Companies can offer some security. We have the world covered here on daybreak asia. Mountain view,m california later in the show at the google io conference. Betty and we have the latest Market Reaction on the market movements in washington. This is daybreak asia live from u. S. And asian headquarters. I am betty lou here in new york where it is just after 7 00 p. M. Yvonne it is just after 7 00 a. M. Here in hong kong, i am yvonne man. Hour seems wery are getting another headline. In the last 60 minutes we learned at the doj is bowing to political pressure and appointing a special prosecutor for the Russian Investigation. Betty someone very wellrespected, Robert Mueller, the former fbi director. This might perhaps bring a sense of calm or push the positive button in terms of all this , did donald trump try to influence the fbi, politicize it . This may go some way toward calming those fears. We saw that in the market, the dow down 370 points. Some may ask, what took so long . We have seen the growing chaos. What took a lot what took the market so long . Yvonne some say we are long overdue the vix jumping the most since brexit. A lot happening in the calendar. Japan it gdp and property prices out later this morning. Lets look at how things are playing in the asia session. New zealands continuing to extend, down 6 10 of 1 . The dollar continuing to see the dissent. 42. Kiwi at. 69 australia, we were looking to extend the 1 drop, 62 drop at the open. That is before that ever surprising aussie drop. 7432 for the aussie dollar now. Tokyo, chicago futures pointing to a 1. 7 drop in tokyo today. Similar to what we have seen with the nasdaq. 20,000, the nikkei getting farther and farther away. The yen surging the most since november. Sitting l just hitting 111 now. Lets go to jpmorgan for the Technical Levels on where the dollar can continue to fly. We have to keep it in perspective. It is the second day we have seen moves lower of lower than 1 in the u. S. Some of these moves are not uncommon. We have seen such high levels of euphoria. We were due for that pullback and this could be a healthy correction. Some are calling it. Betty some, but it depends where it ends. Where is the bottom . We will continue to monitor that. Lets take a look at where the markets did end up today. The dow falling 370 points. The s p and nasdaq declining. The nasdaq down over 2. 5 . Lets get first word news with courtney collins. President putin says he is frustrated that what he called u. S. Political schizophrenia over white house ties to russia is undermining efforts to reset relations. Speaking alongside the italian Prime Minister, he says allegations President Trump passed classified information to a russian delegation in the oval , and onlyfalse intended to foster antimoscow sentiment. In sixell the most months as controversy surrounding the Trump Administration prompted concerns over the likelihood of tax reforms being passed. Apple has 240 billion in cash abroad, but 93 of its total reserves. Trump has proposed a tax cut to repatriate offshore holdings. The stock fell the most since november. The s p 500 fell about 1. 5 . Veteran investor mark mobius says there is no question there is in china. But they offer a level of security. He said the plan economy means major sectors do not suffer in a downturn. Mobius has said the u. S. Should participate in chinas eastwest silk Road Initiative. And investors have reason to be optimistic. At the individual Company Level there is no question there are risks. But when you look at the major Stateowned Enterprises and banks, there is no risk. This is a planned economy. The government decides what will happen to these companies. And whatever is required will be done. We will hear more from mark mobius later in daybreak asia at 8 40 new york or hong kong time. 10 40 from sydney. Tencent investment in blockbuster and gaming is paying off. Companylargest internet posted Quarterly Sales that passed all estimates. A title such as honor of kings a drove up one billion plus users on wechat. The 300value of of billion, they are beating traditional sectors and define the slowdown. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Betty thanks so much, courtney. Lets get to work top story, unfolding drama in the white house unsettling the markets. Dallas and s p dropping 1. 8 . Major indexes saw their worst session and eight months. Joining us on set is su keenan. This is maybe where the rubber meets the road in the market. Su lets take a quick look at the close. We talked about minor moves of less than 1 . The s p had been up 11 , now falling by more than 1 here. Lets go to the big movers. Financials were down 1. 7 . Traders are scrambling in advance of a fed rate hike. J. P. Morgan chase showing the size of the declines we saw in banks. Apple taking a big hit, there is concern microsoft, oracle, alphabet, all these Tech Companies have offshore tax concerns. And other advantages that had been built into the pipeline. You have an American Apparel maker that has been marked down hard. Lets go into the bloomberg. When we talk about the vix being up in a big way, we talk about risk off, risk on. This shows it in blue, versus financial conditions and white. What we see here is a take lower tick lower. Tighter financial conditions as investors are concerned. Yvonne lets continue the conversation, speculation about the alleged comey memo. Odds ofl play down the a june rate hike. We saw a dramatic drawdown when it comes to those futures. Lets bring in kathleen hays, she is here with the latest right now. Kathleen, there are talks of this memo surfacing. People see say they need to see the proof. What led to markets to selloff . Firsten that memo surfaced late yesterday. Markets do not have a chance to react in the u. S. The initial report verified by many news organizations putting it much more front and center. Not a speculative document, but something people seem convinced exists even though we have not seen it. Been eight days since a donald trump fired his former fbi director, james comey. He appointed a very prestigious former fbi director. But people are still saying, this could be his deepest crisis of his very short so far administration. Republicans on the hill, backing donald trump. Wall street though, losing faith. Certainly in the reflation trade, that that will actually was exist. Rates,rnight interest investors not waiting. We are combining those two metrics. Odds of the june rate hike up were down as much as 50 earlier today. If there is a logic we do not know what will happen with donald trump. If you look to 2016 when the fed thought it would hike rates four rates onceonly hiked by the end of the year. The chinese stock market selloff. So much concern about volatility around the world, it made the fed is slow down. If it is a crisis for donald trump, if it continues to roil markets, less than a month on june 14, will the fed the comfortable to hike the key rate or decide it is prudent to sit back and wait . We do not know yet. But that shows you potential logic and what the treasury market is doing and how the rate hike has not changed. Betty how about other markets, how did the bond markets react to this . Kathleen bond market traders jump in and out. It is a haven. Increasingly,rds the obstruction of justice, impeachment, etc. , those words are thrown around much more so. Out of the salt conference, ceo thathards, the does a lot with a distress bonds spoke to bloomberg television. He thinks there is a lot of doubt. He thinks trump trade is over for stocks and the markets. Here is what he said. Haveere is trump trade we all but embraced and driven the markets to new highs in equities. It is coming to an end here. [indiscernible] it may have to be that we get through this so we can see the policy measures. It is a rosy scenario for bond bulls. Jump into the bloomberg. You can see the 10 year note yield is back below this range from 2. 3 to just above 2. 6 , trading around 2. 2 . This has been quite a move in the rally. It is a cliche, the markets do not like uncertainty. Theypeople are uncertain want to hop out of the riskier assets and jump into treasuries and wait and see what happens. A week from now we can say, that is quite a move. Will we be saying there is more drama . The bond bulls will say, see, we told you. It is not the year we get above 2. 6 and stay there. Betty speaking about uncertainty, more breaking news from the Justice Department. Trying to alleviate uncertainty about whether or not Robert Muellers appointment had involvement from the white house or President Trump. The Justice Department saying the Mueller Appointment, Robert Mueller being assigned to special counsel, they told white house after this order was signed to make it official. This is again, reassurance you could say from the Justice Department, saying this is all independent of the white house. Some not satisfactory to of those opposed to what is going on, that is nancy month nancy pelosi commenting earlier, saying it Robert Mueller is a man of integrity, but muellers special appointment cannot take the place of an independent commission by congress. There is much more to this story that we will continue to roll ahead. We saw it finally hitting the markets. Ahead, other stories. A record run for tencent as investment pays off. We will look at what a billion plus users can do for a company. This is bloomberg. Yvonne more on how the white house is trying to contain the fallout. This is bloomberg. Yvonne we are counting down to asias first market open this morning. Japan futures heading lower on the back of this selloff we saw on wall street overnight. Some of the worst days we have seen in 2017. The computer follows the followup from the comey firing and the Russian Investigation special counsel appointed by the doj. More on japan in the next couple minutes. Specialwe are expecting a fiftr of expansion for japan. Thedollaryen, 111 against dollar. This is daybreak asia, i am yvonne man in hong kong. Betty i am betty liu in new york. Lets stay on the story out of washington. President trump in the midst of his biggest crisis since he entered the white house. Markets unsettled by the drama. The doj has appointed a special prosecutor to oversee a legend links to russia. That, as a president deals with the fallout from the alleged memo, that claims he gave classified information to moscow. Bloomberg Congress Editor is tracking all of this. We just had some more comments from the Justice Department saying the white house was told of Robert Muellers appointment after the special order was given. How significant is that development . This appointment may go a fairly long way to calm congress calm calls in congress for a special independent counsel or commission to investigate the whole russiatrump controversy. The initial reaction from both parties has been almost entirely positive. Jason chaffme etz called it a great selection. And Dianne Feinstein said it was excellent, as good as it gets. Ago,u heard a few minutes House Minority leader nancy pelosi praised his integrity bit also said integrity, but also said it does not take the place of an outside investigation. There was one statement by chuck grassley, republican, who said he was concerned he cannot the special counsel overseeing the fbi investigation may make the investigation go dark, and whether it may keep other investigations whether it may preempt other investigations from going on. Betty there are still a lot of question marks. Take a moment and tell our viewers a little bit about Robert Mueller and why he seems to be garnering this praise on both sides of the aisle. He is one that is widely respected. Laurie yes, he was fbi director for 12 years. He was named by george w. Bush and took over a week before 9 11. Year term and10 president obama asked him to stay on another two years. He served until 2013, when he was replaced by comey. One thing mueller is known for is after 9 11 when surveillance was being ramped up, he joined comey in threatening to resign if the government overruled the thatce Department Opinion domestic wiretaps without a court order were unconstitutional. So he got a lot of praise for that from a number of people, including democrats. Yvonne good to get your take on that. Joining us from d. C. Unnervingt turmoil is the market. Gold, the vix moving overnight. The biggest threat is the slowdown in u. S. Car sales. Lets bring in a japanese ceo, joining us live from ceo from tokyo this morning. The fact were still talking about comey one week later makes it a big deal. The news we got on the special prosecutor now, it really proves to be a distraction when it comes to trumps growth agenda. How does it dampen risk sentiment at the moment . As a whole, is there a sense we do not know how far it could go . I think there is a huge uncertainty. In washington unfolds, the big spectacle. We want to see the deregulation agenda driven further. You want a strong white house to lead the tax cut agenda. And that is being put into question. You could end up with a lameduck president. Yvonne how long can this last . Are we in for a rough session in asian markets today . We see the dollaryen dipping below 111. Could it be continued selloff we could see . Jesper for all intents and purposes, for todays market, there is no point guessing the way we are going, given the risk of sentiment going on. You are likely to get dropped in the market of 1. 5 to 2 . You haverm in japan, corporations a very conservative in terms of what they have been looking for out of the united states, out of the currency. Look at toyota corporation. The biggest bailout of a car company. Their budgeting for a dollaryen over the next 12 months going forward. Buffer built into corporate expectations. From that perspective, todays drop could be a buying opportunity. Betty i wanted to point out to get a closer look at the dollaryen move, lets go into my terminal. Ne wasn see what yvon describing, the fall in the dollar and the strengthening of the dollaryen. It raises concerns about export growth, particularly for the automakers. Even though they have the buffer built in, they cannot be happy with the direction of the yen. Not only that come about whether it will have a dampening effect on inflation, on the bojs ability to slow fed inflation. How much will that be a factor for the boj . From the bank of japans perspective, the ups and downs of the currency have an impact on headline inflation. But at the end of the day, the good news out of japan is, yes, japan remains geared into the exchange rate, remains geared into the Global Economic business cycle. For the first time in 20 years, domestic demand is beginning to gain traction. That is what we are looking forward to in the gdp statistics, where domestic business expenditure is likely to show that corporate japan, for the first time in 20 years, is reinvesting for growth and a local and domestic japanese economy. Betty thank you so much for joining us. We will watch more on the reaction in the markets in tokyo, but also gdp numbers coming up in 20 minutes. Plenty more to come. This is bloomberg. Betty we are following the breaking news with the doj appointing special counsel to the Russian Investigation. We are hearing from the president himself on this appointment. President trump saying he welcomes the appointment of Robert Mueller, who was the predecessor of james comey of the fbi come on this russia investigation. The appointment of the special counsel is very positive, not according to President Trump. He is looking forward to this matter, to conclude quickly. And he is saying a thorough investigation will confirm it was no there was no collusion into the trump camp meddling into the russia ties. The question is, how this could change the russia investigation . A lot of stake for President Trump. He is confirming he is welcoming this appointment for now. Lets continue on with that, latest story and breaking news in a moment. We are looking at plenty of earnings that came out overnight. Especially with tencent. It is a gaming payoff story for . 10, with a top score for earnings. We will look at those numbers coming up next. 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. A. M. Cloudy in hong kong this morning. Minutes away from asias first market open. Betty 7 30 p. M. Wednesday in new york. A lot of news pouring in after the markets have closed. The markets down, as you can see. Down, given this continuing follow, the firing of former fbi director. Robertecial counselor mueller appointed. I am betty liu in new york. Yvonne i am yvonne man in hong kong. Youre watching daybreak asia. Now, first word news. The stakes are rising for President Trump. Hasdepartment of justice appointed a special counsel to oversee the fbi investigation of russias allegedly attempt to influence last years election. Former fbi director Robert Mueller has been named. President trump immediately says he hopes the matter will be concluded quickly. The doj says an independent inquiry is in the public cost interests. Publics interest. The speaker says he has full confidence in President Trump. Lawmakers must follow the facts wherever they lead. He was trying to sway rep