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tv   Bloomberg Daybreak Asia  Bloomberg  November 6, 2017 7:00pm-8:00pm EST

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yvonne: 8:00 a.m. in hong kong. we are live. i am yvonne man. welcome to "daybreak asia." president trump heads for seoul on the second leg of his asian tour. talking tough, but coming up short, trump leads japan empty-handed on what he calls unfair trade practices. betty: and from bloomberg's global headquarters, i am betty liu in new york, where it is just after 7:00 p.m. on this monday. it could be a cruising $105 billion takeover fight. megamergertching its wireless talk collapse.
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he said the failure presents an opportunity. thinking like a billionaire. >> definitely look at softbank shares at the open. on the merger talks. looking ahead to president trump arriving in seoul this morning. on the itinerary, he is going to be having a dinner. he could be visiting camp humphreys. he is not going to the dmz, which has been a long tradition for many u.s. presidents. a lot hanging on this trip here. betty: a lot of bravado coming from trump and from monster sayoshi-san.
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maximumlking about pressure on the north korean leader. we heard that from shinzo abe as well. earlier hadr guests mentioned, what does that maximum pressure, exactly, mean. it is still unclear at this moment. in the meantime, first word news. >> president trump heads to south korea on tuesday after a japan visit that delivered no concrete result on fixing unfair trade. despite a warm relationship with shinzo abe, he won no concessions. did agree on a hard-line approach to north korea. president trump said he would back saudi arabia's crackdown on corruption. he said they know what they are doing. local banks have said to have theen the assets, including
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prince who was ranked 50th on the billionaires index. we are told the crackdown has saved money. the negotiators plan to start their latest meeting two days ahead of schedule to go over. over myriad go issues. the lead negotiators are joining on the 17th. the extension comes after officials abandoned the target to revamp nafta, saying they need until the end of march to clinch a new deal. new zealand possible prime ministers as the country remained open for business, but she wants a change of emphasis. she told bloomberg the country would benefit from the transpacific partnership indicating she remains firmly on-site. she wants foreign investors to switch focus from new zealand market to what she calls more productive areas. absolutely, new zealand is an
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outward looking economy, but what we would prefer is a productive economy rather than overinflated, overheated housing market. >> and we will have more from our wide-ranging interview with new zealand's prime minister on bloomberg markets at 9:30 am hong kong time. if you are watching from sydney, that is 12:30 tuesday afternoon. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: thank you. taking a look at stocks in asia, a pretty mixed bag. slightly higher at the open when it comes to the likes of australia. let us get the latest with sophie kamaruddin. sophie: australia one bright spot. out what is happening in seoul as well as tokyo. we are seeing declines at the open. the nikkei 225 snapping a
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three-day rise, while the kospi is falling for a second session. it is concerning about whether investors are troubled about trump team 120 miles from pyongyang. too say this may not be much of a concern given the good macro backdrop around economic growth as well as earnings. take a look at what is going on in the currency the korean won october highs.at we have other currencies on the back foot given the dollar is keeping steady. a close eye on commodities today. we had the recent search in oil. crude on the retreat. new york crude above the $57 per barrel. brent is above $64, near two -highes. --two-year-eyes. highs.
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recent commodity gains have helped lift the aussie slightly this week. it is only back foot right now. it is in the 200 day moving average. with australia's yield differential with the u.s. looking to narrow further, that is enthusiasm for the currency. a quick look at stocks. , after itn particular reported in earnings beat. it is extending a drop we saw on monday. profit growth was supported through the next move for sprint is very much in focus. a big merger to take care of troubles. this morning, it did say more time was needed for investigations. it did confirm the quality of vehicles. the stock is on the decline. kobe steel is snapping a six-day event. yvonne: thank you so much, sophie kamaruddin, watching stocks in th japan.
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the largest tech m&a deal could reshape the chip industry. broadcom says it is prepared for a proxy fight after indications that it's $105 billion bid for qualcomm will be rejected. both companies slumping on this report. semi-conductor reporter who broke this news. it sounds like a very complex deal. iss is really broadcom's -- this broadcom's way of saying we have got to catch up with samsung and intel? >> i mean, the deal is really with what broadcom has been doing all along every couple of years or so. he basically buys a company that is as large as he is and gets twice as big. this would be the next step up. morehe sees is a lot
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growth. all you have to do is find companies that own the core technology, the things that are really important to the electronics industry, and that is what he is trying to do with qualcomm. >> and qualcomm's response has been lukewarm? ian: we reported over the weekend that they really did not like the $70 minimum. been lower than that. that is a set of circumstances they believe they are going to sort out. the dispute with apple, they say, well, those things are out of the way. share price goes up considerably. $90 will make more sense. it is the right way of doing things. ,ualcomm behind-the-scenes worried about the regulatory issues as well here. according to our reports. analysts are saying the ball is now in qualcomm's court. are they o able to convince them it is a good one?
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seen.hat remains to be qualcomm, according to our reporting, are likely to say the board will recommend against this. i talked to the ceo earlier today and he basically said i would not be doing this if i do not think they could and are preparing for any sort of events relative. tothis point, he would like come back to them and say thank you very much. i think there is a lot of opinions that state that is unlikely at this point. our reporting shows that. yvonne: this would entail, if it does happen, that one of the biggest debt ratings to fund this sort of deal, do we know what sort of dollar amount they are talking about? saidsome of my colleagues they could be raising $90 billion, which obviously is going to be an enormous raise and do a lot of near-term dollar
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damage to the balance sheet. the pushback from the companies, there is a lot of cash flow here to bring the companies together. they are good at generating cash. that would be an unprecedented side of the deal and an unprecedented scale for the financing necessary to put it together. yvonne: it certainly will. we were talking to bloomberg intelligence about how complicated this is really going to be just to get through. ian, thank you. in keene, who broke that story for us. coming up, we are looking at what lies ahead after merger talks between sprint and t-mobile collapsing. betty: japan refuses to budge on trade. it we will look at what came out of his japan trip with the former ambassador to the u.s. this is bloomberg. ♪
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betty: this is "daybreak asia." i am betty liu in new york. yvonne: i am yvonne man in hong kong. his japan stopover at strengthened ties but delivered no results on fixing what trump calls "unfair trade. is already in seoul for us this morning. north korea testing a long shadow over this trip. stephen: north korea is going to be the prime focus. keep in mind the renegotiation in the united states and south korea on the course. in 2012t into effect and will be front and center on the trade front. if trump thought he had difficult times getting some deliverables from shinzo abe on the 60 $9 billion trade deficit they have with the japanese, they are going to have some tough negotiations with the koreans as well. they run a surplus which has
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doubled against the united dates since 2011. -- the united states since 2011. areld trump has said we getting destroyed by the south koreans, but interestingly as well, i noticed a korea herald days ago,couple of more than two thirds of south korean say we do not agree with the renegotiation. we have a deal in place. we are doing ok with it, especially in automobiles. the south surplus koreans enjoy is in the automobile sector. we don't know whether that is prohibitingariffs south koreans from buying american cars or if they just do not want to buy american cars. you look on the streets of seoul, you do not see many american cars at all. it is like 99% south korean cars, whether it is hyundai or kia. north korea, that is going to be overigger thing hanging these talks.
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north korea is just a few miles to the north of us right here within artillery range. not that i am suggesting there's going to be any fireworks, but again, the south koreans want to get some assurances and clarity frome north korean policy donald trump. japan said the era of strategic patience is over. big,r: that sets off the important meeting in china, with xi jinping. what can the president realistically expect from china? stephen: they want china to play more of a role. they exert a lot of pressure, or influence, i should say, on the north koreans. they would like to see more pressure from beijing to halt north korea's nuclear programs. this is going to be also like in the other stocks on the asian tour, a two-pronged approach. one, the security issues, and also, trade. on trade, donald trump bringing
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a huge delegation. fairly large delegation, i should say, of u.s. business leaders, including the chairman and ceo of goldman sachs. he tweeted saying he is on his way to china for the trade mission. u.s. and china have most to gain from cooperation. and the most to lose from chaos. this is not a zero-sum game. this is what lloyd blankfein had to say on tv. >> we have had a ton of activity. we were very much involved in the going public of most of the large banks. we have been a big investor in china for a long time. we helped american companies do business into china and chinese chinesees do -- companies do business in the united states, not only for the dual economies, but for the integration and the understanding between us. i think it is positive. i would be very proud to be part of that mission.
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>> do you have an agenda as you go over? >> net me tell you, there is very few places i don't have an agenda. stephen: that is china. later thisp arrives morning and he is going to have lunch with the troops. theill come here to government buildings of south korea. he will have a press conference. a speechake it each -- to the national assembly. he is tweeting. no surprise there. he said "getting ready to leave for south korea." he said this in china. he called president moon a fine gentleman. we will figure it all out, says donald trump. stephen engle, our chief north asia correspondent there in korea so as trump makes his way there. president trump heading into south korea on tuesday after the visit in japan that delivered no
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concrete results on fixing what despite "unfair trade," a warm relationship with shinzo abe and an agreement on a hard line in north korea. on a won no concessions trade deficit with japan. joining us now from tokyo is the former japanese ambassador to the u.s.. ambassador, let me ask you this first. how do you think abe did this time around with trump? >> i think this was expected. very ahead of schedule. to send aorth korea strong message and at the same time, discussed economic issues, but said we have a proper channel between vice president and deputy prime minister, so we will let them continue the discussion. i think this was exactly as designed by both sides. betty: it seemed that way. trump has posted and continues to boast of his warm relationship with shinzo abe, saying "we both holding title of
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ies," and our countr he seems to really admire him. did you feel like that relationship grew at all during this visit? or did it stay the same? >> i think it grew, yes. i think three elements that maybe he does not have with other leaders of asia. in this country, we have emperor. everyone saw that on television and thought that there was respect from the u.s. president to japanese emperor. he played golf with shinzo abe and had lunch. he also had been there -- he had dinner twice. showing to the world that they are special friends. ofrdly, he met the family
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abductees. he is sympathetic to these causes. that was very well send off the message. yvonne: he showed a bit of compassion. the incident happened for the u.s. as well. those are the nice touches for the president. i want to talk more about the press conference. i want you to hear just a bit of what we heard from president trump here. pres. trump: the japanese people are thriving. your cities are vibrant. you built one of the world most powerful economies. i don't know if it is as good as ours. i think not. ok? and we are going to try to keep it that way, but you will be second. [laughter] yvonne: you see a little bit of
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smarts coming from the president. joking aside, in terms of diplomacy, i wanted to get your take on this, ambassador. this seems a little bit condescending. well, that was mr. trump's way of presenting the issues. at the same time, as you have seen on the press conference, thatbe stated very clearly after january this year, after mr. trump has come to be in the presidency, japanese companies 17,000vested in, created jobs. now, altogether, have a hundred 60,000 jobs in the united states 60,000 jobsbs, -- 8 in the united states, direct jobs. now, it is down to 3% trade. he made it very clear, in front
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of the president. i think that message has thought through. yvonne: he mentioned this while he was in japanese soil. what message does that send not just to japan, but to the world, on how the u.s. administration views its allies? yes, and as i said, that is mr. trump's way. yourmay take this chance, reporters in korea said, when , the cars seen in seoul -- it is korean cars. cars, more than 40% are foreign cars. however, unfortunately, the european cars. it is true. wheel, one steering the defense side, it is a little
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too big for narrow japanese street. a lot of japanese with great american cars, they make cars for japan. anchor: that seems to be the defense of the japanese for why they are not buying more u.s. cars. ichiro: as i said, it is a little too big of a steering will. japan onmaking it with the right-hand side. it is not only that. look at standards as well in discussing. we have established a proper channel. that has met twice and they will ,e meeting, and in that forum we will be discussing many issues in different communities
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as well. anchor: thank you so much. ichiro fujisaki. thank you. you can get a round up of that story and many more you need to go to get your day going in today's edition of "daybreak." bloomberg subscribers, go to dayb on your terminals and on mobile in the bloomberg anywhere app. it can also customize your settings so you only get the news on the industries and the assets that you care about. this is bloomberg. ♪
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betty: let us get a quick check on the latest business flash headlines. apple has responded to reports from the so-called paradise papers. it moves most of its cash reserves to the channel islands of jersey after a 2013 crackdown on its tax practices. any a statement, apple says it pays every dollar it owes, and the changes did not read his test payment in any country.
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the effective tax rate it pays is 21%. yvonne: apple is looking to fund buybacks and dividends to bond sales. as of september 30, it was sitting at a fraction. 94% of which was parked outside the u.s.. the republican tax plan would charge company 12% on overseas profit. tencent's unit says it expects net proceeds to be about 920 million u.s. dollars. we are told the company initially priced 150 one million shares at 55 hong kong dollars apiece. that is the top end of the range. the offer is said to have attracted outside retail demand. it expects to make its trading debut on thursday. yvonne: coming up next, masayoshi son calls the end of talks. not a crisis.,
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we will ask jeffries their take on whether softbank may still be well positioned in the long term. this is bloomberg. ♪ who knew that phones would start doing everything?
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see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. yvonne: 8:30 in singapore. dark clouds moving over the lion city. i am yvonne man in hong kong. betty: i am betty liu here in new york. you are watching "daybreak asia." first word news now. >> president trump heads to korea on tuesday after a japan visit that delivered no concrete result on succeeding a warm trade," despite relationship with shinzo abe. he won no concessions from tokyo on the $69 billion trade deficit. the leaders did agree on a hard-line approach to north korea, although no new measures were announced. increasing concern about the deficit which presents a growing
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reform as theax house ways and means committee starts considering the legislation. the republican changes good increase the federal debt. the legislation's supporters say the system favor. critics say it is just smoke and mirrors. >> fundamentally, this is not tax reform. this is tax cutting, and it is a rather indiscriminate, nonstrategic taxcutting which i think is likely to increase unfairness, is likely to cheat to future, and is not likely provide significant benefit in terms of economic growth. >> wilbur ross says he will probably not keep his stake in a shipping company that has extended tied to the kremlin. investment,osed his worth $10 million to navigate holdings. several reports say he did not
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disclose that navigator works with an energy company called ciber, which is worked to president putin's son-in-law. >> there is nothing improper either in the way we have in the meetings or investment in south. >> will you keep the stake? >> probably not. that is not because of this. >> ecb president mario draghi has won the backing of his .redecessor, john claude he says policy members are planning to taper the bond buying program. he told bloomberg television the days of deflation are over and of the main problem is a lack of dynamic inflation. they plan to taper purchases of bonds from january. deflation is of totally over, and it seems to me, all indicators governing council had were really just
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defined fully the fact that they start tapering next year. news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: we will see how the asian markets are shaping up. let us get an update with sophie kamaruddin. breakinghe asx 200 6000 points for the first time putting it on08, course. it is still underperforming their broader market, but we are seeing this key level holding. points byng 6250 mid-2018. that is commodity pricing, seemed supporting for the earnings growth, so we have today energy and materials leading the advance, gaining over 1% this morning.
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no surprise with commodity markets on the move this week. and gains for the raw material gauge tracked by bloomberg could be about more than oil. seen sincese we have june is looking to be more broad-based. it seems commodity investors may be buying into the global growth story and this is happening even with a broadly rising dollar. where commodities go from here may depend on the greenback. pessimism, it has been editing as the greenback is rebounding. you can see the turnaround for the dollar for the line in white. hedge funds continuing to trim their bearish bets. intting lows september. we are seeing higher u.s. yields attracting investors help and support that currency, and when it comes to the outlook for rock sayses, black they will be more resilient.
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that seems to be a bit of a contradictory thing. usually, commodities are under pressure when the dollar is on the advance. thank you. softbank billionaire ceo masayoshi son and the talks to merge with t-mobile is a deal that has a potential to transform his to bring telecommunication -- two telecommunication companies. softbank is uniquely positioned to benefit from innovative technology in the longer term, according to our next guest. his ratingaining on softbank. he joins us from tokyo this morning. thanks so much for joining us. is softbank still just a telco or more of a tech related berkshirehalfway -- hathaway? , whichs a mixture primarily invests in non-tech industries. insurance using the
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premiums, they started using telco cash flows to fund his vision and future investment. it is a mix of those two in my view. anchor: it seems like people are starting to gravitate towards that view. the big question during this earnings report was what to do with sprint. basicallyer talks were scrapped. what can masayoshi son do? can you look for another partner or is softbank going to have to financially support print itself -- sprint itself? atul: there are a lot of options available to him. in the long-term, the cable companies do want wireless companies as well. in addition to that, sprint in itself has a spectrum which in the credit markets has been valued above $80 billion. so to sell that stock at that
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currently, they have net debt. that seems to cheap. i think it is the right decision not to sell at these price points. if he gets an offer at a higher price point, would he consider, should he consider? yes. there is a probability they could take the company private, so there are multiple options going forward. i remember -- yvonne: what was the most likely scenario, do you think, then? atul: most likely scenario, i think, 85%. right now, it 83% ownership of sprint. first, they take it to that level. beyond 85%, they need shareholder approval. most likely in my view, they go to that one. and around may or june next year, comcast and charter, who have agreed not to pursue a deal ,n their own, the one year great that they have agreed on, that expires. you might have the charter deal coming up back on the table at
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some point in time. again, remember, sprint, if you add up the asset values before , sprintg the net debt itself is less than 10% of that total asset value, whereas worth about,ke is you know, almost as high as 45% of that asset value. sprint is important. a very small part of the overall asset value. anchor: but a very big part of masayoshi son's ambitions, right? had to have heard a little bit not to be able to get that deal done, but as you say, they have got other targets in their sites . maybe charter or elsewhere. i mean, i guess that is my question, which is now that it looks like sprint is dead -- excuse me, t-mobile is dead -- where else might softbank look? wouldelse
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masayoshi put his dry powder? atul: i would like to see him invest more and more in the new generation technology investments, something he has been doing of late, something he has shown a lot of interest in. but god for dead, if he were to go -- god for bid, if you were to take charter, it is in giving it away to charter shareholders. that is not something i would want to see, but a deal with charter, yes, definitely. that should be on. kong past it does not really matter. yvonne: you have a rating on the stock. what is the biggest risk you see for this company? ? atul: turner. that media started talking about a couple of months back. middle of july or late august that softbank might go off the charter, because if charter does
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not agree, they will go up. that is a big risk. it is currently trading at 50% discount. it will not to bridge very shortly, but over time, they can look to bridge the gap itself. there is a lot of upside. but if he chooses to take away a lot of value and give it away to charter shareholders or other large company shareholders, that is a risk, something that cannot be ignored. he has done some of that in the past, whether it was retiring arms. he has taken very big risks in taking away some of the value to other company shareholders. this point in time, the probability of that is below 5% in my view. anchor: we will have to watch for that. in the meantime, you know, you mentioned, you would like to see them up the issue sun going into going- see masayoshi son into more technologies. bid he tries to go
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into others. you are not getting any, right? atul: no. you're basically buying a devalued company investing in growth. business has been running, run by a very smart investor or manager who has a track record not just for generating returns. he had a track record of turning around a badly run, failing company. vodafone japan was the prime example. he turned it around in a few years. he is a pretty clever guy. anchor: he certainly is. investors are still struggling to find out and understand what the vision fund actually entails. how everything ties together and how it will start affecting softbank's earnings. do we get more clarity on that front on how you investment and company fits in together? they did talk about
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synergies over time, and how even some of the investments, for example, a low satellite andany would help softbank sprint, because they would have the exclusive rights once it starts. but beyond that, there are three parts. there are not too many people in the world who would be able to claim that. withs the connection entrepreneurs, large, and small. worldwide, he has success with some of the best entrepreneurs. when the deals are brought up, the deals are changing softbank or softbank what have deals. in political circles, whether it is china, india, u.s., europe, are also unmatched, so if you look at his connections, his network, his ability to identify long-term investments, and his presence as
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chairman, which is very important, as a chairman of softbank, the companies like samsung, they talk to him because he is one of the multiple operators. as chairman of arms, he is the chairman of the company, which is a sole supplier of chips. for their long-term vision, they do need to keep him informed and in the loop. he is in a very unique position to take advantage over the long term. anchor: great to have you. one feature of the bloomberg we like to bring to your attention is the interactive tv functions are not only will you be able to seeh us live, but to previous interviews and functions we talk about. you can become part of the conversation by sending us an instant message during the shows for bloomberg subscribers only. make sure to check it out at tv . this is bloomberg. ♪
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yvonne: this is "daybreak asia. " i am yvonne man in hong kong. betty: the new zealand prime minister is promising to -- is promising change to many aspects of the economy following her campaign pledge to make fundamental changes in the way the central bank that policy. our global policy editor, kathleen hays. she wants them to have the same mandate as we have at the fed. interestingry coming at the office and pushing a long thing she mentioned before the election. the new zealand government today have confirmed it is considering a dual mandate for the reserve bank of new zealand. that is what the fed is always talking about. low unemployment, price stability, and inflation which has to be targeted. it was a pioneer 30 years ago. grant robertson, the finance minister, was making this announcement today. here is what he said "the
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current reserve bank act is nearly 30 years old. while this served new zealand well in general, now is the right time to undertake a review to ensure our frameworks will provide the most efficient and effective model for new zealand." this is a comprehensive review of how the rbnz conducts policies. he says phase one will focus on the question of a dual mandate, and it will then look at committee decisions. an interesting set up where they have several layers within the bank itself. the central bank itself. look at policy. it boils down to the head of the central bank. the governor. advisors within the bank. that is narrowed down again. they want to look at how that is done. she said she wants external in thisalso on -- decision-making process. it seems like they also want to
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move from a system where ultimately the governor makes a decision to bring it out to a more committee-based process. whatever happens, the rbnz is set to hold it steady at one .75%, a record low. if you take a look at #btv 8468, you can get a nice, clear, picture of what is going on, because you can see the cash 1.75%. there it is at target from 1% to 3%, they want to keep it close to 2%. you can see they are right about where they should be. it is interesting that they are part of the new zealand institute for economic research. it's academics and policy makers are urging no change in policy. some are saying the labor market
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has a need to try to enjoy it with so much uncertainty, etc., they are just going to wait and see how this affects spending, labor market, and decisions. yvonne: it will make up for a lot of the conversation during the rbnz meeting this thursday. we have the rba today and what is expected. are going to hold their key rate steady. it is the same situation. #btv 8076.k look at you can see the key rate at 1.5 percent. inflation has fallen below target. so many things happening at once. consumer spending has slowed. the labor market is strong. you have concerns over high-end prices -- high housing prices. rba, butxpected by the we will watch the policy statement to get a signal for where they might hit next. you make any kind of hits about the australian dollar. anchor: kathleen, thank you.
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moving on, singapore's central warningef has issued a on the technology interim financial services. he says "believe the hype. while innovations such as blockchain and big data analytics can result in powerful applications, investors should be wary about pure to pure -- p eer-to-peer applications." >> obviously, with any innovation, there will be a fair that surrounds it. i think this one is no different. there is excepted hype about some of the applications of technology, and that will eventually lead to disappointment. joins ustephanie fain for the conversation right now, and stephanie, tell us the unique position robbie has when it comes to talking more about simtech. he has a fresh perspective when
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it comes to discussing the hype versus the real deal. stephanie: definitely. he is the head of the central reallyat has positioned itself as a champion of financial technology. you know, they do a lot of things to support the industry. whatare holding next week is becoming an annual festival. last year, the festival drew 13,000 participants. think,ve set aside, i $165 million over five years to develop the industry. also, they unveiled recently a financial services industry roadmap, where they envision creating 4000 jobs, new jobs, every year, and a quarter of those jobs will be simtech jobs. unique position both as a regulator and as a champion and proponent of financial technology to kind of give an assessment of the
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situation. anchor: but what area specifically did mr. -- did he say that are a potential concern? what are the specific areas, stephanie? stephanie: he mentioned a few areas. one area is obviously a rapidly rising value of cryptocurrencies. no one can predict how much bitcoin and cryptocurrencies should be valued at or will end up, but he did say the idea that it is going to replace all fiat currency and therefore, the values will keep rising, is unrealistic. at some point, that will have to end. the other area is peer-to-peer lending. there are some peer-to-peer use solidthat analytics. others find really simple solutions. sorry, really simple correlations, and they basically seem robust and make lending decisions based on them.
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when the credit cycle turns, will that remain true? he says he does not know. one final area he talked about, another example is the area of the data, which can be very powerful. he said it could be misused and lead to some disappointment. betty: does this mean the monetary a 30 of singapore, do they want to regulate simtech more closely? stephanie: actually, they are trying to take a rather cautious, or should i say, sensible approach when it comes to regulating simtech. financial technologies are going to be the future of financial services. we should experiment with an open mind. when we asked him when he was ,ooking at regulating nonbanks he basically said it depends on the size. if they become -- if they become
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pervasive and you pick this, become systemically -- and ubiquitous, become systematically important, and they fall into the regulatory space. very much looking at the size, the impact, the services. not wanting to do that for innovation. anchor: thank you so much on simtech and singapore. stephanie phang, the bloomberg news singapore bureau chief. as we have been talking about the last few hours, awaiting president trump to leave tokyo, ur inart his today to seoul, where he will be closer to kim jong-un in the north. i will be a bigger and bigger topic in south korea, when he meets president moon. alsow in north korea factor into his conversations with prime minister shinzo abe. both sides, yvonne, talking about maximum pressure being put on kim.
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that is trump and his chopper. his chopper. we are waiting for him to board the plane into seoul. yvonne: that is the f1 departing from the airbase in japan. you mentioned, you know, president moon as well as president trump, they started off this relationship pretty given the fact, they had a lot of differences when it came to trade and dialogue. you have to really contrasted it to the relationship president trump may have with shinzo on abe, which was more warm. they kicked off with golf and hamburgers and whatnot. [laughter] betty: indeed. it is going to be a little tougher. we have been talking about, he got the easy stuff out of the way first, right? it was always going to be an easy meeting between himself and shinzo abe, even if conflict is a big issue between the two.
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he sort of got the easy part of the leg of his tour out of the way first, moving on to south korea. in the middle of the week, getting over to china, which is going to prove to be his toughest challenge yet, speaking to xi jinping on a number of issues, from the widening trade gap to pushing the chinese to do more on north korea. in fact, china is really the linchpin here on whether or not they are able to contain north korea. going to be following and monitoring president trump stripped in south korea. you will be covering all of this in your show as well, rish. rishaad: certainly. and who better to talk to than the former u.s. ambassador to south korea. the relationship with the united states, and how best to deal with kim jong-un in the north and what moon and trump are going to be talking about,
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naturally, as well to carrying on with that, and we look back and see what did donald trump actually accomplish, if anything, with that japanese visit as well? we will be talking to a senior fellow of the center for american progress. fukushima will be joining us from tokyo one hour from now. new zealand prime minister -- had paul allen talk to her. we will be looking at etp and trade -- at ttp and trade once again. betty: a lot on top as we are awaiting trump's arrival, departure and arrival to south korea. markets coverage continues with rish and haidi, next. this is bloomberg. ♪ retail.
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see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. >> let's get use some live pictures where trump is that too ofive part for his next part his trip. not a lot of deliverables have been announced or tweeted and he has been taught to hang about trade and it appears that the prime minister is standing firm on trade issues. pursuing free be

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