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. President s. A lot hanging on this trip here. Betty a lot of bravado coming from trump and from monster sayoshisan. 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 hardline approach to north korea. President trump said he would back saudi arabias crackdown on corruption. He said they know what they are doing. Local banks have said to have theen the assets, including 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 onsite. She wants Foreign Investors to switch focus from new Zealand Market to what she calls more productive areas. Absolutely, new zealand is an 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 wideranging interview with new zealands 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 threeday 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. Twoyeareyes. Highs. 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 australias 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 sixday event. Yvonne thank you so much, sophie kamaruddin, watching stocks in th japan. The largest tech m a deal could reshape the chip industry. Broadcom says it is prepared for a proxy fight after indications that its 105 billion bid for qualcomm will be rejected. Both companies slumping on this report. Semiconductor reporter who broke this news. It sounds like a very complex deal. Iss is really broadcoms this broadcoms 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 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 qualcomms 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 behindthescenes worried about the regulatory issues as well here. According to our reports. Analysts are saying the ball is now in qualcomms court. Are they o able to convince them it is a good one . 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 nearterm dollar 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 tmobile 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. 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 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 dont 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. North korea is just a few miles to the north of us right here within artillery range. Not that i am suggesting theres 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 Koreas Nuclear programs. This is going to be also like in the other stocks on the asian tour, a twopronged approach. One, the security issues, and also, trade. On trade, donald trump bringing 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 zerosum 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. Do you have an agenda as you go over . Net me tell you, there is very few places i dont 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 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 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 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 dont 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 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. Trumps 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 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. Trumps 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 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 righthand 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 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 todays 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. Betty let us get a quick check on the latest business flash headlines. Apple has responded to reports from the socalled 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. 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. Tencents 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. , 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 . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. 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. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. 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 hardline approach to north korea, although no new measures were announced. Increasing concern about the deficit which presents a growing reform as theax house ways and Means Committee starts considering the legislation. The republican changes good increase the federal debt. The legislations 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