tv Bloomberg Daybreak Asia Bloomberg November 20, 2016 6:00pm-8:01pm EST
♪ betty: talking trade -- asia-pacific leaders a donald trump must not be allowed to derail closer global integration. yvonne: china shakes at the accepted script, claiming betty: the mantle of the world free trade champion. and thousands rallied for and against the korean president as officials say park did collude over illegal access. yvonne: beijing ramps up the pressure on crown resorts with employees placed under formal arrest.
asia.s daybreak in newi'm betty liu york. it's just after 6 p.m. on this sunday evening. yvonne: and it is just after 7 a.m. here in hong kong. it seems like the dollar is once again king. seems to be certainty the fed is going to raise rates in a couple of weeks time but asia is starting on a bad note with dr. futures heading lower this morning. betty: you nailed it on the head. it looks like this interest rate hike is baked in and with the help of the dollar, it's a new indicator of what traders are thinking, what the investment sentiment is right now. pretty bleak over in asia. alsoe: president obama speaking and we will get to those live. let's go to new zealand where we
see the aussie dollar getting crushed by the stronger dollar story and 70 u.s. cents for the kiwi. the aussie has been down 3% in the last four sessions and oil did rise on friday ahead of this opec meeting. flat. pretty much it's the comeback of 2016. yen bears as well, partying like 1988 come with the dollar sing the biggest two-week drop against the yen. let's see how things are looking up in the region. the early start seems slightly mex. how was i going to play out for wall street? betty: futures will start trading in about an hour and we
frombe taking a big lead where europe will be trading in that few hours, so we will keep our eye on how the futures open. we closed a little lower on friday. but let's discuss the aipac meeting. yvonne: the meeting is ramping up after a move that saw china trying to take the global lead with the president saying he global commerce and cooperation. let's go live now to president obama. it is probably his last international press conference. let's listen in. president obama: like everyone else, we will have to wait and see. aipac companies do present opportunities. it's been a big feature of this
meeting. a global integrated connie helps and he says the answer is to do trade right with strong courseds and saying of they can help the company's two. u.s. will still have a vital role to play in the press conference is still ongoing. talking about trade and china possible role in that, he said boost global trade and says you must slow down and saying attempts to exclude each other must be rejected. in the phase of president-elect donald trump saying he would tara up agreements between the u.s. and other countries. been an area of concern
but while china has push for other countries to open up other markets, china has been criticized for not opening its economy to other foreign players. obama has predicted the tpp would open up the opportunity for china to step in and become a driver of rules when it comes to global trade. said giving upas trenduld be giving up its specific leadership role. beijing is also posting for its own agreement. guest: for some time, they have been pushing for the regional economic partnership in this fading tpp essentially gives china a much eager opportunity to push its own trade pact with asian nations, so would be the first ever pan asian trade deal.
it involves 16 companies representing about 30% of global trade. it is a little smaller but it economic have its own reason to say china's level is a lower level than tpp would have the. betty: we also saw obama meet with vladimir putin. what happened here? it was a very brief meeting. obama did go meet many other world leaders and did meet putin very briefly. we don't know the exact content of what they discussed, but he was seen saying it was ok and president putin did show some reaction on his face. this is perhaps one of the few
times they have met in person. and now that obama is the outgoing president of the u.s. ,etty: as we were talking about obama is speaking in their are more headlines coming from his comments, saying the reality would force president trump to -- would be confronting realities you won't anticipate, speaking from direct experience, noting trump is going to have to adjust on some of the issues, some of us hot topic issues he campaigned on. we will continue to monitor these comments at the aipac conference in lima. let's get the first word news right now. resorts iswn something in sydney on reports that three us trillion employees have informally arrested in china.
a fourth australian and 13 other china-based staff are in custody. one person was freed on bail earlier this month. it is not clear what charges they may face. german chancellor angela merkel is to seek a fourth term in office and say her experience will help and what are exceptionally difficult times. then contest federal elections next fall. germany's first female chancellor and president obama has called her his closest international partner. former french president nicolas sarkozy has failed in his did to lead the center-right in the next election. it allows a base for the republican party leadership for
challenging marine le pen in the presidential election. thousands of people marched on sunday dementing the resignation minister in malaysia. an estimated 50,000 protesters renewed their calls to step down. he will not quit despite allegations of embezzlement. that was your first word news. the president of south korea is under more pressure to quit after prosecutors say sheep played a role in and influence peddling scandal. our bureau chief from soul joins us now. give us the latest on this story. indictmentsrs filed his longtime friend into
former aides. a described the involvement as significant. basically dealing a blow to the president. a president in office is being investigated for a crime. prosecutors cannot charger because she has presidential detaily but it went into andt an extortion scheme their was pressure for some of companies, like some sun and 10 day to donate tens of millions of dollars. thatnk it was estimated there were tens of thousands of dollars and evidence she siphoned out most of those for her personal use. betty: we are showing the video
now of people on the streets over this issue. is there a strong case for impeachment now or will lawmakers actually allow her to resign? lawmakers feel like they have a strong case for impeaching her. the question is will they have enough votes in parliament to do so? they have 300 members and they need to third of the vote. party, they would need 30 or sore -- 30 or so more from the ruling party. they are pressuring her to resign. as we noted before, there was a and 600,000est appeared according to organizers. public outcry is growing.
of uncle down in a press conference where a spokesperson said the allegations were speculation and imagination. it does not sound like she's going to step down anytime soon and it's going to be a drawnout battle for a while. thank you very much. the week ahead on wall street is likely to be dominated by speculation over the makeup of donald trump's administration. investors will have to like at that meeting and the holiday shopping season. there is some speculation that former trump riddick, mitt romney, could have a position in the trump administration. nextnd the talk of the marine is grabbing headlines right now. we do know that trump moved his
interviews to new jersey at a an ex marine may head defense. there was a positive interview with him. as hel mad dog madison, is called, is being considered and trump even tweeted out that he is a true generals general. was a big romney, he trump critic. he's being talked about as potential he leading the state department. according to mike pence, romney is under active consideration. in the past, he has called trump a phony and a fraud, but they were seen patting each other on the back and having a positive meeting. very interesting development. streetng with wall veteran wilbur ross, being considered both for commerce secretary and treasury secretary
and taking meetings were blackstone managers jonathan gray. betty: incredible, that meeting between trump ann romney after the exchange of words. not to forget black friday is this week. su: this is going to be closely watched. pacemists say the october and new home sales may have eased a bit, but it should be strong. we should have the durable goods report and the countdown of the fed meeting makes this kind of data seen as supporting what is a believed by wall street that they will raise rates. i mentioned black friday. we also the -- stuff ourselves
with turkey and it kicks off the online sale season. : the question is how much will it take out of online sales? we look at the growing role of online sales. it has been almost a straight line rise. the kickoff is friday. that's when the madness begins and the shop till you drop crowd will be out en masse but we have cyber monday and it will be then that we see what portion of sales are in the brick and mortar and her has been a shift there. outdone,m, not to be are holding a 13 day discount, so they may come in with some interesting results. yvonne: thank you so much. still ahead, what is driving forecasts of a four -- further weakening in the currency? free tradempions of
betty: this is daybreak asia yvonne:. i'm betty liu in new york. shaking up the established order, positioning itself as the world free trade champion. with donald trump threatening to torpedo the transposition -- transpacific deal, beijing may be the next best thing for economies in asia. hsbc'siscuss that with economist. b thattalking about plan is seen now when it comes to trade policies. is it a good enough alternative? some say this is a low level version of tpp. guest: any type of position is
likely to be good in providing stimulus, but not as good as tpp in anyways. tpp was a good conduit to reform the economy and it was a reason for vietnam and malaysia to make them a bit more competitive. they don't have that kind of tariffut it would allow services and investment, so it is an alternative that works. not having the u.s. into india and, but having china, the mixes very different as well. how did that change the landscape in this part of the world? guest: this would be the first time china and india are in a trade deal, similarly, japan and china, it allows for significant
parts of asian trade and adds complexity. india, there are fears that the country already has a trade deal with china and as part of the reason why there have been hiccups in negotiations. they are still hoping to accelerate it. like china isms rising to the occasion and would stand to benefit from a donald trump presidency. but can they claim the free trade mantle as the champion given its military clout and territorial ambition? guest: despite political considerations, there's always free trade and trading negotiations. andink it helps the economy what we heard from this weekend 's meeting, china wants as many involved as possible. actions,look at recent they are in favor of continuing
free trade. in the background of all of the sword talking about trade and relations in the u.s. and asia is the dollar and how much it has outperformed this year given past years. i want to bring up this chart in the bloomberg terminal. it shows how the dollar has performed going back to 2012 and the white line very distinctly and the last few months as the elections got closer and closer, you can see how much the u.s. , it's has performed almost like a straight rise up. how much of an impact is that going to have geopolitical wise? not just with trade. would a strong dollar present some complications.
also, it's a relevant consideration when you look at other types of deals. it can impact financial conditions in emerging markets even if asia looks at her than it did in the past. it's a consideration it will, but it's not necessarily something that would get you into trade agreements. the president was just saying how donald trump is going to be facing some unforeseen asues that he will encounter president that he did not anticipate campaigning. what do you think some of them might be as he develops relationships with leaders in asia? guest: i think probably part of that was focused on trade, how trade deals benefit all parties involved. it impacts certain parts of the population and some don't see the benefits as others, which is why it is easy to foment
opposition to these deals. if the proper policies are pursued and the u.s. has policies in place, if those are used to a greater extent, it can limit some of the negative repercussions. it seems like some leaders might want to make a last-ditch effort to get that back on the table. betty: thank you so much. the hsbc asia economist this morning. much more ahead, cracking down issafe news -- facebook ready to act, it says. this is bloomberg. ♪
fake news has an impact on the u.s. election, facebook has sonysed to tackle articles. let's bring in ramy inocencio. how are they proposing to combat this? ramy: mark zuckerberg says he's going to unveil a series of things, first is third-party organizations and the facebook immediate self to figure out whether news articles are fake or not. posting warnings on whether suspicious stories are true or not. making it easier to report fake news. interestingly, they are going to talk with journalists about how we verify our own information to see how things could work better in terms of getting real truth out to the audience.
all this said, mark zuckerberg has said a lot of it may not work, but he's going to try it and says i want you to know we have always taken this seriously and we are committed to getting this right. are than 90% of the stories true, but there's the 1% and you don't want to be the victim of that 1%. betty: shareholders are still making money. they are buying back shares for the first time? they are looking to appease shareholders right now because facebook has invested in a few properties more in terms of the long game. the details, as you can see, they are going to buy back as and as $6 billion in shares it's going to start in the first quarter of 2017. facebook shares did rise in after-hours trading, so looks
like some investors are happy but it looks like facebook is playing the long game. betty: thank you so much. much more ahead on the developing story around seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. speed always wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business.
yvonne: it is 7:30 a.m. here in hong kong. a live look out of victoria harbour. coley and a winter he six -- 6:30 p.m. here in new york. we're not sure what the markets are looking at because futures will be trading in half an hour. on friday, looks like set to open lower or carry over from some declines, but it has been a cold start to the week so far. watchingou are
daybreak asia. now to the first word news. global trade and the growing fear of protectionism where the seams of the asia-pacific summit in peru. obama heard other leaders say america must resist the isolationists policies put forward by donald trump. new zealand said trump cannot be allowed to put the brakes on economic globalization elsewhere in the world. prosecutors in korea say the president did play a role in and influence peddling scandal, with thousands demonstrating as investigators say they amassed evidence that president colluded with aids and allowed business allies to have illegal access to government. supporters held rallies. donald trump has described former marine corps general
james mattis as the real deal. the former head of central command is in the running to become defense secretary. mitt romney appears to be leading the race for secretary of state. he was a fierce critic of trump during the campaign, describing him as a phony and a fraud. three men with wall street experience joint the president-elect. wilbur ross may be on the short list for treasury or commerce secretary. u.k. chancellor says they face years of uncertainty ahead of the departure from the eu. philip hammond will deliver his statement on wednesday, facing a potential hit from brexit has seen him abandon the goal of balance budget by 2020. they will trim tax revenue, forcing the government to buy more. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. at how the asian
markets are shaping up. >> it is still very early in trading. slid oner u.s. stocks friday and we see that post election friday fade and expect haitians we might see the federal reserve hiking rates as donald trump spends more on infrastructure. but it is all about what president-elect trump will do in those expectations are driving the markets. markets open in asia in the negative and australia reversing three days of gains while new zealand is also falling almost as much. we see new zealand in the negative for six consecutive weeks already. take a look at other futures right now because we see momentum being lost in asian trading and the nikkei which has
been a bull market, futures gaining .1%. we have october trade data coming out in a few minutes all of the markets are in the red, theing .2% and we have president facing an impeachment threat after prosecutors said she had a role in and influence peddling case. chinese futures also in the negative with a recent old rally in chinese stocks. although we see futures trading in the red, they expect this recent rally to continue. that is the picture right now in the early trade in asia. yvonne: what about specific stocks? >> we are keeping an i on new zealand and australia. ,hen it comes to new zealand keep an eye on a kiwi property
group, gaining point 4% after net income they reported just a couple of minutes ago was rising 27%. they reiterated the full anddend guidance of $6.75 the stock is moving right there. and electricity distributor, they are up and coming in line with estimates. we have lots of earnings coming out with bhp billiton down. remember they disaster in brazil, we hear that charges have been accepted and they are appointing a new top executive for acquisitions and investment. so keep an eye on those stocks. what else in the currency markets are you keeping your eye on? >> it is all about the dollar and what that is doing to the
currencies in asia. the two-week rally, the biggest atce 1988, we see the yen 111. morgan stanley say we are expecting a drop from their. one other currency i want to keep an eye on is the kiwi dollar. we see the kiwi dollar losing ground for a ninth consecutive session, down .3%. 6984 which isvel, the july low. do keep an eye on those currencies. forget the fed and the boj, donald trump is in the headlines. with how the president-elect may influence
central-bank strategy from washington to tokyo. we are going to get october trade data in just a few moments. kathleen: we sure are. week yen, line is the even though it was not a huge impact in october is one of the factors driving the japan trade surplus higher. the story right now is all about the weekend and that's a thing people are hoping will improve japan trade. the and weakness really started at rate hike odds with the fed and then we getting so much more . let's jump into the bloomberg now. you can see how this 10 year government bond yields dropping to record lows has then reversed.
it fell 7% on these donald trump inflation views. the fact the bank of japan governor took out his bazooka. they did not have to buy a single bond, but it drove the japanese 10 year back to zero. also weakening the end, bank of america merrill lynch saying they see the dollar-yen hitting 120. getting the be activity industry index. it seems stagnant. industrial activity getting better but other sectors not doing so well. betty: you mention the soaring bond yields which has pushed the dollar up. is that just going to continue that momentum?
kathleen: this has been the in 15 years.ut let's jump into the bloomberg and take a look. bombs in the world, the off two weeks down 4.6%, the chart, except going in the wrong direction. in terms of what is going to noten next, the fed is going to speed up its rate hike, so wait until you see trump's plan. janet yellen was focused on tightening and inflation has been below target for so long that maybe that gives the fed the chance to sit back, relax and not speed up the number of rate hikes they are expected to do in 2017. mario draghi will be speaking to the european parliament. there's a lot of talk about
whether he is going to extend -- extend qe. kathleen: he says euro area and recovery depends. are going to be talking about a lot of this -- the italian referendum. the prime minister, according to the latest survey, they cannot pull ahead for december 4 but suggest the no vote is winning. that would be not so good and would cause the government to fall because of the fact he has pushed it so hard. saying first brexit, then donald trump, next, italy? the markets are watching and certainly global bond markets are. yvonne: thank you so much. shares of crown resorts falling 1.5% after reports that 16 arrested inve been
china over alleged gambling related crimes. let's get to paul allen joining us live from sydney. what do we know on this now? paul: there are three australians caught up and one of them is the head of the international vip program. all of these employees were rounded up and rates on crown resorts offices in china. they have been detained all this time and now they have dan arrested. the so-called golden time for negotiating a release. do we know exactly what the charges are against them now that they have been formally arrested? paul: no, we don't. there are no more details on that in we are not likely to have any for some time.
they could be held for more than six months while police build their case and the charges are going to be known until the police hand their case over to prosecutors. all of this does exist in a legal gray area. it is not legal to market gambling trips to groups of 10 people or more, but it is not illegal to market non-gaming aspects of the casino result -- casino resort. great now.aps not so judging by the limited information, it looks as if crown resorts may have been caught up in operation chain break, the crackdown on the flow of illicit funds out of the country. we see off now, off 1.5%. betty: thank you so much. plasmasw will america famous real estate mogul effect real estate? will ask a proxy agent whose
yvonne: we are counting you down to asia plus first ager market opening this morning. japan futures open as we await those figures just minutes away. minutesess than five way from that, i am betty liu. yen bears are gaining confidence after the bank of japan announced an unlimited bond buyback. the strategy pulled 10 year bond yields back toward zero. it weaken done that's donald trump's election will you will inflationary pressures. yvonne: new zealand's finance
minister says tax cuts are on the table but a stronger than expected economy means that taxes remained higher. despite unforeseen pressures including last week's earthquake, we expect to see budget surpluses. the earthquake reinforce the need for the government to reduce debt. j.k. rowling's movie, the sequel to the harry potter movies, marked the start of a planned five part series for the warner bros. studios. it raked in less than the forecast of 82 million dollars. mortgage rates hitting a 10 month high and treasuries have risen. investors reacting to the trump election victory by pulling money out of on -- going money out of bond. topnext guest is one of the
agents with $3 billion in home sales. us did you see any kind of nervousness or stoppage in the property market at of these elections? guest: we really did. prior to the election, people were nervous and absolutely tired of the election and not sure which way it was going to go. one.s obvious that trump markets were a little shaky and then rebound quickly. it seems to be moving forward. early days,s still but what is the sentiment? is donald trump going to be good for real estate? guest: it is early days but it looks like he is going to begin good for real estate and there are multiple reasons for that. his tax ideology is going to be reducing taxes for the wealthy and that means more money to
employ and buy real estate. he wants to put infrastructure in u.s. cities which will be helpful and it looks like things are positive. with trump, there's always a wildcard and things that are rocky that make foreign investors quite nervous as well. betty: he has been quite rocky for the emerging markets so far. mightrious how that affect foreign buyers who fueled parts of the markets in major cities like miami and new york and elsewhere. it is really early to tell. donald trump had a very strong, opinionated campaign and it will be interest thing to see where he goes moving forward. it's interesting that he has made his fortune in that world
and foreign investment is really important. is ideologicalhe as he was prior, but if he tones down his tune, we'll see more foreign investment coming back. do presidents or policies in washington really have an impact on the residential market? everything impacts the real estate market, so the answer is yes. america is a very safe place to invest, one of the safest places to invest money and buy real estate. that alls the wildcard trump doesn't do anything that's going to scare off foreign investment, i think we should be strong. yvonne: let's look at chinese demand.
iceberg?he tip of the you look at the prices in some of the traditional hotspots, new york city, california, there has been some backlash in hong kong as well. how do you see things right now? is it getting better or slowing? running we have a slowdown in people were nervous with the election and not sure which way was going to go. my phone has been ringing with foreign investment and it seems like people are back on track and 50% is foreign and very solid. we were in shanghai at a conference and people were excited about the future. we are talking about the trade data for october crossing the bloomberg right now. the trade balance has come in at
496.2 million yen. that is a miss. they were looking for a surplus of ¥610 million. -- ¥610 billion. the estimate was for a drop of 8.5%, so that was a miss as well. 16.5%. falling the estimate was for a drop of 16.1%. looks like a miss on all fronts of the trade. we will see how this all plays in for japan futures right now. we have been above that 18,000 psychological level. looks like it could be a good boost when it comes to stocks on this monday morning. dollar-yen weakness continuing at spot dollar raining
04 against the end. with go back to our conversation -- you mentioned the chinese demand. one challenge is getting money out of china for some of these buyers. we see policymakers clamping the fact thativen it continues to weaken against the dollar. how do you factor in capital controls? isst: the more difficult it to get money out of china, the more difficult it will be for china to buy. we had a story last week and despite brexit, we saw a flurry of money going back to the london property market. is that surprising to you? marketshe key financial are where people are investing in from all over the globe, we
see really strong demand in those key marketplaces. personal,w york, on a i'm seeing more foreign buyers than i ever have before, even with the things going on across the globe. is a question in that it is difficult to get money out. yvonne: great to have you here in hong kong. first glance, they would have a lot in common but one is doing better than the other. this is bloomberg. ♪
what can we expect when they report on monday? let's bring in ramy inocencio to flesh this out. expectations are to be reality, we could see a record amount in terms of revenue as well as net income. i want to show you what the $173tations are -- we see million for the third quarter this year. that's the orange line that has yet to be filled in. but ever since they have been reporting, it is the highest since they started reporting. this is definitely the top end. it is also building off of what andened with net revenues advertising that revenue increased on the order of 35% to 45%. , iflso see a record their expectations are to believe,
$.20 a share. we will see what will happen when they start to report at the end of the monday trade. betty: the stock has not been doing well. it has fallen by 20% or so since the early part of october. i did see reports that there could be some profit taking. go into my bloomberg and i want to show you what has been happening as far as the bearishness starting to creep then. this is the analyst recommendation function. cell and thecate a yellows, holds and greens are buys. are seeing some bearishness creep in.
♪ >> asia-pacific leaders say donald trump must not be allowed to derail closer global integration. >> china shakes up to establish order claiming the mantle of free trade champions. >> beijing ramps up the pressure on crown resorts with employees placed under arrest. takes action amid criticism for false stories in the presidential election. hour ofis the second
"daybreak asia". i am yvonne man. >> i am betty liu. we are still getting more headlines from this meeting, a quick note, the president we just heard from him earlier talking about donald trump and what to expect. he also met with the japanese prime minister shinzo abe and cementing that relationship the two have formed and is that going to continue? as we seeuestions these world leaders meet in lima. presidentikely obama's last foreign trip before he let's donald trump take the reins here. he's pushing 40 p p despite the fact that investors seem convinced this deal is dead in for tppr -- pushing
despite the fact that investors seem convinced this deal is dead in the water. we are watching trade data figures in reaction on the markets. seeing all markets in asia trading in the negative except for japan, which is gaining .3%. and bold territory climbing 20% since its june low. yes, you mentioned the trade balance. their surplus missing estimates, coming in at 400 ¥96 billion in stead of more than ¥600 billion. analysts saying this rally may not have legs given that the rally we are seeing right now in three consecutive sessions of gains, four counting today, mostly due to global issues, not necessarily japan global growth and a stronger u.s. dollar. remember, the japanese yen
plunging against the dollar. , losingi down .1% ground. we have that political scandal ongoing, the president now facing an impeachment threat as we hear prosecutors that she was involved in an influence peddling scandal. we are reversing three days of down, while new zealand is point 2%. at the open, a mixed picture, except for japan, surging again. >> what about the forex markets? it's all about the dollar. the dollar surging, and it is about president-elect donald trump's economic policies or what investors expect him to do, so we are seeing the dollar rally for an 11th consecutive session.
with that, we're seeing the japanese yen plunging. loss since two-week we -- the biggest two-week law since 1988, and now trading at 110.81, unchanged at the moment, but the dollar we see the dollar gaining ground, other asian currencies as the kiwi dollar losing ground. at 70.11, unchanged but it has been losing ground for nine consecutive sessions, so dollar strength moving markets here in asia. >> thank you. the apec summit has wrapped up in peru, with china taking up the -- shaking up the establish order. what has been the biggest take away from this meeting? rosalind: we heard from barack obama, and he was talking in what will probably be his last
international press conference as u.s. president, and he talked about trading globalization, a renewed focus on these issues and the flow of goods and services, and this is what he had to say about the issue. >> when it comes to trade, i believe the answer is not to pull back or try to erect barriers to trade live in integrated economies and global hurt ushains that would all, but rather the answer is to do trade right, making sure it has strong labor standards, strong environmental standards. inalind: so this does come the face of a prospect of president-elect donald trump toing in, and he has vowed tear up trade agreements, especially the transpacific partnership. barack obama says he believes the tpp is a plus for the u.s. economy and workers and still believes the u.s. has a vital role to play in a peck. he also said people should wait to's the -- should take a
wait-and-see approach to donald trump. chinadoes not seem like is taking advantage of this uncertainty and take the mantle when it comes to global trade. rosalind: china sees an opportunity. president xi jinping has said he wants to boot traced and -- trading cooperation. is an important aspect for has pushedhile china for other countries to open up their markets, it has not necessarily been so good about opening up its own economy to competition and has been criticized in the past for not opening up to foreign players, and also issues like a lack of transparency, but president obama has predicted the failure of tpp, so if this partnership
does not go through, it could open the way up for china to seize the leadership in trade and other issues as well, and it does look like china is trying to push ahead to do this. >> beijing is already pushing its own asia-wide trade agreement right? talking: they been about the regional comprehensive economic partnership for a few years now. , ande face of tpp fading remember china is not part of the tpp, so it has its own self-interest in pushing its trade pact. this trade pact has already gone through 15 rounds of talks with 16 members to it, all the asian they wouldd represent about 30% of global gdp, whereas the tpp would have taken 40% of the world economy, so now china sees an opportunity for itself to make a renewed push for this, and there have
been indications from smaller economies that they would be interested in this -- and tying this up. >> thank you so much. the developments at apec. now let's get to first word news. >> australian casino operator lower insorts is sydney, down .9% on reports that three australian employees have informally arrested in china. or strain and 13 other china-based staff are also in custody. the staff have been held over a ledge of the -- over a ledge it gambling related crimes. it is not clear what charges they may face. prosecutors say the president did play a role in an influence peddling scandal and korea, prompting calls for her to resign. asusands demonstrated investigators said they amassed
evidence that the president colluded with aids, allowing -- aides. she denies the allegations. donald trump has described a former marine corps general as the real deal as he considers more cabinet picks. the former head of central command is in running to become defense secretary. appears to be leading the race for secretary of the state. romney attack to trump, describing him as a phony and fraud. at least three men with wall the team,erience join wilbur loss on the short list for treasury or commerce secretary. the german chancellor angela merkel is to seek a fourth term, saying her experience will help in which she calls exceptionally difficult times. she will attempt to rain the position -- to retain the position and contest elections next fall. angela merkel is the first
female chancellor, and president obama has called her his closest international partner. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> japan posted a trade surplus for a second straight month in october. the surplus is driven by a continued decline in the value of imports. let's bring kathleen hays in with more on this and what this means for boj policy. it seems like this was a miss on all fronts? think what is significant here is that as you just said this was largely driven by the decline in imports. exports got weaker to china, the european union area the first time in two months weaker to the u.s., but in terms of imports being weaker, isn't that what you would want to see if you are the boj? more importsee
exports over time assuming the yen continues to weekend. that is the kind of thing they should see an welcome. of course, we want to look at that yen-dollar move. thetarted in october when fed rate hike started rising, boosting the dollar, and when president-elect trump was elected, people are betting he will create growth and inflation, boosting the dollar and weakening the yen. ,et's jump into the bloomberg it is moving like 1988, the dollars to week surge after the truck victory, the strongest in 28 years, down 7% in those two weeks after the election, quite a move. the other thing that helped to weaken the yen, the boj led by governor kuroda hit the markets with its fixed rate bond operation. it helped bring that yield back down to zero. that is helping to continue to weaken the yen.
bank of america merrill lynch see yen-dollar at 120. that would be quite a move since we are at 111 right now. >> i wonder what it would be like if it were moving like 1999? have been bond yields pushing up the u.s. dollar, so is that going to continue? this is the worst u.s. bond market selloff since 2001, and rising fed rate hike odds, but also fueled by donald trump's victory. let's go back into the bloomberg now. this is our bloomberg barclays multi-verse index. all the investment grade bonds in the world, two-week percentage change, four point 6%, the largest move up or down on that chart. a measure of how dramatic
it has been. one of the things driving this is inflation expectations. they are at their highest in 18 months. the question is if we're looking at the 10-year breakeven rate, the market expectation, when you get to the u.s. election, boy, that thing goes practically straight up. will a fed move quickly on donald trump? a lot of people are saying the fed like everybody else was a donald trump is talking about a lot of stuff but we have to see what happens before we let that impact policy. the december rate hike still priced in. >> just ahead as well as the european central bank mario draghi, speaking to european parliament, so what do we expect. >> the ecb will be meeting on december 8. on friday, mario draghi said the european recovery still depends on monetary stimulus. people are waiting to see if maybe when the ecb meets, they
will announce more bond buying. the biggest thing is on december 4, the italian referendum, because the latest survey going into this referendum to reform the constitution, which the prime minister has put his political hat on, we are not looking good. and analyst in one of our bloomberg story saying first brexit, then trump, is the next shoe to drop italy? the populism becoming what happens, so i'm sure this is something we will be watching closely here on "daybreak asia". >> thank you so much. on thisking ahead program, south korea's president under more pressure as the influence peddling scandal widens. seoul, be live in korea. >> why donald trump may be more of a dealmaker than a dealbreaker. this is bloomberg. ♪
>> this is "daybreak asia". i am betty liu in new york. >> i am in yvonne man in hong kong. cyber security giant symantec is buying identity protection company lifelock 44 -- $2.4 billion. lifelock has been pursued by other bidders. risen 45%hares have this year, giving it market value of nearly $2 billion. >> bloomberg has been told that secured thek has backing of fellow board members for a second term. the 60-year-old is said to be nominated last month. he oversaw a management shakeup in 2015, but was criticized for not taking action earlier. deutsche bank shares are down
more than 30% so far this year. >> boson international is to take a $185 million stake in portugal's biggest listed bank. the investment will give the .roup 17% of banko commercial it has been on a three-year global buying spree, picking up club med and cirque du soleil. markets, athe december fed hike looks like a done deal. chances now 98%. great to have you. it seems sometimes that rates will never go up. rates are rising aggressively,
it seems like they have gone from one extreme to the other. our markets getting ahead of themselves? >> i don't think so. if he does cut taxes, and that is probably the thing that is easiest to do, you will see a boost to the economy and a boost to eps. eps growth next year if they get the corporate tax rate down to 20%, it would be closer to 20% 500 companies and the current 10% now. too.conomy will accelerate hast a businessman who factories all across the world including mexico and the united states and told me that if they get the tax rate in america down to 20%, he will closes factory in mexico and move it to taxes. >> is there a risk to the timing of this fiscal stimulus? the economy is near full employment. it could possibly overheat the
economy and prompt more hikes? this is a recovery that is seven years old, but it has 10 a much more tepid recovery than any recovery in the last 60 years. it is true the unemployment rate is below 5%, but the 4.8% or whatever it is still means there is 4.8% of the employable workforce that is not working, so no, i don't think we risk overheating here. if you think back to the 1990's, the u.s. was growing at 4%, sometimes those 5% on an annualized basis. your reactionet to those japan figures. even with the equity markets, it has been a dramatic comeback. they are saying it is the comeback of 2016. it compares the two halves of stocks and bull market territory, and we are seeing a dramatic shift in recovery when
it countries like japan, china as well as hong kong, for the second half. lengthan, is there more or has it been swept into this belt of optimism over the economy? oni think you hit the nail the head. it is because the yen is going down, and i think it will keep going down, like you mentioned, the boa forecast, over the next 12 months that is probably in the right neighborhood. over the last 10 years, there has been a clear inverse correlation between the yen and the stock market for the simple reason that most of the companies make the bulk of their earnings overseas, the big companies on the nikkei. it is sort of a nice sign. if donald was the protectionist monster that people are worried he would be, i don't see how the japanese market would be going up because japan is one of
america's major trading partners. >> you raise an interesting point. what is also interesting is how much of a new territory we seem to be in. you are that with the breakdown in correlations, the dollar, the is brokenorrelation down or breaking down, and others as well. addingsee that as another level of uncertainty in the market? well, correlations don't usually last forever, so for example the one i just cited, the yen and the stock market in japan, that did not exist before 2005. likewise the dollar and emerging markets, that is only 20 years old, so things do shift, and we don't no one i. if there are correlations
breaking down now and new ones being formed, of course that lads -- adds a layer of uncertainty, but the idea of we are exiting this negative interest rate environment in some parts of the world is a very good thing because it was an anomaly and not healthy. extreme. getting to an speaking about yields, i want to pull up this chart that shows trading in u.s. treasuries is getting harder and harder primarily because liquidity continues to get pulled out of the market. if you look at this purple line, which shows you the two standard deviation percentage moves, treasuries were spiking given this bond selloff we have seen, and i think that is raising concerns that perhaps we will , bondother tantrum tantrum, in the market that could be very disruptive. what is the risk of that? >> you are right.
i think there is risk that things keep going in the same direction they are in now, and as healthy as it is for yields to revert to higher levels, if they keep going up at this kind of 45 degree angle, then you get high yields. historyook back in windy fed raises rates, there is a tendency for yields to back off a little bit, so i would have thought going into that december 2014-2015 meeting, i think most of the damage has been done, then back off a see 2.1%t to save -- in the 10 year by the end of the year, but then were looking at three quickly next year if donald trump does cut taxes because that will accelerate economic growth. >> thank you very much matthews with us. >> facebook moves to curb the fake news.
>> following criticism that fake news had an impact on the u.s. election, facebook has promised to tackle phony articles. >> basically mark zuckerberg says that he will push out of the facebook ecosystem of itself and enlist third-party organizations. third-party organizations one of them. community as fact checkers themselves are saying they will post warnings on some suspicious stories, but they will meet with journalists to learn how to verify information better, but he did say "some of these ideas he admits may not work well, but i want you to know we have always taken them seriously." you can read the rest of the
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♪ we just a half hour away from the open of trading. it busy week as we look out for inflation. i'm yvonne man in hong kong. >> in italy a holiday-shortened week. but jampacked. you're watching "daybreak asia." note into the first world news. japanese exports fell further than expected in october. shipments dropped 10.3% from a year earlier. estimates of an 8.5% fall.
of ¥496 billion or $4.5 million. exports to china were down 9% while you are shipments more than 11%. global trade and a glowing fear of section is him were the main themes of the asian pacific summit in perot. president obama heard other leaders say america must resist the isolationist policies before by donald trump and is ultimately successful election campaign. new zealand said trump cannot be brakes on put the economic integration elsewhere in the world. thousands of people marched on sunday domain the resignation of the prime minister. premier, anormer estimated 50,000 protesters renewed their calls for him to step down over his scandal. he denies any wrongdoing and says he will not quit despite allegations of embezzlement. he has been cleared of
corruption are the attorney general. the u.k. chancellor has warned business spurs they faced two years of uncertainty at of the country's departure from the eu. they will deliver their fiscal statement on wednesday facing a potential hit from brexit that saw him abandon the goal of a balanced budget by 2020. anew report from ernst and young says for growth will trim tax revenue, forcing the government to borrow more. more thans are by 2600 journalists and analysts in what an 120 countries. this is bloomberg. >> fantasy to see how the asian markets are shaping up so far. i know you're taking a look at the commodity space. seeing extent a second day of gains come up 9/10 of 1% of trading on -- that after we saw some optimism coming from russia and iran on a possible deal later this month.
russian president flatware putting going as far say saying there are no major goals left -- vladimir putin. that led to them extending gains past $46 and trading at $46.10 a barrel. this shows you that money managers. we are seeing producers and consumers making the biggest -- bets on bets crude prices in nine years. wages on higher and lower prices, they reached 1.47 million contracts. sinceould be the most 2007. take a look at those two lines going up. we see wagers gaining. analysts saying there are
tensions in the market. worried about what opec does or does not do a november 30. they want to be protected from surprising price moves. worried about what opec does or does notwe are seeing oil and bn oil gaining ground as we see oil extend those price gains. in other commodities, let's take a look at gold. it lost grounds for three consecutive sessions. itce donald trump's victory dropped around 5%. it is unchanged at the moment. because of that drop since the election we are seeing australia's gold sector being hammered. it is lessur months, about -- lost about 25%. look at what miners are doing today. gaining eight tenths of 1%.
talkng about miners, let's about these guys. theya re down 1.3%. saying they're going to cut off about 500 people. those positions being cut in western australia under operations. they are being reduced come estimated about 4% of the workforce being cut. that's the latest we are hearing. the week ahead on wall street is likely to be dominated by speculation of the makeup of the donald trump administration. investors will look to the next meeting and the start of the holiday season. seems like the president-elect has moved this discussion from the trump tower to his golf resort in jersey. one of those toss was with mitt romney. >> a stream of interviewees
coming through. perhaps he moved his operations out of the city to give the city a break from all of the traffic. first up, let's talk about what ex-marine that woodhead the department of defense. wasan known as mad dog, apparently very much impressive in his meeting with donald trump, who tweeted afterwards he was a true general's general. he is considered a top candidate. the big surprises mitt romney, a former trump critic. there is word he could possibly leave the state department. romney is says that under active consideration. and early primaries romney called trump a fraud and a phony. that inthere is a view
heated battle, words are said and he did not matter now. those who observed the two, they warm with each other in the meeting was viewed by many as very positive. in terms of possible treasury secretary candidates and others, there has been a stream of wall street veterans. a billionaire is being considered for the treasury department position and also possibly commerce secretary. another wall street veteran, blackstone's jonathan gray. he is also on the list and took a meeting over the weekend. veteran,edge fund also in on the, meeting. a lot of speculation on who the actual finalists will be. yvonne: a lot of names on this list. at least some initial bipartisan report from -- support.
we have a route of economic reports. get a lotare going to of scrutiny because we have the countdown to the next fed meeting. there will be a hike in interest rates. it looks like the data should be supportive of that. october pacey the should remain close that nine-year high. we will also be getting a report on demand for durable goods which likely rose. betty: what are the highlights this week will be thanksgiving and the cooking of the turkey. but right after that will be black friday. su: the madness begins. each year begins a little earlier. but the focus will be on the online sales. #btv 50 40, you will
see an increasing move to online sales. arebrick-and-mortar sales what is known as black friday, cyber monday, is when we will really get the numbers online. took to theom challenge early. for the past 13 days they are doing price reductions. their black friday deals are already underway. they are hoping to scoop in and create a new prolonged holiday madness. they could change the equation here. betty: it might never end. the president of south korea is under more pressure to quit after prosecutors say he played a role in influencing scandal. peter, give us the latest on this developing story. oppositiony the party lawmakers are meeting to talk about impeaching the president.
they are looking at the process and possibly the timing of it. this comes a day after the prosecutors filed indictments president's longtime friend and former aides, alleging they extorted money from major corporations including samsung and hyundai. that money was donated to foundations that she ran. there are allegations that that money was basically siphoned off for her friends'personal benefit. the indictments were interesting in that it also basically described the president is having a major role in this extortion scheme, including even an executive to donate about $7 million to one of the foundations. these are allegations that the
presidential office has an exec, calling them basically speculation and imagination. has prompted rivals to call for her impeachment. what are the chances of that? peter: it is growing significantly. because of the indictment followed -- filed yesterday which describe the president having a major role. the prosecutors cannot charge or arrest or because she has presidential immunity. the opposition party lawmakers feel the only way to oust her is to impeach her. the question of course is whether the parliament will have enough votes to do that. they need to thirds of the 300 members. the opposition party altogether has about 165 seats. toy would need about 30 more cause impeachment. >> thank you. the latest with the president. shares of crime resort fell
after reports of 16 employees were arrested in china over alleged gambling crimes. here's the latest from all out. what more do we know? -- from paul allen. months these past employees have been detained and now they had if formally arrested. -- they had been formally arrested. their situation got a lot more bleak. the head of crowds international vip program just happened to be in the country when the officers of crown got rated in mid-november. these 16 employees were rounded up. there were a few more. it was a fourth australian involved. and --e was a fourth austrailian involved. end of this arrest period
whichthe grace period in early release can be negotiated is now closed. >> do we know what the charges are, exactly? don't. we may not for some time. what will happen now is the police will continue investigating this case. these people have been arrested may not stay in custody for six months or more while the police gather the facts. formal drivers are not going to be known until the police and the case to the prosecutors. it will be a very long, drawnout process. quite an unnerving one for those employees being held in china. but the whole thing has been operating in a legal gray area. a is illegal to arrange gambling trip for 10 people or more in china.
operation which got no offers. strategists are raising the forecast for further dollar gained against the yen as the pulls a 10 year bond yields back towards zero. elderly people in japan may see their health care costs rising. the government is looking to increase the contributions paid by over 70's who earn more than the average salary of $33,000. ae government expects proposal cut social security costs by $900 million in the next budget. >> shares in australian can -- construction are on a halt on news it is buying a u.s. company. the into benefit from president-elect donald trump's promised infrastructure splurge. it will pay a premium over 21% over the friday close.
it is expected to close next year. fantasticwling's " beasts and where to find them" works its way to the top of the u.s. box office. it's the start of a planned five fantasy series for warner bros.. $75 million, lower than the $82 million forecast. it is said to have cost $180 million to make. it opens in china on friday. china's top microblogging network had a stellar year. shares have doubled in 2016. what can we expect from a report of third quarter earnings monday? its --onsensus exit or experts are to be believed -- look at what has been happening in terms of the revenue that is expected.
$173 million. this is -- in at thed to come top end of the range. million is the number to beat. earnings beat revenue. earnings per share that is expected to be a record as well. versus $.11.e it could be a very good number indeed once we get these numbers after the bell. good news for the stock has not been doing well. why is that? >> it is a difficult to figure that out. no concrete reasons. the share price has doubled year to date right now. up 127 see it there come %.
the share prices tumbled by about 20%. bear market territory. there could be some profit taking into this. not really sure on that. has been creeping into the market is something i wanted to show you on another terminal. let's head into the anr funct ion. in the top right you can see red in the bart chart spirit that is indicating bearishness saying whether to buy, sell or hold shares. only one cell is rating. there are 13 analysts saying to buy. i want to say this is all very positive. onlywe have to juxtapose this against the u.s. counterpart with twitter. twitter itself is not doing well at all. it has 7 buys, 25 holds, 7 sells.
[laughter] we're just getting started. >> we are wrapping up the day here. tonow you're looking forward a conversation with the australian trade minister. pet conference took -- apec conference took place there. tpp is now dead in the water. he'll be along in 90 minutes. what ahe prospects if -- went byrospects if tpp the wayside? the australian trade minister. kongng at this hong shenzhen stock, it should be on
the cards pretty soon. coming into operation soon. is there another white elephant? happenedeflect what with the shanghai, hong kong stock? he will been a long and about -- he will be here in about 70 minutes. i'll be asking him the questions. japan has the secret to success. grace wong has more on this from tokyo. tell us more about this country. what is their secret in sales in the sluggish economy? actually, it is so obvious
it may not be a big secret for those in the business, but they have done it so well. they're known for selling cheap clothes. they have been doing it for 60 years in japan. they barely had any shops until recently in 2007 in central tokyo. before that they were renting cheaper places, renting the place in abundant neighborhoods where they can keep shopping in their shops and return to shop in their shops. find it so interesting about his company is the managed to actually grow during the recession period in japan and they are doing well again in the
current economic situation. they have outperformed uniqlo. for five consecutive quarters in the past. what they are continuing to do a complementary i.t. system that moves stock between stores. it helps keep things cheap. >> sounds like they are pretty different. other any hints here for other business operators struggling? >> yeah, they are very different.
they don't use any top models for their commercials. in this economy, offering -- people arealue still willing to spend. >> grace, thank you so much. that is it for us. plenty more still to come. avon, i'm looking at the markets open so far. japan looks like it is climbing steadily. >> the weaker yen helping things. everything outside seems to be falling. we're still seeing some slight gains on that front. this is bloomberg. ♪
♪ it is 9:00 a.m. in singapore. fromrishaad salamat bloomberg market asia headquarters in hong kong. this is "bloomberg markets: asia." ♪ asia-pacific leaders say donald trump must not be allowed to derail closer global integration. china shakes up the order, claiming the mantle as world free-trade champion. japan posting a trade surplus with imports