm Elections. In davos, he pitched his America First policy to a skeptical audience. Lets get to washington editor, ross cries me. See some ofsting to the newspapers calling him sedate when he came when it came to his speech. Might he carry that over to the state of the union . There has been many times where President Donald Trump has given a measured speech from a script. People talk about a pivot from his persona of their persona. It is very likely he will that role on path, tuesday in the state of the union. Its a crucial speech for him. President trump has often talked about his base. Ofknow he has a loyal base some 35 , 40 of voters are thinking he is doing a great job. Looking ahead to the Midterm Elections in november. In november, he has to broaden that out. It seems like this is a great chance for him to talk to tens of millions of merit of americans. It is one of the mostwatched events of the year. Bipartisan, make a pitch to middle voters, and getting more people on his side. Haidi do we have an idea of what issues he will be tackling . Very highstakes. Likely to differ from what he said to Congress Last year and other major speeches he has given since then . President trumps speeches, including the address to congress, was quite dark and very partisan. This is likely to be different from that. He is expected to talk a lot about the infrastructure plan that he hopes to move forward with this year. That is a plan a lot of democrats may be on board with, perhaps not in quite these in the specific way the Republican Party would like. That could be an area of interest here it certainly spending money is always of common interest. Spending money on roads, bridges, airports, definitely something President Trump would be hoping to get a lot more people on board with. Aboutalso likely to talk immigration plans that was released, or at least the bones of it released last week. The proposal for the socalled dreamers and the path to citizenship for that population. Lessy, take a brighter, negative view then he did in his inaugural address and other speeches. What wethat is probably are looking for. And also to take ownership of the economy, to point out to American People that the economy is doing well, economic growth, the stock market, and try to get voters to associate those positive trends with President Trump and his administration. Betty the Republican Party, some controversies with steve wynn now over the weekend, resigning as the chairman of the rnc amid the Sexual Harassment assault allegations. That going to taint the Republican Party, but also the president . Well, steve wynn, as you say, very quickly resigned, within about 24 hours of these allegations becoming public. There is probably some benefit from the fact that he exited the stage quite quickly. Has been successful as a fundraising champion for the Republican Party. Of ais definitely a bit blow coming into the Midterm Election year. Obviously, the Republican Party asts to be able to support many candidates as i can and target as much funds as it can. Incumbent,lnerable, and open seats. I dont think that paints President Trump himself, he obviously is tangled with Sexual Harassment allegations repeatedly. That he isw specifically tied to the steve win situation, however. Betty thank you so much a we will leave it there. Bloomberg editor in washington. We will have much more on steve wen, President Trump, and they davos trip. Also, state of the union, when we speak to the former Senior Adviser to bill clinton. How a later in the show, massive cryptocurrency heist. Spotlightutting the when it comes to exchange security. This is bloomberg. Haidi im haidi lun in sydney. Betty im betty liu in new york. Youre watching bloomberg daybreak australia. More on President Trump state of the Union Address on tuesday. A moment, former george w. Bush Administration Official says is a chance to hit the reset button. I think he has to be careful about appearing to be too selfcongratulatory. This is a moment to complement the American People and congress for their cooperation with him on tax reform and regulatory relief. This is a moment where he can reset, but the reset depends upon him following through in the weeks and months ahead. For more on what is expected, we are joined by the head of Public Affairs. And a former Senior Adviser to president bill clinton. Richard was on the white house staff for six of clintons state of the Union Addresses. You know all the preparation that goes into this. Richard i remember it fondly. Betty im sure. Hard to get those memories are. Do you agree with him that this is a chance for a reset . Every state of the union gives whoever the president is an opportunity to reset. Depends whether you need a reset or want a reset. I think betty does he need a reset . Think there are things going well for President Trump. It is an opportunity to remind the country, with a huge television audience, what those inside. He will talk about tax reform, he will talk about the low unemployment rate, the soaring stock market, but there is much but is going wrong. I think that is why you see karl and, a very important highly acclaimed republican strategist, talking about the need for a reset. Congress is completely dysfunctional. You have the special counsel betty as usual. Richard i think it is even more dysfunctional than usual. I think they are not only not getting anything done, they are not even speaking to each other. Hanging overall of this is a special counsel investigation, which mr. Trump seems to be making worse for himself. Betty according to the report. Richard but even according to his own twitter. He engages on twitter around these issues. Can stick totrump the script, we know, he was a reality tv star before he was president , right . President whoa understands stagecraft. To the extent, and for the number of days he can stick to the script, you will have a couple of good days and a reset. Betty he might be able to turn things around among those who let me pull up a chart. I think it is quite interesting. G btv 689. We have all been talking about how Consumer Confidence is going up in the u. S. President trump would take credit for that. It is more interesting when you break it down. Here is the red line that among republicans, consumer comfort is steadily increasing. Breaking away from the mean. When you look at democrats represented by this aqua blue line, certainly has been going in a different direction. Had a spike in the last few weeks. Considerably down. How much should President Trump couldhe about that, and this state of the union, anything he does in the next few months, change that around . Are many Economic Indicators that are clearly doing well. It is debatable how much credit President Trump is entitled to for that. He is the commander in chief, he is in charge, so he will take credit. Obviously, he deserves credit. The person in charge gets to take credit and deserves it. But i think what you see in that study and on that charge, there are Many Americans who, even though they see the economy is doing well, they are very worried about the direction of the country overall. They are worried about the National Security issues that we seem to maybe now have come off the brink, but we are at the brink of a conflict with north korea. There are other issues, the issues with russia are not just about obstruction of justice in the campaign, but they are about what spying russia is doing on us and how impactful that has already been . There are a great many issues that are of great concern to americans. The country cannot continue to prosper if we have an administration and a government, and an washington establishment that is in chaos. Which is what this president seems to thrive on. Haidi to that point, i want to bring up this chart. Rarely see this divergence when the economy is doing well and president ial approval is diverging, going in the opera opposite direction. Why do you think this is the case . The previous speeches we have seen from him have been very dark, foreboding. Is he going to have to sound more optimistic this time around, given he has been saying, america is great again . Richard we will see how it looks. His advisers have signaled that he intends to try to project optimism, to project bipartisanship, and to try to get try to unify the country around him. But, as we saw in the inauguration, the inauguration is another time, probably the last time the president gave wouldpeech where you think he was trying to bring the country together, but it turned out to be a dark speech. It is all in the eye of the beholder. Optimistic persons bipartisan approach could be another persons very dark view of how things in the country are going. Was davos a success to President Trump . Richard i think it was a success. He just gave a lot of those people the biggest tax cut of their lifetime. When you cut corporate taxes died 20 or more, and when the stock market some of the u. S. Stock market and other stock markets are soaring, and when largestide over the regulatory rollback, perhaps in globalation, ceos and billionaires are going to be pretty happy with you. I think that is part of what you saw. I also think he gave a very pragmatic, reasonable speech. The speech he gave in davos was the speech that romney could have given. Open for business. America first, but america not alone. , very moderate, mainstream republican president couldve given. I think it was wellreceived. For President Trump and the big problem for his administration is that everything gems around. He is not consistent. If he could stay consistent for a wild, he would have 48 while, he could have some success. Davos on friday, state of the union this week by next week, who knows what we will be talking about . Haidi is there any indication there is some are a grant when it comes to nafta or tpp, or maybe we will see a softer walk back when it comes to his rhetoric on trade . Richard i dont know if it is regret, so much as the right hand doesnt know what the left hand is doing. Think what we see being played out in the changing landscape of the president s position are they different positions of different people within the administration. We see it in trade policy, economic policy, we see it in social policy around immigration. This immigration plan he will put forward in his speech, and that he put forward last week, offers the socalled dreamers a path to citizenship, which is what the democrats have wanted for a long time. Yet, is very difficult on enforcement, it suggests a 25 billion trust fund. An incredible, Staggering Amount of money we would set aside. 25 billion to build a wall. It will not happen. It is a bit of political stagecraft to make the president seem reasonable, and also appeal to his base. Haidi richard, a pleasure to have you. Head of Public Affairs and a former Senior Advisor to the clinton and Administration Clinton administration. Plenty more to come on bloomberg daybreak australia. This is bloomberg. Haidi a quick check of the latest business flash headlines. Softbank is close to selecting advisors for an 18 billion ipo of its mobile phone unit. The newspaper says Deutsche Bank and j. P. Morgan may also be involved in the offer, which would see 30 of the of it listed. Noble groups longterm ico research as creditors should reject what it calls a naive restructuring plan. Icebergs 2015 critique of nobles accounting mark starts a start of a crisis which has brought the company to eat the brink of collapse. Haidi a big week for tech earnings. We will look at what investors can expect. This is bloomberg. In 20 ints open 30 minutes time in sydney, it is another more, humid summers day. I am haidi lun. Betty lucky you. Im in new york, it is a chilly, wintry day and you are watching daybreak australia. Lets get to the first word news with paul allen. President trump welled up his trip to the World Economic forum by saying america is open for business. It was a clear pitch to business and political elites. Lowering and employment and what he called the most significant tax cut in history. The audience lined up to pay respects. The economic form ended in an atimistic mood, it ended with burst of selfcongratulatory the idea thatnd stock markets have every reason to continue the run. The s p 500 gained about a quarter since last year. Indications some that wages are actually rising and some prices have started to , and even medium to longterm Inflation Expectations , we have been so weak in the , they aree of years now slightly picking up. Paul the chinese premier joined his counterparts from korea and japan for the first talk since 2015. Its an indication of warmer ties between the three countries and sets the stage for reciprocal visits. Neither of the others have been to japan since coming to power. Relationships are constrained by territorial complaints. Beijing will close 1000 factories and markets by the end of the decade as part of a plan to move what are called noncapital functions out of the city. Authorities will spend almost 2 billion to shift businesses and operations deemed nonessential into the suburbs. The initial targets also include universities and hospitals. Founder has died at the age of 91. His company grew out of a boyhood business. His war that was estimated at more than 51 billion. Thatrevolutionized the way furniture could be shipped before being assembled at home. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Check of thek markets this morning as we kick of the trading week youd we are seeing some upside in new week, the start the kiwi dollar at 73. 44. We have continued. Continued downside with the u. S. Dollar, close to threeyear lows. Take a look at futures in australia, also some positivity, have a percent higher it comes to sydney futures. The aussie dollar 81. 08, gaining an Early Morning session. Notesorth pointing out from aberdeen and schroeder saying in the next 12 months, we will see the aussie dollar trade closer to . 70 than . 80. This rally bringing out some of the bears. On lets get some more on what we should be watching with adam haigh. Digitalmillion stolen currency is a string of a lot of implications, and risks of the crypto trade. Security has been an ongoing concern around cryptocurrencies since the start of these really, and the evolution has been around whether you can protect enough with digital wallets and this heist has thrown this all completely out of the water. I think the regulators across the water and south korea who have been clamping down and scrutinizing this industry to nthins degree the degree, this is more fuel to the fire for them, they want to make sure this is a safe way people can invest. Lets have a look at the bloomberg and a look at what this did on friday, this is 9438. We saw a big pullback, and coin check did not realize it has gotten hacked for many hours, and then it had a press conference very late on friday in the try to reassure people and said they will reimburse people who have had digital tokens stolen. We found out the computers they were using were actually on what we call hot wallets, already linked to the outside world, not isolated. It seems like a fundamental flaw, many analysts are saying. You have seen a bit of a recovery in prices across the cryptocurrencies markets, but today, a lot of the companies that trade in the ecosphere, the rustic companies in the crypto sphere, they will be getting ready in an hour or two. Betty also gains in chinas equity markets, they are rallying. Is there any sense that could be a possible reflection in the rally . I suppose the run up we are seeing in chinese equities is just one function of a very sed global rally in a greece this year. Very pronounced gains in many parts of the year. What is specifically interesting about chinese shares the trade outside of the country is you are now even seeing uptick from some of the laggards that have not been participating in the rally until now. If we dive into the terminal of have a look at this chart, 9440, the shows you a proportion of stocks trading at 52 week highs. There is a massive spike in january, it just shows you the appetite for some of the underperforming stocks that are now joining into the rally. Ultimately this is down to three factors that still remain very much in place at this point, economic fundamentals and china are continuing to do very well, and often surprising upside for investors, valuations remain eightompelling for shares, as we call them, Hong Kong Listed companies in chinese company, and inflows. People will continue to buy into the equity trade, its a most selfperpetuating because the more money flows in, the more momentum trade kicks through on some of these stocks. For now, weve spoken to the likes of jpmorgan asset management, very comfortable with this is a longerterm investment and Research Companies highlighting that fundamentals remain strong for eight shares. Betty thank you very much. Adam haigh there. A big week ahead for tech stocks in particular with microsoft, facebook, alibaba, outlook, alibaba, apple, alphabet all reporting. To the walltraight with ramy inocencio. Ramy you have to take a breath there saying all of those names coming up this week. Just taking a look, i looked at the earnings analysis function just now, if you are an investor in tech stocks, it might be of interest to you that they have surprised the most to the upside apart from just one s p 500 sector, the energy sector. Looking into this, we might see volatility swings to the upside when these stocks do report. First, faced took facebook. In terms of revenue and earnings, expect a revenue popped by about 42 , but that could be the slowest pace since 2011. Who is not going to take 12. 5 billion in terms of revenue . Thing is as revenue. The white bar is price per advertisement your per year, it has been rising the past three quarters. The blue bar is falling, that is the number of advertisements delivered, the advertisement load. One might circumvent the other but analysts are thinking this might compensate in terms of the higher prices facebook is getting even though they are delivering fewer advertisements. We will want to watch this as that drops on monday, january 31, when the numbers drop. Amazon ahead to amazon, had a better than expected Holiday Season in the fourth quarter. A lot of people coming out on top of that, Consumer Confidence in the United States and around the world is up. Were looking at the Financial Analysis function, the orange bar is the online store revenue, this makes up about 60 of revenue for amazon. We are expecting this to rise even higher because of the better than expected holiday sales. Also to note in green and yellow, green is amazon web services, about 10 there, also highest in revenue since the fourth quarter, and then retail services, that is in yellow and it is the services for prime members. Were seeing some interesting positivity when that falls on thursday. Finally to apple, i dont have to say so much on what were focused on with apple. If you have an iphone, of course it is the iphone x. But we are looking at in terms of the euro in your Revenue Growth for the phones, look at this, when youre looking at it in terms of the year on year Revenue Growth for the phones, look at this. Was almost the reports we have heard of the iphone x demand waning, we will want to see what happens here. We also have the iphone 8 and eight plus. , google and alibaba a bunch more coming in the week ahead. Chockablock when it comes to earnings reports this week. Other than text, a huge number of other earnings reports coming out, also a packed agenda when it comes to the macro, data front. We have a look ahead to a very busy week. Big events on the front with janet yellen and donald trump. We also have earnings and the direction question. The market again, the dollar coming off the worst week in eight months, he s p was up the fourth week, can it do it again . Earnings have been fueling the rise, and lets go into some of earnings in the spotlight, mcdonalds, mark, boeing to name a few. Mcdonalds in the spotlight because it is expected to continue to gain market share for a fast food giant, and of about 5 in the fourth quarter, samestore sales domestically. Boeing in the spotlight, one of the leaders in terms of market rise leicester, up 16 year to date, and industrials is the sector investors are calling into right now. They are expected to report big increases. And Deutsche Bank, will they continue to be reporting some of the gains we have seen with other u. S. Banks . That will be interesting, u. S. Banks have reported tax windfalls. Lets go on the bloomberg, tax reform is a big question. This is 9149. Tax reform snapping a twoyear trend, it is a question here. One of the big things is there is a lot of talk about the current market melting up, but it is a rise of equities without a fundamental reason. This rise has everything to do with the fact weve had a rise in earnings expectations. Or than 80 of the Companies Reporting so far have been continued to come in way ahead of expectation, and that has been a shot in the arm for the holes. Packed weekll be a this week, the state of the union and Janet Yellens final fed meeting. Su right. Talking about the oil question, we have thats taking off like 20 taking off like crazy. Up above 65,oil 66 per barrel as of friday. Reckitt record numbers of bullish bets being place. One of the questions, lets go vixen bloomberg, is the s p 500 moving together for the Third Straight week. We have not seen that happen before. Very unusual. Can this continue, simultaneous increases in the gauges is no reason for concern that they have shifted again, using vix options as a headache as a hedging tool. So much for you that, watching the fix as always. Here in sydney, watching cba shows. There is a News Conference going you are looking at live pictures addressing the they are taking questions as cba names a new ceo. Of hisbig task in terms mandate to try and rebuild public trust in terms of cba and the broader banking sector, which is hit with which has been hit with a number of scandals, the latest of which were breaches in antiterrorism and monday and Money Laundering laws. A big challenge to the incoming ceo. Forced too was announce retirement in august. Up, negotiations gaining steam with anticorruption agreements. The latest from montreal, next. This is bloomberg. Good morning, i am betty liu in new york. Haidi im haidi lun in sydney, you are watching daybreak australia. Nafta talks have taken a step forward with measures to take on corruption. Measures could drag on for months. Our correspondent is at the talks in montreal. On friday, there was a sense of optimism from negotiators. Is that still be moved still the mood . They think so, but they cant really be sure. Aser a week described productive talks, it really comes to what u. S. Trade representative think. Today,lighthizer flew in met with negotiators in a congressional delegation in montreal and did not talk. Walked iny grim as he and out of the hotel, but members of the congressional delegation appeared more upbeat, the chairman of the ways and means subcommittee says he thinks there has been a mood shift and people have been more optimistic. Democrat whatigan he thought of the ambassadors mood and the idea that they might pull out of the talks. Theres been a lot of talk about whether the u. S. Will walk out of the talks, any impression from the ambassador . Think you solve problems at this point by walking away. If it gets to a bad position, but i think there needs to be continued work. The u. S. Will stay and work . I think the was will continue to work. Michael still, he says a lot of work needs to be done, particularly in areas like agriculture and autos. Like you mentioned, a productive week, another chapter closed in fighting corruption and 90 of chapters on telecommunications beenigital commerce have done. There is a feeling among canadian and mexican officials that they can break the still made in the talks, it is really up to the United States. We will hear from investor lighthizer tomorrow after meeting with his canadian counterparts. Sales after the kind of pitch speech we have from President Trump of the weekend in davos, is there a sense he can be having second thoughts or at least a softening when it comes to pulling out of trade deals like nafta and tpp . Michael theres a lot of hope that is the case. He has been under tremendous pressure from interest in the Business Community and agricultural community. Not only did a congressional delegation come here but a group of American Farmers are in town to meet with the negotiators personally and make their case that if there is a pull out of nafta, it will hurt the u. S. Economy in her people in their specific areas. That is all getting to the president and there is hope among the other two countries and their delegations that he may allow talks go on. He might suspend them for a while to get past the u. S. And mexican elections, but not cut them off. Betty overall, how are people handicapping the outlook for the negotiations . Michael in general, they think that if the investor is satisfied with the counterproposals canada tabled when they met in doubles, they can keep making progress good they will meet in mexico city next month and there is another round tentatively scheduled for washington in march. At that point, we will know whether they want to suspend talks and pick them up after the u. S. Midterms. Take no mistake, even if they are slightly optimistic, this is a 2000 page treaty and amount and a lot of work to be done and we are a long way from what needs to happen. Betty thank you so much, our policy correspondent in montreal on nafta negotiations. Watch as live, see past interviews on our interactive function, tv. You can dive into securities and functions we talk about and become part of the conversation. You can send us instant messages, yes, during our shows. Her bloomberg subscribers only, check it out on tv. This is bloomberg. Haidi Suntory Holdings said it is looking to expand in emerging bloomberg was told in dollars but now is not the time for more m a in the country is looking to integrate jim beam and training instead. Have rateraising, we hikes almost four years in a row, including this year. Plus, we are increasing budget to train people. In a few factories and so forth. Will you raise wages again in 2018 . Yes. By more than 3 . We are working on it. Let me explain a bit, that includes training people, because we have to prepare for the age of the 100yearold. That means they have to be healthy, which means they are very much motivated. We want to invest. You want to keep employing older workers. Yes, until 65. They have to see their future after 65, and they are going to feel relieved. Training is very important, as well as the rate hike. Bourbon could be the worlds whiskey. What is the Fastest Growing market for bourbon right now . Japan. Also somef growth, parts of europe. How fast can you increase sales in china . We are expanding little by little. 10 12 every year, because we are almost nothing. Want to expand in china and we are very much committed. What is involved in expanding the footprint . We are going to ecommerce, for example, that is the whole story in china, as well as the offbrand activity. It has been four years since you bought jim beam, is it time for another major acquisition . I dont think so, we are doing very well. The first phase of integration has been so successful, in terms of overcoming cultural differences. We launched a corporative japanese gin. The second phase is we want to brush up our brands and go into more emerging markets like china, mexico, whatever happens through nafta, and india. The reason i ask is because the liquor industry keeps consolidating. Boughtis week, bacardi patron. Did you look at those . We are always checking in our radar. Are you better . I think we are better, in bourbon we are the key leader in the market. ,e want to be wellequipped after margaret aftermarket acquisition skill set. Thats what were doing. We have to be hugely successful, and we will go into the m a. At this moment, i dont think we should. If there is one thing you could have in the suntory prefall Oil Portfolio but you dont have yet, what is it . Tequila. Ceo speakingntory to us and davos. That is it for us, we will get all of the action in daybreak asia. This is bloomberg. We are live from bloomberg asian headquarters, welcome to daybreak asia. America isrump says competitive again and called the world to invest in its future. Davos ended on a confident mood. Delegates say the stock market has every reason to extend their run. Betty and boy they are, i am in new york, it is just after 6 00 p. M. In nafta talks make progress montreal but there is concern that negotiations may drag on into 2019. And