The opening numbers, 3071. Ore, 3071. I will talk more about the open there in singapore. That being said, with the guide, is talking parliament. You look at the balance, do we go up or down from here . It is balanced at the moment. , he we dollar is on the way down. That is really standing out. Not reallyelse is much conviction. Have a look at the bond markets. The rally continues. Massive moves down in yields over in europe. We sought it down about 2. 3 percent. A little higher on the 10 year yield. There is your move. Were back below. 1 here. On the japanese 10 year bond, and in 10 years time we will get best 10 minutes time we will see if it will help support the market and anchor this. Look at the equity markets. We talked about singapore at the moment. Taiwan is also opening up a fifth of 1 to the upside. Said, not a lot of conviction. Just wrap things up with a look at the touchy here hitachi here. The deals. Do long story short, they have a project in south africa. There is a disagreement over who pays who how much and mitsubishi now demanding double the amount that was previously expected. 6. 8 billion now. Were going to go from singapore over to sydney. Haidi lun is there with the latest first word headlines. The senate has confirmed Jeff Sessions as attorney general after more than a day of contentious debate. The 5247 vote in the republicancontrolled chamber falls 30 straight hours of debate. Say the senator democrats say he was too close to dump truck. Sessions would put enforcing the law above politics. British Prime Minister teresa may is a step closer to triggering brexit after the lower house of parliament gave approval to begin the formal process of leaving the eu approved. Lawmakers will the lagos to the house of lords for the final vote expected on march 7 grade intense competition squeezes profit at singapores biggest phone company. Profit narrowing to 456 million u. S. Dollars down from 472 million. Higher costs for australian content and investments to build out. Global news 24 hours a day powered by more than 2600 in morests and analysts than 120 countries. Im haidi lun. This is bloomberg. Rishaad boeing is said to be the frontrunner as Singapore Airlines closes in on an order as it least 35 aircraft takes on rivals from china and the middle east. Our correspondent joins us now. A pretty big deal. The fleet has been aging, so you can expect it. Yes. Also because of the competition, it needs to do this. The deal was 14 billion. Were talking about a huge deal. Matterfamiliar with the say theyre looking at two different models. Jets are the long range set to debut at the end of the decade. The 78710. This is the most expensive dreamliner yet. Than 300st more million. You said that earlier, a way to win back business. Firstclass customers in particular from the like of emirates. Singapore air has a ways tried to be a trailblazer. It was among the first to rollout the for lee flat back in firstclass the fully flat back in firstclass. Was the first in the why in the world to fly the a3 80 jumbo. It is now hoping to win back fans and loyal customers with its latest fleet intentions. This is a critical order from Singapore Airlines. Reticle for boeing as well. Why . Saidspondent boeing has it will cut output of its current bottle. Understandably, it has been trying to secure sales of its new aircraft. If and when Singapore Air signs the dotted line, it should give boeing the room it needs. Even those who are trying to be part of it are set to debut is made in china just this year. It is a narrowbody c 199 in the making. It has a lot of problems with it. Was scheduled to take to the sky back in 2015. That got pushed back several times. Set to faceirbus more competition. It is a battleground. Rishaad thank you very much. May have gotten the yuan into its sweet spot, boosting the countrys competitiveness. New claims from washington about deliberate undervaluation. K, or designk luc here . How did policymakers pull this off . Correspondent a bit of both, probably. The honeymoon period you talked about is pretty well illustrated by this chart. Since the beginning of this year, you will see that your wan versus the bulk of the land the yuan that has strengthened almost as much as it has weakened. Competitiveness for china and exports to countries that use that basket of currencies. We are going to get export numbers out tomorrow. The other thing it does is make it much more difficult for the Trump Administration to follow through on threats to label china a currency manipulator, saying china is undervaluing its currency. Articulately when we have seen it versus the dollar so far this year, up around 1. 4 . There has been something of a lack of clarity from the Trump Administration on this policy, as on many. ,e have heard from the nominee the u. S. Ambassador to china, saying trump was actually surprised at the strength of the yuan. Current honeymoon period again is going to make it difficult for that label. We are going to get some more clarity in april when the u. S. Treasury publishes its Foreign Exchange reserve report. That is when we should get more details on where they stand on this. Rishaad the question is, how long does this honeymoon period actually last . That will be key here. Correspondent absolutely. We have heard from the likes of a group who says it will be a nearterm honeymoon. They expect the u. S. Dollar to continue to weaken until there is more clarity around any potential fiscal stimulus in the u. S. They say the fact that demand that you and could see a rally could play an Important Role in that. We know that you and yuan fell last quarter. It has seen that pick up so far this year. Other thing to bear in mind is there is a gathering of the legislature here in china in march. It is an important annual event and is unlikely policymakers ofl want to see a lack volatility. Expect them to stabilize the inn until that meeting march. Still ahead, efforts for hong kong governments to stave offs while they a buying frenzy. Senior investors come a strategists looking at what is really making waves on the markets and beyond. This is bloomberg. Rishaad a quick check of the latest headlines. We have been told wells fargo may withhold bonuses for top executives, including the chief executive tim sloan. They were slammed by last years fake account scandal, which bonuses inliminating january. For opening new customer accounts without permission. In a 10k filing, the company says it has been asked for information and is unable to billions inme transactions last year. Saying the Danish Company is interested in buying 1 of a chinese company. Fine 20 on a chinese company. Do r that one quickly 1. 2 billion is based on it owns 60 of thing thousand rivaluber tsingtaos brewer. Advisingguest investors. He is with me now. You are thinking first of all . Schematic is about if it. It e advising about it. Rishaad if i remember it is about that reflation pivot as well. Wayhis year we are all the to equities. There is potential uncertainty arising from Donald Trumps rhetoric and policies. As we have seen over the last two weeks. I think wee point is are in a bit of stasis at the moment. It is a most like we are waiting for the next thing to come. We are waiting for something on the fiscal policy, something on stimulus. Arehat is the reason why we maintaining some exposure with bonds. They are doing quite ok. Also bond yield has been dropping. Weh the Bond Exposure here are talking about has to be different from the year before. This year, we are advocating investors to be exposed to floatingrate bonds, and also to highyield ors, in hi highyielders. Not so much in sovereigns. That is underway to. Underway did. Yields heading down to 2 . That is another story altogether. Tell me something. What do you envisage when it comes to u. S. Stocks . We have seen financials go up so much recently. They are pricing in so much. Withdrawal of regulation, doddfrank, etc. In fact, when we were formulating our view, we like the financials. We cannot push the trade at this right in time. That supportwe see will be around 2. 2. For that moment in time, perhaps to look at financial stocks. We have talked u. S. The danger there is if we get a move in the dollar in the wrong direction. Again, this is like a momentum there. Tell me about it. The weak dollar is helping equities. Weak. Not that week first toto win went trump first won the elections. We have to take into consideration chinese domestic consumption. A weaker dollar will be for equities. Because china has the internal transition as well as facing protectionism, the need we are advocating plants to be exposed to new stocks in china. Rishaad what else is in the emerging market universe . We like india and indonesia. We are very wary of protectionism. Orse are more domestic insulated from external factors. Rishaad the dollar can play havoc here. There has been a change in sentiment with emerging market currencies. Perhaps they will do all right, especially indonesia and malaysia as well. We do notice that the pickup for growth is happening. We do believe that in terms of variation, it is cheaper than the u. S. These factors are helping em equities. Rishaad lets talk a bit about gold now. Gold has been ratcheting slowly because people are seeking that haven, arent they . Guest they are. Rishaad do you have a view on that . Guest we are neutral on gold. Technically, it seems that it have 1300. Tially we are getting little shoots everywhere. Even there, there are some signs. Are we out of the woods . Tough to say, but we are having a change in direction. Everythingeally bet on the reflation story. Last year we were defensive, this year we are pivoting one foot in the ground, one but to the other. Approach inanced equity response, we do believe that will do ok this year. Europe for equities, we are neutral. Euro, the kearney itself the currency itself, we leave it can have some downside this year, given the fact qe is still down. Etting back into the zone rishaad we shall see. Thank you very much. Pretty much unchanged. Is because we have had such little action. 2 10 of 1 move. That is the most in two weeks, if you believe it. The british Prime Minister is a step closer to triggering exit after clearing the latest parliamentary hurdle. Rishaad the u. K. Is one step closer to leaving the European Union after parliament gave approval for Prime Minister theresa may to formally trigger the process. What has happened, and indeed, where do we go next . Correspondent there is a lot going on around this brexit vote. The house of commons has approved a draft brexit law, without insisting on passing amendments to alter it. Next, it goes to the house of lords, the unelected house of lords. They also have to vote to approve it. Next, if that happens, theresa may will be able to go ahead and sugar article 50 of the lisbon treaty. That is when the whole process gets underway. Minister, david jones, had to make some concessions. He promised lawmakers of vote on the final deal of the eu to stave off a revolt in his own parties among the conservatives. On a lighter note, the Scottish National partys reprimanded for singing the eu anthem after the boat. After the vote. Rishaad does this week and or strengthen Prime Minister mays hand with the European Union . Guest there has been so much backandforth. This is definitely both parties, the conservative and labor parties. She gave an interview and said i dont feel i have a we. She points out the eu values the trade relations with the u. K. And other parts of their strategic partnership, alluding to security relationships. Supporters point out the eu needs the u. K. As much as the u. K. Needs the eu. Now that Boris Johnson is the foreign secretary, he has made that point loud and long. May says she is making a deal that works for everybody. The u. K. Labor party led by Jeremy Corbyn is in a bit of a crisis itself. Whenst a key ally today the standing cabinet business along with 17gned other front ventures front b enchers. Jeremy corbyn has been compelled but all this to say it is not true, im not residing. You wonder at what point dost thou protest too loudly . A lot of political reverberations in the u. K. Rishaad the relationship with europe, how deep is it an rest of these trade ties . Correspondent they are the uks biggest trading partner. You can see the blue block that shows you the u. K. Trade is about that is reliant. They rely on 50 of trade. In other words, this is very important. , getting things for the bank of england, inflation is rising. Again, the vote is moving ahead and we will be watching very closely on bloomberg television. Rishaad thank you. , rewards from the iron ore rally. Proposals the miners should take a few more risks. Rishaad shanghai and hong kong are just about to open. No momentumy had out of new york, where the Dow Jones Industrial is about 2 10 of 1 gained against this backdrop of another session in europe which did very little in europe. , we are just waiting for something on fiscal stimulus. We are waiting for something in terms of reflation. At least, that is the sense out there. Lets find out what is happening at the start of the trading day. Here is david england. Correspondent we have to talk about the banks. There is an argument to be made that markets have been overshooting when it comes to the banks and reflation. Have a look at the hang seng index. Nothing out of china. Comes topecial when it the six income the fixed income from the pboc. News that carlsberg made be looking may be looking perhaps to buy a 20 stake in a Company Currently owned by asahi. Markets looking to maybe adjusted to that. Let me just check. 11 month high for the fourth straight day. Philippines. This is the other one im having trouble with. Rates are coming up later. The reason we mentioned that, were not expecting anything as far as change. Lets get into my terminal. Have a look at this chart. Essentially what it is saying is that we are likely going to see the Banco Central adjust policy north of 50 basis points this year. The reason that is important is because if you look at where reflation has come from, there is a possibility it may actually turn negative. 50 basis points basically takes us here, 3. 5 here. Back to the here and now. Split the board and have a look quickly here at what else we are following across the region. In terms of a lead, nothing much equity wise. Looking at currency and on markets, that is the story. Massive drop in bond yields over europe. Euro still below 107. Wrap things up with a look at the kiwi dollar. Rates will remain lower for longer. View that whens you look at risk, it is equally valid to the upside or downside. Rishaad thank you very much. But to the first word news courtesy of haidi lun. President trump says his authority to limit immigration should not be challenged in the courts. Law enforcement officers, he argued he has the power to stop the entry of any fortis. Judges any foreigners. Judges may determine whether to lift the temporary ban. The losing side is almost certain to appeal to the supreme court. Chinas war on that debt, smaller you smaller users have fueled growth. This is raising concern that weaker lenders could face cash crunches and missed payments. It is making things very painful for small banks. 1. 75 for a prolonged period. International outlook remains uncertain and that is restricting the Central Banks options to change policy accordingly. New zealands economy is growing at an annual clip of more than 3 . Headline inflation has returned. It is expected to return to the midpoint of the target then to gradually. Longerterm Inflation Expectations remain well anchored at around 2 . Monetary policy will remain a accommodative for a considerable period. Numerous uncertainties remain, particularly in respect to the International Outlook, and policy may need to adjust accordingly. Takataondent shares in are down in tokyo after reports they will have a charge of up to 1 billion this year. This is the result of the companys settlement with the u. S. Department of justice. They had forecast a profit for the year, but discharge could now leave that to being revised down to a loss. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Im haidi lun. This is bloomberg. Investors are rewarded with a dividend that is much higher than expected. With by back 500 million of shares after its first gain in profits since 2013. The worlds second worlds second biggest miner after province came at the 5 billion mark as iron ore prices surged 81 . David is making a case here about perhaps them looking at taking over the american aluminium producer all, producer alcoa. I think you are saying he should be a bit more imaginative. He gave an answer about consolidation in the industry and beyond. Correspondent the position has no change. It is all about build and small by. The threshold is very high. The alignment has to be the right one to ensure. The last big aluminium deal was not quite a success. Guest no. It was pretty much regarded as the company killer back in 2007. A 38 billion deal for that canadian aluminium producer just before the Global Financial crisis left rio with far too much debt. There was a big investment from the Chinese Government to aluminium prices never really recovered. Since then, they have never regained the price at which that deal was done. Too many chinese aluminium sellers, too much aluminium on the market. You might say you want to avoid this. I think alcoa has good qualities that we should Pay Attention to. Rishaad that brings us nicely to what those qualities are. Guest sure. I think the think you have to aluminiumnd is that problems have not changed, but alcoa has. Upstreams very much an inducer of some of the Raw Materials in the aluminium industry. It produces less aluminium industry alan you metal band rio tinto. You can then transform that and heated and apply electricity to make aluminium metal. Aluminium metal is really having a bad time right now. Of rio tintos key commodities. Alcoa as thek of relationship between oil refiners and oil producers. When producers are doing poorly, refiners do well. Similarly, when upstream producers it arent they better off to sleeping alone just leaving it alone . There is a high bar for any and and a an end day m a. Out. Al deposits get worn theyre looking for lowcost acids, highvolume. They can produce these for years into the future. There are not that many left. Slide in often shows a its presentations of the decline in exploration discoveries we have seen in recent years. You have the option to buy or build. He did not say he was never going to be doing anymore m a, just smart m a. You sell rio tinto have a big problem with its iron ore investment. I think this is exactly the sort of deal they should be thinking about doing. Rishaad you think it is smart. Thank you very much. Hong kongs efforts to cool a soaring Housing Market have had the unintended consequence of perhaps ultimately leading to higher property prices. Lets get the details. Correspondent it is a curious phenomenon. You have the kurds introduced in inember curbs introduced november to cool the redhot Property Market in hong kong. We have seen that the moves have in fact pushed the demand into new homes that are being built by developers as consumers are very eager to get ahead of what they think are prices down the road. Rishaad youre sort of frontloading it in a funny sort of way. Everything is snapped up. Correspondent eight hours last friday, you saw 800 buyers or applicants lineup for just over 100 flats. It is really symptomatic of what is going on in the secondary market, which is of course where the existing homeowners who are ,lanning to sell their own home they have decided to hold back because they no longer want to deal with this when it comes to buying new apartments. They are not able to compete with developers who are able to get tax rebates, able to offer financing and loans. The individual homeowner says wait a minute, i dont want to sell right now. All the demand is going to the primary market where these new homes are being built in large quantities. Rishaad thank you so much for that. A look atng to have australias Property Market and concerns of a potential apartment glut their. This is bloomberg. Rishaad australias housing industry has reported slower new home sales. Just 2 10 of 1 rise in december. Melbourne continues to be the big driver of growth, where there is a frenzy of highrise develop development. She spends a lot of time looking at apartments in melbourne. She is not an investor, she is a researcher. Every year, she writes a report exploring whether anyone is actually living in these new buildings. Investors are buying in them. The only way to maintain the value is to keep it as new as possible. When you think the yield in melbourne are at record lows, around 2. 8 , then the money that investors are getting from renting the apartment out is in many respects just not worth it. Annual report the uses water use data to gauge whether these apartments are homes or land banks. They found 82,000 properties in melbourne. That is about 5 of the total housing stock. They use less than 50 liters of water per day. That is about the equivalent of a dripping tap. The apartments just keep appearing on melbournes skyline. There were more trains at work in Melbourne City and brisbane then in new york, chicago, san francisco, boston, and los angeles combined. They reject any talk of a glut, saying a growing to melbourne will need 55,000 new homes every year until 2035. Hong kongbased far east corporation completed more than the centralnts in city last year, with another 2700 planned for a site right across the street. They say the buyers arent just land banking. They are definitely tenants in them. With them, and they have confirmed that 90 of the apartments there which are being billed as occupied. That is definitely occupied. Correspondent just like the mining boom, some believe the Housing Construction boom is now also winding down. Are you forecasting apartment price decline in melbourne and brisbane in the future . There are signs of oversupply. Ultimately, the market will have the last word on whether this boom is turned to a glut. We will bring our next guest who believes the housing boom has passed. Thank you very much for joining us. People have called this boom as being over with before there and they have been caught wrongfooted. What makes you certain this time . Guest i think the truth is somewhere in the middle between the early reports of a of an investment speculative glut and also the truth that migration is still fairly strong. We are still building too many apartments in the market. The glut will not be as significant. We may not get the cataclysmic proof of a glut, but we do think that the supply is an issue for the market. We are seeing a tale of two markets opening up. The city of melbourne Property Market compared with the rest of the country. Increasingg an change between the Housing Market and the apartment market where housing is coming to more quickly. Decouple. Tarted to there are signs that the oversupply has started to come in. We do have a lot more supply in the top nine in the line under construction. Rishaad when you crunch the numbers, one of the declines you are talking about . House prices, exactly what . Guest we are focused on the Construction First and foremost. Forhat front, were looking a 45 slowdown in the construction of new apartments. There are two phenomenons that have really driven that. The credit for developers, and the second is credit for investors. Both those phenomena are coming together. We are seeing now approvals for building of apartments slowing down. Down 23 from their peak. This story is being addressed by regulatory action. Out,rms of how that plays we would be expecting to see flats in the apartment market, particularly those supplied. Brisbane flags more Warning Signals on our radar than sydney in particular. Rishaad what about perth . The end of the mining boom there are couple years ago saw house prices in freefall at one point, didnt they . Guest we still are unfortunately seeing a decline in housing prices. We are seeing a post mining boom through the economy adjustment. The 15 year charts, we can see. He commodities boom unfortunately, we are still unwinding some of those excesses that played out. If we look at the perth property saying strength fall five or 6 . The real surprise for the markets would be the extent to which supply comes into pockets of brisbane. There has been significant investment in apartments. Also into those areas of the melbourne markets. There is significant supply still coming through. At the same time, the impact on retail values is a concern. For those who are looking to park money, certainly also domestic. Rishaad what is the readthrough for the economy as a whole . People who have been using their houses as a bank effectively. Guest that is the concern for us longerterm is we look at wetralias Balance Sheet, have the second highest debt levels as a share of the economy behind switzerland. I dont think that is a spot we want to take dominance over. The concern is if we see a flattening out of housing prices, we will see ongoing weakness into 2018. That Balance Sheet is skewed toward what happens on asset values. That is the mechanism we are concerned about. The dis has recently released some research looking into the impact of highly leveraged Balance Sheets and the draghi that has on growth draghi that has on growth. Thank you very much indeed. Daniel blake for morgan stanley. Very excited about this function. Let me show it to you. It is absolutely awesome. Go back and have a look at the interviews we have just been doing, and you can have a look at some of the charts we have been covering as well. If i look at that one here, we can bring that one up as well. Go back and revisit some of the interviews you may well have missed as well. That is tv. This is bloomberg. Rishaad intel says it will spend 7 billion to finish construction of a Semiconductor Chip factory in arizona. It is the latest of companies to talk up u. S. Job plans. Got the details from new york. Intel ceo visited donald trump at the white house wednesday. In addition to that 7 billion factory investment, he said 10,000 new jobs will be coming to the state of arizona. Thank you mr. President. It is an honor to be here today representing intel and to be able to announce our 7 billion investment and our newest, most advanced factory in chandler, arizona. We will be completing that factory to make the most advanced seven millimeter Semiconductor Chips on the planet. Correspondent he credited mr. Trumps tax and deregulation policies for making it easier to manufacture in the u. S. That 7 billion investment was already planned as part of the 12 billion budget for 2017. Construction on the chip factory had already begun back in 2011. Intel shares have popped almost 1 higher, but fell back to the flat line by the end of the day. In san francisco, no ruling wednesday from the ninth Circuit Court of appeals. A threejudge panel is still weighing on whether to unfreeze mr. Trumps immigrant travel ban on seven majority muslim nations. That did not stop him from weighing in. He says the law is on his side. He said quote even a bad High School Student would understand. On twitter earlier he said if the u. S. Does not win its case, we can never have security and the. It is rare for a president to weigh in on a pending court case. Said ith Circuit Court would have a decision sometime this week. Donald trump was also tweeting about his daughter and nordstrom. He said my daughter ivanka has been treated so unfairly by nordstrom. They came after president ial fire after pulling if architects rand. Sales have pulling ivanka trump s brand. Sean spicer said nordstrom is targeting her brandon that is not acceptable. Ramy inocencio, bloomberg news, new york. Rishaad up next, were looking at the prospect for mergers and acquisition activity this year. It is almost 10 00 a. M. In singapore, 1 00 p. M. In sydney, and 9 00 p. M. On the eastern seaboard of the United States. Coming toad salamat you from bloomberg headquarters in hong kong. This is Bloomberg Markets asia rishaad Singapore Airlines said to be near a 14 billion deal with boeing as it takes the fight to rivals. China balances competitiveness. Japan business making up for losses at sprint. Of course in the next 60 minutes, live in the major financial hubs from beijing, sydney, and tokyo. First of all to singapore, david inglis, and the markets. David lets look at the open in jakarta,. 1 . Malaysia is close to today. , but these four markets, not bad at all, some momentum coming through. Youre looking at the philippines, nothing expected from the bsp. Volumes are picking up, so a Silver Lining given how flat the markets have been this week. Stocksvier weighted pulling the msci asiapacific down. Lets have a look at the nikkei australiaryen 1. 12, standing out to the downside. In australia, it is the mining shares. Has a group, we are down 1 for that group of stocks despite the fact gold mining stocks are on a tear. Of ashows you how much pullback that iron ore miners have on the index. Down about 1 on materials in sydney. Taiwan, highest level since june. Some stock movers we are dealwing, a potential maybe, looking to unload its tsingtao. Hshares, there is a project in south africa between the company and mitsubishi heavy, a pricing adjustment that mitsubishi says you are with this money for that. Hitachi said there is no legal basis for that liability. That said, markets 7 down on the shares. Simple story here. If you look at the earnings projections, well short of what we are expecting from the company. , some rating changes from analysts. How to say this . There we go. I know you know how to say this one, but that said, some changes in analyst ratings. Rishaad thanks. Over and join haidi lun in sydney with first word news headlines. The senate has confirmed the Jeff Sessions as attorney general after more than a day of contentious debate. The 5247 vote in the republicancontrolled chamber follmann 30 hours of debate. Democrats said the alabama senator was too close to President Trump and would not protect voting zen civil rights. The white house says President Trump has written to his chinese counterpart, saying he looks forward to a constructive relationship that benefits both countries. The president has not followed through on campaign threats to label beijing a currency manipulator or impose tariffs on chinese imports. And jareder Ivanka Kushner have recently visited the Chinese Embassy in washington. Theresa may closer to beginning brexit. The bill was approved by 494 votes. The draft law now goes to the house of commons, a final vote expected on march 7. Intense competition and all strays Telecoms Market gets squeeze profits for singtel, profit narrowing to 466 million, down from 472 million. The company says strong Cost Management and investments to build out its capabilities. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Boeing said to be the front runner as Singapore Airlines closes in on an order for 35 widebody aircraft. The airline is looking to renew its fleet as it takes on rivals. Is a hugemin, this deal, not too bad, the average age of their fleet is a. 4 years, but i guess by the time these planes come on and are delivered, they will be that much older. Haslinda they could be slightly older than that. Theou look at the bulk of planes belonging to Singapore Airlines, about 10. 5 years, so it is about time. By the time the planes, they will be even older. We are talking about a deal worth 14 billion. People familiar with the matter say they are looking at two models, one of them is the new jet, longen nine range aircraft. Also the 78 710, the longest dreamliner model yet, the most expensive to date, and it will cost more than 300 million at list price. Fleet renewal. Ep renewa also a way time come to win back business from firstclass customers from the gulf carriers, the big three. Singapore airlines to an extent has always been among the first to try things out. The concorde, the a380 superjumbo, perhaps it is counting on the first mover advantage. Ishaad how critical then this order from Singapore Airlines . How critical is it for boeing, and why . Boeing has been developing these new, high profile models. Airs order may prompt other airlines to do the same. Countings said it is output for its current models as the space gets competitive, really hot. It is not just about boeing and airbus, even the chinese are trying to get in on it, expect nobody jetnarrow this year, eight years in the making, produced by a state owned company. It was scheduled to take to the skies in 2015, but has been pushed back several times. It is better for boeing to secure this deal. Rishaad thank you very much indeed for that. Into may have got the yuan a sweet spot boosting the countrys competitiveness, while neutering any claims of deliberate currency manipulation. Tom mackenzie is looking into all this. Was it luck or was it designed . Certainly a bit of luck in that the u. S. Dollar has some goodand probably currency management on the part of the pboc. We have a terminal chart that illustrates this nicely. Versus a tradean weighted basket of currencies, and it has weakened almost as much as strengthening against the u. S. Dollar in the same time. This is resulting in two benefits. One, exports become more competitive, particular areas like me euro and japan. And it makes more difficult for trump to follow through on the promise to label china a currency manipulator. Still looking for some clarity from washington on this. We did hear from the nominee to become the u. S. Ambassador to china saying that trump was surprised at how much strength , about 1. 4n the yuan percent this year. We will get some more clarity on their position at the latest by april, when the treasury publishes its Foreign Exchange reserves. Another point, that fixing today in the yuan, the strongest in fixingan two weeks, around 6. 87. Something, youe could argue here, but any thoughts or ideas people are giving you over how long it lasts . Tom it is a honeymoon that wont last very long. This is what most analysts are saying, but there is some nearterm strength to this. Bm say it is a near term view and expect the dollar to weekend, and that there is still a lack of clarity over those u. S. Fiscal stimulus policies. That may benefit the yuan, and you may see it strengthen further. Validrd chartered makes a point, that chinas legislature will meet in march, the National Peoples congress, and policymakers wont want to see a a lot of volatility leading up to and during that event. There are competing pressures on , capital controls, a drawdown in fx reserves, and we have seen regulators looking at currencies, and in the last few minutes regulators are saying to exchanges, we will close you down if you dont stick to the relevant Foreign Exchange regulations, another consignment the policy level that things like crypto currencies being used to get around and circumvent capital controls. We have seen a large number of traits in china hedging against yuan weakness, so another interesting line on that. Rishaad thank you very much. That is Tom Mackenzie in beijing. Still ahead this hour, President Trump slot for late night tweets has raised to twitters global profile, but can that translate into a bump in sales . We preview fourthquarter earnings. Rio tintos chief executive saying he is setting the bar high when it comes to m a. That is on its way. Rishaad a quick check of the business flash headlines. Bloomberg being told that wells fargo may with hold bonuses for top executives, including the chief executive tim sloan. The business was slammed by last years fake account scandal and is board this ghost emanating annual incentives and is likely to make a decision this month. Wells fargo was fined 185 million for opening accounts without permission. Paypal under pressure, subpoenaed by the doj in relation to antimoneylaundering filing,ations, a 10k the company saying it has been asked for information and is unable to predict the outcome of that investigation. 354 billionss dollars of transactions in 2016, with half the boy them overseas. Interested in tsingtao. of china singte it is worth 1. 2 billion dollars based on the current price in hong kong. It would not be the first four carlsberg, which owns 60 of the rival brewer. You are looking at rio tinto share price, the minor announcing strong fullyear results, bigger dividend, and a surprise share buyback, and investors are unimpressed. Paul allen has the details. Did they deliver . With the share price where it is, one would assume not. Paul it is hard to see anything bad in these results come underlying profit up 12 , 5. 1 billion, the dividend, consensus was 1. 44. We got 1. 70, higher than expected, and that surprise aare buyback worth significant number as well. Inevitably the commentary turned to m a, and Jeansebastien Jacques was quick to tell everyone to calm down. Opposition has not changed. It is about smart buying. For us to consider m a activities, the threshold is high and the alignment has to be the right one to ensure we will be able to build value for shareholders. We did see brio pop up in early london trade after these results were announced, but finish lower. We are seeing the same thing in australia, currently off about. 5 . Rishaad what sort of signal does this send about the earnings season for the rest of the miners . Laid down a marker in the sand, hasnt it . Paul it sure has. Well hear from bhp and a couple of weeks on february 21, analysts expecting an eightfold increase in underlining earnings to 3. 4 billion. Metals reports a day after that. It has run up 36 in the past six months. . 12,st dividend was perhaps investors expecting more this time around. Shows the analysis big miners seem to be awash with there are expectations of little might come their way. Rishaad thank you very much indeed for that. Paul allen in sydney for us. Just ahead, we speak to jp morgan on their outlook for asian mergers and acquisitions. Deals over 1 billion in size doubled last year as Chinese Companies went on a shopping spree, but with the regulatory landscape changing, is that trend likely to continue . Morgan has advised on some of the biggest deals this year. Thank you for coming in. About chinaking here, now, how do these curbs on capital controls affect what they want to do in the m a space . It will limit some activity, but we are bullish on crossborder m a. Officials have been clear that businesses are strategic, if people are pursuing acquisitions of offshore entities that are core to their business rishaad how do you get around them . Guest what you mean . Rishaad capital controls. Guest they are focusing on acquisitions that make sense and are consistent with the business that is buying them. The second is managing capital controls for fx reasons. In terms of capital controls, if the businesses they are buying offshore are deemed strategic, there is this whole initiative to go global in china because the chinese economy will only become more competitive to the extent it acquires new technologies, new markets, and knowhow from overseas, so this is strategic to the overall economy. If you are buying something that makes sense, you make it capital, but it will take time. Businesses looking to buy things overseas will increasingly look to finance off the cash flows of the business they are buying. , ok, so they identify strategic assets. Lets say it is in the u. S. Do you advise them on that and do you say, hold on a second here and we do not know whether president donald trump, what he makes of this and what his policies will be . Question, butat depends on the sector, the nature of the business, and the nature of the target. If it is consumer, nine business to business enterprise, of National Security and, it is probably less of a concern. Rishaad cutting edge technology. It depends on what the Cutting Technology is. That is a sensitive area. Sellers, American Companies willing to sell to a chinese company, ask two questions. One, what certainty can you give me that you can raise the capital to affected the transaction. Two, what clarity can you give me on how long it will take to get Regulatory Approvals in china. So i think those things will complicate deal transactions. Rishaad now, do we know what direction this committee on Foreign Investment in the u. S. Is going at the moment . Are you getting any clues on this . Guest it has historically been bureaucratic process that has not been used politically, right. It has representatives from all different departments in the government. Itcould be politicized, but has never been. Obviously there are political pressures that can become apparent to congress and otherwise, but we do not have, the Treasury Department has yet to be staffed yet, let alone clarity. Rishaad lets talk about m a in this part of the world. The thing is, we talked china, but what about the rest of the asiapacific at the moment . We have Many Industries in dire need of consolidation. Do we have any ideas which countries and businesses people should be looking at . The level of activity in japan, where japan needs to be doing crossborder deals, the need to diversify and advanced technology and capabilities, a lot of that in australia, so those of the three big pillars in asia, china, australia, and japan, and i think you will see a pickup in activity there. There are two things going on, yes, opportunities for mature,ation as markets but there is also the need broadly across asia to enter other markets, acquiring new technology, acquiring knowhow in a global and competitive economy. Rishaad what about markets like , otheria, so many banks countries seem to be overbank as well when they seem to have limited take up with people who have Bank Accounts . Fort there is opportunity consolidation of banks across the region. Oft tends to be a function maturing economies, and you will see that. Im not sure i necessarily see a lot of consolidation among Financial Institutions in the near term here. Rishaad what are the other Industry Groups you have identified . Continue to see consolidation and technology, particularly the Electronics Supply chains around semiconductors. The chinese are eager to buy businesses overseas, but it is a yvonne Global Industry with companies in europe, the u. S. , and other countries. India, here you have had a rash Equity Investments in Internet Companies that have not performed, so you will see consolidation there within the internet industry. I think you will see that in china also. Rishaad as well. Thank you very much indeed. Just having a look at the prospects of mergers and acquisitions activity, looking at china and how it looks to strategic Assets Abroad and gets around some capital control rules we have been talking about , capital curbs, i should say there. Right, coming up, on the other side, we sift through softer banks latest results, another man busy when it comes to m a activity. Also making big promises to president donald trump. We are looking at what the future holds for him and the future earnings as well. This is bloomberg. It is 10 29 a. M. In hong kong. I am haidi lun in sydney with first word headlines. President trump says his authority to limit immigration should not be challenged by the courts. Enforcementlaw officers, trump argued he had the power to stop the entry of any class of foreigners. Eight panel of judges may decide this week on whether to in reinstate the ban. On debt is extending to the shortterm paper market, smaller lenders using it to fuel growth. 140 5 banks found billion of deposits in january, down 33 from december, and that is raising concern that weaker lenders could face cash crunches or even missed payments. The pboc tightening measures are set to be making things painful for smaller banks. At nz cap records low kept rates low. Thernor Graham Wheeler says International Outlook remains uncertain, restricting the Central Banks options. New zealands economy is growing at a pace of more than 3 , and that is fueling price pressures. Headline inflation has returned to the target band and is expected to return to the midpoint of the band gradually. Longerterm Inflation Expectations remain well. Nchored at around 2 Monetary Policy will remain accommodative for a considerable time. Numerous uncertainties remain, particularly with the International Outlook and policy may need to adjust accordingly. Tidi shares in akata down after reports the airplane backer airplane airbag maker will have charges of 1 billion this year. Akata has forecast an aftertax profit of 175 million, but this could lead that being revised down to a loss. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad well, indeed, you are watching Bloomberg Markets asia. Japan shutting out the morning session. Heres david ingles. David ending the morning building up some momentum, dollarin pushing towards 112 point 30, japan a laggard, but now way off lows today. We are close to highs of the day. Since june highest 2015. A lot of that is the apple trade. Hong kong, hshares in ticular, not a single every single stock is on the way up. , thet makers, carmakers insurers, take your pick. This market has gone from strength to strength, the fourth straight day of gains for the hshares index. Taking us back to the highest level since october. Flip the boards, currency markets, kiwidollar falling the most across asiapacific currencies. When the dollar is on the way up, and curious because there is a divergence between this Dollar Strength and where yields are going. Yields are falling, dollar on the way up to kiwi dollar leading declines. The 200 day moving average, above that at the moment. 80. , 106, bitcoin, this is a dollar spot rate. Not much of reaction on news of the pboc basically, the pboc met nine bitcoin exchanges midweek and basically told them you must , sufficee rules, forex to say, dont do money laundering, against the law. Not exactly a lot of details, but there is a link to the statement and i will be looking at that later on. Kerry quickly, i look at the bond markets. Bonds are falling, to 64 on the aussie 10 year, down as much as s, and gold holding above 1240 at the moment, highs since november, and we are watching coffer shares decline. Not as much as yesterday. Chile, theead to headquarters of the largest bhp, labor run by action there. Analysts saying that has been priced into the copper price at the moment. Prolong, we might see another leg up for copper. Goldman sachs calling for higher copper prices in the months ahead. , whatd softbank shares we have here is thirdquarter tofits of 814 million, up after announcing a 50 billion investment in the United States. Explained how he will keep his promises to President Trump. Billion and 50 50,000 job commitment when i met up trump. First, we will set a new Satellite Communications venture and florida, hiring 3000 people, and we will create 5000 positions in sprint in the u. S. , so we will have job cuts overseas, so we wont see any cost. Rishaad rishaad peter hellstros more on this from tokyo. What do these earnings tell us about softbanks business . The business in the u. S. , the sprint business, continues to be challenging for the company. They did add prescribers and the last quarter, but the business continues to lose money. In theead has fallen market, number four behind tmobile. For softbank, the Japan Business is stable and profitable, so the profits from the wireless and Internet Business in japan has given them the cash they need to make the investments they are making going forward. They still want to clean up the Masayoshi Son and talked about what he has been doing and signs of progress in sprint. Havead what else did he to tell us about when it came to these earnings . Peter it is interesting. He did give this conference after the earnings yesterday, but very little was about earnings. He is focused on the future and is putting together this fund. Raise 100 billion to make investments in the future, and he has talked about how his time horizon is longer, hundreds of years into the future to make sure they are making the right investments today to capitalize on these investments in the future, so e internet of things, singular do, so looking pretty far out at this point. Ok, what do you make of what he had to say about his pledge to donald trump . Many companiese talking to trump about the jobs they will bring to the u. S. They all need to be taken with a grain of salt. In the case of the satellite company, softbank is making a 1 billion investment in a company in florida, and he talked about creating thousands of jobs there. The company is still a start up and still needs to get it satellites in the air and for its business to take off, some we think will be contractors, and that is if everything goes according to plan. In terms of the jobs that at sprint, sprint is now smaller than when softbank bought the company, so overall, the numbers are trending down and they will add 5000 jobs. It remains to be seen where and what kind of jobs, but he sounds dedicated to adding these jobs in the u. S. As he talked to the president about it. They had a press conference in december where they talk about these plans, so Masayoshi Son sounds like he is committed to that. Rishaad thank you very much indeed for that. That is Peter Elstrom intel. Spend 7 billion dollars to finish construction of its Semiconductor Chip factory in arizona, the latest in a series of companies to talk up investment and job plans in a meeting with President Trump. Not the only is one. Ramy inocencio has the details from new york. Ramy intel Ceo Brian Krzanich this is donald trump wednesday, and in addition to that 7 billion factory investment, 10,000 jobs will be coming to arizona. Take a listen. Thank you mr. President. It is an honor here today representing intel and to be able to announce our 7 billion investment in our newest, most in chandler,ory arizona. We will be completing that factory to make the most advanced Semiconductor Chips on the planet. He credited tax and deregulation policies for making it easier to invest in the u. S. Later, that 7 billion investment was party planned as part of the 1 12 billion budget. Intel popped higher almost 1 , but pulled back flat line by the end of the day. In san francisco, no ruling from the ninth Circuit Court of appeals. A threejudge panel is still weighing on whether to reinstate President Trumps travel ban. Did not stop him from weighing in. He said even a bad High School Student would understand. U. S. Itter he said, if the does not win this case, we can never have security and safety. The ninth circuit said it would have a decision sometime this week. Donald trump also tweeting about his daughter and nordstrom. He said my daughter ivanka has been treated so unfairly by nordstrom. The retailer under fire after brand. Ivanka trumps sean spicer said nordstrom is s, and targeting ivanka that is not acceptable. Nordstrom rose 4 by the end of the day, its biggest jump in the past two months. Right, just going to bring you up to speed with a new feature here as well. Bloombergs new Interactive Television function, and it is absolutely awesome. You can find it just go to tv. Beway, you will not only able to watch us live, but watch previous interviews and dive into any securities we are talking about as well. Of the be part conversation by sending us an instant message during the show as well, so that is what we have at the moment. This is for bloomberg , tv , donly check it out on your terminal. Up, President Trump is an avid tweeter, but will his use of the platform help the companys bottom line . Of twittersahead latest earnings report. You are watching bloomberg. Investors and thinglists have been more attention to twitter since President Trump took office. Totter itself only expects just turn a profit in the year ahead, so what can we expect from earnings thursday . Here is a look at todays numbers dont lie. Rosalind jack dorsey says his goal is to get the company to start moving this year. This is net income on a cap basis, analysts dont expect twitter to be positive until 2019. Jack dorsey is cutting jobs and restructuring as he tries to reach his goal. Twitters daily and monthly active users rose in the third quarter. Despite recent gains, we have seen monthly user growth stagnate compared with previous years. And userleration growth is causing Advertising Sales to sag. They make up 86 of twitters revenue. Overall, sales growth falling to single digits, and Bloomberg Intelligence has described this quarter as critical. Competition from instagram and snapchat may cause twitter global ad spending to decline. Twitter global ad spending to decline. We did see a again in the third quarter, but reported its first ever drop in the u. S. , and all these factors have weighed on the stock since the ipo. Are creating a Second Chance for twitter to gain and retain users. Jack dorsey took some concrete steps. Its failure to curb harassment has been a main complaint of users and was one reason it failed to attract a bid from disney exploring a sale last year. That isnt look at what we will be watching when twitter releases its earnings before the opening bell on thursday. Anhaad has twitter seen increase in users due to this trump effect . Caroline hyde had a look. Trumps use donald of twitter is unprecedented for a world leader. The president s personal account is roughly 24 million followers here and compare that to his neighboring leaders, the mexican has 6 million, and the canadian Prime MinisterJustin Trudeau has less than 3 million. Barack obamas personal account has four times as many followers , but half as many actual tweets. Trump built his Campaign Around the idea ofs taking frankly to people, and twitter provides the ideal platform. He tweeted more than 242 times ,ince Inauguration Day directing the news flow in 140 characters or less. Share hisit is to schedule, sometimes to discuss foreign affairs, and sometimes none of the above, but with all the added attention the president brought to twitter in the past few months, is the company attracting new users . To calm score, reporting the mobile app users fell 6 from the year before, and 5 again in december. For context, snapchat had 82 million, facebook twice that. Twitter haslight on not helped Investor Sentiment much either, shares flat since election day, and on the days trump tweets something particularly in gauging to users , twitter is not usually rewarded by a bump in the stock price. For example, last month, this tweet from sunday, january 22, liked by 400,000 users, but when trading resumed the next day, shares closed flat. Ubs Digital Research downgraded twitter from buy to hold, citing muted growth among monthly users. So it twitter the company is not benefiting from President Trump, who is . Perhaps the democracy . One twitter analyst wrote in december twitter is the lone platform where people worldwide can have a voice to serve as checks and balances on the media. We may not see it in revenue just yet. Haad karen hide their Caroline Hyde describing President Trumps use of twitter. Coming up, white investors may be keeping new compartments empty in the middle of an austrian construction boom. Details are on the way. You are watching bloomberg television. Rishaad you are back with Bloomberg Markets asia. To buy cigna block. Its earlier bid for humana was made andand would have them the largest by membership. The Public Investment fund in early talks for a potential beale with no deal with no agreement reached. Texasbased six flags was already in discussions about opening its first attractions in saudi arabia. Opponents of the controversial Dakota Access pipeline have called protests across the United States have the army said it will grant the easement needed to finish the line. The finalo get goahead for completion after President Trump asked for a speedy approval. Protesters argued the pipeline would damage land significant to native heritage. Biggestr of the worlds shipping line has repeated concerns about a u. S. Potential trade war with china. Esk ceo says it would have had a negative consequence on its business. Ersk is predicting the Global Shipping market will grow 2 to 4 this year. Industrys Housing Association reporting slowing home sales, growth 2 rise in december after a bomb by 6. 1 in november. Sydney and melbourne the big drivers of growth, where there is a frenzy of highrise developments. Paul allen reports. Looking at apartments and melbourne, she is not an investor. She is a researcher. A reportr, she writes exploring whether anyone is actually living in these new buildings. Are buying them, and the only way to maintain the value of an apartment is to keep it as new as possible, and when yields and melbourne are at money lows, 2. 8 3 , the investors are getting from renting apartments out is not worth it. The annual report uses water use tartar to gauge whether they are homes or land banks. 82,000 properties in melbourne, about 5 of the citys total housing stock, is using less than 50 liters of water a day. The apartment buildings keep appearing on melbourne skyline. Last year, there were more this marketrk in than many others combined. All strays urban Development Institute rejects any talk of a glut, saying melbourne will need 55,000 new homes every year until 2035. Corporation completed more than 2000 apartments in the central city last year, with another 2700 planned right across the street and says hires arent just land banking. And wethey are tenants, contacted them prior to the interview, and they have confirmed 98 of apartments are occupied, so in our experience, it is definitely occupied. Believeme economists australias Housing Construction boom is now winding down. We are forecasting price declines in 2017. We think this will partly reflect signs of oversupply in those markets. Paul ultimately the market will have the last word on whether this boom has turned to a bust. So, a bit of, pressure on house prices in australia. Right, the trading day, Political Uncertainty driving Financial Markets again. The alpha once more, and this is where we are, hang seng up. 4 , shanghai composite moving to the upside there. , hsharesina shares in hong kong, on the up for a fourth day as well. Andwhere, this is the kospi there in singapore, the market getting a lift by. 7 . Well, ahead on bloomberg, shery. Hn updating us that and more is coming up. From our studios in new york city, this is charlie rose. Im filling in for charlie rose, who is away tonight and roger stone is a longtime advisor and friend to President Trump. His new book is called the making of the president 2016, how donald trump orchestrated a revolution. I am pleased to welcome him to this table. Welcome back. Youve know the president for how long . In 1979 when i came to new york to organize Ronald Reagans campaign for president. I was introduced to President Trump by his attorney, roy cohn