Badly fitting batteries will be blamed. News fromo breaking the federal Aviation Authority in the u. S. , United Continental holdings requesting a ground stop for domestic flights. It applies to mainland flights. We tried to get hold of the airline, but havent had any calls returned just yet. We will bring you the latest as well. A full ground stop for United Airlines there. Just under half an hour before the trading week is underway in hong kong and shanghai. Chinese lunar holiday. Markets coming on stream. Sophie, a good day. Sophie a good day, but not some earkets in asia as they tak into account what trump had to say on inauguration day. Strength weighing on japanese shares, falling for the first time in four days, exporters weighing on the nikkei 225. Thisba having a good start monday, its biggest intraday gain since december. Media reporting toshiba will raise 500 billion yen to cover its nuclear writedown. Plus, canon is considering investing in toshibas business. 1 , but gold miners advancing for a third day. In the other direction, the biggest mover on the asx falling 15 . As told provide a hint the health of the u. S. Economy. The company said it faced revenue and cost pressures towards the end of last year in north america due to u. S. Retailers restocking. Is on course for a seventh straight day of declines. Take a look at the kospi, strength so far for korean shares. Looking ahead, south korean fourthquarter gdp and taiwan. Some samsung pressure coming up. Thats what we are looking at today. Rishaad breaking news, samsung has revealed the cause of those overheating note seven smartphones was down to faulty batteries. Ones, we haveized all the details. Had indications that samsung were going to say the batteries were the key issue behind the overheating smartphones, some of them catching fire. We have heard from Samsung Electronics saying faulty batteries did trigger the note 7 fire, saying they will strengthen safety. The head of the Mobile Division of apologized over the note 7 issue. We have some pictures coming live images of the Company Making this announcement, telling us about what did trigger these fires. Rosalind hopefully we will get about the issues that may have been behind that faulty battery. Year, a u. S. Consumer Safety Agency said the batteries were too bigng sdi and pension when inserted in the phone, causing the phones to overheat. We will probably find out more today as to exactly if that was the reason behind it and what the issues were in the batteries. Critics at the time said samsung rushed to get its phone out before apple. So that contributed perhaps to the problem with the battery. Rishaad it doesnt surprisingly seem that the overall samsung business is holding up well. It isnd and this is what best known for, but has ,uccessful and strong divisions a Chip Division driven by demand , so thats doing particularly well. It has fourthquarter Earnings Guidance in january, posting its biggest operating profit in three years, 7. 8 billion. That is despite the issues with the note 7 phone. Analystsperformer many think it will be the Chip Division on stronger prices. The Fourth QuarterEarnings Release is out tomorrow. We will see more in terms of how divisions broke down and what divisions and how they performed, but Consumer Electronics probably not performing as well as others. Ofhaad we had the head product in seoul, korea, he has just apparently apologize for this whole crisis, if you will. We will be monitoring further headlines as and when we do get them. , here isrst word news haidi lun. Good day. President trump is breaking a campaign promise. A top adviser sanko white house no intention of releasing his tax returns. Trade is expected to dominate his first week in office, meeting theresa may on friday to talk about a postbrexit deal. The president and his team have stepped up their war against the u. S. Media and what were termed as alternate fax. President trump picks a secretary of state almost certain to be confirmed as key republicans drop their opposition. John mccain and Lindsey Graham will vote for Rex Tillerson despite concerned about his relationship with russia. John mccain said the new president deserves the benefit of the doubt. A committee will vote on monday. A new push to end the fighting in syria with russia, turkey, and i ran talks in kazakh a stand. The and armed representative groups representatives will attend as well. Tohough the u. S. Ambassador kazakh a stand kazakh a stand hong kong has retained its rank as the most expensive Housing Market for the seventh year in a row. Survey says the median price of a home in the city was more than 18 times the median annual household income. Affordable housing has been a consistent headache for outgoing chief executive. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Been sendinga has the u. S. President and all of branch, congratulating him and offering ways the countries can cooperate. We look at state media, a bit of a different note being struck here. Quite different to what the messages out of beijing. Twitter, often critical of china. His inauguration address, he did not mention china by name but did make references to certain policies on economics and the military side. China of course has been very impressive for us and its criticism of some of the picks of the calling it the rates wall of protectionism, Peter Navarro, robert light heiser, who has been critical of the chinese currency policies, and also wilbur ross, who at his confirmation hearing said china was the most protectionist major country, then Rex Tillerson, secretary of state nominee who has been critical of chinas expansion in the South China Sea , so a little bit of an all of branch coming from beijing. Newspaper . Ut the china in the last week has made statements about improving iness for Foreign Investment areas long closed like banking, insurance, mutual funds, and elsewhere. They are sending signals may want to do business with china, but the geopolitical issues are more touchy. Seem theit does language has been far less compromising when it comes to taiwan. Not compromising at all. Rishaad exactly. And taiwanina sea are two issues, defining core interest. Rishaad these are the red lines being drawn. They will not budge on these issues. Olive same time, those branch editorials came out, we had one from the peoples daily what the reiterated communist party of china has been saying for 60 plus years, democracy has reached its limit and the deterioration is the inevitable future of capitalism. There, you heard it here first. News,d back to breaking United Continental has grounded domestic flights down to i. T. Issues. That request was passed on to the faa in the u. S. United air requested a ground stop for domestic flights. Thats what you have. So if you are headed to an airport and a domestic passenger, issa just you ring a head and have a word with him. Right, still ahead, talent crisis, a third of banking employees looking to leave. We look at why later on. Plus, Trumps Administration seems to be driving investors color. Trumps favorite why investors are seeing a golden opportunity. That is next. You are back with Bloomberg Markets, the latest business flash headlines. Saudi arabias Energy Minister say they have cut supply by one point 5 Million Barrels a day since the first of january, 80 of their collective target to stabilize prices. It is one of the best agreements producers have had. Indiana, they agreed on monitoring to ensure 100 compliance. Maker takatarbag having another difficult day. Sellers vastly outnumbering the buying side of things, the stock yet to trade. Losing 20 on friday, tumbling on news that they favored courtlet bankruptcy. The stock had been severely beaten up to that point. Foxconn chairman terry gou weighing a joint investment with apple in a u. S. Display factory. The facility would cost more than 7 billion and create 50,000 jobs. While u. S. Protectionism is inevitable, American Consumers may not be willing to pay higher prices for products made at home. Asianxt guest believes markets have improved since the end of last year. She joins us now from singapore. Buy onwhat it was was the election and sell into the inauguration. Where do we go from here . Right. I think the picture has not changed significantly from december. The market is still searching for clarity despite donald trump now becoming president. I think the market itself has shown optimism, even in asia. Gaining 4. 5 kets since the start of the year. In general, markets are going up, so we have a good start to that year, but moving forward, it depends on how things play out for sure, yeah. Saw heading towards that 20,000 down level, much talk about that, a bit of a question on everybodys lips. The point is we have gone further away. Price to earnings multiples in the u. S. , 21 for the s p . 18. 5 when it comes to the dow . The point is, what is the danger of stretch by uh ands having an impact on equity markets in this part of the world, which are cheap relative be speaking . I think in that sense even though the pe ratio is high, the defense is the market is financials andt industrial sectors on the back of donald trump, who has inspired the market. In that sense, even though that is the case, even though the pe ratio is high, its about how much higher it can go when policies do come in. Thisugh uncertain at moment, in comparison for asia, there is still the trade issue that is unclear at this moment. I would said the disparity between the p e ratios rishaad tell me something, as we head into that inauguration and in the wake of it as well, do we still have this Movement Towards haven assets . Right, so i think one thing we all noticed to so far is that gold prices has surged above the 1200 levels, turning into support, so moving forward, there are many safe havens, and itselfself is presented shiny at the moment, especially given the Political Uncertainty with the elections in in europe and also in asia as well, so i think gold is getting its shine on. Ok, lots ofht, uncertainty as well, now what are you looking at in this part of the world . What are the questions being asked by your clients . This is trying to figure out the policies we have really for donald trump. For the asian side, it is about the trade policies. It is the first and foremost concern for the asian market. Up and gdp picks in thats for the u. S. Trend, it will be beneficial for asia trade policies. We have heard the u. S. President holds a nationalistic stance, that there will be constant moving forward and some countries will benefit more than others in asia. Rishaad what about oil prices . Opec saying it is one of the most successful agreements they have ever shaken hands on, what does the markets say . Right, the market right now, you can see that the net are still atitions historical highs, so in that sense, the market is still terms of oilh in prices and the opec discussion helped. On the other hand, baker hughes higher than a year ago, so that itself is not a rosy picture moving forward. This is a problem of a some supplydemand balance at this monet and how we will move forward in the balancing of the supply struggle. Rishaad have a great week. Next, make peace, not war. Australia still backing the tpp tpp despite Donald Trumps plans to scrap it. We will hear from the nations finance minister. Australias finance minister has downplayed the threat of an allout trade war between the United States and china. Mathias cormann telling Francine Lacqua that australia is still committed to the tpp. Looking forward to working with the Trump Administration. Australia has been a longstanding friend to the United States. Obviously we are confident that the Trump Administration is going to be focused on making as asthat america is strong and successful as possible. We look forward to doing lots of business with you. This is the u. S. Australia relationship. There as another relationship you are reliant on, the u. S. China relationship. What happens if there is a trade war between china and the u. S. . We dont believe there will be a trade war. We do have a strong relationship with the u. S. Is our largestes destination for investment and largest source of foreign china ist, and indeed our largest trading partner, the u. S. Is our second largest trading partner. These are both important trading relationships and we look forward to both of them going from strength to strength. What kind of impact will his policies have on the asiapacific region . There must be a little bit of concern, even if we give him time . It is too early to tell. We look forward to working with the administration constructively. There are a variety of areas will australia has an Interest Rate we are committed to tpp and proceeding with it. There will be conversations to be had in relation to do so, not only the u. S. , but other countries that are part of that. , andve to give this time we look forward to engaging positively and constructively. Are you concerned about the level of the aussie dollar . This is one of the strongest performances. It must hurt your ability to get away from mining . The value of the dollar is set by the market. It is not controlled by the government. That is an important feature of our system, an economic stabilizer of our system. Rishaad it is what it is. That was Mathias Cormann speaking to Francine Lacqua at davos. Minutes away from the start of the trading day here, the well,ket auction, some, on the way up i believe, but only by. 2 . The hang seng index kicking off the session there. Flat when it comes to the futures, against this backdrop of a mixed bag. We have the safe haven assets being favored so far. The yen climbing, and u. S. And australia government lawns doing the same yang, yields coming down a little bit, and thats currently what we have that the moment. Right, lets tell you about what else is happening. Over 1 ,i off by trading 200 points lower in tokyo. The kospi moving slightly to the upside by. 2 . Downuld say the nikkei because of that yen strength, exporters dragging things down. As donald trump considers taking on china over trade, we look at his options for labeling beijing a currency manipulator. We have the market open in hong kong and shanghai. The opening numbers for this week right after this break. Your first word news. Samsung says that is made by an affiliate were to blame for the note seven fiasco. Overheating and fires were called by separation in the batteries, which were too thin. The company apologized and promised to strengthen batteries safety. The companys deepest business off its Flagship Smartphone and may have cost at 6 billion. An wall street journal says investigation into been massive data breaches said yahoo , citing unidentified sources saying they were look at whether the company should have reported the hacks earlier. Breachid the 2014 affected fewer than the 500 million disclose. Secretarypine finance has started a visit to beijing to discuss 15 billion worth of investment. China agreed to the deal and october, the president calling on beijing to help rebuild philippine infrastructure as part of its pivot away from washington. Givenh lawmakers have approval to the president s campaign to secure sweeping executive authority. Members have voted in favor of making the president the head of the executive and abolishing the Prime Minister. It will trigger a referendum that could be held and april. Opposition parties say the changes would concentrate a significant amount of power in one single authority. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad asia has been digesting what donald trump had to say. Here is Sophie Kamaruddin with a aok at early marching action, lurch towards the safe havens. Sophie a pickup in safe haven buying, gold, yen, treasuries on the rise. Japanese shares falling for a fourth day. The one bright spot has been toshiba, rising the most in three weeks on reports the Company Plans to sell a 20 stake in its chip business with canon as a possible investor. Checking in on samsung shares, up. 5 after the company apologized over the galaxy note seven debacle, saying that faulty batteries contribute to fires plaguing the device. 200, brambles falling largest palette shipper, downgrading its forecast on pressures facing its u. S. Operations. Checking in on currencies, the softening of the dollar rally after trumps speech, the yen leading asian forex higher, and the singapore and dollar seen the biggest gains. Afterfshore yuan trading china set the fixing. Stronger than fridays fix. On sunday, the pboc adding to record cash injections ahead of the lunar new year. With that, lets check in on how Chinese Markets are shaping up this morning. The shanghai composite and the kong, gains in hong of over. 1 and shanghai, rising for a second day, telcos and Consumer Staples leading the rise. Adding. 3 so far with industrials leading this market higher, snapping a two day drop. Rishaad right, lets get you to breaking news that came through from the top of the hour, samsung has confirmed that faulty batteries did cause some of its note seven models burst into flames. What has samsung been saying since then . It is about the wrong size batter