Rishaad just looking at what is going on, you would think asian equities would be expensive relative to the u. S. They beat the s p 500. I want to bring up this chart. If anything, pricetobook ratio, and forward asiatoearnings spreads, stocks looking more attractive compared to u. S. Counterparts. Those spreads have widened to four. Nus there we have it. The rally could have legs. Fascinating its not just a more by you, but getting cheaper. Have not seen the political dysfunction in Washington Play out when it comes to the markets , and some jitters in the asian session. The last time we had a the lastt shutdown, three times, the s p 500 gained. Three, so wen day not just asian equities, but in the u. S. As well. Decisionsnk dominating the agenda, as well as u. S. Gdp. Sophie kamaruddin joining us now. Jitters. E do have asian stocks kicking off the session subdued. Japanese stocks are slipping as the boj policy decision is due tuesday. Lets check the open. We do have the taiex gaining , extending gains on friday. Later today, we are expecting taiwans export orders. Chart,to pull up this 9159. We have the tank decision due thursday. The Malaysian Ringgit has have the best start since 2010. Vietnam will have to consider that when it decides on policy rates. Oil has been partly responsible, despite the the ministry to malaysian revenues. A move tore warning the upside for the Malaysian Ringgit soon. There is expectation the asian forex rally may have run its course for now. The euroncies today, rising on optimism the coalition is being cobbled together in germany. The pound moving towards the 1. 39 level. The aussie around 80, little changed. Theonwealth bank, that is upside should the imf raises global forecast. The yen extending gains for a third session, sticking below 1. 11, but if you look at the best performers in the region on the msci asiapacific index, nippon paint jumping in tokyo on a report its largest shareholder is seeking to boost its board representation. I want to highlight one stock rising after a positive earnings outlook. This laggard is one of koreas hottest stocks now tumbling after climbing 192 over the past year as the skeptics are calling for further declines for the biotech company. Rishaad thank you. It is washington, d. C. Front and center for politics as ever, but also for financial markets. Lets get first word Financial News with paul allen. In anmakers are meeting attempt to find a compromise on spending and the Government Shutdown. Withare hashing out a plan Mitch Mcconnell indicating a vote early monday morning. Senators are discussing options that could extend stopgap federal funding through february 8. Opec and russia will maintain Oil Production curbs through 2018 and hinted they are ready to cooperate beyond that. The Russian Oil Minister said restrictions would stay until the market rebalances, though neither he or his saudi counterpart would confirm curbs extending into 2019. That cooperation between our countries is longterm. It isless of whether market stabilization or other areas. Our core operation is based on agreements we signed in china. Point fivest one years, we have been actively implementing this and have shown a lot of success. We had a successful run. Gained as germanys social democrats voted to open formal talks with chancellor angela merkel. Way for a fourth term for the chancellor. She welcomed the vote before meeting her own Party Leaders to plan strategy. Coalition talks are expected to start tuesday, ending four months of political stalemate. Singapore posting the biggest with among asian cities, rents rising in all major asian cities with the exception of tokyo. Singapore leads the pack with rents surging 25 as growing demand faces moderating supply. Rinse and hong kongs Central District are expected to rise 12 over the same period. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Haidi the Government Shutdown ending its second day with fingerpointing from both parties as to who bears the primary responsibility. Americans no why the dysfunction is occurring. President , hence we are in a trump shutdown. Leadershipcratic down the government to appease a portion of his partys left wing base. I agree with majority leader mcconnell, the trump shutdown was totally avoidable. Fromdent trump walked away two bipartisan deals. The democratic leader could end this today. We can get past this manufactured crisis and get onto a host of series issues before thoughtful,ire bipartisan negotiations. Rishaad our bloomberg editor is falling all of this following all of this for us in washington, d. C. Is there a chance we pull back from the abyss on monday . Hope springs eternal. There is a lot of action on capitol hill at the moment. Senator Lindsey Graham, a bipartisan voice, is trying to get the open government again, was just meeting with Mitch Mcconnell, minute to minute inelopments going on, and so the very early hours of monday morning there is expected to be a vote in the next few hours. We could see even more action trying to nail down a compromise that would be palatable to everybody. On getting the government reopened and getting a commitment to talk about immigration offline, and get that out of the continuing resolution, get the government open, and talk about immigration in a separate measure. Ofever, there is a lot mistrust and nasty language on both sides. A lot of republicans dont trust democrats. Chuck schumer yesterday called negotiating with President Trump like negotiating with the jello , so there is room for things to go wrong before we get the government reopened again. The centrist has group been working on . Does that suggest Party Leadership on both sides are out of the mainstream . , andu could argue that some of the people in that centrist group have said it. Took a nastym swipe at stephan miller, a senior aide to President Trump, havingim as heaven driven the immigration policy as a hardliner. At that bipartisan, centrist group, they would say people running immigration policy at the white house dont include President Trump, but some of his more hardline advisers. As you showed in your clip, senator mcconnell things the democrats are beholden to their left wing base on immigration, so giving republicans the chance just wantt democrats unfettered immigration. There was a lot of misinformation on both sides that the centrist group is trying to push aside and reach a compromise. Haidi there has been the blame game, right . Who gets the blame when it comes to it, republicans or democrats . What kind of messages being sent . On both is always blame sides and mistrust on both sides. The American People would probably show at the moment that this is blamed on President Trump and republicans, but i think that is a number that could shift. While most americans support immigration legislation that is favorable to socalled dreamers, the young people brought to the country by parents or guardians , less americans see that as a reason to go to the mat and for a and force a Government Shutdown. You had a former senator talking at the heart that lawmakers want to be reelected and the Government Shutdown going into the work week, they might start to hear from constituents saying to set some of this argument aside and get the government going again. I think there is plenty of blame to go around on both sides. Haidi plenty of blame to go around. Thank you for that. Onitoring these developments the u. S. Government shutdown. Better indication of the impact as the week begins. More on the shutdown in washington and the potential risks to the market with Standard Chartered. Rishaad revenue falling for a dalianstraight year at wanda, but the ceo says foreign creditors need not the alarmed. This is bloomberg. Rishaad you are back. This is Bloomberg Markets asia. I am Rishaad Salamat in hong kong. Haidi i am haidi lun in sydney. Lawmakers meeting on capitol hill to resolve the first Government Shutdown since 2013. Lets look at the ramifications for the market with Eric Robertson from Standard Chartered. Great to have you on for us. We saw a blip when it comes to the equity session. And 19952013, but 1996 with the s p gaining to each of those shutdowns. Painere are you seeing the , fixed income, fx, further downside for the u. S. Dollar . I think it is more on the fx side. There has been quite a bit of confusion in the marketplace about this breakdown in correlation between fx and u. S. Interest rates with yields rising and the dollar selling off. What the dollar is telling us is that things like that twin bill for cents in the u. S. And the inability to come to agreement on the debt ceiling and Government Shutdown is causing a problem for the dollars attractiveness. View this bearish dollar has been going on for most of the past year, so what would you say has been driving Market Sentiment that is so overwhelmingly negative . I think there are a couple of interesting changes. Market was very skeptical about a trumps ability to pass tax cuts were fiscal stimulus. The market was skeptical about the feds ability to deliver a sustained period of Interest Rate increases. Weve gotten that fiscal stimulus and tax cuts and three rate hikes, and the market expecting three this year, so we have seen better Interest Rate support, which a number of people would have expected to be supportive of the dollar, and that has not happened, so that change in correlations has been surprising to the market, although dollar sentiment is more mixed up in the last 34 years. Rishaad that is a head scratcher, isnt it . Yields going up, dollar going down. Its probably more about where we are in the economic cycle. Ay not go there rather than late stage moved by the u. S. Economy . I think there is an element of truth to that. About where we are in the Business Cycle and where Global Equities are, that is another factor causing confusion for investors, and the resilience of equities in the face of a potential Government Shutdown has been extremely isprising, but your point right, the ecb and boj are getting closer to what we might call policy normalization. Im not sure i would say tightening yet. The fomc is six months into their tightening cycle, so there is anticipation, certainly on for a shift back to European Growth and Interest Rates. Bit of head other scratching is countries closely tied to the u. S. And turns of Monetary Policy are doing well and are proving to be resilient as well . Case,t is certainly the both on the equities and currency sides. Four Central Banks in asia to raise Interest Rates this year, korea, malaysia, taiwan, and thailand. On thes been noteworthy currency side in asia is that there is a growing expectation that with an increase in inflation, may be the Central Banks will allow their currencies to appreciate more than historically would be expected rather than keeping a ceiling on inflation. If currencies are rallying, it does some monetary tightening for Central Banks and that is an important dynamic we are facing today. Rishaad please stay with us, if you would. Eric robertson from Standard Chartered. ,aving a look at dalian wanda the boss says the group will not default and pay all off all foreign debt. It is selling assets after screwed me its Foreign Investment strategy. It sold them most of its theme park assets for 9 billion, cutting its debt by 7 billion, and leaves about 10 billion in cash. Haidi the worlds biggest maker to delist a unit from hong kong stock exchange. It will pay 32 more than fridays Closing Price. 300 millionkes pairs of athletic shoes a year and accounts for 20 of the combined also value of sports and leisure footwear. Up 27 the share price after getting privatization offers offers. Air tops Cathay Pacific again. Decisionthe airlines to combine a lower cost carrier with its Budget Airline is paying off. Cathay pacific does not have a lowcost operation and is missing out on the growth and Budget Travel in asia. Haidi coming up, higher oil is a good thing for some emerging markets, but could spell troubles for others. We will discuss the implications next. This is bloomberg. This is bloomberg. Ericad you are back with robertson from Standard Chartered bank. Lets talk about oil. E have this meeting in oman when we get to 63 a barrel for beyond thatgoing with shale facilities becoming economical the higher the Oil Price Goes up . Of these bets on 80 oil misplaced for that very reason . I dont know if they are misplaced. Assumption about oil going higher than i think we would forecast. For oil totion is stay in a range around the low 60s for the year. The problem has been the lack of investment on the u. S. Side would mean the ability for shale oil to turn on the caps tapsignificantly and significantly increase supply is impaired. Im not sure 80 is necessarily the ultimate objective. There is a tacit recognition that opec needs the help of russia. Breaks down,nce the consequences for oil prices could be quite dire. Certainlyok, there is an element of truth to the fact that the cooperation between opec and the large nonopec producers has contributed to the stability and increase in oil fair to sayit is that we cannot underestimate the improvement in supply demand fundamentals. If you look across emerging oilets, a number of exporter and commodity exporter countries have performed well on the currency side and equity side. The commitment over the weekend to low volatility and stable prices, how does that play out in terms of your view of this commodity rally . I guess the comment i would make on commodities generally is similar to what i said about oil. Had a significant improvement in the supplydemand fundamentals. Expectation is that while Commodity Prices may not rally significantly further from here, the downside is probably fairly limited. The way we think about it in terms of its impact on the emerging markets, oil prices in a range of 50 to 75 tends to be a benign the price range in terms of its spillover affect two other asset classes. 80ve significantly above or down into the 30s or 40s would cause problems for exporters and importers. Haidi thank you for joining us. Eric robertson the head of global strategy and fx for Standard Chartered. Coming up, Companies Facing record on payments. Rishaad here we go. 9 29 in hong kong. Company news, a french near a deal here. 11. 5 billion. This is from the wall street journal. Lots of moving parts. The alpha, shutdown being ignored by markets. Currency markets not feeling that well. In chancellor Angela Merkels deal for a coalition. Heading past 6. 4 against the dollar. Boj meeting tuesday. European central bank thursday. Earnings, earnings, and opec. Haidi absolutely. We are looking ahead to Central Banks and dominating the agenda this week. The big one. Kathleen hays looking for signs of winding back the stimulus. Two questions will be, what will you do next . Will he go for another fiveyear term . But wehe hot favorite, did have that stealth tapering earlier this month when they made those tweaks when it comes to the bond buying program. Also, looking ahead to fourthquarter gdp on top of earnings, giving us an indication of momentum. Markets largely shrugging off the shutdown. Some mixed fortunes in asia. Sophie is looking at the markets. Sophie mixed fortunes indeed. Stocks falling from sydney to seoul, to tokyo. Shanghai shares under pressure after a fourday rise. The hang seng extending gains for a fifth day, but hshares halting a rally has developers weigh on the index. It comes to the hang seng, real estate looking mixed. This is China Resources among the best performers, but Consumer Staples and financials weighing on the hsi. Author for the worlds biggest maker of athletic shoes, offering a delisting with the 32 percent premium to fridays Closing Price. Yuen is rising on the offer. Lets have a look at first word news and joined paul allen. A new Bloomberg Survey suggested boj governor is an increasingly strong favorite to win a second term at the bank. Said anys we spoke to choice except governor kuroda is likely to see the yen rise and stocks fall. Implemented ans unprecedented Stimulus Program to kickstart the japanese economy. Lawmakers meeting on capitol hill to find a compromise on theding and in the end Government Shutdown. Senator Mitch Mcconnell i