Asia daybreak coming to you live from bloombergs u. S. And asian headquarters. In hong kong its just past 8 00 a. M. And just past 7 00 p. M. Here in new york. Yvonne, the news keeps pouring out of the white house. Just last hour we got breaking news out about the u. S. Looking to impose now sanctions on iran over their Ballistic Missile testing. We got that warning from President Trump on his twitter earlier. It just shows you sort of how headlinedriven it seems the markets are. Yvonne yeah. What about the fed . What about the jobs report . It seems like all that is just buried from the macro and all the headlines coming out from capitol hill. Here, though, were not getting much leadin after wall street traded really flat. Lets see how asia is shaping up on this friday morning. Dave right. So, i mean, i was going to say that it was going to be a cautious start to the trading session but then we got a little bit of movement in the yen and there we go. Were looking at gains across the region right now. Wouldnt say volumes are back though. A third of one percent, new zealand as you see just under half a . Japan opening up just about 19,000. We just got the b. O. J. Minutes from last months meeting. Nothing that we dont know already. I think it just really speaks to the fact that a lot of the makers in japan are basically trying to emphasize that Monetary Policy is aimed at things domestic. They just want to sort of stay clear of perhaps risking being called if you will a currency manipulator. All right. Lets change the boards. Have a look at the kospi. 2,076 on my screens right now. Were better by about a quarter of one percent. There we go. A little claw back as well as the south korean currency. That . Re we doing on 11. 45. This should take us all the way back to levels right before the u. S. Elections. Weve basically come full circle now on the weakness yuan in the south korean and the strength hasnt taken us back yet to the current levels. Change the boards. Have a look at the bond markets. The reason i bring this up is because in an hours time the b. O. J. Should be conducting open market alterations. Now, the question really now is, this is a thursday story. Yields push up. The shortened of the curve here. When you look at the tenyear, negative nine, negative 21 on the twoyear, does the b. O. J. Come in and buy more bonds, five to 10 year is what theyre scheduled to, to really go in and focus on . Will they buy more to try and anchor this . And bring the yields back, especially the tenyear, closer to where they are targeting. Essentially zero percent. That is something to watch that comes out in about an hours time. Guys . All right. Avid, thank you so much. One of the tech worlds most highly anticipated ipos is a step closer. Were talking snapchat. The Parent Company has filed for an offering with an ipo initial size of 3 billion but that could grow. Lets get more from Bloomberg News in san francisco. Highly anticipated, going through the filing. What are the big things that stick out to you . Well, the biggest thing certainly is the Revenue Growth. They grew revenue about 7 x what it was last year to more than 400 million. Then that brings us to another big surprise which is the losses even bigger than the revenue. Year. 0 million last this company has been able to grow like crazy but there is a price to that growth. Speaking of growth, the daily active users, the measure by which they explain how their community has grown, the growth there is actually slowing, which i fear will bring investors to compare snapchat to twitter which they clearly dont want to have happen considering twitters troubles recently. As you mentioned twitter, this is the first u. S. Social Media Company to list since twitter three years ago. How is that going to fare then when it comes to the outlook for snap . So snap is trying to counter that narrative by calling itself a camera company, by measuring itself in terms of daily activity as well. Twitter measures itself in terms of monthly activities. There are a lot of Little Things you read through the filing, snap tells stories in chronological order, twitter obviously should view the most recent first. But i think the numbers are just the same issues we saw with twitter when it listed. There was the mounting losses, the Revenue Growth right side, and then the user growth slowdown. So those are the three factors that twitter has to deal with and, you know, every company is different. But twitter couldnt come over that hurdle and to this day theyre still struggling to get profitable. Thank you for joining us live from san francisco. Now the first word news. Thanks so much. Bloomberg has been told President Trumps administration will impose new sanctions on iran as early as friday. Theyre aimed at punishing tehran for sponsoring terrorism and testing Ballistic Missiles. Our sources say it is not related to Irans Nuclear program. The National Security adviser mike flinn said on wednesday iran was on notice after it tested a Ballistic Missile last weekend. The u. K. Says it is leaving the European Union to gain control over its own tariffs and trade deals. Brexit minister david davis has outlined his governments vision for britains future in a 77page white paper presented to parliament. He confirmed the u. K. Will leave both the Single Market and the Customs Union which enabled british exporters to trade tariff free with the rest of the bloc. U. S. Authorities are nvestigating a subsidiary of panasonic that makes in flight communication and entertainment systems. The company said in a statement it is being investigated for violating the foreign corrupt practices act. Panasonic says it is cooperating with the agencies and evaluating the potential Financial Impact of the probe. Shares have just started trading. Theyre down about 2 . And sony shares have started trading as well. It re up about 5 after cut the profit forecast for the second time. Gaming chips were the bright spots and playstation 4 had the best quarter to date after strong holiday sales. Sony says net income will be 231 million in the 12 months ending march, down from an already reduced outlook of 532 million. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Thank you. Ubers c. E. O. Stepped down from prips Advisory Council over criticism from customers and drivers. His role prompted a back lash on social media after trumps controversial executive order on immigration. Lets bring in our guest joining us live from san francisco. So he was pretty much backed into a corner it seems leading to this decision . Yeah. This has been a p. R. Disaster for uber i think its fair to say. You know, they have a lot of liberal urban users and immigrant drivers and they were all pretty upset to see the company tied to trump even though, you know, obviously uber just saw this as way to negotiate for their policies, not an endorsement of every decision President Trump is making. Is this going to have any impact on the other c. E. O. s on this council . Eric i have to imagine there is more pressure on them now that activists have seen they can dislodge one of these c. E. O. s from the advisory board. I think uber was sort of uniquely weak you could say. I mean, in that their users and drivers probably cared about this more than anyone else. Its harder to delete google than it is to delete uber. I guess we should say delete tesla maybe or i. B. M. Those are the two tech c. E. O. s on the advisory board. It exposes them to more activism. Explain that to us. Why is the Consumer Base and the drivers, why does that make uber more vulnerable . You can go on your phone and delete uber. Then its trending on twitter. Its a sort of consumer facing company and they have to maintain this large base of drivers, many of them either first or Second Generation immigrants. I think there are just few Tech Products as intimate as uber and then theres also just the clear alternative in lift and lift was able to see the opportunity, donate 1 million over four years to the aclu. So there is just a clear alternative if you want to make a statement about trump. All right. Eric, thank you. And the c. E. O. Of uber leaving the Advisory Council of the president. Later in the show how will singapores economy be affected by Donald Trumps protectionist policies . Well have a guest in charge of shaping the citys growth policies. Up next jeffreys outlook for asian markets. Find out why south korea could be in a sweet spot. This is bloomberg. This is daybreak asia. Im betty liu in new york. Im yvonne man in hong kong. A quick check of the business headlines. The company will invest 700 million in indonesia over the next four years. Grab is ubers biggest rival in southeast asia. The singapore based company says it will build a Payment Service and set up a Research Base in jakarta and also plans to set aside a hundred Million Dollars to bank roll startups in mobile and Financial Services technology. Theyve introduced an upscale brand to shed the budget image and will roll out the first product in march at the geneva auto show. The new division will start manufacturing and begin sales by the next financial year. Tata is the parent of jaguar and land rover and reported losses in six of the last 10 quarters. And a source tells us indian telethon regulators will rule in favor of the countrys richest man by deciding free Data Services offered by reliance geo did not violate industry rules. He decision would offer relief case. All right. Investors are awaiting the closely watched numbers for the u. S. Market expectations are 180,000 in january and the Unemployment Rate to hold at 4. 7 . With us now our guests. Happy new year and thank you for joining us. Good morning. Happy new year. We talk about particularly the u. S. , kind after white swan i guess for some countries like japan here in asia but i guess you could say its kind of turning gray of late here. Given the fed first with the dollar down, yen up. Now were seeing that 10year yield. You show the charts and it really has rhythm. 0. 1 . Way outside. Not way outside but outside the b. O. J. s target range. Are they going to really have to buy bonds through today to really try to ease some of the concerns here . If they dont, what does this mean for equities . Is it going to be negative . The irony is that the b. O. J. Is getting back the very thing they want to, which is inflation. So just about everywhere else in the world, europe now is inflation rated at 1. 6. U. S. At 2. The Producer Prices are just close to positive territory in japan. So theres actually a natural reaction for the jgb yield curve to actually move up. The second thing is the b. O. J. , itself, created their own millstone around their neck because they also introduced flexible purchases. So in the past it was very much committed to a set target. Now theyve been actually much more relaxed in terms of the purchase program. That has led to this bit of confusion as to exactly what theyre doing. Thirdly, they also are finding it like the e. C. B. Very difficult to naturally buy bonds because most of the banks insurance and Pension Funds have a limit in which they have to hold a set number of bonds. So the difficulty really is for them that it is not easy to actually keep the yield curve down. Theoretically, yes. They can buy unlimited amounts but it requires issuance to come along to help them do that. So theyre being held hostage so to speak when it comes to the global events. What does that mean . Can you still be bullish . The good news that is real rates, ra el Interest Rates in japan are still very negative so that is actually very good news for equities. Secondly, all of the indicators in japan are turning positive. Exports have gone back nah positive territory. Corporate profits as the b. O. J. In the statement highlighted, actually very good. The irony is that it is not the whole story on the Japanese Equities is not necessarily dependent on the yield curve by itself. So what about the trump effect . This obsession when it comes to trade and currencies. Hes called out china, called out japan for unfairly devaluing their currencies. Now you see this kind of verbal invention from some of the members on his cabinet as well. Is that going to be a big headwind now that we have all this news about the spat with australia as well . I think the difficulty is that this is all would be very well coming from mr. Trump if the economy was doing poorly in the United States and, ironically, it is actually doing very well. So, indeed, the problem for mr. Trump is that he is pushing all of these proposals into countries about investing in the u. S. The trouble is the u. S. Is actually an expensive economy in which to produce goods. Theoretically most people would actually be based somewhere else than the u. S. Youre focusing more on this part of the world obviously given the low valuations we do see. You mentioned some here. What are you looking at . I think the thing here is what you have this sort of cloud over what mr. Trump might do. The irony is e. M. Trade is actually picking up. Pretty much recovered from the election. It is. I think japan came out very well from that. Yes we have all this big focus on the u. S. But over the last seven years theres been this nice sort of turning point for global traders, emerging markets trading with each other, and japan can piggy back on that. I think that is really where the export story lies not necessarily with mature economies in the u. S. And europe. Just bringing it over here to the u. S. , weve had various strategists tell us they think the markets under valued, fairly valued, and over valued. Where do you think u. S. Markets are . We would also say that, you know, a lot of the good news has got in the price. I think the best beneficiaries within the u. S. At the moment from any of the sort of trump proposals is the fact that its going to remain quite inflationary. So that means the yield curve ought to remain quite steep. And that really lends itself to the banks and the financials. So, ironically, a lot of the good news for the economy actually came under the Previous Administration thats run through now into the u. S. Equity market in terms of valuations and probably were still going to see rate hikes going through at least twice this year. That should keep the yield curve steep. Irrespective of any twitches from mr. Trump or any sort of worries about trade wars. So financial stand out is the best. But overall, the valuations in the u. S. Look quite rich compared to those in europe and japan and parts. However, it seems like investors are quite bullish about earnings prospects for u. S. Companies, sean. I want to bring up this chart weve got that shows how orward ratios, the gap between forward and trailing, excuse me, e. P. S. , earnings per share forward and for trailing that the gap is now widening and continues to, which tells you that in fact no matter what is going on politically, it seems like at least for investors theyre quite optimistic about the company. Sean well, again, its kind of ironic. But last year we had sort of end of 2015, early 2016, we had an earnings recession in the United States. That came about not only from a strong dollar but also the fact that the Energy Sector was a s p big drag on the u. S. 500 earnings. Now there is a very strong rebound from base effects and also of course the much Higher Energy prices post the opec deal. So good parts of the Earnings Growth story for the s p is actually coming from some sectors which are just essentially rebounding after pretty miserable 20152016. Energy has been one of the big ones and the second one has also been a turnaround for the u. S. Financials as we saw that yield curve start to steepen post 2015. So the earning story is still visible but some has gotten into the share prices over the last quarter. Thank you so much, sean darby the jeffries chief Global Equity strategist joining us. On the global markets. Much more ahead. Investors ask when amazons big backs will pay off. Well go over the companys line next. This is bloomberg. Betty breaking news out of south korea the Prosecutor Team saying it is now going to be searching the fair trade commission. This news on top of the line we got earlier this morning saying the prosecutor did get that warrant to search the president s offices according to yonhap again and we are learning this search could happen as early as today on friday. Yvonne there has been some resistance here obviously from the president s office. Theyve been trying to block the search of the blue house here saying there is some law that blocks searches in areas with state secrets unless that prevention greatly undermines the national interests. We continue to see here that the prosecutor in favor from the court here. Theyll be searching the trade commission as well as the president s office. All right. Continuing to watch amazon shares falling in extended trade after the company missed estimates on disappointing holiday sales. Lets bring in our intelligence tech analyst joining us from san francisco. This was a miss when it came to the revenue side of things. Amazon very much a Revenue Growth story. What happened . Reporter so, basically you can look at it from an absolute basis. Its not that bad but relative to expectations it did come in lower. And it could be because of the mix going up. That could be playing some role here. They grew the f. B. A. Program 70 in like a year and then also this prime day impact in a prior quarter. That could be one of the reasons. If you look at the guidance thats where the better story is. There is 4x impact in there, the leap year impact. If you take that out its not as bad as we think. But the Core Strategies of the company arent changing. Betty due think investors are in amazon are getting more impatient with the performance . Jeff bazos used to go wild and lose money and theyd still reward him with shares. Reporter so the investment phase we see in amazon is not going to go away any time soon. The reason is very simple. The retail and cloud services, the runway they have is very long. If you look at the penetration weight, some of the articles they do want to get in, theyre still not there so the investment cycle will continue. What they are investing in aggressively is prime member acquisition and retention and global sort of expansion of that prime member strategy sort of helps them in the longer term. They are looking at longer term, continuing to look at longer term just because of the Addressable Market that i talked about. So the investment lumpiness, the ebb and flow of profits in the core Retail Business not going away. Cloud services on the other hand is still going very strongly. Okay. Lets move from amazon though to another tech company thats dropping in after hours. Also after missing estimates. Reporter yes. So there was a new product in the line. We started the quarter or a couple months ago the expectations were higher and then the comparable was sort of easier, too, because they didnt have a new product last year or the same period. So they came in with that and that is what we were concerned about, saturation. Can they buck this trend . They dont have a lot of time to buck this trend. The next couple quarters they need to fire up the growth again to see the reversal or else it might be too late. So is the Company Going to be able to expand beyond action cameras then . That seems to be the big concern. Reporter i think thats the execution of the strategy. Thats where the worry lies, right . We thought they would get into these products like drones. You know, targeting enthusiasts or the sports enthusiasts of the world that use their products and expand. They were kind of late to the game. Finally they built the karma but it was backtracked with the issues so there were some challenges. So execution risk is what would. E a bigger concern great to have you, joining us from Bloomberg Intelligence. Up next, profits soar as the company deals with the u. S. Bribery investigation into one of its units. This is bloomberg. Yvonne 9 30 in tokyo. Weve been trading, about a half hour into the session. Pretty positive. Leading the board here in asia with the nikkei 225 up 0. 7 . Dollar yen dynamic certainly helping that with 112 95 but weakening this morning. Also a couple minutes away from learning if the b. O. J. Is going to continue to buy bonds today as we watch the 10year yield rise with 2. 5 basis points on thursday. Still hovering around 0. 11 for the 10year j. G. B. Yield. Betty lots of earnings coming out in japan. A busy day on the markets. Im betty liu in new york. You are watching daybreak asia. Lets get to the first word news now. Thanks so much. First up south korean news say prosecutors may search president ial offices as early as friday after getting a warrant from the seoul central court, there is impeachment over a Corruption Scandal that also engulfed some of the biggest corporations. On thursday her office said it would not permit a search of the president ial compound and yonhap says theyre searching offices the fair trade commission. Bank of america chair mark carney says surprises could still ab head as the u. K. Starts the formal brexit process. The Economic Forecast was upgraded for the second time and revealed that some policy makers have become more concerned about accelerating inflation. Carney says the central bank is ready to respond accordingly. The brexit journey is really just beginning. The direction of travel is clear. There will be twists and turns along the way. Whatever happens, Monetary Policy will be set to return, inflation sustainabley the target while supporting necessary adjustments in the economy. Deutsche bank shares fell the most in september after Fourth Quarter revenue at the trading unit missed estimates. The division slumped to its lowest shares since the financial crisis. Clients pulled back. He says he expects to make a profit this year which would be the banks first positive year since 2014. Let me be frank. Were certainly not satisfied with these numbers. However, let me use a farming analogy. If we want to bring in good harvests we must first sow. And nickel prices are on the rise as the philippines presses on with a Mining Sector crackdown. At least 23 mines will be closed and another five suspended accounting for as much as half of nickel output from the worlds top exporter. The president daurt campaigned on a promise to increase environmental and welfare standards in the countrys mines and the market has not riced in the supply. Thank you. Time to see how asian markets are shaping up so far this morning. It seems like were pretty positive when it comes to stocks but china is the big one to watch here today. David yeah, lots up in china and of course we just talked about nickel prices and watching the contract there in shanghai. I mean, suffice to say the contracts there tend to dance to a louder beat if you will. All right. Back to the equity markets very quickly. When you look at what is happening right now, just enough to nudge us higher. On hurdle by the way, 142 the asia pacific. Roughly speaking looking at 60 , 70 of stocks on the way up at the moment. Volumes are starting to pick up as well 30 minutes into the session. In tokyo and south korea. Flip the boards and have a look at currencies. 125. 11 roughly, when you look at what is happening with the south korean yuan we are back to levels right before the u. S. Election. November 8 is the last time the yuan was trading at 11. 47. Nickel there the last report in london. Yield unchanged. Ave a look at the 30year. The 30 is the long end of the curve is selling off right now over in japan. 30 is back to levels of roughly about this time last year. There we go. 88 basis points. You look at the 40 year were in back of a 1 . Were really waiting to see what the b. O. J. Will do later in the open Market Operations if it does step in to bring yields back down. Yvonne as we mentioned a lot of earnings out in japan today, honda among them. What are the stocks that youre watching . David so many earnings, betty. So many earnings. In fact, two full pages which i get to go through each and every one will be here for the launch of daybreak in australia. Just a few were watching, most of these guys on after the markets close later on. One stock im watching very closely here. Lets change things up here. In hong mpany listed kong and shen general. The Company Coming out with some earnings warnings if you will. So it sees a loss now of roughly 19 million but certainly the news line here is the company itself says the company may be at risk of being delisted. These shares of course are what were watching. This is a listing over in hong kong. This opens up in about roughly 15 minutes from now. Guys . All right. David, thank you so much. David ingles there with a look at the markets. A phone call between President Trump and australian Prime MinisterMalcolm Turnbull has rattled one of americas oldest alliances and is having economic and political impacts. We have all the details on this tweet, this explosive tweet. Yeah. This tweet as well as this phone call that happened about a week ago or so. Youd have thought it would be something cordial. It was probably anything but. Lets go to the Economic Impact of whats been happening over the past day or so. Lets take a look at the aussie dollar crossed with the u. S. Dollar. Last night it was up by about 9 cents 0. 9 . Similar now up about 8. 6 . It had been as high as 1. 1 against the dollar this off caution from trump and also because australia came out with the trade surplus, a record as we reported yesterday. Hopping into bloomberg as well, i want to show you this relative to a basket of currencies. This is w. C. R. S. , the world currency ranking. You can see the top. That big green line up 4 against the currency there. This is actually the biggest gainer the past 24 hours. Betty, you mentioned this tweet. Lets get to that tweet in case you missed it. Basically mr. Trump saying this. Do you believe it . The Obama Administration agreed to take thousands of Illegal Immigrants from australia. Why . I will study this dumb deal. Now, this follows reports in many media including the Washington Post which first broke it talking about the controversial call with mr. Trump and mr. Turnbull. 1250 people, saying, quote, this is the worst deal ever. Another superlative mr. Trump lamb bassed against mr. Durningbull is this is by far the worst call on that saturday that they spoke. Of course the past day or so he spokesperson from the white house came out doing damage control and saying this. He said, he has, meaning mr. Trump, has tremendous respect for the Prime Minister as well as for the australian people. He also got some rebuke from members of congress, chief among them, paul ryan. Majority leader. Australia shouldnt be worried about its relationship with our new president. Mr. Mccain, senator john mccain, one of the leading Senior Republicans here in the u. S. Calling australias ambassador saying, he has this unwavering support. Not only mr. Mccain but also other high levels of Congress Going to the australian ambassador basically trying to ease any sentiment there. Of course this is in a long and growing line of things that mr. Trump has talked about with traditionally u. S. Allies along with the refugee deal, he has been talking to japan and china about potential currency allegations and of course the wall and potential nafta renegotiations. Yvonne, this just the latest in a series of things. Doing a little damage control right now, mccain. Right before our global audience who may not be too familiar with this deal going on for years now between the u. S. And australia, tell us a bit more about this Refugee Program . For sure. First off, it has to do with about 1250 refugees and theyre being held on remote islands in the South Pacific much like this detention facility. This is off the coast of new guinea. Theyre men, women, and children, most coming from iran, sri lanka, as well as pakistan. Many of them here have actually been detained for years. If we take a look at a map, we can see where theyre actually based. Nearly 900 people are being detained here on this manus island in papua, new guinea and nearly 400 others here on this island. Nauru. Australia gives both countries money and Financial Assistance in exchange for the camps set up there. As for the reason australia wont take them is because of a domestic mood that is favoring border security. It started because of this right here. There are a bunch of people, shadows you might be able to make out on the norwegian freighter back in 2001 b 15, 16 years ago. Australia turned away more than 400 Asylum Seekers on this freighter at that time. And guess what . The australian voters approved. Today Prime Minister turnbull says it actually worked and he said illegal arrivals have actually fallen to zero from about 20,000 back in 2013. Australia says it still refuses settle anyone from either nauru or pap withdraw papua, new guinea despite this interesting number. About 80 of the refugees are confirmed to be legitimate. Last november president obama agreed to take all of them in but of course you know now mr. Trumps phone call with Prime Minister turnbull has put the fate of those 1250 refugees back up into the air. Back to you. Thank you. Weve got breaking news now. More on this. The prosecutor from korea now saying theyre going to be searching the president s office in 20 minutes time,. 0 00 a. M. Seoul time they were given a warrant i should say to search the president s house, also we learned last hour or so, that theyre going to be searching the federal trade commission as well as the s. S. C. Over samsung. Samsung as well as President Park engulfed in this Corruption Scandal, this investigation that really has ultimately led to the impeachment of the president from power. The state office, the president s office of course has been trying to block this. But it looks like this is going to be going through today. Right. It certainly sounds like it is heating up, yvonne. Im looking right now at the shares. You know, we did come off very early going in the session but just off the high of the session but were pretty much around flat right now t looks like it may be at least the little bit of sentiment affected in the korean market. Absolutely. That search is set to happen in about 20 minutes time. Meantime a look at more earnings. Sonys latest results missed expectations and the company cut its outlook. Still were seeing shares soaring in tokyo. Where is the optimism coming from . We were talking about all these headwinds. It is all about semiconductors. Chips, chips, chips when it comes to sony. Analysts showing essentially they are very happy at the turnaround in Sony Semiconductors business. This business makes camera chips for phones. Now weve got a report out this morning saying the Third Quarter results excluding the losses in the Movie Division which has been a problem exceeded expectations. They expect semiconductors gains to drive earnings. Sony basically giving a fouryear operating profit, the Semiconductor Division the most by all of all divisions up by about 300 million. Also strong sales of playstation 4 positive as well. You talk about the headwind. Yes. There have been headwinds. Movie division. It is expecting to see a 1 billion write down in the Movie Division which of course gave investors a little bit of a taste of what to expect when it did the analysis yesterday. It also did have some not so good news in terms of Third Quarter net income that was at the 174 million. More than a billion dollars a year ago. Operating profit at about 821 billion. But it also revived down the fullyear forecast as well at 230 million in the year ending march which is less than half of the forecast from october and still less than the forecast which was originally for more than 700 million in general. But analysts generally heartened by the chip business. And panasonic shares going the other way though after not so positive news from the unit that makes that infillet entertainment. Thats right. So panasonic amb onics one of the units, in fact one of the best known units that makes in Flight Entertainment systems and also Communication Systems within airplanes as well. That is being investigated by two u. S. Agencies, the u. S. Department of justice and securities and the Securities Exchange commission. Theyre looking at allegations panasonic avionics broke bribery and securities laws. Panasonic says it is. Ooperating with the agencies back to you. Thank you so much. Some of the big stocks to watch, much more ahead. Singapores built economic suction pest from a global push so how does it roll with President Trumps America First plan . Well hear from the head of the Economic Development plan in a few moments. This is bloomberg. This is daybreak asia. Im yvonne man in hong kong. Im betty liu here in new york. President trumps promises to tear up global trade deals and put America First poses a threat to export dependent countries. Singapore is one of those based on playing a key role in the global flow of goods and services. We spoke to the head of the countrys economic board about the dangers of a more isolationist United States. I think we have to watch closely some of the changes that will come up from the new u. S. Administration. On the other hand i think singapore is very fortunate in that we are part of asia and asia certainly is, has been the Growth Engine for the Global Economy for some years now and looks to continue that. It is urbanization in asia, the movement of people in asia and the growth in intraasian, cross border trans sections, and trade. I think that will provide the lift for countries in this part of the world. So due see china being the savior . Can china pick up the slack . I think savior would be over stating it but certainly china would step up to certainly look t the possibility of this as an alternative to tpp. For singapore we welcome all these efforts to strengthen the obal trading system and this is one step and we certainly welcome that and would be happy to participate. A lot of American Companies have set up regional bases here in singapore. Everyone from your facebook to Hewlett Packard to google. With trumps policy, with trump wanting to bring jobs back to the u. S. Will that impact jobs and investments in singapore . Well, many of these u. S. Companies in singapore not because they were offshoring jobs to singapore. For the past five to 10 years a lot of them have been investing in singapore to participate in the growth of asia. Tech is a very good example. Google went from about 24 in 2007 to more than a thousand people today. And we do not see that trend reefsing reversing. You seem confident about singapores future economic growth. What do you see as risk to g. D. P. . I am cautiously optimistic. If i look at some of the data thats coming up, it is projected 2017 well have about 3. 5 growth compared to 1. 7 or so in 2016. If you look at the p. M. I. In singapore for four consecutive months the p. M. I. Was above 50. Like wise in china for three consecutive months p. M. I. Has been in positive territory. So it is all of those are positive signs. So realistically 2 to 3 is reasonable. Not for 2017. I think in 2017 there is still mewhat of a drag from real estate and so on but for the 2 to 3 we believe that is sustainable. That was the chairman of the singapore Economic Development board speaking to us on this. Lets do a quick check of the business headlines now. Sources tell us fizer is exploring the sale of 2 billion worth of drug treatment. Says it looks to raise cash and streamline its portfolio. The company is considering a sale of treatments in cardiology, urology, and primary care which generates sales of more than 700 million. Were told pfizer hopes to sell the treatment as a package and hire jpmorgan to advise on the process. Ralph lauren shares plunged in new york after the company said the c. E. O. Is stepping down. He will be leaving on may 1, less than two years into the job after clashing with the companys founder on how to invigorate the brand. He will get 10 million in cash severance plus Health Benefits over the next two years. Ralph is not interested in running the business day to day. He does want to play an active role in the creative decisions including design and consumer facing decisions. In terms of reporting relationships, reporting relationships to stefan will stay the same through may and then ralph and i and stefan will work on an Organization Structure that makes sense. All right. More breaking news out of south korea right now. We are learning that the south korean president ial office will not allow the prosecutors to search the blue house and the compound. His is after we learned from yonhap news saying the prosecutor had gotten a warrant to search the premises, but theyre getting resistance from President Parks office right now. They have said before there is a lot that does block these searches when it comes to areas with state secrets. So well continue to watch that coming out of korea. The president s office not allowing prosecutors to investigate. All right. Plenty more to come here on bloomberg television. Youre watching daybreak asia. This is daybreak asia. Im betty liu in new york. Im yvonne man in hong kong. Financial markets in china will reopen in just over half an hour after the weeklong break for the lunar new year. Lets go live to beijing for a look at what we are expecting. Where should i even start . They were kicking back and munching their dumplings and celebrating the year of the rooster. All of these executive orders being signed off by trump of course and giving the impression at least that he is going to act on these very protectionist messages he articulated on the campaign trail. Of course chinas policy makers wont have missed that and will have been digesting that news for sure. I guess one Silver Lining to that is the u. S. Dollar. The weakening of the u. S. Dollar. And what that has meant for the yuan, the offshore yuan, which has strengthened 0. 6 in the last week. That follows of course that, january, the strongest month for the offshore yuan since 2010. So that is going to be interesting to look at how this spread now between the offshore and the onshore yuan has widened and likely pressure on the pboc to make that stronger later today around 9 15 beijing time. Well have to watch out for that. But certainly a weaker u. S. Dollar at least in the meantime. At least in the short term will be a positive. It will ease pressure on the outflows that policy makers have struggled so hard to try to rein in of course burning through many of their reserves to try to shore up the yuan. So a weaker dollar at least in he short term will be seen largely as a positive for policy makers here. Of course they will be looking ahead and looking at what the effects of the trump effect will be. That is a key risk seen by Bloomberg Intelligence this year. Back to the yuan the nominee for the ambassadorial post here in beijing for the u. S. Has said that of course there is likely that this label of manipulator hasnt been put on china because the stronger yuan has surprised donald trump. Another bit of positive news over the holiday period here in china is the holiday income, the spending has risen. Holiday income up around 15. 9 from the Previous Year so look for the consumer stocks in the market. They may take some positive tifty from this. The suspend the spending is still high here particularly in the retail and restaurant space. Thank you so much. Weve been following these developments that are unfolding very quickly in south korea. The south Korean Special prosecutors who have gotten this warrant to search the president s office. Theyve arrived and the president ial office has said in Text Messages they wont allow the prosecutors to search the office. So there looks to be a standoff happening now in south korea. Yvonne, certainly it has been fast and furious over the last hour seeing whats gone on here. Yvonne right. The question is what are they really looking for when they get into the blue house . According to a spokesman from the Prosecutors Office theyre looking for president ial advisers and security staff. They could be the target here. More from seoul, next. This is bloomberg. Its 9 00 a. M. In sydney, 8 00 in new york city. You fromng to bloombergs asian quarters. This is a Bloomberg Markets asia. Asian stocks gain. Trumps protectionism may move markets. The United States is planning sanctions against iran over missile test