Rishaad tariffs on washing machines, the reaction reverberating this morning. Lets take a look at whats happening. It definitely doesnt favor u. S. Solar firms, chiefly. Lets have a look at this chart on the bloomberg. Yellow line showing what has been happening first with solar for the last year, about 104 moved to the upside. One of the Biggest Solar Companies in china showing a a whole but appears as pretty much flat in the last 12 months. This is after concrete evidence to support trade agencies finding chinese imports harm the domestic market in the u. S. , according to the u. S. Court of appeals for the federal circuit. As a result, we are seeing reaction to all this playing out. And saying what they feel about, saying they will put some tariffs on u. S. Imports as well. Haidi we are hearing from the sayinginistry in seoul, they requested from the wto to put a stop to the trade concessions to the u. S. Solar is one part, and washing machines are the other. Samsung stocks falling, samsung responding think this is a great loss when it comes to u. S. Workers and consumers with a tariff on washing machines. Solar starting off at 30 , dropping to 15 . On washing machines is higher. Sayingseeing reaction, that consumers and everyone would have to pay more. We are watching this trade. David is looking at the markets. The number of analysts who have said trade tensions, a trade war continues to be a risk they are watching. It did not materialize last year. Could this happen . David it could. I will show you the chart in a moment, the synchronized pickup in exports. Let me start out with what rishaad was pointing out. This is the solar index. A lot of these are not listed in the asiapacific. They dont necessarily export to the u. S. I will give you two examples. New stocks opening now. This industry in taiwan. I have taken a look at some of these names and their exposure to the u. S. Is virtually none. That doesnt mean outside this group you wont have any. That being said, these are the big names to give you a sense of where to start looking. The broader picture looks like this. When you look at solar capacity around the world, a lot of the experts go to china from the likes of malaysia. You do have capacity in the u. S. , but china far and away has the most solar capacity. You are looking at the number of operational solar plants on the chinese mainland. This is one of our charts. You can zoom in and get a sense of how massive this operation is on the chinese mainland. You have japan as well. South korea also very much in the mix when you look at that. The other thing to point out, besides solar, washing machines. Lg electronics down as much as 5 . It has come out and said it is disappointed. South korea looking to reinstate some of its tariffs. Lg electronics, 30 of sales go to the u. S. 30 of overall revenues come from home appliances. We dont know what the exact breakdown is as far as washing machines for the u. S. , but that is something to watch. Initial reaction down, recovering somewhat. The synchronized recovery in exports, a lot of lines here, i know, but it essentially shows that japan, taiwan, south korea, synchronized and a pickup in exports from the start of last year or two years ago, and where we are today. Is this at risk . Not a lot of this goes to the u. S. Some of it goes to china as well. Rishaad these Solar Companies and washing machine companies, thats all part of the first word news as we go over to paul allen. Paul seth curry has responded swiftly after President Trump made his first big move on trade, targeting asia with new on imports of solar cells and washing machines. South korea has responded by it wanting to reinstate trade tariffs on u. S. Products. Fundnternational monetary is warning policymakers to be prepared for a new recession. Globalen, they predict growth to accelerate. The fund raised its forecast to 3. 9 , up 2 10 from the projection in october and the fastest pace since 2011. Managing director Christine Lagarde welcomed the report that says threats remain. Productivity, low the aging population, and on and on, and future potential growth, all of that will continue to weifggh on mediumterm prospect. Paul protests around in the air israeli erupt. Vice president mike pence says the state department has been told to begin preparations immediately unmoving the u. S. Embassy to jerusalem. Europe toasked replace the u. S. As the leading arbiter. A Restructuring Investment Bank says it wants to sell bonds and currencies. Ther 100 billion china led bank has expanded to 84 member nations from 57 when it opened two years ago, and wants to raise that figure to 90. The president says hes ready to go to market now, although the size and tenor of the offering is not yet complete. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im paul allen. This is bloomberg. The threeday federal shutdown is coming to an end with lawmakers passing a stopgap bill to fund the government for the next three weeks. Jodi schneider is with me with a look at the latest. Is this just another bandaid . Reporter thats exactly what it is. This will be the fourth shortterm spending bill that has been passed since the government restarted october 1, the start of the fiscal year. Lawmakers have already said they will probably end up with a fifth one in february, because they wont be able to settle larger terms spending issues like how to fund domestic programs and the military by then. The real question is also what happens with immigration . Rishaad how does immigration play into this . Reporter the democrats took a stand on this. They said they wanted to attach to a must pass bill, like a spending bill, restoring the undocumentedng immigrants who came to the u. S. As children. Rishaad the dreamers. Reporter right. To be able to stay. President trump had said he is getting rid of the law that allows them to stay, the obama era law. He said initially he would be open to Congress Picking this up. The democrats decided to push for this and attach it to a must pass bill, for which their votes were needed in the senate. They only have 51 republican votes, and they needed 60. But in the end they were getting blamed more for this. The white house did a good job of casting this as a fight between keeping the government open and immigration. The democrats were painted the schumer shutdown tag stuck. The democrats decided in this Election Year that they would be better off with a promise. Its a pretty weak promise from Mitch Mcconnell to take up the issue. He didnt say they would vote on it. They have no assurances from the white house or House Speaker paul ryan that they would go ahead with a vote on the immigration issue as well, so they settled for a lot less than they had initially bargained for. Haidi just before the president firedoff to davos, he this missive when it comes to trade. What do we know so far . Lots of reactions in asia. Reporter the president has made good for the first time in a major way on his Campaign Promise to take on what these as unfair foreign competition in trade. , as much as tariff 30 on imported solar products, and as much as 50 on foreignmade washing machines. These are the first moves in this regard, and of course, we have started to see some shares in asia dropping as a result. The question is, will the supply more broadly, and what will the reaction be to other World Leaders and davos when the president shows up after having made this move under a little used provision under the u. S. Trade law . Haidi rishaad we will be revisiting over the course of the morning. Thank you. Jodi schneider there. Coming up, how tarnished is trumps dealmaker brand . The u. S. Shutdown analysis continues. Haidi plus, decision day for the boj. Hisns former chief shares take on corrodes tough balancing act. This is bluebird. Haidi the bank of japan finished a twoday policy meeting. The governor is expected to dampen down expectations of policy changes. Our policy editor Kathleen Hays is covering this in tokyo for us. No actual changes, but perhaps we will watch for that change in language and expectation. Language, communication, particularly when it comes to the bojs communication to bond markets, which are so sensitive to any possible changes. The economy gets stronger and inflation does move a little closer to its target. President ned by the for the institute for affairs. Onal monetary importantly, he was japans currency chief when he was minister of finance, 2004 2 2007. Welcome back. Pleased to meet you again. Reporter it is lovely to see you on this sunny and snowy day. A special occasion. Reporter in so many ways. The bank of japan, this question of communicating to the bond market, does governor kuroda have to take more steps in terms of filling out his strategy, not just in big picture, but eventual steps towards less stimulus . Think he has a lot of time to think about bond issues. People think he will i think this is a good time to about thew he thinks policy situation, not only for the quantitative easing policy, but control over the issues. In this case, i think he should the some clear guideline to markets. Reporter its not only a good time . Is it a necessary is it important that governor kuroda do this now to provide more clarity . I believe so. The economy is getting right. They say the economy is on the right track. Expect Monetary Policy to be easing. We will see how he will take steps. That is very important. The bank of japan and governor kuroda are careful that if he says one way, the markets will react, he will cause volatility, and thats why hes reluctant. Is that a mistake . Should they go ahead and make these explanations now . He has his own thinking, in his own words. Sometimes the dialogue between the central bank and the pressuresometimes the affects it. The central bank should tell how they will move on in the coming days. I think it is the time to move on. Reporter how much more difficult is it going to be, since the Federal Reserve does keep raising Interest Rates . What will happen to the yen, and is that a risk . I dont think it will have an impact on the Foreign Exchange market. The ecb is going to follow, but chairman,n with a new the ecb says just as we will it should notear, be expected this year. We have to know how we are , and how the boj is thinking, it should be clear. Reporter you were the currency chief for japan. If you were at currency chief now, what would you do . The interesting differential between the u. S. And japan is in the last year, it has been a pretty stable period come. To 10 years period compared to 10 years before. The euro is coming back and the japanese currency is following. Is the yen going to be at the end of 2018 . There will be some negative. Also there will be some stability. Even though there is some confusion, the economy is good. I dont see any big changes happening in the middle east. Korea, i hopeth nothing will happen. Reporter there is a lot to watch when you are watching currency, thats for sure. Thank you so much for joining us. He is the former minister of finance, minister currency chief in japan. We will send it back to the studio. We will have coverage of the decision and the bank of Japan Press Conference later today. In tokyo. Athleen hays lets look at the business flash headlines. Australias numbers down at the moment. 4 10 of 1 in the sydney session. Pat reagan saying catastrophe claims and other charges contributed to a 1. 2 billion ins, coming from wildfires california and storms in australia, as well as Hurricane Maria in the caribbean. All of that could add about 130 million to net costs. Meni reports say will of Square Capital is looking to lower the public profile, trying to turnaround three years of public law since. Losses. Employees took another hit in december, agreeing to a 200 million settlement. Buying bacardi is tequila maker petrone patron. The sales of the drinks have been surging. Surging more than 700 between 2002 and 2016. Other brands owned by the same include grey goose and bombay sapphire. Haidi coming up, netflix shares are ahead after bringing in more than one million subscribers, despite a price hike. Their best carter ever, quarter ever, next. This is bloomberg. Haidi as we wait for earnings, no less than 80 earnings reports expected. Lets go over to the ones weve got in the u. S. Netflix is dominating headlines after accumulating more subscribers. Both good stories . Forrter absolutely investors. Netflix soaring almost 10 in extended trading after a very strong report, merely on the strength of growth in subscribers. They signed up 8. 3 million customers in the fourth quarter. Thats the high that beats the highest analyst estimates, around 6 million. Is in large part to this Stranger Things series, the gift that keeps on giving for netflix, which has really pioneered original programming. They now have 117. 6 Million Companies worldwide, growth in the u. S. , europe, and latin america. Sales grew by a third while earnings almost tripled from the prior year. A straight shot higher for the company. They did take a 39 million havingfor unused content to do with the firing of kevin spacey, an after caught up in a Sexual Misconduct scandal. Rishaad wynn resorts continue to play a winning hand in macau, announcing another hotel in vegas. Reporter what we had with wynn resorts was an incredible growth story. Macau is another gift that keeps and giving. They operated on almost 4 million a day. Far in january, they are running at end operating profit per day of more than 5 million. Wages are accelerating. Operated there are talking about positive activity going forward. In terms of anecdotal optimism about the chinese new year, in midfebruary, theres a lot of money coming into macau. Lets talk about the new hotel in las vegas. They will create a hotel for about 400 a night. Optimistic. S very if you look at the year to date for the company, 15 gain, half of that achieved in a monday session alone. Rishaad thank you. That was su keenan in new york. We are counting you down to the start of the session here in hong kong. We are looking at the free market and futures contractors. They moved to the upside with tailwinds from wall street. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. In hong this hazy day kong, hazy but marvelous. On the way up, asian equities, looking as though we have that shutdown which has come to an end in the u. S. , not spooking markets. U. S. Equities up to record highs. Tariffs placed on solar panels and washing machines. Oil moving to the upside. The bank of japan, making policy decisions. We are in the midst of a very hectic earnings season and it is looking good buspar. Thus far. Haidi plenty more to come. The bank of japan, looking to the ecb later this week. Key u. S. Gdp numbers, as well. We have the shutdown not relieve not really leaving markets anything other than sanguine. Resumption of the Government Operations expected tuesday as voted the stopgap measure through. Markets shrugging their shoulders. Markets headed for record highs despite fresh concerns over the possibility of trade tensions. Shanghai and hong kong, a fairly tepid open. David lets wait for that to get underway. At the moment, we are at highs at the moment. You can brush this off. Whether or not it is serious, that is another thing. Wnyynn macau, the resorts may be planning a new investment. We may be getting more details. There we go. Have a look at the substantial volume coming through. Percent, and those are the new threads you may want to follow. Macaus gaming revenue, 25 . Afteresorts extends games topping estimates. Some other things happening now, have a look at the stock movers. On the back of the new trade, the tariffs from the u. S. , and of course, about any minute speck we heard from the south koreans looking to reinstate some of these tariffs on u. S. Goods. Ngjin energy, is down. Lg electronics, the washing machine story, and the broader picture tells you when you look at dollarwon, some strength coming through. Have a look at the shanghai composite. Here is the snapshot at the open. Overall gains for the index. The hood, whether we are getting any Movement Across the energy space, not at the moment. For thisird of 1 index. The broader picture, lots of things to consider. In 30 minutes, we get gdp numbers out of the philippines. Later, inflation out of singapore. In two hours, the boj comes out with its rate decision. A bit too early for them to move, that is the consensus so far. It is before breakfast, too early. Although have a look at this chart. At some point this year, this is what they might have to tweak given that we are seeing spreads widen. The economy in japan, doing, outperforming potential. This bit right here, when you have the spread of treasuries over jgb, and dollaryen going the other way, it might give the boj reason to perhaps allow yields to move up a little further from that. That decision could be out within the next two hours or so. Rishaad thanks for that. Lets get you back to sydney. Lets get to paul allen, who has the first word news headlines. The u. S. Air force has retained confidence in spacex despite the loss of a classified satellite launched launched by a nine rocket. Available data shows nothing to change their status. That bolsters spacex. They may increase scrutiny of the satellite builder. A white house official says President Trump became withed with commerce the commerce secretary over the pace of trade action with china. We are told they were at they have nowd reconciled their disagreements. Officially, the white house says trump loves wilbur and has full confidence in him. U. S. Stocks set another record as lawmakers grudgingly accepted a deal on ending the Government Shutdown. The move towards a shortterm spending bill that will fund federal agencies through