Net. Is the month to date 3 billion for south korea. A similar amount when you look at the top handle. , you could find a come he did find a few people that would tell you that. About 40,an markets, 50 point short of its high. The other market i want to mention is when you look at australia, for a split second, we dipped below that 50 Day Moving Average on the a sx 200. That is into wednesday when there was a selloff of wall street. We are back above that at the moment. We are clear off that. When you look at markets, australia doing very well. 56 points to the upset. We will be fleshing out these stories for you. The open in tokyo and whether we really move forward, now that we finally see the japanese yen weaker against the u. S. Dollar. In the meantime, here is first word news. Leaders sayublican they plan to vote on the bill washingtonrnoon, time. A group called the Freedom Caucus forced a delay, asking for a broader appeal of obama care. They do not believe negotiations at the white house are over. The bill has struggled to win support from delegates. Warning that u. S. That could become unsustainable. Robert kaplan made wideranging comments at an event in chicago, including asking janet yellen and colleagues to rollout treasury holdings. On u. S. Studies of the only reason it is not Headline News is that Interest Rates are low. But he warned that will change. The federal government is at the point where public debt as a percentage of gdp is about 77 . Addition, the present value of unfunded and future entitlements is 46 trillion. The reason it is not the lead story on the front page of the paper every day is because Interest Rates are very low. In the years ahead, i do not think, do not know that this level of debt is sustainable. To sheba the most in the months after hedge funds became the biggest shareholders. A regulatory finding Shows Capital held a percent last week. Toshibald optimism that. They won a bankruptcy filing this month. Samsung shareholders have been told plans to split into a Holding Company are not easy and likely to be abandoned. The Government Committee will meet next month. The first agm jay y. Lee is allowing investors to question the board about restructuring and plans to recover from the note 7 tobacco. The note 8 will be launched next week. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. David thank you. Chinas premier and australias Prime Minister have signed an agreement about the trade relationship between both countries. Paul allen joined a set of sydney for more details on what has been agreed on and the talking points we will be watching moving forward. As expected, it is a win. Paul . Paul there were some factorys license to export chilled beef to china. Now all available exporters can export chilled beef to china. The Prime MinisterMalcolm Turnbull hailing that development. He said chilled beef exports are 1 billion per year. Significantive growth in a sector. There are also memorandums on infrastructure cooperation, vocational training, cultural exchange. Malcolm turnbull announced there would be a new australian consulate. When premier li had his opportunity, he defended the globalization and free trade. Here is what he had to say. We both think it is important to uphold free trade, regional stability, and International Peace with of the world facing growing uncertainty. We also see that the Global Economy is fragile. Although there are good signs, the recovery is not strong enough. Paul i merely said it is time for us trillion china to enter a new era of free trade area trade. David from a business perspective it has been quite smooth. But there are other things that they do not want to talk about. Took an awkward question from media about that shot south china sea. Paul right out of the gate. Should russia and china show goodwill and abandon the island reclamation . Premier league gave an li saidive premier all along it has been peaceful and stable. In the past 12 months 100,000 ships have sailed through the area without incident of attacks. If there is military presence on the islands it is to maintain freedom of navigation and overflight. He says without those freedoms china would be among the first to suffer. Is that china is working with its avian partners for a code of conduct. Prime minister Malcolm Turnbull picked up after the answer and called it a very generous and copperheads of answer. And said he looks forward to sing that coat of conduct code of conduct. David paul allen from sydney. Looking at markets, equities are bid, dollars bid to a lesser extent. The peso gaining. A fair amount of Risk Appetite as we wrap up this week. Not too bad for our friday. A week that saw a roller coaster ride when it comes to equities. We see a comeback in australian stocks. 200 up 1 asx 200 up 1 . The week losses there. Kospi down onethe third of 1 . Take a look at what is going on. Were seeing the Dollar Strength pick up somewhat. Bankas we do have the fed president seeing three rate hikes. We are anticipating that Health Care Bill vote in the u. S. Friday. Around thethe peso 50 mark falling after the Central Bank Left rates unchanged this week. They were in the lowest level in about a decade. Currency move through, adjusting that and maybe undervalued. Saw theri lanka we first hike in key Interest Rate since july. This has contained inflation. Take a look at some movers in asia today. Hashave has linda linda point out. Effissimo capital was the top shareholder. They have invested it in an undervalued japanese company. Today we are also expecting earnings out of hong kong and china. Great wall motors rising 4. 5 ahead of its earnings update. Bloomberg intelligence ofouncement intelligence says it is under threat because of the ongoing price war among chinese autos. Is a disclosure based on higher than affected dividends. To theending shares highest in nearly four months. This, despite the worst off a drop we have seen for 2016. The drop in asia today as they come under pressure from the first Shareholder Meeting since jay y. Lees arrest this morning. The company apologize for their role in the scandal. Saidding the future, they it may not be easy at this time. The stock is split. That is not something theyre looking at the moment, david. David absolutely. Earnings will continue to be the story across the market right now. You have cnooc. We have fuji mining and the postal bank of china. Thisngs a bit later on trading session. Next. Talk about what is we hear from the ceo of one of the worlds biggest companies. He joins us in under half an hour. Tensions fromking a u. S. Trade representative. He gives us his take on the Trump Administration means for global relations. There is no bigger strategic and economic gift we could give china then for the United States to move away from nafta. It would mean less effective production and the less efficient production in north america, which would be a huge windfall for chinaled asia. It would create an immense strategic opportunity for china by reducing the ties between mexico and the United States. Have two different scenarios. The table is not good for mexico, mexico will step step away from nafta. If you are the government of the united dates you want the tax revenues associated with successful businesses. You would not want to cut yourself out of that much economic opportunity. That is a problem with a regional approach, if you are the United States of america. You are the largest economy in the world. You cannot grow enough to take your of your population. At the only way you can do that is connect with the world economy. David those were the views of some of our guest today on number television. Trade, lets get to china. Steve is there, standing by with one of president obamas top negotiators during the tpp talks. Given what we have heard, there is a lot to talk about in this space. Steve absolutely, so much to talk about with michael froman, former u. S. Trade representative under mr. Obama from 2013 to 2017. The theme of this is globalization, the asia perspective. Lets get his perspective on this. Mr. Trump talked about a border tax and import tariffs on chinese duties of to 40 . He has talked about pulling out of tpp and nafta. Are you pulling out your hair . He is undoing everything you have worked for for the last four years. Mike so far, the only one he has done is indicate the u. S. Will withdraw from tpp, which i think is a terrible mistake and creates avoid that china is filling in the region and will economic butly our strategic position in the region, as well. We have to see how it plays out and whether Congress Plays a role as they traditionally have been trade policy, whether congress restrains him in those areas, as well. Steve do you think there is still a life for tpp . Mike i do. And week they met in chile discussed the possibility of proceeding without the United States. Leaving the door open that the u. S. Might join in some other time. In part because they value the High Standard rules that were negotiated. They understand how important it is for those rules to be put in place across the region. At a time when alternative models are being put forward that do not play to our interests and values. A number of those countries may decide to do that on their own. In terms of even the United States when we talk about negotiating nafta in the u. S. , members of congress have said we should add a labor and environment chapter, on enterprises and digital economy. Those are all part of tpp. Whether tpp work moves forward in the same way, or whether the work goes in other ways, it remains to be seen. Steve youre being diplomatic. You were the lead negotiator in tpp. You want the u. S. To be involved. Mike as other countries move forward with their own trade agreements, our businesses and farmers will be cut out of these fastgrowing markets and that hurts american workers. Both from a market share perspective we will lose opportunities in the region if we are not part of this. From a rules perspective, there are rules that affect our rights,s like property disciplines on stateowned companies that have to operate as private when they engage in commercial activity. These are things that we got, small and large, developed and undeveloped countries to agree to. Youe what kind of tax if will on Global Growth are we going to see if there is a border tax, import duties, a trade war with china, what is the worstcase scenario . Mike it remains to be seen. The worstcase scenario would be where they raise tariffs and other countries respond. That could lead to declining growth, heard american workers. We export more than 2 trillion worth of goods and services. To weatheress markets to support wellpaying jobs at home. We find ourselves in a trade war with each country is raising barriers, we will be hurt, as well. Steve what is the future of the bilateral investment treaty with china that has gotten traction. There is no fda with china but it could have been a step. Progressmade a lot of on the bilateral investment treaty. President xi put a lot of emphasis on making progress. About supporting economic Reform Efforts in china, getting the government fundamentally out of managing the economy. That is very much in the United States interests and the rest of the worlds interest. Chinese leadership will return to the principles they laid out before. Steve do you worry that the blurring of geopolitics and trade has intensified to the point that protectionism will win . Mike there are worrying signs about protectionism in the u. S. , europe, and elsewhere. The u. S. For years led by example. Not that every and the leadry is perfect, but we by example and strengthened a rulesbased system. If we dont, who will step up . Steve what will brexit look like . Mike it looks complicated. The british have a big job on our hands to negotiate with the European Union. In terms of its relationship with the rest of the world, Prime Minister may was in washington and met with president trump. There was discussion of a Bilateral Agreement at some point. That may be a possibility, but until the u. K. Sorts out its relationship with the European Union it is hard to have any meaningful discussion. Steve can you stick around . We will take a quick break and be back in two minutes time. More in our conversation with former u. S. Trade representative michael froman. We want to talk about the chinau. S. Trade relationship. Welcome back to our ongoing coverage of the form for asia here. My guess is michael froman, former trade representative under president obama. Have been involved facetoface with chinas negotiators on various fronts. What is it like and his team trump in for a big shock . Are very tough negotiators, very well organized. I think the Trump Administration naturally is still getting its act together, getting its team in place to go three policy process to see what they want accomplished. Rex tillerson here last week. The conversation was largely around north korea. We have not heard much on the trade investment front visavis china. But we expect them to engage with the chinese on that. Steve do you think they have a chinese policy yet . Mike china is very high on their agenda. A number of people in the administration have strong feelings on china. During the campaign, the sons the American People have the Global Trading system is not working for them. That some countries including china are not playing by the same set of rules. That is a deepseated feeling and they will be responsible that. Ande does it worry you, the push for globalization, the rhetoric that is coming out not just from trump, but from light hizer and others . Mike it depends. Everyone wants the same objective. They want china to play by the rules, strengthen its economy, provide a level playing field, not to dump goods and the u. S. Market or illegally subsidized products. The question is, how best to achieve that goal . We have 16 cases against china at the wto and we won every case. It is up to the Trump Administration best achieve those interests. Steve mr. Trump does not think the wto and multilateral approach is not been working. Do agree to a certain point . Mike it has been important to use the tools we have to hold chinas feet to the fire. Cases, theylostto changed policies. You have to stay vigilant and focus on all the tools in your toolbox. To try to keep them to the page. How are they sizing up the Trump Administration . It is dramatically different from yours. Mike chinese negotiators are pragmatic. They will want to find a way to work well with the United States. They have other interests it stake. There is north korea, iran, security issues. A lot to be worked on between the u. S. And china. It is important to have an effective process for trade. For years we have been time the chinese if we do not make sufficient progress, at some American People will not support a constructive u. S. China relationship. We saw during the Election Campaign a lot of frustration and anger that will be reflected in policy. Steve tpp is not necessarily dead . Mike we will find the roles we negotiated will find their way into effect into a number of different ways. Froman, thank you so much. Sending it back to you. Great conversation with former u. S. Trade representative michael froman. David a great conversation in the hainan province. Were looking forward to the reopen in tokyo. We closed very strong there. Lower. Yen surged 1 gain for the nikkei 225. On the way up in the morning, do we see a continuum . Three minutes to the reopen in tokyo. It is 11 29 in singapore, 12 29 in the man behind londons worst terror attack in a decade had a string of convictions for violence and had once been investigated for extremism. Khalid masood has been named as the killer of three civilians and a Police Officer before he himself was shot dead. He had a history of relatively minor convictions between 1983 and 2003. None were terror, terrorrelated. We will carry on with allies across europe and world, sharing intelligence to make sure all of us are kept as safe as possibly we can. And to remind ourselves that london, new york, orlando, brussels, many cities have been the target of evil, twisted individuals trying to destroy our way of life and to attack our shared values. We will not let them succeed. Sri lanka has raised its key Interest Rates for the First Time Since july. They contain accelerated prices. By 25rates were increased basis points. Sri lanka is struggling with record inflation after the worst rout in 30 years. There was a change in policy following the fed hike. New zealand posting its highest annual trade deficit in almost eight years, 3. 8 billion kiwi dollars. The figure was inflated due to the export of a platform in february last year. Imports and exports rose on an annualized basis. New rules onroduce currency fixing. Naming and shaming banks for misconduct, that will be introduced in january. Garak negara will bank ne has a new policy to reduce volatility on the ringgit. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I amhaslinda amin. This is bloomberg. Talking about what is happening and malaysia. I want to focus on indonesia. Have a look at this bloomberg chart. As you can see, it is a composite. There has been a comeback as far as foreign funds are concerned. First time in seven months. We are going toward 600 in net inflows. Next chart, a simple one. Indonesian stocks rising to a fresh record high. 72 is your level right now. Al run a simple rr simple rsi. 6677 is your level. When you have a look at this other one, the other function and you look at where jakarta is, let me talk you through what is happening. This is the measure of the market. Not a lot of stocks are above their 200 Day Moving Average. Which speaksver, to the facts we may be getting momentum coming back into the blue chips in indonesia. To stomach stent may be signaling it is time to move on to medium to smaller caps there. In other words, a very good day to the markets. Sophie will break Everything Else down for you. Japan, 207 stocks out of 225. What else are we saying . As you noted, indonesian stocks trading at an alltime high. That is not the case for other benchmarks. We see the nikkei 225 coming in 8 10 of 1 higher. The Energy Sector taking a hit, 2 10 of 1 . I want to focus on hong kong. We see fluctuations on this index. We have a parade of earnings for investors to perus. Chinas biggest offshore gas and oil producer jumping after analysts upgraded energy to climb above 1 . On the other side of the results, cement slumping after missing its estimates. Real estate stocks tumbling half a percent ahead of sundays vote for hong kongs next leader. Booming property prices has been a contentious issue for leadership in hong kong. Shares jumpingu 5. 5 . It had been over 8 . The stock has seen a volatile two days. It is looking to set its biggest weekly loss since december. Down about 12 this week. The last time we saw something in the double digits decline in december. Stocks were atu 20 then tumbled 33 . Wild price swings there. According to merit bought asia exchanges andng shenzhen in hong kong keeping tight regulations to monitor market misconduct to make sure price swings are not as a severe as we saw with meitu. Meitu maker of the app that makes you feel prettier than you actually are. But i guess it is how you feel deep down inside. Lets turn our attention to andc, the Worlds Largest diversified federal Chemicals Company in the world. The ceo can comment on the Global Trends and what is happening beneath the surface with toxic conditions are improving globally. Our correspondent steve has had a busy morning in hainan. And you are with the ceo . Yes. do not let the pool behind me for you. We are working hard here and talking to some of the best names in business, including our next guest. He is the vice chairman and ceo of sabic industries, a large petrochemical player. Thank you so much for joining us. Your king was recently here in china, helping facilitate 65 billion worth of deals. What are you talking about in the halls and meeting rooms here . First of all, thank you for hosting. This visit by the king to beijing is a very strategic move from our country to leverage and strengthen the relationship between both nations. For us as a Business Community we need to leverage that and take advantage of it. Existingo expand our business. Seven thing in china a few years it has had a network of marketing and a surge in technology. We moved into assetbased. This visit we have extended our agreement and signed a strategic agreement where we will have three major. One is even in saudi arabia. It is an important visit and we would like to leverage it. We do not like to talk about trade. Free trade will be important for us to leverage on to having all Business Leaders, some regulators. They need to hear our voice that free trade is healthy and good. Steve speaking of that, i heard you want to go ahead with potential investment in shale gas in the United States. Does trump deter you at all . Yousef i think so. All, we look at north america as strategic on our global strategy. We have been there more than 30 years. Personally, 14 years. It is like a second home for sabic. And there is a delusion we need to leverage and be a local and active producer in north america. Our view longterm is positive. U. S. Is the number one Global Economy so we cannot afford to not be there. Steve i heard algeria is possibly a place you are looking . A very clearve Growth Strategy we need to accelerate. We need to strengthen our global positions. We look at all options, all. Nvestment ande looking at all options algeria is one of them. Steve how challenging of an environment will it be this year for your company . Was downgraded. In the finances of the government are in question, which could be helped by the rise in oil price. You as a plastics maker, petrochemical, with rather have a lower oil price, i assume . Yousef it is not necessarily that they would be better for us. Higher oil prices are sometimes better for us. Let me say something. We are a longterm producer. We look at the longterm. What our government is doing is going to strengthen our future financial positions. This reflects on us. From our side we look at this as an investment. Sometimes challenges are better for you as it community to leverage. Thanand our view is better 2016. We are positive and bullish about 2017 compared to 2016. Steve where is a comfortable oil price . Yousef sabic is extending the crude oil price. It is what it is. The most important element is our internal challenges to continue strengthening competitive. Combative positions. The last six months have been stable and good for us in terms of our manufacturing costs. Steve with iran coming online do you see room for prices to go down on a global basis . Irans relations with government, we look at global. How will it reflect our industry in the longer term . Steve what kind of fundraising do you need . I heard 2 million in loans. Yousef people are talking about it but let me say something. Sabic is a global company, we look at our financial positions and try to leverage it and take advantage of liquiditys. Steve you talked about your deals. What about other opportunities . Yousef other opportunities will be not only for sabic in china but the kingdom of saudi arabia. That is a huge investment. We could leverage at the same time in china, we have seen a strong willingness between both governments to bring the trade between both countries into the next level. As a Business Community that is a great opportunity. Thank you so much for your time on bloomberg television. Good luck out here. Boao. Wrapping it up from tune in monday for more. David steve, great work there. We wont taking sticking with a that theme. We will hear from bigname guests about where they see opportunity. Were talking about china. David welcome back, this is Bloomberg Markets asia and i am david ingles. Lets wrap up business flash headlines. Bloomberg has been told that they sell more than 3 billion worth of stocks here. Its are listing part of Credit Suisse unit. That represents 10 of its standing stocks. Money managers would not need investor approval. Shares fell as much as three per 3. 6 after our report. They have almost completed their Costly Technology upgrade. Its fundspent 60 of to comply last year. Similar system this year. 3 billion big ones to upgrade their bank technology. Kong,ere in asia and hong group will hold a meeting saturday for a publication of its first report in three years. Aong overdue it is shenzhen requirement to meet its suspension and hong kong. Kaisa became the first and only chinese developer to default. We have been live at the forum inhainan with guest talking about challenges facing china. Policymakers in beijing must look at the global picture. China has to be very careful. We live in such an interconnect the world. The u. S. Affects policies and Interest Rates in europe. But it does have an impact on china. Not everyone is astounding such a cautious note. Primaverae founder of capital. Stabilizedomy has and is on track. From is been a shift investmentrelated growth to more consumer and servicebased growth. It defines very positive. And investorsers are more reassured. Ceod we also spoke to the of chinas thirdlargest Search Engine and asked about plans to go public. [indiscernible] i think maybe it is in the future. Within a year, you think . I do not have a schedule. David that was the ceo of sogou. Theyre warning against the rise we have seen in global protectionism. Andpoke with a former ceo Group Chairman and asked if asia should be worried about growing economic nationalism. I think it will affect asia. But i think asia has now a very large consuming class. It is generating its own demand. The new demand in the world is coming from developing economies. Especially the ones in asia. Asia could do more with an asia itself. But i do not think that is the best thing in the world. The world should continue with globalization and development of multinational treaty system. In a perverse way it could help with asias innovation agenda. When you think about technology, it has been an import from the. Fundamentally fundamentally. If it was slow, i believe you would see an acceleration of innovation and ingenuity within the asian population. They have the skills, the great schools. I would watch and see what happens. To reinforce that, one of the factors is the empowerment of the consumer. If you dig deeper, it is the empowerment of the asian consumer that is rising. The asian consumer is fast becoming the most influential consumer. People have the money and spending power 10 years younger than they would have had in the west. We have a highly empowered consumer. I think a lot of new Business Models will evolve from that. These Business Models are not only applicable to asian markets but could be applicable when reimported into the west. Everyone says all they did was copy google or amazon. If you look at the fundamental applications they are providing, theyre much more advanced to what you are seeing in western Business Models. Should the u. S. Be worried that china may play the leading role in this next phase of Global Growth . I think from the u. S. Competitiveness perspective, you should worry about any portion of the economy that is not participating in growth. If you are business in the u. S. You need to participate in growth. If you are a company, the exports of that growth. Therefore, if you are the government of the u. S. You want tax revenues associated with successful businesses and those jobs. You do not want to cut yourself out of that much economic opportunity. That is a problem with a regional approach if you are the u. S. You are the largest economy in the world. You cannot grow enough to take care of your population. The only way you can do that is connect with the world economy. Is regional trade as good as larger global trade and the multilateral approach . I think all of these are better than actual relationships. Bilateral relationships the tides ofinst business, especially small and mediumsized enterprises. If you have different sets of rules for different countries, you have a complex situation in which they will find themselves very hard to manage. In a world like that it benefits everybody that you can make the regional as big as possible and hopefully a global, multilateral trading system. Ibm ceohat was a former of samsung and chairman speaking with shery ahn. Speaking of guests, big news coming up later on bloomberg tv. We have the city citigroup head joining us at 6 30 this evening hong kong time. 10 30 in hong kong and 6 30 a. M. In new york. At 8 00 we hear from everyone else. You can see the times there in london and new york. And the former finance minister. Those are coming up later tonight. Let me tell you what is coming up on this program. Be the big news on the leader, we look at the issue. David breaking news right now. A chinese company, look at that. Down before the break, 89 . We are still trying to figure out what has been going on with the stock. The drop happened 20 minutes back. . 30 in hong kong dollars. It looks to be that is where the market is trying to find the floor on the stocks. 90 down. No news flow thus far. Thatll keep you updated on if youre looking to get in, a good time. Kong, a select group voting for the territorys new leader. You have politicians and Business Leaders choosing from contenders. Our reporter is outside the Legislative Council building near hong kong. What can we expect . The election committee, 1200 people will be counting their votes for the next chief executive. It is a simple numbers game. The winner needs 601 of those votes. Sunday we know what the result will be. The first is carrie lam. She is hong kongs first secretary. And she is beijings favorite. Beijing has not kept that a secret. She would be hong kongs first leader. There is a john saying tsang. He has more support with the general population. That may have very little sway in this closeddoor vote. Does win this election, beijing hong kong may have to accept a leader that does not have populist support. And beijing may be forced to take measures it has never done before. For example, veto the vote. David it is a secret vote so people can change their mind . That is exactly true. It is a secret ballot. Carrie lam has the most nominations going into this. But that does not mean people cannot change their mind once they get in there. Has theugh john tsang support of prodemocracy groups, more than 200, he does not have enough to score more than carrie lam at this point. Like,jing really does not they may veto the results. Affected david it is noon in hong kong. Heres is an update of your top stories. A vote on the stalled Health Care Bill. Called the Freedom Caucus forced a delay, demanding a broader repeal of obamacare. The chairman says he does not believe negotiations with the white house are open. Shareholders of samsung have said plans to split the company into a Holding Group and operating group are not easy