The disney tv business is in retreat and the studio awaits a comeback, and a new shutdown showdown as President Trump says and get on, if it helps break the deadlock over Immigration Reform. Yvonne day two of the World Capital symposium in the conversation has changed in the last 24 hours as the market meltdown is questioning whether this is some type of correction or if we are even close to a bear market come but we went to the worst a of the dow on record to the best day in 2016. How real is the rebound . Volatility seems to be still here to stay. Betty that is right. What is interesting is that last month, only a few weeks ago, the great, all of economic rights, talking about global secret nice growth and the upswing, and in the market said no, not so soon. Delivered a reality check to anyone who seemed optimistic about what lies ahead. Were firmly bulls in place in u. S. Stocks and we saw the rebound, even though it was a volatile session. I want to get to romain bostick. We started off today in correction territory and straddled the line through gains of losses until weeks want into this late day rally and the dow 2. 3 ,ed 567 points, up the best day in over two years. And the nasdaq up that should hand out stocks went about their 50 day moving average. 80 of the dow is now the about the 200 day. Above the 200 day. Amazon, netflix, apple, micron technology, up. On the flipside, utilities liking the market lagging. Moves ome of the sitting out of this late day rally. There is a lot of rage over credit default protection. Romaine we see people taking a defensive position after these gyrations. You look at the indexes that we track and we had billions of dollars trade hands today, the value volume was through the roof today, four times about the daily average. A lot of this is where been called is not that people are giving up on the credit market but rebalancing relative to some of the risks we have seen in the equity market, and that is spilling over to the bond and Corporate Market as well. Keep in mind the index we have now on your screen is a highyield those are doing worse, but we are seeing protection coming, a lot of volume coming to the contracts in the highyield markets. Lows for thet its year, and investors arent anticipating more default, but it are telling us these gyrations are making them take a more precaution in these times. Betty romain, thank you so much. Asiantake a look at how markets are trading right now starting in new zealand. You see the kinds at the open with new zealand markets down 1 , the kiwi trading pretty much unchanged. Trading in australia is just getting underway right now. Futures inn australia showing a gain and it looks at we are carried that over from what you have seen in the u. S. But a trading unchanged, slight cell underneath the currency. We are counting down the open in japan and south korea in the next hour. Ee nikkei futures , and the dollar recovering just a bit as well against the japanese currency. Seanus now in sydney , help us make sense of what is going on in the market. I know you mentioned in your notes there is opportunity here for select buying, but some might be saying is this too early . Have we hit a bottom here . I think we are through the technical event in the moment,nd we saw that in volatilities and that is well documented and flowing into short volatility funds. That has unwound and we had an event there that we are still we are in it reasonable goingnment we are through the goldilocks. Period. That has pressured the bond market and is not going away. We are still positive on some equities, but you want the ones that have cyclical earnings in resources, materials, industrials. We are a lot more cautious around proxies, infrastructures, even tech stocks. That could be pressured as we move through this year. Yvonne you mentioned volatility, and i want to pull up a chart. It shows you what a difference only a few days makes. Youve got investors fleeing not only shortterm future etfs, but also presented by the blue bar, longterm as well. Given that, is volatility essentially here to stay . Is that the new normal for 2018 . I think volatility is going to stay above record lows. We saw fixed trading at single vix. Vels cynicallyat we see is is signaling an end to that. The economy looks rocksolid, but volatility is not like the financial crisis are the europe area crisis where you had real we are a long way from seeing any downturn in the economy. It is quite the opposite. Bond selling off will pressure some of that drive volatility. Must have been well telegraphed expectations from the market shown. We have been expecting the fed to raise rates, and it has finally shown its had, and the jobless rate in the u. S. At 17 year lows, we knew wage gains were coming. Why did that expectation when it hit reality have such a violent reaction to that . There is a gap between expectation and seen that happen. Just like at the Market Structure and where money is flowing, theres a lot flowing to systematic strategies, risk which, low volatility, isnt necessarily actively managed money. It is quite mechanical when you get a little bit of volatility. Market structures said it the market was really poised with a spike in volatility. Betty so the select buying that you will do is where . Into short duration, cyclical areas. Your best inflation hedge from risks the number one risk remains inflation. That is going to be one of the things driving inflation, materials, cyclicals, anything benefiting from global pmis will do well,. Onstruction stocks, all fit as well as select exposures to the market, some Fund Managers in areas that continue to benefit from ongoing Global Growth and strong earnings. Much. Sean, thank you so we have several highprofile guests coming up, from the Goldman Sachs conference in hong kong. And ceo harveynt schwartz joins us for an exclusive interview at 11 30 a. M. Hong kong time. That is after we speak to goldman equity chief strategist peter often heimer about his return volatility. Dont miss those interviews right here on bloomberg television. In the meantime, first world news. President trump he would welcome another Government Shutdown if democrats continue to refuse his demands on immigration overhaul. Areressional leaders negotiating to avoid another shutdown. The president spoke with bob enforcement officials to talk about and membership and undocumented immigrants, saying it contains loopholes. If we dont get rid of these loopholes, the tellers will be able to come into our country and continue to kill. Memberse many getting gang members. A shutdown is worth it for our country, i would love to see a shutdown if we dont get this taken care of. China is calling for talks over solar panel tariffs. China is asking washington to join confrontations. They want the opportunity for talks with the fact that organization members. China is home to one of the lords Worlds Largest solar makers. There are said to be close to raising 8 billion to finance a refinery and Chemical Plant in malaysia. The deal can be signed next month with hsbc, and mitsubishi usa among lenders who agreed to provide funds. The complex is part of a 27 million project that will come on stream in 2019. Potential penalties for Money Laundering has ended record profits. Australias largest lender has set aside quarter 50 u. S. Dollars for fines 450 in fines. Punt billionthe u. S. Dollars, missing estimates of 4. 1 billion. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am jessica summers. This is bloomberg. Wille still ahead, we head back to the singapore airshow and the mitsubishi aircraft in the struggles they have had to build japans first passenger jet. Betty up next, more on threat oftrumps another shutdown. This is bloomberg. Yvonne this is daybreak asia. I am betty liu here new york, and Senate Leaders are closing in on a budget deal on domestic spending that is going to break the cycle of temporary funding bills get the government operating. President trump says without immigration legislation, it is time for a Government Shutdown. The house debating right now, about the vote on their temporary stopgap funding bills. You can see the debate is continuing on the Washington House floor. Ning us is Congress Editor even though this passes the stopgap funding bill, it is like going to survive the senate, right . Know, either the senate comes up with a budget plan, and a budget plan, and they have been negotiating with house leadership so they would get it if they are able to replace the temporary spending with the larger budget deal to continue funding the rest of the fiscal year. They they are not done, can take the house legislation and strip out the defense houseng portion of the and senate back with a few other items and forced the house to vote again. Either way theres going to be a second vote coming wednesday or thursday. The president s comments about the lets do a shutdown if the democrats cant compromise when it comes to his demand for immigration, how is that complicating everything now . If they are able to get this budget deal, they can take that weapon out of his hands, unless he is willing to veto the entire budget. But theyre not going to be including anything on immigration in this deal as it is developing right now. This is separate from the immigration deal. The senate will begin debating andr on immigration package people are talking now about a smaller package that will deal the young immigrants who came here as children, and for trumps border wall. Then it will be sent to the house, and it is unclear if there will be in votes from republicans to pass, but if it did it will go to the president s desk and he can either veto it or sign it. Will not be able to veto it and trigger a shutdown and democrats are not going to be willing to go to the wall on spending to close down the government. What are the chances were going to see a repeat of what happened last month where the Government Shutdown if only for a few days . By now the chances of that are not zero but they diminished greatly. Either republicans or democrats in either chamber are interested in doing a shutdown. Happen by accident if theyre not able to get everything together and vote on time. But there are no threats issued from either side that they are going to hold up the spending bill, whether temporary or a larger deal for the rest of the fiscal year in order to get some concessions on other issues, like immigration. , doubt be the big hangup, immigration. Betty joe, will be watching the house vote. The house still debating the bill. Up next, scandals hit the banks bottom line and will go through the numbers next. This is bloomberg. Yvonne this is daybreak asia. Ofty the latest chapter ubers legal woes which saw Travis Kalanick on the witness stand. The company is fighting claims from rival waymo that was driven from former co to steal Critical Technology for a driverless car. Since weve heard from ubers troubles, uber tech reporter has been following this in San Francisco. Do how dido Travis Travis do . Pretty well. There was a lot of yes, you know, and he wasnt allowed to get much beyond that. He has been a good job so far, he had a fun read on jam sessions and compared it to a jazz in psalm ball, so he had some fun. Jazztraightforward ensemble. What was the trickiest part of the parsed that seemed most at risk . Notes from conversations hes had, including one that references ubers desire to get some ip or intellectual property as part of a deal with Anthony Levandowski of a potential acquisition of auto, and that is the core of this case. They went into this deal in order to acquire googles trade secrets. That is the key question and ubers strong desire to acquire Laser Technology is really coming through in the case. That is another issue that waymo needs to prove. Another issue was the hacking incident that we did see and ubers failure to disclose that. We heard from the executive talking about how they were defending this bug program. On one coast, uber is fighting off waymo, and another there are sending an executive to testify on the hack. They have a challenging position because on one hand they want to defend bug bounty programs as a institution, that i did you could pay white hat hackers to fight vulnerabilities. At the same time they want to admit that they mishandled the hack of 57 million accounts and it wasnt a bug county program, and that has been their line, defending the institution while acknowledging they didnt handle the hack as they should have. Never a dull moment at the uber. Lets take a quick check of the latest business flash headlines. Reports in china say apple has agreed to build a second tech center in mongolia. 30 sayannouncement the center is expected to come online in 2020 and will offer icloud services to users in china. The First Data Center is being built in the southwestern province. Single polar and malaysia will create a link the news is announced singapore and malaysia what tech markets of more than a trillion dollars in value and 1600 companies. Theey says the creator of hbo series game of thrones has a new trilogy of star wars movies, separate from the current trilogy already in development. Newat least seven star wars fis are in the works, and the last film hauled in more than 1. 3 billion worldwide. Commonwealth bank will be the focus after australias largest bank announced lower profits shares right now are seeing slightly in the positive territory here, up for tents of 1 . Today dive into these earnings, was the takeaway . The earnings are weaker than we haddown 1. 9 been expecting a 6 rise, but what hit Commonwealth Bank where provisions for this lawsuit they are facing. Commonwealth bank accused of more than 50,000 reaches of Money Laundering and counterterrorism losses with the use of atms. Theyre sitting at half 1 billion 375 million a potential fines, and regulatory costs. The bank said in a statement that he believe the level of penalty that courts may impose upon. Provisions fore financial damage, but what about hits toir reputation their reputation . They are trying to fix the benchmarks and other scandals as well, but it doesnt seem to affect the bottom line is this is a record for Commonwealth Bank. Betty much more ahead on the results. 7 00 a. M. Tuesday morning and kuala lumpur. We are covering the symposium in malaysia. Now just 30 minutes away. Is six 30ne, it p. M. Monday evening in new york, where the bulls had a little bit more to cheer. Quitep up almost 2 , not making up for the losses we saw in the last two sessions. Few sessions. Thanks, betty. Bitcoin gained for the first time in six days, snapping a losing streak that pushed losses to . 5 trillion. The beating cryptocurrency was helped by the return of risk appetite. The agency already has the Regulatory Oversight needed for enforcement, says a chairman. Clayton told a congressional hearing that all icos are essentially security sales. The funny thing about these currencies is they only work if. Hey are integrated they only work for their purported purpose if they are integrated with the financial system. It necessarily touches on all of our regulation. Jessica chancellor merkel is warning of painful compromises on both sides as Coalition Talks between her cdu blog and the social democrats enters the last stretch. They exceeded the weekend deadline. Deep divisions remaining on Labor Regulation and health insurance. All sides stress they aim to Reach Agreement this time. At least two people were killed and 200 more injured in an earthquake in taiwan. The ground floor collapsed, causing the deaths of two employees through the magnitude 20 kilometersuck off the eastern coast and came two years after a similar powerful quake killed 115 people in southern taiwan. Higheste, Hong Kongs Court has overturned prison sentences for three activists convicted for their part in a protest. A panel of five judges sided with them in their appeal against jail terms from lawful assembly. The court of final appeals ruling was an unexpected victory, but activists fear tougher laws will be introduced. D a major milestone with the successful first launch of its newest rocket. It will allow spacex to handle bigger payload such as satellites and missions for national security. Elon musk has said the launch success. Onsidered a global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than on hundred 20 countries. I am jessica summers. This is bloomberg. 120 countries. I am jessica summers. This is bloomberg. Betty let me just take over for a moment, because we are seeing the house voting right now on that stock gap funding measure that will fund the government beyond february 8. We will at least keep the governmentfunded until march 23rd, but as we just heard a little while ago, this measure is very unlikely going to survive the senate, which has their own budget bill, which are preparing their own larger budget bill. As we mentioned, the vote is underway in the house. We have got about a little over 13 minutes left, and by all measures, with this bill, its very likely going to pass the house. Yvonne. Still a lot of looming questions, particularly with the debt ceiling as well. We heard mnuchin say he wants it to be done by the end of the month. That could be a tough sell at this point. We are counting down the market open in tokyo and seoul. The latest with sophie kamaruddin. I guess a big question is among asia is when we are watching to see this bounce on wall street, if it can be sustained. Sophie whether or not we might see that sustaining factor from the bounce on wall street, that remains to be in question. Whether or not we can get a recovery after that pullback is just a healthy correction. This after a twoday selloff that left most of asia awash in red, as you can see on the map. It pushed global stocks into oversold terri