This is the second hour of daybreak asia. Im yvonne man in hong kong. Its just after 7 00 p. M. In new york. Im betty liu. This is Central Banks week. The boj is just hours away from hearing what they have to say about monetary policy. Then we have the bank of england and also the fed. We will see how markets are paying attention to Central Banks. Yvonne how big of a narrative going toj, the fed have . We see the Political Risk being priced into markets a little bit more, given the backlash weve seen from trumps travel ban. Lets get the latest. In asia witho far stocks following wall street lower amid trumps comments which have put investors on alert. Japanese stocks falling over 1 year. The kospi coming back online lower 4 10 of 15. Lets check whats moving on the of 1 . Lets check whats moving on the nikkei 225. Given the yen movement, take a look at whats going on in the export space. Elsewhere in the region, stocks lower. N wellington and sydney materials and energy dragging on the asx 200. Given whats going on in the commodity space. We have the likes of fortescue afterup over 2. 7 there, the company said its secondquarter of shipments held steady as costs fell 21 . Thats lower for a 12th straight quarter. Weve seen prices trading near the highest in over two years which has given a lift to profits for the likes of fortescue and other iron ore miners. Elsewhere in the region, we do have whats going on with wellington, of course. Yesterday, we got december data for new zealand, showing that Residential Mortgages slowed for that month. I want to take a look at whats going on with the yen, given the data dump we got this morning out of japan. The dollaryen holding above 1. 13. Industrial output for december topped forecasts, hwile while Household Spending fell and the job market remained tight. A mixed economic picture as the boj is winding up its twoday policy meeting this tuesday. A little more detail around the data we got this morning. Japans ministry of trade sees january output rising 3 and 0. 8 in february. We had comments from the finance minister this morning, saying that Foreign Policy should be discussed in an International Context and that its important to reach a Mutual Understanding with the u. S. On forex. We are expecting more ahead of that boj statement. Betty thank you so much. Yvonne lets go to the first word news. Canadian police have charged a man with the quebec mosque shooting that killed six people and left two more in intensive care. A 27 euros named, student, 27yearold student. Police are treating it as terrorism. The Prime Minister described it as an act of senseless violence. Deutsche bank will pay 425 million in new york to settle allegations that it helped wealthy russian wanderers wealthy russians launder billions of dollars. The investigation relate to socalled mirror trade. Closed two the banks settlements in the u. K. That could be close to hundreds of millions of pounds. Ifhiba could face bankruptcy it records a 6 billion loss at its nuclear arm and does nothing about it. The ceo says that fears of the company have been realized. He criticized the september report about improving internal controls. Onhiba is expected to report february 2014 february 14. Toshiba is debating whether to reduce its stake in its u. S. Nuclear unit. It may cut its holding in westinghouse from the current 87 . Its not clear how easy it would be to find a buyer. Toshiba officers said selling part of its westinghouse steak is an obvious course of action, although no decision has been made. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Betty sony saying its going to be taking this 1 billion writedown on its movie business after reviewing the future profitability of its operations. You can see the shares right at the open taking a pretty big hit on the chin, down about 3. 5 . We are joined by bloombergs managing editor for asia technology. Trouble here for sony. Its not just one, but several problems. Thats right. Its a big writedown for sony. This writedown dates all the way back to when the somebody Company Bought columbia pictures in 1989. They are saying there are troubles in the hollywood business, acknowledging some difficulties. There was the ghostbusters sequel they did not go that well. There was an angry birds film that did not meet the expectations they had. We see a decline in purchasing of dvds and bluray disks. That has been decelerating. That present challenges for them. They really need to turn around this hollywood business. Andne ghostbusters angry birds were let down letdowns. Sony selling that state to todman sachs stake Goldman Sachs. Is that enough to turn around this company . M3 has been one of the very Good Investments for sony. Its a medical Services Website in japan. Its done very well. The stock has been on a tear. They will sell a slice of that business to the local affiliate of Goldman Sachs. They will continue to be the largest shareholder in m3 going forward, so they will get some benefit from that. There are other parts of the sony operation that are doing well. That Playstation Game consoles have been a profit driver. They have been very effective at making these cameras for smartphones. Thats been a growing business for them. Right now, for the ceo, hollywood has been this trouble spot. Hes going to try to fix it. Hes going to hire a new head of that business. Hes moving going to california to be able to do more recruiting. The head of that business left a couple weeks ago. Yvonne all right. Betty thank you so much, Peter Ahlstrom elstrom. Lots of chaos after the executive order from president donald trump. Now weve got acting attorney general sally yates, the highestranking holdover from the obama administration, commenting on the executive order, saying that the Justice Department is not convinced that of thesidents defense executive order is consistent with the responsibilities of the department, nor is she convinced the executive order is lawful. Again, the acting attorney general. She says in her role as the acting ag the department will not present arguments in defense of the executive order until they are convinced that they need to do so. A pretty strong rebuke of what we saw coming out from the white house and from President Trump on friday. Much more ahead. Congressmen and congresswomen protesting right now at the Supreme Court, calling on donald trump to rescind this order. Yvonne absolutely, along with the ceos in Silicon Valley opposing it as well. Heading back to asia, the bank of japan wrapped up day two of its policy meeting today, the first of the new year. Lets go to our Global Economics and policy editor, kathleen hays, joining us live from tokyo this morning. We are not getting any surprises from the governor of the bank of japan. What are we expecting . We are expecting the bank of japan to meet to give us their decision sometime after noon tokyo time. 11 00f course would be hong kong time and about 10 00 in the evening in new york. I just finished speaking in the last hour with a former bank of japan policy member. She was there from 2011. She just left in march of last year. She agrees with our Bloomberg Survey of economists. No change in policy. Althoughs with that, she does agree they will probably raise their assessment of the japanese economy just a little bit 2017. Remain atare going to 0. 1 . The 10year note expected to be reconfirmed at 0 using the yield curve control tool. She says that with yield curve control, the bank of japan ultimately will have to make adjustments. They cant keep saying they will buy ¥80 trillion and keep it at 0 . They have to let go of one or the other. Thats one of her criticisms. When it comes to exchange rates, everyone is watching what governor kuroda could say about that. She says the yen should not get much weaker. It is fairly valued around 1. 10 to the dollar. She thinks this is one way the policy is not sustainable. You cant grow this economy with a weaker yen. It has to be done with demandside stimulus. When it comes to that, she thinks that is going to have to come from the fiscal side, from Prime Minister abes team. She does not expect the boj to raise its inflation forecast, already optimistic at 1. 5 . Most economists we surveyed at bloomberg would agree. She said there is so much uncertainty, not just about the japanese economy, what donald trump is going to do on the fiscal stimulus side, but also what donald trump is saying about a change rates. This latest move on immigration control is unsettling. She said it would be very unsettling for the corporate sector in japan. She is giving us some more details about the complications that the bank of japan is facing now. Betty are we expecting anything coming out from the central bankers about yield curve control . Well, as i said, the former bank of japan policy board member is critical of the current stance, which she agrees right now there is a lot of uncertainty around the economy. There is so much swirling around. This week would not be a time to introduce any kind of change. Most economists say this is the important tool the bank of japan is exercising to keep that 10 at a time at zero, when yields have been rising so much in the United States. Definitely a bit of backtracking lately, but its very important to do this. When we were listening to the press today, it would be interesting to see what reporters asked about the donald trump impact on the bank of japan policy debate. A lot more coming up. We are going to be speaking to another former bank of japan economist later in the show. We will have that decision live as soon as it breaks, sometime after 12 00 in tokyo. Thank you so much, kathleen hays. Now, one of japans biggest brokerages made the move from london to germany or ireland. We will look at their options for a postbrexit europe. Travel bans, trumps will have some wideranging implications for Silicon Valleys biggest companies. We will take a look at the tech industrys response. This is bloomberg. Asia. This is daybreak yvonne a quick check of the latest business flash headlines. A possibility of a strike at a copper mine in july chile. Workers are overwhelmingly in favor of action. The boat is continuing, but a Union Spokesman says miner the vote is continuing, but a Spokesman Says miners are rejecting the offer. They have rejected calls for a 7 rise and a bonus of about 38,000. Betty fortescue metals says secondquarter shipments helped oteady its costs thanks t productivity and efficiency changes. They shipped 42 million tons in the three months ending december 31. Net debt dropping to 4 billion, with the target 3 billion by july. Trading iron ore is near its highest level in two years on record demand from steelmakers in china. Yvonne boosted by its lng facility in queensland. Revenues doubled to 411 million u. S. , although that was slightly below Goldman Sachs forecast. They have benefited from Higher Energy prices. Betty as we heard moments ago, acting attorney general sally yates, the highestranking holdover from the obama defyingration, President Trump, saying that the Justice Department is not going to defend the executive order on immigration and also is in a position to say that it does not appear lawful. Ramy inocencio is here with us. Hes been tracking all of the reactions. We can look at this and say theres not a lot of teeth to these comments. They are strong, but she is going to be replaced by a trump appointee. Its largely symbolic. This is a transition and a worlds colliding in terms of the white house the white house. She might only have days left in her job as the Deputy Attorney general. Jeff sessions is going to be confirmed likely going to be confirmed. When hes in, probably, hes going to toe the problem the party line. Hes going to say this immigration ban is indeed lawful and that they are going to enforce it. Some of the top executives on wall street are finally giving their voice to whats been happening here. A lot of controversy. We are hearing from Goldman Sachs, jp morgan, as well as blackrocks ceo. Some coming out a little more blunt, some a little more diplomatic. On the blunter side, Goldman SachsCeo Lloyd Blankfein saying this is not a policy we support. Being diverse is not optional. Its what we must be here. Its interesting that Goldman Sachs really takes a stand against sitting administrations. Usually they send their own employees to become exemployees to become employees in the white house. What we are seeing here with three with gary cohn. Jamie dimon, a little bit of a softer approach, says hes grateful for the hard work about national security, but it is also strengthened by the diversity of the world around us. Jp morgan did not express any opinion on the ban, either for or against. Black rocks ceo weighing in blackrocks ceo weighing in, toeing the line, saying they want to have respect for due process as well as individual rights. A couple other banks that have not been weighing in, wells fargo and morgan stanley. They say they are monitoring the ban. Citibank and bank of america have so far declined comment. Yvonne we are seeing financials fall in asia following what happened on wall street overnight as well, despite what we heard from President Trump. Ramy you would have thought any kind of repeal of part or even all of doddfrank would make financials rise, but we are seeing that, in terms of Goldman Sachs, bank of america they all fell 1 to 2 or so. Mr. Trump spoke with Small Business leaders at the white house. Listen to what he had to say here. Mr. Trump its almost impossible now to start a Small Business. Its virtually impossible to expand your existing business because of regulations and because the banks dont loan you money. Doddfrank is a disaster. Were going to be doing a big number on that. Ramy you can expect the democrats will try to filibuster to make sure that doddfrank remains alive. Next, reassessing the trump effect. This is bloomberg. Yvonne this is daybreak asia. Some have spoken out against President Trumps executive order on immigration. Martin, i know you have mentioned in your note that you have a theme here, a basket of assets or stocks, fortress america. Is there anything that can steel investors from all the chaos that is going on politically . I think its something to understand. If you are looking for themes around the change of the new administration, you would be looking for American Companies with 90 to 95 of revenues that are domestically based. Clearly there has been a huge outperformance by global companies, or companies that are globalized, obviously, such as the amazons, apples, via, visa, etc. Maybe there is potentially a shift yet to come, a rotation into more domestic focused u. S. Stocks, but i think its a bit early just yet. Clearly weve been waiting or seeing policies coming through that have been around in more isolationist types of policies around immigration and trade, and weve seen very little if not no new detail on tax cuts and infrastructure spending. Betty we know from president donald that he is all about America First, right . Thats whats dictating his policies. Where would you focus, then . Are there companies, when you say domestically focused stocks are there companies in this basket of fortress america that kind of reflects that whole America First outlook from the white house . Ah, id like to take a step back here. I think we have to look at what fundamentals are happening. Somely, we ended 2016 with great momentum in manufacturing, services, construction pmi. The underlying outlook for Global Growth has modestly improved. We still have a reasonable outlook for china as well. We are forecasting 6. 5 growth. I think the america play is interesting, but i think its possibly too early. We need to see some real details and policies before making those sorts of decisions. So, our outlook is still very much positive in regards to markets. More likely for the second half of this year. Yvonne so, we are seeing a little bit in terms of Global Growth improvement. You mentioned the uncertainty regarding some of the policies, some of the reasons why so many investors are piling into u. S. Equities right now. Is the market going to be focused on equities in the shortterm when it comes to Central Banks . It seems like one of the themes, when you look at the doj the boj, the fed, is whether they are sending signals of tightening . Martin i think its wise to be talking of significant changes by Central Banks at this stage. We are not looking for the Federal Reserve to raise rates this week, although we do have an expectation of at least two rate rises this year. I think the fed will be looking to see what the policy is from the Trump Administration emerge as. Inkets are expecting a rise inflation later this year on the back of that. Weve seen global share markets rally so strongly since the u. S. Election. Its no doubt we are going to pause,e a period of consolidation, a modest pull