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tv   Bloomberg Daybreak Asia  Bloomberg  January 9, 2017 7:00pm-8:01pm EST

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♪ >> all change at yahoo! marissa mayer is quitting the board, as the company searches for a post sales strategy. >> asia-pacific markets, down. the snp dropping from a record oil falling, but gold is up again. links toa deepens its brick-and-mortar, with plans to privatize hong kong with retail. talksnder jack ma
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business with donald trump. they say they will create one million new jobs together. >> one million. this is the second hour of "bloomberg daybreak: asia," our headquarters. i'm yvonne man. >> nothing is small when it comes to talking about donald trump. in new york, i'm betty liu. a decline at the open, declines on wall street. we will dig deeper into that. much of that having to do with oil prices. let's get straight to the top corporate story today. yahoo! just announcing sweeping changes that will take place, once the deal with rising is completed. they included the departure of ceo marissa mayer from the board. she will step down. let's get more with bryan womack from san francisco. how big of a deal is this, if at all? she will step down. let's get morereporter: it's in. i think there were a lot of
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eyebrows raised, but essentially, don't think there was a lot of expectation that marissa mayer would stay on with the company, when it becomes nothing more than a holding investment arm to hold asian assets that they have. really, the brand, the web portal, the mobile apps, they are all going to verizon. there was really no expectation that she would stay there. this is kind of part of the yahoo!, getting everyone -- lined up as yahoo! changes. nothing more than a holder of asian assets. betty: is there any indication at all. the deal might be struggling, given the revelation of few weeks ago of ,nother hacking case at yahoo! or does it seem like everything is straight ahead with the merger? reporter: i think there's definitely still questions out there. we saw some headlines last week, an interview with a verizon
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executive. there are questions about how they hack, how it happened, what is the impact? verizon is keeping a close eye on this. is a big deal to have a strategic interest in this. we will have to see what happens, but it's not all settled, that's for sure. we were talking about its assets, and we see yahoo! japan rising at 1%. what does this mean for yahoo! japan or alibaba? reporter: that's an interesting question. we had these massive holdings that yahoo! has. about 35% in yahoo! japan, 15% in alibaba. that's the question, how does handled? there are massive tax implications. that is the next step for the company. that is why we saw the big shape with thekeup today
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board. we don't know yet what is going to have been there. yvonne: bryan womack, we appreciate your perspective. thank you. let's get a check on the market. seems to be hanging on the sentiment in asia. --'s go with the open in so in korea, as well as tokyo. wall street playing the tone for asia, so we did receive the -- see the s&p 500 fall below a record high. this is coming down to the slump in oil prices, which dragged on u.s. stocks. that is weighing on u.s. equities. that is perhaps feeding into the asian session. let's look at how shares opened and tokyo, coming back online after a holiday. first, let's take a look at
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what's happening. u.s. treasuries climbed, as well as gold overnight. the 116falling below mark. nikkei 225 opening lower one third of a percent, continuing andall after thursday friday. korean stocks extending declines after falling on monday. australian stocks down 7/10 of a percent, after being a top performance equity market on monday. a second day high for new zealand, the only bright spot in asia. betty: what about australia? australian shares are taking a bit of a beating. reporter: stocks listed in sydney snapping a five-day advance, banks and energy leading the drop. no surprise, given the broader slump we are seeing with the fall in oil prices. utilities also falling on the
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index. minders rising as gold climbs.we can see the resolute up about 3% . , quick word on crown resorts afterng as much as 1.6%, billionaire james packer reshuffled staff. 200 --start to the afx asx 200. betty: let's get to the first alert news with haidi lun. reporter: the bubba and others have announced plans to privatize hong kong's department store operator in primetime retail. it is part of a decision to integrate with traditional brick-and-mortar stores. a statement says the deal will happen at 10 hong kong dollars per share, valuing the company u.s..5 billion
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britain thatarned it must adhere to eu rules on the freedom of movement if it wants access to the single markets. chancellor angela merkel laid out her position, as her u.k. counterpart prepares brexit negotiations. merkel said anything other than focal compliance will have consequences for the remaining states. japanese farmer -- pharma company takeda expanding givings in the u.s., access to a counter pill and experimental lung cancer drug. they will pay $24 a share for the company. shares were surging more than 70% on the news. india's largest come on brent , accusingd the attack
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them of altering representation of directors. 30 say they reduce the number of directors on the board of other group companies. they say he never raised concerns about problems with the group's operation, and being slow to react to losses. global news 24 hours a day, powered by more than 2600 journalists around the world. yvonne: thank you. we are expecting a mixed picture of china's inflation situation later on. consumer prices likely fell on cheaper food, while the commodities rally is driving the comp higher. let's look at the figures.in just about 90 minutes time , we are expecting a big number when it comes to ppi. central bank authorities watch inflation figures closely, but we can bring up the chart and see if there's a difference in the paths between ppi and cpi.
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ppi has not been a big worry for economists. look at the white line, that is flatline on where the cpi has been. expect it to dip a little bit down to 2.2% rise in december, after 2.3%. nothing to get too excited about at all. again, if you bring up the bloomberg food inflation tracker, you can see the reason why inflation is staying pretty tame. the food inflation tracker. even though we are in the middle of winter, vegetable prices usually go up, however, it is fairly benign right now. that is the overall on cpi. ppi, factory gate inflation after more than four years of deflation.we now have had months of inflation, and writing quite fast. -- rising fast.
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and oil, rising prices reduced slack at factories. capacity has been closed. there has been higher demand. then, there is the weaker yuan. importing from overseas is more expensive, adding to the input costs. ppi expecting a rise of 4.6%, but could be higher. yvonne: let's talk about the chinese currency. bears may seem to be back after a short squeeze. reporter: it was short-lived, for sure. at the beginning of the week, we saw that you rise offshore, and also unsure. -- on shore. it did not last too long, but it perhaps exacerbated the sentiment to the downside. bears coming back, perhaps re-examining their position. we have weakening two days in a row, another forecast of 1%. we are expecting perhaps further
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weakness. strategists say the gains we saw a week will not last long. we continue to seek weakening of the you want, especially because of what we are seeing, dollar strength. betty: thank you so much. that is a preview of the numbers and impacts on china. still ahead, ford's chairman says president-elect donald trump's policies are encouraging. our interview with mr. ford, later. yvonne: plus, asset management sees four key themes this year. this is bloomberg. ♪
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betty: this is "bloomberg daybreak: asia," i'm betty liu in new york. yvonne: i'm yvonne man in hong kong. let's look at the business headlines. united health care is buying
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surgical care affiliates for around $2.3 billion. it is valued around $57 a share, at 17% premiums. this is giving the biggest u.s. health insurer and outpatient chain, as a ghostly health care delivery business. single care serves about run -- two former executives at heritage pharmaceuticals pleaded after an investigation into colluding. companies were named in a lawsuit filed by 20 eight states in december accusing them of conspiring to raise the prices of an antibiotic and diabetes drug. yvonne: one of 2016's biggest european hedge fund startups posted lost his. -- losses. insuffered a 5% reversal november when donald trump's surprise election victory sprint
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volatility. that was among a small number of hedge funds to raise money last year. prefers global. -- equities. let's bring in bill malden votto -- maldonado. global story seems to be shaky. we are seeing dollars snapping from the rally. this?o you make of all >> i think it is a short-term thing. if we look out a bit longer, something very fundamental has changed. we had been living in a very austere world since the global financial crisis. ways, european governments did not have much choice. austerity has been a feature of
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macroeconomics since the global financial crisis. that has changed in the last year. ,hanged with brexit, trump other european countries. that is driving the big inflation changes. for us, it is a pretty fundamental change. yvonne: have some of the calls been a bit overstretched at this point? at one guest, we mentioned last year that everything has a price to perfection when it comes to trump's fiscal policies, when it comes to what he takes office. isn't there a downside? >> there's always a downside, but i disagree it is the price of perfection. -- within emerging markets, asia, they are not expensive. people make arguments they are todayive based on ratios compared to the historical
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averages over the last 10 or 20 years. you can't do that. it doesn't make sense. the context today is different to what it was 10 years ago. interest rates, inflation, growth, everything is different. if you take a more fundamental approach to valuation, comparing equities to bonds, there is still good value there, as there is in other risk assets like credit and high-yield. yvonne: we have been talking about this, china gets in the midst of this inflation reemergence as well. his china an opportunity for you can see china is getting ahead of the curve, trying to support the yen. but is it working right now? we see that despite what they are doing with capital controls, the yuan continues to weaken. is a huge economy in transition. that is an amazingly difficult thing to pull off. we had seen liberalization of
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interest rates, and liberalization of the set renminbi. i think there's value in both h and a shares. that gives us access to a whole new range of companies, new economy companies. i think there's a lot to play for. the interesting thing in china this year will be if earnings can go up for the first time in a while. if that rises, as well as their for expansion, that can really drive markets. we are quite keen on china and north asia in particular for those reasons. betty: you were mentioning getting value. isyou noted before, china the market you watch if you are buying, not just into china, but asia in general. we have a chart here that shows you essentially how cheap asian
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shares are, excluding japan. interestingly enough relative to global equities,, the pe of asian stocks has been steadily declining, just kind of rebounding at the end of last year. ,till relatively cheap significantly cheap to global equities. if you want to get value, would you come to asia? >> absolutely. that's a great chart. that is exactly the point we are making. asian equities are the cheapest asset class in the world, even adjusting for the extra volatility you might experience here. the reason for that is that people have been so focused on china and so worried about china, if we had been having this discussion last year, it would have been very gloomy, we would have been talking about recession and a slowdown in the global economy. we would have been talking about big, one-off devaluation of the
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yuan, stuff that never happened and is unlikely to happen. that concern has really been waiting on investors and has allowed asian equities, to get really cheap and very attractive. i think once investors globally believe more in the reflation story, what they will be looking for his growth. they can't get so much of it in europe and the u.s. when they want growth, they have to look to asia. i think there could be a good year had for asian equities. betty: wendy you think that will be much more evident, the reflation trade? hard toways very predict timing, but at the moment, we are all waiting to see what president trump is actually going to do in terms of policies, what the priorities are going to be, and what the execution will be like. as soon as we have some clarity
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on that, that will open up the potential for asia and other equity markets to do a bit better. i knowstaying on that, that not all asian markets are emerging markets, but we have seen since president-elect donald trump was elected, emerging markets get beat down. can you decipher that puzzle? why? >> be careful what you say there, because last year for the first time in a long time, nmerging markets did better tha developed markets. not by a huge amount, but it was the first time it had happened in a while. i think we are getting there. i think emerging markets are a little bit more difficult for people, a little more volatile and risky. but once the reflation trade comes through, once people are searching for growth rather than safety, that is the place to be. betty: thank you so much.
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and hsbcia-pacific global asset management joining us in hong kong. much more ahead, alibaba's jack ma becomes the latest business executives to get a sitdown with president-elect trump. more on that meeting, and what they promised. this is bloomberg. ♪
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yvonne: this is "bloomberg daybreak: asia." i'm yvonne man in hong kong. betty: i'm betty liu in new york. the business interests continue to roll up to trump tower. jack ma is the latest to meet with the president-elect, talking about plans to bring one million new jobs to the u.s. we have more on this interesting meeting. reporter: i love how jack ma can say i'm going to create as many jobs in the u.s. as you guys have created in half the year.
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there you have it. he spoke with donald trump. he says he wants to leverage the small and medium u.s. enterprises, basically by giving one million smes to alibaba's platforms, and saying, if we give these one million a platform, they will each higher one other person to help with e-commerce operations. you think that could potentially happen, hence we get that one million number. let's hear what jack ma had to say specifically. >> it was a very productive meeting. we discussed helping american small business, selling things through alibaba's platform through china and -- to china and to asia. we mainly talk about small business and young people, and american agricultural products to china. we think that the china u.s. relationship should be more friendly, and do better. reporter: right after that, alibaba went on a little twitter media blitz to talk about all the companies that trade between the u.s. as well as china.
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for example, in the closing round, there's new balance, under armour, brookstone. he also talked about farming. this is something you don't think about when it comes to alibaba, but farm goods are going to china as well. for example, california oranges, washington apples, and massachusetts cranberries. u.s. investors thought this was a pretty good thing. shares rose for alibaba today. they closed by almost 1% up. that is the highest in more than the past month. visit is at an interesting time, because donald trump is talking about a potential trade war with china, as well as tariffs. if that happens, that can hurt e-commerce companies, specifically with alibaba particularly. it has its biggest component in the united states. yvonne: the nose.
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jack ma can be the mediator. has chosen hisp son-in-law jared to be a senior adviser on history -- on his team. what are the nepotism laws? reporter: it depends on the expert you are talking to. some say it does, some say it doesn't. at the heart of it is this law from 1967, a federal anti-nepotism law. from hiring -- it bans public officials from hiring family members. it's not clear that applies to the president. he is divesting ownership in his company, to get around some of this. allner will also off foreign investments and common stocks. yvonne: thank you. ownership changes at the golden arches in china.
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we will discuss mcdonald's latest overhaul and expansion plans, next. this is bloomberg. ♪ with the xfinity tv app,
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wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ♪ >> it is 8:30 in singapore this morning. half an hour away from the open of trading there. im in hong kong. am in new york. now, the news. managementping changes as it transitions to an investment company. yahoo! resident marissa mayer and five others are resigning from the board. they say their resignations are not due to disagreement with the company. the new operation will be calling -- will be called al
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taba. james packer is returning to the boards of his business. he controlled it drew his investment company. the current shareholder will step down. crown is increasingly focusing on australian business after 17 employees were arrested in china last year for allegedly gambling related crimes. u.s. prosecutors are said to be charging volkswagen in germany over a scandal. the commission's executive was accused of sick -- conspiracy to defraud the u.s. there may be charges against vw officers in germany. female about mathematicians working for nasa in the 1960's has ended rogue across the-week run
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box office. "hidden figures" beat the $22.1 million raked in by "rogue one." the star wars movie is a runaway hit for disney. day,l news 24 hours a powered by 2600 journalists and analysts in 120 countries. this is bloomberg. how markets are shaping up, let's go to sophie for more. sophie: asian markets look set to follow the oil driven retreat on wall street. they have pulled back from a record high. energy shares on the downside, along with other segments like financials in asia. overnight, we saw crude prices fall for the first time in four days, but new york crude hoping its decline, nearly $52 per
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barrel, after the oil minister said opec will fulfill the deal with 60-70% of promised curbs announced. oil prices were under pressure, iraq posting record exports. iraq isn't due to comply with the cuts until this month. seeing the we currency markets reflect oil price action? currency markets haven't quite reflected that yet. we may see some catch up over the next 24 hours, especially in the russian ruble and canadian loonie. at commodity links currency like the australian dollar and the ringgit. other factors filter into their performance. the aussie, steady at 73.53.
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november retail sales, the ringgit seeing slight recovery at 447 per dollar. the peso is the worst performing currency in asia over 12 months, no reprieve today. the peso, around the weakest since 2008. yvonne: thanks, sophie, with a look at how the markets are shaping up. with a busy merger on monday on wall street, at least one deal appeared to fall apart. let's talk about the on d should -- the unusual deal. veterinary hospitals, a candy company, doesn't seem like a match. aperts and analysts say it is great deal, a 7.7 billion dollar deal. what we have is vca, take a look at the ticker price, which is -- and the ticket name, which is wo
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of. its shares are up 30% on the announcement of the deal. when you look at the candy giant mars, which has invested in milky way's and m&ms, they could have bought another snack company to augment the line. they found that going into the pet care business expands on their veterinary units and was a better way to go instead of candy bars. they are augmenting pet care and pet foods, like the cat food paykas. their deal is to $93 per share, and it expands the unit. it is aligned with the pet food brand, it is aligned with a growing company industry. this, in the u.s., is a national trend, where people are starting to treat their pets as if they are family members. on wall street, they call it doggie dollars. how big is 2017 going to be for these kind of mega-billion
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deals? a listen. cracks we have seen companies do lots of acquisitions outside the u.s., but there are more targets inside the u.s.. the ability to deploy the capital in the u.s. and the cash they generate in the u.s., you will see a pickup inactivity. -- hasth care has a big been a big sector for mergers. animal health care, a big target. yvonne: you mentioned the new year's deal involves china's biggest producer of gases and a potential collapse of a deal involving blackstone. >> looks like the blackstone deal is off. the big deal involving air products & chemicals is that they offered to buy chinese-based company i you and part of a wave of consolidation led by air liquide and flax air. trends.olidation led
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they will consider proposals and they are not releasing the actual terms of the deal. the acquisition would sharpen the focus on the core business after last year passed spinning off. stands a solid compared to the blackstone story. blackstone group, no longer in talks to buy a $5 billion stake in energy transfer partners. blackstone has been interested in shoring up energy properties, but according to those close to the matter, the deal fell apart 30 days ago when there was a public report on discussions. it caused the share price to rise, and that alone put the deal in jeopardy. that is the story. energy transfer equity is the parent company of energy partners. yvonne: the world's biggest fast food chain managed to get citigroup and carlisle to buy that franchise in china.
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mcdonald's is no small fry. thisl is here with more on . rachel, first off, why is mcdonald's selling? well, mcdonald's is taking a look at its global business and trying to take a step back from a very complex and massive market like china. mcdonald's is facing lower sales in the u.s.. market but note number one, i think they are trying to take a step back from intensiveive resource work of expanding outlets and catching up to the market leader, kfc in china. they have two partners that are taking 80 percent of the stake for $1.7 billion, and will be putting a lot of resources and expanding outlets in china. yvonne: not number one at all. what will the new owners do in china?
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rachel: i think we will see them in meeting the challenges of chinese consumers who are looking for higher-quality and healthier dining experiences. we are seeing them expand the andfe dining environment put healthy options on the menus, like whole wheat muffins. they wille direction have to move in, given that the emerging middle-class consumer in china is not looking for cheap fast food, they want something that is more premium and healthy. yvonne: private equity firms. why are they interested in running mcdonald's? rachel: it was definitely not unexpected, given that these are more financial firms. the mcdonald's management in
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china is likely to stay, and they are also looking at hiring strategy people, especially. frominance firms can get mcdonald's, an established brand. number two in the chinese market. the brand people trust. it is an american brand. is, they can do with fnb they have the daily cash flow while putting their own resources into opening more outlets, especially in third and fourth tier cities in china, where there is a lot of novelty and interest in the mcdonald's outlet. yvonne: what about comparing mcdonald's to another business in china? both of those brands are in an interesting moment right now in china. a couple months ago, yum tickets china operations separate -- took its china operations
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separate. both are different experiments to approach the china market on its own. mcdonald's is still the hind yum. -- behind yum. young, kfc and pizza hut have over 7000 outlets. the new owners of mcdonald's say they want to add 300 stores per year, but yum is adding 600 stores per year. in the short-term future, mcdonald's will be playing catch-up to yum. indeed, yum certainly has had a big lead. thanks, rachel. up ahead, pulling the plug. why them bill ford on automaker's rep to expand to mexico. ♪
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♪ asia.: this is daybreak check of thek
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latest business headlines at this hour. carlyle group is said to be prepared to raise its ap u.s. real estate fund in the first half of the year -- its eighth u.s. real estate fund. they will target $5 billion. it is part of carlisle's plan to raise billions of dollars over the next few years. realty funds approaching the end of the investment term. yvonne: microsoft, citigroup and backcome back a -- volcom and israeli security firm. the value has not been disclosed. they have raised more than $90 million. breaches have been more cis -- sophisticated. carrier is said to be in talks to sell wireless russia.towers in the negotiations involve 12,000 massed with deal values at $800
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million. they have been shortlisted as a preferred bidder. sold in italy two years ago. yvonne: automakers under pressure to bow to trump's demands on his job policy. names into big detroit. >> there is a lot of opportunity. we have a lot of opportunity. we are looking to strengthen the country, strengthen business performance, because we are a big provider of jobs and we provide 100,000 good paying jobs. we are looking for regulatory streamlining, and trump has made statements about tax. that will improve our business and allow us to reinvest. forne: toyota criticized its investment in mexico. north american president says
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the company will spend $10 billion in the u.s. of the next two years. >> we understand what the president wants to do. i think we agree with the president we want to make america strong. we want good paying jobs, a good economy. eventually, that helps business if i am selling cars and a strong economy. that allows me to sustain a line to the future. yvonne: volvo's ceo reiterated the importance of free trade. >> we would like to have open trade. can be in the local market. most cars will build locally for the u.s., but some we will import, and other models we will export to the u.s. there is an understanding for it -- for an open fair trading environment, i think that is something we would expect to see. happens, carlos says
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he doesn't want to be caught by surprise. >> everything being done in collaboration with the industry is easier. no matter what, the industry can do a lot of things as long as it is -- as long as we have some kind of visibility about what will happen, we can do a lot of things. the only thing we don't like is being caught by surprise. >> in between tweets criticizing the media and meryl streep, donald trump delivered a rare forliment, praising ford investing in u.s. plants. bill ford talked about the impact trump is having on the auto industry. i have been for several cycles of boom and bust. nothing was more difficult than 2008-2010. what a difference if you may -- a few years makes.
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is comingndustry back. it is great to see. >> we should turn to the new administration. the auto industry, and ford, has been in the news because of the tweets from the president-elect. a lot of people think part of the problem is trade, that a lot of the jobs have gone overseas. what is your view about the trump administration as they formulate their trade policy? >> i have a good relationship with him. i talked to him from time to time. i talked to him last week when we announced our plans in michigan and he is interested in taxes, trade, currency manipulation, all of the things that affect american corporations. i am encouraged by what i see in terms of his policies. >> if you are going to write the ticket right now for an atmosphere that would be helpful to the auto industry, what would you ask of the administration? >> one of the things he is already done, point a secretary
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of transportation, elaine chao. she knows the industry. the industry is changing so much, with all the technology coming in. we will need a partner in government to help make all this happen. i am pleased that she is the choice. >> do you agree on the trade subject with what you have heard coming out of the transition team? have negative effects for ford. >> we are working with them. it is important that they understand our position. we have built vehicles for over 100 years all around the world. we have been in mexico for over 100 years. that is something that is important for any administration to understand. we talked to mark fields last week after the announcement. to what extent are these decisions not to go forward with a new plant, is that a business decision for shareholders? is it reactive to policies? >> it is a business decision.
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it has to be. my family is a big chair holder. we have to do what's right for we neededolders, and the capacity. we made the call on not building the plant, and we are thrilled to be doing it in michigan. going forward, these are the discussions we will be having with the administration. betty: that was ford chairman phil ford -- bill ford. a look at why brexit is causing concern again for world leaders and investors. this is bloomberg. ♪
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♪ betty: this is daybreak asia. yvonne: i'm in hong kong. time for a look at what is coming up in the next few hours. what are we watching? rishaad: 35 minutes away from china getting a view as to what is happening when it comes to inflation and beyond that, cpi, pti. positive terrain a few months ago. something like 53 consecutive months of it being in deflation. perhaps the inventory overhang has gone away, maybe some of the excess capacity issues are being dealt with in china. the ppi number and the cpi number coming out of that stage half past 9:00 beijing time. what does donald trump mean for
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relations with china in particular? look at trump's policies. we will do that with a former advisor to marco rubio's campaign. he is from the hoover institute and will be joining us at about 9:40 hong kong time. looking at that, and it going might have -- bitcoin. the technology behind it, providing all the opportunities there. we have the so-called block chain behind it, which can be adapted to all sorts of things, not least syntax. that is in the next couple hours of bloomberg markets. yvonne: we will see you soon. thanks. concern over a hard brexit respite fromught the u.s. bond market selloff. that led yields higher around the world. let's bring kathleen in. exit, back in the spotlight.
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>> how about that? is not the only status quo in the spotlight. theresa may on sunday gave her annual new year television interview. she talked about brexit and what traders see. they say, we hear hard brexit in there. in the past, brexit is about negotiating a new trading relationship with european union, extending it to other countries. she says this isn't a hard brexit, but i will get the best deal possible for the u.k. a gossip hound falling on sunday, which continued monday. falling onhe pound sunday, continued monday. the pound got hit after the brexit. september, reaction to theresa may's speech to the conservative party. she spoke about brexit. people said, look out.
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thing happening on sunday. adding fuel to the fire, angela merkel giving her first public speech as she gets ready to run for reelection. she put down some demands to the u.k. and theresa may, saying they must adhere to the four principles of free movement that are important in the european union, read them of workers, freedom of capital, the freedom to provide services, the freedom to move goods. she says the u.k. will have to adhere to this norm, or they will have to settle for less. we cannot let negotiations take the form of cherry picking, as otherwise, this would have fatal consequences to the other 27 member states, and such consequences, we cannot let happen. analysts sense a political crisis potential he brewing. a hard brexit he says is
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inevitable. treasuries, the yield with the rallies coming down to 2.36%. is there a chance that the rally is over? , the rallyp selloff in yield, this is what we have seen since trump got elected. putbloomberg bond team together a great chart today. this is all about technicals. what this shows you is, a line going down, back to what, 19 87. that is when the historic bond market rally started. look how much yields have come down. we have done a survey, and the average view is, until the 10 year note, the u.s. treasury breaks above two point 8%, you are still in the channel. if you are in the channel, the bond market rally is not over.
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brexit can move it. what else can? we don't know. so far, good news for the bond bulls. we learneakers, did anything new? rosengren, three rate hikes. they agree the moves will be gradual. thursday, janet yellen speaks. we will see what the fed speakers add to how fast we will get there. that could be key. betty: thank you, kathleen. that is it from us. plenty more to come, bloomberg markets asia is coming up. yvonne: the focus is on china with the pboc, as well as inflation data. this is bloomberg. ♪
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♪ rishaad: midday in sydney, 8:00 in new york, i am coming to you from the asia headquarters in hong kong. this is "bloomberg markets." changes at yahoo! marissa mayer is quitting the board. brings brick-and-mortar, with hong kong listed. jack

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