We are 30 minutes away from the open in china and hong kong. Asiabergs southeast markets, singapore, malaysia coming online, joining this session which has been positive. Japanese market leading and gains after getting a arrest by it on the dollaryen. They are ahead of the key speech from President Trump. Sophie is tracking the markets for us. To the respond in the dollaryen strength, we are seeing japanese shares higher about six or send following the rally on wall street. Take a look at some movers on the nikkei. Gaining. 5 . This Company Makes jet engines. It also builds refineries and Nuclear Power plants. It is said to have booked a onetime gain on a Properties Sale in tokyo. Toshiba following about 2. 6 , using the earlier drop. We did have a japan ceo saying it does face a risk. One of the reasons including this liability could exceed assets. We are seeing a gain of about. 1 . Earlier we did have australian stocks open weaker, now up about. 33 . Helped driveally the seller profit season we saw for australian equities. I want to take a look at the currencies base with the dollar base with thees dollar gathering strength ahead of trumps speech. We are seeing the strength soften somewhat and the u. S. 10 year yield come down to about 2. 35 . The yen gathering a little bit of strength but still above the 100 day average. The dollaryen still off the session lows. I want to show you a chart to show you what is going on given this lowball utility environment we are in, which some investors are promoting for being too dollars. We are seeing volatility in the yuan giving way to a sense of calm. It does show that offshore yuan volatility is set for the largest monthly drop since 2005 after a january marked by aftermathves and the of stricter capital controls and rising money market rates. A stable dollar has helped narrow fluctuations in the yuan. Lets take a look at the offshore yuan. Ahead of the fixing today. Offshore yuan volatility tumbling to a 15 month low as investors turned less bearish. Said the economist yuan is no longer a safe bet as capital outflows become more balanced, helping firm up the currency. Person says the yuans oneway depreciation has ended. It is of great interest to trumps newly confirmed wilbur ross. Haidi certainly that is going to inform some of the statements we may or may not guess get on it comes to the chinese currency and threats of a currency war. Airbag maker takata has pleaded guilty to wire fraud related to its potentially lethal product, linked to the death of at least 17 people. The Company Must Pay fines and compensation worth 1 billion despite victims trying to force a delay in the settlement. Ramy inocencio has the details. What more do we know . Aroundhis all centers the pleading of guilt around the wire fraud, the one fraud allegation that basically they said they did admit to falsifying data to carmakers, and that did cause these debts, at least and that did cause 17, theaths, at least airbags causing shrapnel to explode. 1 billion is the settlement. Lets break that into its three parts. Million goes to the automakers themselves. That is to cover the cost of the recalls to reimburse those automakers. ,125 million, a smaller chunk goes to the victims and their families. Another chunk, 25 million, for the criminal fine as it centers around the department of justice investigation. The detroit federal judge who heard the case and allowed the pleading of guilt, came out and said he could have had an even bigger payout of more than 1 billion, the judge saying the destruction of the corporation would probably be a fair outcome. He also said it would not be fair for the victims and would put takata out of business. Also, the pleading of guilt was not actually sure whether it was going to be accepted by the judge. Victims had said the wording of the settlement maybe they werent open to that because it could shield the automakers from some of the accident victims getting paid out. On monday, a new lawsuit saying the five automakers may be potentially were buying faulty airbags in order to save money. Nissan,g toyota, honda, ford, b w bmw. Takata is under probation for three years and subject to a compliance monitor. Haidi this is not over for the company. They are saying the settlement results in a Justice Department investigation the sentiment result is from a Justice Department investigation. Ramy that is potentially put to rest, but there are lawsuits takata is facing from consumers and states. Takata has already been sued by dozens of drivers and passengers. Those lawsuits allege that there are complaints of Excessive Force with regards to those exploding airbags, but minus the shrapnel. Takata is also facing a desire by the u. S. To extradite three of its executives in japan. One possibly good thing is this potentially removes a major obstacle to the sale of takata. Onential buyers include from sweden as well as key Safety Systems in china. Haidi a long way from being resolved. Thank you for that. Lets go to first world news. Sources are telling bloomberg best softbank is in talks to merge with intel set. We are told a deal is conditional on setting aside money to purchase bonds from investors at a price higher than they were trading at last week. That would value a transaction at about 18 billion. They are also said to be talking to ses. The south Korean Special prosecutor may indict jay y. Lee on tuesday along with several other executives. They are being investigated over the influence peddling scandal that put lee in detention and impeach the president. Samsung denies making donations to win government support. The Group May Announce reform plans on tuesday afternoon. President trump will propose raising defense spending by 10 . In his first Budget Administration officials spending by 10 in his first budget. Officials say it will be offset by cuts to federal agencies, state department and epa hit the hardest. He has promised not to hot social not to cut Social Security and medicare. The plan has to pass through congress. Another of President Trump steam has been given the thumbs up. The senate has confirmed wilbur ross as commerce secretary. He becomes the richest member of the trump cabinet with bloomberg estimating his worth at almost 3 billion. The president has said he will leave the u. S. Will lead the u. S. In trade negotiations. Global news 24 hours a day, powered by more than 2600 reporters and analysts in more than 120 countries. This is bloomberg. Haidi thanks for that. With agns of strain brokerage dismissing 90 Staff Members and shutting down its u. S. Equity research operation. Our finance reporter laura kellog joins us. What do we know so far . Laura what we know is that in the u. S. , we have cut about half the people who work here. It is a shutting down of the u. S. Equity operations so all the analysts and support staff, as well as a few traders. Again, that is half of the u. S. People that work here. Haidi how has the company been doing recently . Is this an indication of a weak performance . Laura they have been doing poorly in asia, but also in the u. S. , i am told it might be better than asia. If you look back through a couple months ago, in september, the company told people globally , 15 hundred people, we would like you to take an unpaid vacation of 10 days because we are trying to save. That was something very unusual for any brokerage firm. It is something the brokerage has done in the past three different times when they have experienced trouble. 2013, 2008, 2009 to save on costs. It is pretty drastic. Haidi one of the most high profile elements of the story is that mike, a high profile analyst, was terminated. Do we know much more about that . Laura i spoke with him a few moments ago. This is happening on the night of one of the most important investor dates. Jpmorgan is going to be in new york presenting to its investors everything they want them to know for the coming year. Mike mayo is going to be attending this event tomorrow. He let me know that is something he will be going to. We should be hearing from him as he normally is, a sort of thoren in the bankers a sort of ,horn in the bankers sides asking what they are doing for investors. Story is this a broader about the trying market conditions, the tough situations faced by small brokerages . Have they been faring well . Laura a lot of problems, especially in the u. S. , for smaller brokerages. I remember looking back, to peek at capital into mind, topeka capital was one that came to mind. It is because of change in the equity markets. If you are not a big shop and you dont have the traits coming through, for smaller firms it is quite difficult even if you have prominent analysts. Whether it is mike mayo and banking, or a lot of Technology Analysts who were prominent. Even if you have those Good Research ideas, it is difficult to get some clients to continue to give you flow because of the electronic training. Difficult, too, for some smaller firms. We have really seen issues here in the u. S. Haidi that is playing out with the clsa story. Laying off more than half of its staff in the u. S. Today. Still ahead, we speak to a danish Robotics Company helping to drive automation across the asiapacific region. Plus, the worlds biggest agricultural Trading House tells us about asias growing appetite for meat and fish and how that is helping its push into the reason region. This is bloomberg. Fori oh weaker demands a commodities has hit profits among bigger players. Lets take a look with Haslinda Amin with us in singapore. How are the big names in the industry reacting to the is swings in the market . Haslinda they are focusing their strategy and diversifying. ,f you look at cargo cargill the largest agricultural Trading House, it has looked into meat processing, fish. A representative joins us this morning. It plans tosaid grow in asia more than the rest of the world. Give us a sense of what investments you are looking at. Just for people who are not aware, we are a private company in the u. S. We have been involved in food and agriculture for many years. We are involved in Food Ingredients like cocoa and chocolate, starch and sweetener oils. Basic processing, trading, animal production as well as animal nutrition, as well as trading of financial and industrial products. We are doing something of similar note in asiapacific. We certainly have opportunities to grow here. Theou look at the growth in marketplace, whether it be population, gdp growth, changing diets, all of these play into the things we do. Haslinda what exactly are you investing in in asia . There is an increasing demand for protein given the rising middle class. What are you doing about that . We are adding animal nutrition capabilities. For example, we have recently built a factory in vietnam and north india. We have recently built a cocoa processing facility to serve a growing demand in that region. We have recently opened a new soy facility in north china. Those are examples of organic growth. We are also looking at how we can partner. A couple of examples we have recently partnered in the philippines with a company on valueadded processing of chicken for their business. We have done a Similar Partnership in indonesia. Haslinda are you looking for acquisitions now . Certainly. We see all of these tools haslinda where . Are you in talks . We certainly have things going on. A recent example is we doubled the size of our Palm Plantation in indonesia. That is something we are interested in. We certainly like china, important geography for us. In some cases, Partnership Might make sense, in some cases acquisition. India, certainly, if you look at south asia, a huge population. It has got a rapidly increasing middleclass. All of these things are driving demand and looking at ways we can either partner or acquire. Haslinda 16 investment in asia. That seems pretty low. And you are pretty much understaffed and quite a number of markets. Can we expect you to be ramping up your investments . That is our intent. When you look at 60 of the population lives in this part of the world, if you look at food and agriculture, over a third of global trade occurs in the region. Our goal is to be a leader in the market we are serving. Haslinda double your investment . That is an in vicious that is an ambitious target. We would like something in 20 . Our aspiration is to be the Global Leader in nourishing the world safely and sustainably. You can do that if you are not the leader in asiapacific. We are going to be active in this area. Haslinda you have talked about getting into frontier markets, the likes of pakistan, myanmar. Where are you . Interesting journey. When you look at south asia, it is a huge population, rapidly increasing middleclass, changing dietary preferences. All of these things play two things we do, and we are underrepresented. We are not as big as we would like to be in india, very small in pakistan. We currently sell to bangladesh and myanmar, but we dont have a physical presence. We have different projects underway. In some cases, the markets are still quite small. Haslinda i need to jump in. Can you quantify the increase in investments . 20 , 25 , 30 . I cant be specific, but in some countries where we have limited presence, it is going to be a very large percentage. In other countries, for example china, where we currently have 68 locations, 9000 employees, a 5 or 10 improvement is significant in terms of scale. Haslinda we will leave it there for a moment. We are going to a short break. Stay with us. This is bloomberg. Haidi we continue our conversation with alan willis, cargills asian boss. Give us a sense of where prices are headed this year . I would say the best descriptor of the markets today is one of abundance. We have been fortunate to have really good growing conditions in the northern hemisphere. We are currently facing good growing conditions in south america, and that is being felt by the markets. We have seen a decline in Commodity Prices. It is also important to point out that while we have had record production, we have had record consumption and record trade. Haslinda all seeds are headed at this point, there is certainly ample supply but we are in the middle of the growing season in south america. We are early and about to enter weather concerns or whether markets in the u. S. It is too early to tell. The important thing is, we do have haslinda can you put a price . I cant. The world is volatile. A year ago, we had a problem with brazilian corn. This most recent year, we had a problem in indonesia with palm oil. Currently it is really warm with winter crops in india. We need to continue to have Large Production because trade is continuing to grow and the overall size of demand continues to grow. Haslinda traders seems to be the big issue here and it impacts your business in a big way. With trump pulling out of tpp, countries becoming more isolationist, protectionist, what are the prospects and how is that impacting cargill . Trade is something we are very passionate about. As you mentioned, we have seen an increase in trade barriers, whether it be tariffs or nontariff trade barriers. Effectively that is a tax on both producers and consumers, a concern. As i mentioned, the growth in Global Demand for food and agriculture is largely in south and southeast asia. In this part of the world, there is limited arable land, so for food security, we need to have open trade. It is concerning seeing those tariff and nontariff barriers coming into place. The fact is we have a Global Portfolio of assets. When shifts in trade occur, we are resilient, so we are not dramatically impacted. It is a concern in terms of food security. We are very active in those discussions. Haslinda you are a global company, 150,000 employees, one quarter of whom are in the u. S. They include the immigrants. With trumps immigration policy, which he is likely to implement, how are you preparing . We are very happy to work with the Trump Administration and other Key Stakeholders in a bipartisan manner. There is a number of issues very important to us. We mentioned trade. Certainly Immigration Reform is an important topic. Haslinda can you expect some operations to be moved out of the u. S. . I cant speculate on that at this point. The important thing is that we are interacting in a meaningful dialogue with the administration on these issues that are important for the u. S. And the world. Haslinda we thank you for your insights today. There you have it, the asian boss of cargill. Haidi good one. Coming up next, President Trump promising Something Special when it comes to health care. Later on tuesday, we take a look at the policies and Spending Plans he could announce. The markets in hong kong and shanghai are getting underway shortly. We will have the opening numbers. It is an upmarket they are joining. This is bloomberg. Haidi it is 9 29 a. M. In hong kong. We are counting down to the open of markets in shanghai and shenzhen. Im haidi lun in sydney. We are looking at the market trading in positive territory today. Uncertainty on the horizon. We have janet yellen speaking towards the end of the week. All of the focus is on the speech, the first joint session of congress that President Trump is going to be speaking in front of on tuesday night asia time. We are getting hopefully some more details about the infrastructure spending. He has hinted it is going to be big, really impressive. Markets are getting some buoyancy at the moment. It is also being helped by a rebound in the u. S. Dollar index , falling last week for the first time in three weeks. A recovery today giving respite to some asian currencies, particularly the yen. That is a boosting sentiment when it comes to the japanese market. Lets take a look at how the shanghai and Hong Kong Open is setting up. Here is sophie. Sophie i want to kick off with the yuan fix coming in stronger. This is volatility in both the onshore and offshore rates take a tumble. Investors are turning less bearish on the currency. Taking a look at the way it is coming online, the only major market in the red, a second day of losses after falling on monday by about. 7 . Hang seng snapping a threeday drop up about 6 for the month. Consider the rally we saw in shares for this month. We do have pacific leading gains up 1. 25 . China up in the green over 1 . I want to take a look at what is going on in the casino space, given the fact that macau casino regulators are looking to release gaming revenue for february between march 1 and march 3. The estimate for a tenure percent rise would be faster than january, when it rose for a sixth straight month thanks to highrollers. Galaxy up about. 7 before it releases earnings today. Inis the highest rated stock a six Bloomberg IntelligenceGaming Market index. Gm is the lowest related sjm is the lowest rated. We have properties also scheduled to release numbers today. Chinese property very much in focus given that we saw less cities in china report increases in home prices. Haidi thanks for that. Lets get the first world news with paul in sydney. The bank of takata has admitted guilt in court and will pay penalty is worth 1 billion despite victims attempting to delay the settlement. They are to pay a 25 million fine, 125 million fund to pay victims, and reimburse carmakers 850 million for recalls. The deal contains inaccurate assertions, which may be used to avoid paying victims. Clsa america has has shut down its u. S. Equity research operation. It dismissed 90 staff, more than half of its u. S. Headcount. Signs of strain showed last september when the Hong Kongbased clsa asked workers around the world to take as many as 15 days unpaid leave. It did the same three times last decade when facing tough conditions. Japans Industrial Production fell for the first time in six months in january, raising questions about the strength of the export driven growth in the second half of last year. Another company dropped. 8 last month while forecasting araiza. 4 . Production is seen rising 3. 5 in february but falling 5 in march. China is blaming raising incomes for worsening pollution. They say world people have burned nearly twice as much they say rural people have burned nearly twice as much coal as usual. They also say many people are not adequately connected to power grids and do not have access to subsidies to discourage use of coal. Global news 24 hours a day, powered by more than 2600 reporters and analysts in more than 120 countries. I am paul allen. This is bloomberg. Haidi thanks for that. President trump has rounded out his Economic Team with his commerce pick Winning Senate confirmation. A Global Economics and policy under Kathleen Hays is on this. What do we expect that wilbur ross will be able to bring . Kathleen you can be sure donald trump sees wilbur ross as a key player on his team, and unlike some other trump nominees, he pretty much sailed through the confirmation process, winning on a 7227 vote. Wilbur ross is worth about 2. 9 billion. The entire cabinet worth about 6 billion, so this is a man who has had a great deal of monetary success in his world as a vulture investor. Criticized by Elizabeth Warren of massachusetts, for example, for his ties to russia. He has investments in a cyprus bank that has ties to wealthy russians. She criticized him for that, but other democrats voted for him, putting him on trumps team. Now he has wilbur ross in place. It is being reported he will be moving quickly to trigger the required ninetyday period where he is putting everyone on notice. He is going to go. It head on nafta. Wilbur ross he is going to go full speed ahead on nafta. Wilbur ross has now been confirmed, and we will see where it goes from here. This is just 24 hours before Donald Trumps big speech to congress. The president is also addressing congress, as you say, the event markets are watching this week. He is expected to speak about security and economy. We know a little bit. He has promised some things. Kathleen he has. He has said a lot more today about his budget. He is calling it a Public Safety budget because he is boosting military spending to help fight terrorism, make americans safer. He is going to do this by some of the following steps boost defense spending by 54 billion, a 10 increase. To do that, he will cut Discretionary Spending on education, national parks, veterans. Hese are touchy issues, but is saying he has no plans to cut entitlements, Social Security and medicare. He is also saying it is important to move ahead quickly on health care so he can figure out how much it is going to cost and put together a tax plan. Haidi of course, something will need to offset the spending. Thanks a lot. A reminder, you can watch President Trumps speech in Congress Live right here on bloomberg tv. At special coverage begins 10 00 a. M. Hong kong time wednesday morning, 9 00 p. M. On the east coast. Policy metals has denied reports it is looking to invest in coal. Daniel spoke with the ceo at a metals and mining conference in florida. She asked him about fortescues plan for growth. Isthe biggest story for us about continuing to pay down our debt. To fund the expansion and growth of our business. It was the lowest cost and most flexible way to finance the business. Now as we are generating the cash flows, we are able to repay the debt. That is where most of the value is going to come from. In terms of a timeline, wind you see the end of that, months, years before you could start reinvesting again . That very much depends on the iron ore growth. As one of the lowestcost producer in the world, currently the lowest, we are generating strong cash flows and are able to do that through the market cycles. With higher iron ore price, we are able to repay the debt more quickly. Billion and we7 will continue focusing on this as our main strategy going forward. I would say at this rate, we will probably have another 1218 months before we get another 12 or 18 months before we get the debt to where we would like it to be. We dont have a specific target, but we are not concerned about cash flow. Not at all. As we go forward, we will continue to invest in the longterm sustainability of the iron ore business, make sure we have a pipeline of products to maintain our product mix. Longtermerating lowcost Strategic Options that mainly focused around early stage exploration. We are also looking to increase share of the return. Is the objective to be debt free at the end of the 12th 18 months . At the end of the 12 to 18 months . That will depend on the iron ore process, how quickly we can generate the cash. We will also look across the Balance Sheet to see how we can put the most flexible and most efficient capital structure in place. As we go forward, we are quite happy to be net cash. You made efforts to increase applied to a distributor to open access to a steel mill in china. We are wondering whether that is evidence that some of the larger mills are less willing to take fortescues products because they are looking for higher iron ore content . We have a Market Dynamic that is increasing the demand for higher iron ore. That is because of the very high cold price. The cutbacks in production we have seen to control the downstream pollution in beijing. Steel mill margins have been strong. The combination of those factors have led steel mills to push for higher productivity through paying the extra premium that they pay for the higher grade iron ores. We think that will return to a more normal market situation as we go forward. However, we are making very strong margins at these prices. We average a margin of 59 . Ceoi that was fortescues at the metals and mining conference in florida. One feature on the bloomberg is our interactive tv function. You can find it at tvgo. You will be able to watch us live in see previous interviews, diving into any of the securities or functions we talk about. You can become part of the conversation. Send us instant messages during the shows. This is for a survivors only subscribers only. Up next, the robots are coming. We discussed how humans are increasingly relying on machines and what it means for the future. We will hear from the president of universal robots from singapore. This is bloomberg. Haidi a quick check of the latest business headlines. General motors boosted incentives on its pickup trucks in february, intensifying the u. S. Auto marketsmost profitable and contested segment. Some dealers advertised as much as 25 as incentive spending grows to the highest since 2012. Some say the jump reflects the u. S. Market that is slowing after seven years of expansion. Companysports and media is said to have lost the right to broadcast Asian Football Confederation soccer games after defaulting. They also say it missed a payment on a 100 Million Contract in january and another last week. They declined to contact to comment as did a spokesman for its parent company. Shares of australian baby food maker remain in a trading halt after the resignation of its chairman at the next rainier a meeting on tuesday. Resignation of its chairman at the next ordinary meeting on tuesday. Last week, bellamy reported firsthalf net profit down from a year earlier. More and more businesses across asia are turning to robotics driving Transformation Across Industries from automotive to food and beverage. Our next guest says the collaboration between humans and machines is a key driver. Jurgen von hollen, the president of universal robots, joins me from singapore. Talk to me about these robots. When you think about robotics replacing human workers, you get a mental image in your head. But these are a more nuanced take on what a robot looks and functions as. Yes, i think Collaborative Robots are focused on having the man machine interface and looking at taking the value and strengths of a human and the strength of a robot and putting it together to go one plus one equals three. That is the idea behind it. Haidi it is quite fascinating because part of the political upheaval that we have seen across the world with the u. S. Election, developments under brexit and european elections, is the idea that so and so from a foreign country is taking our jobs. But if you look at the data, it is not Chinese Workers doing the manufacturing but it is robotics doing these jobs. Would you say that automation is really the key that maybe a lot of the Political Movement we are seeing isnt quite getting here . I think what is interesting is that robotics is a very large term in general. When one looks at the specifics, we see that the data shows that one of the key drivers for automation and the company is or producers is the fact they cannot get workers in. It is the resource shortage. At universal robots, we are trying to empower and enable all companies, not just the large but the medium and a small. Our vision is to bring robotics to all companies. What sectors and geographies do you see demand increasing in . It is expected to double by 2020. In fact, if we look at the current sectors, it is typically the automotive and Electronics Industries which have been the first adopters. That is because they basically have understood already. They have been using automation for some time. What is for me very encouraging is to see that with our Collaborative Robot that we are addressing all markets. That is kind of the innovation that is around our platform, our Technology Platform at universal robots. We are really trying to break free of all the complexities. We are trying to reduce the complexity, increase flexibility for the producers. Haidi i want to talk about the Chinese Market because i understand universal robots do sell into china as one of your many markets. There has been a takeup in manufacturing and industry in china towards automation. How do you find the idea of domestic competitors . Are they in sort of a catchup phase when it comes to the technology . I think if we look at automation and specifically robotics, we see the world divided into the traditional robot manufacturers and the emerging. Right now if i look at china and asia specifically, i think the level of interest and take up his fantastic. We forecast take up is fantastic. We forecast it will be 50 of the market by the year 2020. From our perspective, being there and also probably more than 50 of our spend is going into the asian market right now. Haidi china does have a government element, a regulatory element when it comes to its industry. There is the made in china 2025 plan. A lot of that is putting emphasis on providing support to chinese manufacturers. Are you concerned about a level of preferential treatment when it comes to made in China Robotics that is going to impact your business . To be fearful is not the right answer. The answer is we want to maintain technology leadership. We have a very different philosophy and vision for universal robots. We want to not only develop a product and what we want to do is create an ecosystem. The innovation we see today in our space is so large that we alone cannot fulfill that requirement. What we are looking for is a partnership. We are developing an ecosystem of partners and developers that are leveraging our platform to innovate again and again. At at you are looking least 13 per year growth for the takeup of industrial robots globally until at least 2019. At what point does the industry or the use of robotics reach some sort of maturation level . What does manufacturing look like and 5, 10, 15 years . I think that is like a crystal ball. If i look at the innovation and speed of innovation around this area, it is fantastic. It is fascinating to come to work every day and see a new case study about how people are using our robots. If i look at the overall Robotics Market that is growing by 19 yearoveryear, the collaborative space is going between 60 and 70 . We are at this opportunity. If you look at the combination of technology, whether it is vision systems, mechanical applications, the potential is by far much larger. I dont think i think it is very difficult to forecast more than 24 months in advance, but it is definitely explosive growth. Haidi you say that robotics is a key driver of Regional Economic growth and global Economic Growth. What do you say to policy, politicians, or the average worker who sees robotics as being a destroyer of human employment . Again, the collaborative space where we are playing is about the human element. We want to make robotics a tool for the operator on the production line. It is there to help out activity. To help productivity and improve the ergonomics, the health of the worker. I haveerience to date been traveling around the world, listening to endusers who have adopted or deployed our robots have, for the most part, it is about increasing productivity and not reducing headcount or taking out operators. Haidi quickly, what is your top market from asia . China,ently, it is followed by singapore, and then the rest. We are really excited about the asian market. In 2017, we will continue to invest heavily in the asian market. On,i thanks for the coming jurgen von hollen from universal robots in singapore. Up next, boldly going where no private citizen has gone before. Spacex announces a new mission to the moon, next on bloomberg. Haidi spacex is getting ready to blast into Space Tourism, targeting the moon. Its First Mission is planned for as early as next year. Earlier, dana hull gave some of the details. Announced that to private citizens have paid a significant deposit to orbit the moon on a flight late next year on fountain heavy on falcon heavy, a more powerful rocket. This is spacexs first foray into Space Tourism with paying clients. Why are they talking about the moon all of a sudden . Dana one is President Donald Trump is interested in doing Something Big in space. He has talked about wanting to send astronauts to the moon, so this might be a marketing effort to let him know we can do this for you. Has a contractx with nasa to fly astronauts to the International Space station. A lot of the technology is already in development. This is a way to keep the public excited and focused on spacex as they work on their longterm mars plan. It also gives them some revenue. It generates revenue. How much in revenue . How much are these people paying to fly to the moon . Dana spacex did not disclose the price, but analysts are speculating it could be 50 million a ticket. If you think about how much it currently costs the u. S. Astronaut to fly to the space station, it is in the millions of dollars. There are plenty of celebrities in hollywood and Silicon Valley who would love to be the first people to fly around the moon. Haidi that was dana hull speaking earlier to yvonne and betty on daybreak asia. Looking ahead, softbank is planning an 18 billion settlement. The latest from tokyo, plus a look at a positive day for asian markets. This is bloomberg. It is almost an 00 a. M. In hong kong. I am haidi lun, this is Bloomberg Markets asia. Haidi their big maker takata admits yelled in the billiondollar settlement. In thets guilt billiondollar settlement. It is the decision date for samsung. This man maybe indicted in the scandal that brought down the president. Must brighter session when it comes to the asian markets, getting a nice handover from wall street, the dow hitting the 12 stretch of winning streak. That is the best winning streak in 30 years, but last time we had this, we had a crash on the u. S. Market. Hopefully we are not setting up for that. People paid attention to the president s speech in a few hours time. There are more details on whether this trade in the u. S. And asia will be justified by details of policy. , we are seeing the dollaryen situation i had of the president ial speech. That is driving gains in the tokyo market. Details across the rest of the asian day. Sophie is here with us. Sophie take a look at the drivers. Energy shares in particular burning bright as well as industrial cleaning the climb, checking the rally on the rise in crude prices. We have had a lot of data out this tuesday for investors to digest. We also have tonight, gdp expected to slow in the fourth quarter. The dollaryen is shaping up today, we have the nikkei 225 in focus. Despite the yen gathering strength, we have japanese shares outperforming on the last trade of the day. Month. Output coming less than forecast for january. We have the july Research Institute say a drop in output is a reminder to be cautious of those who have been upbeat on japans economy, especially with car sales gathering speed. They lead out sports they lead exports. Sedan shot and missed,. Potentialg three listing risks. In shanghai, we have stocks swinging into the green up a third of a percent. The hang seng snapping three days of losses led by Consumer Discretionary stocks. We have property Stock Holding also on the up. China up over 1 . We have Galaxy Entertainment and sgm casino operators announcing today. Macaus consider regulators set to announce casino regulators set to announce growth in february. That is the focus as we wind up february. Ad looking at australia, up half a percent, led by Consumer Discretionary stocks, and persons gaining 30 today after we had word dubai dark group has bought a 30 stake in the company. Haidi. Haidi thank you for that. One stock we are watching, airbag maker takata has pleaded guilty to fraud related to that potentially lethal products linked to the deaths of at least 17 people around the world. The company has to pay fines and compensation with 1 billion. That is from the force of delay in the settlement with the Justice Department we have Ramy Inocencio on the story. What more do we know . Ramy it hangs on the guilty plea by takata, saying they falsified the data they give to automakers regarding these explosive airbags. You talked about that 1 billion settlement. Lets break that apart into the three constituent parts it is. 850 million of that goes to the carmakers themselves. That is to compensate them for the recalls they are making for all of those cars out there that have the faulty takata airbags. The victims and their families, they will get a smaller chunk of the 100 of the 1 billion. 125 million goes to them. They were trying to delay because they are trying, the lawyers are trying, to get more from the payout. Another 25 million is going to a criminal fine. The judge in this case from detroit actually said he could have ordered for larger payout on top of the 1 billion, but the structure of the corporation would probably be a fair outcome, but that would hurt the victims hurt by takata, and probably also put takata out of business. That would not help anyone there. There was uncertainty whether the judge would accept takatas plea in and of itself. The wording of that settlement, they werent happy with it, because it could shield takata from the automakers, the automakers saying they are victims themselves. On monday, a new lawsuit over a court in miami, and it defended plaintiffs are saying that the automakers themselves also thathat they were knew they were buying faulty airbags, toyota, honda, nissan, word and bmw. Ford and bmw. Takata is under probation for the next three years and monitored with compliance monitor. Haidi takata has said the settlement was the result of the Justice Department investigation, but there are a lot of issues on the horizon. Ramy this is the criminal side of things with the likes of the department of justice and the investigation there, but there are also lawsuits, dozens of them really, with consumers at the state level. That is just one aspect there. That also includes complaints of those exploding airbags, minus the shrapnel, the shrapnel that have killed so many people on the order of about 70 people have died, 100 xt injured. 17 people have died, 100 xt injured 160 injured. The u. S. Is trying to indict three current businessman currently living in japan. People were watching for any potential deal or sale of takata, this clears the biggest hurdle of the terms of the sale. Potential buyers that included key Safety Systems, owned by china, and auto live, in sweden. That is the just of what is happening, but there are resolve issues unresolved issues. Haidi thank you for the wrap up, Ramy Inocencio in hong kong. Lets get the first word news with paul in sydney. Paul President Trump will propose raising defense spending by 10 . Administration Officials Say the 54 billion boost would be offset by cuts to other agencies with the state and department hit the hardest. Trump has promised not to cut Social Security and medicare, which make up two thirds of the budget. The plan has to pastor Congress Pass through congress to be enacted. The senate has confirmed billionaire investor wilbur ross as commerce the rick perry commerce secretary. Richeste blue the nominee at 3 billion. He will leave the u. S. In trade negotiations. Japans production fell for the first time in january, raising questions of the export driven growth seen in the second half of last year. Output dropped 0. 8 from a month earlier and forecast had been for a rise of 0. 4 . They were looking for 3. 5 in february but falling 5 in march. A special security prosecutor may indict a samsung worker. They are being investigated under the handle that put him in detention and led to the impeachment of President Park geunhye. Support forto get the president that cemented his control of the group. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Haidi thank you for that, paul. Softbank is in talks to merge a satellite start up with intel. It could turn out to be an 18 billion deal. We go to the asian tech reporter on this. What do we know . Reporter good morning. Right, this is kind of a roundabout way of getting to it, but the man is an unabashed believer in singularity, the idea that technology will grow exponentially when we have advanced ai. Single. He is coming in 30 years. Secularity is coming in 30 years. One element you could say would be connectivity, and this is exactly what oneweb aims to do throughout the world. The bank softbank already has ownership of sprint, and now semiconductors all of that is bought anave investment in silicon their drug, and then you have an investment in saudi arabia that will take it to a higher gear. Haidi why would these two companies be working together now . Know, even the spacex has been bringing down the prices of getting things into orbit, satellite business is capital expensive. Oneweb estimates 2000 satellite in orbit to make the network operational. That is tremendously expensive. Intel already has combined terrestrial and Satellite Network a couple of delivering video in broadband. And broadband. They have complementry radio spectrums. It is a safe cost. Haidi this is something that very leveraged company would want in terms of getting capital infusion, but in terms of a deadline, how close are we to a potential deal . Pavel we are hearing that the deal would require softbank to acquire bonds of intel. Buying them up our would make would make them worth 18 million. Softbank wants to pay less than that with bond prices rising. That might jeopardize the deal. Haidi thank you for that. We will watch that and see if we get any new developments. Our tech reporter coming from tokyo. Still ahead this hour, chinese leaders preparing for their annual gathering, studying the Economic Growth targets for the year. We will talk about that. The dollar shrugged off earlier losses ahead of President Trumps first budget plan. An online fx trade up next. This is bloomberg. A quick check of the latest business flash headlines, shares in trouble commodities noble group are higher after they managed to avoid annual losses. 8. 7 million was the profit compared to the 1. 7 million loss in 2016. Noble is in talks with another group on a strategic stake. They had a punishing two years. Asset fails. Owned by citigroup, shot down the Equity Research operation. They cut more than 19 staff at the u. S. Had down. Signs showed in september, assets 1500 workers around the world, as many as 10 days unpaid leave. They did the same three times last year with the market conditions. Company thatonk asian soccer games after defaulting. They missed a payment on the 100 Million Contract in january and another last week. As adeclined to comment chinabased spokesman echoed the Asian Football Confederation is yet to comment. The dollar is nudging higher ahead of President Trumps address to congress. Our next guest is bullish on the dollar in the mediumterm. He is the currency trader and analyst at online fx, joining us from singapore. Great to have you. You were just saying to me earlier, you have never been so exhausted despite the markets going sideways. There is so much at so much information none really moving volatility. It is like information overload right now. We are looking at political headlines, said hyde lines, risk out of said headlines, risk out of europe. They diverge. Way, butou lead one the headline tells you something different. The range is narrow, but the amount of data is intense. Haidi is there anything at the moment at which he would be taking a longerterm structural bet, or is it better to stay agile for want of a better word . Stephen yeah, i think most of the streets staying nimble with positions, there is not a big overhang on any position. It is amplifying to a great degree uncertainty that is in the market shortterm. Over the mediumterm, the picture is a little bit clearer as we move into the fed moving to Interest Rate normalization. One of the central bankers that are hiking Interest Rates. I think from that, that should be good. U. S. Dollar should have some appeal, but if we throw in the it potential for the trump infrastructure to come back into the headlines along with tax reform to accelerate, that adds, actually adds further independence for the u. S. Dollar. So my view remains intact. Haidi i want to grab this function, wcrx go. It is looking at dollar spot year to date, the aussie dollar is the best performer we have had, followed by the yen and the kiwi dollar. Do you see this continue when it comes to aussie, because this is the commodity, and depending on where you are, it could pay off . What does that say for the currency . Stephen the rba is not dovish at all. I have viewed the recent governors being hawkish than anything else. As far as an Interest Rate drop or Interest Rate cut in the future, that is off the table. But this reflationary trade is starting to grip the markets again, pushing Commodity Prices higher. We have had a substantial run in Commodity Prices. Commodity will be louder than what Central Banks telephone Interest Rates, even if the u. S. Fed does move Interest Rates. I think the reflationary aspect of the trump trade, that will carry well for the aussie and some emerging market currencies that are exporting commodities also. Haidi where do you see aussieu. S. Ending the year . Stephen what stuck in a range, that one point they have to get isough the 77. 50, which presented like death valley the train seven and 77. 5. 00 and 77. 50. If we get past that, it is clear sailing up to 80, but that is achievable on the aussie dollar. Haidi i think the upside case, even if trump is a points, he could deliver a small amount of uncertainty, the markets would lap it up, but even if he disappoints on details, delivery when it comes to policy, the fundamentals are good in terms of the u. S. Asia is looking good with pmi. If you look at gold, is it a case people are parlaying for gold, because it is a favorite place among commodities and metals to be . Stephen i think we have to look at europe, actually adding to the gold fever we are seeing in the markets right now. Currency markets have not been reactive to the downside on the euro. There is under risk aversion starting to grip the markets. It is more a political play rather than structural. We see investors looking to hedge their bets against potential fallout on one side of the pond and the other. That is they are playing gold right now. Haidi what is a contrarian view portrayed that you should be getting into right now or trade that you should be getting into now . Stephen we have had a lot in the emerging markets and asia specifically with the threat of trade sanctions and higher u. S. Interest rates, but i am seeing the trade barrier, trade sanctions sort of temper. I view that as not a big, critical issue in the emerging markets at least in asia, but in view of the fed, it is not as aggressive as we had forecasted. Without reflationary would create hyper trade, but we are not seeing that. Hikes,e two or three that is within expectations. Emerging markets on an emerging differential can support that. Attractive, but moving back to the commodity point, some of the emerging markets, that export commodities, are in a better position than the ones that export manufacturing products. Provided the reflationary trade takes place, there will be pockets of interest in the emerging markets space primarily here in the asiapacific zone. Things are not looking as doom and gloom as they were at the beginning of the year. Haidi lets end on that positive note. Great to have you. Coming to us from singapore, and a lot of that hinges on the next 12 to 48 hours as we hear from the u. S. President. The investigation into the samsung air officially concludes today. We will talk about what happened next. This is bloomberg. Times up for the special prosecutor investigating the undue influence scandal in south korea. The deadline for the inquiry to end, this man has been following the story at length for us. What are we expecting . Othernd jay y. Lee and people have been indicted, and of such, the central prosecutor will make a final decision today on who is going to be indicted. They are the only ones that can be indicted by the special prosecution investigation that has been looking at dozens of people. These are the most highprofile ones among them. The special prosecutor told all five there, almost of the executives are likely to get indicted, and that could be today. Jay y. Lee, also the defective ahead of samsung since his father has been ailing for a couple of years after a heart attack. Allegations against him include bribery, embezzlement and perjury, being led by officers for questioning earlier this month. Investigators have been looking into allegations that samsung funneled tens of millions of dollars, 38 million, into foundations run by friends of the President Park geunhye. Samsung has denied it made the offers or bribes in exchange for favors. If a trial goes ahead, it could take as long as 18 months to get there and also to get a verdict. Lawmakers voted in december, they impeached the president , that is why they have an acting president , prime minister, he was the one who refused to extend the investigations for the special prosecutor. Haidi what about the president s impeachment . Where is that at . When do we expect the court to reach a verdict . Rosalind what is going on with the president , first there is a special prosecutor investigation. They have not been able to question her or search the president ial offices. They were denied access with search warrant. They have not been able to get anything much at all with the president regarding this. The second thing is this Constitutional Court, which is looking at whether they are going to approve the motion that lawmakers passed in december to impeach her. The president has been suspended for her president ial duties on the court. On marchcome to a head 13, because there are nine, and seven are needed to charge the case, to vote. On march 18 march 13, one of the judges is set to leave, and there is a bit of pressure here to get things done with the Constitutional Court decisions on that day. If they answer yes, they decide to approve the motion, then the president will in fact lose her role, and she will lose also [indiscernible] if it is no, she is returned to power in president but as a lame duck. Haidi all right. Coming up next, President Trump a proposal higher defense spending on his proposed budget, but where does it come from . It is 1 29 in sydney. I apologize im paul allen with first headlines. Takata has to play pay a 25 Million Dollar fine, and establish a fund to pay victims and reimburse carmakers 850 million for recalls. There is anyers say accurate assertion that may be used to avoid paying victims. Former president george w. Bush has criticized donald trump. He told nbc that the America Needs answers, and says he supports an immigration policy that is welcoming but upholds the law. He also insisted a free press is indispensable to democracy. The second ranking democrat in the u. S. Senate is calling for an independent commission and shall prosecutor to investigate russian interference in the election. Just back from a trip to ukraine , dick durbin said an Ongoing Investigation by the Senate Intelligence committee wasnt enough. Leaders that you wont take it seriously, Vladimir Putin tried to up and your election, how will you take it seriously if he decides to invade our country . Are you willing to step up at point . This is a test of our will about whether we want to protect our sovereignty when it comes to russian intervention. Reporter china is leaning rising incomes for worsening air pollution. And ministry of the environment have burnedeople nearly twice as much colas usual feeling a significant, rise in smog. Officials say even though living increased, many people are not adequately. Thats connected to power grids and dont have access to subsidies to discourage use of coal. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, im paul allen. This is bloomberg. Haidi this is Bloomberg Markets, asia. Im haidi lun lets take a look at the markets. We had been trading on the upside ahead of the key speech from the u. S. President to congress. Asian stocks set to close at february on a higher note with japanese shares leading the rise. Closing out 7 10 of a percent higher. Fluctuation in shanghai and hong kong. The hang seng briefly climbed above 25,000. That is a. Kong drags in hong aia in terms of the biggest drags in hong kong. I want to put this chart on the bloomberg. It shows the msci asiapacific index. It has not been able to break the love above the line. Bulls looking for a quick move percent the momentum of pickup in 9 march. Shares holding for the best rally among major markets. You can see it it on the kind pattern from inflows from the mainland and the stable yuan. Volatility in the yuan has fallen as the offshore as investors are less bearish. Haidi thank you. And battled commodities Trading Group has posted a fouryear profit, just narrowly escaping backtoback annual losses. The company came under yet another attack. Asia correspondent Haslinda Amin has been following these developments. Never a dull moment. Moment. never 80 a dull moment. This time they managed to squeeze out profit at 8. 7 million. Lots of 1. 7 billion in 2017. 25 , definitely an improvement although it just managed to get profit. They have had a punishing two years marked by losses, and asset sales during the commodities route. The upside is it managed to cut debt. The debt pile has dropped 4 billion at the end of last year, a drop of 1. 9 billion was also billion. Its also helping in talks with strategic talks. Whats essential for its strategy and its future is discipline on cost, a conservative capital structure, and robust liquidity. The management continues to pursue the same goal it laid out. Have they managed to reverse losses . Haslinda they reported a profit as well amounting to 17 million, versus losses of 100 million the year before. Rising prices of Agricultural Commodities giving it a boost. If you look at the bloomberg index, it was an average higher versus a year ago. Coffee,or palm oil, this is one of the Worlds Largest food traders. Its not for involvement in sub commodity food markets, but grain trading is becoming more important. The Company Became active in 2008 and its focus has been on the black sea region as well as africa. Haidi thank you. Shares in australian baby food maker bellamy remaining in a trading halt. They are dealing with the resignation of its chairman, now amongst other headlines coming through. Angus joins us. Speaking of never a dull moment, they have had quite a time of it recently. Reporter it has been another day of turmoil. This is the organic baby food maker that had a rough time of it in recent months. Today, the chairman resigned moments before a vote in melbourne on a proposal to asked the independent directors ous the independent directors. Minutes before, another independent director resigned. The shareholder vote was partially successful. To out of the three nominees will be replaced will replace 15 independent directors. Its not clear what the future holds. Haidi it has been quite a fall from grace. What went so wrong for this company . Reporter it was a market darling that listed in late 2014, and a little more than a year the market value had risen 15. It was worth more than one billion australian dollars at one point, largely in demand in china selling organic baby food, went green and clean australian foods are very popular. With excessft inventory which it cant itself and it has cut its profit and revenue forecasts. Therefore, stock prices are tumbling more than 60 in the last six months. Haidi what happens from here . Is the outlook any brighter than it has been over the last six months . Reporter if you look at the analyst ratings on bellamys, not a single stock has a buy rating. Chiefe an active executive cutting costs and trying to clear the inventory. Citigroup came out with a report yesterday that said it may take more than two years to clear all that inventory. Product that doesnt have a long shelf life. How much they can clear the inventory. Haidi can be tough times ahead. Thank you for that. Badly misjudging the china demand. Lets get back to the top story. President trump has rounded out his Economic Team. His senatee winning confirmation just moments ago. Ross,n investor wilbur what is he said to bring to the Trump Administration . Reporter a sincere desire to negotiate nafta. Lets put this in perspective. He was under a little bit of fire in his confirmation hearing. For example, democratic senator Elizabeth Warren criticized him of a cartoon stereotype of a wall street fatcat here and hes theh 2. 9 billion, wealthiest person by far on the cabinet. Others praised him for his business success, his business acumen, and think he will help elevate the position of commerce secretary. He was passed on a 7227 vote. This is unlike some of the other very contentious hearings that donald trump nominees went through as they tried together cabinet. Their cabinet. The next thing on the agenda is nafta. Now that he has wilbur ross in this position, trump can go ahead and give the 90 day notice to congress that this is what hes going to set out to do. With this nomination confirmed, the president has really rounded out his Economic Team, and maybe that will play into his speech to congress. Less than 24 hours from now. Haidi that is the main event. But ahead of that was how do these tidbits about what we can expect what we will what will we be expecting about him addressing . Reporter national security, economy, and what he talked about today married the two. He talked about Public Safety budget to boost military spending to keep the American People safer, as he likes to say. Heres what he plans to do. Boost defense spending by 54 billion. That is a 10 increase. To pay for it, you cut Discretionary Spending, things like education, taking care of the national parks, caring for veterans, giving them health care. Probably less contentious is , andamericans hold so dear that is no caps on entitlements and that is no caps on entitlements. No cuts on entitlements. That is medicare. Marketssomething the will be listening for very closely. Haidi you would think this is the first time he has spoken since taking to the white house. Why is this such a key market for remote moment for markets . Reporter we had this big movement in stocks after the election. Everyone seemed so sure that donald trump would hit it hard. Then there was questioning of the reflation trade. I think people are getting keyed up against his hear what he actually says, less hyperbole, more details. If he comes through on this front, he will be seen as potentially putting more risk on the rate hike in march being seriously on the table when the fed meets. That was also discussed today, when the dallas fed said they need to move sooner rather than later on rates. He said to be careful not to over read the markets or overreact. In other words, he seemed to be downplaying this notion that if the markets arent pricing at 100 , then the fed can move. Robert kaplan says if it is time to go, it is time to go. The odds now are up to 50 the hike comes in march. This is connecting always dots, the markets, donald trump, trade, this fiscal policy he started to lay out today. Haidi that jump without overnight in the fed futures, is pretty remarkable what happens when the president speaks. Speak, youally does can watch his speech to Congress Info here on bloomberg tv. Special coverage begins at 10 a. M. Hong kong time wednesday morning, that is 9 00 p. M. If you are watching on the east coast. Coming up, the top task. Gold toa may prioritize cut financial risk ahead of growth. This is bloomberg. Businessquick check of headlines. Morgan stanley has announced it will take a 70 million charge related to a tax reporting error. The news came in a 10k filing mistake affecting retail brokerage. Ericsson is betting on Cloud Technology to capture plans of the 1. 2 trillion market in the fifth Generation Mobile broadband devices. This will be crucial for erickson, who has suffered under fierce competition from chinese rivals. 5g is starting to happen. That doesnt mean it is commercially deployed yet, but what we are starting to see is petitioning 4g networks, 5g. Ting to evolve thats where we can get learning and experiences. Haidi softbank chief has said again computers will surpass human intelligence within three decades. He said he expects computer chips to have an iq equipment of 10,000 and the same period. Softbank recently bought a chipmaker, which says they will play a key role in artificial intelligence. With chinas lawmakers preparing for their annual session in beijing next weekend, they may again lower expectations for growth. Stephen engle is a veteran of these National Congress sessions. Oft is the significance targets this year . Stephen the npc has regularly been kind of maligned as a rubberstamp session of parliament, but it is important in the work report that will be delivered on sunday, is when he gives the promises and marching orders for the year and sends a list of targets. Many different targets, including the also muchmaligned gdp growth target. In the past, it was a hard and fast target, but they started to loosen the parameters. Last year it was defined as percent7 . They delivered in the middle of that, 6. 7 for the middle of the year. Bloomberg has surveyed a number of economists to find out given the stability receiving economy we see in the economy and the efforts to rein in credit growth, will they redefined that target . The majority, or the Median Survey results say they are likely changing the verbiage this year to about explain 5 . It sounds like im missing mincing words, but it would be significant. It would be a broader definition. It would give them more room to fudge on both sides. Keep in mind as well the same survey found that they are likely to lower the target as well for money supply. M2 could be as low as 11. 5 growth this year. Last year was 13 . If we could see the amount of leverage coming into the market, january was a record for aggregate financing. 5454 trillion renminbi, billion u. S. Dollars. Pointing out that bank assets now above 300 of gdp when it comes to china, a pretty dangerous level by any codification. As you say, this gdp target is muchmaligned and scorned by a lot of economists. Why even have it . Are there any considerations to just get rid of it or phase it out . Stephen there have been people who have suggested that. By finance it to the minister in one of my rare interviews on a panel a year ago. Words kind of the unspoken i should not have asked. I think there are some political meanings to it. It is a vestige from the old soviet economic model. They are trying to loosen the definitions a little bit, but they are very much stuck to these targets that will be read out over quite a long. Period of time on sunday. They have long targets, defense spending, even family members. They even had a target for the amount of kilometers of buried pipes in the nation last year. Tunedre very, very fine targets. Some say this gdp target is outdated because it causes some of the provinces to fudge the numbers to the upside. Reverse engineer, if you were to be really cynical about it. Baby steps. We will be looking keenly to any sort of policy announcements coming from that key annual session in beijing. Coming up next, last year saw the Virtual Realities big debut as a consumer category. This is bloomberg. Haidi this is Bloomberg Markets. Ive haidi lun. As it struggled to return to profit after taking it, and when it haidi taking a pummeling in mobile market, htc used the mobile conference to unveil an expanded ecosystem. Htcsne spoke with european Vice President and asked how Virtual Reality can be used to enhance learning. Wheredid a test in china we took a group of people and tested them on a topic, and they were equally good. We spread them into two different groups and told them more. Traditional learning and Virtual Reality learning. We took the test again. Those in Virtual Reality had 10 better results. Reporter when you say learning, what is going on . What am i seeing are watching when im being taught in Virtual Reality . One example can be a body in general, which you step into that body and you can understand different organs in the body. People in school can teach kids and tell them not really to smoke, you can show exactly what that can do to your body. So my lungs, how it looks like, how it will leave all over time evolve over time, for example. Hopefully that can teach kids to not smoke but, you can also tell them how the hard work. You can how the heart works. Thats one example that if you really want to teach how a body actually functions and works, you can step into their body and see all the different elements in an immersive way that you wouldnt be able to do in a normal context. Reporter vulture reality is already with gaming and education. Talkingy top and of other applications. We work with oxford university. How theyated actually teach nurses in africa. When babies are born, to prevent those babies from dying after being born, thats how we can bring the knowledge to them even though they are far away from a normal classroom in which we would do that. Reporter so they would have a Virtual Reality headset. That an mobile phones that can give them an indepth understanding of what they need to do. Reporter if they are just , doesg a mobile phone this expensive thing become a necessity . There are different grades of the experience. If you really want the best experience, you will obviously go with the htc behind us. There are also steps in between. That is what i want to explain that if you dont have the opportunity, you can still bring that experience, but not as immersive as the full one. Reporter how are sales and Virtual Reality . Leasing concerns about how potentially oculus, for example, formed. We are happy. What we have seen some are so far is a tremendous interest. We talk a little bit about gaming. Gaming is where we are starting, but we are seeing more and more areas outside of gaming. Parents all over the world can understand that their kids can learn an idea that his new, something that will open them. For your question, we are happy, we are pleased and we see more opportunities. Reporter what is the next thing . We just started. Theres still lots to do in gaming and education. It is still year number one. Theres a lot to do to reach out to more people. Thats what we are doing right now. Haidi just ahead on Bloomberg Markets, shery ahn will update us. We spent so much time fixating on trumps infrastructure plan, but the infrastructure needs here in asia are immense. Shery they are huge. It could top 22 trillion through 2030. We are talking about the Asian Development banks. Deputy chief economist talking to us about what asia needs to do next to keep growth momentum going. We will discuss all that on Bloomberg Markets asia. Announcer from our studios in new york city, this is charlie rose. This is one of those moments. You know what im talking about. Everyone has an opinion. Ive heard people say they have set rules. Are we going to talk about trump or not . Jon stewart retired but is back on the colbert show just about every night. It is blowing away Jimmy Fallons ratings. Who do we need back to guide us in this, what do you call it time . We lost Christopher Hitchens in 2011 to cancer. When he was alive, no president s, no monarch, politician, not even god was safe from his perfect cutting commentary, his historical