Is worlds 50th richest man among those detained. Betty while we are watching all of these geopolitical events, including more headlines coming out on north korea, lets focus back on the markets how investors are looking at how all these events playing into their own outlook on the u. S. And the world. I want to bring up this chart, 5080. It shows you how the threeyear and tenure spread, or the five and 30 and two and 10, i should ,ay, trying to find out represented right at the end. You can look at it several ways, or maybe specifically two ways,hich is the bill gross way which is the economy is much gloomier than perhaps with the numbers are showing some and there is not much more room to raise rates in the u. S. Despite officials say. On the other hand, others say this is not about the u. S. , the u. S. Is doing just fine, it is about the rest of the world, which is falling apart, they are all coming here to buy the safety of u. S. Treasuries, can get those yields up, they are basically two extensive right now, treasuries are, because the rest of the world still so uncertain. Yvonne certainly the case, especially with the boj, japanese investors got to look for yield elsewhere. They are heading to u. S. When it comes to treasury, china as well. We will continue to watch the yield curve. We have breaking lines coming through with earnings, as well. Quarter income, it was a miss. 822 million singapore dollars, the estimate was for 1. 1 4 billion singapore dollars. What quite a sizable miss. We will watch those headlines. Or talking about the allowances for credit and other losses, that came on came in at 815 million singapore dollars. Betty just quickly to remind of how we traded on friday in new york, we were mostly higher, driven by some pretty good numbers in the jobs market. I would not say stellar, that they continue to show improvement and a rebound from the prior report that showed the hurricane impacts. The nasdaq propelling higher, up 7 10 of 1 , and all of that. Apple fever, the iphone x. Oil prices, since we are so focused on saudi arabia, wti crude opening at about 55. 97 per barrel. Yvonne that opec deal to extend those curves seems to be premature a dent. In asiapacific, we are seeing downsizing when it comes to the nasdaq 50. We are down when it comes to stocks, 5910 for the kiwi. We saw me dollar last week eking out a weekly gain. Friday after jobs report. Lets take a look at how things are faring in australia, the asx 200 much flat right now, were seeing things trickle through. Westpac earnings, maybe a headwind, coming up on the sulfide the soft side of the forecast. Going nowhere for the currency. Japan, coming back from the holiday, we are seeing equities, could be seeing an upside of about 100 points or so today. To be a good day out of tokyo, dollaryen as President Trump reps of his to japan, leaving tomorrow morning. Betty lets get to the first word news with paul allen. Leaked documents from an offshore firm reportedly showing wilbur ross still has a stake in a shipping company with ties to a russian businessmen under u. S. Sanctions, and to president putin soninlaw. The holdings of its millions of dollars a year is 20 past for a giant Russian Energy company, whose owners include the oligarchs and president s soninlaw. Pbocs governor has renewed his warnings about the dangers of corporate debt, saying the Financial System is becoming more vulnerable. Onwrote on the banks website sunday, late in risks working and living, including some that were hidden, complex, sudden, contagious and hazardous, even as the Overall Health of the economy remains good. Authorities in texas say more than 20 people have been killed and a mass shooting at a church. Officials in Sutherland Springs south of san antonio said a man walks into the baptist service and opened fire. Law enforcement officers told the Associated Press the gunmen fled in a vehicle after the attack and was killed by either a selfinflicted wound or confrontation with police. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. President trumps First Official tour of asia is in full swing today after a sunday inated i gulf enemy in golf and a meet and greet. Emperor, the the Prime Minister and later had a state dinner. Stephen engle is joining us from tokyo. Good to see you. Golf is out of the way, it seems that the real business is happening. Stephen yesterday was more than more of an informal gathering. Be making morel serious negotiations, bilateral talks at the state guesthouse, you also meet with the emperor and empress before flying on to south korea we believe tomorrow morning. Again, he is seeking to reassure, if you will, asian partners, the asian partners are seeking reassurance from donald trump that they will continue to have a security pointed given all of the noise coming out of north korea. On the economic and financial front, donald trump has long, including on the campaign trail and this merely first year as president , has been calling for freer, more fair and reciprocal trade. Those were the comments he used at the beginning of the trip to japan. For more on that, i want to bring in our guest, the former vice minister of International Affairs at japans ministry of finance, currently president of the institute of International Want to affairs. Thank you so much for joining us. This is the easy part for Donald Trumps trip. But there are contentious issues with japan, as well, one being rightlatively weak yen now, but also some of the agricultural tariffs and trade imbalance with the United States. Where do you think they can find Common Ground . Right now, but also some of the agricultural the United States,y people are talking about ounces of trade. About the balance of trade. Many industries will have concerns, but so far we dont see any concrete quest requests at this moment. Mr. Trump is willing to Say Something not only for asia and japan, but for korea another asian countries. The people coming from the middle east in the United States, in that sense i think trump has a big concern about trade with asia. War the economic not war, but competition. Sometimes people will have more focus on the competition aspect. Now we see both sides, coordination competition. That will be established by the americans and asian countries. Stephen the Prime Minister has been a lot of Political Capital can into no donald trump. What you think the number one thing the japanese want to get from this visit . Having northare korea as mediation. Asia and security in the relations between u. S. And japan is important. Be discussed today. Stephen we have a story broadcasting this morning saying that abe will convey to trump to strengthen japans unilateral sanctions on the north, perhaps by expanding the scope of asset freezing. How much leverage to they have . We have a bigger relation with north korea in the economic sense. , and we cane room have some action. So far, i dont see any concrete information, just that the newspaper and the media says so. One of the sources are contingent on the trade front, and the 69 million trade deficit the United States has with japan is the value of the yen, it is now at 1410. Will powellow over others at the fed, that changes the outlook . The yen is moving very slowly. I dont think it is appropriate, but it would be comfortable for the members who are concerned. Bethe chairman were to taylor, the market would expect a quick rise of Interest Rates. Think more depreciation of the yen or dollar. I dont think it is going to change that much under mr. Powell. I dont think there will be any big changes in the short run. Stephen the yen will not be a contentious issue for donald trump, it will be around 170 . 117 . There is a big depreciation down to 125, i think that he would Say Something about the Foreign Exchange rate. Now that we are in postelection with shinzo abe having more of a mandate, we Monetary Policy, but perhaps the boj will clarify its exit strategy, whatever that might be, ahead of the replacement for the end of kurodas term. The euro is falling, and japan is lagging behind. Hink the timing [indiscernible] have to show some idea of will be coming. Before ae a long time negative Interest Rate. Stephen last question, as shinzo abe puts ford in his cabinet, the new asked budget, probably to pay for some of these social issues in japan he campaigned on, he also longerterm down the road once to change the constitution, wants to bolster the selfdefense forces. What is the appetite in japan for the added cost and risk of a strengthened and a larger military . I think most of the japanese people, they are not that enthusiastic about being a military power. Course, it is important to keep the peace, but so far, in there is the, missile base. The Growth Strategy is not complete yet. I think he will have more effort on realizing the. Realizing that. Stephen thank you much for your time. , more fullday coverage of Donald TrumpsFirst Official day if you want to call it that, here in japan today. Haidi thank you so much yvonne thank you so much. A great interview. We will continue discussing president comes President Trumps asia trip throughout the day. Next hour, equity strategists join us. Yvonne later on, special coverage of Bloomberg Markets of President Trump and shinzo abes joint press conference, that starts at 1 00 p. M. Hong kong time. This is bloomberg. That is right now a live shot of the sydney harbour, a great day to start the morning. Asx barelye s p budging at the moment. This is daybreak asia, i am betty liu in new york. Yvonne and i am yvonne man in hong kong. A crackdown barely budging at the moment. This in saudi arabia over the weekend. The crown prince had several people arrested, including one of the richest men in the world. It puts the crown prince on the cusp of the saudi throne at the age of 32. , hehe phone is tom petri has advised that the kingdom on its natural gas initiative. Thank you so much for joining us. Is this really about anticorruption or is it all political play . Tom i think what it really represents is a bold set of moves to consolidate power. Sense,s a little in that but it really gives a new meaning to the word printed preemptive action in saudi arabia. In the past, cautious building of a consensus has been the style, and this is anything but that. This is a very important move thecrown prince following dispatch of the last crown prince. It does represent, i think, concerns that there is limited time to make a lot of fairly radical changes, and there is obviously some undershirt, some pushback that he feels has to be dealt with. You can make the argument of removing the National Guard, the minister, as a power grab, white target white target prince all week alwaleed . Tom we will have to see how this plays out. That is a good question. My guess is because of the success of prince al will lead alwaleed, there is some symbolism in including him, i figured becomes a message to everybody else in the royal family that he is serious about wanting support on the programs he is putting forth. No better way than to surprise people with this kind of a roundup, if you will. Does this give pause when it comes to Foreign Investors and saudi arabia at the moment . Tom it might. I would say the real key here is going to be clear evidence that he successfully has consolidated power, and if he does that and there are not too many other surprises that come down, i dont know it will be that detrimental. In this part of the world, power gives respect, and lack of power does not. The failed coup in turkey is a good example where a lack of power did not carry the day. In this case, i think they are making progress on what they are planning for the ipo, but i also think it will be a little different than the first announced. Betty what you mean . Thatthere have been hints in addition to what they might sell publicly, there might well be some kind of a deal involving some other foreign countries. China has already indicated they have an interest in perhaps buying and making an equity investment. That would probably be separately negotiated from the ipo, i am guessing. If that is the case, it would be more of a hybrid ipo than a pure one. Want to play view some comments we got earlier from emily hawthorne, a middle east, north africa analyst for stratford. This is what she said about the move either prince. There is a concern that they are shooting themselves in the and somewhat by creating stirring the waters of uncertainty themselves. I think he is taking the long view, and i think he is looking ahead and saying, i want to be sure that nobodys hands are in any cookie jars and i have from control and the buck stops with me. Betty it sounds a lot like that she shares the view you just described. I am curious if the prince would not have done this without knowing that he has strong support from some he countries, including the u. S. Tom i think that is correct. I agree with that. I also agree with most of what she had to say. I would also say that, you know, there has been evidence over the last year even of some bs. Osition to indias m mainly, there was evidence that some of the more senior numbers of the royal family had reservations about him when he was deputy crown prince. Former displays the crown prince, that probably was escalated. Inventingdited with the king against the shiite leader, and has been pushed back and some of the shiite circles within the country on that decision. Some really hard feelings. Those are all part of this equation, but most importantly, changing out those three ministers was significant. I think that, and especially the naval officer and the National Guard, he kissed the National Guard has typically been the anticoup force. He wanted to be sure they were boiled him. Betty just before we go, i have waleed. About prince al how much of an impact you think this will be on Global Markets when he has shares in Companies Like apple and citigroup . Tom i think it is too early in the process. We need to see how serious the detainment is. Certain communications value, if you will, and in the end, it seems to me the range of possibilities could be anywhere accusations to something quite a bit less, more like a new statement of loyalty and everybody agrees to go forward. It is too early to tell on that. Betty thank you. Tom petrie on the crackdown in saudi arabia. You can get around of that story, and many more that you need to get your day going. Subscribers can find on the terminals, also available on mobile on our out. App. You can customize your settings so you only get the news. This is bloomberg. A quick check of the latest business flash headlines. Southeast asias largest lender record for quarter profits that missed estimates. This overshadowed gains interest. Net income from the three monsters of denver fell. Compared to the median forecast of 835 million. This is the last of singapores big banks to report earnings. Betty shares in westpac are down over 2 in sydney trade as the banks earnings rose. Cash profit grew 3 , almost 6. 2 billion u. S. Dollars. The interest margin fell to 2. 09 from 2. 13 while the debt charges dropped by almost one quarter to 652 million. They will pay a final dividend of 94 aussie since cents per share. Ceos of softbank and the failedussed merger with tmobile. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Whentertaining us,es getting us back on track,hing . And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Not a good way to start the a. M. In hong kong, rain in the forecast this afternoon. 30 minutes away from asias first major market opening. Betty pretty terrible weather in new york, cap even to the skyline at all. Pretty dramatic footage. It is 6 30 p. M. Sunday evening here, very faulty foggy. Markets up quite a day on friday, particularly on the back of apple shares. I am betty liu in new york. Yvonne i am yvonne man in hong kong. Now to the first word news with paul allen. Saudi arabias crackdown on princes, ministers and officials have put is mohammed within touching distance of the throne at the age of 32. Since 2015, he is lost an unprecedented shakeup of the saudi economy and society to wean the kingdom on oil. Among those charged is a prominent businessman. President trump faces a busy day in tokyo, he meets with the emperor, meets with shinzo abe and has a state dinner. He will have supplicant visits the seoul and beijing. Permissions is a Ground Invasion of the north will be the only way to destroy the north nuclear weapons. The toppled Catalan Leader has surrendered in belgium. An figures are now under arrest. Tooktook lace in the place in the basque region, which had its own separatist movement for many years. They may not be able to cut