Flat in the first half hour on the shanghai markets, the kospi point 6 , mixed movement in Southeast Asian equity markets. Fixave been seeing the yuan stronger again. The offshore renminbi weaker at 6. 8842, the pboc setting parity today. A little bit stronger there. Of course, the yen in focus, continuing that rebound against the dollar. The dollar index for a weekly loss. It doesnt look like it may hit oft Morgan Stanley target 116 by the weekend, so more of a resurgence in that currency. Elsewhere, yields continue to rise in australian and new zealand bonds, up nine basis points on the 10 year note, 2. 88 percent on that yield, the highest level since january, so bonds still outoffavor. Japanese 10at the year bond, some movement coming through there, just above that 0 mark, so a little bit of exhaustion today. Haidi thank you for that. The Monetary Authority of singapore is slapping financial kennedys on local Bank Branches for antiMoney Laundering breaches. Rishaad lets get over to southeast asia, how big are these fines and what is the consideration here . Haslinda getting slapped with a fine of 3. 5 Million Dollars and 1. 75 million respectively. Are among banks found to have committed to have committed serious lapses in Money Laundering controls. More than 170 million in assets have in seized. What the Monetary Authority of singapore has done is served notice of its intention to issue what is called a provision order trader, barred for 10 years. Goldman sachs in february and issued a nonauthorized reference letter on behalf of a malaysian finance malaysian financier. The penalties are the latest clampdown to address damage to singapores reputation caused by antiMoney Laundering activities, lapses. The wage and withdrew the severallicenses of entities this year. Addition to what it has done before. Rishaad this has been going on for a while. How close is singapore to wrapping up its investigation into 1mdb . Haslinda almost there. It is doing the final examinations of Financial Institutions in singapore, related fund 1mdb flows took place. The investigation is being done across the globe, including switzerland, the u. S. , and if you recall, the u. S. Department of justice said in july that more than 3. 5 billion was misappropriated from 1mdb. It is seeking to seize 1 billion in assets. Has consistently denied any wrongdoing, so we have to wait and see how this progresses. Haidi thank you. Scandal this 1mdb continues to rumble along. Some of the big risks ahead for the market bond market selloff has extended into december, a u. S. Improving economy filling out this picture. Traders waiting for jobs numbers later this evening asian time. Rishaad we also have that italy, aferendum in president ial election in austria. Lets find out what is going on. We heard from donald trump in the u. S. He is talking about all the stimulus, one of the big factors big bondot just the selloff, but the selloff around the world. This chart tells the story of what this means. This chart tells the story of what this means. 1. 7 trillion worth of losses in bonds around the world. This is the bloombergbarclays global bond index, worst total monthly return in 26 years. That is that little red circle, showing the u. S. 10 year yields up to a level we have not seen in a year and a half. What is going on . What happened on thursday . Purchasing managers numbers that were stronger than forecast, just as china a couple of days ago. Lets see the pmi for november the picked it in this chart. 50, thaten above number, signaling growth for three months in a row. It has been above 54 the last eight of nine months. The white pine is industrial production, white line is industrial production. Been rising since tom and elected. Strong economic data, fed speakers coming up, all paving the way for that december rate hike, something that continues to fuel this bond selloff. It is jobs day. Is there any chance these payroll numbers will derail the fed and move bonds . Paved Federal Reserve has the way. They are looking at so many things to justify this, so it is hard to imagine what needs to happen. Another signal, new claims for Unemployment Benefits have remain low. That turquoise line showing claims which rose last week to 260 8000 have been below 300,000, a tight labor market in the u. S. Below that level for 91 weeks. This underscores the sense that the fridays job report in the u. S. Will be healthy. In fact, u. S. Payrolls are seen rising by 180,000, and in fact you can see that is a middling number, except if you average sign fort is a good the Federal Reserve as they get ready for the meeting on december 14. This should be priced into the market, but you never know. So much nervousness. If it is stronger come perhaps we will see more of the selloff continue. Rishaad lets talk a little bit have on sunday, that referendum on the italian constitution, and the Prime Minister is really staking his job on it. We have dangers inherent because we have a Banking System that some describe as precarious. It is a nice way to put it. Be a tie and referendum has been on a slow boil, but it comes together on sunday as italians go to the polls. Brexit, then donald trump, now italy, the sense of a populist uprising that could change the face of the political order. Lets see what matteo renzi has proposed. Overhauling the constitution to limit the power of the senate, to shrink it. He says it is inefficient. People say wooden that give the Prime Minister more power . That is one of the reasons why they think it will be a no boat, also because there has been a turnover of the establishment. Who that might help is the fivestar party. It is against the eu, running against the grain, and that would build on the brexit momentum. How are market setting up for this . Chartou are seeing is a showing an volatility of the tie in stocks compared to the european stocks the a tie in stocks compared to the european stocks. That difference has widened out to the highest difference in two years, showing uncertainty about italy is at a twoyear high and they are putting on positions to protect against that. Australia will also have the final vote on their president , one of the candidates is an antiimmigrant, antieurope skeptic candidate. Put thiss, it will question over the future of the eu. You have to worry about the euro and how this could hit markets in europe, so a lot going on. I dont think traders will be resting up. They will be in front of their screens and bloomberg terminals to follow all of this. Haidi Kathleen Hays there. We will be here to bring you the latest. Tohaad lets kick it out sophie with first word news. President elect donald trump has repeated his pledge to make America Great again as he theched a victory tour in midwest, claiming credit for keeping hundreds of jobs saying it is not time to downsize dreams. He also said america would maintain its trade links to the rest of the world, but there would be changes. We want to compete in the world, but we will compete in the world where it is a twoway road, not a oneway road. The advantages are going to come back to our country. To wave Capital Gains taxes for Foreign Investors when the Hong Kongshenzhen stock connect opens. It will the the same for investors buying chinese shares listed in hong kong. Be levied onstill Institutional InvestorsTrading Hong Kong stocks, and a 20 tax to dividends earned by individuals trading shares. Season spending will be affected by the decision to leave the european union. 2000 people surveyed, 17 percent say brexit will have a considerable impact on outlay, while 8 expect a slight effect. Overall, it found they will spend slightly left on Holiday Gifts this year. Thailand has its first new monarch in seven decades after the crown prince was formerly proclaimed king. He accepted the armybacked government invitation to take the throne and will be known as rama x. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi lets take a look ahead to the rest of this hour. China is known for its strict censorship rules, but now evidence that the regime is a blocking we chat messages outside the country. Rishaad ken donald trump deliver the economic boost he is promising. Youre watching bloomberg. Haidi you are watching Bloomberg Markets asia. How in the guess says the economy is the biggest in a fishery of Donald Trumps president cy as long as he says what he will do. You are saying 2017 is the year of trump versus the fed. Tell us more. Absolutely. One of the biggest battles of 2017 will be trump versus the fed. We have a dovish fed that will be more dovish and 2017. Two hawkish members will be leaving and two dovish members will be added to it. Against that, you will have trump and his administration. It is by definition caucus because ofhawkish the policies he is talking about, so it is a dangerous situation when you have a fed that is dovish and trump ahead of the curve with his inflation policies. Haidi markets are continuing to drink this koolaid, treating it as if these inflationary expectations and infrastructure is a done deal. Creatingarkets just this narrative and buying into it . I dont think so. I think what he is talking about makes sense, and if he does what he promised, it will be successful. The most important part is the infrastructure spending. There has been talk of 550 billion to 3 trillion. I think 550 billion will be too conservative for what markets have priced into yields. Rishaad what happens market if we get a truly awful jobs report . Would it derail this forthcoming Interest Rate hike or is it a done deal . I think it is a done deal. The markets have priced in a better than 90 probability that the fed will hike. Report is a jobs massive mess, they will still go. Could affectg that it would be a negative payroll was a veryearnings weak number, but i think they will go and this is more of a bump in the road. Is there a chance that we are underestimating how much event risk is coming up over the next three days . Risknday going to open up for a broader variety of assets than we are pricing in at the moment . There has been a a lot of sleepless nights going forward, and i think it will continue for the next few days. Italy, austrian president ial election, the fed, payrolls. If you think about the trump presidency, a lot of people arent very experienced in the public sector, so when they open their mouth, they have to be careful that when they say something, every word they say will be put under a microscope. As these people go forward and we see lots of data come out in the next few days, that will be volatile. What also will be volatile is whatever they say as they go on this victory tour. Rishaad donald trump is not paid attention to what comes out of his mouth, in particular. Have tenyear treasuries yielding 2 , 4 , 3 at the moment. What is that telling you . Market isf all, the buying into the infrastructure plans donald trump has. 225to when we get to 50, we see cash being put to work. This time, we are not seeing that at all. We are seeing more selling, stop outs, and more of a panic trade. I think that will continue. I think what trump is doing is going to be successful, and the market is saying this is not a technical move where the market will come back. This is a structural move in the u. S. Dollar rates, and it is becoming clear that what trump will do can be successful, and even more clear, the dovish fed right now is no longer in the driver seat of low yields and the volatility. Is replicated in what you see when it comes to the asian markets, these outflows that of come out, it is not time to come back in yet. Is not yet time to come in and start picking up again . Absolutely. I think you are seeing it and yen, 114 right now. More importantly, you are seeing it in the emerging markets. Emerging markets was one of the biggest beneficiaries of qe policy. Everyone was taking their money out of the 90s states and putting it into emerging markets, where there is higher yield and higher reward. Now we are seeing the opposite. Emerging markets are getting hit very hard, as well as mature currencies like the yen. Rishaad absolutely. That may represent a buying opportunity, but alas word on Steve Mnuchin as trekkers treasury secretary would mean. I think Steve Mnuchin was a savvy pick, will grounded in markets and understands how markets work. There might be a little issue with him just because during his confirmation process, they will bring up the fact that he bought a failed lender in the middle of the housing crisis, but ultimately the confirmation il prettyhould sa smooth. Anyone who isnt familiar with fame while trouble trying to figure out how to pronounce Steve Mnuchins last name. Up next, black friday drives the u. S. Auto sales. Why japanese carmakers are miles bond beyond the rest. This is bloomberg. U. S. Auto sales on track for a seventh Straight Record year after beating estimates in november on the back of lying on black friday. Something,ll me japanese and korean brands particularly did well. Absolutely, yes. They all did pretty well, toyota, honda, nissan, hyundai, kia, they all exceeded the Industry Growth rates. Overall, the month was off to a preelection jitters affecting sales, but it seems they turned things around. We saw a positive month and a bit of a change from the recent trend of suvs up and cars down. The suvs did do well, but there was less of a drag on the cars side than we have seen in previous months, so nissan also did very well, exceeding estimates. It was a good month even for honda, though they did miss expectations. Haidi toy yoda made headlines with sales toyota made headlines with sales and its new model. We had that announcement overnight. Is the bestselling car in the u. S. , and it has been for so long. Once the calendar rolls around, it will be the 15th Straight Year that it has been the biggest selling model in the u. S. It was a surprise this new model was coming so soon, a quicker turnaround for a major change to this model, only three years since they last introduced the new version of this. We will find out more about that model next month at the detroit auto show. To be an upit going or down year for the u. S. Carmakers. Looking at 2016, very quickly. Moment for this year, it is touching go. Throughs were down october. At the end of november, up 0. 1 . Rishaad thats all we have time for. Thank you for joining us. Haidi more on Chinese Markets after the break. This is bloomberg. Ophie Sophie Kamaruddin the singapore Monetary Authority has imposed fines for breaches of Money Laundering in relation to 1mdb. The former fed chairman ben bernanke says china does not meet the definition of a currency manipulator. Conference in beijing, he said china was well, buthe yuan warned trade relations with the u. S. Were less certain following the election of donald trump. Ben bernanke said policymakers in japan must do more to achieve 2 inflation. Formed the secondlargest dealmaker with an annual capacity of 60 million tons. The Group Emerges from the splicing together of other companies. The company is estimated to employ 228,000 people and has assets of more than 100 billion, second in size. The french president said he wont seek reelection next year. Power promising to reduce unemployment, but the rate remains at 10 . He is the most unpopular leader in french history. First to not seek a second term. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi thank you for that. This is Bloomberg Markets asia. I am haidi lun. Rishaad i am rishaad salamat. Japan having its lunch break. Yes, im going to have a look at some of the big losers in the region. This is the company in seoul, korea, a military equipment maker. S k security said it is facing uncertainty in winning new orders, so one of the worst performers in terms of market cap on the regional index. Lamys showing weak sales. It came through with a note this morning saying it has seen more weakness in its china business. About 500 million wiped off its market cap. Dena down 7 after it closed a number of websites that had beens reading fake news, publishing articles providing dubious health advice, so some weakness coming through. Picture, china has turned negative, down. 3 even though Goldman Sachs came through with a note saying they have cut to market weight from overweight, some perhaps why we are seeing selling in that index. Strength pushing that down by. 5 . A retreate have seen in commodity players weighing on the asx 200. It is down. 7 today, but we are seeing upside from most of Southeast Asian markets, but not singapore, pretty flat. It had been higher for eight consecutive sessions, the longest winning streak in around two years. Having a look at the bond market, selling coming through today. The 10 year yield on the australian note rising by nine basis points to 2. 88 , the highest level on the yield since january, so bonds still under pressure. Japan, a little uptick coming through in that 10 year note. Having a look at the japanese yen, strengthening a little against the dollar. Play intoth going to the japanese equity market when it opens in an hours time. Rishaad thanks. China announced it will waive Capital Gains taxes for foreigners who trade on the Hong Kongshenzhen exchange