Mcdonalds allday breakfast fueling a yearlong sales surge, but customers are losing their appetites. An hour fromhalf the open here in hong kong. Any tailwind,ting more like a few headwinds coming out of wall street. Lets have a look at the markets about to come online, singapore, taiwan, kuala lumpur. Flat,a stocks fairly giving a mixed picture in asia. What is happening with australian stocks given the jump in metal prices helping miners on the index. Helping halted today drop. Trumps remarks overnight, the dollar on the defense which is putting pressure on japanese shares in the nikkei 225 down. 25 for a second straight day. To stop in focus is to conduct, is takata falling for the second day, dropping 17 last i checked. Lets take a look at what else is going on. On the cost be, they have swings so far, automakers dragging the most with hyundai leading the drop. Reversing the days earlier advanced to a twoyear high, falling over 1. 5 cent. 1. 5 . This morning, it did deliver a fourthquarter earnings take peak. We will have more on samsung in a little while. A greek word on what is going on in the bond space a quick word on what is going on in the bond space given the rally we saw in treasuries based on trumps comments. To 10 year leo the 10 year yield pushed lower as investors shun risk. We do have one person saying to watch treasuries because it is yields that are beating the dollar. If we could pull up the chart on the terminal, it is going to show you the correlation between treasury yields and the movements in the dollar. We have seen the rate on the benchmark 10 year notes moving in the same direction as the greenback. Keep an eye out when it comes to what could guide the dollar Going Forward. Rishaad thank you. Lets get you over to singapore and get over to house haslinda amin, who has got the first world News Headlines. Haslinda Rex Tillerson is almost certain to become secretary of state as the Foreign RelationsCommittee Gave its approval and sent his nomination to the full senate. Marco rubio says he will offer his backing despite questioning tillersons links to russia when he was exxon mobil ceo. This the senate is now voting on mike pompeo as a a director as cia director. We are told he has secured enough votes. The brexit plan will become clear on tuesday, when the Supreme Court will rule on whether the plan can go forward without parliamentary approval. If so, theresa may will launch article 15 by her selfimposed deadline. Most members of the houses of parliament a postbrexit. Yahoo says the sale of its web business to verizon has been delayed until next quarter while it recovers from disclosure of two hacks. The deal had been expected to close in the current period. Share gains after hours as Fourth Quarter results beat estimates. Bristolmyers is User Security is top priority. Lg fourthquarter sales and profits beat estimates. Operatingsuppliers on profit of 775 million well sales rose to 6. 8 billion. Meanwhile, they have secured a deal with Samsung Electronics possibly as soon as this year. And checking on shares, they are up. 4 . Global news 24 hours a day powered by over 2600 analysts in more than 120 countries. Im has haslinda amin. Bought backsung nearly 8 billion worth of shares after doubling orderly profits. Ros has been on top of this story, more downs than ups. This seems to be an up. Beoverall, samsung seems to good with it share prices, has not done too badly despite the last year. It did say today it is going to buy back about 8 billion of shares in three to four phases and will cancel the shares it repurchase three in the first phase, expecting to buy back the chilean shares. It is part of a Shareholder Program unveiled at the end of november last year in response to pressure from activist shareholder elliott. Lets take a look at the numbers released for the Fourth Quarter and the full year. Net incomes for the fourth order , justhan doubled to 6. 9 under 6 billion u. S. Dollars, driven largely by the rising price of semiconductors. A recovery in its mobile business. You have to compare that against Bloomberg Analyst estimates which was 7 trillion, so slightly lower than expected. Operating profit, if you look down at the divisional breakdown, which is what is interesting and we got today, you will see the chip billion very well, 4. 2 as compared to 2. 8 trillion euro layer. Essentially, demand around the world is up, among one of the biggest chipmakers in the world. That is driving up the price further, which is great news. Rishaad what are they saying about that . What are they saying about the rest of the different silos or product lines they have for this year . Rosalind they are saying in the First Quarter, they do expect earnings overall to decline quarter on quarter. Earnings and some businesses are set to increase because, for example, increased marketing and in the mobile business also what they call weak seasonal demand. Sold 16 million televisions in the Fourth Quarter but have seen sales falling 40 in the First Quarter. In the mobile business, they sold 90 million handsets and 80 million tablets in the First Quarter, so they expect tablet sales to show a small decline. Semiconductors and leds are doing well, expected to perform well in the First Quarter of this year. If you look at things like the fact that chipmakers are doing well, oled prices are doing well, that will impact his other divisions like mobiles. Because the parts are made to use those and are more expensive. That is partly one of the reasons. Rishaad thank you very much. Lets have a look at what donald trump has been up to as president. He is carried out one of his Biggest Campaign promises, pulling the u. S. Side of the Transpacific Partnership. This up ends decades of u. S. Policy and moves toward greater freetrade. Ramy, reaction has been pretty swift. Again, no surprise really. Ramy President Trump had campaigned on this over the past few months in the run for the election, and now he is turning this around and is saying that he is going to fill fulfill one of his Major Campaign promises. American jobs, american lives. What you can to see on the twitter post from the potus account is the americafirst. That is the running sentiment for today, mr. Trump believing that the death of tpp helps put america first. Lets take a listen. Pres. Trump we just officially terminated tpp. [applause] ramy you can hear the clapping from his advisers next to him. Mr. Trump also talked about negotiating oneonone agreements with members of the tpp with 11 members, spanning not just asia but also south america. He said if somebody a country in this case misbehaves, we will send a letter to straighten them out or they are gone. Reaction has been mixed, both from democrats and republicans. On the democratic side, a lot of democrats were actually against the tpp, notably that guy on your screen, senator chuck schumer, the Senate Minority leader. He said tpp was dead long before President Trump took office. We await real action on trade. On the republican side, mr. ,ccain, senator john mccain throwing some fire at donald trump, saying that abandoning the tpp is the wrong decision. He says america has to stay in the asiapacific, but this act opens the door to guess who china. A lot of people have been comparing this with the race between the u. S. And china in terms of influence in asia. Right now, it looks like according to one commentor that the u. S. Has put its own horse in the horse race out to pasture. Rishaad we also got trump meeting with u. S. Business leaders to talk about import taxes and regulations. What do we know . Ramy in terms of import taxes, trump wants to use that as a togel or a stick in order get u. S. Companies do not send their businesses overseas. Take a listen. Company thata wants to fire all of its people in the United States and build some factory someplace else and thinks that product is going to just flow across the border into the United States, that is not going to happen. They are going to have a substantial border tax. Ramy more rhetoric as donald trump, now we are used to hearing from them. You see around the table, ceo you on mosque from tesla, also the dow chemical ceo, johnson and johnson ceo, lockheed martin. A lot of whos who in terms of Business Companies from the u. S. Donald trump saying, stay in the United States. He also promised he would cut regulation to make it easier for them to operate in the u. S. For bigger profits, on the order of about 75 . Not so much more on detail, but these are just the top headlines. Potentially, we will hear more on details throughout the next 100 days. Rishaad thanks very much for that. That is ramy inocencio. Still ahead, when stronger is not better. The new administration talking down the dollar. We will talk about it a bit later. Goldman sachs recommending Commodities Research. The head of Commodities Research joins us live. Rishaad it is looking pretty doll at the moment. About 15 minutes to the trading day in singapore. Lets have a look at what is going on there. Gains in the index the Straits Times index. Nikkei flat in tokyo. We already saw the Straits Times index, moving up by about. 2 . We will get you back to the Goldman Sachs global macro conference taking place. Is where Stephen Engle is with our next guest, getting out for the commodities markets and has quite a positive take. Thats right, we got a look at the Global Commodities outlook and who better to go to then jeff currey, the Global Commodities head at Goldman Sachs. It is the global macro conference. Pricese wholesale backing inflation in china, opec supply cuts, a number of Different Things of various commodities. What is your general outlook . Our positive outlook is not driven by the supply cuts coming out of opec. We would argue that opec is taking advantage of where we are in the Business Cycle and that is the first order driver of higher commodity prices. We have seen a stronger cyclical backdrop against a lack of investment and capacity over the previous three years for energy, five plus for metal. That is grading tightness in the market and upward pressure. What opec did was take advantage of a rebalanced market likely to occur with or without a Production Cut at the end of this year and brought it forward. Stephen what is overall going to be the trump affect . A lot of what i am talking about his economic driven Inflationary Pressures due to stronger cyclical demand forces. If you think about trump and what is likely to happen, almost all of it is policy driven inflation. Costeates friction, raises , and reinforces Inflationary Pressure we are beginning to see a rise from where we are in the cyclical Business Cycle. It reinforces a policy driven Inflationary Pressure on top of economic driven pressures. Stephen lets talk about oil and opec cuts as iraq is coming online with their pledges to cut. Where do you see prices going . Is six months long enough to remove the glut . Lets first talk about compliance. When we look at compliance and our expectation going into this cut, was significant implants out of the gulf states saudi, uae, kuwait, qatar. We are seeing 100 compliance. Region such as libya, iraq, we expected to see increases, and we are seeing that. For 85 n target compliance, which is what our expectations were. In thinking about prices and thinking about prices, the question is, how does the u. S. Respond . We saw an increase at 29, 1 of the largest we have seen recently. This is likely to lead to more supply in the second half of 2017. We have a price target on wti of 5750 during q2, when we expect inventories to decline. Further out, we see prices moderating to 55. Prices cant get too far above 60 because the potential for supply response start to become significant in creating risk in 2018. Our base is 55 in the second half of this year and 55 in the 2018. Stephen so six months is enough . You listen to what opecs rhetoric has been, it is not about price trading ranges but normalization of inventory. One reason is we create backwardation in the forward curve. Going into the Production Cut, we had the opposite. Stock prices were up 44, back end was 55. Usc mps used the back end up 55 for u. S. Capitol. If opec can do that to the curb by lowered inventories, they benefit tremendously. It reinforces their market share strategy. Another reason is lower volatility in oil prices. They are issuing 70 billion of debt this year and the potential for an ipo of ramco. Stephen how do you see the shale rebound in the United States continue to supply uptick . Our base case is that quarter over quarter increase this year is likely to be 500,000 barrels per day. There is room for that due to stronger demand growth and supply declines in some of the higher cost production. To get numbers too much higher it starts to become a problem. 5560, thein the system can accommodate the supply increase out of the u. S. Stephen where does china play in . We saw wholesale prices ticking up. We saw the likes of cnooc increase Capital Expenditures for the first time in several years. But their production targets are fairly low, lower than last year. Where does chinas supply and demand balance bit . F balanceit . Broadly im going to take all out of that we are seeing supply curtailments in steel, aluminum, oil. That is part of the Business Cycle. A lot of that is policy driven. Policy orre if it is economic driven, it still gets us to a safe place. Supplying curtailments is an issue coming out of china. The second issue is the manufacturing pmi was very strong for december, the highest in four and a half years. That indicates we have manufacturing momentum supporting the demand growth. The third issue is that when we , the about chinese credit stimulus we saw during december was substantial. That has a followthrough. It takes time. If you look at the impulse response to a credit stimulus for infrastructure spending, it can take up to a year. We had a lot of credit stimulus last year, likely to be a feature of the market in terms of infrastructure demand growth the first half of this year. The second is property. It takes a while for that to filter through. We expect demand growth in china to follow through the credit stimulus and to be quite robust the first half of this year. What creates a . During the second half of the year and 2018, but at least it reinforces the outlook for commodity prices. Stephen are you looking closely at iron ore . A checkup in 2016, but some are calling for a drop off in prices as higher grades from brazil and argentina come into the system. Last week, record high inventories of ore at the chinese ports. , i think the key, like in oil is the supply response to the capacity curtailments that we saw earlier in 2016. As you point out, brazil, australia adding supply will put downward pressure on prices. Stephen thanks so much. More from the Goldman Sachs global macro conference in hong kong all this morning. Hacking hangover yahoo delays the sale of its operations to verizon. Rishaad yahoo is saying the sale of its core web business has been delayed for next quarter while it discovers from the closure of two massive packs. Shares are gaining afterhours, user activity showing minimal declines. Caroline hyde has this from san francisco. Withine yahoo came out earnings that beat the street, almost 1 billion in terms of revenue and earnings per share almost doubling. What was more interesting to investors was the fact that the deal with verizon had been delayed until the next quarter. Sale of the main web operations to verizon as it continues to recover from the disclosure of massive packs. Massive hacks. They emphasize they are working expeditiously to finish the deal and reported that user activity showed minimal declines after the announcement last month that as many as one billion accounts may have been compromised. Ammunition to help preserve the price tag of 4. 8 billion that verizon agreed to pay back in july. Verizon declined to comment on the new timeframe, saying they were awaiting the completion of yahoos breach investigation before making a decision. Yahoo s shares traded higher, so hopes remain the deal can get done as regulators continue to investigate the two attacks. Caroline hyde, bloomberg news, san francisco. Rishaad we are looking at comments from President Trump and his treasury secretary, raising eyebrows. Rishaad we are back with Bloomberg Markets asia. I am Rishaad Salamat. At the moment, the yuan about 15 minutes ago was the strongest we have had for the currency since november 14. Getting a reaction when it comes to the open, nearly upon us in shanghai and hong kong. Talking of markets and equity markets, what we have is unconvincing as far as wall street. It is getting a few tailwinds. Nikkei is up marginally and the hang seng,. 3 higher. On the currency markets, remarks by the treasury secretary , about the. Mnuchin dollar being perhaps excessively strong and damaging the