Says those affected by last weeks hack will be reimbursed. Betty it is a gamble on the bitcoin markets, but sometimes with the ball wrong you feel like you are gambling if you are buying into the bull market. Busy thisbe extremely week, lots of data in the u. S. , john stayed on friday, the fed meeting, Janet Yellens last, and i want to pull up this chart. 9379, it is really on peoples minds. He melt up so to speak it shows you historically that if you look at what happened with other bull markets, this is the one that ended up in the crash in the 2000s, and this is the 1920s will run that ended in the huge crash in 1929. We are not even there yet. If youre looking at patterns, were not even in the melt phase these longer bull markets were in, it could be some reassurance for those who believe we are at a peak. Yvonne its quite interesting, you might not be able to call it a melt up. The stats are incredible, the s p has been traded within 5 of its record high in 399 days. We have not seen Something Like that since march. Youre finding less and less reasons to sell, even if risk is just around the corner. They are not tapping out just yet. Lets look how things are faring in asia, some optimism in new zealand. We see stocks of 4 10 of 1 on the and a 650 p or the kiwi holding at the moment. Australia, the dollar back into the doldrums. The aussie rallying for a seventh straight week, bringing out the bears, 81 against the dollar. Some see it closer to 70 and set of 80 in the coming months if the fed keeps raising rates. 287 for the aussie 10 year yield. Japan, lots of focus on that crypto hack with coin check. Strengthening 1 as the boj said we have to backtrack, this is not a change in the inflation outlook, we are Still Holding below 100 94 dollaryen. 109 four dollaryen. Lets get the first word news. Paul the nafta talks have said forward, butp talks that were supposed to conclude last year are now expected to draw down drag on for months and may extend the 2019. None of the issues of the issues at the result, leaving substantial work for future meetings in mexico city in february and washington the following month. A new lease of life with a surprise victory over u. S. Tariffs, that International Trade commission ruled against boeing. It blocks a Commerce Department decision to impose duties of bo 300 on a barnier mbardier sales in the u. S. Casino billionaire steve wynn quit as Top Republican money raiser amid accusing accusations of Sexual Harassment. Paid more than 7 million to a manicurist room said he manicurist who said he pressured her for sex. Will joine premier his counterparts from korea and japan in the first joint talks since 2015. The summit is an indication of warmer ties between the three countries and sets the stage for reciprocal visits by the chinese president and japanese Prime Minister appeared minister. Relationships have recently been strained by territorial issues. Coin check says it will reimburse any clients who lost money in last weeks 4 million theft. It will repay all 260 customers hit by the theft of the dough coins. T of crypto operatee a license to as part of japans new laws on cryptocurrency. New ceo for cba. He will lead the banks response to allegations of preaching terrorism finance laws. The last ceo announced his departure last year after the Money Laundering scandal broke. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Betty so much. President trump delivering his first eight of the Union Address on tuesday, hoping to build momentum for infrastructure and immigration legislation ahead of crucial midterm elections. If followed his trip to davos, where he pitched his America First stance to a skeptical audience. Lets get to ros krasny. How did the speech go down . It seemed to be welcomed by those who thought he might be coming off the deep end, he was quite sedate. Ros absolutely, and sometimes President Trump can surprise onlookers by basically sticking to a script and reading a very measured and upbeat message. As you said, he said now is the perfect as you said, in davos he said it is the perfect time to bring your business to america. He met with a lot of leaders. He put them through the ringer a little bit, what are you doing to help the u. S. . He was there as trump the salesman, not necessarily a statesman. But certainly not a bomb thrower. I think it was a positive message to come away with, and one he is very likely to carry into the state of the Union Address on tuesday night. Betty thinking about the state of the union, weve been hearing from some strategists including karl rove, who said this is an opportunity for a reset. Will this help reset some of his strongest critics . Ros i think on both sides of the aisle in the United States, there are people who are very intractable in their views, both pro trump and antitrump. I dont think his critics will be won over by this, there are so many people in the middle that we dont hear from that or even whenngton reporters fan out across the change, their votes can depending on what they hear from politicians, and if President Trump presents kind of a positive vision, if he is successful in the state of the union and over the next few months in making a connection in folder minds between the in voter minds between the strength in the economy and the stock market and his administration, he could be a lot more successful. He has a bit of an uphill battle because historically, the party that controls the white house loses seats in the midterm election. He knows and his advisers know theres a lot of work ahead. But pocketbook issues are not to be dismissed. Clintonsw about bill it is the economy, stupid so that will probably be one of the major themes President Trump addresses. Betty as we look ahead to november yvonne as we look ahead to november, steve wynn was big news over the weekend. This damage the fundraising apparatus as we get closer to midterm elections . Ros a very good question, there is so much money in american politics from both parties. They need the millions and millions of dollars in fundraising to buy political advertising, their get out the vote operations. Steve one has been very successful as the rnc chairman to boost fundraising efforts. , we hereinitely a blow in washington are waiting to hear what might be tapped as the new finance chair. We dont have a strong sense of that yet. , justdefinitely a blow months before primaries and a lot of campaigning starts. It just remains to be seen whether it is another element that makes it an uphill climb for republicans is your this year or something they can power through. Yvonne can President Trump drown out some of the noises that come from the Republican Party when a gets closer to the state of the Union Address . Ros i think if he sticks to the script, and one of the interesting things on tuesday will be who is behind the president s speech, is it more nativist elements and his administration that have been behind some very tough immigration demands or people who might have that sense of what the president can do to move more toward the middle. Its also a bit of a test for his political base, they have been so loyal but there has been a lot of conservative commentators not happy recently with the moves President Trump has made, possibly to give a pass to citizenship for dreamers. A lot of conservative lawmakers and political talkers have been very angry with the president. To some extent, they are not going to walk away. Youre not going to walk away from President Trump and phot them across and vote democrat is they dont like the element of his policy. I think probably President Trump has more to gain from the middle then losing on the right flank. Yvonne ros, thank you, a good preview their. D. C. Itor joining us from we will have special coverage of the state of the union, 10 00 a. M. Wednesday if you are watching out of hong kong. 9 00 p. M. Tuesday night in new york, you dont want to miss that one. Just ahead, we will have the outlook on the Global Economy and why the fed wont make its next rate hike until june. Atty also, barnier gets new lease on life. Also the latest from the nafta negotiations. This is bloomberg. This is daybreak asia. Week ahead on wall street will be marked with major events we have been talking about, including the last Federal Reserve policy meeting under janet yellen and President Trumps first state of the Union Address. We also have Earnings Data also coming up. We have the outlook right now. I dont even know where to start. Su we have big events coming up with trump and yellen we will get to in a bit. Earnings continue to be a driving momentum. The dollar coming off what was the worst week in eight months, the s p 500 continuing to power to record closes what that creates a direction question. Lets go into some of the companies likely to drive the s p higher if we have strong numbers. Mcdonalds, daimlerchrysler, Deutsche Bank among the companies reporting. I focused on three here. Mcdonalds continuing to gain market share according to analysts, jumps in samestore sales for stores at least of the year up 5 in the Fourth Quarter. Continues to blow it out in terms of earnings per share. It was one of the highest performers in the dow last year. Investors continue to pile into industrials this year, up 16 year to date. Reporte expected to increases. Deutsche bank, what will they have to say on the banking front when so many u. S. Banks have reported huge windfalls because of tax overhaul . Speaking of tax reform, lets go to 9149 on the bloomberg. Of twoyearap trends, a firm s p 500 eps estimate, this line here, rising dramatically. You heard betty talk about the melt up phenomenon. This is not a melt up when it is tied to fundamentals, and very strong increase in eps estimates withalysts try to catch up a strongerthanexpected earnings, it is helping pull the s p higher at this point. Yvonne still a lot of questions where we go from here. We see stocks and oil trending higher together, can it continue . Su lets talk about oil, it tells the story, you have oil at about 66 here in new york in intermediate trading. That is fueling record bullish bets by Hedge Fund Managers in new york and london, breaking all records in terms of the net long trade come up with one analyst said continues to be the sweet spot. Enthusiasm in the oil market breaking all caps of records. A lot of interest in the direction of oil. In terms of where the s p 500 and volatility go, lets go into the bloomberg, 9432. What this chart shows us is the s p 500 and vix moving together for a Third Straight week, thats the week behind us. This rarely happens, its the First Time Since 2013 that the measures have moved together. The simultaneous increases in the gauges are no reason for concern but it shows investors have shifted to using vix options as hedging tool betting on more volatility head. Atty we have got a lot this week, earnings, Janet Yellens final fed meeting. Su lets talk about some of the econumbers, jobs numbers coming out, expected to show an increased, also jobless rates maintaining at about a sevenyear low. Spending numbers will be out. Consumer spending numbers will be a major reflection of the holiday sales, which are expected to be firm and showing increased. We also have manufacturing activity, which is continuing to be robust according to economists surveyed by bloomberg. In thealk about trump, spotlight this tuesday in the u. S. As he delivers his first state of the Union Address. He is expected to highlight infrastructure, a plus for him and has moved the market. Also to strike more of a bipartisan tone even though he came in rather roughshod. He is realizing the last run through with the budget negotiations that you really need a bipartisan consensus. That is the tone he will hit and we are interested to see what he has to say about nafta and other issues, the immigration front. On wednesday, we have Janet Yellens swansong, her final fed policy meeting, the fed members are expected to keep rates unchanged by the end of the week on saturday, her one term concludes. That will be goodbye to yellen, a positive record. Ready to change hands to the new guy. Betty trying to make it a seamless as possible. Thank you so much. He remainsroda says confident japans inflation will continue to grow toward the 2 target at the World Economic forum in davos. Was asked to explain why explain how japans inflation story fits with what is occurring in the rest of the world. I think there are two factors responserather slow strongces and Economic Growth. One is the universal common factor like globalization, new even amazons affect and so forth. Inflationm may make rather subdued. This is a universal factor. Second, japans specific sector specific factor, as i said in my opening remarks, after a 15 year long deflation from 1998 2013, deflation mindset to expect prices and wages to of rise, and this kind and is notnot strong so easy to eradicate. From japanese households as well as companies. Indications some that wages are actually rising, and some prices have already , and even medium to longterm inflation expectations, which have been so weak in the last couple of years are now slightly picking up. Whichre are many factors make the 2 inflationary target so difficult and timeconsuming, but i think we are finally close to the target. But more of an update, governor kuroda there speaking at the World Economic forum. Yvonne to forget our interactive tv function, tv , you can catch up on past interviews and dive into the functions we talk about through the morning, plus be part of the conversation. You can send us instant message during our show, any questions for our guests as well. This is for bloomberg subscribers only. This is bloomberg. This is daybreak asia. Yvonne following some of the breaking news we saw a couple of hours ago, the Commonwealth Bank to replaceatt ormond the outgoing ceo. Lets get the latest from paul allen. Get us a little more detail on the incoming ceo. Paul he certainly has a very strong banking pedigree, 20 Years Experience in banking and wealth and retail areas and has been with Commonwealth Bank since 1990. He was appointed the Group Executive of Retail Banking and has been leading the bank in terms of its new products in Digital Services as well, in that respect, a very good choice perhaps to lead the bank into the future. Lets look at what they had to say. Is also important we maintain the momentum already underway, upgrading and strengthening our governance, account ability and Risk Management continuing to deliver Strong Financial performance. Banking is going through a period of Significant Technology and competitive change and i am left to organize the to lead the organization as we transform. Was matt ormond cormyn about an hour ago. He will take over on april 9. Betty does he represent a clean break . Will he be a differentiator enough to put the scandal behind the bank . Paul probably not would be the short answer to that question. Just to bring you up to speed with what was going on last year, the Commonwealth Bank facing or than 50,000 allegations currently of Money Laundering and breaches of counterterrorism laws, each one of the charges carries a possible fine of 21 million. This is to do with Commonwealth Bank failing to monitor the deposits into its automatic teller machines even after it was alerted by police to the risks that could be used for Money Laundering and counterterrorism. The claim is now more than 700 pages. Was the head of the Retail Division as this was going on. An australian newspaper last year, i spoke to a number of analysts, some of whom said perhaps it is time to press lete. Olaltde betty [laughter] thank you so much. Up next, a live update on the nafta talks in montreal. This is bloomberg. It is 7 30 a. M. Monday morning in hong kong. It is a chilly 1, 9 degrees celsius. Asianutes away from markets open. Betty i will take that compared to new york. It is 6 30 p. M. Sunday in new york, markets closed warmer from the bulls. He much green across the s p, up over 1 on friday. I am betty lou in new york. Yvonne i am yvonne man in hong kong, you are watching daybreak asia. Lets get the first word news. Ramy good morning, first up, President Trump welled up his trip to the World Economic forum by saying americas is. His speech was a pure pitch to his this and political elites into humansis including lowering unemployment, cutting regulation and what he claimed are the most significant tax cuts in history. Her have been rumors of a walkup but the audience lined up to pay respects. The Economic Forum ended in optimistic mood, it came to a close with congratulatory backslapping. Delegates said the level economy is a good shape and the stock markets have every reason to extend the run. The s p 500 have gained about a quarter since the start of last year. Meantime, reports from china say beijing will close 1000 factories and markets by the end of the decade part into the decade as part of moving nonessential functions out of the city. They will spend almost 2 nonessentials the into the suburbs. Its includes universities and hospitals. Saudi arabias richest man has been freed from the tension in riyadh. From detention in riyadh. He and others were held in a corruption crackdown. As ascribed his detention misunderstanding and we are told he expects to remain in control of kingdom holdings. Has diedounder of ikea at the age of 91. His company grew out of a boyhood his nose selling pencils and seeds from a bicycle. His worth was estimated at more than 58 billion. Ikeas flat packaging revolutionized the furniture business. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am ramy inocencio. This is bloomberg. Yvonne thank you, were counting down to the market opening in tokyo. Sophie is here. Ahead. A big week have reports, we also have the cryptocurrency heist in japan. Sophie you might also see more jitters and that space and japan, where looking to see if there was any stock exposure to Digital Currencies, they have perhaps come under pressure after point check shut down on friday. After coin check shut down on friday. It said it will use its own capital to reimburse customers, but angry investors at their offices demonstrating their displeasure at the latest moves. We are watching specifically for a remix point, the president said it will list cryptocurrencies in an effort to win over customers from coin check and bitcoin is applying licenses to list new coins and provide the new Wallet Software to hold the assets. It is expected to take 10 days to two weeks. Betty turning our attention to sydney, aussie stocks starting the week of a stronger footing, falling from what we saw on friday in the u. S. What is moving in australia . Sophie after the week of gyrations in australia, we are seeing a better start this monday following the u. S. Stocks rising the most since march on friday, taking a look at sydney stocks, up about 2 10 of a. Ercent on the imac breakdown Energy Leading advances today, property shares are under pressure, down about 8 10 of a percent. Slide thisials also monday, but there will be focus in the space, especially in mining. Releasing its output for the Fourth Quarter, and shares are up ahead of that. And lets check in on the Commonwealth Bank after they announced a new ceo. He is going to take on the role from april 9. Currently, to buys a holds and four cells on the stock, shares are up this morning but down yeartodate 2 . Yvonne thank you. Cryptocurrencies, another hacking incident in japan has led a two big swings in bitcoin and renewed calls for stricter oversight of cryptocurrencies. Check wasd coin ked for almost 2 million million. T 500 james joins us, the boj has been somewhat subdued about cryptocurrencies. Tell us more about their position at this point. James we spoke to the head of fintech center, this was before the hacking had happened. The boj is not very enthusiastic about getting on the cryptocurrency bandwagon. At the moment, cryptocurrencies are regulated as a means of the boj isut interested in what is happening with blockchain specifically bitsy no reason to start issuing their own Digital Currency or cryptocurrency. Some other Central Banks, sweden is considering doing that, some sort of crypto coin, but the boj has no intention of doing that at any time in the future. Betty cash is essentially came in japan. Why is it . Credit cards, in money, all of these options for japanese consumers, why is that such a tough sell . James it is an interesting question. Along withess germany, they are the two most cash dependent Major Economies the world. Is strikinglyage low here, and it has been very difficult to use a foreign issued credit card even five years ago. The japanese people seem to have just a liking to use cash, i guess there is less ability to trace it. There also stores the dont accept credit cards or any type of noncash payment. If you going to some restaurants lots of even now, traditional hotels, none of those accept credit cards. There is a supplyside at where people just dont use anything but cash and also demands, people prefer to use cash and have cash on hand. It seems to be that a lot of people have cash at home, they stored in their mattress or in a safe. There are some people that say that as a way of avoiding taxes or to make sure the government doesnt make government doesnt know how much money you have. Just prefer to use cash, there is a lot more cash in japan than most other Major Economies. The amount of cash circulating here is about 20 of gdp, which is huge compared to nations like sweden, where it is about 1 of gdp. Whatever the reason, people prefer cash, and the boj says thats one of the reasons why dont see demand for a boj cryptocurrency. When people are even using credit cards, its hard to encourage them to make a jump from cash to a very new digital money. Closely is the central bank watching these developers with bitcoin and other cryptocurrencies . Concerned boj is very that japan doesnt fall behind on the new fintech boom, theres a lot more investment here than in many countries. It is miniscule compared to what is happening in the you ko europe or the u. S. In the u. K. , europe or the u. S. , but they are very cautious about doing something themselves for Digital Currencies. I dont think the hack last week will do anything to assuage their concerns about Digital Currencies the future. The government regulates the means of exchange for Digital Currencies, that did not stop things like this happening. On one hand, the boj will watch what happens other places but i dont think it will be leading the charge on introducing new technologies. Betty all right, thank you. Our japankorea economy editor. , back here in the u. S. And the nafta talks in canada, they have taken a step forward with agreements on measures aimed at preventing corruption, but there is still concern negotiations could drag on for months and maybe until next year. International economics and policy correspondent mike mckee has been in montreal all week. On friday, there was talk of optimism, is that still the case for the weekend . Authorities say they think so but they cant quite be sure. ,t has been a week of progress the canadians and mexicans say they are pretty pleased with the way things have gone, but it will come down to the way u. S. Trade representative Robert Lighthizer feels. He arrived here today, spent the day talking to u. S. Negotiators and a congressional delegation here to see what was going on. Dide left, he looked grim, not say anything to reporters, just headed out. However, members of the congressional delegation told us they think there is some reason to be up beat. A republican representative from washington, chair of the house ways and means subcommittee, said he senses a change in tone and says that people are starting to feel optimistic. I talked with a michigan democrat who said he doesnt think Robert Lighthizer is going to be pulling out of the talks. There has been a lot of talk about whether the u. S. Would walk away from the talks, whether the president wants to stay in. You get any impressive impression from the ambassador . I dont 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. You think the u. S. Will stay at work . I think the u. S. Will continue to work. Michael he says there is still a lot of work to be done, particularly on autos and agriculture, but theyve made a lot of progress closing another chapter in the treaty, there are 89 of them, and a number of others. We will find out tomorrow whether that is enough to keep the talks going. Light heiser and his counterparts from command from canada and mexico will meet and hold a press conference to let us know about the future of the talks. What themembering president said about threatening to pull out of nafta, does it seem like President Trump is having second thoughts . Someel there is speculation he may be because he is under a lot of pressure from the Business Community in the u. S. The chamber of commerce taking a strong stand in favor of nafta, and also from agricultural interests. Along with the congressional delegation there is a delegation of u. S. Farmers and down. They came to lobby personally on behalf of the treaty because they are afraid of losing access to canada and mexican markets. The president , a former gettingman, may be the to understand it would have a significant Economic Impact if he ended the treaty. Yvonne you were talking about ambassador light heisers body language, i guess cool. How do people handicap the outlook right now . Interesting, very a congress and was asked about that and he said that right heiser light heiser is a curmudgeon and you can never tell what he is thinking. That might be some reason for hope. Davos, canada presented counter proposals to the u. S. Demands and he did not dismiss them out of hand and they are taking that is progress. Yvonne i guess the progress was was involving the barnier bombardier. How does this play into the decisionmaking right now . Michael its interesting to see how the ambassador President Trump view that, is it a loss for the United States that hurts our Competitive Position in the world or did boeing bring a bad case . Analysts tend to think the latter is true, boeing did not sell the same size jet as bamb ardier. Bomb if the boeing does not appeal, it probably wont have a major impact on these talks but he has made but it has made canadians happy. Yvonne thank you, mike mckee there joining us from montreal. You can get a round up of the stories you need to know to get your day going in this edition youraybreak, it is on number terminal and anywhere app. You can customize your settings so you can look at the industrys and assets you care about. This is bloomberg. This is daybreak asia. Yvonne a quick check on the latest business flash headlines. The sunday telegraph says softbank is close to selecting citigroup and modelo as he as key advisors for its mobilephone unit. Jpmorgan might also be involved in the offer. It also said softbank is considering a Global DigitalPayment System to take on paypal, apple pay and alipay. Time noble groups long restructuringaive plan should be rejected. This marks the start of a crisis that has brought the country the company to the brick of collapse. It is working with creditors to restructure about 3. 5 billion in debt but iceberg says it wont fix fundamental issues. Yvonne two billionaire brothers in india are accused of divergent, siphoning assets through a new yorkbased investor. That loanslleges from their financial transfer firm helped with a personal debt load. They have denied the allegations. Betty there are plenty of the big stories coming up this week and we will be covering all of them here on daybreak asia. On tuesday night, we will have on tuesday in the u. S. , wednesday morning in asia, we will be watching resident comes first state of the Union Address, hes asked acted to lay out the Administration Agenda for a year, including the midterm elections. Can he change the narrative going into the midterms . 6943, look at the chart, we are quite familiar with this. President trump is going into his second state of the union with his disApproval Ratings at a high during his term and his Approval Ratings near the low. Quite ay there has been few, not just among democrats, but maybe early supporters, quite a bit of this appointment among those folks. Interestingly, look at another 689, it shows were Consumer Confidence is. Consumer confidence is rising as represented by the white line. The red line, accelerating among republicans, as you can imagine, not so much among democrats. Butne certainly the case, he did strike a more conciliatory tone during his address in davos. Can he continue that in the state of the Union Address as they shift the focus to infrastructure . On thursday in asia, we will be watching the indian budget, likely to deliver like deliver good news as the government overshoots its targets in march. The budget for fiscal 2019 is also expected to look better, that the key issue is, can the pm put more money in the park it in the pockets of rural voters, they are struggling to make profits due to back to back droughts. This is 1013. Fiscal slippage. More to farmers without derailing the budget deficit target by next year . We have seen the pressure for modi since elections and his home state in december. To proclaimiled moral seeds, and that puts the pm and finance minister in a tough position. Week ahead for tech stocks , many reporting. Ramy inocencio has bloomberg charts. You to a recapt of where we are right now in terms of the earnings season, this is the earnings analysis function, you can see a lot of green on the board and that implies there is an earnings and sales price to the upside, something very good for investors. 133 S P Companies have reported out of 500. 1. 2 earnings surprise. We are talking about tech stocks. Surprise is beating that. Earnings up by 8 . The only other sector that is better is energy stocks. I will leave it at that, lets dive into specific stocks for you to take notice. First up, facebook, 331. Bumpe expecting a revenue for this quarter year on year. What could be helping that is what is happening in white, the price per advertisement. We have to talk about advertisement revenue. It is rising, up 35 . On the flipside, were seeing the advertisement load falling to 10 growth. Some analysts are saying this will compensate we dont have to worry about it. The numbers drop on generous on generous 31st, we will look ahead to that. This is the Financial Analysis function for amazon. Betterthanexpected holiday sales for the Fourth Quarter because everyone took out their wallets and pocketbooks to buy things for the holidays. Looking at the orange bar, that is the online store revenue, 60 in the Third Quarter. We are expecting this to rise even higher. For also looking at web services in green and in the blue, retails of scripture and services, that are your prime subscriptions. Apple, also, reporting on thursday. When looking at a open revenue about 11 year on year. Gross for the the allimportant iphone, and the low Single Digits in terms of growth. 2. 4 for the most recent quarter. Where we were in the 20142015 timeframe, this is when the iphone 5, iphone 6 all caps. We all bought phones and. I think a lot of people are holding off on the new phone, there is winning demand. Those are your three charts as we look ahead to a very big week in tech earnings. You are several generations behind an iphone. You can always find indepth analysis and the days big newsmakers on Bloomberg Radio. Or can download our app access it at bloombergradio. Com. This is bloomberg. Is daybreak asia. Betty a quick check of the latest business flash headlines. Yearpore topped china last to become the biggest asian investor in u. S. Commercial properties. Plunged 66 stments to just under 6 billion as regulators cracked down on capital outflows. A Sovereign Wealth Fund accounted for almost 3 of singaporean purchases. Yvonne the controversial over volkswagens omissions have taken another twist as the carmaker apologized for exposing monkeys to engine fumes. He said it was they said it was a lack of judgment. Ae trial was conducted by Research Group. The wall street journal says saudi arabia and advisers remain undecided about whether to trade shares in aramco. The kingdom has been warned that a new york listing could expose a potential lawsuit from shareholders and victims of 9 11. The company and riyadh fear the exchange alone wont be able to handle the surge in training from a soul listing. Much more ahead, we will talk more about policy. 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. Live at the asian headquarters. Im yvonne man. Welcome to daybreak asia. Story this monday, open for business. President trump says america is competitive again and calls the world to invest in the future. Davos wrapped up in confidence. Stock markets have every reason to extend their run. Bloombergs global headquarters, im betty liu in new york where it is after 7 00 p. M. Sunday evening. Name to ceo to guide the bank through moneylaundering allegations. Cryptors beseech the exchange in tokyo. The companies as those hit by last weeks hack will be reimbursed. Yvonne given the optimism we see in the markets, one big question we keep asking is where is the pain trade going to be . Be the focus as we look ahead to the fed. We have these treasury issuance as well. Wrapping up with a jobs report. This tracks the citigroup pain index for many currencies, it attracts the return of fx managers against currency performances. The yellow line is what we see for the dollar. We do see this weaker dollar trend, leading them to pare their long positions, we see closer to hitting that zero line. Closer to being flat. We can interpret it both ways. Other the one hand, this market not completely short. The dollar just yet. One thing you might have to worry about is the purple line, the position we see in yen. Short yen position remains unchanged beast despite the strength. We saw that squeeze on friday they were talking about inflation. He says, we are getting closer to the target. We saw yen strength in 1 . A lot of people trying to catch up with these with what the central bankers are saying. Betty i love that chart. Whether thees central bankers are losing control of the currency. Whether it be the dollar, the yen, or the euro in the ecbs case. That seems to be a common theme. Yvonne it certainly will be the case. Will we see any reversal when it comes to these currencies . It has been extremely net comes to the dollar and euro. Taking a look at how markets are trading, it seems upbeat. Sophie we take a look at the open. Upis looking upbeat with it 2 10 of 1 . The topics slightly under pressure. This is the yen, Holding Steady after its best weeks in september. The drop jump could be allowing for japanese equity bulls took amount of hiding. There in mind, last year, the topics and s p 500 rose together every month except for august we will see whether or not that trend continues. For a fifthins straight section session. Reported operating losses in the Fourth Quarter. Lets take a look elsewhere where we do have stocks in sydneys the week on a firmer footing, up 2 10 of 8 . The aussie dollar, climbing further above that 81 handle. It comes to the aussie that there are signs the aussie dollars longest rally in 18 months, could be bringing out the bearish fed. Looking to keep raising rates while the rba see to stand pack. It says the aussie it likely will trays trade closer in 12 months versus 80. Aussie stocks, we do have that in focus. The city has raised its target. In the commodities space, traders are going to be on the alert for a stack of big oil earnings. Companiesia, we have reporting output on tuesday. Jpmorgan has cut fortescue to neutral. Turning to gold, which clocked a six weekly advance on friday, they are betting the good times will last and a second month high. What this chart is showing you, that traders and analysts are the most bullish on gold since june. Especially after the dollar capped a seventh weekly loss. That is the longest stretch since 2010 p or with that goldbach is achievable in the next two months. We will see whether or not it can maintain that the menton. Yvonne thank you. President trump looking to build momentum for infrastructure and setgration plans as he gets to deliver his state of the Union Address. It follows his trip to devils where he pitches an american first stands to a skeptical audience. Jodi schneider joins us for more. For those who are expecting entertainment, they were disappointed. It was a more sober speech, particularly compared to the one of the yuan. Because he had already riled things up with a tariffs earlier in the week, he came on came in with a more silver tone, ofing to give an explanation why things were going well in the u. S. But also trying to reach out to other countries and asking them to invest in the u. S. , come to the u. S. , this would be good for them. Handed did things like an olive branch to theresa may, increase in case theresa may is trying to extend yvonne a special relationship. Jodi right. He has sort of walked back from het in an interview we had would have negotiated brexit differently, he said. One must say that in davos, it was overshadowed the news that broke while he was there before the new yorkout times are poor that he had tried to fire mr. Mueller, the special counsel in june, but walked that back once the white House Counsel said he would quit, he would resign in protest if he did that. There was talk about that. He softened his rhetoric when it came to protectionism, more of a conciliatory town and davos. Is that going to change what we will expect to hear from the state of the Union Address this week . How will that be differed from some of the speeches he has made in the past and the one he made with Congress Last year . Congress camewith after his inauguration. It was not a true state of the union because it was his first speech. In that one, he was pretty partisan. His town was very much speaking to the base, giving them what they wanted in terms of his outlook. This speech is expected to be more bipartisan. He will take credit for the booming economy and the stock market, will do a victory lap on the tax law that was passed, and do this gives him to other things. He is expected to talk about infrastructure, something we have not heard much. Bigt of talk about a infrastructure bill to fix americas crumbling roads and bridges. What we expect to hear on that, we will hear about immigration and his latest plan for dealing with the socalled dreamers, the undocumented workers in the come and also we expect you never know, but we expect to hear more about regulations. Taken credit for deregulatory environment. We expect a bipartisan talk to with President Trump, there is always going to be a few zingers. We dont know what it will be, but we will expect there will be some. Where all watching the midterm elections. We have this news on steve wynn. And the Sexual Assault, Sexual Harassment allegations, he has now resigned as the finance chair. How big of a deal is this . Will this damage the gop . Jodi this could hurt. It could certainly hurt. This is not the kind of thing you want to happen in an Election Year where there is a lot of talk about potential democratic gains, given the president s low approval rating. This is something i think the republicans are going to try to deal with quickly to replace him with somebody else and get this behind them. Yvonne thank you so much. Jodis Jodi Schneider in hong kong. As get to the first word news with tom mackenzie. Tom chinese will join his counterpart in korea and japan in their first talks since 2015. The summit is an indication of warmer ties between the three countries, and sets the stage for the visit by president xi and shinzo abe. Relations have been strained by competing territorial claims. Said toa talks have have taken a step forward with negotiators agreeing a new major to combat corruption. Talks that were supposed to conclude last year are expected to drag on for months, and maybe even extend to 2019. Resolved,e been leaving substantial work for future meetings in mexico city at the end of february and washington the following month. Lease ofat one a new life with a surprise victory over u. S. Tariffs. They ruled against boeing saying the american Aviation Industry has not and harmed by cseries sales. Commerce department to impose duties of 300 japan stranger percent in the United States. By marty a jump to the most in almost two years to its highest in three years. Commonwealth bank has named matt, and its new ceo. The 42yearold head of Retail Banking will start the job on april 9. He will lead australias biggest bank through an inquiry into the Financial Services industry and its response to allegations of breaching antiMoney Laundering and Terrorism Financing laws. He announced his departure last year after the Money Laundering scandal broke. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im tom mackenzie. This is bloomberg. Betty thank you so much. Lets turn to another of the days big stories, they Crypto Exchange heist in japan that came to light on friday. Exposure stocks with to Digital Currencies are mostly higher after tokyobased corn check going check was hacked with 500 million. Editor steve has been tracking this developing story. The company says they will reimburse anyone who has lost their money or their coins. Yeah, they indeed announced on sunday that they will mburse all of the affected over two and a thousand users out of their own pockets. Fuel recovery in bitcoin another cryptocurrencies that fell when news of this heist came to light on friday. Betty maybe some small reassurance for those who seem to have lost their money. What about the regulators . How are they likely to spring into action or will they spring into action and reaction in reaction to this . Reed that is definitely where the story is going to be migrating. Regulations in japan have actually been quite forwardlooking. The first to of adopt rules for the use of bitcoin, and even taxation roles last year. Rules last year. This will most likely make authorities take another hard look at whether those rules are actually going to work. For example, going check, the exchange that was impacted, they had not received permission to operate yet. They were sort of in this gray zone where they were grandfathered in and allowed to exercise advertise and do business while they were awaiting approval. That process may get another revamp as a result of this heist. Were just talking to james about the bojs position when it comes to cryptocurrencies. They are thinking cash is king in the country. Is there any chance that these cryptocurrencies will he used in the real economy anytime soon . Is thatmean, the fact they are not used in the real economy. Little portion of them that are used for realworld purchases, such as real retail. The best way to think of this is as a commodity futures contract. Basically, you are trading and converting them into fiat currencies. That is sort of what is creating the wealth, rather than actual real transactional use in the economy. That is probably not going to change anytime soon. These act as a proxy for some sort of value rather than what we usually understand to be a regular fiat currency. Yvonne thank you for the insight. Live from tokyo. Still ahead, holding ceo pledges more wage growth. Are any of through coming up later on this hour. Betty investors continue to watch the dollar after last weeks conflicting position in the president. We will have sean darby ask sean darby for his opinion. This is bloomberg. Isty good morning, this daybreak asia. Im debt im betty liu. Onnne investor focus back earnings. Markets were roiled last week by conflicting decisions on the dollar from u. S. President trump as well as steven mnuchin. The value of Global Equities surpassed 60 trillion is here as investors assess the outlook for inflation alongside a gentle improvement in Global Economic growth to more, we are joined by sean darby. Happy monday to you. We have been talking about how incredible 2018 has been. Asian stocks up 8 . Find thesesually returns when volatility is a slow, right . Most of the time, some type of drawdown. How is it different . Sean the bond market doesnt seem to believe it. In reality, the long end of the bond market is hardly shifted. This sorteally given of sharpe ratio, one of the best over the last 18 months. Yvonne should we start worrying when the 10year and u. S. Reaches 3 . Sean i think everyone will feel that life gets more difficulty difficult for Global Equities. You have rising price pressures, you have rising profits in the United States, and real Interest Rates are negative. In a sense, it is a great backdrop for equities. The bond market should be starting to recognize it is seemingly mispriced for the environment we have got. Yvonne if you find any trigger for a pullback, what would it be . Everyone has been talking about the fx side of things. A multi week reversal of for the dollar and euro. Giving how given how extreme those positions are, could that be right for a pullback . Sean the reality is nature will take its own course on this. Running down of the Balance Sheets in the United States, the likelihood is even the ecb is musing changes in its monetary policy. The bond markets will start to find that they have to readjust their view of the world. I think that will be a steep and curve. Chinas bond market has already that. It is the one that has led the world out of deflation. The yield curve is steep at the moment. Betty i want to talk about the conversations, and this morning about whether or not we are seeing a melt up in equity markets. Particularly here in the u. S. It seems as if you look at some of the fundamentals, we are not even there yet in terms of calling this a melt up. The markets really are supported by fundamentals, including earnings growth. Would you agree with that . Sean i would, actually. The reality is already in the earnings season, the Sales Numbers for the s p 500 companies have been good. Even if you stripped out the tax effects, it is biased toward owning u. S. Equities. The second thing i would acknowledge is that inflows into u. S. Equities where around 10 billion loss week. Again, one of the best periods for inflows into u. S. Equities over the last two years. There is certainly a lot of chasing of u. S. Equities. I think that carries on because we would be expecting in the next two quarters for earnings numbers in the United States to be good given the weakness in the dollar, and the big tilt for the s p 500 companies toward multinational earnings. Why doe you think you think theres so much nervousness . If it seems that this rally appears to be on solid ground, why do you think theres so much nervousness here . Reporter sean sean i think a lot of it is the client base didnt feel that they tax reforms would get done at the end of last year. Around earlyosed december. Tax reforms got done. There was a big shift for the s p and the u. S. Economy. Suddenly, they found themselves having to reorientate themselves out of bonds come into u. S. Equities. You also have this big, big shift in Economic Growth assumptions as we saw lets put last week with the Global Growth forecasts. Betty you mentioned the weaker dollar and how that is good for u. S. Exports and also maybe buffeting the equity rally here. Sees quite confusing to this dollar continued to weaken. Do you expect that continues to happen . When does it become a headwind for investors . Sean that is a good question. I think the consensus is the beginning of 2017 was for a strong dollar world. We got the reverse. A very weak dollar world. I think it comes down to two things. One, the u. S. Trade and fiscal positions are deteriorating, hich is no morally normally dollar sensitive. Negative feedback on that weak dollar coming through. As i said, that should start to mean life gets more difficult for u. S. Equities, because that import bill will start to hurt margins. At the moment, nobody wants to fight the trend. I would not disagree with it. Given the preponderance for talking down the dollar coming you will want to be standing in the way of that at the moment. Yvonne it seems like the weaker dollars story helping for hong kong as well. We have seen this remarkable each share rally. G btv 9440. 714 day on this bull market. One third of the stocks on the index are on fresh oneyear highspeed we have not seen us that like that since the 2015 stock bubble. Is it time to worry . Sean not really. The reality is the Profit Growth for the chinese companies, the alibabas and the basic runofthemill companies in china, is going to be double digits. The only sector that has singledigit earnings number growth is the bank. Yvonne isnt it more about flows than fundamentals . Sean i think people would loathe to own inks in china and banks in china. It was a no go area. People are coming back into that space. It is a very reflationary trait we have on china. Steep yield curve, price treasures coming through, a decent profit cycle for the 30 year running expected in china. It is quite a late rally in some respects for the market. Yvonne some bargainhunting, i guess. Sean some catch up, really. Yvonne thank you. Jeffrey is joining us in hong kong. For bloomberg subscribers, dayb on your terminal. It is also available on your mobile app. You can customize your settings and assets you care about. Check it out at dayb. This is bloomberg. Yvonne this is daybreak asia. Im yvonne man in hong kong. Betty im betty liu in new york. A quick check of the headlines. Singapore topped china to become the biggest asian investor in u. S. Commercial property. Data from Real Capital Analytics show chinese investments plunged 66 under 6 billion as regulators crackdown on capital outflows. Gic accounts for almost three quarters of singaporean it purchases. Yvonne the sunday telegraph says softbanks has closed ofigroup as they form an ipo its mobile phone unit. The newspaper says Deutsche Bank and j. P. Morgan may be involved in the offer which would see 30 of the unit listed in tokyo and london. It also said softbank is considering eight Global DigitalPayment System to take on apple pay. Iceberg research as creditors says creditors of a jet should reject the plan. The critique of nobles accounting march the start of a crisis that has brought the company to the brink of collapse. Noble may be close to a deal with creditors for 3. 5 billion dollars worth of debt. Iceberg said it will not fix fundamental structural issues. Yvonne coming up, all change to Commonwealth Bank. Matt common is named ceo. Singapore. There are clouds but i could take the heat from what we are seeing in hong kong. Nine degrees celsius in the city. We are a few minutes away from the open of trading. You are watching daybreak asia. Lets go to tom mackenzie. Tom japanese Crypto Exchange c reimburseays it will people who lost money in the theft. The company will repay all the customers hit by the fact at any point rated at . 82 for coin. The are four months past Cryptocurrency Exchange rate law. The World Economic forum came to a close with a selfcongratulatory blood backslapping cant graduate backslapping the s p 500 has gained a quarter since the start of last year and imf is forecasting the strongest worldwide Economic Growth this year since 2011. There are some indications rising,es are actually and some prices have already started to rise, and even medium to longterm inflation expectations, we have been so weak in the last couple of years , are now slightly picking up. Ecbs member of the governing councils that they must end qe as soon as possible. Anticipationas in of something that did not happen , and there is no reason to continue with it. Mario draghi said there were signs of rising inflation, but patience and for distance persistence are still required. Beijing will close 1000 factories and markets by the end of the decade as part of plans to move what are called noncapital functions out of the city. Shenhua said authorities will spend 2 billion on shifting businesses and operations deemed nonessential into the suburbs. Targets include universities and hospitals. Ikea founder has died at the age of 91. His company grew out of a bad is this of a business of selling pencils. His net worth is 58 billion. Flat tax revolutionize the way furniture could be stored and shipped before being assembled at home by the customer. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am tom mackenzie. This is bloomberg. Time to see how the asian markets are shaping up this monday morning. Lets get the latest with sophie kamaruddin. A weaker dollar story. We are seeing that lift the cross currency markets. The ringgit is gaining 0. 1 , and the korean won at 10. 62 of green back. We have equities continuing to rally. This as investors are continuing to see the corporate earnings share continue. The asian stocks are set for the 2016 very since march lets look at the nikkei 225, the best performers there. I want to highlight this company adding to fridays gains after they reported a 12 color Third Quarter beat for technology. Fore is a strong outlook machine demand in the following quarter and a share price for the fed. That could regain ground. Also its rival, the electric company. We also have this company gaining ground. It is acquiring thinking about acquiring asahi fire. Komatsu leading machines lowered ahead of its earnings due out soon. Fourth quarter demand has grown thanks to china and south asia. Japanese stocks that were exposed to the japanese cryptocurrency, these ones are jumping at the remix point, which would move coin check following the shutdown friday, but the mood is more down where korean crypto stocks we will check on those. You have these ones falling for eight for a second day. The asx 200, you look at resources leading gains. Waiting for the Fourth Quarterly output data from this company as well. We also have other stocks in focus in the money space, Whitehaven Coal gaining ground following its upgrade at j. P. Morgan. Lets check in at aussie oil exporter jp after mitsui missed a 8 million bid, topping the offers by the minimal resources and china energy. They will hold a meeting regarding this and advising shareholders not to accept the latest offer from mitsui. Yvonne thank you so much. Some of the movers early on in this monday morning. Conceit no operator casino operator, wynn, they may take a hit, after the chairman quit as the top money raiser for Republican Committee after the Sexual Assault allegations. Our reporter joining us with the latest. This is a very personal matter for steve wynn, but it will it affect his businesses in macau . Reporter high. Hi. This issue is more like a personal related thing. At this moment we dont see any signs yet from the company or the regulators that the issue will bring meaningful impact on the companys business, including the top Management Changes or more investigations from the regulators side. At this moment we still are watching and dont think we will have meaningful impact on operations. Yvonne what do the analysts say about this . Are there risks to the share price of wynn macau . Daniela although it may not have Significant Impact on Business Operations in the shortterm, it could be a perfect excuse for investors to change. Wynn hashen macau already outperformed its peers. Shares have more than tripled since the new project with the palace opening in 2016. This time, the issue would definitely hurt the Investment Sentiment and be a good excuse for investors to take off. Betty when he be facing too much pressure to have to would he be facing too much pressure to have to resign . Is there going to be a likelihood . What could happen if that were to happen . Daniela who knows. This is a good question to ask. We dont have grew to, and we dont see any fines, but to be honest investors are going to pay some premium to win shares. Shares. S if anything, it will bring potential challenges to the stable management stable management structure. That would be a big thing to watch. You. E thank we will see how the shares perform in an hours time. Commonwealth bank has turned to an internal candidate to replace the outgoing ceo. He is replaced wrapping up a sixyear tenure at the bank and following the fallout from many scandals including moneylaundering. Paul allen has the story. Tell us about the new person. What we know of him . He has got the right pedigree. He has been with Commonwealth Bank since 1990, lots of experience in retail and management. He has held a number of Senior Leadership roles as well. Asce 2012 he got appointed the Group Executive a Retail Banking and has been leading Commonwealth Bankings development of Digital Products and services as well. That is who he is. Lets hear what he had to say on his appointment. It is also important that we maintain the momentum already underway, upgrading and strengthening our governance, accountability and Risk Management while delivering Strong Financial performance. Timeng is going through a of Significant Technology and competitive change, and i are excited to leave the organization as we prepare for the next phase of that context and transform us. Coleman will take over and the market responding to his announcement. A have Commonwealth Bank up little bit. Betty it will be hard for matt comyn to put the scandal directly behind Commonwealth Bank, but you will try. What will be his major task Going Forward when he takes over in april . The press conference was thrown, there were questions that issued and that issue pretty much dominated. Commonwealth bank is facing more than 50,000 allegations of breaches of Money Laundering and counterterrorism laws as well. Each of those charges carries a fine of up to 12 million. Serious situation the bank is facing. That relates to cash deposits made at automatic teller machines. They are under the auspices of matt comyn in his old job. The australian newspaper was reviewing a list of common clients, saying maybe it was time to hit control, alt, delete. One thing that matt comyn stands out as a good executive, but he could have been tarnished by this. To hear thatprise issue time and time again during the press conference. The chairwoman said the board was unanimous in this decision, so Commonwealth Bank clearly confident it has got it right with the internal candidate. Betty thank you so much, paul allen, there in sydney on Commonwealth Bank. The new ceo. List forhe shots, the buying around. This is bloomberg. I do think the trade is important. I think the president raised important issues. They will look at those issues. We should negotiate in a sense that makes sense. In a trade that makes sense. It has to be reciprocated, and the trade the tools need to be had by the trade players. That is the area where everyone will rally around some of the teams of President Trump. The u. S. Economy is a key confident for all the other economies. If the u. S. Economy is doing well, it is important. Clearly i consider the Trump Administration a danger to the world, but i regard it as a thaty temporary phenomenon will disappear in 2020 or even sooner. When we look at what he is actually doing, we can support a lot of his policies. We are not always an agreement, but we were not in agreement always with obama. Yvonne some of the big voices from the World Economic forum in davos, heading closer to the president s state of the Union Address. Here spoke to bloomberg, echoing policymakers views of a positive climate ahead. As a result of the tenacious efforts of the Current Administration led by Prime Minister abe, it is called abenomics. That shows you a positive sign of Economic Growth, and because oflots of efforts quantitative easing here, because of that, we crept down inflation. I think we got rid of complete deflation. Becausee is enough to concern is not robust enough, but investment from corporations has been very much strong, because they started to invest in lots of machines and ai. The economy. Ing up so the government became friendly, reduced the corporate. Asks tax and the corporate governors, reduced regulations, so that held a lot of the result. Centauri what is doing . Are you wasting raising wages for your japanese workers . We have rate hikes almost four years in a row, including this year, plus we are increasing budget to train invest intoplus we factories and so forth. Reporter are you going to raise wages again in 2018 . Yes. Reporter by more than 3 . We are working on it. That includes the treating people because we have to prepare for the age of 100yearold. That means they have to be healthy, which means they are very much motivated, so we want to invest. You want to keep employing older workers. Until 65, but they have to see their future after 65 years old, and we want them to feel relieved, so training is important as well as wage hike. Reporter you said borgen could be the worlds bourbon could be the worlds greatest whiskey. What is the greatest market . Aseanould say japan and and some parts of europe. Reporter how fast can you increasereporter sales in china . We are expanding little by little, so 10 to 12 every year because we are almost nothing. Reporter you are still small. We want to increase in china, and we are very much committed. Reporter what is involved in expanding the footprint . We are going to ecommerce, because that is the whole story so thats well as we penetrate their brand. Reporter it has beenreporter four years since centauri bought jim beam. Is it time for another acquisition . I dont think so. It has been successful in terms of overcoming cultural differences. Launched a corporate to rokuct which is called gin. Morent to go to the emerging markets like china i mentioned earlier, mexico, whatever happened to the nafta, and the asean countries, india. Reporter the liquor industry keeps consolidating. Petrone. Ought did you look at either of those . We are all checking the radar. Reporter were you a better . We are better, in terms of bourbon, we are the key leader in the markets. So what i am trying to do is we want to be wellequipped with the after Merger Acquisition skill set. That is what we are doing in terms of integrating beam and centauri. We have to be hugely successful, the making going to the m a. At this moment i dont think we should. If there is one thing you could have in the centauri portfolio but do not yet, what is it . Tequila. [laughter] ceo talkingcentauri to Eric Schaffner endeavors in davos. You can find indepth analysis on the newsmakers on Bloomberg Radio. Chairman turn into daybreak asia. You can download the app Bloomberg Radio plus or access it by a bloombergradio. Com. This is bloomberg. Yvonne lets do a quick check of the markets across the region now. In tokyo we are seeing the nikkei 225 up 0. 6 . It is still relatively a weaker dollar story, but we have seen the equity market resilient to the yen gains we have seen of late. There was a lot of with saw action with kuroda during demos davos when he talked about inflation being close, but this is not really a change in the outlook. Plenty to talk about with the crypto hacks and coin check today. There is a lot about the fx as well, the aussie rallying, a lot of bears saying we are heading print0 handle versus 80 in 12 months or so, but the asx seeing gains 0. 3 , following wall street overnight. Seeing sharesre more than 1 on the kospi. The one also slowing momentum won also slowing momentum. Take a look at futures in singapore. We see them waiting to higher gains. This is daybreak asia. I am yvonne man in hong kong. Betty i am betty liu. A look at business flash headlines, the wall street journal said saudi arabia and its advisors remain undecided where to trade shares in aramco. The kingdom has been warned that a new york listing could expose it to lawsuits from shareholders and victims of 9 11. The company in riyadh did loan while not being able to handle the surgeon oleating expected from a s listing. Yvonne Qatar Airways has committed to better transparency. It will not go to the u. S. Through other countries. American carriers say the deal is a victory and one of the biggest trade disputes in u. S. History. They claimed Qatar Airways and offended from 17 billion in government aid over 10 years. Betty billionaire brothers in india are being accused of divergent and digression of assets by a new yorkbased investor. A lawsuit filed in the Delhi High Court said they inverted loans from the publicly traded to helpls Services Firm them with a debt load of 1. 6 billion. They categorically denied the allegations. Yvonne the controversy over volkswagen has taken another twist with the carmaker apologizing for a test that exposed monkeys to engine fumes. They said the study was a mistake and it was very for what it called the lack of judgment and misconduct of individuals. The trials conducted by a Research Group set up by vw and bosch. Betty and maze runner the death cure talked of the american box office, nominated for academy awards. It took 23 million on a weekend , the lowest opener of a series that generated 670 million globally since 2014. Box office mojo that each money costs 60 million or less, making it profitable if not especially popular. Yvonne that is almost it for us on daybreak asia. Time for a quick look at the next few hours on Bloomberg Markets. A lot of this trade tension you can talk about, but when President Trump spoken davos davos, conciliatory. Rishaad we could see something with tpp, a better deal for the United States. What about nafta . Yvonne we might pull out, we might not. Wasaad and the real one the Climate Change agreement, saying we could get a better deal and agreement, we will see. With ourdiscuss that reporters, what they mean, and how trade wars could affect business from a legal perspective as well. That is one thing we are watching out for. Deutsche bank research, joining us as well, talking about the Interest Rate cycle overall. Betty the dollar, what will happen . Rishaad going back to the trump story, the mexican peso is one of the biggest gainers so far this year. You ask yourself, after all this bek about a wall we will talking about what asian currencies benefit from if at all a weaker dollar and then the haze of the head of asian strategy, he will give us his view on what Central Banks have to do. We have assets being priced according to the way that they want to be, not good for the real economy. We are talking to them about that as well. That will come in the next couple of hours. Betty Central Banks, bitcoin, currency, a lot to talk about. That is it. Market coverage continues next. Stand by, this is bloomberg. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Rishaad we have a sales pitch and davos. President trump is saying that america is open again. The forum winding up. The delegates saying the economy is fine. The stock markets have every reason to extend their runs. The is after allegations, parent shares are pledging. I am Rishaad Salamat in hong kong. We will flick through the pages of japans stocks bible. 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