The u. S. President demanding tighter controls on immigration. 20,000 for the dow. The global rally inequities. A reflection trade back on at the moment. Dollars weaker. Lets look at what is coming on with singapore and malaysia coming online. Global rally not losing steam in asia. We have the likes of materials and consumer stocks leading that gain. The benchmark trading at the highest since september and bonds and gold study after the overnight selloff. We are seeing fluctuations in the yen, but that is not de nting the nikkei 225. The kospi up over 6 . Taking a look at what is moving on the index. Real quick. We have the likes of kospi. Gains on the we have singapore stocks up. This morning, we did get home price data showing that private property prices fell half percent on a quarterly basis in analystsh quarter, but are seeing prices making after comeback after all threeyear losing streak. Now, taking a look at some equity movers today. We have gasquet heinig in focus. News coming out of that company, it did post an earnings beat in the Fourth Quarter, the stock up 2 . It does not have any plans to build factories in the u. S. As for the outlook, it is seeing the slow chip supply situation giving a boost to margins. General falling the most in six years, the biggest drop in the topix. This Companies Make refrigerators and air conditioning units. We have Line Corporation falling the most since july. A softer job than we saw earlier at the open. Meetne did not expectations when it posted its latest results. Rishaad thank you so much for that. Now lets get to some of the first word News Headlines. Joining us haslinda amin. U. K. Prime minister theresa may says she will publish brexit giving in to demands from lawmakers. Her government will publish a white paper in the commons to allow debate on this tragedy she outlined last week. The pound extended as run after mays announcement, through 1. 26 for the First Time Since december 14. Apple is set to join the partnership on a. I. The rish or Group Includes amazon, facebook, microscopioft and google. Apple declined to comment. It anticipates gaining extra member. Baidu is a noticeable absentee. Profit at the worlds biggest casino operator missed estimates. Fourthquarter profit of 62 cents a share as revenue raised more than 7 . Casinos missed because lucky gamblers cost them 20 million. Qualcomm slipped after hours after warning sales and profits for the current period may miss estimates. The chipmakers Second Quarter revenues could be as low as 5. 5 billion, missing the estimate of 5. 9 billion. It prepares toas defend its most profitable unit from legal challenges around the world. Global news 24 hours a day powered by more than 2600 journalists and analysts and more than 120 countries. Im haslinda amin. This is bloomberg. Rishaad lets go to breaking news out of kia motors and south korea. Well, coming out with operating profit weaker than expected. They are not bullish on the future as well. Growth, well, in major markets. David . David right. So, lets get to the Fourth Quarter numbers. And just bear with me a bit while i try to convert these to the u. S. Dollars. We are looking at fourthquarter profits missing estimates, 532 billion south korean won. They are missing their by about, just a minute, that is about a 34 million miss. If you want to translate the u. S. Dollars, 532 billion is 460 u. S billion. Net income 320 billion won. Doulbe ble that amount was estimated. U. S. Tlyly about 270 million the Fourth Quarter sales just under 14 trillion south korean won. At the Exchange Rate we are looking at 11 billion. A miss for kia motors. Yesterdayalso reported profits would trail 33 . In their case, we have to consider we have two big markets for hundai. The u. S. Is a market where you need to spend a lot of money marketing, incentives and warranties. Volumes were up in the u. S. , but if you can imagine the strong u. S. Dollar deflating those costs there. Buthina, sales picked up the Company Expects that this will hit demand here. Hyundai on big drop. You have partial strikes which turned into a full strike in september. Rishaad ok. Also, justing is looking at what they were saying about the futures. It could be the small car engine actually, perhaps getting taken away. Tell me about the other companies you are keeping tabs on as well. David yeah. We are in the thick of earnings season in south korea. Im looking at two companies, both suppliers of apple. One of the better performing stocks and south korea. Big pop in profits. Fourthquarter profit 1. 2 trillion won. On analyst saying that everything has been extremely, extremely good for the company. Level of inventory, Exchange Rate, just about everything you can think of and demand for its semiconductors. We saw that reflected in the earnings this week alone. You understand why analysts are bullish on the stock. At these levels at 53,000 won a share, we are looking at a further 10 pop in stock price. And very quickly here, lg display excluded from the list of suppliers for the apple iphone. Rishaad thanks, david. Lets get to donald trump, pushing ahead with his controversial pledge to build a wall. He signed an executive order to direct federal funds to the project and to lets get to the wall first. Pastth the wall, over the several months, a lot of people are rolling her eyes thinking this was not going to happen even if trump became president are today he proved them all false. And signed an executive order at the department of follmann security. Of of Homeland Security, putting into effect the first ups for the southern border wall with mexico. Not only that, it also focuses on employees in terms of 5000 new employees for border agencts and 10,000 new employees for immigration and Customs Enforcement. Thats basically used for deportation. Lets take a listen to what mr. Trump had to say. President trump a nation without borders is not a nation. Beginning today, the United States of america gets back control of its borders, gets back its borders. Ramy earlier today, mr. Trump told abc in an interview about the timeline for this as well as how it would be paid. In terms of that timeline, he was quoted to have set within months, is what hes saying. He is also said that mexico, he reiterated that mexico will reimburse the u. S. For the cost. Etoican president pena ni has said that mexico will not pay for the wall. One interesting thing in terms of talk here, with u. S. Companies dealing with building materials. Look at that. Egagle material and Martin Marietta dealing in cement. Rising to record highs off the news of a falcon material which is a sand and gravel supplier sides highest since november. Off this interesting news, there are still some gainers. Well, you know, we have another document signed, also, an executive order that is a link to stopping refugees from entering the u. S. Which countries have been preselected for this . Ramy that has to do with the countries the United States deems as contribute into terror or suspected terrorist activities. Namely that would include countries in the middle east and north africa. Syria, for example, yemen, libya, somalia, iraq, as well as iran. Mr. Trump pushing through on a Campaign Promise you for what he called extreme vetting of refugees coming from those countries. He is going to want to do a 30 day hold for people from those countries as well as a six month freeze for all admissions for refugees. If that freeze does get unfo rozen, hes going to take down the number of refugees the u. S. Currently allows in to the country, that numbered he stands at 110,000. He is going to take that down to 50,000. A National Security definitely in focus in terms of the physical Border Protection as well as with the rules with potential refugees coming in. You. Ad thank qantas ringing in the Lunar New Year with a resumption of flights to and from beijing. The to the executive alan joyce, well speak with him. President uest says trump is a shortterm phenomenon. The good stuff comes after his first 100 days. Rishaad breaking news out of china. The pboc has instructed banks to curb new loans. Fame and told not to increase the amount of mortgage lending or the rate of outstanding mortgages relative to the Fourth Quarter. We did try and get in touch with the pboc, but they did not actually respond to this. Lets get some reaction now. James from bank of singapore. Tell me, what is your reaction first of all to this . Theyre getting worried about the Housing Market is the first takeaway. I think one of the risks facing china this year is the Housing Market. Its slowing down, a lot of leverage is tell you in the property market. Therefore, i think this is part of the measures to try to cool the market in china in a sustainable way. And i think the economy of china is currently by stop and go. If inflation gets out of hand, the government will come in to curb it. If it is too slow, they will enact fiscal measures, monetary easing. I think 2017 will be a year characterized by stop and go. Rishaad stop and go. Well, that, of course, is going to be contingent on what happens with the u. S. Now, of course, we have got the inauguration behind us, but a lot of the executive orders being signed. There is a lot of promise out there which, of course has been the dowg this rise of over 20,000. What are you making a little . At hisif you look inauguration speech, america first, american jobs are products. What this means is more protectionism, less trade. If you want to see what it is going to do in the first 100 day it would be about implementation, what he cans get from congress and how complex the issues are. It seems like empty trade and things he will frontload in the first hundred days. Whether it is tax reform, deregulation, those will be after the 100 days or further out. In that sense, you can expect more uncertainty with this 100 days. If you combine that with markets at all time highs, one should be a bi tmore cautious. We do not want to chase equity markets. Weak. Gs are fairly i think there is a risk of market pullback given his lines is towards antitrade and antiimmigration. Bank with arivate lot of private clients. What is their main concern . Living in uncertainty. More so than ever. Tops i think there are three concerns, number one is donald trump, what he will do. That is the number one risk. Number two risk is action what is happening in europe. We have a whole slew of European Elections that we have to watch out for. Brexit one of them. And of course we have the french elections and the german elections towards the end of the. The third risk is china, that is one of the risks he bore concern about. It is not just about the currency but the equity market slowing down. So, i think the three risks, number one, trump number two, European Election risk and number three is china. Rishaad that brings us nicely that translates with how you answer those questions, and what does that result in strategy . James i think in terms of investment strategy, our messages do not chase this equity market rally. What we want to play is a barbell strategy. What i mean is invest in the cyclicals. In the cyclicals, we like the Consumer Discretionary and technology. We think these companies can do well in an environment of rising prices and economic improvements. At the same time, a lot of these companies can benefit from regulatory changes. In terms of defensive, we like health care. Look has been valuations attractive there. Longterm prospects are very strong and health care. And they have Pricing Power in this environment of rising price. The bigger implication for us is that we want to reposition our bond portfolios for re flation. Use the pullback in 10year yield to reduce our duration in portfolios. We want to gain exposure. Because these bonds allow our bonds to reset on higher rates. We want exposure to high yields in emerging markets to get that extra, carry, extra yield to gi ve extra returns for 2017. Rishaad right. Thank you. Coming up, a warning from petrochina where profit is set to plunge. We will have that and more. Just mins away from the start of trading in hong kong and shanghai. Looking at this trade, back on lifting all boats it things at the moment. Even the hang seng index reacinting with a half a percent gain. All of that against this backdrop of a sizable profit warnings from two of chinas largest state owned enterprises. Petrochina out with a forecast of full year net income that may have seen a drive down as much as 80 . Thesteves here with a look at oil side. Cheap energy is what they are blaming. Steve it should not be too much of a supply, given the state giants in ht the oil sector have suffered. The petrochina, the largest listed oil and gas producer in china, says that full year 2016 income fell between 70 and 80 . Those numbers we are not expected to get until the end of march. On pace for a record low full year profit, attribute to what prechter china petrochina called a drastically Lower International oil price. Buckscrude averaged 45 in 2016. 54 in 2015. Giving you the numbers, 2015 ofit was 35. 5 billion yuan, 5. 16 billion u. S. 2016 profit drops by 70 may have fallen as far as 7. 1 billion yuan. Billion1om 5. 6 to 1. U. S. 2017 is looking better. Most analysts are expecting oil prices to go up with. Andaad every day i come in look at what is going on with brent crude. About 1. 50 or thereabouts. Stephen you can see petrochina shares as they correlate to crude they mirror each other. Rishaad people trade off that. Tell me about there we go, there is the fellow. S stephen crude down. Rishaad moving to an entirely different industry group. Stephen no offense to china rishaad or the tours of the world who are watching us. Dont forget the actuaries. Stsomebody once told me that actuaries are people who find accounting to exciting. Life,hne this is china warning 2016 profit may have fallen as much as 40 to 50 . Theirthe oil giants, stock prices correlate to the oil prices, these insurers and china investing a lot in the stock market. These are h shares, but they look into the investment in the a share market. We can see the comparison. See over the last five years the gyrations of the stock market in shanghai. Theyre very similar to the china life shares. 2015. Eally soared, about and have been flat since then because again, there was a 60 fall in reported nine month net income in the first nine months of last year. 33 in the Fourth Quarter. So, that really correlated with chinas index. Which fell and then was up 3. 3 . Rishaad good stuff, steve. They know its with the best of intentions. Just a look at markets. We had actually shanghai. Its turned negative now. Was pretty much flat. 5, getting a boost of what happened on wall street. Wel talk about thel yen weakening against its american counterpart. Resuming its sydney beijing flights. Will be joined by alan joyce. Hell tell me what is expected from that route. And we have the market open in hong kong and over in shanghai. Withad you are back Bloomberg Markets as we take a look at the ope in hong kong and in shanghai. Reeling fromere what happened on wall street. A big boost when it came to european trading as well. Noon yesterday, we were going to have a good day given where futures were at that point. We also have against all this a bit of dollar strength, sorry, dollar weakness. Sterling 1. 2641. We also got the euro moving to 1. 07. Thats what we got at the moment. When it comes to the equity session, 1. 2 for the nikkei powered by the strong tailwinds coming out of the street of dreams. Lets get over to the hong kong lets see how it all looks here. Stocks we do have asian broadly higher and trading at the highest september. I want to keep us with going on in the shanghai state. We do have materials and oil and gas players on the decline. We have an update from the pboc, saying it is controlling landings in the First Quarter after january. Inare seeing a movement property, cement, and steel players comes we will keep an eye on that for the course of the day through the shanghai, is. He only portion of the red i did push back of the greek freedom we did get the yuan straley stronger. 5 . Share at the cost are expending their games extending their games there. It is not a heavy gain heavy day in asia. Some of the movers we are watching today. That has not been set up quite right. Taking a look at what is going up on those indices. We have chipmakers like samsung leading throughout, and we are coscoing cost go we leading. And we also had can voters motors reporting a loss in the Fourth Quarter, and it does anticipate that uncertainty will continue and slow growth. The markets are falling. Kia motors we are seeing patches of green in southeast asia. Lets find out morris what is going on there. But get over to singapore. They have the first world News Headlines. Sources tell bloomberg the pboc has ordered chinas banks to strictly control lending in the First Quarter. After new loans surged in january. Told tohave not been increase the growth of outstanding mortgages relative to the Fourth Quarter. That they may punish noncompliant letters by making them pay more in insurance. China has extended investigation into detaining Crown Resources crown resort employees. Arrested in were october. Boeing climbed to a record as the 787 dreamliner emerged from a decade of losses. The plane making is maker is forecasting higher revenue on the back of their jets. That sets off addictions of declining sales. Boeing says it has four years of dreamliner orders invested. It is one of the dows top performers. Officials in the philippines againstn going up communist rebels. Blago sheet ors the talks, but claimed rebel negotiators claimed to the talks, but said the ar