Rashaad the scandal that threatens the president has exposed to koreas cozy links with power. We are live in seoul. Investors counting down to crucial payroll numbers which could trigger a rate hike. Given a the u. K. Is brexit warning, it could take 15 years to clinch a trade deal with europe. The Trump Administration is told china is not to blame for years of lost american job. Clearly we are watching very closely those developments in deou seoul. Remember this protest we had that led to calls for the president to be impeached. Haidi we are seeing stocks around the region holding up pretty well. Goldman sachs saying the korean won has been the bestperforming currency up 5. 5 year to date but given that we have busy domestic if the Impeachment Vote is upheld and that means an election within xp days time, further uncertainty. Economic issues and Political Tensions as well with the north. Aheadof challenges regardless of what that outcome is today. Rashaad absolutely. Canill be learning if she keep her job and her immunity from prosecution area they are set to rule on the legality of park geunhyes impeachment in this undue influence scandal which has embroiled some high profile Business Leaders as well. Sherry, what is the betting looking like . Park is being accused of colluding with a confidant, abusing her power among other charges. The anger on the ground has been huge. You can hear on my right be chanting from protesters out in force. They have been out in the streets four days. For days. They are protesting for and against this impeachment motion being upheld. As heidi was mentioning, markets have been pretty resilient. Growingthe the kospi 4 in dollar terms. Because of this anger and Political Tension as well as geoPolitical Tension, Consumer Confidence has been hit. Take a listen to what one of my guest told me about what the markets will do, especially with Consumer Confidence getting hit. As a weak link, the Consumer Confidence was pretty weak but with the ruling today, that could dart to improve because it removes a lot of the uncertainty from the economy. The kospi target is a 2250 which is higher from where we are at right now. The thing is, what about protests today . Pat toomey expected the Constitution Court to proceed today . Shery just an hour away, we are it acting a lengthy proceeding. Remember, the last time we had this situation was with former president s impeachment case. We are expecting this time around to be a bit longer ranging from 4050 minutes given the complexity of the case. Out of eight judges, six have to uphold the National Assembly motion to impeach the president to be ousted. If even three of them reject the motion, then she will keep her job. If she is out that means an election will be held within 60 hyung yoing president announcesow the day of the election. If she is not ousted she will go back to the president ial blue house. Betty if the president is ousted, who could become the next president of korea . Kohls showing the favorite at about 30 . We can mean a primary or a runoff if they dont get the majority. We do have a couple of names being thrown around. Party,se the ruling korea, they liberty are putting their hopes on the acting president and prime minister. What is key right now is where politicians will take the reform Going Forward after the election. The popular sentiment when it comes to polling for him is very strong there. Are expected to rule at 11 a. M. Local time. You can also turn to your bloomberg for more on this. You can see our analysis from experts and editors. Lets get the first word from city in sydney. Jpmorgan ceo jamie diamond has said that donald trump has lit a fire under can ever confidence. He says he expects at least some Mp Administration policies into been enacted. Dimon has been supportive of the trump regulation. It seems he has woken up the animal spirits. One ceo came out and said we havent heard such a probusiness president since the founding fathers. Business confidence and Consumer Confidence all sky rocketed because it is a growth agenda. Some of the nation central bankers say it may be easing it interest cycle. Bank indonesia was australias biggest rate reducer last year cutting the benchmark six times 24 and three quarters of a percent. Four and three quarters of a percent. Officials at the bank of japan may be concerned about premature speculation on Interest Rate hikes. Officials are considering giving clear guidance on future rate movements wants inflation starts picking up. The boj expects the inflation gauge to be around 1 thanks to Higher Oil Prices and a weak yen. Global news 24 hours a day powered by over 120 to this is bloomberg. Less than 25 minutes to go before we get the start of the trading day. Singapore, taiwan, they came online just a short while ago. David, lets see how things are going. David the reason why we are seeing the regional benchmark high is being carried higher by japan but you look at this color, we are at a tight bridge ahead of the jobs report. Japan, youre getting a lot of volume. That comes down to dollaryen being back about 115. Lets look at the selloff we are seeing across the bond market. Yields are way up. The 10 year in australia closing in on 3 . Have a look at this chart of tenyear treasury. It closes all the way back to the early 60s yet we are on track for the largest street since the mortgage scandal in the early 70s. The big question for money managers, as more people shift out of bonds, where does this money go . We note is going to go into equity, to which part of the equity market . About 115. Back 115 point 07. How much higher can we go. There we go. Let me just expand this for you. This commentary, i have brought the charts appear and what it shows you is the spot rate of the Exchange Rate is above that midpoint this gap between a mednax at the 40 day. The spot you want to watch is 5,60 or above that. If we break above that level do expect to see more upside. It is the first time we are seeing that going back to midjanuary. Session wide, we were as high 15. 20ish. Very cool chart. Rashaad thank you for that, david. The truthd, approaches for President Park in seoul. Up next hour exclusive interview with baidu ceo will be live in beijing. This is bloomberg. Haidi this is Bloomberg Markets asia and i am haidi lun in cindy sydney. Rashaad our next guest is the. Ounder of tech giant baidu lets get over to the Chinese Capital where china correspondent Tom Mackenzie is. Much, i amyou very glad to say i am joined by robin li the chief executive and. Under of baidu he was he was just talking about the proposal you set forth and how s crackdown on immigration provides an opportunity for Tech Companies like yours in china. How do you feel youre going to take it vantage . Advantage . There is a perception that Trump Administration is antiimmigrant were as china if you have listened to president xi jinpings speech, you get a fierce and that china is more optimistic about the Global Talent and is willing to take on the responsibility as a large and fastgrowing economy. In fact i think a high growth rate will generate a lot of opportunity and people nationally naturally want to go to a market where there are more opportunities than elsewhere. In chinese we generally say people naturally go upward and water naturally was down. Flows down. In the past, china was not a country known for embracing immigrants or Global Talent and there are a lot of policies we need to improve and we need to also make it more clear and more people know that china welcomes all kinds of talent from all nationalities, from all different cultures and backgrounds. What steps will you be taking as the head of baidu to attract that talent . I looked on your website, you had at least a dozen post available trying to recruit engineers in the u. S. Are going to have a Research Center in silicon valley. Are attracting talent over here. In china we also have more than 10,000 engineers. I think great people attract greater people so we already have a great pool, that is another thing. China is a large market. I think size ai matters and when you have such a large size and try out things. You encounter new problems before anyone else encounters them. Ideas,eople always have they have lots of ideas and we have a platform that they can try it on. I generally say if you have an idea, we take 1 of our traffic and try it out. What is 1 to me . Does 1 mean . It is everyone who speaks the same language and follows the same all. About concerned are you the potential for rising trade tensions between the u. S. And china and implications for countries like you that operate in both countries . I think trade war is bad for everyone. It is clear. I think people or politicians are just using that as a bargaining chip to get more. We all understand that this cannot occur. Of baidu, we have Research Facilities in the u. S. , we hire people and we pay taxes but we dont have a lot of revenue here. It is something that happens we are not the ones who get hurt the most. There are great Communication Channels between the u. S. And china both in the private sector and the public sector. The possibility of a landing is isd a misunderstanding kind of low. It is just for both sides to find the right balance. It is a game of dealmaking. Tom this week you put forward proposals to legislatures in beijing to help control the traffic problems we have here in beijing. How were those proposals received . It was received very well. I think people, especially during the two sessions, they care a lot about ordinary peoples lives and the proposals i take are related to people daily lives. The traffic light thing, using Artificial Intelligence to thely improve reasonableness of how long you have to wait, we have done experimenting around our campus and it worked very well. Will be implemented and the traffic jam problem will be eased significantly. Our other proposal is about using face recognition to help find missing children. Child wasif one listed at three years old, even after five years when he or she goes to school and take a picture, we are able to find the right match very accurately. These sort of things can benefit ordinary people on a daily basis. I can think of thousands of examples like this. Ai is an expensive venture, how much are you spending on r in the next 12 months . Our r d will go up. We spend 50 of our total revenue and r d. All of this went into Artificial Intelligence related. The era of mobile internet has ended and the era of Artificial Intelligence has arrived. No one has realized that. Were going to aggressively get benefit ais going to lot of people and transform industry after industry. Tom what are you learning from your r d sensors in terms of applications . There are lots of applications that can impact peoples daily life. The most obvious one is search. Ai transformed search first. You can take a picture to find out what kind of plant is that. You could not do that five years ago. That is because of ai. This can be extended to many other areas. Campusgo to the baidu you go through a security. It needo not see to use their badge, they can just walk through and our camera will recognize of their faith and walk in. It can be applied to many other scenarios. The camera will recognize of their face and they can walk in. There are lots of hassles today but it is no longer needed when you have ai technology. Wherever you go, when your id needs to be checked, it will be checked automatic using your face. You do not need to carry a badge around. You do not need to remember a lot of things. It is going to be natural for people. Tom you have invested in ai companies, are you expecting anymore bold on acquisitions . Our pace of acquisitions will be roughly the same. There are already thats always opportunities and great entrepreneurs that do innovation. I dont have a concrete goal or target of where to go. Tom would you ever consider building your own car from scratch . I think we are still focusing on making the Driverless Car Technology work and we will worry about the model later. More than likely we will be partnering with a lot of automakers. They have their interest and we have our interest. The goal is to make it happen and make it a reality and let people enjoy the benefits of driverless cars. We will do whatever it takes to achieve that goal. I think revenue and profit goes next. We are not after profit for this time. M there are reports that you would be investing in hundred Million Dollars in electric vehicle making here in china, can you confirm those reports . I cannot, rumors are rumors. Om you have consolidated your car unit, would it ever be part of the plan to have it on the shelf to spin off the auto unit at some point . That is certainly a possibility. I think it one point when we andk it is promising enough it has reached a stage independently where we are introducing more Strategic Investors if it made sense, we would do that. It is early because we are still august on making the technology. We want to do that first. You have any more details on the time frame. We have heard about mass production of powerless cars powered by baidu by 2020, 2021. Can you give us more ideas on the time frame . 2021 is a good guess of when mass production will come to reality. I think we are still on track. Lots ofe are not Technology Problems we need to work out to but we are quite confident they will, as planned. I the chiefs robin l executive founder of baidu and a cpcc member. He is talking about how the end of the mobile era has come to an end and it is all about artificial and elgin. Artificial intelligence. Haidi covering a lot of ground, forng a trade is bad everyone. If you miss that interview or want to go with it again, you can check it out on the bloomberg with that interactive tv function. You can watch us live or see previous interviews. Also become part of the conversation and send us and sent messages during our show. This is for bloomberg subscribers only. 10 29 a. M. In seoul and 9 29 a. M. In hong kong. We are waiting for that report to come through at the top of the hour. A judge on the fate of suspended President Park geunhye, find out if she is going to be booted out of office later today. Im rishaad coming at you from Bloomberg Asia headquarters. Haidi that is the key events were watching today but the markets are holding up nicely ahead of payrolls coming from the u. S. Rashaad arguably the most important data point of the month. Lets gets the start of the trading day right here in hong kong and shanghai. David a pretty decent session but it is a foregone conclusion that it will be 2000 jobs. It brings you to the reflation trade which is coming off. Led by the nikkei 225 up 1. 2 . A selloff on the bond market. Yields are on the way up. On the 10 year yields, 2. 97 . That said, the open in hong kong of a fifth of 1 . 23,000 but when we look at areghai, the pboc, we getting a fixing of 691 on the on sure rate. 10 45, we have the pboc governor speaking out of beijing. Looking out for you live, that is our priority. Plany comment on what they as far as are they planning any more steps or what they are thinking as far as of the currency is concerned. Of. 07getting a rebound percent. Markets, it isx a mixed picture. You are seeing a lot of positioning ahead of later jobs report. Most currencies are under pressure. Dollaryen back above 115. Before we go, let me point out one stock we are following. Ik, look the shares of at that drop. We are off by 42 hong kongs ends, they comes to down to the fact that the company said enough is enough. We are not going to sell the company or provide further financial support. Rashaad thank you for that. Lets get over to sydney for the first word headlines. President parks will learn in a half hour if she can keep her job and her immunity. The Constitutional Court is to roll on the legality of her impeachment in the undue influence scandal that has triggered street protests and embroiled some high profile Business Leaders. An election must be held within 60 days. The u. K. Has been warned of the postbrexit trade deal with the European Union could take 15 years to complete. The foreign minister said a solution could be handed out but it could be years away london wants trade talks to start within the twoyear time span that eu Officials Say that will only happen when the status of eu nationals in the u. K. Are settled. That is the timetable we are looking to and that is the timetable the European Union is looking too. Can achieve ac we good and optimistic freetrade deal with the European Union. It is not just about what is in the u. K. Interest, it is also about what is in the interest for the European Union. Draft statement from next week to g20s finance minister meetings just the u. S. , china and other members may scale back measures to fight climate change. The document cites scarce resources and seeds the campaign to the private actor. Last july finance ministers called on their governments to mobilize at the Paris Agreement by 1 billion a year. Many of the Trump Administration claims about china are highly dubious. He said there is little evidence it is responsible for lost u. S. Jobs while beijing is burning through reserves to prop up the yuan rather than keeping it unofficially week. He added that targeting china will not help u. S. Growth. Global news powered 24 hours a day by 120 countries and journalists. Rashaad the governor of the the is set to address National Peoples congress and we will be looking for any clues when it comes to military policy. What are you looking for him to say or to clarify . He is talking about financial reform or development and we will be looking for clues there. The policy stance is the big one we want to look at. Looking forg we are is some sort of clarity on just how Monetary Policy is conducted these days. The benchmark rate of one year lending has been on hold for more than a year. Does that mean the policy is on hold . That is not necessarily true, there been changes to things like the sevenday repo rate, is this how Monetary Policy is conducted in china right now . Clarity on that would be great. Haidi the pboc has a challenge on its hands, it is trying to rein in leverage but keep the economy growing. Something has to give here, right . It is quite a circle and they have got a square. They need the credit numbness to come back, they need to reign in some of the Financial Risks that have Global Investors on edge and they also have this enforced target of growth from 6. 5 or higher if possible. That requires a lot of credit. Managing tothe pboc be not too hot, not too cold, just right. A tough task to do in an economy that already has a high level of leverage. Haidi we will keep looking ahead to that from the pboc. Thank you for giving a bit of a preview to what investors will be looking for clues on. Has delivered no big surprises at the European Central bank meeting. That was widely expected and now traders are waiting to see if the job support report is going to come in sufficiently to support that rate hike. We have the policy editor Kathleen Hays with more. Kathleen, no change from mario draghi so why did we see that bounce in the euro . Mario was so still delivering a message that was somewhat hawkish and very ish and was so hawk somewhat dovish at the same time. Sides for thedown economy especially because of global practices. The ecb will continue quantitative easing until at least the end of 2017. No move in rates until the quantitative easing is starting to end. Mario draghi in the press conference said we changed our latest statement and report because it there was such a sense of urgency about the economy. Very important that mario draghi said he is not convinced that this headline rise in asian in inflation in the euro area. You will see two lines, the blue line is headline laois and it is just over 2 so it is just above the ecb target. , out fore line drips food and energy, it is core inflation and it is at 0. 9 . Mario draghi look at that answer is what he said. Mainly aeflected strong increase in annual energy, in unprocessed food price inflation. With no signs yet of a convincing out for trends and underlying inflation. Even though the ecb raised its inflation forecast a little bit for this year, in 2019 is just below 2 . Unemployment about not producing higher wages. He is not thinking this inflation rise in headlines is going to be sustained. Rashaad on to the u. S. Jobs report, that allimportant payroll report. This one is going to be fairly irrelevant, it looks like a rate hike is almost 100 certain next week . It is hard to imagine what could change after the cacophony of said speaker said that as long as the economy is moving towards higher employment and inflation, a rate hike will be appropriate next week or would. Lets see what is forecast for tomorrow. Nonfarm payrolls supposed to rise by 200,000, down from 227,000 in january. Kind of in line with the previous month and it is above the six month moving average at hundred 83,000. 183,000. Unemployment falling from four point 7 . Hike is so priced and, in may be more about what the fed sees in the economy, what janet described in her press conference on wednesday and it will be renewed forecast for gdp unemployment, inflation and each official is going to have their dot about how many rate hikes that means for 2017. It was kind of spread on either side of that. What is the consensus rises . What if other people see a rate hike in 2017 . That could cause some ways if we see more hawkish. Rashaad thank you for that. Kathleen hays in new york. A next, will this political storm in south korea lead to a overhaul of corporate government. Rashaad your back with Bloomberg Markets asia. A courtinutes away from ruling on the impeachment of korean president part. Lets get a reminder of how we got to this point. Made threenhye public apologies for her actions but they were enough to quell the public anger that saw hundreds of thousands of people protesting in the country week after week. The anger fueled by allegations that parks close friend used their connection to extract money from major businesses. The scandal and world of the nine of koreas conglomerates who denied tens of millions of dollars were made to her in exchange for political favors. Part has maintained she did nothing for personal gain. On december 9, outside the National Assembly, protesters rallied again. Lawmakers and voted to impeach the president. Parked was immediately suspended from all official duties while the Constitutional Court ruled on whether the decision was illegal. Was legal. Rashaad lets join our investment chief executive, briefly he is considered one of the countries first investors. Thank you for joining us. Which way is the court going to go and what message will it be sending . I think political corruption is no longer welcome by Korean People in the korean economy. Critical forill be the future of korea. Rashaad that is one message that should go out but this is on top of samsung, is this perhaps a concerted, deliberate and actual seachange when it comes to the way that south korea is going to be governed in the future . I cannot confirm at this southin time the korean government will have different policies after the impeachment or the election this coming december. You have been pretty critical about this story shows a clear need for the system to be reformed. Im wondering what does a different system look like . What changes would you propose . The korean system over the past six years was driven by the same system. It is hard to reform in a short time. Thanks to the latest political turmoil, people realize the system is no longer working for the system the future of develop korea. The new leadership that will come in after may or december will change this. It will take time. Court that will be in effect. Investors will be corporate governors of companies. Haidi regardless of the outcome is an argument that whoever takes the reins next in the leadership is facing quite a fermentable set of challenges. There are already global trade concerns, we have the Corporate Governance issues in korea, the domestic political instability and the geopolitical issues and measures coming out of china. Areencouraged or bullish you when it comes to korean assets right now. I know you have been there for over two decades. With that perspective, how do you feel about that market. Korea is one of the most undervalued market among its peers, especially because of the corporate government. Who takes the government, i think there will it cannot get worse going for. Companies like samsung will have to enhance their show of consideration Going Forward. I think the korean market will be volatile for the time being but will restore its efficiency going for it. How would you actually reform board structures, wouldate governance, this change for instance nonexecutive board, making them more activist to have greater scrutiny to what is going on at these companies. Im not an activist. People call me activist but all activist do not say they are activist. There are deeply undervalued stocks because of Corporate Governance and we gradually change their structure and also showed them consideration. Change weest will enforce Korean Companies to improve. It will take time. It may be the only way to go, i guess. Rashaad thank you so much for joining us. Bruce from zebra investments. Just talking about the turn of the tables in light of this trial and this hearing we have if the president can stay in office or she will be booted out and lose her immunity. Of next, going mobile in the and mark. In myanmar. Rashaad welcome back to Bloomberg Markets asia. Haidi im in sydney. Phone has of mobile shocked those who enter the country just the three years ago. He told hovland amen that he is looking at new opportunities within mobile finance. I think everyone in the industry in myanmar is uber excited. Super excited. We went in three years from is hardlyyanmar that connected to one that is fully connected. Weve seen it is above 90 now. Of 53lion of a population million is now connected to mobile services and that is what is really driving it on our side. The appetite for data. Correspondent data is the future, give us the sense of a demand of data . Data is huge, it is here today. With our Customer Base that is 90 million, we see that 65 of our customers are active data users on a daily basis and the data users have a smartphone as well. They carry a smart phone, they are connected and they are bringing this everywhere else in the world. An average customer here in downtown will be using 3. 5 gigabytes of data a month, you compare that and it is similar to anywhere else in the world. We go to oslo in norway, you would think 2. 5 gigabytes, they have the same Global Consumption whether they are in yangon or a developed country. Correspondent whats will drop your growth coming forward and what growth can we anticipate . We are focusing on two things, one that we need to keep our eyes building the last leg of our rollout. We have an obligation to the government to help them reach a 95 buildup. It is challenging where there are geographical challenges and ethic and political challenges. We need to have our eyes on that, working with industry and the government to get that right. The second part is to make sure we are able to tap into the data growth and we can individualize our services so they are relevant to the customer Going Forward in a Digital Economy and at the same time to monetize at the data growth. Correspondent recently you powered up to provide mobilebased Financial Services, what you hope to get out of it . We tied up with jb and fmi and we traded ways money. Wave money. We launched our service the later part of last year. We hope to reach out to and an unbanked population. Here in myanmar, less than 7 have access to a bank. There is an opportunity to take place also in the mobile and financial sector. Already today we have launched services that are remittance services, payment of salaries as a reimbursement of cash which they can use instead of physically giving good. You give the reimbursement of cash through the phone and digital money. This is something that we want to carry with the growth. It is the big thing being part of the mobile Financial Services. Rashaad telenor ceo eric tillman speaking to our on correspondent. Own correspondent. Because kospi moving to the we do a weight this verdict from the impeachment trial of park geunhye, the suspended south korean president. Up, that decision on President Parks. Lets start with breaking news out of seoul, korea. These are pictures from the Constitutional Court, where judges are ruling on the impeachment of the President Park geunhye. That Impeachment Vote went through in december. We need six affirmative votes out of 84 that impeachment to be upheld, triggering an election within 16 days. They are waiting for the court ruling from the Constitutional Court. Ofs will be the culmination a turbulent time in south ensnaring some, of the countrys highest ranking political and corporate leaders. Rishaad we were talking to bruce lee, regarded as an activist investor. Calm before this ruling. The won little changed after a brief decline. Traders adopting caution ahead of this decision. Confirmation would the supportive of the won and easing Political Uncertainty. If the motion is denied, we could see the won fall back on see thist, and indeed dollar positive momentum continue. Ins get it to shery ahn seoul, korea for this ruling. Calm inou mentioned the the markets. That is not the mood on the ground in south korea. We have protesters surrounding the Constitutional Court. The police had to barricade this whole area because it is becoming tense. Protesters for and against the impeachment of President Park geunhye, the impeachment motion and her ouster. Flags are being waved around as protesters stay on the streets. We are hearing from one protester saying that President Park geunhye should not be increased come should not be heoved from office, that Legal Proceedings should stop. So definitely the mood is very being and President Park accused of many things, including accepting bribery, colluding with a close friend of hers, choi soonsil. Also, abusing her power among other charges. The reason this is so important for her, this ruling coming up, is the fact that not only doesnt she lose power if the motion is upheld, but she loses her immunity, which means she could be charged and arrested. Haidi how does this all work procedurally . Rishaad when can we expect a verdict . What is the courts process, and how does that look . Shery we have a feeling right , it willysts tell us take some time. We had a similar case in 2004 with the former south korean president. It took about 2030 minutes. People on the ground are saying this case is much more complicated, so it could take time. That thereed earlier are eight judges. You need at least six judges ruling in favor of this impeachment motion for President Park geunhye to be ousted. If only three judges vote against the motion, that means President Park stays in power and goes back to the president ial blue house to do her job, then you would see her having a normal election later in the year in december. She would keep her position until february. Willourt proceedings include the reading of the votes and how each vote, how each judge voted, and the reasons behind that, so that could take some time. Courtse constitutional acting president justice will read out the final verdict, and of course that will change the future of not only President Park geunhye, but south korea. Are waiting for that decision to come up to you can see the justices making that delivery. We have one line that has come out, the Court Justices saying they did their best to make the decision, the ruling fair and fast. Of course, we are waiting essentially to see if we have the six out of the eight judges voting to uphold the motion. Doese meantime, if this happen, we have the election triggered within 60 days. Who is up to become the next leader of korea . Shery right now, the front leader ofms to be the the main Opposition Democratic Party. A gallup poll put his support level at more than 30 this morning. When it is that even comes to the Democratic Party, they have to choose their own candidate, so that could lead not only to a primary, but even a runoff if no one gets a majority there. The second favorite in south area is the governor of Southern Province. He has about 15 to 20 support. When it comes to President Park geunhyes ruling party, it has been rebranded as liberty korea following the impeachment, they are in disarray, pinning their hopes on the acting prime minister. It does not matter who the president becomes. The fact is that south korea faces a lot of challenges. On the economic front, the b bok saying that south koreas growth will be the slowest since 2012, 2. 5 . They will have to deal with all these corporate scandals, including what will happen to jay y. Lee. He is on trial for allegations of bribery, of course a wider part of this whole political scandal, colluding with President Park geunhyes close friend, choi soonsil. So all those allegations corporate reform, they will be key for south korea, improving Corporate Governance. Tensionsave regional after north koreas Ballistic Missile tests this week. We also had the antimissile deployedystem being here in south korea along with the united states. That has caused tensions with , seeing it as a threat to its own security, not to mention that south korea faces potential protectionist trends around the world him and south korea so dependent on exports, it could get hit. We have the south korean Constitutional Court reading out that judgment. We still dont have the ruling just yet, but one more line dropping saying the south korean court hoping this ruling will help to end division and lead to unity. Is this a question of how much the issue of popular protest has weighed into this decision . You want to say they should not take it into a cap, but they have been taking this into account given that we have seen this ruling play out in the streets. The streets have been run over by protesters all across soul,ntral districts of s korea. I will be taken into account. South koreas court hoping the ruling ins the division that has then seen in the country. And analyst earlier in the mening from nomura telling that it does not matter what happens to the ruling. Uncertainty will be over with, so that will be a positive in itself. Rishaad thank you very much indeed. Your bloomberg terminal has more on this. V foro tli analysis from editors, and have your terminal as we wait to determine whether President Park geunhye will be removed from office. What about Market Reaction . Lets find out. Juliette we have seen the won weekend, down. 1 . 2 ,ospi is higher, up cautious trade. Cautious trade across the region too. The key is the fridays payroll number from the u. S. , expected to be strong, but there is always at risk that there could be a number of that shocks the market, then of course that could play into the march rate hike decision, which is at this stage factored in as 100 . You are seeing the yen weakened, past 115 to the dollar, strong support from japans equity market in the morning session, up by 1. 3 . The other big focus is in the bond market, particularly this u. S. 10 year note. You have seen treasury yields climbing for the ninth consecutive session am a 2. 6 1 on the u. S. 10 year note. If they climb for another session, this is from Garfield Reynolds on the bloomberg. It says that would be the nixon wasretch since embroiled in the watergate scandal. You are seeing yields on the australian 10 year note climbing ,lose to that 3 level, 2. 97 up or by another four basis points. It has been a strong run coming through come us of the global bond rout continuing. Down at the moment. We have also been focusing on the commodities space. Gold still tracking lower, still below 1200 announce, and a Little Movement to the downside and that oil price as well, so a lot for investors to be watching today, but the key focus is that u. S. Jobs report coming through later tonight. Right. Thats thank you. Juliette saly on the markets today. Lets get first word news with paul allen here in sydney. Paul jamie dimon says President Trump has lit a fire under u. S. Business and Consumer Confidence. Paris, he says he expects some of the Trump Administrations proposals to be enacted. Jamie dimon has been a vocal supporter of the president s business agenda, saying the u. S. Has a Bright Future if trump overhauls taxes and regulations and spends more on infrastructure. It seems like he has woken the animal spirits. Of onethe ceos comes out of those meetings and says we have not had such a probusiness president since the founding fathers. Im not sure that is true, but Business Confidence has skyrocketed. It is a growth agenda. J. P. Morgan staff dont have to worry about annual performance reviews. They will happen every day. The company is introducing a mobile tool that allows for instant critiques. J. P. Morgan says the program is aimed at fostering development of staff. The bank said it found many employees crave constant feedback. Indonesias central bank has signaled that may be ending its easing cycle as the Deputy Governor says Interest Rates are enough to boost growth. Bank of indecent indonesia was the biggest rate reducer last year, cutting six times. Since then, the rupiah has weekend and the Central Bank Says inflation may accelerate this year to more than 4 . Some officials at the bank of japan may be concerned about premature speculation on Interest Rate hikes. Sources say officials are considering giving clear guidance on future rate movements once inflation starts picking up. The boj expects the inflation gauge to be about 1 this year thanks to Higher Oil Prices and a weak yen. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. I am paul allen. Haidi still ahead, we hear on the finalkely to be comments to the media as the governor of the pboc, coming up and over half an hour. Rishaad next, baidu ceo on the advantages of Artificial Intelligence. Robin lee and how he is seeing the world changing. Rishaad you are back with Bloomberg Markets asia. I am Rishaad Salamat in hong kong. Haidi i am haidi lun in sydney. Thailanddent of the Stock Exchange said myanmar must change its rules and order to open up markets. He says myanmar can learn from thailands experience. The market has to open for everyone. It means that foreigners should be able to buy and sell in the Stock Exchange, and also that the Companies Listed have to open up because no foreigners cant own the companies. Rishaad bhp billiton to carry out maintenance at its copper mine as the pay strike continues. Management planning to restart Construction Projects and you contract workers for backup work. It reduces the time it would whento resume production the strike ends. Friday is the 30th day of action at the mind. For now, bhp can negotiate directly with the workers and not through the union. Bp group has named a new chairman, starting on november 1. He guided rio tinto for eight years and help to engineer a sale for 104 billion. Is seeking to rebound from a tough year, including an accounting scandal. Shares are down almost 13 from a year ago. Lets see if chinas largest internet Search Engine says the country is more open to Global Talent the never. In a bloomberg exclusive, baidus robin the talked about how the Trump Administration immigration crackdown might benefit Tech Companies in china. I think right now at least there is a perception that the Trump Administration is antiimmigrant, where as for china come if you have listened to president xi jinpings speech, you get a clear sense that china is more open than ever, especially for Global Talent, and china is willing to take on the responsibility has a large andomy, a fastgrowing economy. In fact, i think a high growth rate will automatically generate a lot of opportunities, and thele naturally want to go market where there are more opportunities than elsewhere. In chinese we say people go upward and water flows down. It is just like that. In the past, china was not a country known for in bracing immigrants, Global Talent, and there are lots of policies we need to improve and we need to and lete it more clear more people know that china welcomes all kinds of talent from all nationalities, all different cultures. Taking steps will you be as the head of by do to attract that talent. It is a fierce battle globally for that tech talent. Had at website, you least a dozen posts available, trying to recruit engineers in the u. S. We already have a Research Center in silicon valley, more than 100 scientists and engineers, so we already have attracted a lot of bright talent over here. In china, we have more than 10,000 engineers. Good people are attracted to greater people, so we have a very good talent pool. That is one thing. The other thing is that china is a large market. In the age of ai, i think size matters. When you have such a large size, you can try a lot of things. You encounter new problems before anyone else, then you try to solve it. You have a lot of data. Smart people always have ideas, lots of ideas, and we have involvement where they can try it out. That was the baidu ceo speaking to Tom Mackenzie in beijing. We have some breaking news from the delivery of this judgment from the korean Constitutional Court. The acting chief justice saying that President Park did leak classified documents to choi influence. D hid her some of the line saying that the president violated the constitution, but also saying that the response to the ferry disaster for a she was heavily criticized, that cant be a reason for the impeachment, saying that she hit her influence when it came to state affairs. We are waiting essentially for the court to get to the actual ruling. Rishaad absolutely. We are eventually getting there, but markets, the kospi moving just before this verdict and it has turned tail, headed lower. That is what we have at the moment as we head towards park geunhye, the suspended president finding out her fate, whether she can be president or whether she will be facing, well perhaps, in peach mint, perhaps even further trials as well. Youre watching bloomberg. Haidi lets get you up to date situation in seoul, korea, the south korean Constitutional Court has unanimously held the impeachment of President Park geunhye. That ruling has just been delivered, saying the violations of the law are grave and they have seen a continuous violation of south korean laws in terms of hiding the influence of her confidant, choi soonsil, and that is the latest coming through. The upholding of that Impeachment Vote of President Park geunhye. That vote taking place in december, and we have been waiting for that ruling since then. We arelly action releasing reaction, the kospi climbing on hopes that this is turning over a new leaf when it comes to south korean governance and politics. It has been a time of unprecedented turbulence in recent south korean history as we have seen this influence peddling scandal resulted in the taking down of the president , but also top Business Leaders and political leaders in the country. They said they wanted to come to a fast and fair conclusion. As far as markets are concerned, that Immediate Reaction seems positive. Rishaad absolutely. The judge they are saying the court did find she abused her power and broke the law to help a friend to extort money through her foundations, saying the violations of the law were extremely grave. Theyre now with that unanimous inolding of park geunhye peach mint, meaning she has lost president ial immunity. At look at the position in reaction to this market wise come here is juliette saly. Juliette yes, have a look at what we saw on the kospi, that big dip just before we heard the news, then we heard the news the court would uphold the impeachment. You can see that big rise for. 3 , holding at the day highs, but it is significant to see that dip on the uncertainty before the news was handed down. Back in the black very much, up by. 3 . Start forbe a new koreas Corporate Governance. Will there will be more confidence and conviction coming through into the equity market . The korean won has been down the last couple of sessions and is now slightly higher, pretty flat, but that big spike coming through, dollar weakness. 1158. Rean won now investors seemed pleased by the decision, or at least finally a decision. Atdi investors very pleased the moment. We are seeing reaction on the markets, but lets get over to shery ahn. We finally have this result, unanimous. It was unanimous amongst the judges in the Constitutional Court. It was unanimous, and much faster than we expected. About 25 minutes from the start saw case youd we this case. We saw the justice read out the final verdict, the same amount of time it took for the former president s impeachment case in 2004. What happens from now would be the question. Elections will be held within 60 days. We are expecting the acting president to announce the date of the election, but we have to think about the reasons behind this unanimous decision. Now the justice explaining to the public why President Park geunhye had to be removed from office. President saying that park has continuously violated laws, that she had hidden influence and state affairs. Choi soonsil is a close confidant of President Park geunhye, and they were accused of colluding in order to get bribes and also abusing President Parks power. So in this regard, the court saying that President Park violated the constitution, that she abused power, the president ial power for choi soonsils interest, and they also mentioned that President Parks impeachment could not rely on her response to the ferry disaster a couple of years back that took the lives of so many and cost so much public anger against her. That is not why this impeachment went ahead, but it was because of the reasons of colluding with her close friend and accepting bribes and abusing her power among other charges. Now this means Going Forward and that they will have to call an election. That would take place before may 9, 60 days from today. Very quickly here as well, well, of course, this is confirmation of her impeachment. She cant run again, so who is likely to be the next president . Is there any front runner at the moment . Seeing one member of the main Opposition Democratic Party being the front runner now, gallup polls showing he has 30 of support of the country. Even if he is the front runner, willthe Democratic Party need to select their on candidate, so that could lead to primaries come even a runoff if they dont have a majority of the vote. The second most favorite right now is the Democratic Partys governor of a Southern Province with 10 support. When it comes to the president s now rebranded as liberty korea, they are in disarray and pinning their hopes on the acting president , but either way, whoever the next president is haidi we seem to have lost you aren for now, but seeing the turnout of koreans on the street in front of the Constitutional Court as well as the Security Response there. We have seen rounds and rounds, weekend after weekend, of protest culminating in a parliamentary vote in december to have President Park geunhye impeached, and that triggered the decision for the Constitutional Court to consider whether they would uphold that. In the last few minutes, we have had the delivery of that judgment, the ruling unanimous, 810 on the Constitutional Court ruling to uphold that decision to in peach, to remove President Park geunhye from office and triggering the next 60 days. We seem to have shery ahn back now. I want to ask you. You have seen people in the streets. There was that element of what the populace wanted, a change, a new leaf. With this appease some of that sentiment . What are you hearing there being on the ground . We werehe fact is talking about protests and south korea, both sides, for and against resident park being removed. Some of those against the impeachment motion said that these illegal procedures had to stop. The ones that wanted president they will be having celebratory gatherings tonight and tomorrow as well. The crowdsexpecting to disperse any time soon, even with President Park being impeached. They have said they will stay on the streets to celebrate this new beginning for south korea. Rishaad its interesting, we have now seen the kospi return to little changed, giving back very quickly those initial gains that we saw after the verdict came through. In terms of the markets, there are uncertainties. Goldman sachs with a note saying the Political Uncertainty domestically as well as the geoPolitical Tensions, it is a tough time for whoever takes over now in the leadership. Shery it is. Despite what the markets are doing, and remember the kospi has been resilient, up 4 in dollar terms since the impeachment motion passed of the National Assembly december 9. The sense here is that Consumer Confidence has been hit. What that means is that people are not going out to spend it. We are expecting Slower Growth this year. That is according to the bank of korea. Remember, this is a country that has record levels of household debt. Cannot cutthe bok rates in order to stimulate the economy. Also because of the differential with u. S. Rates, with the u. S. Ready to hike rates, south korea does not want to risk more capital outflows, so this is a country that has very few options when it comes to Monetary Policy options. What that means is that the fiscal side will have to plate in and try to boost the economy. Remember, Unemployment Rates , they are ok for the rest of the population, but when it comes to the people under 30 years of age, the Unemployment Rate is double that of the whole nation, so a lot of people on the ground, especially young people, cant get a job and are calling the situation hell. Haidi it is a perfect storm and a lot of ways. Im curious though, we will be talking about what happens to the country and the leadership now that the president has been removed, but what happens to park geunhye . Do expect to hear from her . Where do we go from here for her . Shery we have heard from local on president ng parks lawyers, saying she will accept the ruling of the court. We dont know when we could hear from her, but the feeling on the ground is that she will do as the court says. What this means gether is that she could charged. She could be arrested as she loses not only her power, but her immunity as president of south korea. You so much for that. Shery ahn there in seoul, korea, next to the Constitutional Court, where this judgment has been passed down, a unanimous vote to uphold that impeachment of President Park geunhye. Lets get back to the markets now. Juliette saly is looking at korean assets. That did not last long. Juliette we are still higher, up. 2 , but it is essentially where we were an hour ago on the kospi. You saw this big fall, falling by. 4 . This as those lines started to drop as it was unclear whether the impeachment would be upheld. When it was, you saw that big quite arobably a lot of options in the market. Now it is up by. 2 . Longer chartt going back six months, you can see the kospi has done well, and outpacing gains on the nikkei since the initial impeachment on december 9. The cost be has gained 4. 6 in dollar terms. This is as speculation that we will see the front runner for the presidency now that there will be an election, try to theseup some of familyrun companies could we also know jay y. Lee is on trial as well. Having a look at the kospi moves today, quite extraordinary. A couple of sessions for the kospi, the currency now strengthening against the dollar. So in that momentum we have seen since the announcement came through from the Court Justices that the impeachment would be upheld, you have seen quite a lot of selling in the dollar, so the korean won against the dollar up by. 2 percent, certainly an interesting session for the korean equity market and of course for the won today as well. Haidi we wanted to know where the volatility is come and we are getting that. Quite interesting just before we leave that Market Reaction, we saw that bounce from some of these chinarelated stocks potentially on optimism. Whoever takes the leadership can focus on ds collating some of the geoPolitical Tensions good lets get the rest of first were news with paul allen in sydney. Constitutional court has unanimously upheld the impeachment of President Park geunhye. The president had continuously and gravely violated the law. That means she immediately loses her power and immunity from prosecution. Election must now be held within 60 days. s lawyer said she would accept whatever verdict was announced. With the European Union could take 15 years to conclude. The Danish Foreign minister said it could be hammered out, but years away. London once trade talks to start during the twoyear period. That is the timetable we are working to come and the timetable the European Union is working to. If i am optimistic that we can achieve a good and comprehensive freetrade deal with the European Union, why am i optimistic . Because it is not just the uks interest. It is also what is in the interest of the European Union. Paul a draft statement from next weeks and g 20 finance ministers meeting suggested, china, and other members may scale back their commitment to climate change. It notes scarce resources and seats the campaign to the private sector, but july, finance ministers called on their governments to implement the agreement by mobilizing 100 billion a year. Universities and Stephen Roach says many of the Trump Administrations claim about china are highly dubious. He told bloomberg there is little evidence that it was responsible for lost u. S. Jobs, while beijing is burning through reserves to prop up the yuan rather than keeping it artificially weak. He said targeting china wont help u. S. Growth. You cant fix a problem like that by ganging up on one country. It is like why come all. If you hit china, it will spread to other trading partners. The present problem is we dont save, and unless we boost our savings, we will have deficits with over half of the countries in the world, and there is no chinese solution to americans macro imbalances. Paul global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad we will talk about something completely different could we are focusing on a Hong Kong Based startup that has been described as the uber of the districts. The Company Providing on demand million and raising 30. We are joined by the cofounder. Thank you for joining us. How did you come up with the idea first of all . And tell me how it works . If you look at what we are doing, it is a hong kong innovation. Shared already using resources in hong kong, but in the past, you were using voice to atch the shipper driver. You would call into the call center, and the call center woodson your driver. Instead of using voice, we use data, an apapp. Rishaad it is effectively like uber, isnt it . Yes. Rishaad how did you come up with the idea . That you were a professional poker player . It was a gamble, wasnt it . You mentioned uber. Hat is where we started i looked at uber and they matched passengers with the driver. Any wayinking is there can replicate that model, but elsewhere . That is how we went to delivery. Also in hong kong in the past there was a Call Center Model to do delivery, so that makes it logical to use that approach, but to do it differently. Rishaad you join the party a bit later. You saw this is a proposition , and it isle of asia rolling out at a phenomenal rate. Is it sustainable . Definitely. We started slowly to make sure we had a product that people wanted. We opened in one city the first year rishaad how long has this been going on . December 2015. We are looking at 6070 cities this year. Once we found something useful, now we can expand rapidly. Rishaad you are making money . Yes. We are aiming to be profitable as a company. Rishaad when . This year. Rishaad are there differences, some cities networking as well as others, and are there specific reasons for that, and which cities are not working because the economy is not working that good, see you could act as a bellwether . Cities thatalue in are fragmented, messy, terrible traffic. Shanghai, beijing, bangkok, a ton, these cities find of value in our service, so it is where we are growing the fastest. It does not mean other cities are not doing well, but wrote this driven by a large fragmented city. Rishaad and the ones which are not doing well then . I would say they all rishaad you would say. They are all progressing well. Logistics has not changed in decades, so we are giving people a fast and simple way to do delivery. Is this is an customers are loving it because they do not have to buy vehicles. The citys love it because we are making the cities more efficient. There is a saying in chinese that because is is things have not changed in the last 50 years. With the mobile internet, you can make things more efficient. Vehicles connected on the internet come introducing and optimizing efficiency. Me tod that brings talking about also the financials here. You have this series b funding done. You need more money or we you be coming to the market for more money . What is the deal . Our cash flow positive, so we are not in a hurry to raise another round. Rishaad you say you are hong kongs first unicorn. Thee are trying to become first unicorn from hong kong this year, and i think that is also good for the city. In a way, there is a lot of competition in hong kong. There has not been any new industry. Rishaad quick word, ipo in the future portray sale . What is the deal . We have a lot of fun writing this company. Rishaad you can still run the company if you had an ipo. Yes. Thanlikely to be an ipo trade sale. Usually the preparation for an ipo is three years. Rishaad how many cities where you be in this Time Next Year . 115. Rishaad thank you so much for joining us today from lalamove. . Hat is going on some fresh news coming out . It is interesting because we did see that move up when it comes to the kospi, korean stocks up. 5 in the wake of that ruling coming through from south koreas Constitutional Court, saying they voted unanimously to uphold that Impeachment Vote for President Park geunhye, but the market has since come down and is flat at the moment. We are hearing from south koreas Financial Services commission saying there ready to take measures to stabilize the Financial Markets if needed. That is according to the chairman saying and a meeting that they will be monitoring the Financial Markets closely in case of further volatility. To be honest, south korean assets have held up pretty well. As one of the strongest performers in the fx space. About. 5 , fluctuating between gains and losses, and now we are on firmer footing after that announcement, so by all accounts, the marquis have markets have been sanguine about the political volatility, and perhaps now with the Impeachment Vote being upheld, there is more certainty going ahead going ahead for investors we have plenty more to come, including hearing from the pboc chinas military Monetary Policy and what lies ahead. This is bloomberg. Haidi this is Bloomberg Markets asia. Im haidi lun in sydney. Rishaad i am Rishaad Salamat in hong kong. The latest business flash headlines, mexicans setting out a faster knife the faster nafta timeline, wrapping up before the end of the year. Meetingign minister with the Trump Administrations advisor and washington on thursday. The u. S. Commerce secretary wilbur ross telling bloomberg he does not expect talks to start before december, and saying they could last a year. From to sheba, wanting to offload most of its nuclear unit. It aims to turn westinghouse into a nonconsolidated subsidiary in reducing toshibas exposure to the nuclear industry. Korea electric power may be an investor after it inquired about buying into a u. K. Project. Bank of nova scotia in talks to sell its malaysian operations. The canadian under has worked there for 44 years and has held malaysian assets of 980 million as of april last year. Taipeibased banking and Life Insurance company has exclusive bidding rights until the end of april, according to filings with the taiwan Stock Exchange. Chief jamiegan dimon says u. S. Business and Consumer Confidence has skyrocketed under President Trump. Jamie dimon told bloomberg that even if only some of trumps proposals come to fruition, that it will be good for business. Here is what is positive. Look at the policies, the tweets , the people on the ground, top professionals in the military, defense, secretary of state, secretary of treasury, serious people with deep knowledge and deep experience, and their mission is to have a growth agenda, and that agenda is reducing corporate taxes, trying to build better infrastructure which we definitely need, reducing some of the Regulatory Regime which has held back growth. Allowth agenda is good for americans, middleclass, low pay, job creation. Lot,dence has jumped a probably because of the progrowth agenda. Do have any doubt he will be able to follow through . They, the republicans of the house, the senate, 30 plus governorships, they have a better chance of getting those things done. I dont have a timetable. I have high confidence they can get it done. Everyone once good infrastructure. Is because they are not against bridges, tunnels, roads, and most people acknowledge it it is time to look at the Regulatory Regime and recalibrate and make sure it is conducive to growth and does not hurt Small Business formation and things like that. What is one question you get asked the most by clients . Is a trump or china . How can you wont take a deposits. No, how come the cost of repose are so high . Mostly around the new administration. That is traditional. You have a change in leadership and people are concerned. Around the world, it is trump. Rishaad j. P. Morgan chase boss jamie dimon talking to francine lacqua. Some breaking news out of beijing coming from the pboc, a Media Briefing, talking about the Federal Reserve being a factor when it comes to Foreign Exchange volatility. He says it is a sensitive market rate shouldthe yuan be stable this year, and Interest Rates are based on a domestic situation and not looking internationally. Also blaming the dollars rise on the election of donald trump. Last mediae of the briefings given by the governor of the pboc. More on the way. You are watching bloomberg. Rishaad aim Media Briefing taking place by the pboc governor. I am Rishaad Salamat in hong kong. This is Bloomberg Markets asia are getting news flow coming through. Lets get you caught up to date with what we know so far about the and preach meant the impeachment of President Park geunhye. The Constitutional Court ruling eightzero to uphold that vote to in peach President Park geunhye. What happens from here . Withiniggers an election 60 days. Opposition leaders currently leading when it comes to the polls. The blue house, the residence where she has been since lawmakers impeached her and december, stripping her of her power. She is removed from the presidency, the court saying that she committed a grave violation of law choi soonsil with. Law with choi soonsil. Rishaad she will be leaving the blue house, where she has been trying to get her defense organize. Breaking news out of the pboc, the governor there giving his last Media Briefing as governor, assetg about looking at management regulation, studying that, talking about Foreign Exchange, saying it is a difficult market to predict. It is a sensitive market is what he has been saying, and saying the yuan should be relatively stable this year, but at the same time, saying it is difficult to predict what aspens with the yuan there well. So that is what we have at the moment out of the pboc. Haidi thats right. The yuan is where everyone is focusing, but saying that chaos in the Asset Management sector is a point where we will see reforms from beijing. Announcer from our studios in new york city, this is charlie rose. Anthony im anthony mason, filling in for charlie rose. We begin with politics. President trump campaigned on repealing and replacing the Affordable Care act, the signature legislation of the president obamas eight years in office. On monday, the Trump Administration and House Republicans unveiled their plan to upend obamacare. The bills sixth to eliminate the individual mandate for most americans, in favor of a new system of tax credits to attr