The departure will be hard for them. Best parts are fantasy. We are 29 minutes away from the start of the trading day in hong kong and china. Risk appetiteore out there, if you will. We have kuala lumpur studying their trading day. Starting their trading day. What we have is people feeling like their glass is half full. Dave we certainly need days like that. Jumpinessll of this and nervousness comes down to what has been happening in the markets. Bloomberg dollar is resuming its gains. Massive move overnight. That and the u. S. Dollar. We are seeing some of these and the aussie dollar. Have a look at sterling. Interesting note out of goldman. The rally that we saw and we have pulled back from those levels at 124. It is a good entry point to shorting the currency. Good time to get back in. Have a look at equity markets opening at the moment. Taiwan, singapore where i am and malaysia. Any indication, japan and australia, mixed picture. Marketsy, these three do need a few minutes. 3000 on the index. Fairly ominous number for them. S p futures coming off a little bit. We were up a little bit on that contract. We have beenvers following. Have a look ata, how shares are doing. Drugmaker based out of australia, 10. 3 revised. Projections upward. That had to be caring the asx 200 on the moment. Back. Est pulling level going back to 2000 2012 on the back of the upgrade. You are also seen a lot of optimism surrounding this lineage game. Lineage two, revolution. 206,000,000,001 were sales for of the shanghai investments. Shares up. Highest level since 2012. Hong kong, a few things i want to watch. , and hong kong property fixes are set to fall for the First Time Since 2008. Markets pushing higher and higher despite the pboc injecting more cash into the system. We will move from singapore to sydney. First word headlines with heidi. Haidi. Deutsche bank bank has further job losses on the horizon. The bank has been asked to identify the bottom 20 of performers in preparation for possible cuts. They have also scrapped bonuses for top executives for a second straight year. And scrapped compensation for other single employees. Takata is suspended from trading in tokyo as they try to confirm a report that they want the courts involved. Nikkei news wrote that the Safety Systems propose to come involved in the debt restructuring. They say they are likely to any debt they owed without legal intervention. Tumble thataking a losses may be wider than expected. Suggesting suggesting it may exceed the 4. 4 billion it has been flagged to lenders. It has been said to ask other lenders for support. The company says it is still calculating the size of the right down. There are reports claiming that north korea may be preparing to start a Nuclear Reactor after a pause of over a year. John Hopkins University website says pictures indicate renewed activity of maintenance or refueling. South korea says there are signs that the north may soon fire a missile. Day,l news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Lets get to breaking news coming through from the prosecutor. Of theseeking an arrest bribery and embezzlement charges. He is saying he is regretting because heon, decided not to arrest him. The special prosecutor said they will continue with the investigation. That is after the court turned down arresting him of those charges. He was set free after a judge said it was not enough reason, or justification for those charges. Ve, whats happening there is a bit of a surprise for some that he did not get arrested . Have for some it might been a surprise. If you think about it, it was a bull move from the special prosecutors to doan unprecedented arrest warrant request. Generally, the court would issue an arrest warrant if the suspect is a free fleet risk. That was never the case here. They never issued an arrest warrant for a major head of a labeled. This is south koreas largest and most powerful member of korea incorporated. To arrest him before a formal indictment would have been unprecedented. I guess some would argue that this is not much abe much of a surprise. That ruling that came out from the court in the morning, at about 5 00 this morning, that ruling came down that there was not enough reason or justification to remand him to custody while the special prosecutors still build their case. Eoul detention center. He was waiting until a trial or whether he would be able to go home. He was able to go home. This is frontpage news in the english newspapers here. There he is as he came out of the court yesterday. We were also right there deep in that recording it. He was stonefaced throughout. When he came into the special prosecutors office, when he left, when he went into the court, when he left, when he went to the detention center, he was front and center and not shying away. He never made comments even the reporters asked him a lot of questions. You can see him on the front page of the korean paper. He is closing his eyes kind of saying, i wish this would all go away. Rishaad are there any steps in the future . The prosecutor said they will continue to gain evidence, so this is not over with, is it . Teve no, it is just the next step. They are awaiting to build the case. Special prosecutors say they will continue to build out this case. There is probably a justification if you look at public opinion, considering this is a smaller portion of a larger investigation of rides and peddling that goes all the way up to the highest office in the country. That is the president , who was embroiled in scandal and eventually in peach. Hed. E is a public impeac he is a free man now and samsung can continue with the standing. There will always be this looming in the background that there will be a formal indictment and trial on the road. U. S. Ad lets get to the bond market. We saw a selloff as Consumer Price prices accelerated. Global economics and policy editor Kathleen Hays has more. Inflation . Ut i think the bond market was already spooked by this inflation figure. It was expected, but it showed some acceleration. Janet yellen was speaking to the Common Wealth club in san francisco. She said yes, it is near max employment and inflation is moving towards the fed score. She added that it is not there yet. Inflation is still running below our 2 objective. By some measures there may still be room for progress in the job market. Hasinstance, wage growth only recently began to pick up and remains fairly low. Unemployment is not quite back to its prerecession level. Kathleen also important, one day ago the president said he was more adamant about price pressures. This is not a problem after it janet yellen spoke on bloomberg television. Comments dovish. We saw this selloff. We saw the inflation number as well. Were there any red flags . The bond market posted its biggest jump in yields when the fed last met. The headline inflation went to 2. 1 in december from 1. 7 the month before. Gasoline prices, that is what was expected. Takeout food and energy, it went from 2. 22 2. 1. See shelter cost. Cpi when line is this you take out the shelter cost. It came down even have a six month moving average basis. It is starting to trend lower. Maybe this is another reason why janet yellen not worried about inflation yet. Is 1. 4 year over year. It is still a way a year away from the target. European Central Bank Meeting in frankfurt, what are we looking at their . We are not looking for anything. Inflation has risen to 1. 1 . Their target is 2 . There is so much uncertainty. Journal trump gets enough graded aguratedperated inu as president this week. Rishaad Kathleen Hays in new york. We heard janet yelling as well. Janet yellen as well. We will be looking at Cathay Pacific considering changes starting from the top. We delve into the airlines biggest revamp in decades. The, can they enjoyed European Union without the obligations . We hear from a man who is leading well and the European Capital markets. Jp morgan ceo says the eurozone could break out its leaders if they dont discuss the fueling support. He had hoped leaders would examine what led the u. K. To make believe. Went wrong in britain affects everyone. Inif you have presidency other nations, it may not survive. Longterm unless they change. Rishaad our next guests has three decades in experience. David wright advises the Financial Services department. Lets take the view here. What are you making of the narrative coming out of the mood thec team played in European Union and the aftermath of theresa mays speech . David i think they have made a big effort to clarify their objectives. I think there was a Strong Demand for that. That said, i think there are a number of areas that are unclear. The future trading arrangement, the custom unions arrangement, the transitional arrangement. There has been some additional clarity, but there is a lot of detail here to be fixed. The european side, the europeans have remarked have been remarkably disciplined. They are saying that we have to talk about a divorce, then about a transitional arrangement. Then about the trading arrangement. How this negotiating process is going to work out will be very important. I think there are still a large number of uncertainties here, and i think the negotiations are going to be very difficult and very complex. Not impossible, but very difficult. Whoink the while trading le trading relationship is the one companies are concerned about. Rishaad there has been a lot of talk from bosses of banks who are headquartered in london, having their European Headquarters there moving to the mainlands and basis of paris or frankfurt. Devils advocate and say that is a red herring. Passportingo their through the European Banking Union, as many commentators have suggested. I do not think they are bluffing. If you are doing business from london, and you are facing a situation where you can no longer do that type of business, you are going to move. Whether you have a subsidiary in another country, if you dont you will have to set went up. You will move to where your clients are. That is the most important thing for firms. To maintain that commercial relationship with your clients. I dont think they are bluffing. To movethey will have certain functions and people if the access to the european orkets are cut off, decreased in the future. The European Banking Union is an important element of this. Itave said for a long time, is terribly important that the European Union moves forward with European Banking Union. That means finalizing in the eurozone on the deposit scheme. It means sorting out and finalizing the emergency, soolution framework, and forth. I think europe has in opportunity with brexit to move forward with Capital Market unions as well. I think what markets need to see and what citizens need to see is action and delivery on the european side, in spite of brexit. Rishaad what about settlement . There have been fears that settlement will not move into europe. New york could pick up a lot of business here and cement its place in the financial center. This is one of the issues that will have to be discussed. We have heard clear comments from france and from the president of france on a desire to move euro clearing back into the euro area. This is an important subject, subject of negotiation. I think what europe needs is a fishing clearing. Lowcost clearing. I think, for example here, the outcome of the torture deutsche Stock Exchange merger is crucial. Of what the may be future of financial architecture will look like in europe. This is one of the subjects that will be Debate League debated in negotiations. The point is, will politics get in the way of a reasonable solution that is winwin . David politics is right at the heart of this. It is the United Kingdoms decision to leave the European Union. Greatly regretted by all Member States of the European Union and all people who work in europe. But that is the situation. If the United Kingdom leaves, rains will have to change. The Prime Minister has made it clear that she does not want to be a part of a single mark market. She wants to have liberty to go around the world and do free trade agreements with countries that are willing to do so. By the way, that will be hugely complex. People understand how complex that is. It is a massive number of tariffs and barriers to negotiate. I think politics is at the heart of everything. From the european perspective, europe will not want to see an outcome which makes it more favorable for the u. K. To be outside than inside. Rishaad david, great talking to you. David wright from the International Organization of security. Jobs notustralian stopping the rising on unemployment. The details, coming up. Australias Unemployment Rate edged up. The numbers released a short time ago were less volatile. , therelen is in sydney is a mix bag this time, wasnt it . What sort of pictures didnt paint . L we did not get a crazy number of the 5. 8 number was worse than the 5. 7 expected. The 13 and a half thousand jobs created did impress the market more than the 10,000 that were expected. It was evenly split between fulltime and parttime jobs, reversing the trend we have seen over the months with parttime exceeding. We can put it down to the Participation Rate that rose to 64. 7 . Rishaad they will make the first cash Rate Decision of the year. What are the implications, if any, of this data for the reserve bank . Aul pretty much no one is expecting the reserve bank to move when it holds its first meeting on the first tuesday of february. It is first noting they have put it out the volatility in the labor market. The wages growth has implication for inflation. It is weak inflation that prompted the reserve bank to cap twice in 2016. The labor markets figures are interesting. We will get a look at the figures next wednesday. Having theul allen jobless numbers out of the australian economy. Lets go back to singapore property. The slump could be reversed all thanks to hong kong. We have the market open in shang guy shanghai and hong kong. About 6. 20 3000 asiapacific markets are moving to the upside. Rishaad this is Bloomberg Markets asia. Salamat. Aad we get it over to haidi lun. Haidi a korean court has rejected the arrest of jay y. Lee, saying there is not enough evidence to detain him. He is accused of bribery and paying millions of dollars to a confidant of the korean president. Two former currency traders from Deutsche Bank and hsbc have been found guilty of making false trades. They pleaded guilty in a separate hearing. Both men admitted to using their accounts to win preferential rates on the dollar. They will be sentenced later with jail terms of 36 months. Ubs says growth will be an line despite low Interest Rates limiting how much business the bank takes on. 50 billionects dollars across wealth and asset managements this year, and says the bank is selective as to what new money it accepts. I think we could get billions and billions of new money, but structurally, it would be a loss because low rates or negative rates and consumption is a factor as well. Producerchinese film is planning an ipo in hong kong. Million,o raise 100 and an offer could happen by midyear. Would founded in 2012 and join china film and selling in the worlds secondlargest movie market. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad thank you very much indeed. We saw a pullback when it comes to Cathay Pacific, there we go, the share price right now. The airline scrapped its profit forecast saying a critical review of the whole business is underway. Sophie kamaruddin is having a look. They have not done something as extensive as this for a while. Is the biggest revamp our Cathay Pacific in two decades. Part of the review will see job cuts at the top, with measures to take affect why the middle of the year. Somey pacific did say that new jobs will be created, and be eliminated as it is looking to trim fat. Lets take a look at this chart, the pressure on passenger yields. We will show you how we have seen field slump to a sevenyear low. Pacificns that cathay earns less per passenger. In the first half of 2016, saw an 82 10 and plunge in net income. On wednesday, it warned that the second half of 2016 will not be any better. In march, it will be releasing fullyear results. ,ishaad right, historically lasted about three years. Could it mean change at the top . Sophie a spokesperson did not comment on speculation whether he would be replaced, but since sharek over in 2014, the price has slumped 30 , so he has been under pressure to deliver. It could well be that chu will not be there long. It is the third worst performer on the hang seng this year. Not one of 19 analysts tracked by bloomberg is recommending a buy. Rishaad 82 plunge in the first half of 2016. Sophie they are expecting them to chalk up losses in the second half of 2016, so tough times for Cathay Pacific. Rishaad i havent seen a move like that for nine months. Lets look at what else is going on, the market open in shanghai and hong kong. Lets get to david ingles. To do what we are trying is find our footing as far as equities are concerned. A strong start, pulled back recently. Moneyight have to do with flows. Currencies weakening against the dollar. It consolidated for the first couple of hours in asia. We are now looking at the kleins across these emergingmarket currencies across asia. As you can see, dollar crosses on the way up. Have a look at the majors as well. Data coming out, 13,000