Up in time for the lunar new year. We are live with ceo brenda lee. Looking at the markets, another bit of surprise here. It markets up across the board, led by materials and information technology. With that said, there is still a lot of caution out there. G btv 7589. The white line is the spx in terms of net positioning and you can see that falling. This is just a flip. A reversal with the vix futures spiking higher. Volatility and bullishness surging to the highest level. We will see what happens in the asiapacific trading session though, to see what happens in terms of any possible positivity. Yvonne it has been quite remarkable, this turnaround we have seen and yet, we are seeing some of the speculators, sellers of volatility turning back the market. Expect this kind of shock already. It will certainly be ahead of inflation numbers. Raimi lets take a closer look at the signs of recovery. Gains came back on january 26 and the nasdaq is now positive for the year. The best twoday advance in the past year. We have to break this all down. Su keenan has joined me here. Walk me through the day today. We put together backtoback games and it looks like recovery. A lot of green on the screen and you have some major u. S. Equity callegist, reversing a from last week. Telling clients to buy the dips. Lets go to the market snapshot because again, the markets decline for raw materials, thats the big story. It will turn to u. S. Inflation outlook. The big to some of movers and the president s budget was a big factor in one of the big gains. Because infrastructure and steal , ands and defense going you have stocks all doing well. Apple chief among them. Lets go to 7589 because Market Sentiment is the big question here. Lets take a look at how it was in the positioning for the s p 500. Here is the big flip here. Investing,ople people dumping. The market calls have turned around and the question now is, does the stability have legs . Talking aboute the cell is a coming back. Why . Lightning is not going to strike twice. We had a very big strike in volatility. Lets go into the chart. Its really interesting when you look over here to the right. There is a chance that if it doesnt come back down, it could result in a vix super spike. That is why you have a lot of this is what we call smart money. There is a lot of big, out of the money calls on the vix that indicates they are likely emboldened. It is 5 . Meanwhile, hate it or love it. There is a traitor out there. Some have been waiting for the vix to explode. The price is about . 50 apiece. Hence this big trader that is known as . 50, like the wrapper. He made about 200 million on the trade. Thank you. Faring, this is when we see the bounce back and it comes to equities. 8 and the kiwi unchanged at 72 64. 7264. Uput one third of 1 , about. 33 . We have 288 at the moment. And turning back from the holiday. We did see the nikkei 225 as well as 6 to 7 . Reports thateeing corona could be nominated and could be easing some of the yen strength there as well. As get to first word news now with selena. Inflation offering policymakers and investors with the follow as the Prime Ministers expansionary budget. It rose 5 in january and line with a bloomberg survey. Sees that rising in Government Spending ticks and on april 1. Emergency services move a bond rating from the second world war. Or than 100 flights were canceled monday after the devices discovered in a nearby dock. Bomb,lled him telegram and the docklands are heavily bombed. And the have been flooded with complaints. More thanreceive 10,000 messages from angry investors after the shanghai composite fell almost in percent. Embassy said it deleted several messages a violated terms of use but it did not turn off the Comment Section for any post. Warned that are history may come back to hot them. The bubble indicates the cryptocurrency could plunge 90 in what is described as an environment of unsustainable expanding supply. Says that looking at the spectacular rise of amazon and the nasdaq, bitcoin could plummet to just 900. Global news powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. President trump has sent his latest Budget Proposal to capitol hill. It is 4. 4 trillion to boost the military and cuts spending on the environment as well as social safety nets. The president called his proposal bipartisan as well as common sense. What will congress do gekko congress has already rejected some of these budget cuts that trump made last year. And they are not likely to take them up again. In fact, they have increased spending for the better part of a twoyear budget deal that they agreed to last week and the trump signed on friday. And it has overtaken the budget. Most budgets are aspirational at best. Moreone is really a lot dead in the water than some of the past budgets have been. In terms of the main takeaway, is there anything they could survive moving ahead or should we just push this aside . The defense spending increases in line with what Congress Passed. There may be some adjustments here on that. Is going along with what the pentagon wants. There may be a few guidelines and programs that trump would like to cut and that republicans in congress would also like to cut. But this is an election year. Theres not a lot of the pain being felt anywhere. Democrats arene saying it is kind of a bait and switch and that this all heavily relies on Stage Funding now. Is there any chance he info Structure Plan will survive . Creating this mechanism the president would like is kind of big and complex. Congress doesnt do big and complex. The other thing is it relies on states and private investment. That means states in many cases are strapped for funds and dealing with fiscal crises of their own will not be putting up money for infrastructure projects. And in terms of private ,nvestments, things like roads it will require years of user fees. Tolls,e just against extra fees. Congress editor joining us in bc. My Blackstone Group may be in the running. Grant ability gives us the first interview and prepares to open the new casino in macau. This is bloomberg. Raimi this is daybreak asia. Newne mgm china opened its 3 billion or on tuesday, just in time for the lunar new year. Among the last developed on the familyfriendly strip. Lets cross over and out the resort and say good morning to the ceo and executive director grant bowie. For joining us congratulations on the big day, obviously. Tell me how much of a boost this means for the market as well as the business. It is an exciting day for us and we are excited to be here. Market is looking good. We are excited to be joining. The interesting group. Extent, ita certain seems like he mightve missed out on some of the revival that we have seen given the fact that you have delayed this four times already since 2016 and the rivals have been opening up resorts in the past year. Mgm sees is losing market share as well. As anybody would understand, the market is on the move. Is almost like given us a Good Opportunity to come with the other openings taking on earlier in the year. Were very positive. We are reinvigorated and reinventing. We think the timing is perfect and we are very comfortable getting into it as we are just in time for the chinese new year. Yvonne has the delay impacted bookings at all for the holiday . There are solid and that is why we needed to get open. A lot of people want to visit us in code type. But also in our property in macau. When i understand, the bookings in macau are very strong. Raimi we have seen that with a lot of casino operators. The gaming tables for this property, less than a streak of 150 which is what most operators have been allotted in the past. What does this mean for the number of vip tables that you will be phasing and . Is there more pressure to really capture this market and a segment that is seeing a bit of a revival . We have exactly the same number of tables as the operators. They have been opening up two additional tables in the future. Well be working with the government as we always will to try to ensure that we are in the best possible decision. We have primarily the mass table operation and will have the head of vip operations. And withhold the junket operators, but the time we get through this year, were very confident and very positive nomura on the at dictations that the market had for us. Raimi i wonder what investors are thinking. When the news dropped about coming in, the share price dropped by about 8 here. Go. Gp i have traced this in terms of the red line here. By 13 andally down the third percent. What are you telling investors in terms of strategy . Opacity of 500 but only 125 gaming tables. Everything else in life is about responding to what is available. I think mgm had a great reputation in terms of their. Xecution we are very clear about strategy and not trying to create a profit everybody. Therefore, the number of tables is critical if youre going to the more general. We know what we have to do and we are aware of the tables. We have developed strategies. And we are positive. The critical point for us, clearly the results will be the market responding to the result. Raimi our i wish over there to take a couple games. There is some diversification that you guys have been talking about. And the advanced forms of entertainment. What does this really specifically entail . Thehat we recognize is digital platform. We are actually creating an environment where the experience. Inside of whatre we call the spectacle. It is a combination of some of walls with Digital Content all over the world. Content and opportunities for the guest to actively participate. And when you combine that with the natural environment, we are in asia. We have a fully airconditioned area. Nongaming now, and that is what were doing at mgm. Adding particularly for the chinese consumer. Yvonne talking about the fallout of steve when, and throwing to a soundbite yesterday, the potential impact that i could have. We find that it really does affect business. Generally, from what i we advertise the gaming. Is there more uncertainty now in macau . It is actually part of us, delivering the undertakings. And as we build up our business, diversified business and we will carry on. Live in a world with many business distractions. They had a resilient in the capacity. Tryow the macau market does to overcome these challenges that they present themselves. Fortunes, ininas december, roughly two thirds of from mainland china. With the economic factor coming in, i wonder what thats going to be. Bloomberg terminal, its going well right now in terms of the purple line. Any concern for that moving ahead . The really important issue here is that we dont really deal and the chinese macroeconomy. And particularly, since the correction we had, we are seeing sustainable and reasonable growth rates. And were are continuing to grow in china. In the heart of the consumer marketplace. You see any countrys economy, they are really targeted. It will be the continued growth in the consumer marketplace. They want to strengthen gaming rules. Oversight, what does it mean for the industry . In what is really important in any Gaming Market is consumers have confidence, the priority and integrity of the gaming. And as standards change and evolve, we see that opportunity. Is a multinational gaming operator, we really operate at the highest standards. In some ways, we see that as a competitive advantage because it brings that in line with the standards and performance that we have already adhered to. More oversight, maybe not more regulation, but more oversight. Think so much for the time. You can watch us live and bloombergany of the functions. Raimi looking at a possible reversal here, buying back asset. Tom mackenzie has more. Another chinese conglomerate that overextended itself with the m a acquisitions and that strategy is back. Well remember that back in june of last year, the chairman was detained by authorities. And have been pressuring the conglomerate to selloff assets overseas. In many cases, it was bought from blackstone. 9. 5 billion u. S. Dollars. 6. 5 billion. Now backs blackstone is looking and rebuying these assets as the government tries to pressure it to sell down some of these acquisitions to steady the ship and pay off credit. You can imagine it will be a hard bargain. It to hanging for out. More possibleng divestitures. Still ahead, President Trump lays out his vision for making americas roads and bridges great again. We will ask if youll be able to get congress on board, next. Bloomberg. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Yvonne 7 30 a. M. Tuesday morning in hong kong. A couple days away in the countdown beginning on the markets which is half an hour from those opening. Also chinese new year, the holiday kicking in pretty soon. Over here, 6 30 p. M. To an Empire State Building in orange. Markets close higher, the first backtoback rise ever since the slump. Can this continue . Yvonne, a lot of skepticism. You are watching daybreak asia. To propose deeper cuts in favor of higher military and immigration reforms enforcement. And 44 of the Environment Protection agency as well as cuts to medicare and other safety net programs. Unilever has reportedly threatened to withhold advertising from facebook, google, and social media over fake and offensive content. They say consumers are increasingly concerned about the impact additional content on wellbeing, democracy, and truth itself. Unilever will not invest in platforms that promote hate or fail to protect children. And when the Court Injunction against pictures showing the deputy Prime Minister on me out with a woman described as an escort. The paper says the sites may be blocked unless they remove the images by next week. Havean Emergency Services found flight data recorders from the plane that crashed on sunday outside of moscow. Everyone on board was killed when it came down to seven minutes into the flight. Investigators have ruled out terrorism. It has a patchy record with at least one previous crash in a series of other safety incidents. The list when for hours a day powered by 2700 and analyst more than 120 countries. Im selina wang, this is bloomberg. Counting down to the major market opens. And we are seeing this kind of rebound. Its kind of a calm before the storm before inflation comes out. Depending on what comes out, it will determine two distinct paths for markets. We at positioning around the 10 year, markets are continuing to have bearish positions that i imagine, since were talking about it, it may actually lead to yields moving back down. But when you look at markets right now, i was about to say that there is strong momentum coming through. And then i did a quick look at the futures and today is all going to be about japan. Japan boardt my right here on bloomberg and give you a sense that we close at 21,400, just under that level. The nikkei 225 is 21,700 which would suggest a 1. 5 gain there. South korea caught a big yesterday and it is looking like japan is going to carry everything on their shoulders, but not by a lot. You look at australia. Did look at the rba. Ellis speaking about wage growth. Positive Table Numbers here. This really reflects the sentiment across the asiapacific, what is happening with this market. We are basically split in between here between gainers and losers at the moment. See that we are at session lows here. Just to show you how deep this one really got. This sand of where we go here. So there are head and are nine points over and estoril you. Yvonne a lot of data coming out from japan as well, david. Will that be important . The market is focused on these reports about kuroda getting nominated for another term. David what it will show is what china showed. Together,e two things and japan in about 20 minutes from now, we have a chart, and we put those sidebyside. 4. 3 . 2. 8 , andet to report what we are expecting out of japan in about 15 minutes from now. We will look forward to that in break those numbers when they come. In the meantime, donald trump sent a 4. 4 trillion budget to congress. It would cut entitlements and other domestic programs in favor of military and immigration and or smit spending. Bloomberg policy editor Kathleen Hays is here with a deeper dive. What is key in this budget . Hope,ng red ink in the the forecast if you are a supporter of this kind of budget that it will boost growth. Numbers already passed the twoyear budget, so this is really, as Mick Mulvaney who is the office of management and budget says, this is a messaging document. It always is. Hasmessage is that trump abandoned the gop goal of balancing the budget, but someone argue that in their own budget, they have stepped away from that goal as well. Thes run through some of cuts and some of the spending. Rex tillerson has been overseeing what he would call a streamlining of the state department, others call it a cutting. Trump considers a lot of this wasteful spending. Cuts to medicare and other parts of the safety net. Well see how popular this is with voters, but they say you have to rein in entitlement spending. He would like to hold some of this money that he thinks will be saved to build that wall with mexico and boost defense spending. He was to give military workers a 2. 7 pay raise. I think a lot of people would be fine with that. The trump budget would total 1. 7 trillion and boost the National Debt to 30 trillion. What youre going to see, no stranger to deficits. Is aovernment deficit percentage of gdp has been in the red for a long time. Crisisse, the financial is brief and we were in the green. A lot of people are concerned about this. What is the possible impact of the economy and being that issuance this year was the result of what the Congress Passed and it has already hit bond yields. This is a big jump. This could raise the cost of borrowing the corporations, and maybe it will be a bit of a drag.