In hong kong where it is just after 8 00 a. M. Is just after 7 00 p. M. Here in new york and i am julie hyman. Out of the u. S. That President Trump has fulfilled his Campaign Promise to get rid of the transpacific partnership. Obviously that has implications not just in the u. S. But around the globe so what we are waiting for our reactions, particularly from china to see what they will have to say about this. China trump is also talking about renegotiating nafta. Trade relations will be will they be a lot of fill this void in the global trade sphere. It makes for a mixed picture in asian markets. Exporters are going to be the ones to watch today, given the tone set by trump overnight. The dollar is some thing they are watching very closely even a strongcomment that dollar could have a negative shortterm impact on the economy. 113 dollars mark there. We are also seeing a jump in gold. It touched a twomonth high earlier. We are seeing a pickup in gold holding for a fifth day. Itlook at the bond space. We are seeing a rally in treasuries continuing after trump vowed a border tax in a meeting with Business Leaders monday. The yield on the 10 year note and falling to about 2. 4 . Are tracking on that movement in the treasury. Falling to about 2. 7 . What about what is going on with stocks . In terms of trumps comments and actions . Reporter this is the way it is shaping up so far in asia, the only bright sparks are in technology. Bright spots are in technology. Despite that, given the pickup we are seeing in australia, that is helping to lift the regional benchmark. Asxsex rising the rising. They revised their profit forecast for the first half of the year. Nikkei, not surprising it is in the red given that strength. Here is a quick picture given what we saw overnight. Of the asiantart trading action. Thank you. 1 sung is also up closer to in shoulder this morning. This after the Company Announced they would be buying back nearly 8 billion worth of shares after doubling quarterly profits. Forget the financials and the earnings for one who second, lets talk about the buyback. Pretty big. Pretty big. One. About 9. 3 trillion will not just cancel but repurchase. They have been near record highs. Near november last year, they had been talking changes to the structure of the Company Proposed by an investor. They had of been performing too badly as of late and they will probably get a boost up today. The income is just a little under 6 billion u. S. Dollars. Rising prices for semiconductors, which has been a strong performer for samsung. Bloombergs against a projection of 7 trillion won. We also have to look at the mobile phone division because the note 7 had all of those issues with the batteries catching fire. They had to pull that line completely, as we had been talking about at length. That will the division with operating profit coming in at 2. 5 trillion. Samsung toward the end of last year had said that it was going to see a negative impact of approximately 3 trillion won. Because of that note 7 issue so here we are seeing some of that followthrough here and possibly into the next quarter as well. Will be get any more details on what was behind the investigation and what was causing the fires in the note and where the company goes from here in terms of its next Product Development . Samsung was keen to move forward and put this behind it but yesterday it did release a an investigation into the issue saying the issue was with the battery and essentially they were sort shortcircuiting. What it would like to do is put all of it behind it and try to regain Customer Confidence in its product. They are set to release the next eightthe galaxy note phone. Usually it launches that at the World Mobile Congress in february, but this time they are pushing it back a little bit later, looking to avoid some of the same mistakes they made previously in rushing the note 7 device. Well will see how that is received. Thank you. Lets get to the first word news with hans linda. Is nearly seton to become the secretary of state as the set Foreign RelationsCommittee Gave its approval to the full summit. Another leading republican lifted his objection. Marco rubio said he will now offer his backing despite initially questioning tillersons links to russian president putin when he was the exxon mobil ceo. s backup plan will become clear tuesday as the Supreme Court rules on whether they can start without parliament approval. Goes against the government, theresa may plans to rush the just nation to amend article 50 before the deadline. Both houses of parliament opposed brexit in last years referendum. The purchase of verizon has been delayed until next quarter as a recovers from two massive hacks. To deal had been expected close in the current period. User activity showed minimal the clyde. The Ceo Marissa Mayer success enhancing User Security is top priority. Fourthquarter sales and profits beat estimates. Sales rose to 6. 8 billion. Meanwhile, sources tell us that the lg display has secured a deal to supply electronics possibly a soon as this year. Shares are up about 1. 5 . Global news 24 hours a day powered by one and 2600 journalists in 120 countries. President trump has carried out one of his biggest promises pulling the u. S. Out of the transpacific partnership. We have more on this. This was one of his central Campaign Promises. Here he is on official working day one, making it happen. Reporter this is a huge thing that up ends obamas policy and put it to asia. Had the twitter account americafirst. He thinks that the death of the tpp will help protect the American Worker. Terminatedofficially tpp. [applause] reporter you can here the clapping as donald trump is trying is surrounded by his advisors. It also hear him negotiating individual bilateral deals with those tpp partners. He said that if somebody misbehaves, how they will be out on the radar for him and will intentionally be straightened out or they will be gone. Mixed onion has been the republican side as well as the democrat side. On the democrat side, they are siding with mr. Trump. Charles schumer said that the tpp was dead long before President Trump took office. In the initial vote for the tpp, he did vote against it. Almost twice as Many Democrats voted against it as republicans. But john mccain is sending some fire over to donald trump saying that abandoning the tpp is the wrong move, especially when he is advocating for more american strength in the asian pacific. He is saying that this could definitely lead to an opening for china. There is a lot of talk among the media saying at there was a horse race between the u. S. And china. One phrase would like to point out is that chinas horse is still in the game but some have said that the u. S. Has put its own horse out to pasture. Could be a boon for china but a busy day in the u. S. As well. He met with Business Leaders and talked more about regulations. What did we learn . There is definitely more of a stick aspect than a caret aspect to this. This. N a carrot aspect to he spoke with the leaders of Johnson Johnson as well as ford motors and said, you have to stay in the country or else we will come back at you. A company that would like to of its people in the United States, than build their product someplace else and think that product flow across the border into the United States, that is not going to happen. You will have a substantial border tax. On the topic of regulations, he did say that you could roll back regulations by as much or more than 75 . Its only day one with a lot more to go but he is looking to butect the American Worker at what cost question 6 million chinese travelers are expected to hit abroad. We will find out what is driving them overseas. Plus trump taking a tough line with china. Can beijing work with the new administration . More on that next. This is bloomberg. Yvonne jule this is daybreak asia and i am julie hyman in new york. Upnne we are seeing shares 1 in tokyo. It has been the subject of several reports with one saying it will meet this week to discuss restructuring. Says theythis company are considering forming a Holding Company that would oversee its business interests. X this chinese phone maker is losing its international chief. Hugo is returning to Silicon Valley after 40 years. Xiaomi global and helped it make inroads in india. He will leave after the Lunar New Year but has not said what he will be doing next. Is shoppingeaner again. He will buy the nordics and him a group for 929 million. It pushes the worlds leading theater chain further into the european market. They have 38 theaters and stakes in 50 other operations. Theatersd control 1000 and 11,000 screens in 15 countries. Lets go back to the macro kong. Ence in hong steve, the big news is President Trump scrapping tpp. Any indication on how china may respond . Reporter it is not that big of a surprise that trump is scrapping tpp. He said he did not like it and he would do this on the campaign. Does china fill the void . That is the bigger question. Is this an opportunity or a humongous challenge . Is the china specialist from the university of san diego. It is a pleasure to be here. Reporter tpp is scrapped. What are the impacts . Guest china is expressing some much anxiety about donald trump, not just because they dont know what he will do, but they dont know what he wants. Here we have the first week of the administration and what he is doing is giving them a gift which they are aware of. Align all of the economies around china with the United States and make them must much less subject to chinese influence. Now it has been scrapped. They see that is a good thing. The combination of president she going to of president xi going to davos they view it as an opportunity. Reporter china has will domestically with an iron fist, and internationally, president a glove. G going with guest over the last couple of years we have to say they are not up to the challenge. Toy are not in a position take their own interests and emerge that with a set of global interests and make the kind of sacrifices necessary for i dont think we are looking at a situation where china can take over any global role from the United States. They have understood that the vagaries of american policy provide them an opening. That if they can push more effectively on reform of and they have done, it is in their interest to do so. Reporter is reform off the table . You have domestic problems with the debt pile. It seems that domestic growth is stabilizing that and is a priority. Stabilizing growth is a priority and how we have done that for the shortterm. If i were xi jinping, i would be worried that my colleagues would see that the Reform Program has not worked. I is going to be looking to keep mindless activity going on the reform front to bolster his credibility and contribute to his consolidation of power at the next Party Meeting which is october or november of this year. Do, asr what should you mr. Xi, with the reserves . Guest i will keep it as stable as i can, keep it right around the crucial mark to keep my 3 trillion renminbi if i can and to keep the renminbi from depreciating. I have to keep that sudden depreciation in my back pocket. If things go really bad with President Trump, i have to be able to let the currency go. If im not in the worst case scenario, im not going to let it go. Is the Trump Presidency one of the worst cases for china . On the trade front, it is a good thing, but the uncertainty you alluded to is caps mindboggling to the leadership because the have gone grown accustomed to accommodating u. S. Policies. That is true. It is a threat and there is a tremendous amount of anxiety but if i am xi jinping, there are many parts to this that i welcome. I have been telling my colleagues for years that the external environment is extremely threatening, complex, and dangerous. I am the only one who can lead the Great National resurgence of china. In a sense, donald trump is proving me right. When i go to the party congress, i can say that you have to close ranks behind me because the external environment is so threatening. That in the saw daily editorial with them saying basically, capitalism is dead. Thank you so much. From the Goldman Sachs conference here at the four seasons in hong kong all morning. Was a professor at the university of san diego speaking to Stephen Engle at the global conference for the asiapacific. Next, find out why american customers are losing their love for the golden arches. A breakdown of mcdonalds is next. This is bloomberg. Arabic we have some breaking news. Takata shares just are trading. This is the seventh straight day of losses we have seen for the akata shares. There are concerns of bankruptcy worries for the company we have seen throughout the week. Wered learn that they leading toward a courtmediated bankruptcy. We are learning that bonds have been tumbling as well for to cut a takata. Debt holders that will only be able to recover a portion of their funds. Julie stunning decline for the shares and the bonds as well. In u. S. , some big names delivering disappointing news. We have this and the rest of the days earnings news. Yahoo in an interesting situation. Mixed news with the copy that cannot seem to catch a break. After hours it is up slightly because there were operating profits, 64 million, the first time in two years. But the profits were at 4 and the prophets came in part due to staff and other costs. The deal is taking far longer than expected. They are pushing it back and they said that the close will likely happen in the second quarter. In yahoo uying shares and leaving the rest to be called altaba. The fec is probing some of those data breaches. It has been a tough one for yahoo . We learned something from mcdonalds as well. People nothe phrase, exactly loving the allday breakfast. The allday breakfast was a key part of the turnaround. Initially it was popular but has not been of late. It seems customers were not happy with the elimination of the dollar menu. Donald trump pointing out the entire industry has been down. There was a fourthquarter drop sales. Sales but global were on the rise. A tough blow to the turnaround strategy. Halliburton was down more than 1. 50 per share. Revenue missed forecasts. There is the increasing appearance that Economic Conditions under the new president could not be as stellar as originally thought. Be set for aould battle with the eu by starting trade negotiations with other countries before leaving the union. This is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Anything with a screen is a tv. Stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. You can even download from your x1 dvr and watch it offline. Only xfinity gives you more to stream to any screen. Download the xfinity tv app today. Craigs a dark picture in singapore this morning. 830 a dark picture in singapore this morning. Julie i am julie hyman in hong kong. You are watching daybreak asia. Lets get to the first word news. Samsung has announced it will buy back nearly 800 Million Dollars in shares. Fourthquarter profits reached almost 6 billion. Samsung has announced it will buy back nearly eight in dollars in shares. 8 billion in shares. Trump says he will renegotiate the north American Free trade agreement after scrapping the transpacific partnership. He said stopping what he calls ridiculous trade deals will put a lot of people back to work. The nominee for treasury secretary says he will work with trump to examine trade relations and assess thea chinese practice of interbeing in currencyvening markets. Analso warned that excessively strong dollar could have a negative shortterm effect on the u. S. Economy. Australia does not expect the policies of the Trump Administration to result in a u. S. China trade war. He told Bloomberg Television to pushbal notes needs Global Growth needs to continue. That Global Growth needs to continue. He said a trade war would be the worst outcome for everyone. Its not a binary thing. If there is a trade war and i dont think thats going to happen but everyone does worse as a consequence. News 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg news. Julie breaking news on mike pompeo, trumps nominee to lead the Central Intelligence agency here in the United States. The senate has been voting on his confirmation. Associated press and others are reporting he has secured enough votes to be the cia director. That is following tillerson the Senate Committees backing for that is following tillerson winning the senate s backing for secretary of state. Take a look at what going on on the nikkei 225. Pressure on stocks there. Take a look at the way private exporters are getting dragged down by trumps comments overnight. Electric power falling on most , since most since August Goldman cut the stock to sell from neutral. , they said they will suspend work at a plant after a crane fell on a reactor friday night. We are seeing the cost be in green. Kospi in green. Over in australia, there is a drop in utilities and i. T. The rise in material and Health Stocks is helping lead to a drop. An 8 gain after he provided a more optimistic first half earnings outlook. And a medical equipment maker climbing after quarterly revenues topped estimates. We have been watching. Hares of to cotton takata they are not getting a breather. Falling as much as 14 , another doubledigit decline for the beleaguered company. The drop could past 30 according to indicators we got earlier. Stock exchangeyo brought in the lower limits for the stock. Since it wasd announced they were considering a court led bankruptcy. Julie thank you. Will follow that story. We are also watching the dollar begin to slide as trump tears up trade agreements. There were some comments from Steven Mnuchin on that as well. This was part of his written response to questions from u. S. Senators. Bloomberg was able to get a copy , one hundredcript 40 five pages of font size 10, essentially. Take out the important parts of this, if you will, when it comes to the u. S. Dollar. There was a question regarding how forecasters see and 85 increase or appreciation in the u. S. Dollar as a need to offset. Ny possible border tax he was asked for comment and he said the strength of the dollar tied toorically been the strength of the economy, but from time to time an excessively strong currency, an excessively strong u. S. Dollar may have negative shortterm implications on the economy. Details were given as to what constitutes a strong dollar, but it does not take a Rocket Scientist to figure out what the appreciation of the dollar is going to do to manufacturing, which we know trump wants to protect and enhance. Or how quickly investment in the u. S. Will dry up if the dollar should do that. Julie at the same time, he did maintained a strong dollar isicy of the u. S. He trying to play it both ways, one could argue. What is important to remember here is there was a question on onmp using public statements the u. S. Dollar. He was asked, are you, as treasury secretary, going to use public statements to influence where the dollar goes . He said as treasury secretary i will maintain the position that a strong and dependable u. S. Dollars is in our best interest while recognizing that at times, over the longterm, that mena not be the case. There is a great write up from showingnds here historical data. It shows that the best time of u. S. Growth came in the dollar 125. Was way above we are at about 100. There is evidence to back it up. Julie many analysts we have talked to say you cannot have the best of both worlds. They think in the shortterm the dollar will continue to weekend, but further down the road, are they still expecting Dollar Strength . Yes, and it comes from the the meat we do get behind the concept of what trump whence to do. Thats dollar supported. Markets expect the fed to raise rates, and that brings us back to the whole reason the Dollar Strengthening in the first place. Yvonne thank you. Plan ine u. K. Brexit the news today as parliament looks as the High Court Decides whether theresa may can launch it without parliamentary approval. Applications on that . In november, a philanthropist in the u. K. Launched an attack on what the Prime Minister had done when it comes to article 50 , saying the way she was going about it did not meet with the way it should be done under u. K. Law. Now the question is can theresa may unilaterally trigger brexit which is basically what she is doing. If she wins, she does not need more approval from parliament banned she has already gotten. If she loses the deal, new needed. Ion will be parliament cannot stop brexit from happening, but they can amend how theresa may goes about it. Maintaind demand she the best possible access to the eu market. In fact, the labour party is pushing for a meaningful vote on brexit. If the court rules against me, they want to be more than a rubberstamped. London time, hours from now, teresa plans to rush a quick bill through parliament if the court rules against her. There seems to be a lot riding on this decision. Julie even ahead of brexit, we have been seeing a lot of fallout in the markets. We have not seen much recovery for the u. K. Currency. In awill show you a chart minute. First of all, their hats than a rally in the last couple of there has been a rally in the last couple of minutes. I want to show you a chart. Look at the past month. You see that january has been the weakest month for the pound in 30 years. Impact upon state for a while, but its not over yet. While,as paused it for a but its not over yet. It happens slowly. Outlook for 2017 has plummeted. I want to take a look at another chart from bloomberg news, which shows flagging momentum in u. K. Growth and what is expected ahead. Of last year,dle supposed to go down to 0. 2 . This is the dark cloud hanging over the u. K. Economy. A lot of people are betting theresa may is going to lose and this will have to go back to parliament, and there will be some tweaks made. Yvonne a long way to go and a lot more to developers to come. Julie coming up, why 12,000 12,000 trips abroad are replacing Lunar New Year trips to see grandma for many chinese. Yvonne this is daybreak asia. Julie hundreds of millions of celebrators are on the move. A greater number than ever of chinese are looking to fly the coop. Around 6 million are expected to pack their bags and take off from airports like the one behind me this year. Thats almost the population of denmark. Be flying to countries around the world. Top of the list, thailand. This is good news for chinas airline. They have been raising prices and booking extra flights to make sure they have capacity. It is also good news for other nations because Chinese Tourists and outspend their american counterparts. Expected to spend about 255 billion dollars a year on travel by 2025 compared to 137 billion in 2015. Travel and tourism are key to the chinese government. They hope the yuan will continue to fly high in 2017. Onnne lets get more chinese travel plans. Joining us is the cfo of the travel booking site. Not makingese are the annual pilgrimage to grandmas in shanghai anymore. Travelk on the leisure tour segment, especially the luxury end, how do you take advantage of this migration, and how do you see Growth Potential in the luxury segment . Online travel has been growing very, very fast. A lot of countries are seeing chinesee advantages of travelers. Popular destinations are southeast asia, europe, korea, american. Chinese aree, spending and traveling. We are seeing tailormade trips. Oing very well more competition has been coming in in the luxury segment. How do you maintain your market share . We know the market very well. Years, we have been the leading Leisure Travel company. We will continue to widen the gap between our peers. We lead the country in that we have the most competitive pricing and the most selection. A most important link, we have the best service. Satisfyingerience customers. Clients and our market. Yvonne i want to ask you about another competitor you have, see trip. You are putting yourself in direct competition with see trip. The stock has been lagging behind. In fact, well around the ipo few years ago. Does this strategy makes sense, rivaling a big player that owns 70 of the market right now . Position on leading package tours to specific travel areas. We offer hotel booking. We feel our clients needs. For destinations, we have the advantage of the hotels. As air ticketing for Leisure Travelers. Offer more comprehensive products to satisfy our clients. The market is so big. Share both getting market we believe 2016 was a time of a lot of sectors happening. We believe the Leisure Travel market will continue to grow and expand our market share. Julie you talk about the outlook improving. I am wondering specifically what you can tell me about your profit outlook. You reported a loss last year. What about looking ahead for 2017 . The major theme for our strategy this year is growing at. High rate of industry peers in the meantime, we want to show to profitability. We are focusing on increased expansion of the market. Seen clearly that the margins are improving as well as we want to monetize our. Nvestment and our brand we cover 170 cities in china. See clearard, we will signs of improving operational efficiency. By 2018, we will break even. Two of your largest. Nvestors are j. D. Com and hma can we expect any partnerships rolled out in cooperation with them . Gave us the right to operate a Leisure Travel channel to convert clients. Na, they have Airline Companies in and out of china. We have worked closely with them on air ticketing. On the hotel side, they have a. Ery aggressive plan most recently, they became the largest shareholder of a group. We have a great need for the hotel side. Closely we have worked very closely with both. Julie thank you for your time. Next, a new setback for mitsubishi. We will look behind what is we will look at what is behind the latest delivery delay. Julie this is daybreak asia. Yvonne mitsubishis troubled regional jet is delayed once aren as Development Costs rising. We have more from tokyo on the story. What is delaying them this time . They are having problems with the design of the electronics inside. Its really becoming a concern. I measured delays in terms of olympics. This,hey first announced it was supposed to be delivered a year after the london olympics. The rio olympics have come and gone. Now they are talking about 2020 before the tokyo olympics. People are sure are still not sure they are going to be done in time. Is thewhat exactly problem here . At some point, do they throw in the towel and say they are going to stop developing it . They have spent a lot of money. They have spent the equivalent of 500 billion600 billion yen, more than 5 billion. Couldday, they said costs go up another 30 . At the press conference, they said they could throw in the towel if they thought it wasnt going to work at all. At this point, they are sticking to their guns. It has been delayed. This will make it seven years delayed. It is definitely a concern for their big customers, but they have decided to double down, hire more people, and make sure they do the job. Is it something with jets in particular . Japan has a very good reputation when it comes to building cars, bullet trains, cameras. What missing here . Theapan makes one third of 737 airplanes. Its a level higher. Gottenshi hasnt quite it down yet. Its a hard learning experience. Hopefully, we will get some news by the end of the tokyo games. Thank you. At what is coming up in the next few hours. We are going to be talking about cpb and have a look at hsbc coming up in about 45 minutes time. Looking at what donald trump said, consigning years of with asia to the dustbin of history. Plus, a look at the commodities complex with the global head of commodities research. There is a macro conference taking place in hong kong. We will be talking a little while about the prospects for oil and beyond. Quickly, brexit on the agenda, of course. The Supreme Court in the u. K. Yet to rule on what theresa may can and cannot do. Julie lots going on. Plenty more to come. Asias first market moment is open is just minutes away. 9 00 a. M. In singapore, midday sydney, 8 00 monday evening in new york. Im Rishaad Salamat from bloombergs asia headquarters in hong kong. This is bloomberg markets. President trump dropping obamas landmark trade deal and promising tax cuts and terrorists and tariffs. Back tos earnings premarket meltdown levels