Donald trump. They say they will create a million new jobs. Ready to go in hong kong. Singapore, taipei, and kuala lumpur coming online, a day when we see activity. The first trading day of this year, where it would have fallen. Here is sophie. The asfs falling almost 1 there with financials and energy dragging on the index. Japan also joining the fray in the red. The nikkei 225 down for tenths of 1 . Falling, second day of declines for that index. A little change on the new zealand equity index, a little firmer there. Futures contracts in china and hong kong hauling ahead of a consumer and Producer Price data released from the mainland. That will be out in the next half hour or so. One of the big things today, in the currency space, Dollar Strength faltering for a second day. The korean won and the pound are the biggest decliners among major currencies so far this week, but we see the one rally won rally. We see the , strengthening. Maintaining its rebound as we see haven buying, following the retreat on wall street. Uncertainty. Amid oil have a ring around the 52 dollar per barrel mark, recovering somewhat from an earlier decline driven by concerns over opec compliance. Take a look at what is happening in the bond space. Rise inebt cases the u. S. Treasuries, for the third time in four sessions. The yield on the 10 year aussie tot fell six basis points 2. 7. U. S. 10year notes looking steady here as trading gets underway, after the yield fell to 2. 37 , the lowest level since the fed hike in december. Rishaad lets get to sydney and get the first news. Keeping it in the family when it comes to a future administration. Thats right. President elect Donald Trumps soninlaw will be a senior but unpaid adviser. Jared kushner played a role in the campaign and were will work with the chief of staff and stephen bannon. Leaving his Real Estate Company to comply with ethics standards. Kush p statement called ner a tremendous asset. Freedom of movement and the single market. In her first spell policy speech, Angela Merkel laid out her position as theresa may prepares to launch brexit negotiations. Merkel says anything other than full compliance with eu rules would have consequences for the remaining states. Indias largest conglomerate resumed its attack on its chairman, accusing him of altering representation of its directive. A filing from lawyers say he reduced the number of directives on the board of other companies. They are accusing him of raising concerns about problems at the groups operations and being slow to react to losses. James packer is returning to the board of his company. He has a privately held investment company. The current chair will step down. Brown is increasingly focusing crown is in recently focus increasingly focused on australia. ,lobal news 24 hours a day howard by analysts and over 120 countries. This is bloomberg. The top getting back to stories, yahoo announces changes once the deal with verizon is complete. They include the departure of Marissa Mayer from the board. Is going . Who else is leaving . Marissa mayer is one of six board of directors who is leaving the yahoo board. She has been there for four years. She started in 2012, and she will not 2017 as her final she will notch 2017 as her final year. Others departing, cofounder david philo and maynard webb, as well as x chairman eddie hartenstein. Interestingly, i have the yahoo filing to the fcc in my hand. Thatmade a point to say for all the departing board members, it was his or her intention, this is a quote, to resign, is not due to any disagreement with the company. It is saying, these folks come on paper, are leaving of their own accord and not of any ill will. With Marissa Mayer, it is unclear as to what she might be doing in the new company, if at all. There have been reports that she has a severance package totaled as much as 55 million, including stocks and options and other benefits. Bloomberg intelligence analysts say this is the end of the plansa mayer era, and the is to complete the sale of the alternate the operating company. Rishaad with the core of the business going to verizon, when the deal is completed, the bulk altaba. What is this about . The name is out there, but the pronunciation is not. If you check the domain registry isine, it turns out yahoo since owned altaba october. Is the new name. It will be the Shell Company for assets,ian acts like alibaba. It has a 35 stake in yahoo japan and a 15 stake in alibaba. It will keep five directors from yahoo staying on at the new company as it prepares to become the Shell Company for asian assets. There are huge tax implications. Yahoo has not told us about that yet, but if you are a user of yahoo mail or tumbler or unclear as to what might happen with those properties. Yahoo bought them for about 1 billion, and they are valuable properties used by many around the world. You mentioned verizon, there is still a question on whether the deal with verizon will actually go through. We are talking about the risk goingerizon isnt is to incur if deal does not go through, related to two security attacks revealed. Verizon has been trying to a cheaper price, or maybe a possible exit. A lot ahead. Name changes and departures, but this is still in the beginning stages. Rishaad lets find out more. Is bigs founder delayed business figure to roll up to trump tower. Jack ma and trump discussed how to create a million new jobs in the u. S. Over five years. That is what we know. What else do we know . Jack mas promise to donald trump for creating one million jobs is based on the assumption put many Small Business brands onto alibabas platform, and that will bring it to one million. Rishaad if each of them creates one job many of them are doing it already. Selling on000 brands the alibaba platform. They might come into direct competition with ebay, which has 10 million sellers. There will be a lot of overlap in that space. They have a lot to do to do the promotions and marketing, to create awareness to make them willing to sell on alibaba. Rishaad how is this playing out . It is seen as important. We heard at the end of last year that alibaba was placed on the tory is markets list i the ustr. They were under investigation by the ftc. Goodng on double trumps side is essential, because they have so much exposure to the country and also, creating jobs is one of the things donald trump has placed as a top priority. You see jack ma as following a series of entrepreneurs,ncluding Masayoshi Son arranging meetings with donald trump, creating more jobs in the u. S. Rishaad what he has been doing, it was all about clicks. Intime retail is something he wants to privatize, the motivation here . They are telling us they are trying to use 19. 28 billion in cash offer, and jointly, in hands with a Company Founder and and to take private time. They are trying to upgrade the Retail Industry to get rid of the middleman, trying to help retailers and brands really link feedback from customers to see what they want and where inventory is lacking. They will have the most timely updates on those supplies. Is at a relatively low valuation, so for alibaba to buy them, analyst think this might be a good experiment opportunity to see what actually, they can do, even though they have been saying this for a long time. Rishaad looking ahead, renewed concerns over brexit. Pushing investors back towards havens. More details coming up later. Chinas inflation data is due out in the next 20 minutes. We will discuss the implications. Ishaad we are back the latest business headlines, a Japanese Pharmaceutical Company expanding in the u. S. It is by an area for 4. 6 billion dollars and will give it access to blood cancer and experimental lung cancer drugs. They will pay that works out as a 75 premium to the friday closing price. Rhs surging by 70 on the news of the deal. Up 1. 1 . U. S. Prosecutors said to be planning to charge highlevel volkswagen figures in germany over the emissions scandal, following the arrest of an american manager. The omissions compliance executive is accused of conspiracy to defraud the u. S. This lays out a roadmap to charges against officers in germany. The u. S. Has learned of the device in 2015. One of 2016 Biggest Hedge Fund startups posted losses in its first trading year. George sorosbacked len point 5 ital shed, offering a reversal in november. Volatility was spurred. It was a number one of a small number of hedge funds to raise money last year. Quarter past, we should be getting the yuan figures out of the pboc. Back to shanghai, the china conference taking place with our very own Tom Mackenzie standing by. Tom we are hoping to drill into the sectors and stocks we have been looking at. The head of strategy in china, you have released your most recent note and you say play the cycles, what conclusions have you come to . For longerterm investors, they should stick to the trend. That means structural trends happening in the chinese economy. We are talking about the growing middle class, urbanization, higher demand for services. These are the longerterm trends. We have observed these trends for the last few years. It seems like it will continue. The economy structure is shifting. I was going to ask about the sectors, on a sector by sector paces. On a sector by sector basis. , we arehinese consumer not talking about consumption and growth factor faster than the over all economy. It is about the structure of consumption. Ple have more demand of it for discretionary items and services. Goods, someonsumer brands, good brands, including domestic rants. Those are the things we are talking about and the other thing is looking at spending on health care, which is growing faster than overall consumer expenditures. Health care is an area you can find fastgrowing companies. Have the yuan fixing come up stronger at 6. 9 two. A lot of volatility in the yuan in the past few days. Analysts expected to come down again, but in the 2016 range of between 23 . How do you factor the yuan . Eakness into the strategy you are looking at financials, i know you think financials could see some positive earnings this year. Deposit seeing domestic strain out. You have exporters to benefit. How does this play into this . The pressure on r d against the u. S. Dollar will be a consistent. Sometimes you see higher volatility, because under some conditions, for example, now, very strong u. S. Dollar for example, we have availability of new quote is for individuals starting this year. When the periods pressure intensifies. The central bank will take some extra actions to stabilize it. Overall, we are expecting 5 depreciation against the u. S. Dollar. Asia, it is not export oriented. It is mostly serving domestic demand. You have a segment of the market that is export oriented, especially higher exposure to the dollar area. Exports to the u. S. I think these will be beneficiaries. The other thing we are observing, the last couple growth for has been investments. We have a big emergent multinational company, lots of operations outside china. The impact of domestic manned on these companies will be smaller now, and they will benefit from a stronger dollar. You expect the property sector to weaken this year, but you are bullish on the consumer sector. They are linked, because the higher the property prices, the more money people have in their pockets. How is it that you have to been diverging views . If you observe Consumption Patterns over time, it has less correlation with the housing sector than a lot of people expect. Looking at the housing boom last year, retail sales, they were flat. Effect, like the wealth we have this boombust in the stock market in 2015, and you dont see a lot of volatility in consumption, either. I think consumption is fairly steady. Andess effective affected by housing markets. That is why we think consumption, it is not going to be a huge growth rooster, but it will be steady for us. Earnings toect increase by 5. 7 by the end of 2017 and part of that is the financials, you are bullish on chinas financials. I was speaking to the former deputy managing director, he said that is a chief concern, financials havent the leveraged to the degree he would like to see. Deleveraged. Attactically, if we look financials, especially banks, they did well last year. Npl formation stabilized. Going to this year, i think one big change is, last year, we saw the interest margin get squeezed to the magnitude of 3050 bits. This year, we are projecting flat stabilization. We didnt have any rate cuts last year. Most rate cuts were in 2015. The ethics the effects were felt last year. That will stabilize, as well. Adding them together, you will see earnings rebound. Tom thanks very much. The to get your insight. Look to the consumer cycle and consumer sectors, particularly technology, entertainment, health care, but maybe avoid property. Financials is another thing he is bullish on. Alibaba breaking news, retail group, the Department Store operator, they want to freeit private and the market auction coming to an end on the hong kong stock exchange. Group, chinasl Biggest OnlineRetailers Group seeking to deepen its integration with rick and mortar stores. That is the deal at the moment. Stores. And mortar that is the deal at the moment. Ready to rebound. A look at the outlook for the ringgit. Rishaad the ringgit raising bringns that malaysia may back capital controls to stem the slide. Whatt to what tom top bankers say. It is having to rebound from a a detergent view on the prospects for the currency . Haslinda definitely, i divergent view. A survey shows the ringgit is expected to trade lower, 4. 52 versus the dollar is the project and is the projection but if ,ou speak to a top banker president of the Financial Markets association of malaysia, he will tell you to get ready for a ringgit rebound. He says measures implemented recently by the central bank will prop up the currency, like requiring companies to convert at least 75 of proceeds into ringgit. Also, funds with more than 200 billion in direct investment abroad made look to may look to gain before the evaporate. You how the ringgit has done. Down more than 20 since the start of 2015. The worstperforming currency in the emerging asia. Low Commodity Prices, not helping. Lasteached 4. 50 per dollar week. Not looking pretty. Rishaad the thing is, what are the risks to the ringgit . What may drive it lower . Haslinda several issues here. Hikes faster than expected, it may mean bigger outflows from malaysia, which will weigh on the ringgit. One of the main factors. Rishaad thank you. Lets have a look at what we have coming up. The Economic Indicators out of may show how factory inflation has risen for a fourth month. We have the numbers when we return. The market open in hong kong and shanghai, the markets showing a flat picture for the hang seng. Rishaad this is Bloomberg Markets asia. We will get you close of the breaking news coming through. We will have those figures. We want to tell you about a couple of things dominating the day. Weday. We have Marissa Mayer resigning from the board at yahoo . It was taken over byday. We have Marissa Mayer resigning from the board at yahoo . It was taken over by verizon. Looking at that one, and the markets have been dominated also by this failure for the dow to get above the 20,000 level. It is at not a technical level. We finished up the new year shy of that figure. We also see that the hang seng will be opening pretty much flat in the premarket auction period. Looking at that, and also looking at chinas gdp. We also have, of course, Inflation Numbers in. Lets get straight to steve. 5. 5 were looking at year over your game in Producer Prices. I will start with the factory gate inflation because we are seeing a much sharper rise. This will be the fifth straight month of rising prices after four straight years of deflation. December,rices in year over year, higher by 5. 5 . The estimate was 4. 6 . I havent seen an inflation figure this ties since october of 2011 when we had a 5 gain. That is more than a fiveyear high for Producer Price inflation in china in december. It really spells out what we have seen in the china market and that is the global rise in Commodity Prices feeding into the factory gate prices. We also have capacity cuts in china. They are getting more efficient and the weakening yuan in driving up costs at the factory importeduse of those raw material costs which are more expensive with a cheaper currency. Again, 5. 5 yearoveryear gain in Producer Prices. Consumer prices gaining 2. 1 . That is slightly below expectations. Again, Consumer Prices fairly bening now. Benign now. 2. 1 in december. We will look at the bloomberg food Price Inflation tracker and that tells the story. Even though it is wintertime where vegetable prices go up, it is a benign environment for food prices and that is why because food is the biggest determinant in cpi inflation in china. That is why it is fairly benign. Well below the governments fullyear target of more than 3 . Recapping, ppi, the prices at the factory gate, higher than expected 5. 5 gain. Rishaad we will be looking at that. Indeed, looking where the Market Reaction is. Not really taking this news well, but it can be counterintuitive. Lets check in on how the yuan is reacting to the latest cpi numbers. The offshore yuan rising in the wake of what we saw with the pboc setting the daily fixing. We will see whether or not we will see more action coming after that data dump we got out of china. Lets see if there is any reaction to the data on that front. The aussie falling 1 10 of 1 . Lets take a look at the equities market to see the direction in the stock space. We are seeing a fall of 2 10 of 1 in the chinese mainland. Some other stories we want to focus on today happening with market movers, moving on to japa