president trump prepared to give the verdict on iran tomorrow. a new strategy as allies urge restraint. ♪ betty: it did feel like restraint in the equity markets. we saw it touched slightly lower. that is raising questions about whether markets are vulnerable to a sharp pullback. , whichook at g #btv 1138 shows you the brett -- breadth of the market. it is the equal weighted indexes in the blue and white lines. that evens out the in -- influence on the index. you can see the breadth of the market. falling, hashis is fallen consistently and emerged with europe. it looks like a rally we see in europe, much healthier than here in the u.s.. which goes to the point many people say. which is, we are richly valued and are due for a correction. yvonne: we are seeing a freeze in this melt of stocks in wall street today. it is no surprise, given the euphoria we have seen today. the big story was the banks. betty: it was the banks. we will talk about jpmorgan and citigroup in a moment. let's see where the indexes closed. the s&p flirting with records, down 0.2%. the dow losing 32 points. ground,iving up some down 0.2%. setting up for a slightly softer open in asia. yvonne: we just saw fresh, new 10 year highs in the asian pacific index. we are starting friday on a positive note, at least for new zealand. shares of 0.1% on the nzx 50. the kiwi rising a fourth day. this coalition announcement, supposedly imminent. australia, as well. we have china trade. 25 for the aussie, not going anywhere ahead of those numbers. 78 for crude, below the $51 level. we are waiting for the open in korea and japan. a fresh high for the nikkei 225, up 0.33%. there were tremors in north korea. that hold us back after south korea confirmed it was in fact a natural earthquake. something to keep in mind after reports south korea was said to be readying to fire scud missiles. looking ahead to singapore gdp, that will happen in about an hour's time and policy decision from the mes. >> the international monetary fund is warning global recovery is by no means complete. citing the poet shelley, christine lagarde said there is a degree of harmony in growth, but expectations are limited by lack of reform and disruption from technology. she added the general pickup and trade is good, but rising protectionism means clouds are on the horizon. >> far too many people across all types of economies are seeing restorations limited by the impact of technology and excessive income inequality. political is growing tensions in many places and increased skepticism about the benefits of globalization. >> sporadic violence erupted in barcelona as supporters and opponents of independence clashed. madrid prepared to use measures to prevent a breakaway. with marked national day rajoy, saying he could take control of catalonia under the constitution. progress toward negotiations on trade. the pound fell at an impasse. tariffs on grid -- on goods between them two sides and regulations imposed on business. inflation unexpectedly slowed in september, potentially reviving calls for an interest rate cut to spur flagging growth. median estimate in a bloomberg survey. it raises questions about the rba -- r.b.i.'s forecast. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. summers.ica this is bloomberg. we have been keeping our eye on how the banking shares have done, and the bank earnings. jpmorgan and citigroup kicking things off. bottom line,the which would normally spell good news. there were big concerns within these bank earnings, in particular on the consumer front. delinquency seems to be on the rise. that has some concern to there is risk out there we have not priced in. yvonne: it was not all that bad if you look at the other factors the lenders were managing expectations well, meeting what we saw in actual numbers. the question is, is this the buy, boom or sell? betty: we have seen that pattern before. let's bring in allison williams with more in the earnings we saw. what did you make of jpmorgan in citigroup? was cars. focus today keep in mind, these are the two biggest lenders, in terms of their overall portfolio. much bigger share of their portfolio tomorrow. the key concern was the reserve building. we are not necessarily seeing it in the charge-off rate. jpmorgan took a reserve, saying they feel like credit is going to normalize, perhaps at the higher end for next year. as citigroup there were a couple things. first, they took reserve related to the car business. they had been talking about seeing revenue growth in their branded car business, as opposed to private label products. that did not materialize. that seems the more worrisome trend. the other things they talked about with more trans actors -- sactors, funding them at a higher cost. betty: we show you the credit card delinquencies on the rise. that, what is going on here? alison: part of it is the normal cycle. rising fromd, we're a low level. the loan on the book, it takes a while for it to ramp up over time. but overall, the picture for the consumer is looking good and you need to think about this in the context of the overall portfolio, especially when you think about the broader banking system. it does tend to be the first to pick up. so it is not surprising. when you look at the overall credit cost for these banks, coming in very similar to expectations. we do have a noise in the for the reserves hurricane, the accounting thing it jpmorgan. will look to next quarter and see what the continuation of the trend will be. macro,i want to talk what will drive the share prices of these? --organ and jamie time and jamie dimon talking tax reform. alison: i think that is the biggest bull case you can make for the bank. jamie dimon has been extremely vocal. he has been consistent about that and it is not just the the indirects, but impact, to the bank's bottom line. it can stimulate the u.s. economy, and what it can do for corporations. to loan growth and positive effects on the economy, overall. yvonne: in terms of the cost, how did they fare? it seemsand positive effects one economy, overall. citi is using the old playbook and cutting costs. alison: that was a good part of the story. keep in mind that is where investors have been focusing on. we are getting to a more uncertain revenue environment. citigroup did well on cost, better than expected. as did jpmorgan. not talkwhich we did about, tends to be volatile. actually coming in dead on in terms of fixed income trading business. it is important strategically for them. they are trying to move up the lead table. all in all, credit a little weaker. a lot of focus has been on cars. but we are seeing strong credit in the mortgage business, relief in areas of the commercial business. on bitcoin we know jamie dimon drew a line in the sand about how he thinks it is fraud. may it hurt jpmorgan because they cannot get into business related to bitcoin? alison: jamie has been very consistent, talking about how he does not necessarily believe in bitcoin. but they have embraced blockchain technology. they have done things with ether, another blockchain out there. banks are using a lot of blockchain technology. not necessarily public blockchains, but private ones. private technology, making use of that. yvonne: interesting to see, dials back on the rhetoric after he said it was fraud. goldman, bank of america and wells fargo reporting in the next week. what will you be watching out for the most for these three? alison: bank of america, we will see how their trading will do. wells fargo, the big story there. the biggest potential to put something behind them is the legal situation. we had a scandal going on for a while. they are get signs moving past about that would be a positive for the bank. if we get more signs of weakness, that is not good. and there are the mortgage backed securities issues with of the doj. last quarter in terms of estimated possible losses beyond what they reserved for, if they can get behind them, that would be positive. those are two key things we are watching. can they get the scandal behind them? for somemerica costs, of the same reasons i mentioned, also looking at the capital ratios. citigroup, we saw a step up in capital returns. bank of america also putting theirs to work. yvonne: allison williams -- alison williams, thank you. still expecting preliminary earnings from samsung. also, i look at the company's fight for suppliers with apple. issuingresident trump executive order on health care, interviews for the next fed chair, and announcing his decision on iran. this is bloomberg. ♪ yvonne: this is "daybreak asia," i am yvonne man in hong kong. betty: i am betty liu in new york. president trump expected to give his verdict on iran, having waited new strategy to curb its nuclear ambitions. greg, this has been anticipated for quite some time. what is president trump expected to say about iran? is he expected to decertify the deal? >> we do not know. the administration has cap this decision close to their chest. he has been saying for weeks that decision has been made, we just do not know what it is. their options, including decertifying the deal. he can ask congress to impose new sanctions or other laws to enforce the deal. we will find that out tomorrow at 12:45 washington time. betty: what if he does kick the can to congress? what does that mean? greg: it gives congress a couple options. congress does not necessarily have to act if he does decertify the deal. it could just do nothing, in which case, lifted sanctions remain lifted and for all intents and purposes, the deal remains. he could reimpose the old sanctions, which would effectively end the iran deal. or they could take a third option, potentially imposing sanctions on the outside. we do not know what the administration has decided come but we will find out tomorrow. yvonne: we have been talking about that unusual dress briefing. tillerson.rex what are the washington watchers saying about this? greg: it was a surprise for everyone to see john kelly come out. he mixed in humor but addressed pretty straightforward, he is not frustrated, not going to quit. not frustrated enough to quit. as far as he knows, he would not be fired today or tomorrow. he actually made a joke. he made it clear he is not trying to control the president. there are reports he is trying to limit access to him. he addressed to those reports had on, reports he was so frustrated he would be quitting. that is why he went to the brief with reporters today. yvonne: an unusual press briefing. health care was interesting. trump signed an executive order to undo obamacare. haveare saying, if you fewer benefits, the healthier customers are going to that the markets. you think trump is trying to sabotage the market? certainly heard trump say a lot, to talk a lot about the disaster that is obamacare. if what some are warning as a result of this order, it would turn obamacare into a disaster. it would cause premiums to search for those in the marketplace. we do not know that would happen, but there have been those warnings. thisrats are clear, that is actual sabotage of the obamacare law. trump is frustrated with the republican-led congress for not being able to do anything on obamacare after campaigning about it, after it was central to his campaign. now he can come out and show, i am doing something. but that could end up being sabotage of his critics are correct. betty: something else kelly said behind the podium was, he give us more details about the process to take the next fed chair. tell us what he said. the white house has been holding meetings with potential fed chairs. it is led to speculation the decision could be coming soon. kelly said, we have more interviews to do. it is starting to look like this decision could be several weeks away. the white house has more interviews. i would not be looking for decision tomorrow. greg sullivan, thank you. had taylor and kevin warsh meetings with the president this week. president trump will make a decision about iran friday. beckett have ramifications for business, particularly the oil market. let's bring in ramy inocencio. >> big question is whether decertification leads to sanctions and whether sanctions will impact the oil price. 3088, the yellow line is what i want you to look at. this is the output of iranian oil. we see this bump in the early part of 2016, when the sanctions were lifted. output of 3.8 million barrels a day right now. you can see when those were put in place in 2011 in the fall. as for the blue and purple line, those are brent and wti. a barrel, a low scraping since the start of 2016. 3742.head into g #btv production,ian oil the taller bars, versus the exports, the lower bars. looking at 2016 we can see exports were coming in about half of what production was. we see this bump up. forecast saying it may stay above or consistent through the year 2019. if sanctions do hit iran, where will this head? what countries will that be affecting? for asian pacific viewers, could that affect china? i bring this up because it is so interesting. in6 to 2017, iranian oil, white, is on the rise. the red bar chart is saudi arabia. you can see they are almost and 3.4 million versus 3.6 5 million barrels. the u.s. itself is not taken in iranian oil in decades. but it could be leveraged the u.s. wants to apply the european and asian countries. will it have clout with china? not sure. because it is the weekend, i have to get you through two days. let's go to opec . a great function for subscribers. up 3%.en, iraq come iran, 11%. making up 50% of opec. lookis why we have to ahead to friday when donald trump talks about whether he will certify or decertify iran with the nuclear trade agreement. those are your terminal charts, back to you. yvonne: comments coming from kobe steel on new local reports saying they have falsified data on steel produced overseas. we see the products global lock -- beyond aluminum, copper and iron ore powder. the company says yes, this report is true. they admit appropriate actions and are holding a press briefing in tokyo this friday evening. every almost feels like day there is a new product. how many products do they have? it is incredible what is happening with kobe steel. very important, the president hearing from the president, to hold everything in tokyo friday evening. when the stock markets are all closed, to really come clean on what is going on at kobe steel. yvonne: certainly want to hear from him. and more information on the supports engine drives in automobiles and to strengthen tires. we will follow this story on the headlines on kobe steel. this is bloomberg. ♪ yvonne: want to recap the lines from kobe steel. a spokeswoman confirming the nikkei report this morning on falsified steel wire data. this scandal widening the lot -- beyond aluminum, copper, and iron ore. you see the stock tank, 40% drop in the first two days. we ease off at the barely some recovery, up 0.5%. kob a nikkei report saying e's falsified products shipped to overseas companies. this has gone more global as we speak. many companies saying they're looking ahead to the impact on their vehicles. this is bloomberg. ♪ yvonne: happy friday, it is 7:30 a.m. friday in hong kong. a breeze this morning. keep in mind is also friday the 13th. betty: a little spooky, i guess. i will say that tomorrow, friday the 13th. nothing spooky about today. it was nice today. 7:30 p.m. thursday in new york, where markets closed lower. bank earnings beginning. i am betty liu in new york yvonne: i am yvonne man in hong kong. you are watching "daybreak asia ." trump has taken matters into his own hands after republicans failed to repeal obamacare. he signed an executive order that could erode parts of the affordable care act. his move comes after he was unable to rally republicans in congress. critics saying allowing cheaper plans of fewer benefits for healthier customers could jeopardize the rest of the system. citigroup kicked off bank earnings season, showing muted earnings and concerns about consumer credit. 27% and 16% at city. while both beat expectations on the bottom line, shares fell after they boosted reserves for bad consumer credit by the most in more than four years. the kobe steel scandal is back in the headlines, what the company sang and may have falsified more quality data, this time on steel wire. shares of lost more than one third of their value this week. it is affected one of the most h allowed images of japan, their bullet trains. into -- about the road rohingya crisis. lender announced a $2 million credit line based on plans to tackle inflation and government spending. they have described attacks on muslims lender as ethnic cleans. and they said the organization has to act. the trump administration accusing the u.n. cultural organization bias against israel. and sayounded unesco, the decision to leave was not taken lightly. providing $70 million a year back in 2011, when they allowed palestine as a member. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. ♪ samsung's preliminary third-quarter results are crossing our bloomberg. the big headline to watch is operating profit coming above what analyst's estimated, 14.5 trillion won. likely powered by the rising revenue, rising cost of the memory chip business. we will watch results on the oled and mobile phone side. that 62one sales trillion won. it is fascinating. despite the family troubles that samsung, jay y. lee's first day of his appeal hearing, the stock has gone up 52% so far this year. still continued its rally, despite all these troubles. since 1975.highest take a look at the growth and the revenue. the top line up 30%. that was in line with estimates. 138%perating profit, growth over a year ago. the chips business, we will see how the others fared. offsetting the weakness we have seen with oled prices. we will see how samsung h-shares kobe reacting at the korean open. let's see sophie kamaruddin. plenty more on the radar on this friday the 13th. we have are aversion and asian stocks to let 10 year highs. numbers couldg's feed into the south korean share market. take a look at futures. if we are seeing budget for we arets for the kospi, a mixed mood when it comes to the asian session. we have the key data. plus, investors waking up to concerns over tremors at it north korean nuclear site. it was an earthquake, not a test. investors may also be hesitant to buy dollars aggressively. betty: we are waiting for that clarity. maybe it will be coming out the end of this month. treasury yields are not budging because the market is pricing in a more red jewel fed tightening path. sophie: that has flattened out the yield curve. even if the fed is winding down its balance sheet, you see strong appetite for more data. that has narrowed the spread between the five and 30 year bond yield to the lowest since 2007. the prospect of more fed tightening could see singapore move in that direction. we are waiting on their policy stance update at the top of the hour. keep in mind, they have been easing since 2015 to help boost to the economy. up, unevenas picked price pressures may give them room to hold off tightening just yet. we are not seeing expectation for a policy change. the monetaryind, policy in singapore has surprised before. we are awaiting gdp figures for the third quarter. yvonne: everyone is thinking april now. the recovery in singapore, the growth factor, of course you have global trade tailwinds, overall. but it is not balanced. well.evels are rising, as gdp numbers coming out from singapore. let's discuss samsung's earnings. breakdown getting a in terms of the business side of things for samsung, but what do you think really drove this record profit for the third quarter? ian: everyone loves to focus on samsung's trial. it is a really big business. what is going on here is the chip business. samsung is the world's second-largest chipmaker. the largest maker of memory chips. could not be better in terms of the memory chip market right now. more than enough supply and demand. the same with oled displays. of the mobile phone market is moving toward. samsung is only game in town for that display you want. yvonne: we have been talking about the super cycle in memory chip prices. how long do we stay in the sweet spot? we have seen this run-up quite a bit. not to mention this toshiba development. how has that changed the game for samsung? ian: very good question. if you look back historically, there has never been a rally that the manufacturers have not managed to destroy. why would this time be any different? why would this last longer than anything else? the answer you get is, the technology is so difficult and expensive to put in place. we cannot afford to put out these factories that swamp the market with supply. soand is from so whether -- many areas, it is not just pcs and phones. your fridge, your car is using memory. it is a more balanced market, is what they argue. betty: they are talking about the phones. 8, how are those sales expected to fare, especially in anticipation of the iphone x? you are right to focus on this. but the story about samsung and apple is what has been going on in china. they have been growing, the largest two suppliers and biggest rivals. but the story in the phone market is how quickly those supposedly second-tier producers in china have been growing in taking overall market share. particularly in china, the world's largest market. when we get the breakdown from samsung, we see how well they have done relative to the china opposition. before we go, we are talking about the stock price a moment ago, and how much it has risen. seems nothing is stopping it. for this half of the year, it is about the recovery of samsung from the phone debacle. what will drive the stock price going further? is it getting to appoint where it is -- is a getting to a point where it is peakign? ian: the question is turning from overall market growth to profitability. we will more from samsung interns of its spending plan. being the best in chips and screens, putting new, high-end phones, does not come cheap. it is a really expensive thing. according to analysis i have read, what people will be looking for, can samsung ila profitability to go with top-end growth we have seen? betty: thank you so much, ian king. you can get a roundup of that story just breaking and everything else you need to know to get your day going in today's edition of daybreak. onscribers go to dayb your terminal. it is available on mobile. customize your settings to get news on your terminal. on industries and assets you care about. this is bloomberg. ♪ ♪ we are counting down to asia's first major market open this morning. we are watching korea futures. samsung reporting their preliminary third-quarter results, beating estimates on operating profit, helped by their rising memory chip business. this is "daybreak asia," i am betty liu in new york. yvonne: i am yvonne man in hong kong. a study that increasing the tax burden on the rich would boosted the quality in developed nations. president trump seeks to cut the top rate of u.s. income tax. ben, what is at the core of this agreement? >> as you said come on imf paper argues that developed countries can redistribute income by taxing the rich more, which seems obvious. that they say countries can do this without sacrificing economic growth. that removes one of the most common arguments against redistributive tax policy, which is that it would slow growth. the imf paper did not mention specific countries. it was a summary of the fund's latest thinking on fiscal policy. but it did come out in washington on the date trump is about to go on the campaign trail to promote his landmark tax reform. clearly, there are people in the administration that side as criticism of the u.s., and they fired back. yvonne: what we have heard from the imf for decades is this white house, washington consensus, how other economies should be running their countries the way the americans have. advocating higher taxes for the rich, is this a change of heart from the imf? ben: it is not the type of policy people associate with the imf. redistributive tax policy is associated with the left, and imf is not popular with the left, to put it mildly. i think the imf thinking on issues has been changing in recent years. be, as people in asia know well, they were strongly opposed the capital controls. -- rode back austerity, based on calculations that turned out to be wrong. we are seeing a change in the imf thinking about a lot of economic issues. that is bringing them closer in line with some governments. but it is not the case with of the trump administration. not at all. in the past we have seen protests against the imf. what are the risks for the imf getting into a public dispute with the u.s., its biggest shareholder? ben: i do not think there are any immediate risks to the future of the imf. that said, we know the trump administration has a very different view of multilateral institutions than past u.s. governments have done. he called the nato organization obsolete and announced withdrawing from unesco. support for these organizations which were largely guided by the u.s. for 60 to 70 years is not there anymore. the imf and world bank and other institutions probably feel they need to tread carefully with this american government. betty: absolutely, a fine line there. thank you. also at those meetings was kathleen hays, our policy editor in washington for these talks. as they just mentioned, christine lagarde was talking about a lot of issues, including tax reform. she also mentioned the global recovery and inequality. kathleen: every year at these annual meetings of the imf, they do a comprehensive report on the state of the entire world. year, the theme, the sun is starting to shine, but there are clouds of inequality. what should be done? imf is warning about growing debt around the world. particularly in big, developed nations. becomesn that direction a threat, not just for those that are tightening, but for other countries that could be affected. conference, at the peterson institute, so many people come to town. these think tanks and the like hold their own conferences. brainard, mario draghi, a heavyweight panel. they talk about inflation strategy, quantitative easing. aboutis a question raised a different type of inflation target, maybe no inflation target at all. a concern among the fed officials, maybe the policy is contributing by lowering expectations. g #btv 9351. chicagoevans from raises this concern as well. look how inflation expectations are following. the fed is concerned because they set this target and want to raise rates potentially. that will make people think we will never get to 2%. lael brainard explored this topic and looked at the notion. frameworkk with this is that the public may start to doubt the central bank is committed to return inflation to 2%. there is also the possibility that given the large confidence intervals around inflation forecast, the risks of an undesired uber shooting of inflation is not trivial. draghi repeated what ecb officials were first saying off the record, making a clear point. they are not going to move away from even negative interest rates, until well after their bond buying program has ended. an important signal. even if they have less bonds, they will keep low rates in place, as well. on to theant to move interview divot the governor of the state think of pakistan. what concern does he bring to the table for his country? kathleen: a different set of concerns. pakistan's favor is a healthy rate of growth. 697.s look at g #btv the pakistanis have a growth rate target of 6%. i may have given you the wrong number. important --g #btv 967. this is one reason he is so confident about growth in pakistan. one of the big topics you have to ask about him, what is your current account deficit? it doubled in july and august. he called it the elephant in the room, even with strong growth. one problem is, exports have started to fall. one thing important about him, he just became the central bank's governor in july. it was a falling out between the ministry of finance, the government and central-bank about the drop in exchange rate, which was viewed as evaluation. following that, he got his office. intervene onwill the exchange rate, as required, and talked about the required conditions he is talking about. >> is a going to jeopardize growth? that is something we do not want to happen. we are also saying, will we manage our current income deficit without jeopardizing growth? that is the challenge we are facing, the equation we are working on. objectives, you must continue to have a decent foreign-exchange reserve, and we must not jeopardize our experts. that is the in between we are trying to make. ofhleen: the central bank pakistan has hold its interest rate trading for some time. he mentioned inflation is just below 4% at 3.9%. he sees no rate hike ahead -- or rate changes in the fiscal year. short time in office, clearly a man who is well into this new role, seems to be very much on top of it. yvonne: kathleen hays, thank you. this is bloomberg. ♪ betty: good morning, this is "daybreak asia." i am betty liu in new york area yvonne: and i am yvonne man in hong kong. reports of another possible cyber attack. shares fell more than 2% on the news. a website said an independent security analyst saw the removed page had been altered to trick users into installing malware. has temporarily suspended its contract with equifax over the latest revelations. betty: fast retailing sees overseas sales topping domestics for the first time. the biggest rise in annual earnings in more than a decade driven by a near doubling of operating profit at uniqlo stores outside japan. they have been increasing their footprint outside the globe as the population languishes in ages in japan. yvonne: a business owned by kushner companies on track to lose $24 million this year. it is the worst performance since the 2011 refinancing. morganss a $1.2 billion -- mortgage. the building, currently 30% vacant. 13th, i notice friday the so maybe it is spookier. i saw the numbers for the hotel, 666. not the best investment out there. bought this building for a whopping $1.2 billion right before the financial crisis. it has been losing money since then. vanity fair just wrote an article a few hours ago calling realer the world's worst estate developer. that has to hurt in the trump family. yvonne: in asia we would say it 666 onfeng shui to have your building. this building, controversial from the start. betty: we will see. there are certainly going to be people coming in to buy. we have heard russian and chinese investors may be buying up this building. yvonne: on the next hour, kobe steel. we talk about china trade. an economist joins us for a preview of today's trade data in upcoming congress -- communist party congress. betty: and an interview to discuss chinese listings in new york. this is bloomberg. ♪ ♪ >> it is 8 a.m. here in hong kong and we're live from bloomberg's asian headquarters. i am yvonne man, welcome to daybreak asia. the top stories this friday, estimates in the third quarter for companies and memberships for this company helps to bring in $55 billion. the kobe steel scandal strikes again, substandard parts were found and the company admit that more data was faked. >> i am betty lou here in new york where it is just after eight p.m. on a thursday, we are hearing that the global economy is limited by a lack of reform in technology. the nasdaq turns its attention on asia hoping to upset up list.nese companies to . ♪ >> eric, breaking news. singapore's third-quarter gdp the, sorry coming out robust, bidding the estimates big-time. the effort was -- the estimate was reporting 8% so quite a sizable jump from what we've all for 2.9% in the second quarter. we are seeing 6.3% growth. a lot of this has come down to this global recovery, this global demand and export growth which they were very dependent on their weird we are also seeing signs on the domestic side of things improving as well. >> we also getting headlines from the monetary authority of the or who say that they have left their policy unchanged, keeping their zero policy stance and maintaining the with an structure of the currency. pretty much all of the economists had expected no tightening here from the mas, but you never know. there was a time just about a year ago yvonne, where they didn't surprise us with our tightening, so there was some trepidation that we might see that this morning. >> yes, we have learned from the mas -- for the last two policy meetings we have heard the language of this, they wanted to give it a neutral stance for an extended curate of time, and more and more economists are saying that that will dropped, that language will be dropped in the next meeting in april. we continue to watch this one, but yes, pretty decent number coming up from the singapore. markets opening now with sophie kamaruddin. >> are starting off with the sing dollar, we did get a pop as the data came out but it is now coming back off of the earlier rise. the same dollar is expected to be affected for a third straight session. we are waiting to see what the forward looking language may be from the monetary authority of our because of that could not return to tightening as soon as april. this was the backdrop of what the fed may do. so, that is that sing dollar there. let us check out the wider market action, that equity space -- we have gains for sydney and also tokyo but the kospi is fighting a .10% drop, coming off the record close that we saw on sunday, but keep in mind, the asian stocks are elevated. sticking around decade highest. the cost they shoot from the u.s. maybe transmitting into this session. we just had the dollar snapping a four-day rally, treasury we -- it is set to snap a four-week rally rather, and take a look what is going on in the currency. .10% rate gaining a hike, the sing dollar you can see now, swinging to a loss of 13532 -- singing to a loss. >> coming through from the mas, they are dropping the reference to the neutral stance where they needed to keep easing for an extended. time frame. we are seeing a hawkish view coming out from the central bank of singapore. there are awaiting the fed's decision from december and waiting to see how this could actually affect the singapore market. >> we are seeing that reaction in the sing dollar right now, our dropping a 10th of a percentage. >> thank you, sophie. first things first, that is get the first word news with jessica summers. >> ivanka, that international monetary fund is warning that global recovery is a no means complete, christine lagarde saying -- the degree of harmony in global growth, is there but expectations are being limited by a lack of reforms and obstructions from you technology. she added that pickup in trade is good that there may be problems on the horizon. >> far too many people across all types of economies are seeing there as rations limited by the impact of technologies and the repercussions of accepting -- excessive income inequality. the result is growing economic tensions in other places and increased skepticism about the benefits of globalization. >> surrounded violence directed in barcelona as opponents and supporters of the catalan independence clash. the regional government has until monday to make it decision on the referendum clear. spain marked the national day with the prime minister are hinting that he could take control of catalonia under the constitution. want upst brexit talks in brussels with the eu side saying that there is still not enough progress to move forward on negotiations on trade. the pound fell on the impasse with traders concerned that the deadlock could see the people finish of talks in europe without a deal. there are new regulatory complications imposed on business. j.p. morgan and chase citigroup kicks off that bank earnings season showing the effects of muted trading and concerns about consumer credit. low volatility weight all fixed income trading for a second water dropping come assistant percent at city. both beat expectations on the bottom line but shares now after the reduced concern on consumer credit. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers, this is bloomberg. . >> jessica, thank you. take a look at showers right now, down about .1% at the open after preliminary earnings topped estimates. profit came in at nearly $12 billion, because of the demand for microchips. let us talk to our guest, she has the latest on this, very good results coming out. you are seeing the shares with possibly a little bit more traffic taken from shareholders, how sustainable are these are new groups -- are these earnings for some sense. prices, the very strong and guidance from other companies including naquin in the u.s., we are seeing the current change in memory prices could sustain at least until sometime next year. i think the consensus is forecasting even better earnings in the fourth quarter and he itl see some profit -- reflects that the market has priced in a strong trend in memory prices. >> we certainly have seen that. in terms of other business side of things for samsung, the chip side is still quite robust and resilient, but in terms of the mobile business? >> the mobile site is definitely better than last year, the new phone is gotten quite good reviews. having said that, we know that component prices have surged a lot so in terms of operating margins, for the headset business it is likely to be. not be any better we know that apple has launched their 10th anniversary iphones. so the competition will be intense and the fourth quarter. for the galaxy s8, i believe about 40 million shipments this year in line with guidance, and -- >> it is not just the apple iphone, it is also the chinese competitors we have to watch out for. what should we look for when samsung announces their results a few weeks later? >> i believe the key focus will be how much they will pay in and whetheridends next three-year plan for shareholder return policy. note that even though they have very robust earnings and strong cash inflows, they have committed a lot and there could be a chance that they would cut and on the share buybacks hopefully that would not lay -- not lead to too much disappointment. >> thank you. the bloomberg intelligence analyst there on some son. looking ahead, -- bloomberg intelligence analyst on samsung. dear going to wrap up the latest japanese retail reports later this hour. >> and up next, september trade zumbers, we speak to the am guest on what he sees an adjustment later this year. this is bloomberg. ♪ ♪ this is daybreak asia, am yvonne man in hong kong and then they year in hong kong. >> your the check on china's economy with trade daddy -- trade numbers expected to soft and in september. economies surface by bloomberg, one of them says exports will likely stay strong but it will be is cyclical downward adjustment in the fourth quarter owing to smart phone sales. economies surface byjoining us z chief china economist, you say that this is a cyclical situation there? that the bank yes, -- yes, i believe that september numbers should be stronger we have hijacked the that chinese trade numbers have strong ties with the electronic cycle. so the boom and bust of the electronic cycle basically drives below export numbers especially headline growth. given the fact that new smartphones have already been launched and in the fourth quarter, i see we will -- i see some softening of the headline figures in the next few months. >> ok, what does that mean that for the chinese authorities on the currency. pretty you think the currency is headed given that? fact, we have seen a decoupling between the exchange rate policy and the chinese trade figures. i believe a lot of people are still expecting any softening of the trade numbers and the chinese government may want to boost the export. i think that is old thinking. in the current situation, we believe that the yuan stability rules everything, and basically what the authorities like to do is keep everything stable. especially with the 19th party congress had. we also know that there will be a meeting between donald trump and president xi jinping in november, and if that is the case, i believe the authorities will try to maintain a stable environment before the meeting. -- mentioned yvonne: wheels seeing china move up -- we have seen china move up the value chain with products a bit more high-quality. along the way, it is harder for a lot of suppliers and customers to really drop and jump ship from china as well. do they even have a threshold level now for the -- leading up to the party congress? guest: if you look at the tension policy right now in china -- the extension policy right now in china, it is market event. likes to look at the research and development, it is tied to the global movement on the dollar. is from thehat basic fundamental side that the chinese economy looks strong this year, and there is no reason for us to affect a massive depreciation of the exchange rate. >> the export picture as well has been quite strong, raymond. we have not heard of any trade war that could are between u.s. and china, those tensions have eased a little bit but we cannot will out any potential flareups as well. this u.s. probe into china's ip practices, we heard from some chinese congress officials saying that that could actually be a sticking point on whether we see the trade tensions escalate. do you agree with that? > of course we need to work on any trade tensions between china and the rest of the world especially the u.s. of we also know that china is going through a structural transformation. i believe the authorities would like to see how china should compete with the rest of the world, not by price, not by exporting cheaper product, but by improving the value and quality of the products that they shift to the rest of the west, especially to the u.s.. of course, that will require effort to improve the productivity and innovative can city of the economy, but this is the overall policy of the chinese government, so i believe some of the tensions between the u.s. and china will have to be addressed, but the long-term competitiveness depends very much on how china agrees to improve the industrial competitiveness of the economy. betty: speaking of improving things, raymond, we heard the governor jay powell, who is in the contention for fed chair, he talked about the worry that he had on china's corporate indebtedness. i have a chart here that shows you how much it has grown here, g #btv 3276. araiza we have seen in the blue bar of how much corporate debt has risen as a percentage of the in china. he is weighing in on this, and we've heard that for a long time china has been bearing in on this. is it going to spiral out of control and at what point does the chinese government really address these concerns? guest: of course, the critical issue is whether the chinese government has the ability to control the tax flow. from our observation in the past few quarters, the very strong determination on the economy that is affected by looking at the growth rate of the debt flows in the past few orders. our estimation, two or three debts to gdphese ratios will reach a different state meaning that they will -- meaning that deleveraging efforts will basically work and if that is the debts to gdp case, even though we need to still keep an eye on the growth numbers, it is not a time bomb as many of the china -- as is expected. we have seen some that controlling the economy. >> raymond, how significant is it that you have said official. forget the money managers, they are always trying to talk up their books, but how significant is it having a fed officials brief these concerns? course, we still need to keep an eye on the debt, but overall, as long as the economy continues to grow and deflation is a critical issue as well. our expectation is that china has already addressed the problem of inflation meaning that the nominal gdp will continue to expand as long as china's government keeps control of -- or cap the growth of the debt. eventually the depth to gdp ratio will no longer be a comes turn. i think the more fundamental issue is how china positions it self in the global economy given the rise of the economy is already the second largest in the world. that requires a bit of effort for china to reposition the economy, not by only exporting and relying on exports to boost the economy, but obviously, they still need to address how they can also aim for a sustainable growth. a boosting of the productivity of the economy as well and the must consumption. >> do you think that president xi jinping will address this at the party congress number raymond? what do you anticipate at the big event next week, when it comes to trade and globalization? the 19this term of party congress will surpass 2020, which has been a critical year for china to achieve what they call a derrek lee perspective society. i think what the government still eased to think about is what china should be beyond 2020. it is very possible that the president will talk about the long-term vision of the country development, -- the country check development, and might as well -- the country's development. will the country rely on a gdp growth by doubling or tripling or quadrupling the gdp growth, how the country should break the middle income trap, i think that is what the expect the president will -- will talk about during the congress. >> draymond, it has been interesting, the market reaction we had the leading up to the party congress. it has been pretty stable. in terms of the reforms that could come out of this, we have that targeted cut coming that is starting in generate. point, --y at this starting in january. will it be meaningful for us to watch this next year? >> the macro economic conditions seem to be resilient. by looking at all of the statistics like pmi and industrial protections as well as domestic consumption to some extent, this year offered a very good window for the government to focus on reform. thatore immediate issue is should china continue to use the conventional says all party to boost the economy or if they should really focus on addressing the structural issues like productivity growth, in terms of monetary policy i do not believe the pboc will ease their policy. i expect that the deleveraging will continue to be the main thing over the next few months. >> raymond, thank you so much. china chief economist, with one of the forecasts on china trade with the numbers later out today or tomorrow. we have more headlines coming up on kobe steel, ford coming out and saying that it's mondeo car of then china that use kobe steel aluminum and has not confirmed yet if their part is affected. is itay that even is affected, it does not present a safety issue to their consumers. so again, you will get customers of kobe steel coming out as they have been, talking about and clarifying what parts they have used from kobe steel and how that affects their product. nikkei news the reporting yesterday that their products were shipped to over 30 overseas companies and it seems like ford is one of them right now. derailment coming through from kobe steel and you can get a roundup of some of these stories in this edition of daybreak, you can go to dayb on your terminal. or your bloomberg up, and you can customize your settings to look at the news that you care about. we sure to check it out. this is bloomberg. ♪ ♪ >> as is daybreak asia, am yvonne man in hong kong. i am betty lou here in hong kong, here is a look at the headlines this hour. 666 5th avenue, the real estate owned by jared kushner, is on track to lose more than $20 million in value this year. it was bought at the peak of the commercial property market in new york, and the property is currently 30% vacant. yvonne: parts of it website have been pulled by equifax amid news of a new hacking. independent security analysts say that they found the removed page has been altered to trick users into installing malware. political now says the irs has temporarily suspended its contract with equifax did to that revelation. >> a $1.2 billion stake in this company up for sale. transfer of all or part of its 20% holding, they confirmed in a bloomberg report in generate morgan stanley would act as an advisor. the company is revising its strategy as domestic demand grows. data part about $11 billion in other brands last year. >> let us take a look at how markets are trading here in the asia-pacific. kobe steel rocked, more headlines here being that ford is saying that some of their parts were part of the shipments that came from kobe steel. we are seeing shares down for another day, at 7% for kobe steel right now. we are seeing the nikkei 225 pulling up a bit -- pulling back a bit from the fresh 10 year highs of that we saw yesterday. a shopping spree in japan, coming up, we talk about retail. this is bloomberg. ♪ ♪ >> it is a: 30 in singapore, have an hour from the open of trading their. and could be a pretty good friday for them. -- it is 8:30 a.m in singapore. a market for year high boosted by global trade in from the ore, but also domestic recovery. i am yvonne man in hong kong. >> quite robust there in singapore, and i am but a little in new york and you are watching daybreak asia. first word news with jessica summer. jessica: samsung profits beat estimates in the last quarter lifted by booming demand in are operatingr we income rose to almost $13 billion in the last three months and they met forecast at 55 billion. samsung is a leading maker of chips, and also posted record earnings in this quarter. singapore's monetary authority has kept its was the unchanged after the growth smashed estimates in the third quarter. of 4.6% as well ahead of the economy's estimates at around 3.8. it has prompted the mas to drop a reference to a policy stance being neutral. potentialflation reviving calls for interest rates cuts to spur flagging growth. a yearom our earlier, i weaker than expected results rising questions about the rba forecast changing prices and the first half. scandals back in the headlines with the company saying that they may have falsified more quality data these time on steel wire. kobe steel lost a third of their market value this week and there are speculations that the company may be breaking up. two rail operators say that they found substandard parts although this in there was no safety threat. president trump has taken matters into his own hands after republicans failed to repeal obamacare. he signed an executive order that could repeal -- could erode many parts of the obama care act. critics say that allowing ns to be bought by a other customers could jeopardize the system. correct jessica, thank you. let us see how the markets are shaping up so far from this morning. latest we have the update from singapore regarding its economy, it's monetary policy stance from the central bank there and we are also keeping an eye on what is going on with dollar. the rba came out with its own financial statement this morning and we are keeping a close eye as well on samsung and kobe deal. we are seeingdrop in the sink dollar, down a 10th of a percentage coming off a session low. prices were triggered by the central bank dropping its language that a neutral policy was up for it for an extended. time frame. -- eighteing a check snap in the asian currencies so far and the aussie dollar up for a second session. the rba updates came out, and we highere dollar trading urea traders may have few incentives to take up positions before u.s. retail and abi data. we have the greenback dropping with treasuries ahead of u.s. regional and inflation figures. confidence in trump tax plan showing the dollar headed for its first drop in five weeks. we will elect a check what is going on in seoul, korea and we had a drag in health stocks and health care is gaining 2%p kospi gaining .1%. let us highlight what is going on in the itc's, samsung pulling up the screen here to show you that the stock -- it is the biggest weight in kospi in terms of index points, and it is sliding despite clinching a record third quarter of profit. slide that we the are seeing for the kospi. kobe steel is among the worst performers, dropping over 7% this morning. we are seeing losses among more news stories alleging falsified data. morning, we are also hearing that some china companies used alumina from the company. thank you, sophie. >> we should also mention that the aussie dollar is sliding just a little bit, with data coming out from the rba on their financial stability review. they say that they are developing a top-down stress tests when it comes to australia banks with the overall state of the financial system and a strong position. the rba says they are seeing signs of easing in the knee and melbourne that conditions are still pretty weak, relatively speaking when it comes to brisbane. they also mentioned the household debt issues, housing remaining a core area of interest. they said that household debt relative to income since to be taking up dust seemed to be taking up as well, which could up ased to be ticking well. >> you are seeing a lot of comments on the aussie dollar from the rba. as sophie just mentioned, we are also watching very carefully the fallout from kobe's deal continuing. we hear from for saying that it mondeo car in china use the country's aluminum -- the company's aluminum part. they say that they may have also falsified more data, especially with the steel wire. our bloomberg analysts kevin have been tracking this and kevin, you mentioned that it is dragging the stock down come out what is the latest revelation hear from you wire? what is around this? well, i should preface that actually cover the automotive industry but of course the supply chain between the steelmakers and the crawl makers -- carmakers, we have been watching it very closely. what i can say about kobe steel is that they are in interest in company with a lot of niche market that they are involved in. now that we are finding out that the tempering is getting more and more whites right, you would imagine that it would easily spread -- getting more and more widespread, you would imagine that it is getting more easily spread. our companies are coming out saying that they are using the aluminum and it really aches to the way that kobe will have found a niche for it else with these aluminum part. if i could is sick about to you, nissan, honda, they all use these words in their foods and doors, so we could see a lot more carmakers beyond this. >> is any of this, for it was saying that we do use the parts what they do not present a safety issue, do we know of any safety issues related to what we are hearing from kobe's deal -- kobe steel? >> we do not know yet. somewe have heard is that of aluminum or other materials have been found to be substandard but the latest from what i've heard and in my conversation with automakers is that there have not been any problems with safeties will far. even so, they are saying that this is a serious issue and they are rushing to check it. until the checks are done, they cannot actually say anything ,bout the state, about recalls but it is certainly not some -- it is certainly something that everyone is watching for, will it require a recall. foods oft is in the cars for ford, it actually poses a safety risk for pedestrians according to one of our analysts. -- because it is in the hood of cars, it poses a safety problem. not heard of any safety concerns in yet, canon, which is good to eat, at least. this scandal really shines a light in terms of not just the quality control that we see in japan, which was the in all sectors of the economy, but also the cost involved in the race of imprisoned -- improving metals over all. all of these carmakers are moving into lighter versions of steel, and how much pressure does that put on the steel industry in japan? guest: there is a lot of pressure, different for people like kobe steel who make aluminum and those people who make steel, specialists like new . companies who focus on steel automakers need ever lighter cars while keeping costs down. so there is a real pressure across the business to make things that are better, still strong, lighter but it no extra costp so visit no logical pressure, to improve, innovate is really a question of life or death. the steelmakers, the people who specialize in steel specifically are up against a ticking clock. it may not sound like a short spun, but less than a decade is what they have left and how much thinner they can make steel in terms of keeping a strong. thinner and lighter steel, which is much cheaper, about six times cheaper than aluminum, i think that is about right, it is a competitor for aluminum. aluminum is actually the material that has been taking a lot of the share. plastics are still some way away , so there is a limit to how thin while retaining strength you can make steel because at a certain point, you cannot press it into shapes anymore. >> so, kevin, i think you raised some great points there, i do not know if it is too early to be saying this, those who make the parts, the alternatives, might we see them start to get some market share or take some market share away given this debacle? guest: that is a good question. the potential -- there are a couple of ways of looking at it. kobe steel specifically, could lose share to some other steelmakers who specialize in aluminum. , but reallyerseas it is such a specialized company and it takes a long time for carmakers who are really involved in working with these metals makers from early planning stages. they work together on a model and it takes several years to build a new model and the specific editions are put in very early. so it is much more of a collaboration. in terms of plastics, it is certainly possible that people whilethink that plastics much more expensive at this eyed as abight be better alternative to aluminum going forward. but there are issues that are more widespread than kobe steel -- it is too early to say that because it reinforced plastic is really limited to very high end cars. the price is just so much higher. >> right, but forget it right with 3-d printing, they could be printing all of these parts, right, kevin. [laughter] thank you so much, kevin. retailing is trading at really high prices in tokyo. sales topped estimates for the first time this year and fast retailing is reporting the biggest rise in annual earnings in more than a decade. storesincreased atuniglo outside japan. the retailer has been increasing in stores across the world. >> globalization and digitization have changed the way we do business. borders between different industries and countries will disappear in order to survive, we must use cutting edge technology to provide value to google,omers -- amazon, apple, alibaba and tencent are leaders in such services. fast retailing would be both cooperating and competing with them in the future. consumer analyst -- our bloomberg consumer analyst tom is here in the studio. it is not just fast retailing who are seeing that strategy of moving abroad, it is also convenient stores as well? >> yes, we are seeing for example with this company going aggressive in their overseas and othersn, looking to expand their convenience stores and other market. there are also making overseas 7&i,sitions in the u.s., and others making acquisitions in the beverage that in europe. ramp-up andnitely a expansion, and expansion, very different from what we are seeing in fast retailing and what we've heard from you and i in the past. in terms of retail though, we have seen robust numbers going in japan too, especially in china. >> we have seen departments stores, they have really tried to bring in the tourist offset, we are seeingtakshi maya dues quite well with -- they are doing quite well with some of their duty-free shops. the smaller stores outside of the big cities have done quite poorly, and we have seen seven and i -- some of them not having much of a reach with the overseas tourists. more challenging, and we are now seeing companies like takashi mya cooperating with travel agencies overseas, as well as cell phone rental companies to try to bring in and draw tourists in. >> interesting. can canadian stores continue to grow or will they have to compete now? >> can be stores can continue to -- convenience stores, can they continue to grow or will they have to compete now? >> they will continue to grow. we are seeing women shoppers who are helping the company's do very well, and because they have been so aggressive with their growth, they're having to rebound their strategy. we are seeing more refurbishment of stores, and everybody of the product mix which will probably lead to more earnings volatility as it go forward as we have seen uni lawso an -- lawson and in the third quarter. >> yes, talking about the hurdles for some of these retailers and their strategies for having internationally and opening stores there. what is the risk for that? we have seen stores opening in the u.s. but they have not done so well either? >> they have to get the location and pricing right. the other thing we are seeing with fast retailing going beyond uniqlo, they potentially run the risk of cannibalizing their business. with gu, some of their basics are starting to pull in, a higher price point visible on their basis. >> thank you. our bloomberg intelligence consumer analyst there on fast retailing. up next, nasdaq saying that it sees a big pool of chinese companies are expected to access the global market. we have an exclusive interview with the company's asia chairman next. this is bloomberg. ♪ ♪ nasdaq is stepping up its advance in asia, looking to strengthen science and offer more products to investors. joining us exclusively here in hong kong is the nasdaq senior vice president of new listings and capital markets and also the chairman of asia-pacific for nasdaq. welcome. let us talk about the overall environment receiver ipo's globally. we have seen a pickup since the fourth quarter of 26 teen but we've seen record highs and we're still dealing with low volatility. we are still seeing a low number of listings globally as well. how does nasdaq fight back? >> welcome the u.s., we are higher than last year, actually up 100% year over year. we are pleased with where we are of thestill see some markets around around growing, in terms of their ipo activity. we're very encouraged and we think of them bright line is deep and strong, and all of the world is talking about a valley of a nasdaq listing and -- the value of a nasdaq listing and what comes with it. we think we will continue to grow, and we obviously are a little bit frustrated ourselves, -- >> you cannot ignore the fact that a huge amount of money we're's ian coming out of pe, some of these startups are opting for private investment rounds, saying they do not want the pressures of being in a public life. what is the solution to that? >> one that we embarked upon a few years ago, we saw the fact that companies were staying private longer, from eight years to 11 years on average, so we put together a nasdaq private market which offers recruiting solutions for companies who choose to stay private longer. therenasdaq believe that is a lifecycle for company and we want to be involved in every asked that of the article. -- of that cycle. we also took a leadership role in a project called "finalize" which focus on a couple of different -- "revitalize" mceachern accompanies do not spend their time -- making sure that companies can focus on long-term growth. meaning that they do not get involved in the myriad of regulation, being able to minimize those in the u.s., and also the way that stocks are traded, allowing companies to choose a different method that their stock can be traded. given them better visibility into the trading of their security. there are a number of different areas including tax policy that we think as an exchange is appropriate in our roles to take leadership in. >> you said you have been doing your tour of asia, in southeast asia in indonesia and you are heading to china next to what kind of interest are you seeing coming from china so far -- coming from asia so far? past decade or so that i have been involved in listing so far, it has been all about china and we recognize that over the past couple of years, the are certainly pockets of entrepreneurial and innovative companies of out of china and we have done some hiring here in china to work with companies throughout the entire southeast asia region. whether it is as you mentioned, indonesia, or vietnam, and the poor, india -- >> we are still being asia-pacific dominate when it comes to the global ipo market, as surely with companies from china. police are regulators beat up the process of approval, and since then we have seen a robust ipo market. so, now that the key was moving on again, what does that mean for nasdaq, is that a threat to you? >> we do not look at it as a threat because my message always is that you're not here to try to convince every company and every country to come and list on nasdaq. most companies actually belong in their local markets. we are here for a small group of companies who are very strong, global brands with global aspirations who will list outside of your local market and for that -- it is way beyond tech. it is life-size is, it is fintech, education companies come in china right now, it is e-commerce. we have seen some e-commerce companies and fintech companies toward the road of ipo-ing in the u.s., currently. >> we are seeing the hong kong exchanges, a lot of exchanges are forging closer ties. do you think that is a threat for chinese startups in particular that they choose to list in hong kong versus in new york? >> know, we think that the strong companies will have global aspirations will choose to list in the u.s., and we certainly that to continue to list on nasdaq. what is interesting is that when you're talking about the hong kong stock exchange, and the number exchange in the region -- the number of exchanges in the region, nasdaq is a technology provider to a lot of exchanges. singapore stock exchange, the hong kong derivatives exchange, asx, we are actually a technology partner for those exchanges so at our core, china -- nasdaq is truly a company that performs in exchanges globally. >> we saw you wave in -- two years ago we saw a wave of chinese firms deal easting and the u.s. and relisting in china. has that changed? >> everyone chooses high valuations, whether you are a financial sponsor, you will look for a venue that gives you the highest valuations. i think there was a trend there for a while but i think the regulars in china shutdown a lot of the reverse merger activity which a lot of these companies to relist, -- to relist and we believe that in the same way, companies that get taken private in the u.s. and get taken private here, we look for the best vision and with believe that a lot of them will be list in the nasdaq. bitcoinve talked about reaching 5000 for the first time yesterday. what is the view of nasdaq when it comes to this ico's, we know that you can have the block chain technology that you use, but with this be something you are interested in? >> are always interested to read we started looking at bitcoin about five years ago and recognize that it was the underlying launching technology that was most interesting to us and would be most interesting to or othernge partners partners that we work with on the technology side as we have an enormous technology business globally. so we are focused on the block chain peace and we will continue to evaluate whether bitcoin or other cryptocurrencies should be listed on. >> these exchanges should volatility -- should be listed on these exchanges. >> should people be concerned with fraud, where is nasdaq standing on that concession? areas,e are two liquidity, mickey sure that there is enough liquidity for underlying trading to happen on exchanges, and number two, what are the regulations around it? how can everyone feel comfortable that they are inding that cryptocurrency the same way that they are trading and equity on nasdaq? we want to make sure that everyone is taking care of, that the investor is protected. >> thank you, bob. the net debt, asia-pacific chairman and senior vice president of new listings and capital market. betty, as you mentioned, we are seeing what a bit of interest in asia when it comes to list on the nasdaq, not just in tax, biotech, fintech and health care in general. >> that's right, a lot of it affecting the nasdaq. and exchanges i wanted to alert you to a great interview. rafael bostick, the fed president will be joining us next, this is bloomberg. ♪ ♪ 9:00 a.m. in hong kong. i am rishaad salamat. >> i am haidi lun in sydney. this is "bloomberg markets: asia." ♪ rishaad: samsung beating the street, topping estimates. chips $55 billion. haidi: the kobe steel scandal strikes again.

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