China a currency manipulator. We are 30 minutes away from the open of trading this friday in china and hong kong. It has been a pretty tepid day across markets in asia, really pulling back in terms of risk appetite. Sophie is taking a look at how the markets are faring. Asia, major markets in in the red. We have the dollar holding up following Steve Mnuchins remarks. Areo have resources stocks on asian markets this friday, this as the commodity rally is seeming to stop. In japan, the nikkei 225, lower for a third day, but toshiba, 8 , thisgains of coming from news that it is weighing a westinghouse chapter 11 bankruptcy as an option. Toshiba shares, certainly in focus given the story around not only its westinghouse unit but its chip stake sale. We also have the kospi snapping a fourday advance. Extending theg, 8 , drop. It is due to be listed march 7. In australia, the a sx 200, being dragged a six 200, being dragged by copper and iron ore prices slumping. Both gold and crude hold gains. Take a closer look at the petroleum share price performance. Peter coleman has said that the company is considering expanding its lng operations and does see a midyear start for the project. Hasgovernor philip lowe said a pickup in lng production will boost australias gdp and of course, he was giving a testimony to parliament extending the morning when he weighed in on the aussie. Morning when he weighed in on the aussie. Certainly, we are all watching that commodity rally and what this means for commodities and currencies. On the campaign trail, donald trump said he would brand china a currency manipulator on his first day in office, but now that he is in the white house, his Treasury Team seems to be changing his currency tune. Ive got Kathleen Hays with us. Is his another case bark worse than his policy bite . Kathleen i believe it remains to be seen. One thing that is for sure, Steve Mnuchin is the new treasury secretary, and it sounds to a certain extent like he is doing what treasury secretaries do, following procedures. See,id hes waiting to hes waiting for the treasuries april report. 2015 tradeof the facilitation, trade enforcement, and it was three things a country must be doing with the United States on trade to be a currency manipulator. The first one is a large, persistent, bilateral trade surplus with the u. S. The second is a current account surplus that remains above 3 of gdp and onesided currency market intervention. Right now, china is violating one of those, the big bilateral trade surplus. Lets go to the bloomberg. Ive got a terrific chart that is going to paint a picture of what is going on. That the bilateral trade surplus with the u. S. From billion,now 31. 5 running just under 30 billion on average. China the one thing continues to violate, and as of april, it was violating the second one, your current account surplus being above 3 of gdp. That figure has come down. There are actually five other countries on the watchlist, the monitoring list, as the treasury calls it to that includes japan, taiwan, switzerland, germany, and others. Imf is defending china. They say chinas currency is in line with fundamentals. Haidi if the trump team wants to see a weaker dollar to boost trade, are they happy about mnuchins comments . Kathleen thats a very good question. Steve mnuchin said today he sees limited fiscal impact of this year. The dollar did week in a bit. Weaken a bit. One thing he said very specifically, he expects to have a tax reform plan in place by have moved markets on the expectation that tax cuts and Infrastructure Spending would be in place. Pimco has said this is an issue. Tax reform, infrastructure, those things look likely to be 2017 orut to the end of 2018, given that congress has pledged they are going to do something on obamacare. More things that are progrowth are likely going to take a lot longer than some parts of the market expect. Kathleen its interesting, isnt it, that donald trump and what he says cuts so many ways. Lets take a look at the bloomberg. Are going to take a look at another one of our charts. Are going to take a look at another one of our charts. Just how the dollar has been on the soft side, you can see the 55day moving average. You can see where the dollar is now. You can see that uptrend has seemed to level out. One more thing i would like to mnuchin says he is looking closely at a border tax. Tment task mnuchin this is very important to paul ryan, the republican key on the tax reform plan because this would raise the revenues that would help to pay for the kinds of tax tax cuts the republican m and trump want to make. Haidi a lot coming out overnight in terms of putting together the jigsaw pieces in terms of what the u. S. Policy looks like. Kathleen hays in new york. Lets get the first word news with haslinda amin. Haslinda Jeff Sessions has Obama Administration order ending the use of private prisons. In a memo released thursday, sessions directed the Justice Department to return to its previous approach. The move comes as the Trump Administration pledges to crack down on illegal immigration. The bureau of prisons says most inmates at private facilities aliens. Inal u. S. Bancorp says ceo Richard Davis is not interested in joining the federal reserve. Sources told u. S. President trump he was being considered openings. Three however, bancorp says davis is focused on a smooth transition when he steps down as ceo in april. The European Union has slipped a britain the bill for its decision to leave the block, and it could come to 63 billion. Christian kern became the first eu leader to put a has slipped a britain the bill for its decision to leave the cost on te u. K. Brexit bill. The 60 billion euro fee comprises the commitments made during the uks membership, such as pension obligations to eu officials. A member of the European Union has to be better off than a nonmember. That, its going to have some costs. Aia isn insurer expected to see a jump in hong kong later after beating estimates for 2016. The value of its News Business estimates ofnst 24 , while new premiums climbed 28 . Aia is said to be among bidders for the Life Insurance operations of thailands commercial bank. The fundamental, underlying drivers of our business do not change. They are run demographics, Savings Rates, protection, penetration cover, organization. These factors are strong. I think what we said in the release this morning is we had a strong start to 2017. Seen 2016 being strong, and weve seen our start to 2017 also being very strong. Haslinda global news 24 hours a day powered by more than 2600 journalists in more than 120 countries. I am haslinda amin. This is bloomberg. Thanks. By do beat fourthquarter estimates after expanding into new areas to overcome restrictions on web advertising. We have columnist tim culbert joining us from taipei. 2016,had a pretty ugly bad publicity as well. What were you looking at in this report . Tim the key theme is they are trying to put all of that behind them, that the worst is over, and that is what they said in their opening statement. They spent a lot of time making sure that their customers are complying with stricter new rules that the chinese place,ors are putting in and that has taken them time to go through the process of making sure they do comply. Top line, it beat by only a little bit. Level, theyting missed, and at the bottom line, they beat. Thats because of oneoff investment gains. Exciting. Hat the key point is, 2016 is behind them. They are hoping a rebuild for the future. Robin lee spoke a lot about ai today as being the next big thing, as it is for a lot of other people, but for baidu, how is that effort going . Tim there are two ways to look at it. On the technological side, they are doing very well on Driverless Cars, cloud computing. That is what they do. Monetization is going to be the key, and we are not seeing that yet. Right now, we are in this transition. We can see that search is on long, slow decline to the new areas such as Driverless Cars and cloud computing, that hasnt picked up. Is toallenge for baidu manage the transition from the old business to the new business. 2017 is going to be the year for that, and what investors need to be looking at is, is that money coming through . Is that return on investment common . How much of a return is that going to be . All of this investment doesnt mean much unless theres going to be a return at some point. Haidi still a very cool catchphrase, but a lot of investors are wondering how you make money off ai. Thanks for coming on for us. Still to come on Bloomberg Markets asia, after being bought out for 4 billion, the ufc says its got plans to grow in asia. We are going to hear from the head of its International Business later this hour. Just ahead, we get a look at local currency markets. This is bloomberg. A quick check on the latest business flash headlines. Quarterly revenue at Hp Enterprises fell short of estimates, weighted down by rising component costs and competition from rivals. Hp trimmed its annual forecast to . 98 per share, below 2. 03. S estimates of Ceo Meg Whitman is facing an uphill battle against amazon whose cloud revenue jumped 47 . Microsoft almost doubled. For your revenue for amex china missed estimates, coming in at 118. 5 million. The average forecast we heard was about 122 million. Later on Bloomberg Markets asia, we will be speaking to amex chinas cfo or that is half past 10 00 hong kong time. Glencore has opened the door to a big dividend, aiming to reward shareholders for sticking with the company through the commodities crisis. The minor has signaled it will pay out this year or next after holding its debt. Latest toould be the issue a dividend this month, following rio tinto and bhp billiton. The u. S. Dollar, falling against major currencies as treasury secretary Steven Mnuchin says he expects low Interest Rates to persist. Joining me on set is the westpac senior fx strategist. Great to have you. Its very interesting where this dollar trade is going, isnt it . There appears to be so much uncertainty. The fed is very much on message, very consistent, but how big of an unknown is policy . It makes his presentation to congress on tuesday more important. Markets are hoping that we get some details on what hes got planned. The border tax, does he like it or does he not like it gekko when are the tax cuts going to come . They are clearly on the agenda, but it makes a big difference to your forecast if something is going to happen soon or if you have to wait for health care reform. Infrastructure, how much might be spent, and when would it happen . If stock markets have priced in the positive news, the bond markets and fx are not quite so sure. Haidi i like this story we have on bloomberg about of the commodities currencies. It is saying that a number of these currencies, the loonie, if you take a look at the aussie, the brazilian riel, they are struggling to regain momentum and breakout. My question is to part. Do you anticipate this commodities rally is going to continue, and by extension, what happens to these currencies . It is notable that the aussie is the strongest currency year to date, but admittedly, it was bashed in at year end. Ore. Bove 90 on iron coal has rebounded. There are some supply restrictions, particularly china. It something weve gotten wrong in the markets over the past 12 months, the resilience of , butdity prices in general no, we dont expect it to be sustained, because the nature of Commodity Prices is that the miners are making a great deal are sustained. Es they should increase supply over the next year or so. Haidi the aussie kiwi, i just want to pull up this chart on the bloomberg. That is a oneyear chart of the kiwidollar. You see a key resistance level approaching. This also has to do with the milk price story. Issometimes, a proxy we use iron ore divided by dairy or whole milk powder. We have seen in the past couple weeks that dairy prices have come off a bit. Both iron ore and coal have kicked on. The returns in the relative commodity basket, the advantage has been with the aussie over the kiwi in recent months. Both of them are pointing to aussie hyphae qe being more fair, maybe 112. What we need to see is a breakup in this resistance. Its going to take a lot of work , because it keeps failing, but once it does, a lot of people will get on board. Haidi how much attention are you paying to the currency manipulation, currency war rhetoric, that has just been circling, but we havent seen anything out of the white house . That is going to affect china, going by these metrics. It would be japan, germany, south korea as well. It is something ive been watching closely over the years. If we look at the new benchmarks, theres a watchlist. Really, theres actually no real way any of them are going to be hit compared to the october report. Its due in april. They would need to change the criteria. While trump has backed down on his previous pledge to name china a currency manipulator on administration, they can change the rules, and at this point, we dont know if they are going to change the mean, and does the label as much as the action they take . Haidi do you expect that is going to continue . Shortterm, it looks that way. We could see the dollar by year end, but shortterm, its been very dull. Sean callow from westpac with me. In just a moment, risks on the horizon. The rba governor says he is concerned about growth and the housing market. Philip lowes testimony, up next. This is bloomberg. Haidi the reserve bank of australia governor philip lowe is just wrapping up his. Estimony to lawmakers he has been saying a lot of things. Of broaddropping these hints that we are probably done easing. Is no longer next dictation of further Monetary Policy stimulus, and speaking specifically to australia, he expressed reluctance to cut rates further. People get into more debt, and there is Less Consumer spending. This reinforces a point he was making earlier in the week about the labor market improving and that giving the reserve bank reason deposit on any possible further Interest Rate cuts. Then he said today he doesnt see inflation falling further. Thats another reason appears to be drawing a line. Haidi he did talk about the strength of the aussie dollar. It has come back a lot from the giddy heights of a couple years ago. Of the strongest performing currencies of the year. I find it hard to say it is fundamentally undervalued, but i would like for it to be higher. I see the appreciation we have today is helping the economy. Its helping the tourism sector. Its helping the education sector, and even parts of manufacturing are feeling a bit better. Philip lowe, getting the end of what has been a long morning. If hes not finished talking yet, im sure he soon will be. Haidi exec we would he wants to do before the weekend, im sure. We are going to leave that there. Bloomberg subscribers can at thee to watch th function live on the terminal. If you can also find other diary entries coming up later this week. Out,ee them sort of listed and there is the opportunity just to catch up on what you may have missed it the first time. Round, press conferences lets take a look at how markets are faring. Its a lackluster way to end the week. Weve got japan and south korea looking like this to the nikkei 225, just flat, struggling to stay above that gain line. Kospi, off 4 10 of 1 . Australia come also looking like this. Ofi stocks, seeing declines about 0. 5 . We are not seen much of that hand over where we hide had the dow gaining for a 10th Straight Record high in that session. 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. Haidi this is Bloomberg Markets asia. I am haidi lun. We are looking forward to the market open. What a gloomy day it is looking in hong kong just before that market opens. Declines from sydney to tokyo. I really like this quote from john manley, this trump reflation rally means that the optimism is a mile high in the markets but about an inch deep. Quite a lot of risks coming through. Did see that weakening dollar index, and that is playing out across these asian currencies, really hitting hard markets like tokyo. The shanghai market is just coming online. Im going to take a look at how they are faring. Moves inad a number of the regulatory space, some indication that authorities are clamping down on financial markets. Bit on weighing a little sentiment. Speaking of whats going on, mixed messages from the Trump Administration around labeling china a currency manipulator, filtering into the currency markets. Over in china, stocks falling about 1 10 of a percent. The hang seng, marginally higher. We saw momentum in that rally fall on thursday. 1. 2 . P over looking at what else is moving in hong kong, i want to draw your attention to im next china, rising over 3 today. It did post net income for 2016 at 36. 1 million, just below the estimate of 37 million, and revenue also coming in above estimates. We do have toshiba climbing over nine being percent 9 today. A spokesman commenting on a nick cave on a report out this morning, the spokesman saying they are not aware of that being the case, and line corp. , adding 5 over in seoul, rising the most since september. It says it will increase its stake in snow. Sophie. Hanks for that, not a terribly engaging and to this trading week, but its fair to say this rally has gone on for quite some time, a 70 trillion Global Equity rally. Lets get you caught up with our first word news. Police say the murdered man said to be the brother of north korean dictator kim jongun was found [indiscernible] malaysias News Agency Says are expected to arrive soon to help formally identify the body. Independent candidate Emmanuel Macron has moved into the lead in the french president ial candidate campaign after agreeing to work with the centrist. The latest poll gives macron 22. 5 . Marine le pen leads the race ahead of the first round of voting in april but is expected to be beaten in the final ballot. Penor advisers to marine le hazmat blackrock, barclays, and ubs to explain her economic programs and her plans for france. This is the first time the Front National has been approached. The interest underlies how seriously they take their responsibility. A volkswagen executive has faced court in detroit on charges related to the emissions scandal. A not guilty plea was entered on Oliver Schmitz behalf. Hes charged with conspiracy and other crimes in dw scheme to 600,000 vehicles that did not meet pollution standards. The companies expected to plead guilty on march 10. Global news 24 hours a day powered by more than twice its hundred journalists and analysts in more than 120 countries. I am haslinda amin. This is bloomberg. Haidi thanks. Asias thirdlargest insurer aia Beat Estimates in its 2016 earnings. The company saw the value of new business rising 25 last year or that was led by businesses in hong kong and china. The ceo told daybreak asia that the business drivers have not changed despite chinas attempts to stem capital outflows. Fundamental, underlying drivers of our business do not change. They are run demographics, Savings Rates, protection, penetration, cover, urbanization. These factors are strong. Oft we said in the release this morning is we had a very strong start to 2017. Weve seen 2016 being very strong, and weve seen our started 2017 also being very strong. Yearina didnt start the there were purchases when it comes to Life Insurance policies and investmenttype policies. We have seen the surge of chinese visitors coming to hong kong and buying insurance policies. I want to throw up a chart for some viewers to see. I think its up to 19 billion hong kong dollars already. Seen a trend since of these curbs have been put in place and after . Did we see it speed up or actually slow down before it was too late . When you look at our hong kong business, we have had success right across channels and across all customer segments. 50 per annum compounded growth rate in our hong kong business since 2010. This is just a continuation. We have seen visitors come in. Slowed, anditors people buying insurance was less than 1 of those visitors that came in. A few hundred thousand actually bought insurance. Fundamentally, our business is very strong, and its been very strong since 2010. This is not a new phenomenon. You sit half of your annualized new premiums were from chinese visitors. Is that not true anymore . That continues, absolutely. It continues, but i think it wont take away from this thing t our hong kong business and across the business come if you look at aia group, our compound growth rate per annum has been 28 . This is a strong group. This is a great portfolio of businesses in an asian marketplace that is unparalleled and unprecedented in terms of its potential. There is talk in beijing they could be easing restrictions when it comes to Foreign Ownership for foreign life insurers. It would be very beneficial to aia, of course. You already have that advantage being the only whollyowned operation in china. How would you expand your business in china beyond the provinces you operate in . We dont speculate on rumors at this point. You have to be setting your eyes out on some areas in china. Of course. We continue to look positive. If you look at our china business, just the china business, that business has grown a times in value of new business since 2010. Its grown six times in operating profits and earnings. Weve got a tremendous business there. If you look at china penetration, its doubled since 2000. It will double by 2020. Haidi that was the aia president and ceo mark tucker speaking earlier on daybreak, asia. China has decided to embrace the digital age as it moves closer to introducing a crypto currency. The pboc is also stepping up its scrutiny of bitcoin and other digital tenders. Today, bitcoin setting more fresh highs. Exactly. Promised to get into this cryptocurrency space. They have been looking at it for a couple years. Seems to be,cally we have to be involved. More and more Digital Transactions take place in china every day. Are using their smartphones rather than their wallets to buy everything from a can of coke to a lunch, to ordering their new suit. This is transforming the way the economy runs. The pboc wants to be involved. Why not create its own cryptocurrency . See suchuston will we a pbocbacked cryptocurrency . About a year ago, they said there was a statement saying, this will be soon. We have yet to see an official announcement about when the cryptocurrency will be publicly launched. It is safe to assume there are tests ongoing. Soon. We know how Retail Investors embrace these various asset classes. If it takes off, how significant would it be echo it could be transformative for china in the Payment Systems there. The people we interviewed said come its like trying to predict in the 1980s how the internet would transform the economy. We just have no idea, and its going to be big. We dont know how big, and we dont know when its going to be big. The sender is a broad takeup of this cryptocurrency. It effectively would replace the middleman and a lot of these daytoday transactions that people make. No longer would you have to use alipay. Ownwould use pbocs cryptocurrency. That makes transactions very cheap. For the pboc, it gives them unprecedented assuming it is adopted it would give them unprecedented levels of visibility on consumer spending. Its an of waiting for the National Bureau of statistics to compile monthly reports, they can do it from their super computers. That could really transform the whole economic infrastructure. Haidi when things come to china, you have to assume that even the base Case Scenario should be scale. Still ahead on the show, were going to speak to ufc on the growing market for next martial arts in asia and how they are planning to benefit from that. This is bloomberg. Haidi a quick check on the latest business flash headlines. Merck says it is taking a posttax charge of 1. 9 billion related to the development of a hepatitis c treatment. Merck says it made the decision because of changes in the market for the treatment affecting what it could charge. Drug as part of a 2014 acquisition. It also revised its Fourth Quarter 2016 earnings to a loss of . 22 per share from a profit of . 42. Hong kongbased casino operator and to says its Controlling Shareholder will have any future funds needed to complete a casino in south pond. The project has drawn the attention of u. S. Regulators, having earned more vip revenue per table then even the biggest casinos in macau. Is workingays it towards a dual listing in hong kong and new york. The budget carrier has reiterated plans for an initial Public Offering for its crew Training Academy and says the proposed sale of its aircraft policing arm is at the dealership stage. Asia reported a drop in net income on made a fall in revenue. Mixed martial arts is one of the fastestgrowing sports. One company that has been investing in mma in asia is ufc. The outfit has announced its longawaited return to asia and its ambitions to launch in china. Weve got the Senior Vice President john carr joke or, i should say. Great to have you. Welcome back to asia. You have had a few missteps along the way. What kind of penetration are you looking at in this part of the world . You put onnumber asian fans as part of the global pie. Pace, 35 lobal fan are from this region, but from a revenue perspective, its lower at this point in time. We have seen doubledigit growth in tv rights over the last few years. How much of that success is dependent on fighting, the next champion fighter in asia . You guys alluded you were close to finding a chinese fighter. Our you able to give us more detail about that at this point . Joe we are actually waiting on the contract, but that should be signed in the next day or so. Talent development is the key piece of the puzzle in asia. Where weonly market havent had a champion at this point in time. The strongest markets have been north asia, japan, and korea. That is a function of them having the highest level of talent. Our Biggest Issue in china is having someone who can compete at the highest levels. Debutghter will probably at our singapore event in june. In terms of those markets, china would be the big one just in terms of the size, the scale. How big can this sport be in china . How big are you renditions in terms of how much traction you will be able to get . Joe we think we can be massive in china. There are a tremendous amount of athletes, and the beauty of mma, you dont have to be 67 or 300 pounds to complete compete at the highest level. We have weight classes down to 100. 5 pounds. We think chinese talent can compete at the highest level. We have been successful in macau, but operationally come its different going to an americanowned casino in macau or going to shanghai or beijing for the first time. We will be in china with an event in the next 1218 months. Haidi this business, the deal when it was sold last year and bought last year, it made headlines. 4 billion was the number. How is the process gekko talk to me through the process of making that process worthwhile. What is the outlook for the business to make that price tag seem reasonable . Joe yeah, the reality is we got withased by company thousands of employees around the world. There will be some redundancies on the headcount side. The key investment pieces for the new ownership, the u. S. Tv rights deal. We expect a meaningful increase. It was our international and global growth. Asia, the last few years, we have had nine people in singapore trying to cover the entire region, and now we join an organization with nine or 10 offices and over 600 employees in this part of the world. I think the opportunities are endless for us, and we are happy to be part of a Larger Company and ecosystem. Haidi can you put a number on how much you expect over the next year, five years, 10 years, the asian region to continue to contribute to headline growth . Yeah. To put some numbers on it, asiapacific right now is generating 45 million in media revenue. Media makes up about 80s percent of our business at this point. In the next 35 years, we should be able to get that number up to 70 million, 80 million. Haidi you have said in the past that a lot of this depends on the success that you have in local partnerships and local joint ventures and working with promoters and venues. You have had a few issues, and had to cancel events. There have been problems with the south korean event. How is that going, and do you anticipate 2017 will be a smoother ride, and you will be able to get more regular events to get the visibility up in this part of the world . Joe yeah, the only cancellation we had last year was in manila, and that was a fighter injury, which is difficult to control. In correia, it wasnt a hang up on our end. Its the only suitable arena in seoul. That should be done at the end of this year. My expectation is we will go back to seoul at the beginning of 2018, and this year, we are confident in what we will deliver. We are going to be back in tokyo in september, as well, where we have played a number of times. We are going to have two events in australia and new zealand. I wouldnt categorize it as a rocky road, other than the one hiccup last year. We are completely confident in our schedule for 2017. Haidi good stuff, joe. Best of luck with that. That was joe carr, joining me from singapore, talking about the asian expansion ambitions. Up next, japan is trying to get its workers to leave the office least. Ne day a month at we are going to take a closer look at this plant to get salaried men and women out and spending. This is bloomberg. Haidi one of the units in the google family is suing uber for patent infringement, claiming uber has stolen trade secrets in the development of self driving cars. It is an accusing employees accusing employees of lifting Technical Information from googles Autonomous Car project. Theftays calculated netted half 1 billion. An offer to buy the Global Shares of global Premium Hotels. He already controls 71 of shares. A statement says the offer price wont be raised. Take his second attempt to double Premium Hotels private. Ana says nothing has been decided about making aviation a consolidated subsidiary, but after the nikkei news says ana may raise interest to 67 at a cost of 890 million. It currently owns 39 with the remainder held by Hong Kong Investment firms. Ana held a Board Meeting today with an announcement to follow. Well, happy friday. Who doesnt want to leave early on a friday . Starting today in japan, many employees can do just that with the governments blessing. Its a plan to get the chronically overworked population out of the office by 3 00 p. M. And to get them their yen. Our correspondent joins us from tokyo. What is premium friday. Why is it called premium friday, actually . Its like the way you said. There is a Government Campaign to get people off work early. Its once a month on a friday, so you can get to go home at 3 00 p. M. Its called premium to give you , and a of good feeling good something that is waiting for you on a friday. The government is encouraging people to get out early, not to just go home, but to spend it on a fancy restaurant and got chongqing. Unless we see a huge number of Companies Actively pushing out and implementing this plan, we dont see a huge economic impact. Haidi what is the public response to this been . For people who know about it, they are generally happy, and if they are able to get off at 3 00 p. M. , they would be very happy. There is a bit of skepticism about how real this plan is. Not a lot of companies, not a lot of employers are going on board with this. 3 of employers are planning to do this, and some people dont really know about it. We will see how it goes from here, and hopefully, a lot of companies will get on board eventually. Haidi yeah. For now, its that lucky 3 that works for those companies. Thanks for that, men generally joining us from tokyo. Up next, we are going to go live to beijing and hear from one of chinas leading companies about what is driving growth. Our interview with the credit ease cfo is up ahead. This is bloomberg. It is almost 1 00 p. M. In sydney, 9 00 p. M. In new york. Im haidi lun. This is Bloomberg Markets asia. Haidi asiapacific markets close a week on a cautious tone, but falling metals are hitting resources companies. Taking his time, Steven Mnuchin and says there is no rush to brand china currency manipulator. The rba governor warns australia about wages and household credit. Philip lowe would also like to see a stronger aussie dollar. We will be live across the shanghai, beyond from singapore, beijing to new york and l. A. We start in hong kong. At thekamaruddin looking markets, a subdued end to what has been otherwise a good week. Sophie cautious friday, directionless trading for asian markets, which may come to a head next week when trump and janet yellen are to deliver keynote speeches, but today, a andpatches of green otherwise i read today. Hong kong could be a lead indicator if asian equities are reading for a pullback, the hang seng falling by. 3 , staying below the five month high, and the hshare rally has tapered this month. In hong kong, aia shares gaining falling its earnings report. On the mainland, shanghai but shares. 25 , gaining and shenzhen, and the nikkei 225 predictably falling as Stephen Mnuchins comments per dollar losses. Also fallingurers today, but the likes of toshiba climbing over 8 . That helping the topix trade water today. We also have a surge in shares of a Food Products maker , rising asthe topix much as 80 as a potential cards,may be on the although nothing has been decided at this point. Korean and aussie shares a meeting the drop in major asian markets, materials and dragging in sydney and across the region. Bhp, rio tinto, and fortescue metals all in the red today. This is as the commodities rally is seen to stall. Iron ore continuing to fall in china, and copper for the retreating from its 20 month high. Th philip lowe says he does expect the commodities rally to pull back, and is more favorable towards aussie dollar being lower than higher. Haidi is it a blip or the start of reversal . Sophie there on the markets for us. Thank you for that to lets get first word news with paul in sydney. Paul shares rose after fourthquarter profit beat higher estimates, earnings was 13. 2 yuan. Giantinese search reported six under 65 million active monthly users. The ceo robert lee has told an Investor Conference call that baidu will lead Artificial Intelligence and china. Attorney general Jeff Sessions has reversed an Obama Administration order ending the use of private prisons. In a memo released thursday, sessions direct the Justice Department to return to the previous approach. The trumpomes as Administration Pledges to crack down on illegal immigration. The bureau of prisons says most inmates in private facilities are what are called criminal aliens. To see a jump in hong kong later after beating estimates for 2016. The value of its new business rose 25 against estimates of 24 , while new premiums climbed 28 . Of premiumeight income reached a 22 billion, with net profit of more than 4 billion. Aia is said to be among the bidders for thailands siam commercial bank. The underlying drivers dont change. ,hey allow Savings Rates penetration cover, urbanization, these factors are strong, and what we have said and released this morning is that we have had a strong start to 2017 as well, so we have seen 2016 being very strong, and weve seen our start to 27 june also been pretty strong. Say vxalaysian police nerve agents have been found on the body of the man who was the halfbrother of kim jongun. It is among the most toxic and rapidly acting in the world. Malaysias News Agency Says relatives of kim jongnam are to arrive soon to formally identify the body. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thanks for the come up. On the campaign trail, donald trump said he would brand china a currency nuclear on his first day in office a currency manipulator on his first day in the white house be a joins us now with more analysis. Is it this trump is canada versus trump as president thing again . Yes, and just the reality of being a president , overseeing certain procedures in place, apparently some of which he and s new treasury secretary Stephen Mnuchin, are happy to go along with. Phen mnuchin said today so lets look at what the three criteria are. The country is running a persistent trade surplus with the United States. It is about 3 of gdp and onesided currency market intervention. This is what the Treasury Department looks at, so it turns out that china is fired leading only one of these. Lets jump into the bloomberg 5216. D look at btv those bars are the trade surplus. Average it out, it is roughly 28 billion dollars, but that is too high for the u. S. Treasurys comfort. That is where china is now in violation. If you look at the next chart, we see the white line that shows of chinas gdp to its current account surpluses. The 3 , it was above mark. It is back below that mark. That, china is back in line. Interesting that the imf says is properly valued according to fundamentals. Again, we will see what the Treasury Department decides in april. Haidi i suppose the other interesting part of that dynamic is that if the trump team wants to see a weaker dollar to boost trade competitiveness, are they happen that Stephen Mnuchins comments on this limited fiscal stimulus has undermined the rally in the greenback . Did say todaychin that it is possible the impact of fiscal steps will be limited this year, so that is something that hit the dollar, not so great for the yen, a strong yen hanging over asian markets as this we comes to a close. Mr. Mnuchin also said that he expects to have a tax reform plan in place by august. So this is something if we hear more about will help the dollar, but lets look at the trend in the dollar looking at another bloomberg chart. The white line is the bloomberg dollar spot index. You can see how it climbed and started to come back down. The yellow line is the 55 day moving average. The blue line is the 100 day moving average. You can see how they were trending up nicely at the end of the year coming into 2017, and now they are leveling out, losing some steam. Stephen mnuchin also talking about a border adjustment tax. Valueould basically be of added tax on imports into the United States. Now why is this so important . How do we think this all together . It is a key part potentially of republican paul ryans tax reform plan. You would raise money, billions in fact, that could help pay for tax cuts on businesses, which of course Stephen Mnuchin says he wants to target middle income taxpayers, make businesses more competitive and even simplify the tax code. Interesting isnt it that it is he year when the tax policy in the u. S. Is moving markets potentially. Haidi everything in the u. S. Policy wise is moving markets right now, kathleen. It has been a lot for asian markets to digest in this fridays session. Efrin haze for us there in new york at lets look at this dollaryuan relationship. We do have mark cudmore joining us from singapore. Mark, appreciate you coming on for us. It is interesting, isnt it, i wonder if this raining in of the rhetoric on currency wars and currency manipulation from the white house is because someone is actually set the president down and said, look, if youre looking at excessive yuan weakness, you may be a few years too late because the pboc has really been trying to defend the currency . I think that is an optimistic interpretation, that the comments from trump may stop completely, but certainly the administration has made clear they are unlikely to officially designate china a currency manipulator, and that makes sense, they do not fit the criteria by the Treasury Department. The yuan has been stable since last july, completely stable against the basket, and has only been 1. 5 against the trade weighted basket, so the yuan has been stable and the dollaryuan move has been about the dollar more than anything else. At the moment, the yuan is falling to the weaker end of that tight range against the basket, so it is interesting that they are correlated in many ways. Haidi time and time again we say it has been a dollars story. Is it still more relevant to look against the trade weighted basket . It is hard to say. In terms of trade purposes and longterm economic reasons, i think it is definitely more relevant to look at the basket. However, it is true the markets seem to be focused on dollarsee ny, and especially nonfx traders. Is dollarseebout ny, so when you see its by come you go, oh, my god, there are outflows in china, and that is bad, and you worry about the yuan situation. It tends to dominate sentiment shortterm, but from longterm purposes it is better to look against the basket. Haidi total optics there. I wanted to ask you, what are you looking, as i was saying with kathleen, so much for asian markets to digest right now. We are seeing whether this is a blip on a reversal when it comes to commodities prices. Is that going to be the main focus in main concern Going Forward . I think massively so today. Over the last week or so we have started to see signs of topping out in the commodities complex, and now finally iron ore come that has full hard in the last 24 hours, but youre seeing copper breakdown. You are seeing the Agricultural Commodities trade week come a so the bloomberg commodities index has traded poorly over the last week, and that will feed into other assets. It is important that coming to a tax plan in the u. S. Will weigh on the dollar come yields, equities, commodities, so that is a lot to digest and it is a slight distraction on this currency miniter comments, but the tax plan, so the more relevant thing to focus on. Haidi and certainly if this is going to be an argument for the reflation trade bears but this is the start of that reversal that you might see, it will be quite some time before we get details on policy. Mark, really appreciate that. Can follow all the days trading action on our markets live blog on the bloomberg at mloiv go. There is Live Commentary and analysis coming to minute by minute, an expert editors to find out what is affecting your investments right now. From metals, you can see that dominant story has been metals falling out at the start of the Asian Session and permanent permeating through in terms of sentiment. I asked the says china has overtaken america is the biggest market good next on Bloomberg Markets asia, hear what the companys cfo has to say about the outlook. Up next, the head of chinas aboutg Fintech Company the changing habits of investors there. This is bloomberg. Our next guest runs one or two. s largest lenders, which also is a Wealth Management firm. Se using robo advisers. Is the company trying to change the mindset of investors . Yes, well, Asset Allocation is part of what they are focusing on, and those robo advisers, but lets get more details from the ceo of beijing. E here in thank you for your time. Lets start with the Wealth Management side of the business, how has the appetite for chinese investors change when they are looking for overseas assets . Aboutre are some keywords chinas Wealth Management industry, and high and ultraHigh Net Worth individuals. One is moving from fixed income to equities. One is from china to global. And the one is from product centric to allocation, so we see abouthey are learning Equity Capital markets, Venture Capital, and they are interested in longerterm investment. Globale also becoming citizens, investing on a global basis. Also, they now understand better about the Asset Allocation. That is something you are trying to help them with an hopeful to reduce volatility in Chinese Markets are well amongst chinese investors, but in terms of assets they are looking for overseas, we have seen the chinese keen on property, but what assets are you hearing from your investor clients are looking for when they look abroad . Specificg about products and asset classes, people are interested in Venture Capital private equity. For example, they are very interested in Silicon Valley innovation and also innovations that happen in israel, and also quite interested in real estate and finance opportunities, not alsosingle properties, and hedge funds, critically quantitative strategy. There is a huge interest there in that. You have used robo advisers to help with this Asset Allocation for investors that you say it could help reduce is volatility. It seems like a bold goal. How much success of you had and what degree, what percentage, of the Asset Allocations are now being done by robo advisers in china . Wealth management is the leading Wealth Management company in china. The way we are helping investors is for height worth and High Net Worth investors, we do this onon line combination model. We have Financial Advisors to serve them. We have the largest financial toisor team in china, close 3000 Financial Advisors, but , thefor middleclass affluent investor community, we utilize technology. We have robo advisers solutions for them through their mobile phone. There is no human financial advisor, and through technology, we teach middleclass investors about Asset Allocation. Theow significant have impacts of the capital controls and china then when you are looking to help us investors purchase Assets Abroad . Actually, we have a domestic solution working very well. Those investors who have u. S. Dollars, already, they are more interested in global asset a roboion, and we have advisor solution for those smaller investors, and also a diverse set of products, solutions, for those ultra High Net Worth individuals, including capitald to fund in markets category, and private equity, Venture Capital equity, and also in Real Estate Investment category, so they have fund to fund that can help them meet longterm investment, able to do like a double digit returns with diversified risks. It must make your job more difficult, the capital controls . We are not in the position to help people work around that. Havenk they foreigncurrency offshore, we can help them, yes, but if they b trying to build a diversified portfolio and china, we are also wellpositioned to help them. Where do you see the domestic opportunities then . There is concern around the slowdown of growth and the buildup of death . Boomingew economy is big time. We are talking about technology, health care, education, Consumer Services and so on. Ll these sectors are booming for example, like our private equity, Venture Capital fund to funds is a leading player in the field. Leading vc pcof firms helping highgrowth companies in china, so that is what investors are hugely interested in. And also, some Quantitative Hedge Fund strategy, also happening in china. , and we play an active role in that regard as well. Thank you. The ceo of creditease giving his insights on the growth of the Wealth Management industry and sector here and china, and some of the opportunities as well for domestic investments, particularly in the new economy. Tomi fascinating stuff, mackenzie there in beijing, especially cans the backdrop of the landmark reforms to rein in risks in the Financial Sector where expecting to come through this year. Coming up next, the risks ahead, why the rba is worried about credit growth and the Australian Market housing market. This is bloomberg. Haidi the reserve bank of australia governor philip lowe has wrapped up his testimony after some three hours in front of our lament. Paul is following this story for us. It was a marathon morning for phil lowe. What were the takeaways . Paul every time he speaks, he force cold water over expectations. He talked about household debt. On consumermpact spending. He said is it really in the National Interest to get more employment growth at the expense of creating vulnerabilities. Employmentwth and are improving and does not see inflation falling further, so running a line through anything that would cause him to cut rates again. He said forget. 25 rate cuts. I wish people would focus on other things. Haidi like of the aussie dollar come a top performer this year, but staying on message when it paul paul comes to currency. It has been one of the bestperforming currencies of 2017. He was asked the question to recreate about it, and here is what he had to say. Hard to say it is fundamentally overbite, but i would like it to be higher, if i had that choice. I see the appreciation we have today is having a noticeable effect in the economy. Helping the tourism and education sectors and even some parts of manufacturing feeling a bit better. He had a 10 note with him, unveiling a new design for the bill to be released in september. Haidi very exciting indeed. Coming up, we will be live in los angeles. This is bloomberg. Paul i am paul allen with the first word headlines. HasEuropean Union threatened to split the bill for leaving the block read it could come to 63 billion. That was the first to put a cost on the brexit bill. It comprises various commitments during the u. K. Came in the ship, such as pension obligations to eu officials and promises to budgets. A member of the European Union has to be better off than , nonmember, this is for sure with respect it is going to have some costs. Macron has moved into the lead in the president ial campaign after a greeting to work with the centrist candidate. 22 latest poll gives macron support ahead of fillon. Race, le pen leads the but is expected to be beaten at the final ballot. A volkswagen executive faces charges on relation to the admissions scandal. Eight not guilty plea was submitted on his behalf. He is charged with conspiracy and other crimes in the scheme to sell nearly 600,000 vehicles that did not meet pollution standards. The company is expected to begin the on march 10. Five other vw executives charged in the case are in germany. Budapest withdraws from the race to host the 2024 summer olympics, leaving just two cities in the running, raising questions about whether the organization is in crisis. Los angeles and paris are now competing for sports biggest event. Rio still those contractors millions of dollars for the 2016 games come at when the tv audience fell 17 from london and 2012. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thanks, paul. I am haidi lun in sydney. This is Bloomberg Markets asia. Last ofounding out the the trading session, asian trading week, lets look at the latest with sophie. Going into the break, the nikkei 22 five falling. 1 , set for a third day lower, machinery makers dragging down stocks. Banks sliding, hshares falling the most in the region, falling. 7 , the hang seng falling. 5 , followed by the drop in australian stocks, down about. 7 as materials dragging, iron ore prices getting a reality check, and singapore sacking this friday here it is so all in all, asian equities set to close out friday more subdued than how it again, but it changes its tune for the dollar, eking out some slight gains here. We are seeing it again against de10 peers. It is makingen, its biggest gain, so that dollaryen at 112 point 82 coming off the session low for this pairing of 112. 60 here. Told us this week that the dollaryen could break the heights of the year if trump delivered a significant tax package. Markets are hoping that details will be forthcoming next the, but for the most part, yen Still Holding below 113, and is the days laggard in asia. In the opposite direction, the korean won rising for a fourth day, at its strongest in three months. Theeconomist says that market is betting the odds of a march rate hike is probably low here, so we have seen that filtering into market sentiment, and the dollaryuan has new the bottom, with importers boosting dollar purchases. The boj hoping to clarify confusion around its debt buying. Next week, they will have specific details around the volume and timing of its bond buying. Today, they shared some details around bond purchases of longer dated tenure over 25 years. Haidi thank you for that, sophie p are President Trump continues his drive to boost the u. S. Economy, calling on Corporate America to raise more manufacturing jobs. Thisve Kathleen Hays on story. Kathleen, i mean, he can ask, but what can they really do . Can they really boost u. S. Manufacturing . That is a very good question. Donald trump convened some 24 ceos at the white house today ge, the ceo of lockheed market lockheed martin. You remember when he pressure them to reduce their price. Basically he is saying that one of his biggest priorities is to bring manufacturing jobs back to the United States, and he wants them to help him, but our Bloomberg Intelligence team points this is not easy given the trend of the last 40 years. Lets look at this chart prepared by our Bloomberg Intelligence team. You see the orange line . Tot is what has happened manufacturing jobs since 1979, a little uptick lately. The white line is manufacturing output. What does this tell you . Manufacturing has gotten lean and mean and productive, and you can produce more output with fewer and fewer workers. This is what ceos are up against if they want to help Us Manufacturing jobs in the u. S. It is interesting that in spite of you might have thought donald trump was browbeating the ceos, but it seems like there was some good will held at this meeting. Chairman andt the ceo of dow chemical said after the meeting. We in the Manufacturing Sector come all the ceos here today and last meeting, are encouraged by President Trump in his cabinet here at some of us mostsaid this is the pro Business Administration since the Founding Fathers. I wonder what George Washington would say to comment on what he said. It was different among our Founding Fathers and mothers. At any rate, it does seem there was some goodwill created in this meeting, a lot of behind closed doors. Nevertheless, dollar trump continues to pound the table for u. S. Manufacturing jobs. Haidi and not too long from now, he may have that chance to shape Monetary Policy as well. But Richard Davis is not interested. Long atdid not take awkward we had a source tells Bloomberg News that mr. Davis was under serious consideration, but very quickly a spokesman for u. S. Bank corp. Is not interested it. Foras been a u. S. Bancorp 10 years as ceo and is getting ready to retire in april and once to continue on as chairman during a smooth the transition. It is interesting, janet yellen, stan fischer, dan tarullo on banking regulation, they are all slated to step down from their jobs next year, from the specific jobs. The will leave, there are two seats on the federal board of governors that barack obama was never able to get filled. That means five open seats potentially for donald trump to put in place, and these terms last for many years, so it could have a take impact on the makeup of the fed them a but i guess Richard Davis has Better Things to do. Thank you so much for that, kathleen. All right, lets head to show business. Profits falling 13 last year compared to 2015 as sales post their slows growth in eight years. , lets look with imax china executive with us on the program. Decreased box office activity, an increase in the number of orders for the screens. In 2016,Record Numbers more than the previous two bank years combined for you guys. Does that speak to overcapacity . First, thanks for having me. No, i dont think so at all. Mature movie market, you have ups and downs and it is difficult to predict how the box office will unfold. And china has the seem to have some Great Box Office years come a but we look at the fundamentals of our business, and signings, installations backlog, and signings with repeat customers are very important to us. 230ad a record signings eight. Our backlog is 330 four. Our installations are at a record 117, and we are doing business with repeat customers, with a lot of top players in multiple deals with them, so we have set the stage for the next year. It is supposed to be an excellent film year with multiple releases, and we are thrilled with where we are at today. Haidi you are the Market Leader in china, but there are other players in the space, dolby the ,oard tories laboratories but are you concerned this market will get tougher . We have competition all over the world. In north america, europe, and other places, but no, to be honest with you, as you said, our signings and installations are at a record pace this year notwithstanding the introduction d, or anyolby, four other competitive thing. It is a good sign and demonstrates that people are looking for a differentiated experience. We have repeat customers coming back to us. I think that reflects how they do imax. They view imax as an important part of their offering in the cinema of differentiated premium for their customers, and it has turned out well at the box office as well, so i imagine we would not get those deals in place if they had any concerns about imax. Haidi historically content has been a challenge is to what you can get in china. Deal. S. And china signed a to increase the number of films allowed in china on a revenuesharing basis. That agreement is up this year. The bulk of those films are in imax 3d, so you have a lot at stake. Do expect that agreement to be extended or expanded, and how does trumps tough talk on china and trade potentially damage that relationship . There has been a lot of talk about what will happen last year with the wto agreement. We feel pretty good with where we are at right now. Last year, we show 37 movies in china. We have one screen per complex, thats like a film every week and a half, so we are getting the films and that we want. Goes up and more comes come in, that positions us even better for opportunities come and there are a lot of things at play. It is not just the number of homes that get in. It is the timing of when the films get in and get released. We have been very successful best far in china based on the deal we have in place, and we will see how everything unfolds next year, and hopefully whatever happens it will be a boost to our benefit, whether it is any of those factors i mentioned. Haidi so jim, do expect that deal to stay in place at least . They are talking about renegotiating it right now. It is still very much in the early stages. We will see how it all unfolds, but again, i look at the chinese film industry, it is an industry where they require content. Their screens are there and exhibitors all need content to put on the screens, so they have an open in the past when they renegotiated it in 20112012, and we will see how things unfold over the next year when it is coming up for renewal. Jinpinghen president xi this is, there was an opening up of this industry, permits, productions, coproductions, allowances between hollywood and china. Do you think potential trade tensions, is that a great uncertainty going into this year . It is out there. It is definitely something that im sure people will watch and but again, ity, is an industry in place where content is required and content is important. The chinese are very focused on their own home developed content in times of chinese local language films, which there is a Record Number of them released this year, but the Chinese Consumer loves hollywood films as well. There has been some liberalization with the number of the films i got in last year overall, and again, we will see how it all unfolds, but like i said, there are so many pieces that play that hopefully whatever will end up happening will be a positive for the industry. Haidi jim, just before you go, i want to bring up this chart on the bloomberg that shows the correlation between simin is imac sales, ang decline in sales growth over the past year. Do you anticipate 2017 will be a recovery your when it comes to the chinese box office. I know that the estimates we are seeing for this year are perhaps a little bit more modest, and therefore more achievable. Films that of the are coming out on paper, we have had a great start to the year so far. Localy to the west, a language film, performed exceptionally well for us. Played exceptionally well for us in the market. We are indexing in terms of our percentage of box office on a particular film very well with the most recent comes we have in doing historically, so when you take a look out in 2017, some of the big franchises coming out that have historically played exceptionally well in china, weathered be transformers, weathered be fast and furious, whether it be guardians of the of superherober movies, justice league, wonder woman, a new Christopher Nolan movie coming out, dunkirk, it sets the table for 2017 to be a of theere the year blockbuster. There is a lot of good ones coming out in 2018 as well, so we are quite happy with where we are at in terms of setting the stage for Box Office Growth next year, and we think with those types of titles and coupled with the chinese local titles, we think 2017 is going to be a really good bounceback year. Good stuff. Ight, thank you so much for coming on to us. Of imax the ceo and cfo china. Coming up next, new business, aia reports positive results. Aia has given up earlier gains in the hong kong session, shares now down well over 1 . A broadlyking at downmarket, the hang seng index down. 4 . Still, the pairing of those earlier gains despite the business beating estimates last year. Aia ceo hopes that momentum continues to 2017. The fundamental underlying drivers of our business dont change. Demographics, Savings Rates, penetration cover, urbanization, these factors are strong, and what we said this morning is that we have had a strong start to 2017 as well, so we have seen 2016 being very strong, and our strong start to 2017 as well. Haidi lets get more on this and shanghai. What are the main factors driving the growth and earnings last year . Hi. A half, past year and we have seen a aia and other Hong Kongbased insurers be really strong beneficiaries of chinese investors have looked to invest in hong kong Insurance Products, and that has been driven by a decline in the yuan and the august 2015 surprised evaluation, which was a turning point for interest in hong kong Insurance Products. Aia along with other hong kong insurers have really benefited from this trend. Haidi what about capital outflows . Do we see that crackdown having an impact . Can see froms you the results, there has not been a strong impact on results so far, although bear in mind that one of the biggest curbs came in towards the end of october of 2015, where union pay said that its credit and debit cards could not be used for hong kong insurance purchases for anything other than accidental insurance, so we have not seen some of the latest curbs actually eating baked into those numbers, and the big question of course is how their earnings will look Going Forward, and we already have some analysts saying that well, you know, given a strong avenue of growth might potentially be cut off or at the very least slow down, we should see growth dropped from double digit to single digits. Good one. Right, thanks for that. Chinas central bank has decided to embrace the digital age and is moving closer to introducing a crypto currency, but is also stepping up screwed and see of coin and other digital currencies. Malcolm has more on this force. This is if you cant beat them join them . Bit of that. O be a bitcoin is on a 10 or. It has been increasingly used in china for things like wealth of diversification, like those Insurance Products in hong kong. Bitcoin is an alternative for people who are wanting to store elsewhere. Lth china has a bunch of other crypto currencies as well, and the pboc has been cracking down, a bit more screwed to the on these. On the other hand, it is in the process of developing its own version. Now this could be quite transformative because mobile payments are so ubiquitous in china, and alternative way to do that could have interesting implications. Haidi how soon do receive see this potentially being introduced . Moment, they are studying it and testing their own crypto currency. The latest clear guidance we got was about a year ago when the crypto currency would start soon. A year on, it is still not there, so the short answer is we dont know when. What we do know according to a people are telling us is that it is under tests. Other Central Banks around the world are making similar tests, so we will have to wait and see when it comes. Haidi all right, good stuff, Malcolm Scott there, potentially a pboc back crypto currency. Saudi aramco, why saudi arabia might not see the valuation it wants. This is bloomberg. Haidi i am haidi lun. This is Bloomberg Markets asia. Arabia says saudi aramco is worth more than 2 trillion, enough to consume apple twice over and have enough room for they may but still have to settle for less than that lofty ambition. In our Bloomberg Energy reported. There are new private estimates coming under aramco speculation. Yes. To value a lot of ways an energy company, and saudi arabia used one of the oldest in the Energy Industry to come at its 2 trillion figure, and that is our company is worth the on,nt of oil we are sitting and saudi arabia has one of the Largest Oil Reserves in the but some private firms are saying you have to look at the revenue coming in, the taxes you will have to pay, other things. They see maybe a little less of outlook than saudi aramco does. You seehy would potentially a final valuation that is lower . That there is a violation is lower, it will because of a couple of factors. One is that the company has to pay a lot of taxes on Oil Producers to the government because the government relies on income turmoil so much. Government will still be in control of the company, and so investors will not have much say in terms of shifting money to dividends or things like that, so private investors might be less willing to buy into aramco than a private company of the same size. Haidi why is riyadh even considering the sale . How will a disappointing valuation factor into that . Of a quandary for them. They are looking out in the longterm. They want to diversify their economy away from just oil, so they are thinking if we sell a fraction of saudi aramco and the company is worth 200 trillion and we take 100 billion from that and put it into a sovereign d, we can invest and then by 2030 when oil demand is dropping, we will have other things to stand on. Haidi all right, dan, thank you so much for that. We will have more analysis on that story in the next hour of the show. A down day. Ng at shery ahn will be up next to take a look at the market action. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Jon good evening. Im jon meacham, filling in for charlie rose. We begin this evening with politics. On tuesday, the Trump Administration announced sweeping plans to report undocumented immigrants, including those without a criminal background. President trump also indicated that a revised travel ban would be issued very soon. On monday, Lieutenant General h. R. Mcmaster was named National Security adviser, replacing the controversial michael flynn. The pick was regarding by many as stabilizing to an otherwise turbulent administration. Thus far, turbulent seems a more