To extend its surge. That is helping those Energy Players today. We are seeing copper higher by , and auminum up by. 4 good gain in steel as well. A switch out of gold, not function, the gmm but an indication we have investors not to worried about risk. We are the stocks watching, Lg Electronics having its biggest drop since february 27. Trading boy them is double the 30 day average. It is still falling, a day after samsung launched its new phone. Takeda pharmaceuticals up, its vaccine has triggered immune responses, and you can see dulu of the worst performers as we saw a downgrade saying the gain is unwarranted. Lets look at the off shore renminbi, some movement there. Weakenhave the pboc the fixed today, and they did open Market Operations saying there is enough liquidity. Rish. Right, lets get to first word News Headlines and find out what is going on. The ousted korean President Park geunhye is in court as judges here arguments for her arrest. Aosecutors are seeking warrant over claims she abused her powers and colluded to force big distances to pay bribes for favors. They say her arrest would be reasonable and lawful as there is a risk park might destroy evidence. Park denies any wrongdoing. Plans to take over the London Stock Exchange has been blocked by the eu. Regulators say the 14 billion deal would reduce competition by creating a de facto monopoly. It is thought that the Expansion Strategy five years after the eu band is proposed higher with the nyse. Markets, they both provide the same services. In some of these markets, they are essentially the only players. And the merger would therefore have led to a de facto monopoly. Concerns are very serious. President saysed a rate increase at every other meeting in 2017 should be the default policy to stop the u. S. Economy from overheating. Rate increasesy in june, september, and december following the one we had a few weeks ago. Other fed presidency up to two fed hikes, and janet yellen supports that consensus. Four in one year would be less than what we did during the last time we were coming out of recession. It is twice as fast. So relative to that, this is more gradual come even if we did it every other meeting. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thanks for that. Lets get back to our top story, brexit. Is next guest says he selling the pound after the trigger plays out. Fxis the head of research in singapore. Great to have you. This trajectory we see playing out when it comes to the pound, is it as good as it gets . We are looking at two years of extreme uncertainty and unknowns. I think in the shortterm there could be a bit of pressure on sterling come but argue is that of the next 23 years, there could be potential upside risks on sterling. There are still a lot of questions Going Forward them a potential delays in investment. You might see issues about wage growth. , onethe next 23 years might need to look at how the fundamentals are doing. , pressure on the sterling will still be there. Haidi your notes say over the next 12 years, the outlook when it comes to cable is a buy because fundamentals suggested is overvalued. To saying sterling could go 1. 36 if the talks go well. That is a pretty big if, no . Indeed. Commencement, they are still committed to a Free Trade Agreement in the eurozone. There are still questions, risks of a Scottish Referendum as well , so the uncertainty and the potential for elections over the next 12 years could raise a bit uncertainty onnd sterling, but generally we want to look at the fundamentals, the data, so our view is similar to 1. 301. 40, closer to but in the meantime a bit of volatility. How does the boe play into this . I want to bring up this financial conditions chart. U. K. Financial condition since the brexit vote have improved pretty dramatically, and inflation is getting to the point where the boe wants it to be, and the expectation we will see a move from the boe has shot up to 40 by the end of this year or early next year, so do anticipate the boe to move to tighten while europe is looking tighter, or do you think they will stay on the dovish side ahead of the unseen implications coming out of brexit . Think the risks of the boe remaining cautious, dovish, is still there. Growthlook at real rates , the inflation rising and wages not pricing in line with inflation, and even though we are seeing positive numbers out is a bit think there of softness in the u. K. Numbers over the next year or so in my view. We are seeing some softness already, so my view is the boe will try to be cautious, so a dovish bias will be there. I dont think we will see a huge hawkish move on the boes part with the next year or so. Haidi i want to talk about the u. S. Dollar. That has been the momentumdriven part of the sterling rally. We have seen a decline in the dollar index. Do anticipate further falls, particularly we have not talked about this, but potentially republicans going back for another crack at the health care bill. If that its rejected again, is that a significant dent when it comes to confidence, particularly you have Inflation Expectations for the u. S. Starting to weaken . So definitely yes. Health care at reform, but overall we want to look at how the micro policy out of the u. S. Will be like, the pace of fed rate hikes, the theal tax reform also from Trump Administration how successful that will be. Expectations are driving a lot of the dollar bullishness on the u. S. Side, but if you look at the dollar index, you might want to see how the yen and the euro open up. You can see the euro and the yen weakening. The dollar starts picking up a bit. We will probably see a tight range in the dollar index around the 99, 98 probably some softness around these issues, but a slightly milder dollar trend still continue as u. S. Opments out of the develop positive signs. Haidi in terms of where we see the yen going, it has been stuck at that 110111 handle. The next leg down would be 10 seven. Where do you see that going, particularly in light of the uncertainty over the dollar rally . I think what you are seeing now, you might see aroundttently dollaryen 108110 in the current environment. We are seeing flows, if you look , ecb, currencies, euro boj, you are seeing some weakness come on stream and the dollar strengthening against those currencies, and similarly for the asian side, but youll probably see that range until the dollar starts strengthening and a more sustained manner. 120ill not see it break unless the boj comes up with changes on the policy side in japan. Come inust quickly april we have the highly anticipated u. S. Treasury report on fx. Are you expecting china to be mentioned . Time they were labeled a currency manipulator with the 1990s come and it feels like that sentiment has died down recently. I dont ring so. They need to satisfy three requirements come exchange reserves, current accounts as percent of gdp come and trade balance with the u. S. I think china does not meet all three criteria to meet that threshold. Mightk no asian currency be in that list, but i am not so sure china would be because they dont meet all three anuirements to be deemed exchange manipulator at this current juncture. Haidi it looks like we just change the criteria, but great having you as always. The head of Global Research fx markets at mabank. You are welcome. The italianhave finance minister on a visit to london to attract investors. We have an exclusive interview, and he said investors should look at recent progress in the italian economy. It to lee has strong fundamentals. It has this recovering from the recession. Reforms are paying off, and of course there is a huge debt come up at the debt has stable allies and we begin to go down as of next year. So this is a major turnaround with respect to the previous 1015 years in the country. Rishaad we will hear more from him on Bloomberg Television and Bloomberg Radio midday hong kong time, 5 00 a. M. In london. Asking j. P. Morgan head of regional oil and gas for his Energy Prospects in the asiapacific. Rishaad this is Bloomberg Markets asia. I am Rishaad Salamat in hong kong. Haidi i am haidi lun in sydney. Chinas big three carriers set to report fullyear results today. Bloomberg analysts say they could see their best combined profit of nearly 3 billion. Currency swings and volatility may have slightly dampened earnings growth. Lets look at how the shares are faring at the moment. Diversions, air china the only one in the green. Looking at China Construction Bank reporting better than expected increase in fullyear profit, share price under pressure, net income easing to vendors under pressure to achieve higher Profit Growth in the face of tighter regulatory scrutiny. Says talks with ,reeport mark Oran Freeport the two sides are trying to resolve a dispute that has halted exports since january. Indonesia wants producers to apply for a Second Special mining license. Chinas biggest oil and gas company reporting fullyear results friday, investors want clarity and a higher dividend and an outlook for the rest of the year. Petrochina the last of the three Big Energy Companies to was or to report. Of oil and gas at j. P. Morgan, it has been a surprise, this earnings season come out of these guys, because they have been doing better than people anticipated . The Biggest Surprise has been the dividend. Rishaad under pressure to do that by the regulators and authorities. They do have a lot of cash they are sitting on. If you look at the trends within global oil, better cash returns to shareholders has given better relative performance within a sector or globally, so the chinese names are realizing better cash returns to not just the government is a better way ford. Rishaad tell me something, out of the three, we havent heard from the third one yet, but who do like the most . Because itsinopec has more cash levers to pull to sustain Dividend Growth longerterm, so possibly , the refining and Chemicals Business has been particularly good, the top is end of a cycle, where as other two, it is around oil price leverage. Jp morgans view is that we are in this broad 50 to 60 range bound oil price. Rishaad how does that translate . Shale ise range bound, the swing producer now, havent we . Cnooc we upgraded because of better cost management. If you can reduce your portfolio orre breakeven is the 40 50 level, then you are more defensive on a macro thesis. That lets go back to dividend policy. We did see that 20 plus jump for all soes. Are you expecting a major change out of these earnings . Oils, the for the policy is clear. Petrochina, 45 percent payout, sinopec minimum 30 , so i dont think we are seeing any change in policy. We are seeing better absolute cash return to shareholders. Haidi we have had more rhetoric coming from beijing that they will hasten the pace of supply reforms, consolidation. We have this potential merger, theyve been talked to go into talks for this arranged marriage type of thing. Are you expecting consolidation measures or structural shift that is not driven by policy . To theink with respect oils come and particularly petrochinas report, better clarity around restructuring and reform, and other, assets, mixed wouldrship, i think that be taken positively if there is more clarity. I want to bring up a chart 7116 if you are playing along at home, broken down by subsector. You see energy underperforming those other subsector assets. Do you see this trend continuing . Whatels like opec has done it has promised to do, and overnight, you saw some producers not bound by the supply cut agreement have reduced as well. In the wake of these flattening inflation expect haitians, is gets . Eally as good as it you said oil will be range bound for the near term. Within energy, you have to be selective. That is a year today chart. Last year, resources outperform the market, so there is an element of profit taking. Opec, our base case is on the 25th of may that we see cuts extend. There is debate how compliant opec are. Saudi has done the heavy lifting, and may be in may 1 of the issues will be around saudi exports because although saudi production come exports may continue at the same level. Rishaad what did you find out . What is this message you are getting, very quickly. The key is saudi is serious about diversification away from oil, and we believe by 2020, the fiscal breakeven will be 40 from 67 dollars now, and that frames our 40 to 60 view, and that is why we did not advise investors to be more defensive on these companies which can pull levers and sustained cash returns. Rishaad great to have you. Samsung hitup, can a high note with its latest smartphone . We will be discussing that and more next. Samsung is hoping to take back the number one spot after its new model after the note 7 debacle last year. Bloomberg intelligence tech. Nalyst is with me now what are the most exciting features . Got to not get out of the park, hasnt it . Personally i think the infinity display is impressive. I have been an apple iphone user, but i am intrigued by the wider display and the curved edge screen. At the same time, you dont feel the phone being bulky. Rishaad it is bigger than the iphone seven, and the plus version is bigger than the iphone 7 plus. Plus, noow call it s8 longer distinguishing it because both phones have the edge display. The only maker who can offer that panel. Rishaad is s8 Strong Enough to regain Consumer Confidence . I think the phone is quite strong in terms of the hardware. A lot of leaks of the specifications match what we have been writing about, so maybe in terms of the surprise factor, it a not be a lot, but it is a strong device, and now they are incorporating this system, leveraging on last years acquisition, so it could be a Great Success for samsung. Having said that, that does not mean it will have a strong comeback. Bear in mind that the key focus would be to regain customer confidence, so i suspect samsung will spend a lot on marketing to regain their brand recognition. Thank you. That is all we have time for. The galaxy s8. Brexitcoming up, will cause chinese investors to lose confidence in u. K. Real estate . Ofwill put that to the ceo the chinese property portal. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Charlie we begin this evening with more questions about the russian hacking of the political process, and also about accusations against the Obama Administration from President Trump. Calls are mounting for the republican chair of the House Intelligence Committee to recuse himself in the investigation into russian meddling. The chairman admitted he met with a source on white house grounds last week to view secret reports. He suggested that had potential surveillance of President Trump or his associates by u. S. Agencies. The chairman has canceled all