All right, this is a shock or block week. But thisa note that suggests that these markets are moving high. Becausehave good reason earnings have been so impressive so far, really big ones dominating the agenda this week. Ish, we are looking at crucial levels when it comes to stocks in hong kong. Rishaad absolutely, looking at what happened with these shares, these Chinese Companies trading in hong kong. We want to bring up gb tv 9440. Investors bid for these underperformers. This is a third of the companies on the hang seng. They are racking up fresh one year the biggest proportions says that 2014 stock bubble. We are seeing some of those cheap banks red hot. These fresh highs are being hit last week. That is what we had at the moment. H, in terms of the other things on the agenda, we have yellens swansong and watching what the fed does. We are just watching what happens as jay powell takes over. The pmi is expected to hold steady. Lets look at markets because we did have u. S. Stocks resuming gains for fresh record highs on friday. This is in china and hong kong. Malaysia is also coming online so lets get over to sophie, happy monday morning. How are we tracking . Following that jump we had on u. S. Stocks on friday, we have asian stocks kicking off this busy week looking good. Asian stocks have had the best month since march of 2016. When you look at individual markets that tie into the resuming gains, adding 7 10 of a percent. Taiwanesence on the stocks seems to be losing momentum. We are wondering if the stronger anxiety currency to be sparking anxiety that. It is trading at its strongs level since december of 2014. The sdi index is snapping. Extending sti is extending gains. 24 vice. Ted a this is rising for a seventh straight session. Trading at its strong as level since 2017. Elsewhere, when you take a look at the breakdown, you can see that korean stocks are leading levels. Onal they are gunning for a new record high. The shares in australia, they are starting the week on firmer footing. City has sydney has raised its target after its boost earnings. Ity we are seeing a drop in automakers and the yen is at a september high. Investors will need to consider that impact of a stronger yen if it should remain at this level. For now, the earnings share is continuing. To demonstrate that, lets check in on m3 with is jumping in tokyo after delivering a thirdquarter sales beat. This is up over 7. 3 . That is an alltime high. Ground, itw gaining dateoking toward the first where they were called over 46,000hicles vehicles. Japan made a 489 bid. An d is there like life in the north American Free trade agreement . We will have more on that on the first word news. Agreeing news measures to combat corruption, however, stocks that were supposed to create compute last year are dragging on for months. They extend to 2019. None of the issues have been resolved. Washington, the following month. Opposition leader has been arrested at a demonstration against president clinton. Putin. Nowotny had called on his supporters to rally in cities after a demonstration last year. The man said to be saudi arabias richest businessman has been freed from detention in riyadh. And others were held at a corruption crackdown. They paid heavily for their freedom. He described the death detention as a misunder standing. He expects to remain in control of Kingdom Holdings. Job comyn will take the top at the cba. He will lead the biggest bank into an inquiry in the Financial Services industry and respond to allegations of breaching antiMoney Laundering and Terrorism Financing laws. The talks are important. Andant to upgrade strengthen our dominant and accountability while continuing to deliver strong time financial performance. Banking is going through a. Change. Of significant im excited to lead organization as we prepare for change. Global news, 24 hours a day, powered by over 2700 journalists and analysts in over 120 countries. I am yvonne man, this is bloomberg. Rishaad the continuing strength of the yuan is leading policymakers to question when it will push back. At what point do we see them coming in and doing something about this . One thing for certain is that it does move away when it comes to any accusations of china being a currency manipulator. That it does, you will remember that they said 6. 5 is the level and no 6. 4 and now we are at 6. 33. It bowed 8 in the last 12 months. Even in that trade weighted basket of its partners is inspected to be around a high not last seen since mid2016. It does raise that question as to whether they will. Seems to beview that because policymakers there are trying to move toward a system where there is greater market play in the currency and a greater move toward liberalization, they dont want step into a abruptly. Bruptly. In too a another possibility is they widen the trading then for the currency. There could be a softening of those capital controls. The question is how much impact the yuan will have on chinese exports. They are less sensitive to the currency strength some say. Is this likely to be addressed at this upcoming key summit between china, japan and south korea . It could well do. Theyre going to talk business and trade and we know that south korea and japan have their own issues around the weaker u. S. Dollar. It may be something that comes up, we know that they will talk about north korea reports. At is the key question and the topic for all of these countries. It is significant that this summit will happen. It could lead to reciprocal visits by abe over here in china and xi in japan. I would be the First Time Since they came to power in 2012. This is pointing to be was adjusting to be slightly better relations between these countries. The pen and south korea have their own issues over the u. S. Missile defense shield. China has now shelled some of that. Ties in that area are improving. Ties have beens fractured for decades but have flared up again in 2012. Those seem to be moving in the right direction although china said there are many obstacles that remain in terms of improving this relationship. Thank you so much for that, tom. Ets bring in sameer . He joins us now from singapore. Great to have you. I want to throw at this chart, this is a dollars story. A dollar weakness story. This is a relative strengthening index in the bloomberg dollar index. If you see that plunge that began last year but really took a lay down from december, does that tell you that we will get a little bit of risk by given that the dollar index hasnt been this oversold at any other time over the past five years . Will that give breathing room in the shortterm . When it comes to what these asian currencies have to contend with . Sameer good morning. I think you are right. I think after having seen the see in the peas we will the dollar, it is reasonable to believe that we could see some shock and despite. Does look at the big picture on the dollar, that still remains relatively bearish. That is primarily to do with the fact that the markets are no longer responding. The relationship between the dollar has broken down. The markets are not focusing on how much tightening is coming from the fed but where the delta on the policy is. That is outside of the u. S. Europe and japan and other markets. I think the dollar is not necessarily able to benefit from that. If you look at terms of the relative. Wellesnt argue all that for the dollar. Finally, the fact that the world is invested in u. S. Assets. European assets are still reasonably under owned, under allocated. I think the dollar does struggle from a fundamental perspective. See somepossibly despite. We headed on in the last two days, there is this possibility, the suspicion that whether the dollar is now becoming more central to the u. S. Trade policy as well. He saw it last week. The treasury secretary, a flipflop from him. Even the president himself. I think it becomes hotter not to conclude that it is becoming a little bit more central. That further pushed the dollar lower in my opinion. Rishaad you cant devalue yourself. Me, sameer . You cant devalue your way to success. That is the point. Sameer remember, currencies are relative prices. What is one currencies price on the other side . Yuan,k you mentioned the china, i think one important aspect for the yuan or other nation currencies the reason i would argue that the authorities are a lot more accommodating toward strengthening these currencies is because on a trade basis, the strength is not that substantial. These currencies like taiwan or china are depreciating a little bit but over all, this is part of a weaker dollar story. Extent, mitigates the individual competitiveness for some of these economies. Rishaad stick around with us. He will be back with us. You can catch up with all of our use ourws and interactive tv functions. Look at some of the functions we mentioned. You can become part of the conversation by sending us instant messages during the programming. Ahead, these chairs are in focus. We get ready for the china market open. 10 onsorts plunged friday. The details are on the way. This is bloomberg. This is Bloomberg Markets asia, i am haidi lun in sydney. Rishaad i am rishaad in hong kong. The Deutsche Bank in asia that. Some ventures taking around. We talked about dollar weakness and more sustained dollar weakness looking ahead. How do Central Banks in this part of the world look at it and how do they taylor policy . Sameer i think the important aspect is to look at the value of the currency on a trade basis. To some extent, the definition between the currency moves versus it dollar losing competitiveness. That is the aspect about whether and to what extent currencies are part of the broader monetary position. I would argue that these Central Banks higher inflation rates this year. Useful toncy could be take edges off some of those price pressures. To that extent, the Central Banks have a mixed calculation which when theyre talking about. I am not always resisted to currency depreciation. To currencysistant the precision. There was a misinterpretation of corona. There had to be a clarification that he wasnt overhauling the 2 inflation target. Do you anticipate the boj will do any sort of tweaking when it comes to control of the targets . That is still some time away. We think that the inflation will glide a bit lower. I dont think the boj has anything compelling to move on its framework or to change the target anytime soon. I think these questions will become a lot more important in the second half of the year. Think not necessarily in the yen. Rishaad with all of that on at thists have a look week. How could this change the way the markets are viewing what is going on out there . State of Union Addresses are not important for Financial Markets. This time, what becomes interesting is the whole political dynamic within the u. S. With respect to some of the continuing resolution. Also, to get a slot longerlasting deal. Onhink more importance is whether there is a push on the trade agenda and the need for clarification and direction. Especially coming out of the treasury secretary, the issues about data measures that have been taken. I think that will be critical for markets. If it is for further clarification or definition, the dollar becomes more central to the policy. I think it could become more critical for policies around the world and how they start to view how their currencies respond to the dollar. One, a contrarian call for 2018 . Sameer it is always subject to what is consensus. For us, i think one thing that stands out is that we are a lot more concerned about downsizing in china then what the market and then what the market on averages. Challenge i think this is in respect to chinese assets. A pleasure to have you. That is the chief macro strategist for asia. Joining us in singapore. Coming up, we recount Parent Companies slumping. Also, allegations against the chairman. We will see if this has spread to malaysia, that is next. This is bloomberg. Lets have a look at the prospect of the trading day across asia china. Hang seng, of a powerful 1 . Powerful 1 . Building again on the strong start for the year. We had the regional benchmark. Investors also looking at corporate earnings, suggesting they will be faltering anytime soon. Lets have a look at this. This is after a 10 pledge of the parent. Plunge of the parent. Wynn resigned as the republican partys top fundraiser. Intelligences correspondent is here with me now. How will this affect business here . Expect someated, we volatility in the stock. Especially as the allegations unfold. There will be some impact on the stock prices reflecting whatever is coming out with steve wynn. We are still very positive in terms of the market. Does that affect business in terms of macaus business . We dont think it will make an impactful impact. We certainly see that rishaad of 100 in one year. That is what we saw. We are optimistic about the market as we look ahead for the rest of this year. The outlook is pretty good. How are they placed compared to their peers . If we look at wynn macau. Since the opening of the wynn palace, it has ramped up nicely. Recovery in driven macau. We also believe that is certainly an advantage for Going Forward for the rest of the year. We certainly believe there are massMarket Drivers that will help their business. One notable thing is that we will have jim cut ties. Gm coat ties. Wynn palace is across from their property. That could drive more traffic to not just mgm but to wynn. High gradep and amenities. That will be an advantage for them all. We want to see that there are overall Market Drivers for macau. Rishaad thank you so much. Looking at wynn macau, down 6. 3 . We do have the shares rapidly rising this year. Coming up, cashing in on the boom in biotech. Details are on the way. Rishaad looking at the hong kong observation. We are counting down to the start of the session. Asian equities are getting a tailwind from new york. Another record. That is why the mill your nation on that is why the protection on this is changing. The bank stocks are reporting. Pmi data, that is what we look forward to. There is that allimportant payroll number. Heidi . Crucial to focus on the u. S. Data. We had a call back when it comes to the pay that the u. S. Economy expanded at. Have those numbers meeting the mark on friday. It is continuing to propel these markets. Higher on the fx fronts. We do have some pretty big events like the state of the union and the impact on trade. Lets go for the open in shanghai and hong kong. Shanghai, rising by 1. 2 . The housing is adding to fridays gains of 6 10 of a percent. The bull market for the index is continuing. Is rising. G index investors are finding more reasons to buy that to sell. Chinese stock prices are chasing value and that will continue to seek underperformers like Energy Developers and largecap banks. The allocation of new influence and blue chips in china as well as in hong kong is happening. We have the offshore yuan trading at this strongest level since october 2015. The yuan did have its best week since september on friday as the continues. Rising this is how far policy will allow the yuan to appreciate. Lets check in on wynn macau. Steve when is facing Sexual Assault allegations. Drop as muchcould as 8 . The longterm impact is likely muted as the allegation is personal. They have downgraded their ratings on wynn macau following the news. Looking at the index, we had china and Galaxy Entertainment under pressure this morning. Haveis one more step we volvo this has committed to selling those volvo shares. Ccb is rising as the stock was upgraded to buy. Looking at the doubt, we had Energy Materials gaining ground. There in mind that there are reports that beijing will look to shut down on some activity ahead of chinese new year. Lets take a look at the internet. This companys woes continue. The pain continuing which might stir speculation that chinese funds might help. Athaad lets have a look some of this backtracking coming on european reports about backtracking on european stimulus. We will get that story and more as we go over to Tom Mackenzie and the first word news. Governingber, the ecb council said the bank must and qe as soon as possible. That is ahead of the Dutch Central Bank class. Single reason to continue with it. Mario draghi said there were signs of rising inflation. Is t and persistent patience and persistence is continuing. President trump said that he would have been handling present differently and would have been tougher on russells. Sources in westminster say that conservatives have given may 3 months to raise her game. That is not the way i would have negotiated but i have a lot of respect for your kindness to and i think they are doing the job. I think i would have negotiated differently. I would have had a different attitude. What we have done . What would you have done . I would have said European Union is not cracked up to what it is supposed to be. I wouldve taken a tougher stand. Japanese Crypto Exchange point share says it will use its coincheck will use its own capital to repay any customers hit by the theft of tokens at a rate of 82 . 82. A the ikea founder Ingvar Kamprad has died at 81. The bloomberg billionaires index estimated his work at over 58 billion. Revolutionized the way that burger could be shipped. Powered by more than 2700 journalists and analysts, i am Tom Mackenzie, this is bloomberg. We are keeping track of chinas share. A third of the index. They racked up highs last week. It means that even some of these land guards flag guards laggards did pretty well. Even the banks are doing well. Late cycle part of the rally . All the technical indicators are saying this rally went too far. The markets are about to open now and it looks like we are getting another day of gains. We did get some on thursday but everyone rushed in on friday. All of the stocks that are rising, it is not that there is a rotation from the stocks that rallied last year into these cheap banks and petrochina, everything is rising. This was for a third of the index last week. It looks like we are getting more gains. It is very hard to find anyone saying that this is time to sell, these gain