This is the second hour of daybreak asia from bloombergs u. S. And asia headquarters. It is just after 7 00 p. M. Here in new york. I am betty liu. We are marching ever closer to the friday jobs report here in the u. S. Some see it as the last data points before we get the fed decision next week. It could swing either way. Ifit is bad, i do not know that 100 chance holds. I know the correlations are not strong. But that adp report was a blowout figure. All but solidified this was 100 when it comes to the fed it next week to read also watching oil very closely. At 50, that hid the Energy Players in australia. With check out the market sophie. Oil producers in focus given that 5 drop in wti overnight. We have the nikkei and the kospi coming online. The nikkei 225 snapping a fourday drop, up 4 10 of 1 . A lot of focus given what is happening. Toshiba has concerns about chip sales. Asahi reporting it may not meet its earnings update by march 14. Over on the kospi, up 1 10 of 1 , extending its gains for a fourth day. Geopolitical risks for china and its neighbor to the north. 200 marginally lower. This cut the regulation with a proposed deal. A quick check of oil prices and the yen are playing out. That 114. 42. This is cap, the dollaryen, since the start of february. We see momentum gaining ground. Of of 50. Willould it go above, that make it interesting for markets, given that reflation story. Likely toices are have strengthened again in february according to surveys. Lets bring in our china correspondent, tom mackenzie, with the preview of the numbers do in the next hour. We saw those trading numbers yesterday. They were described as bizarre. Can we see any disappointment here today . Tom lets not be fooled. These numbers may come as a surprise. But what we are expecting is a 7. 7 increase for the Producer Price number. We have a terminal that shows what is going on. We have deflationary prices and those were placed by gradual price hikes at the factory gates. Toward the end of last year we had five straight increases in the factory date prices. If we do get that 7. 7 number, that will be the biggest spike since 2008. And the Consumer Price number coming up versus an increase of 2. 5 in january. There were seasonal effects. In terms of what this means for the overall inflation picture, Bloomberg Intelligence says of the pboc will be relatively relaxed until that feeds into the consumer number. Intelligence do not expect a rate hike from the pboc. They will be saying when on these number sanguine on these numbers. Supportand backing up for free trade with action. Tell us the key points. Tom this was the european trade, she was talking about the l,ropean concerns about stee saying it is a subsidized industry that is dumped on european markets. And the other producers in europe. We know the European Union are looking at potential terrorists tariffs on chinese steel. They say it has effectively stalled until china implements further reforms. She talked to generally about the challenges of european businesses operating here in china. Take a listen. Unfortunately, the reality and china today is not so bright. It is difficult for europeans to make business. There is increasing bureaucracy and lack of transparency, and stateowned policies. It is not a level Playing Field. We hope to they would pursue the reforms they had intended. Both the europeans and u. S. Complain about the number of sectors closed off in china. Particularly around the services of health care, finance, logistics, social media, telecoms, all closed off to foreign investment. We heard from wilbur ross, the new commerce secretary under donald trump. He was asked about the potential of a trade war. Take a listen. War. Are in a trade we have been in a trade war for decades. That is why we have the deficit. The difference is, our troops are now coming to the ramparts. That is the only change. Parts of the team in washington drawing up their asia policy. When that finally comes out we will know if the referendum on the campaign trail will be translated into action, these of u. S. China about trade. First word news with paul allen. It has been revealed that President Trump did meet with Russian Ambassador sir take his lack sergey kislyak. The president link to the ambassador resurfaced after news that at least five members of his team met him before he took office. Trump has dismissed allegations of improper ties with russia as a ruse. The u. S. Wants positive action from north korea before any direct talks. Them to abandon their Nuclear Program in return. They announced the norths latest missile tips. Jongun we are not dealing with a rational person. We have to see some sort of positive action taken by north korea before we can never take them seriously. They have given us enough reason to believe they are irresponsible. We cannot believe we are dealing with a rational person on this. South koreas trial of the century begins today with a preliminary hearing into allegations samsung de facto money to the government for favors. L is the highestee figure indicted in an investigation. Samsung concern that early talks are not expanding its manufacturing operations in the u. S. With a new facility for home appliances. The wall street journal says samsung plans to spend 300 million on the project. At the shift may involve moving production from mexico and could generate 500 jobs. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am paul allen, this is bloomberg. Thank you. Embarking on the First Comprehensive audit of stateowned banks in decades, to protect what is asias top growing economy. Our Southeast Asia correspondent is at our Bloomberg Live event in miramar. Myanmar. Are they opening up to Foreign Investors . They are it is a sign opening up even more. They tried to prepare stay banks for more competition. You may not know this, but there are already a dozen foreign banks in myanmar already since they opened up to the world six years ago. They are competing with 29 local banks. There is increasing competition in the space. Myanmar needs to do more to open up. There are issues to do with policy, regulations, role of law. These are the things that are impacting investor confidence. When you look at the fdi, it rose 9 billion. But last year we saw a slump of 65 . Because investment was smooth after the government was elected. There was a lack of policies and where it was headed. Investors are taking a backseat. Even as economies are opening up, they need to do more to show to the world that it is ready to welcome foreign money into the country. When can Foreign Investors a jump back in and where are the opportunities right now, is it in the Banking Sector half . Market. Is a frontier it is the last frontier market in Southeast Asia. When you talk about opportunities it is across all sectors. Lots of potential in banking. Foreign banks are here. Population of 55 million people. Less than 10 of them have any access to banks. A lot of opportunities there. Opportunities in mining, construction, real estate, infrastructure. Lots of opportunities there. We will be speaking throughout the morning to all of the key players across the industry just to give you insights on who would who we will be speaking to throughout the day. We will have the managing director of one of myanmars biggest banks. We have one of the best known and wealthiest businessmen in myanmar. That countrys largest retailer. A busy, busy morning for us here in myanmar. We look forward to those interviews. Taking aim at south koreas travel sector over deployment of a u. S. Missile system. We assessed the damage later in the show. Plus, the Copper Market sends major signals in opposite directions. To explainceo of mmg it. This is daybreak asia, i am betty liu in new york. Innne and i am yvonne man hong kong. They narrowed losses from a 1 billion a year before, over 150 million. Record copper production was partially offset by lower prices. This could earnings. Newly appointed ceo. Thank you so much for joining us. And ited about copper has been very much a supply story. We talked about it in indonesia. There is been longterm bullishness. But i think there is resistance the 6,000 level. Is there a reason to be cautious at this point . Confident we are about the copper price. Longterm and shortterm. We see more and more disruptions. In particular, those disruptions happen to be with the two major, major copper producers. Bambas will help mmg get back in the black this year . Jerry they have had successful commissioning. To 500,000reased tons, which enabled us as the number one copper producer. Pounds, las500,000 bambas produced much of it. At las bambas there were protests from local groups. Is that a concern to you because it risks your shipments and production levels . Jerry it does seem like a real issue. But i have to say, those are a normal thing. Recently, and other countries we have similar, not necessarily and othert Union Political deals. That is the issue faced by minors. Miners. A closeto maintain relationship with the government and work with the community. To be responsible to their concerns and Work Together with the local government and community. Do you think those situations will be manageable . Jerry i think so. In theave our people region. They work very closely with the local community. And we have our expertise. They have worked a long time in peru. We have a solid connection with the government. We believe we are confident in that region. Want to talk about acquisitions, what you are looking at around the world. Innow you are interested buying copper assets, zinc assets, as we discussed. What are you looking for right now . Do you see any targets that are of interest to you . Jerry it is true, we would like to grow and we are looking for different opportunities. We i have to say, whatever do, and wherever we do it, we are trying to make a difference. We make a difference either by leveraging the existing synergy with our operating have in the copperfield in african countries, the andes region in and Southeast Asia. Also, to see if we can make a difference by our own experiences in talents. And weekend improve the operation and make additional value for our shareholders. Betty absolutely, you do want to make that impact. There might not be that many targets out there. Have you identified targets . May be you see something sometime this year . To be veryhave innovative. You are right. There are not too many opportunities out there. Open to thee more right partnerships. And also, we are very active with organic Growth Opportunities in our own organization. Yvonne i want to switch gears and talk about china. We see an emerging slowdown in the properties sector. How big of a concern is this to you when we think about china commodities . There is uncertainty you where demand will go in the property sector. As well as stimulus. Jerry talk about the climate. Made ave china has proactive choice, rather than a reactive response. China has not stopped. Byna is still growing developing longterm infrastructure. To partner with other countries so it could see the initiative. China has not design the whole thing, they have encouraged companies to go abroad. Establishing an organization to help the financing of that region. Yvonne would you consider building mark copper smelters in china . We arent a Mining Company that operates overseas. They do have the plan to have a certain good quality copper smelting business in china. Yvonne great to have you here in the studio. Lets do a quick check of the latest business headlines. Softbank is selling a 25 stake in arm holdings. They set up with saudi arabia. Sources say a billion dollars in shares purchased by vision fund. They wanted included in the 100 billion fund. The deal is separate from the 25 billion softbank plans to contribute. Foxconn looking at making a deal on toshibas memory business. They have approached a company to explore the possibility of working together on a bit. All three companies declined to quote. They have yet to decide whether to launch a joint bid. Battle at a chinese gas supplier may be coming to an end. Sources say they rejected a proposal to oust two cofounders. A first of two meetings, they voted to keep the former ceo and coo on the board. The results of the second theing, the sun would sell chairman, is unfounded. Betty it is unanimous, traders sure the fed will hike next week. We will discuss that. This is daybreak asia, im yvonne man in hong kong. Betty and i am betty liu in new york. Traders are certain the feds will move. B will noture that ec move. We have talked about it so much the past couple weeks. Every day, imf him in an and we are talking about the latest said speaker. We have had so many fed speakers. And the rate hike went from 34 , 100 . T is 100 job and Employment Services company put out their own report two days ahead of the u. S. Government. Their report showed there were 289,000 private softer private sector jobs created. So much so, the bloomberg Consensus Forecast is now at 200,000. Lets jump into the bloomberg and give our viewers a sense of what people take this so seriously. Jobsshows us the adp report, the white line. The government jobs report is the blue line. The white line is one month ahead of what we will get friday. Backup a month. Adpjanuary jobs report, the came in stronger. Jobshe january government report came in stronger than forecasted at 227,000. This is why markets, traders, economists are taking it seriously. To theump over interestrate projections. You cannot get stronger than 100 . That is where we are for the march quarter. That will bring us to 0. 75 to 1 . Go down three dates. Probabilities, of a hike in june are up to nearly one in two. Up two pointear 8 . It is a bear market, that is where we are now. Is a different story for the ecb but we see Market Pricing in and could see a hike mid 2018. His mario draghi going to budge . 2018 is as soon as you will see it. But not as soon as he keeps pounding the table about. Lets go to the bloomberg now. Very powerful lines. Blue line, inflation of about 2 , at the ecbs target. 0. 29 . Energy market at he is telling the germans, cool it. Everyone says a little more hawkish. Maybe give a forward guided tweak, but no signal. A pretty tame ecb meeting. Unless he sounds hawkish, that could get the markets going. Thank you. Companies saying falling sales. China retaliates from a missile system. A beautiful look at singapore this morning. Sun is out there at the lion city. I am it yvonne man in hong kong. Betty and i am betty liu in new york. You are watching daybreak asia , lets get the first word news with paul allen in sydney. The European Union says the chinese president must back up his support for free trade and globalization with concrete action. He advanced protectionism, saying it was like locking oneself in a dark room. Bloomberg they hope beijing will adopt a Stronger Leadership role on such issues. Secretary secretary Steve Mnuchin having a tough time building his team. Areces say his choices stalling. Questioning are loyalty to the president , whether they are too liberal or two wall street. Next weeks g20 meeting. Australias Prime Minister says political squabbling is threatening the companies countries aaa rating. Feeding ony are fears for pity point scoring. A Hostile Senate our economicnfront challenges headon, beginning with a frank and honest discussion. Australians deserve a mature, constructive device. Without it, we risk putting our rating underedit great pressure. The reserve bank of india says it rejects the terms of the settlement handed out. The companys agreed last month to resolve their twoyear dispute over the carriers sale of the wireless venture. It with the arbitration for more than 2 million. R. B. I. Does not like the deal and will explain why next week. Chancellor Angela Merkel says she only learned about volkswagens emissions cheating through the media. It put reputation at risk. After meeting with lawmakers in berlin, she rejected describing volkswagens actions as a gigantic scandal. She said it was wrong to vilify automakers in general because they provide so many jobs. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am paul allen, this is bloomberg. How the asian markets are shaping up this morning. I am seeing recovery here on wti, but we are still looking mixed in the asiapacific region. Oil prices dropped overnight by 5 . That is going to put pressure on what is going on in asia. We have stocks falling across the region. This is oil, Holding Losses at 50 a barrel. We did have saudi arabias oil ister saying inventories u. S. Inventories have dropped slower than opecs expectations. While we are seeing the kospi and the nikkei 225 hold their gains for the day we are seeing a drop in commodities. We have miners in the red. South koreas trial of the century starts today. How are samsung shares holding the middle of all this . We are seeing samsung shares itg but holding above is the biggest drag on the country today. Investors have been relatively sanguine. 41 buys on the stock. Shares are snapping as a twoday drop amid reports it has been a products it has been approached by foxconn. 37 can set a price tag above the current share price. There is an upside there. Thank you. U. S. Company has been drawn into chinas growing dispute with south korea. Beijing ordering a hershey joint venture in shanghai to halt production. Moreind chin is here with on this. Explain what this is all about, this suspension. It is the first time we have seen a u. S. Company drawn into the geopolitical tensions, which are slowing around north korea. This is a cause the joint shanghai,factory in and her she has a controlling 50 stake in it. They make chocolate and other confectionery. They are suspended for maintenance activities, in relation to inspections. The chinese authorities ordered production to be stopped