This is the second hour of. Aybreak asia just after 7 00 p. M. Here in new york. We have breaking news on singapore. The final gdp numbers for the Fourth Quarter coming in much better than what was prior 12. 3 quarter on quarter have also much better than what was initially reported. Resulting in an annual gdp rate of 2 . There is a lot of concern about this exportoriented economy, what trumps policies might mean for singapore in the future. Trade is definitely one sector. Still faster than the Third Quarter but it seems like the construction sector shrank. Manufacturing grew by 11. 5 year on year. Once singapore starts trading in we will also get exports at the bottom of the hour. A lot of news happening. First off lets get the market open. Asian shares looking to follow up the drop on wall street. Asiapacific gauge is at its highest since july, 2015. We have china futures pointing to a higher open. We might not be done yet. Take a look at the markets that are open. Australia continuing to fall after a two day climb. Health care the biggest drag. Focussts are very much in extending its drop. Up 10. 5 . Down. 5 . Samsung earlier dropping as much as 3 . After the arrest of the sourceanticipated open and some, down 7 10 of a percent. Saw after the climb we thursday. Given the Early Morning arrest we saw, we will see how the performance tracks. Hynix on the rise. Hyundai unchanged. Thank you. Leader is in detention, arrested on allegations of bribery, perjury and embezzlement. The Company Issued a statement saying able to its best to ensure the truth comes out. You are in seoul during the first proceedings. How significant is it . Is quite significant when you take into the account the weighting of samsung. The top five make up about half the index. I was looking at the top 10, behold 27 of all business in sale in south korea. Samsung at the top. If fulton to question all kinds of risks. He was the defective leader the fact oh de facto leader. When i was there in january when the court ruled rejecting the special prosecutors request for an arrest warrant they said there was not enough evidence. It would have been unprecedented had he been brought into custody before formal charges and what is expected to be a trial. Now the special prosecutors have come with more evidence and the District Court has ruled in their favor on allegations of bribery, perjury, embezzlement. Revelationsns came forward. Allegedly concealing profits gained illegally. Hiding assets overseas. It is a very convoluted story. It is unprecedented. Why was he remanded to prison before formal charges . That is what makes it unprecedented. A court sportsperson out this morning said there was a chance he could destroy evidence and he was a flight risk. What about the connection . Tell us about the connection to the imprisonment impeachment of the president. We have known and documented for years the cozy relationship they have with government over the years. This goes to the heart as well. It is part of the broader investigation into the president , who was impeached and had her powers strips temporarily. Stripped temporarily. This alleges bribes to consolidate his power as he was being groomed to take over his father who is in failing health. Two included the merging of groups that needed the blessing from the fund. His brides were allegedly paid to a close confidant to the president to help a be way to help pave the way. One of the bribes was a horse. We will certainly follow the story all morning long. No lets get to the first word news with courtney collins. President trump has claimed what he calls incredible progress in his first four weeks. He also took the opportunity to lash out that the media. A newssident opened conference by pointing to stockmarket records as evidence of his early compliments. He said he sees new stories of chaos and his administration when in fact it is the exact opposite. This administration is running like a finetuned machine. Despite the fact i cannot get my cabinet approved, and they are outstanding people. The u. S. Secretary of state says north koreas violations of human revolution resolutions will bring an Even Stronger international response. Rex tillerson made a statement in germany along with Foreign Ministers of japan and south korea. They condemned in the strongest terms north koreas Ballistic Missile tests last sunday. Brokerages are lining up for japans second Share Offering in a little over a year. Several big names including j. P. Morgan stanley are said to have applied. Those forward Global Coordinators the countrys biggest privatization deal in almost 30 years. Mitsubishi has rolled out a rescue of toshibas struggling Nuclear Reactor business. Said the Technology Used by mitsubishi is completely different and any change would violate its relationships with other countries. They have asked to continue temporary conversation compensation cuts in 2017 as an emergency measure. Toshiba shares are down for a fourth straight day. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im courtney collins, this is bloomberg. Seenill ahead, the woman as a next chief executive val is to avoid moves that could revive antichina protests. Sews confusion over the israelipalestinian conflict because someone close to the president this is daybreak asia. A quick check of the latest headlines. Furthersachs gives a boost to metal prices. Into chinas oak old economy industrial commodities have enjoyed a rebound over the past year on improved demand from chinas property and infrastructure sectors. Record i am or output record iron ore output. They Beat Estimates. Reporteed copper and nicele at at l; southeast asias third base lender says profits fell in a Fourth Quarter after its drop and noninterest income. United overseas bank saw net earnings increased to 522 million in the three months to december. That was a slight Beat Estimates. President trump has defended his presidency during a wideranging News Conference claiming incredible progress in his first four weeks in office. Our next guest is a longtime Financial Year and has been involved in many things, including a deep interest in israel and the middle east. He is the founder and ceo of investments. Good to see you. Last time you were here we were just talking about it, you are here the night before the election and he said if trump ins you are still a buyer the markets. Are you still a buyer now . Dan no. I am a holder waiting for an opportunity as always to buy lower. I think we are probably going lower before he go much higher. Because . Dan because the market has priced in a lot of positive outcomes associated with the election of President Trump and the implementation of his economic agenda. I think it is going to be very challenging, even with a full congressional mandate to accomplish everything that the president wants to accomplish. It has to be a perfect storm. Dan things have to work out well and it is priced in, which is a reflection of the structure of the market, which is becoming so driven by algorithms that as soon as there is a forward signal gets amplified, technically, by the algorithmic trading. In so many respects the market is ahead of itself. Im not saying the president s agenda will not be implemented, but i do feel a lot of it is already priced in. I would not be buying much. Becauseou also on hold you are watching things like todays press conference, 75 minutes the touched upon almost everything except for his economic policies. Dan my bald spot behind the camera. [laughter] i did not watch the press conference today. You must assume the headlines. You must have seen the headlines. Not know how to relate that to the market but i would only underline that what you are meant to do as an investor i think is buy at attractive prices and sell or hold at most i would not even hold when they are fully valued. The night before the election you asked me what i would do if President Trump wins, at that time which was an upset, and i said i would do nothing. If he goes down, i will buy more. Im not going to waste money by was an, which is good thing not to do. I am not buying anywhere right now. I am buying in some sectors that have been beaten down like pharma. Has some good interesting opportunities. Secular stories like chip stocks, microchip stocks, software. The same stuff we have talking about for a long time. Im still doing private Venture Investing and sectorspecific stuff. You have been in the news recently, to kind of go offtopic. You have been in the news recently given your interest as a private citizen in middle east negotiations. You went to meet with the Palestinian Authority head. That made some news. Tell me, what happened there . Dan so, i was invited to go meet with the president and the head of intelligence and security. And the chief negotiator. As, an independent citizen, to hear what their perspective is today. What their thinking is today. , as he is goals are 81 and thinking about the future. The whole political disruption and transition in the world. So, i went as an independent citizen just to listen you were sent by the trump camp . Dan no. I went individually. I went with a palestinianamerican friend of mine to listen and offer my views as to where they stood and where things stood and what the possibilities were. It turned out to be a long and very interesting conversation. What did you come away with . Dan i came away with a sense that there is an unusual, extraordinary opportunity right breakthroughential between the palestinians and the israelis, as unlikely as that seems, because you have a perfect constellation of agingts in place with an and faltering leadership of the palestinian liberation organization, a bunch of complexity around israels ,ositions, and most importantly a new american president who in his first 100 days wants to see things accomplished while for the first time in history, interests are aligned in the middle east between israel and its air of neighbors in relation to the Common Thread of the iras crescent, which is nbacked movements and terror. The elements are together. Then he question becomes what can be done. We have but i thought was a very interesting conversation about the outlines of a framework did you report all this back to the trump camp . You might not have been sent, but did you report to them. Dan not yet because they have other priorities. But they are broadly aware. There has been some interaction informally. It is more complex than it appears, except to say that i do believe as the president stated in his press conference yesterday, that there is the potential for both a specific resolution to this issue and a much broader arrangement in the whole region that would be stabilizing in the interest of the United States, in the and in the israel, interest of improving the lives of the Palestinian People that are within the geography of israel today. Again, i say this with no , 100 as al role private citizen who went there just to listen and express my own individual views. Found yourself in the news. Dan not really. [laughter] good to talk to you. Given the president s judgment on International Issues when you talk about his National Security adviser comedy the scandal involving his ties with russia, do you think there is a concern among Benjamin Netanyahu about whether President Trump can honor his promises about improving ties with israel after this honeymoon is over . Dan no. And primeat israel minister netanyahu take at face ,alue, as i believe they should that the United States, the Trump Administration is going to be supportive, but at the same time is going to leave the room to israel and the palestinians to resolve their own differences as opposed to impose very strong views of the United States on one side or the other as quite candidly, the Obama Administration did. I thought the most interesting thing that happened in the last couple days was the Prime Minister of israels remarks at the prize at the press conference yesterday that focused very specifically on what we what would need to take place in order for there to be a resolution, which is very specifically that the palestinians in every respect would need to accept and acknowledge and recognize the legitimacy of the state of israel as a jewish nation, and israel would have to take responsibility, which i believe the palestinians agree is an ever was interests for the overall defense and security of the perimeter northeast and south in israel. But dan, this is a president who has tweeted, picked fights with countries like china and mexico, even australia. Then has resorted back and softened his stance. When seems to be confusion it comes to Foreign Policy and the Trump Administration. Dan look, i think this is a president who says what he believes. Wheneard him yesterday asked about the two state solution and the one state solution, he said i have heard twostate, one state, the one i like is the one that the parties want. That is ultimately the right answer. It might not have been delivered as elegantly as were used to, but what he is basically saying is we are going to leave it to the israelis and the palestinians. The vision i discussed with the palestinians is the vision of two peoples with a similar history and a similar set of beliefs coming together for each others benefit to bring light to the whole region. Just to jump off at that hent, as she is saying, doesnt seem to be handling relations with other countries that elegantly. What makes you think he is going to have success in such a complicated situation as that . Sure howdy knows for things are going to go down now. There is a great deal of change and uncertainty. But from that uncertainty there is always opportunity. Soninlawgned his Jared Kushner to be intimately involved in this. Jared is a very thoughtful you are close to jared . Know him. He is a very thoughtful, young guy and he does a lot of listening and is gathering a lot of information. You know, we have to appreciate afterfter a period, decades of failure the oldfashioned way, it may be a good idea to wipe the slate clean and bring new approaches and new thinking. Is no longer relevant come all the old concepts are no longer relevant. This time to take a completely fresh look. Thank you so much for stopping by. Of next, a strong start for the year. A closer look at the banks earnings. This is bloomberg. Trading higher about 1. 8 in sydney after a reported 31 surge in cash profit in the first quarter. Joining us live from sydney. This looks like a good set of numbers. Under reasonably challenging conditions. Thats right. 115 4 billion u. S. Dollars. Of 34 . Retail and institutional arms are boosting the number as was the sale of the melbourne building. The ceo saying theyre still a great deal to do to sustain this progress. Of year ond days year record profit from the banks have pulled back. Fellebt interest for anz several basis points. Fell to 282 million. Take it look at the stock responding pretty well. Up one and one three quarter percent. Paul, thank you. Up next, atlanta fed president says the fed is keeping all options president and the march meeting is live. More on that and how it compares with what Stanley Fischer said as well as day two and a one of Janet Yellens testimony on capitol hill. This is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Welcome back. Breaking news. More from singapore. Exports ofstic figures coming in for the month of january and it is down 8. 6 . It was a mess. A miss. Gainwere expecting a 9. 6 on nonoil exports. Expectations was a miss by about 1 . Month on month was also a beat up 5 . Numbers givent of the fact we saw it will bit of revision upwards. We did, indeed. Significant revisions. Reviseda reminder, 2. 9 from 1. 8 in the Fourth Quarter. 12. 3 from the 9. 1 . These are backwardslooking numbers. Is toeally is important see how these protectionist policies come out and out trump will affect economies like singapore which rely so much on exports. We will see. There were signs earlier of some kind of revival when it came to exporters in the asia region. Lets take a look at the Market Reaction so far. I know youre checking the sing dollar. Im looking at what is going on with that currency. We saw fall against u. S. Dollar following the gdp number. As betty pointed out that is a backwardlooking number following the exports prince we got this morning. He dropped the softening. This week has been a big one for singapore. Earlier we had retail sales out as well. Taking a look elsewhere, we of course have singapore opening at the top of the hour. We will look at that when that happens. The big story today is the arrest of the head of samsung. How is that playing in the markets . Checking in on some of the heavyweights we have some electronics dropping. About 60 over the past year compared to the gain of 10 . Keeping a close eye here. Hyundai falling about 1. 3 . Heavy all in the red. How it is faring. We have a dropping about a third of a percent. Over otherat movers, we have these stocks in focus. Had shopping falling as much as 9. 8 . That