tv Charlie Rose Bloomberg November 20, 2017 6:00pm-7:00pm EST
leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> 7:00 a.m. in hong kong. i'm yvonne man. welcome to "daybreak asia." janet yellen confirms she will leave the fed with her successor taking the chair next year. germany faces another election as chancellor merkel rolls out trying to rule by minority. >> from bloomberg's global headquarters, it is betty liu in new york where it is just after 6:00 p.m. on monday. the justice department is going to court to block at&t's takeover of time warner, a major blow to the $85 billion deal. feeling the heat -- the white house designates north korea a
state sponsor of terrorism. that at&t press conference is still happening. we are listening for breaking news out of that. in the meantime, we had that bounceback, but lots of people are saying, the correction in the markets might not be over yet. if you look at this chart, it just shows you come indicated by the white line, that the leading indicator continues to show pretty robust growth in the u.s., 3%-plus gdp growth in the united states, which is a reason why, even though there are some bulls out there getting worried about the stretched valuations, when they look at the indicators, they are saying, it still seems like it is a go for the markets.
you might call them reluctant bowls. yvonne: yeah, global synchronized growth is what we continue to hear from a lot of our guests. you can certainly see that in europe, as well. despite the political uncertainty surrounding germany and chancellor merkel, the dax is shrugging off that risk. are still looking for some type of catalyst of what is , for theseve forward rallies to continue, but we got that good lead-in from you guys on wall street overnight. that should help sentiment in asia. flat.aland, pretty much the kiwi, not doing much better. the dollar is catching a little bit of a break, as we mentioned that political risk hanging over germany, which continues to weigh on the euro. australia we will see break above 6000 again. seeingy, we could be that break out, about 50 points
away from when we broke that threshold. we have rba's minutes on tap in the next hour. governor lowe is expected to speak later today. japan, we are setting up for a rebound, quite a rebound as we have seen a down slide of 6/10 of 1%. the dollar-yen, ticking lower overnight, still well below 113. a little bit of a breather for the yen. betty: we are certainly keeping our eye on the japanese markets. back in the u.s., stocks up as the s&p bounced off its first back-to-back weekly slide since august. we also had that big news on the at&t-time warner merger, and that could impact other deals. su keenan is here with the latest. let's start with some of the stories we saw with this higher close. su: a different kind of merger
monday. small caps took the title on what was a relatively slow day. we have a lot of commodities down on the stronger dollar, but u.s. stocks rose. the s&p 500 bounced off its back-to-back weekly slide. bp s&p for the fourth day as investors continue of taxh the progress legislation. let's go into the legislation dominating -- litigation dominating the big movers. the real big news, at&t and time in the-- it came late day, so you haven't seen the stocks absorbed the news, which is unfolding as we speak. the u.s. justice department sued to block at&t's $85.4 billion takeover of time warner. if we go to time warner, you can see how the stock has fared.
delivered a major blow to the bid to create a media and telecommunications empire. some of the antitrust executives in the justice department say the merger would greatly harm american consumers. what is important is this is the first time that we have seen the justice department moved to wasn't aerger where it clear monopolistic threat, and that is what could put a chilling effect on other deals. let's go into the chart on the semi conductor outperformance, because the deal that did grab the headlines earlier in the , andon, between marvell chipmaker trying to build itself athey agreed to buy cavium for about $6 billion, the company recovering after investors
,ushed out a recent conflict the latest consolidation in the chip industry. there are big questions going forward about how robust m&a activity will be. that's right. getting back to the at&t theyit, it seems like suggested that if he or she blocked this deal, it would benefit consumers, but what about telcos? how widespread could this impact be yet go su: there's a lot of talk about how it is a blow to president trump's first year in office. this is a pro-business president. the u.s. justice department lawsuit, blocking the deal. let's take a listen to some of the sound coming out of a press conference that's going on. >> despite our disagreements, we have offered concrete and substantial solutions, and as we had to court, we will continue
to offer solutions that will allow this transaction to close. su: it looks like the fight is not over yet, what you are hearing from top executives at at&t. again, if we look at what the concerns are immediately for the market, it's the other deals out there and what has been a less than banner year for m&a. a $105 billion offer for chipmaker qualcomm -- that would be the biggest deal of 2017 -- does this raise questions about that deal? the large media suitors are circling 21st century fox, as the hunt for a multibillion-dollar package of media assets has been in the headlines. talks in cross-border terms of nestle considering a bid for the u.s. organic food maker hain celestial group. you can see if you look at the chart how that stock has benefited from a lot of the news coming out from people familiar
with the matter just on this monday. a lot of questions going forward. the at&t ceo said this suit throws a lot of uncertainty into the market. we hope to have the trial done in 60 days, and as you heard them say, they have offered the doj solutions that just were not accepted. back to you. yvonne: given the president bashing of cnn, the question at&t and time warner want to know is, was the steel block for political reasons? or are we talking about competition? let's get to the first word news with emma chandra. emma: janet yellen has confirmed she will leave the fed once a successor is sworn in. yellen could have stayed because her term as a governor doesn't end until january of 2024. her decision leaves president trump with an additional spot to fill on the fed's board. yellen was the vice chair from 2010 to 2014. before that, she was head of the
san francisco fed and chair of council oflinton's economic advisers. chancellor angela merkel said she would rather face a new election rather than form a minority government. with president steinmeyer, merkel said she would prefer to go back to the electorate than attempt to govern without a majority or clear mandate. the u.k. is being warned it must do more to break the brexit impasse, and an improved offer may not be enough. chief negotiator michel barnier told a conference in brussels that london must offer a solution to the irish border, and those who wanted brexit must come up with ideas. the former italian prime minister mario monti told bloomberg that the ball is in the uk's court. >> i think it is also in the interest of the eu to do so. what i think confuses the ideas thate british is probably
what is out there, all the attention is the amount to be paid. >> eight women have accused tv host charlie rose of making "unwanted sexual advances toward them." says rose apologized for what he termed inappropriate behavior. cbs news has suspended him, while pbs is halting work on its talkshow. bloomberg has a distribution arrangement with charlie rose has suspended his show from bloomberg tv and radio. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. yvonne: president trump has designated north korea a state sponsor of terror, paving the way for additional sanctions on kim jong-un's regime. >> the north korean regime must be lawful. its unlawful nuclear
ballistic missile develop and cease all support for international terrorism, which it is not doing. yvonne: it's part of what the president has called in excellent pressure campaign against pyongyang. with us for more is joe subject, joining us from d.c. rex tillerson has called this more of a peaceful pressure against pyongyang, but how significant is this move from the trump administration? is it more symbolic or practical? joe: north korea is one of the most sanctioned nations on earth. is it more symbolic orthere aren do around the edges, which is what some of these sanctions will take care of, but there is some heavy symbolism. it allows the u.s. to go to smaller countries and other players and say, do you want to do business with a state sponsor of terrorism? it is also a bit of a slap at north korea. the designation was lifted in
2008 under then-president george the highwhich was at point of the attempt to negotiate an end to north korea's nuclear program, and it was something that the north koreans really sought. there is some symbolism. it is important symbolism. yvonne: why now? we were thinking he would announce some sort of approach while he was in asia, but it doesn't seem like we got a lot of diplomacy on that front. what can we make of the timing of this announcement? e: i think trump was waiting to get back to the u.s. and not that would put a spotlight on china, which the u.s. is relying on to provide a great deal of pressure on north korea, as well as some of the other asian allies. to get all their
ducks in a row and get the treasury sanctions prepared. it was a bit of a play for proper diplomacy, and i think that is what they are trying to achieve here. betty: it is interesting timing after trump's big asian tour. was there any sense or speculation that this might be coming before that trip? they joe: had been looking for ways, and this was one of the outstanding items the u.s. had a chance to put into place, this designation. there was a lot of talk before the president left for his asian trip that this could be the next step that the u.s. took. he's put that forward, and here is what is missing some of the more strident rhetoric, the saber rattling, threats of military action. this was a pretty measured statement from the president, as
well as his secretary of state. pursuee continuing to diplomatic options here. yvonne: thank you so much. we are certainly going to be watching any reaction to this. innovation. driving how china's automakers are looking to automation to make inroads into western markets. series on china's bay area continues later this hour. yvonne: up next, germany's chancellor says the people may be the only way to break the nation's political deadlock. we will look at reaction from westpac's sean callow. this is bloomberg. ♪
from the bullish trade that we saw here in the u.s., the dollar rising as well as stocks. i am betty liu in new york. in hongi'm yvonne man kong. germany faces the prospect of another election after coalition talks fell apart, and chancellor merkel said she would not try to form a minority government. she said she is due to go back to the voters than destabilize the country. i have no plans for a minority government at the moment, so we have to wait. the country has so much to do, it something that will be thought of very carefully. i think new elections would be the better way. yvonne: the euro fell against a majority of its g7 peers as merkel's attempt to form a government collapsed. investors questioned how these developments might impact economic growth.
sean, a bit of a roller coaster when it comes to the euro in the last 24 hours, merkel saying, never say never, but pretty skeptical when it comes to form in some type of minority government. where does that leave the euro? think a downward bias is the short answer. there is a renewed political risk premium in the euro. arounda large premium the french elections in particular, and then complacency through much of the summer, the euro region 1.20 with a combination of political stability and expectation of tapering from the ecb. this is a pretty unexpected source of uncertainty. the euro, if there are new elections, it will fall to about 1.16, 1.16 five. at least for now, we have the
prospect of discussions continuing, renewal of talks. that seems to be what the president wants. the markets aren't pricing in risk just yet, but they are watching with a lot more attention than they were a few days ago. yvonne: i'm sure they are not pricing in this potential repeat election, but as you mentioned, something they might be focusing on is the treasury and bund this is against the u.s. generic government two-year yield, and that spread now -- i'm sure you have seen the widest since 1999. then you have to juxtapose this with the fact that the german economic backdrop remains quite robust with gdp at 2.8%. you would still be pretty bearish when it comes to the euro? sean: that's right. i guess,like to see,
the longer end of the u.s. yield curve pick up, along with the attractiveness for investors coup are looking at that part of the curve, but it's been pointing lower for a long time. those short and spreads are a useful input. withusly, the euro overall germany's strong trade has powerful backing from a large current account surplus, which is not far from the largest we've seen since the euro was launched in 1999. it does have that strong fundamental backdrop. overall, you would think the flows should be working against the euro and towards the u.s., but not to the extentstronger di showed at the beginning of this hour. it shows you that according to the leading indicator, it looks gdp we are set for 3%-plus
growth in the u.s., which would make goldman sachs' view that we get four rate hikes next year true. given that, why aren't we seeing a stronger dollar? i know it has risen, but it seems like the strength of the dollar has stalled. yes, you are right. clearly, the market isn't the view.th the market is expected somewhere between one or two. we are looking for two hikes. as we were saying, there's caution around the political situation. not much has passed congress this year. package of tax cuts, it looks like it will be a close call, and markets are questioning what sort of impact it will have on the economy. will it do much for growth?
if we go to 3% growth, maybe we have to wait for that dollar rally to come through, but there is a great deal of uncertainty over what will be delivered by congress, and that is probably one of the factors holding back the dollar bulls. betty: countering the rise of the dollar. some areipside, wondering why the japanese yen isn't weaker. the shorts are still not getting despite thethe yen boj continuing it's very easy monetary policy. what is going on there? sean: i tweeted a chart yesterday on the positioning of leveraging -- it's the second largest short yen, dollar-yen position since 2007. they are very much on board. it's a reasonable trade from that point of view. rate divergence looks like it is going to continue.
across the curve, you've got shorter u.s. rates. on the longer end, there's not much happening in terms of the 10-year spread, given that the 10-year treasury is roughly range-bound. is going to be the case for quite some time. you can see why investors have bet on further dollar-yen gains. obviously, to the extent that the dollar-yen can be prone to risk aversion, those positions come under pressure from time to time in terms of profit-taking. yvonne: we've got to talk about the aussie a bit, that falling yield differential between what we are seeing in treasuries and the aussie you. is this a turning point for the currency? sean: we are probably getting there. a have been suggesting that few months ago when the aussie was around .88, .81.
we are potentially slightly softer, but next year, if the fed does deliver at least two rate hikes, and the rba is on hold, as we expect, and the in,et has yet to price it we've got it significantly lower next year. yvonne: sean callow joining us live from sydney ahead of those rba minutes happening in the next hour. you can round up the stories you need from this edition of daybreak." be sure to check it out. this is bloomberg. ♪
betty: a quick check on the latest business headlines. broadcom is being told to substantially improve its offer if it wants to buy will come. investors say the $75 a share current bid must go up to $80 before they buy it. qualcomm rejected broadcom's reproach earlier this month, saying it was too low. broadcom has not approved a proposal, but says it remains fully committed to a deal. yvonne: china's hna group is said to be trying to delay repayment of a $450 million u.s. loan by offering to pay higher interest. the conglomerate is struggling with debt. sources it is prepared to double higherment to 2.6% and if the banks will push the due date back to february. we told hna has three more loans coming due in the first half of next year. betty: uber is buying 24,000 suvs from volvo to create a fleet of self-driving cars. be delivered from 2019
yvonne:yvonne: 7:30 a.m., tuesday morning in hong kong, 30 minutes away from asia's first major market open. winter has officially come. it is starting to get chilly out here. betty: not as chilly as here. 6:30 p.m. monday evening. the dow, trying to reclaim some of its losses from last week. ,: the united states is designating north korea a state
sponsor of terrorism. it opens the door to additional sanctions and further isolates kim jong-un's regime. north korea joins iran and sudan as countries on the u.s. terror list. tebow was on there but was removed two years ago. pyongyang was removed under president george w. bush in an a nuclear salvage deal. at&t says it's planned takeover of time warner will not lessen competition p the justice department has filed an antitrust provision in federal court to block the deal, saying it would harm american consumers. at&t ceo randall stephenson says of selling cnn is a nonstarter. wedespite our disagreements, have offered concrete and substantial solutions, and as we head to court, we will continue to offer solutions that will allow this transaction to close. is expected to make a series of small adjustments to policy guidance
next. you're a area officials tell us the wording in bank forecasts should be consistent with a gradual withdrawal from stimulus, and present mario draghi made it clear that forward guidance will remain a key policy tool. he says the exit from qe remains on track. >> the economic expansion remains solid and broad-based across countries and sectors in the euro area, mainly supported by domestic demand. recentng to the estimate, real gdp growth has continued in the third quarter at a rate of 2.5% year on year. wealthy people in saudi arabia are said to be ring-casing their assets as the anticorruption crackdown has widened. those already detained include
-- [indiscernible] global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. yvonne: we are counting down to the market open. start, and weoff are seeing asian shares recovering some ground. japan could be a big rebound. >> there are a few reasons for this brightening of the mood. stage ahinese stocks late session rally monday, and we do have that long-standing auger boo, u.s. tax reform being put on the backseat. we have concerns over european political uncertainty being tempered by this economic growth picture, looking like it is going to withstand this latest german political plot twist, and we had investors not looking too perturbed by yellen's
resignation. we do have the dollar rebounding while gold fell by the most since september, and with the yen holding onto losses, that does bode well for japanese stocks. while more volatility is expected for tokyo markets, strategists say don't lose out on the chance to buy, especially for lack of players. betty: we have been talking leading up to the rba minutes coming out. stocks are recovering, but it is still one of the biggest laggards among benchmarks this year. will that continue in 2018? sophie: that's a change in story, and it comes down to earnings growth. ubs does see above-trend growth asia,e u.s., europe, and but comparatively sluggish for australia going into 2018, and deutsche's says that earnings are responsible for about two thirds of the asx 200's advance.
taking a look at the breakdown for the asx 200, we have aussie stocks sticking below that 6000 level. we have consumer discretionary stocks leading the gains for today, and i do want to highlight the als. that is the worst performer this morning, falling nearly 10% after its annual guidance miss forecast. morgan stanley sees the currency dropping to $.65 in 2019 even 2019 evenalia's yield that australia's yield premium is likely to fade. betty: thank you so much, sophie cameron and, taking a look at the markets. janet yellen sent a letter to the president telling him that she will step down as the federal reserve chair when her presumptive replacement jay powell is sworn in. how big are the shoes that powell must fill?
kathleen hays here with us with a look at donald trump. he's been given this big opportunity to reshape the fed. that was i don't think on his agenda when he started running for president, but it started occurring to him and everybody that this is an historical reshaping of the federal reserve. surprise, it was not a that janet yellen sent a letter thate president saying when jay powell is sworn in, she will step down. it would've been unusual for the chair of the federal reserve, even though she has more years to go on her term as a governor of the board of governors, you don't want to stay behind and look over somebody else's shoulder. expected, but remember, she's the first woman who has ever been chair of the federal reserve. one way she made history, she is promising a smooth transition, and she has expressed confidence in the role that jay powell will play. lead thepared to
board, i'm gratified that the financial situation is much stronger than a decade ago." she was fed chair and before vice chair. yes, she was at the san francisco fed as president, then vice chair, head of the economic council of advisors, and in her for years, continuous growth in the u.s. economy, unemployment down to nearly 4%. inflation, sluggish, but she got the economy on a sound footing. she also stop to the quantitative easing program and got is ready to lift the qe. a lot of people were worried about that, and she started the portfolio unwind recently. very impressive track record. let's say that. looking ahead, donald trump has already appointed jay powell as the chair.
that is one of the four seats on a board of governors he is going to fill. three more seats are open. president obama couldn't get some of his picks in place when he was president. we have had some vacancies for some time. donald trump presumably with a republican majority in the senate will be able to get this through. yvonne: and potential shakeup when it comes to the composition at the federal reserve, but another central bank getting ready to reveal architect and moving news, the rba releasing those minutes. market-moving news, the rba releasing those minutes. what are we expecting this time around? kathleen: i would say that most economists are saying that we are going to get a fairly dovish set of minutes. they left their key rate unchanged. you can see the key rate is unchanged at 1.5%, record low.
you can see inflation slipping down once again. the housing market has lost some steam, just a little bit in australia, and an important thing that is happening, there's concern about private consumption with wages looking on the weak side. if i could look at one more chart, you can see here that, yes, on implement has come down, but wages are coming down, too. the rba is on hold for now, yvonne. yvonne: thank you. we will look ahead to those rba minutes. is in talkse group with fear chrysler to deep in the tire. speaking exclusively to our china correspondent tom mackenzie, wenzhou auto's president said the company is poised to enter the u.s. market. tom joins us from beijing.
chinese carmakers have been promising to break into america for years. can guangzhou auto pull it off? tom: about a decade ago in 2007, you saw chinese automakers going to some of the big car shows and say, we are going to break into lockedket, and they were for cheap knockoff spirit that has changed radically. guangzhou auto is an example of that. the trump brand is one of the most popular suvs in china. we visited their factories, heavily automated. it's very high end. they think they are well positioned to enter the u.s. they think they can do that by 2019. we also talked to the guangzhou
auto president about that tie up, the relationship, their joint venture with fear chrysler. they produce jeeps and fiat cars. roughlyect to see sales in line with sales they saw this year in 2018. we also talked about tesla, which is looking to build out a factory in china outside of shanghai, and the president of guangzhou auto said he would welcome that competition. i started this interview by asking them about that joint venture with fear chrysler, a relationship he would like to see deepen. >> we are aiming to enter into the u.s. market in 2019, and this is a very crucial move. at the current stage, our internet i'll is -- internationalization process has taken off. we've laid the groundwork and carried forward our service operations to 14 different
overseas countries this year. entering the u.s. market will be a huge breakthrough for guangzhou auto, because if we want to reach far in the grand path of globalization, establishing our brand in the u.s., and winning the trust of american consumers, it will have extraordinary symbolic significance to us. tom: i have to ask about trump. you chose the name and long time ago, will before donald trump became president. look, he's a controversial figure, to say the least. is it positive for your branding, or is it a drawback? >> we will definitely choose a name that american consumers are comfortable with. if american consumers think our similar to ais too certain president and therefore have mixed feelings about our products, we will pick a new name for them. chrysler is your joint
venture in china. how much of a role are they going to play into your market?n in the u.s. > we are satisfied with our relationship with fca, and both of us are seeking to gradually improve our cooperation. now the shareholders of the companies are discussing and exploring more channels and areas to deepen and extend the scope of our cooperation. tom: where do you see auto sales in 2018? >> two key factors are likely to affect car sales. one of them is the continuous improving of the macroeconomic situation, which is supposed to provide strong support for the growth of car sales. although the other factor is negative, the government is due to scrap a policy granting a tax cut for purchasing small engine vehicles. i think next year's sales should be around the same level. we can expect a growth of some 5% in 2018. tom: would you welcome any moves by the chinese government to
lower trade barriers, to improve the u.s.-china trade relationship? it could help you when you are looking to the u.s. market. is that something you would be happy to see at this stage? >> the number and total value of american cars exported to china are far more than those of chinese cars sold in the u.s. market. therefore, i hope the governments of the two countries introduce more policies that would favor development in both countries and more measures to encourage carmakers in both nations to deepen collaboration in areas of technology, manufacturing, and sales. and optimistic about this am looking forward to better policies. yvonne: betty, we have been talking about a lot of these chinese companies making their footprints in the u.s. it kind of works both ways. many western companies want to
expand their presence in china, as well. airbus is certainly one of them. they have been in china for some 50 years with their assembly plant in tengion, engineering but shenzhening, is their next destination, and i had a chance to sit down with the chief technology officer paul armenta about this. they just launched an innovation lab. shenzhen, long known as the silicon valley of china, but he disagrees. think that if you look at silicon valley in california, there is little silica and that happens in silicon valley, and of course, the name goes back to the 1980's when that was the genesis, but today, it is mostly a software and web services-based innovation ecosystem. shenzhen is rightfully the silicon valley of today because it is where the hardware innovation takes place.
yvonne: just given the development that we have seen in software, particularly in china, that is why airbus is increasing its footprint in the region. more of that interview betty:. looking forward to that. it is just so interesting, how far we have come, how much tech is disrupting so many industries, including in the aircraft world. having a chief technology officer it self is rather interesting. -- itself is rather interesting. it was fascinating earlier this summer to hear airbus -- speaking of silicon valley -- there is a silicon valley think take coming out with this flying taxi. they are looking at all sorts of ways they can be disruptive. there we go. there is some video. they are trying to say, we aren't going to fall behind. if there's going to be an uber of the air, we are going to be there.
embracing the entire process. to go on to an internet platform to use different methodology, including big data to fulfill the demands of the customers, and to integrate a different strategy in order to deliver new retail experiences to the customers. us yvonne: for more on the retail landscape is michael chang, pwc's retail and consumer leader for the asia-pacific and china region. thank you for joining us. we are saying that this signals a major shift in retail, but this is something, this combination of off-line and online, it is something alibaba has been focused on, jd.com, amazon. is this really that new? >> i think the new concept was 1.5 years ago.li
the concept is not just a matter of new or old, but it is trying to fully expand the so-called definition. people have been talking about ali wants to understand that the concept is china orabout advertising. it's about logistics and supply chains. it absolutely is about much more than just -- it's much more about the overall logistics, as you say, the channel to get retail or consumers wherever they are. does this matchup make sense to you? >> of course. at the retail trend recently, everyone is talking about -- obviously, it's phenomenal, and people are
looking into how e-commerce can be expanded in u.s. spaces. that's why investors are so skeptical or cautious, and this is the reason why -- everyone has looked at this new retail concept and tried to make it work for the future of the retail business. yvonne: if you could think of one criticism of alibaba, it is that it's very focused in china. they do have a lack of a global presence overall, and most of these states they have been invested in have been focused in china. do you think this model can be replicated in other markets like the u.s.? >> certainly so. i think ali is a presence in china because of its origin. they came out of china. they really know those 1.3 billion people. this is the market in the next
10 years. because of this concept or model, this is the reason why a lot of u.s. or even european retailers, it is something they would like to think of. news isst acquisition europeancombining with giants for retailing, which is something they want to tap into. yvonne: should amazon be worried? they are not really in this race for new retail. they are behind when it comes to whole foods come as well. >> amazon on the other side of the world is trying to do their own business. it works both ways. amazon can come to china, and alibaba can go outside of china.
toyota insists it has no intention of closing the plant, saying it is investing for the next 30 years. yvonne: the world's largest listed jeweler first reports numbers tuesday, and bloomberg intelligence says the operating margins probably surged after it closed with a lust profitable outlook. a rise in chinese shoppers visiting hong kong and macau may see same-store sales exceed a targeted increase of 5% after falling to a record low last year. betty: indian tycoon vijay melia has announced charges against him are baseless, as he fights extradition from the u.k. the billionaire is accused of fraud in connection with his defunct kingfisher airlines. been living in self-imposed exile in london, saying he wants to be closer to his children. he's also said he fears for his life if sent back to india. yvonne: coming up on the next hour, a market update with
♪ in hong8:00 a.m. here kong. yvonne: welcome to daybreak asia. best pacific markets recovering from losses. the dollar fell. janet yellen confirming she believed he said -- she will after herfed successor takes ever next year. germany facing another election as angela merkel rules out trying to rule by majority.